First-Time Homebuyers Face the Opportunity of a Lifetime

 Prudential (DBA)

Part 1

Knowledge is power – Nine out of every 10 home searches today begin on the Internet. With just a few mouse clicks, you can peruse neighborhoods, search countless online listings and take virtual tours packed with detailed photographs. The process gives you working knowledge of home availability and pricing in your local markets so by the time you sit down with your real estate sales professional you’re well on your way.

Also visit informative websites such as www.ginniemae.gov, www.realtor.com and prudential.com, and check the local newspaper for homebuyer seminars.

First-Time Homebuyers Face the Opportunity of a Lifetime

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Prudential (DBA)

 Part 1

Today’s first-time homebuyers are presented with the opportunity of a lifetime. Mortgage rates in early December stood near lows last seen during the Truman administration while home prices were well off their peaks of previous years. The combination made housing affordability, as measured by the National Association of REALTORS^®, the highest since NAR^® launched its Affordability Index in 1973.

Housing inventory is also abundant in many markets, enabling first-timers to secure good homes and pave the way to their financial futures. Indeed, homes and their long-term virtues of shelter, wealth-building and personal and civic pride are available at bargain-basement prices that won’t, or can’t, last.

Naturally, first-timers have many questions about home buying, starting with costs. With research and the services of a licensed real estate professional, these consumers can demystify the process and place themselves on the fast track to homeownership.

Prequalification vs Preapproval with Home Loans

So… Your Realtor Says You Need to Get Pre-Approval for a Home Loan

     And your reply is, “but I am pre-qualified“.  There is a big difference between the pre-qualified and pre-approval.  Pre-qualified can break your heart.  Pre-qualified just means that the lender ”can possibly” allow you to acquire a loan.  There are no gurantees given and when you leave there is no agreement made.  They have run some figures to see approximately how much they may agree to loan you for a home. 

     You call a realtor, go see homes, fall in love with one, go to the lender and uh-oh, not loan.  After ALL the information is taken and ran you find out you are not qualified or not qualified for the amount you need for the home you fell in love with.

    Yes, if you are just considering getting a home and want to know if there is a posibility…then ask a lender if it is a possibility.  But, if you are serious and want that new home, then you need pre-approval.

PRE-APPROVAL

     As a real estate agent I advise my clients to get pre-approved before they start searching for a home.  This is an essential first step to buying a home.  There are more advantages to having pre-approval than you would think.  When a buyer has that pre-approval letter from the bank it means they can start that house hunt.  The following are benefits of having a pre-approval letter from your lender:

• Search in Your Price Range: Thereby Saving Time:  If I am sending my clients automatic e-mail listings of homes I can target the right price range.  This allows them to fall in love with a home they can afford and not s home out of their price range.  I hate it when that happens, I do not like to disappoint anyone.
• Looking at the Right Value Range:  After the price range is known and we pass that point, then I can search for the particulars a client desires.  They have more time to look not only for what they can spend but location, big or small yard, style of the home, and then to the nitty-gritties.  You know, one or two closets for master bedroom, separate shower/tub, garage no garage, etc.
• Pre-approval Means Bargaining and Negotiating Power-
• Avoid Disillusionment by Having ALL the Facts:  My clients avoid disillusionment and gain confidence when they are pre-approved.   NO-one can say no you do not qualify to buy the home.  They can inform their friends and relatives that they will be closing on a home and know it will happen. 
• Faster Closing Time:  Once the offer is made and since pre-approval has already taken place an appraisal can be ordered immediately upon acceptance of an offer.  Which will possibly speed up closing from 30 days to 2-3 weeks.

So, due to mortgage approval being the most time-consuming process when buying a home, getting a  pre-approval letter from the start will save a lot of time, aggravation, worry, sleepless nights, and disappointment.

 

 

Home Inspections

Sellers:

Getting ready to sell your home.  There are things you can do to help the home inspection go smoother.  It will also make the home look better when showing to prospective buyers.

• Air Conditioner and heating - Change the filters, use vinegar and water to clean off dirt and mold from the outside of the housing, clean the return, bottom line –  have it surviced.  Have the ducts taped or replaced if necessary.  When someone is buying a house this is one of the top selling points of a home.
• Sinks - Clean out underneath sinks and fix any leaks.  If the faucets leak around the top, go ahead and replace it.
• Wall sockets  – make sure each plug-in works.  Check the GFI’s in wet areas.
• Water   check for leaks and sediment around joints.  Clean the outside of the unit.

