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Thinking about Buying a Short Sale?

by The Pilgrim Team

So you want to buy a house and have noticed that the best deals in Useful Information about York PA are typically short sales. Buy you've talked to people and they have told you not to buy one because they have heard stories about how someone they new wanted to buy a Short Sale and they waited for months and they never did buy it.

There are a few reasons for short sale not to be approved by the Lenders.

1. The Realtor who has the listing has NO knowledge of the process and shouldn't have taken it to begin with. Not only did the house did not sell to the buyer but they also may have jeopardized the homeowners chance to keep the house from Foreclosure.

2. The Realtor listed the house at a very low price to get an offer from a buyer, knowing full well the offer would most likely be countered back at a much higher price which the buyer will not accept or can't accept because they cannot be approved by their lender to get a Home Financing for the property at the higher price. Now the Realtor who listed the property thinks they have an approved price (but they really don't) and re-lists the house at that price and they change the price and now claims it is approved. Wrong! Once another offer comes in the offer must be approved again even if it is the "approved" asking price.

3. The Realtor does not know what the Lenders want during the negotiating process and cannot present a complete short sale package. What happens is the negotiator may totally reject the offer.

4. The Realtor may continue to take back up offers and forward them to the bank. Just in case the 1st offer falls through. This confuses the Lenders negotiator and they stop processing the offer.

5. The offer may contain many contingencies that the Lender does not want to see. There should not be any contingencies to make it a strong offer.

6. Believe it or not some real estate agents will take a listing as a short sale and not even know whether it can even be approved as a short sale based on necessary criteria. So what happens when an offer is submitted to the Lender and it will not even be considered because the seller has the ability to make the payments and nothing has changed that would keep that seller from not making that Home Financing payments. The Seller just wants to sell because the house has lost equity, this is not a reason for the short sale to be approved.

Bottom line make sure if you want to buy a short sale use an experienced agent who has successfully negotiated sold short sales and helped buyers buy short sales. Pilgrim Team is specially trained to help both Sellers and Buyers achieve their home goals. Call Jerry Pilgrim at Professional Realty Associates at 717-757-5955. You will be glad you did!

 

10 Things You Must Do Before Buying a Home

by Professional Realty Associates

10 Things You Must Do Before Buying a Home

by Brandon Cornett

Buying a home is often the largest personal finance transaction a person makes in his or her life. So it's critical that you make the right preparations and do the proper research. Regardless of unique situations and special circumstances, there are ten things you must do before buying a home.

1. Study the Tips process.
This will allow you to make better decisions and act confidently. Tips lingo is a big part of this, so be sure to read through a few home-buying glossaries before you get into the thick of things.

2. Obtain your credit report.
Get a copy of your credit report and review it for errors. You can get copies from all three credit bureaus at once by visiting www.AnnualCreditReport.com. Home Financing lenders will review your credit with a fine-toothed comb, so you should do the same ... before they review it.

3. Fix credit errors quickly.
If you find an error on your credit report, go to the company's website where the report came from (TransUnion, Equifax or Experian) to contest it. It can take time to clean up an erroneous credit report, so get started as soon as you spot the error.

4. Check your debt-to-income ratio.                                                                                        Home Financing lenders like to see a borrower's debt at (or below) 20% of net monthly income. If your debt exceeds 20% of your net monthly income, try to pay it down for applying for a mortgage loan. You'll have an easier qualification process and will likely qualify for a better rate.

5. Determine your budget.                                                                                                                                     Use an online Home Financing calculator to get an idea of how much you can afford to pay each month, and what that equates to in terms of a home price. This will give you a budget to work from, which will help you weed out the Homes for sale in york pa that are beyond your comfort zone.

6. Start saving your cash.
This is one of the best things you can do before starting the Tips process, for a couple of reasons. First of all, Home Financing lenders like to see that you have some cash reserves on hand. Secondly, you'll need cash reserves for any unexpected fees or costs that might arise (which is common).

7. Get pre-approved for a loan.
During pre-approval, a Home Financing lender will review your credit, finances, debt, etc. and conditionally qualify you for a certain amount of mortgage. Sellers will take you more seriously if you have a pre-approval letter, and the process also helps identify any problems with your credit or other qualifying factors.

8. Avoid new lines of credit.
Try to keep your financial situation as "stable" and favorable as possible. It's a good idea to pay down some debt (see item #4 above) and to save up some cash. But the worst thing you can do is take out a new loan / line of credit. At best, this could make the qualification process take longer. At worst, it could tip the debt scales into the "greater than 20%" zone, which will make it harder to get a loan.

9. Validate the asking price.
It's called an "asking price" for a good reason. No asking price is set in stone, and everything in real estate negotiable. So don't accept an asking price as being reasonable until you validate it through careful research. Compare the home / price to recent sales in the area. Your real estate agent can provide a comparative market analysis (CMA) to help you with this step.

10. Get a home inspection.                                                                                                                                      It is never -- I repeat, never -- wise to skip the home inspection. A house is a sizable Real Estate Investment, and the last thing you want is to find a bunch of things wrong with it after you've taken ownership. Home inspections are very affordable, and you cannot put a price on the peace of mind you'll have as a result of your inspection.

* Copyright 2008, Brandon Cornett. You may republish this article if you retain the citation notes and hyperlink below.

Citation Note: This article was created by Brandon Cornett, publisher of the Tips Institute  network of real estate websites. You can learn more or contact the author by visiting his Home Financing refinance blog at http://www.mortgage-refinance-advice.com/blog/

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Photo of The Pilgrim Team Real Estate
The Pilgrim Team
Professional Realty Associates
2002 S Queen St, Suite 3
York PA 17403
Office: 717-757-5955
717-755-2683
Fax: 717-757-2887