For a Smoother Closing Table Experience...

Hi All,
   Welcome back after the extended Holiday weekend.

   Last week, we touched on the things that can hamper a Closing ("Oh, Those Crazy Closings!"), and today, we are going to revisit the topic, since we are hopeful that more Closings will be happening, which would signify a robust Housing Market.".

One of the most respected Real Estate Websites, Trulia.com, has published a handout that provides 4 tips for Buyers to help them proactively prepare for the Closing. These tips are extremely crucial, and can make the difference between you and your new "keys"!

   Tip #1 - "Halt Major Money Moves". Basically, try to remain low-key in terms of deposits, credit limits, etc (any "money-related activity that could change your financial status in any way").

   Tip #2 - "Tell the Whole Truth". Everything that you do or say will be verified multiple times, i.e. credit, assets, marital status, employment. Getting a Mortgage is tougher than it was a few years ago, and the process has become much more strict than ever before.

   Tip #3 - "Closing Documents: Read Ahead". Know any corrections or changes in your documents before you get to the Closing table vs. the day of the Closing. This is so important!

   Tip #4 - "Watch the Calendar". Take control of deadlines for inspections, etc. Constant communication with real estate and mortgage brokers regarding dates is key to your deal (dates can impact interest rates, etc.).

   Overall, some great tips from Trulia. Is there anything else you can suggest?

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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #closing #creditlimits #assets #documents #inspections #trulia #realestatebroker #mortgagebroker #mortgage #interestrate

Oh, Those Crazy Closings!

Good Morning,
   As we all get ready for Turkey overload, I'd like to welcome you back!

   Selling a home? If so, do you savor the day it sells? Is the thought of the sale going through as juicy a thought as the Turkey gravy dancing through your head? Not so fast. "Reaching an agreement doesn't mean your home is as good as sold", writes Margarette Burnette for the HSH.com website article, "4 weird closing glitches (and how to avoid them)".

The Glitches that Burnette writes about are:

1 Liens
2 Termites
3 Renters in residence
4 Parties don't have enough money for closing
* Bonus from my own personal experience - "In writing" !

   Liens, says Cynthia Jones, a real estate attorney with Horack, Talley, Pharr & Lowndes, P.A., a law firm in Charlotte, N.C., are "any unpaid bills you have from delinquent property taxes, homeowners association dues or even past remodeling work", in comments appearing in Burnette's article. For any such liens, Jones suggests that you can "try to work out an agreement with" the party you owe money to", i.e., a payoff.

   As for our wood-chewing nemesis, termites, Barry Hildebrandt, broker/owner of WCI Real Estate in Riverside, Calif, says that "Many home sale contracts are drafted with contingencies that allow the buyer to inspect the home before going through with the sale". What should you do? Make sure you inspect and clear out the little buggers in advance!

   If you have people residing in/renting your property, you will want them out by the Closing, and Jones suggests that you, "make sure your lease agreement provides enough time for your tenants to move before you close on the property and hand the keys over to your buyers".

   The next potential glitch can hit either the buyer, the seller, or both parties. Burnette suggests that buyers should still be "preapproved for their loans in order to help make the process go more smoothly", and warns that if the buyers have not "properly calculated how much they'll need to bring to closing", they could fall very short and it could impact completion of the deal, thus, the Closing.

   If sellers are underwater on their mortgage, says Jones. they may have trouble coming up with the funds to pay off their own loan at closing, however, she suggests that in order avoid such issues, make sure that both parties have a "clear understanding" of the amount of money that needs to change hands at the closing. Sound Advice.

   Here's my bonus tip, prefaced with a little story. When we purchased our home, we were quoted an interest rate 1/4 point below what the Closing papers said. You may scoff at a 1/4 point, but on $400,000, that's big money! To top it off, our mortgage guy was on vacation for the closing. I was able to have his secretary patch me through to him from the closing table, and I shed a piece of my mind on him. Short of delaying the closing (and delaying our movers, etc), we agreed on a compensation to us which turned out to be quite fair. Long story short; get everything in writing before the closing!

   Did we miss anything?

   May you have a blessed and joyous Thanksgiving, and I continue to be thankful for my family, friends, and the joy of writing these posts for your enjoyment. We will not be posting Friday, however, will be back with you during the following week.

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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #closing #lien #termite #renter #realestateattorney #homeownersassociationdues #propertytaxes #payoff #underwater #mortgage #interestrate

Costly Mistakes When Mortgage Shopping

Welcome Back, Folks,
   Fall has fallen, but it's not the only thing that has fallen.

   The mortgage market is in a baffling state, which has been referred to as "Irony", in comments from Lawrence Yun of the National Association of Realtors® (NAR), a which we discussed in last Friday's Blog Post ("Snapshot of September New Construction and Existing Home Sales"). Yun points to the paradox of historical affordability conditions with more creditworthy borrowers, but contract failures that are at elevated levels, regardless of the favorable conditions.

   Could it be partial accountability on mistakes that the borrowers are making? It's quite possible, and in a recent article on the Inman.com new website, titled, "3 mortgage mistakes you can avoid", Tara-Nicholle Nelson (of rethinkrealestate.com) lists these mistakes along with some suggestions to overcome these personally-set obstacles.

   If your mortgage amount that you owe outstanding is greater than the value of your home, you are considered "upside-down", and if you fail to try refinancing because of that, it's a mistake, says Nelson. She writes that approx 23 percent of all American homes are upside-down, and that you should not feel "trapped" with high interest rates. As a matter of fact, Nelson writes, "multiple options abound for lowering your interest rate and monthly payment if you're upside down on your home loan", and says that banks are increasingly "amenable to simply modify existing mortgages to render them less prone to default and foreclosure", especially if the homeowner is trying to recover from financial hardship. as long as you have not missed any payments, she says that "many banks offer refis on mortgages as much as 25 percent underwater", and also mentions HAMP (Home Affordable Refinance Program) as options. Seek out help from Mortgage professionals to review your options.

   Nelson points to the potential for low satisfaction, low speed, and low assertiveness from just walking into a bank to get a mortgage, however, if you go with a mortgage broker or a private mortgage banker through referrals of your close friends and relatives, says Nelson, "chances are good you'll get someone who understands that the long-term health of their business depends on you and clients like you getting a deal closed in a timely manner".

   The third mistake that Nelson points out is when you think that you are stuck with your mortgage for 30 years, and says that she has head people say they didn't want to buy a home "because they were depressed by the thought of a debt that would last 30 years". She adds the following piece of wisdom: "you control when you pay your mortgage off, and it doesn't take a lottery or inheritance windfall to pay yours off sooner than later", and says that paying a little extra towards the principal can go a long way in shrinking the time it takes to pay off your mortgage.

   To summarize; You do have control and power to make changes to your mortgage, which can have a positive outcome on your entire financial bottom-line. What other mistakes have you seen borrowers make, and what can they do to avoid those pitfalls?

   On a personal note...a very special shout-out to a very special lady. Danielle, Happy Birthday. Love you, honey !

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:
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Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #mortgage #realestate #upsidedown #refinance #interestrate #mortgagepayment #mortgagebroker #bank