Buyers:

• Have your realtor give you at least three different inspectors.
• If the property has extras- such as detached garages, storage sheds, or work shop –  ask for the extra cost of inspecting these
• If property has more than one AC unit some inspectors charge extra, ask
• If property has irrigation system, well water pump will the inspector inspect it.
• Inspectors “might” can give generalized idea on the expected life of a roof, heating/air units.  But they will not be liable if the items do not last that long.  In truth, not something they should give out because no one really knows how long something will last.  Without knowing the history of maintenance…impossible.
• Inspectors point out all the things that may need to be attended to.  If it is an older home, then yes there may be a lot there.  Some of the items are simple fixes and some are not.  When you read the report you need to ask yourself- “Is this something I am willing to deal with”,  ” is this something to be nick-picky over, and risk losing the deal”, or “is this something big that needs to be dealt with in order to buy”.
• If it is a fore-closure or short-sale, then most of these are not even able to have things repaired or fixed and sold as-is.

How To Buy A Home- Part 2

Down Payment

      The down payment amount varies depending on the value of the home you choose and your mortgage lender.  First-time homebuyers may also quality for down-payment assistance programs and grants available through their states and municipalities.  Contact your state housing finance authority, county housing and community development office for an application. 

      If you have questions concerning financing or need recommendations for lenders, you can email me at info@mobilebaldwinhomes.com

www.MobileBaldwinHomes.com

 www.MarieDickinson.com

 

 

Prudential Value Range Marketing-PVRM- Benefits Buyers and Sellers

Prudential Value Range Marketing-PVRM- Benefits Buyers and Sellers

Your agent should do a comparable market analysis with a one mile radius, if possible.  Keep your asking price within 4-5 percent of the current market value.  If your agent says anything higher…rethink the agent.

As much as you’d like to believe it, your house probably isn’t worth 10-15 percent more than your neighbors.  Again, if your real estate agent suggests that is more valuable and suggests a higher asking price have them explain why.

You may have added a lot to your home over the years.  In this buyers market with so many homes for sale the additional perks will not make it more saleable BUT more want-able.

One of the things a seller doesn’t want is a hint of desperation.  If you  over price in the beginning and a price change comes later, this desperation sign will appear “PRICE REDUCED.”   Then possible buyers will offer lower bids than the new low price.

Prudential offers what is called a PVRM.    Properties marketed using PVRM can appear in many more “range of affordability” searches, exposing a seller’s property to more prospective buyers which generates stronger activity, helps initiate offers and encourages the buyer and seller to begin the process of negotiating the sales price. Compared to using the traditional fixed price, which can easily be seen as overpriced and slow down the selling process.

How Does PVRM Benefit Sellers?

• When selling your property, consider these key benefits:
• Increased Marketing Exposure for Your Property
• Eliminates the Need for Price Reductions
• Accelerates the Sales Process by Encouraging More Offers
• Optimizes Final Sales Price Allowing True Market Forces to Determine Maximum Price
• Attracts more qualified buyers and creates more competition for your house.

How Does PVRM Benefit Buyers?

When shopping for a new home, consider these key benefits:

• Buyers have a price range to work within
• Allows the buyer to entertain possible homes that they would not have with a set price
• Allows them to see a negotiable realistic range of pricing acceptable to the seller
• Gives an easier entrance into negotiations, thus less stress.

In the end, it is up to you the seller on which pricing to use.

Feel free to visit my web-site www.MobileBaldwinHomes.com to get to know me a little more and find out how I can help you sell your home and/or find you a home in Mobile or Baldwin Counties Alabama.  Contact information for Marie Dickinson is located there as well.

Market analysis- http://www.mariedickinson.com/

buyers market – http://www.investorwords.com/641/buyers_market.html

PVRM-

Mobile AL- http://www.cityofmobile.org/

Baldwin- http://www.co.baldwin.al.us/PageView.asp?PageType=R&edit_id=1

Fine Homes Collection Magazine

Our Fine Homes International Collection presents the finest luxury homes for sale in Mobile County and Baldwin County Alabama.

So, How DOES Prudential Value Range Marketing Work?

