Tag: Market

Buying A House In A Sellers Market

In different parts of the country right now it’s definitely a sellers market. Inventory of homes for sale is low, interest rates are low, and there are a lot of buyers out there looking to get into a home. The recent uptick in mortgage rates have even more buyers pulling the trigger. So how are you going to find your dream home when you are competing against so many other buyers?

When you find a home you like be sure to act on it quickly! Have your agent give you a tour of the house, don’t wait for an open house to happen! A lot of homes are getting offers within the first couple weeks of being on the market, so it’s important to arrange a showing quickly if it’s a home you are interested in. Wait too long and the home could be under contract.

Once you find the home you like it’s time to make an offer. Your agent should be doing a comparative market analysis of recently sold homes in the area that are similar sizes. This will help you determine if the list price is over or under what it will most likely be appraised at. Once you come up with a number you feel comfortable with, submit it to the seller and hope for the best!

If you find yourself in a multiple offer situation you might want to take a different approach. If it’s a house you really love consider doing an escalation clause. Instead of listing a price of what you’d like to buy at, tell the seller you are willing to pay $2,000 to $3,000 more than the highest bidder and want right of last refusal.

A seller is not going to object to getting more money for their home, and if the highest offer is outrageous you can always walk away from the home knowing it’s not worth it. But this way you’ll have peace of mind knowing that you didn’t overpay by thousands of dollars.

If the seller accepts your offer the house isn’t yours quite yet. It’s key that you get a home inspector to look over the home and try to find any damages that you might not be aware of. This includes things like a cracked foundation, mold, leaks in the roof, and other major repairs.

You can use your inspection as a way to gain leverage in negotiations, asking for items to be repaired or for credits at closing to make up for the repairs that need to be done. If the seller refuses to renegotiate this is one of the several points in the buying process in which you can walk away from the home with a valid reason.

The purchase of your home will also be contingent on the appraisal and your mortgage being approved. Using the right mortgage broker (like yours truly) will insure that the mortgage process won’t be long and frustrating.

Once you are clear to close by the bank the house can finally be yours! But until then be prepared for the emotional roller coaster that is buying a home.

Why Using a Mortgage Broker Can Save You Money

Mtg Broker

Being able to get the house you want should make you very happy. But what if, after you move in, you find out that you may have been able to get a much better financial deal than what you got? Would you still be as happy? It is quite possible to get the best deal in the first place by using a mortgage broker.

Here is how a mortgage broker can save you some money.

It needs to be stated from the start that a mortgage broker will not always be able to get you the best deal, but could, probably, in most cases. Too many people are still accepting the first offer they are given for their mortgage. Getting that good deal, however, takes more than just comparing loans.

A bank lender will only be able to offer mortgage products that their own bank creates. These products, of differing values, are limited.

Sometimes a lending agent may not want to compare the different products his or her bank offers in order to find an exact match for your needs. At other times, a bank agent will work very hard for you.

A mortgage broker, however, only gets paid when a sale is made – in other words – when a mortgage is signed. This means that it is in their best interests to get for you a highly competitive deal.

Mortgage brokers deal with many different lending companies on a regular basis and know what each of them have been willing to do – in the very recent past. When you contact a mortgage broker, there often will not be any fees. They will then get your information from you and send it to  companies they think will give you a very competitive offer.

Another benefit comes from the way that mortgage brokers perform their services. A banker will give you a more institutionalized service, and your interaction with him or her will be more formal.

A mortgage broker, however, will be glad to take more personal time with you, making you feel more welcome and will probably spend more time with you and for you. In fact, he or she may even come to your house.

Mortgage brokers have access to mortgages at a slightly lower price than a banker might provide. This is because they deal with wholesale prices rather than the retail. Their service offered to lenders means a savings for the lender because the lender does not need to maintain sales staff – except when a sale is made.

When there may be a problem with your credit, the value of a mortgage broker can really be seen. Because they know many different lenders and each of their specialties, they can work to find lenders that can give you a great deal.

They would already know which lenders regularly give money to those with bad credit – or whatever special need you may have. A bank representative, however, while still able to offer a number of products, is limited to only what their branch offers and the special deals they give.

And that’s why using a mortgage broker can save you money!

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