Archive for the ‘Buying Tips’ Category
January 5th, 2009 by Charissa Pemper
Boston.com had a great article about buying a home in 2009. In case you have been out of the country in 2008, it was one of the worst years in real estate in recent memory. The government had to step in to take control over some lenders and financially bail out others. As housing values dropped, the new housing market screeched to a halt. Thus began the cycle of people losing their jobs which in turn led to a record number of foreclosures in the country. Boston was not spared in this economic spiral that hit virtually every city and town in America by the end of 2008.
If you happen to be one of the lucky people who still has a job, then 2009 may be the year you get a new home. With new stricter loaning requirements, you need to start working on your credit score now if you want to purchase a home this year. This process begins with taking advantage of the federal law requiring the “big three” credit reporting companies to give everyone a free copy of their credit report.
Once you know what is being reported on your credit report, you can work on cleaning up any inconsistencies between the reports. In the meantime, you should work on decreasing your credit card debt. Most lending companies have stopped the practice of giving loans to people who are already maxed out, even if they have been making their payments on time.
People who are serious about wanting to take advantage of the low house prices should get pre-approved for a loan. The pre-approval not only shows a home seller that you are serious, but it also lets you know just how much you can afford for housing payments. With this knowledge, you can look at homes that are realistic for your budget and not run the risk of falling in love with a house that you can’t afford.
Potential home buyers, click here to read a full article from Boston.com with more tips:
Charissa Pemper
Lic. MA Real Estate Broker, REALTOR®
Charissa@HomesInBoston.com
November 19th, 2008 by Charissa Pemper
Buying in the Fall/Winter can really have some advantages. Many properties that were over priced in the Spring market have been sitting for months with no action, and their prices are dropping. In addition the Fed just dropped interest rates AGAIN to entice people to buy, which means that there are more affordable options in Boston than there have been in many years.
What to look for when buying a home in Boston during the “off” season:
Days on Market - Obviously the longer a property has been on the market, the greater the chance that the owners are more eager to sell. I can also research and determine if the initial listing price has been dropped in that time period.
Heating Systems - Since we live in a moderately cold climate, when buying a house in the summer, people don’t always pay as much attention to heating systems as they should (though a good agent and home inspector will always watch out for this).
Insulation - When walking through the house, do you feel drafts? Are there newer double-hung windows? Is there insulation in the attic? Any of which could be potential negotiating points.
Right now the average rate for a 30yr fixed rate mortgage is 6.25% with no points, and 5.5% with 2 points. This means that with lower prices you really might be able to find your dream home without breaking the bank.
Ready to make your move, or just curious about the market, check out the Boston MLS Property Search that I offer.
Charissa Pemper
Lic. MA Real Estate Broker, REALTOR®
Charissa@HomesInBoston.com
November 19th, 2008 by Charissa Pemper
I had heard about a disturbing trend and only recently experienced it. Imagine that you have loan approval and commitment in hand and the night before you are scheduled to close, the bank pulls the loan…
Yeah… WOW!
Some of the big National Banks, this one was Wells Fargo, have been pulling this lately as they face their internal problems. I don’t know if this is because they’ve been so lax in writing bad loans lately, but regardless, what a blow to the buyer.
Once the loan was denied, the bank said they’d reconsider with additional documentation that the buyer had available, then abruptly stopped returning any phone calls from the buyers, attorneys, and me. What made this even worse was the fact that the loan originator’s office wasn’t local so we couldn’t demand answers nor a response of any kind by going to the lender’s office.
This is why I always recommend LOCAL lenders!
You get more personalized service, and more importantly, any glitches that come up are usually handled with much more consideration for the buyer. Plus, most lenders don’t want me knocking on their office door if they stop returning phone calls.
Charissa Pemper
Lic. MA Real Estate Broker, REALTOR®
Charissa@HomesInBoston.com
October 13th, 2008 by Charissa Pemper
One of the biggest topics of discussion in the local market is the record number of foreclosures and shortsales going on in the Boston area.
Because of the mortgage fallout, there are a ridiculous number of foreclosed properties on the market. They are often hard to distinguish from regular listings. Sometimes they are tagged as bank-owned, but most often they have no distinguishing notices to the public. Foreclosed properties can offer an opportunity to buy a property at a discount IF the place needs work. In this sense, they really aren’t all that different from a traditional sale on a fixer-upper.
But, because of the drop in property values recently, there aren’t as many "deals" out there with foreclosed homes as you might hope.
A shortsale, on the other hand, occurs when the mortgage on the property is higher than the value. You might have a $375,000 loan on a house, the market value of which is now only $350,000. A shortsale is when the mortgage holder agrees to forgive the $25,000 difference in order to sell the house.
Shortsales can be very difficult to negotiate since every dollar lower you try to go represents a dollar lost to the mortgage holder. An added complication here is that the mortgage holder must approve of EVERY step of the transaction. Even worse – they have the right to change their mind all the way up until the time of closing, meaning you could have your inspections, get your financing all set, be ready to close and suddenly get a notice saying that the seller’s lender has decided not to allow the sale.
I’ve compiled some frequently asked questions about the subject to handle the most common questions:
Charissa Pemper
Lic. MA Real Estate Broker, REALTOR®
Charissa@HomesInBoston.com