Traditionally, property owners desiring to sell their property have been limited to a fixed price when advertising their property for sale. By using the traditional fixed price method you run the risk of overpricing which can slow the process of selling your property and limit the number of buyers exposed to your property. Traditional pricing also sets an artificial pricing ceiling.

Steps to Buying Foreclosures

 

Steps to Buying Foreclosures
Step 1: Get Financing- full pre-approval up front. Tell your lender that you want to purchase a foreclosure. You need them to run your credit through their under-writers, if possible, to ensure no glitches. Sellers only want to work with serious, ready to go, buyers.
• Determine how much you can afford. How much you can afford depends on the amount of cash you have on hand and the amount a lender is willing to loan you based on your credit rating, income and other factors.
• There are two rules you can use: 1. You can afford a home that is up to 2.5 times your annual gross income
2. Your monthly principal and interest payments should equal one-fourth of your gross pay, or one-third of your take-home pay
• Not all lenders finance foreclosure properties, so you may have to shop around for a lender who will.
• Ensure that your lender understands the foreclosure process, and can help, along with your realtor, guide you through the process, such as ensuring that a property is FHA-compliant. (Although during these times it is hard to imagine one that does not have the knowledge.)

Foreclosure in Mobile Alabama go to:  www.mariedickinson.com/foreclosures-mobile-alabama.aspx

Step 1: How to Buy a Home

What kind of home can I afford?
In general you can afford a home worth about three times your annual household income. If your combined income is $75,000, you could afford a $225,000 house.
Money you’ll need up front
• 3 to 20% of the purchase price for a down payment. The actual amount depends on what kind of loan you get and how good your credit is. Your bank might offer a zero-down loan, but if you can afford to make a down payment you should do so, because you’ll get the lower interest rate and because your monthly payments will be lower.
• 1 to 8 % of the purchase price for closing costs. You might not have to pay it up front. The bank might be willing to add it to your mortgage. The actual amount of closing costs depends on how good a deal your lender is willing to give you, and the price of the house. The more expensive the home, the less the closing costs are as a percentage of the total price. Today, with so many houses on the market, many sellers are willing to pay the closing cost if you pay the asking price or close to it.
• $250 to $800 in Miscellaneous Costs. These are things like the application fee for the loan, the fee for the bank to run your credit report, professional inspection of the home, and an appraisal (if you can’t get the appraisal added to the closing costs).
• Putting these three things together, on a $175,000 house you’ll need
o $4500 to $30,000 for the down payment (unless you get a 0% down loan)
o $0 to $12,000 for the closing costs
o $250 to $800 for miscellaneous costs
Total: $4750 to $42,800. Yes, that’s quite a difference. You’ll learn more about estimating the costs for your own situation as you go through this guide.

Baldwin County Alabama Job Fair on April 1st Makes Relocation to Gulf Coast Easier

Baldwin County Alabama Job Fair is being held on April 1, 2011 from 9 a.m. – 2 p.m., in Robertsdale and the Baldwin County Coliseum.  Once you land that job and if you have children in school or higher education check out these sites:  Schools Baldwin County-  www.bcbe.org, Schools Mobile County- www.mcpss.com, Higher Education Opportunities-  University of South Alabama, Spring Hill College, Bishop State Community College, University of Mobile.

The Alabama Gulf Coast is one of the best areas to live in the U.S., especially if you love tropical like weather, summer sports, and dislike COLD weather.  And there are so many things to do year round.  The Gulf Coast is a magical and enchanting place to live.  It offers a city life in Mobile, or a small town life in Baldwin County, both with the ability to have a vacation for a day just a short drive away!

To get a glimpse of the opportunities of the Gulf Coast take a look at these sites:  www.GulfShores.com, http://mobile.alabama.com/

Many people live in Baldwin County and drive to Mobile to work, and vice-versa.

So, come on down to the Gulf Coast.  Contact Marie Dickinson your local and welcoming Mobile Baldwin Homes Realtor today and get started finding your dream home.

www.MobileBaldwinHomes.com

Fairhope Pier

Owning vs. Renting

Continuing on with the Renting vs Buying.

Keeping in mind that buying a home is a major investment.

• A point to bring up during tax season is the advantage of deducting the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes.  This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage.
• You can also deduct the property taxes you pay as a homeowner.
• The value of your home may go up over the years.

And repeating, the home is all yours to add to, paint any color, plant any foliage you want to, and not worry about the landlord.