When looking at the real estate purchase contract, most buyers focus on the sales price – but the price isn’t the only factor that determines the bottom line. Is a bargain really a bargain if the buyer is paying all the transaction costs?
Before you decide to go with a great price, make sure you know the transactions costs and who will pay for what. Typical costs include a home inspection, a termite inspection, title and escrow fees, transfer taxes & recording fees. These costs vary grealty around the country. Who pays for what can be negotiated, and sometimes the customary local practice is applied.
Starting Jan. 1, 2010, the Federal Housing Administration will adhere to new credit standards and appraisal guidelines for FHA-insured mortgages. The new guidelines, which essentially align with HVCC rules, will prohibit the undue influence of appraisers, or the choosing of an appraiser, by mortgage brokers or commission-based lender staff. In addition, the FHA’s appraisal validity period will be reduced to four months for all properties including existing, proposed, and new construction. The action also provides new guidelines allowing a second appraisal to be ordered in some instances including when a borrower switches lenders.
for more info, go to www.hud.gob/office/adm/hudclips/letters/mortgagee
From “Housing Matrix . com”
Home sales have been rising since Nov. 2008, and looks like 2010 will be a good year for home sales.
http://housingmatrix.com/hot-sheets/exhome.pdf
The report tracks the number of existing homes sold during the previous month. The data is collected from more than 650 Boards/Associations of Realtors and MLS (multiple listing services) listings across the nation. It includes a two year historical graph and a table of long-term trends for existing home sales, by areas of the country, month’s supply, median and average sales price. Ideal resource to stay on top of existing home sales.
Buying a home is a big step and process can be complicated. That’s why it’s so important to have a knowledgeable real estate professional working to protect your interests.
One of the first things you should do when shopping for a home is to obtain prequalification for a home loan. This will help you understand your budget and narrow your home choices.
In order to get a mortgage, you will need to provide proof of income and assets. The amount of necessary paperwork will vary somewhat from lender to lender, but most likely you will need:
- Federal income tax returns for the previous two years.
- If you are self-employed, 1099 forms and year-to-date profit/loss statements.
- Three recent consecutive paycheck stubs.
- Three consecutive bank statements.
- Investment and savings account statements.
- Recent year’s canceled rent/mortgage check or other verification of payments.
- Documentation of additional mortgage loans or rental properties.
- Recent statements from each of your credit card companies.
- Recent statements or other documentation of car loans, student loans and other debt obligations.
- Divorce documents or other legal documentation, if applicable.
If you have questions or concerns, feel free to contact me anytime.
Brian Ripp, CRS, GRI
Broker, Notary, Property Management
Realtor since 1985
DRE Lic. 00886348
