You now are at the point you want to write an offer for a property you have found.
What do you need to prepare to write an offer?
1. A pre-approval letter. By this point you have already met with a lender and have been pre-approved. You will want to have this letter submitted with your offer. This will let the seller know that you have been pre-approved and are able to purchase the home.
2. A check for the earnest deposit. What is an earnest deposit? This is the amount you will put down with the offer. This check is written out to a title company who is the neutral 3rd party and the handler of money. What this says to the the seller is you are a serious buyer. You want this house and you are willing to put money down to ensure you get it.
3. Determine offer price and terms. You have been researching homes and areas. Your Realtor has provided you with comparables to the property you are interested in so you know what other homes have sold for recently. You have seen the disclosures on the property. Your Realtor will have found out if other offers are coming in. With all this information you are able to determine what price you are going to offer for the house.
4. What are the Terms of the Contract? Terms of the contract are:
A. Appraisal Contingency
B. Loan Contingency
C. Inspection Contingency
What are contingencies? These are time lines that allow the buyer to get their loan approved, have the property appraised to ensure that the appraised value of the home is at least what you are offering to purchase it at and the inspection contingency allows you to have the home inspected to ensure everything is in good working shape, and that you have had time to research the neighborhood, review HOA docs, etc.
These contingencies have a finite time line that you the buyer can modify. This is what is the terms of the contract.
Taking these steps will prepare you to putting pen to paper and writing the contract. Stay tuned for my next Blog regarding writing the contract.
If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139
Wednesday, August 29, 2007
Friday, August 24, 2007
The Buying Process--What Steps Do I Take? Step 4
Step 4 Getting Ready to Write An Offer
So you have been researching areas, looking at houses and you have found the house. What's next?
You have found that house you would like to buy. There are some details your Realtor will need to find out before you put anything on paper:
1. Is there an offer date? If yes, do they have any other confirmed offers coming in? What this will do for you is to set the expectation level regarding potential competition. In this market you do not see this as often, but it still does happen. If you know that you are potentially 1 of 3 offers, you can work with your Realtor to write a competitive offer.
2. Are there any disclosures. The level of information provided by different sellers and different Real Estate Agencies will vary. Often times in preparation for the market sellers will have a pest report done, maybe a sewer lateral report, a home inspection report, a roof report. Also different cities will have different disclosures required. (look for a blog to come regarding dislcosures).
So you have all of this information up front. You know if there are any other offers coming in and you have dislcosures. Now it is time for you to work with your Realtor on writing an offer.
See my next blog for more inforamtion on Writing and Offer.
If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139
So you have been researching areas, looking at houses and you have found the house. What's next?
You have found that house you would like to buy. There are some details your Realtor will need to find out before you put anything on paper:
1. Is there an offer date? If yes, do they have any other confirmed offers coming in? What this will do for you is to set the expectation level regarding potential competition. In this market you do not see this as often, but it still does happen. If you know that you are potentially 1 of 3 offers, you can work with your Realtor to write a competitive offer.
2. Are there any disclosures. The level of information provided by different sellers and different Real Estate Agencies will vary. Often times in preparation for the market sellers will have a pest report done, maybe a sewer lateral report, a home inspection report, a roof report. Also different cities will have different disclosures required. (look for a blog to come regarding dislcosures).
So you have all of this information up front. You know if there are any other offers coming in and you have dislcosures. Now it is time for you to work with your Realtor on writing an offer.
See my next blog for more inforamtion on Writing and Offer.
If you have any questions you can contact me at lcartolano@apr.com or at 510.213.1139
Wednesday, August 22, 2007
The Buying Process--What Steps Do I Take? Step 3
Step 3 How Do I find a House?
What resources are available? When and why should you contact a Realtor?
Resources Available
There is a wealth of web based resources out there. You can look at homes for sale, research areas and find open homes. Below are some resources for you can take a look at:
www.lisacartolano.com (allows you to set your self up to recieve alerts about homes that come on the market that meet your specifications)
Trulia
Craigslist.org
Yahoo
There are many other online resources as well.
You can also ask friends, family, co-workers about what they like and don't like about where they live.
When and why should you contact a Realtor?
Knowing real estate is what a Realtor does for a living. When you contact a Realtor early on, you can have that person help you to define your wants and needs, help you learn about areas you are interested in and learn about other areas you may not know about, they know their marketplace.
They can assist you in finding a lender, can help facilitate finding out information regarding a home you are interested in. (for example getting disclosures regarding the property, finding out if there are any other offers coming in, what is the seller's motivation). They are they to help you, to negotiate for you, to protect your best interests.
Remember to take a deep breath. It is an exciting process looking for a home and it should be fun!
Any questions? You can contact me at lcartolano@apr.com or at 510.213.1139
What resources are available? When and why should you contact a Realtor?
Resources Available
There is a wealth of web based resources out there. You can look at homes for sale, research areas and find open homes. Below are some resources for you can take a look at:
www.lisacartolano.com (allows you to set your self up to recieve alerts about homes that come on the market that meet your specifications)
Trulia
Craigslist.org
Yahoo
There are many other online resources as well.
You can also ask friends, family, co-workers about what they like and don't like about where they live.
When and why should you contact a Realtor?
Knowing real estate is what a Realtor does for a living. When you contact a Realtor early on, you can have that person help you to define your wants and needs, help you learn about areas you are interested in and learn about other areas you may not know about, they know their marketplace.
They can assist you in finding a lender, can help facilitate finding out information regarding a home you are interested in. (for example getting disclosures regarding the property, finding out if there are any other offers coming in, what is the seller's motivation). They are they to help you, to negotiate for you, to protect your best interests.
Remember to take a deep breath. It is an exciting process looking for a home and it should be fun!
Any questions? You can contact me at lcartolano@apr.com or at 510.213.1139
Tuesday, August 21, 2007
The Buying Process--What Steps Do You Take? Step 2
Step 2 Narrow Your Focus
You have talked with a lender and now you have a good idea of what you can afford and what you are comfortable paying for a house.
Now What?
It is a good idea to sit down and think about what you want in a house and a neighborhood. If you are buying with someone else you both need to make sure to sit down and talk about what each of you want in a house.
*Do you want a new house or older construction?
*Do you want 2 or 3 bedrooms?
*How many bathrooms?
*Do you want something that needs some cosmetic work or would your prefer something you can just move into.
*Do you have a specific neighborhood you want to live in?
*Do you want to be near public transportation?
*Do you want to walking distance to ammeneties?
*Is there an area you don't want to live?
Now you have the list of you wants. At this point it is a good idea to look at what you consider a must have versus a would like to have. Maybe you have to have 3 bedrooms, but you could live with one bathroom, etc. etc.
When considering a neighborhood it is a good idea to keep an open mind. There may be one neighborhood you have your heart set on but if homes in this area are going for over a million and your price point is closer to $650, it will be very tough to find a home you would like in that particular neighborhood. Definitley don't rule it out, but being realistic about your options will make the home search process a lot less painful.
Remember your list can and probably will change!! And that is okay. Through the search process you often times discover areas you did not know about and certain have to haves from your list may become a would like to have.
Next Step 3- How Do I find a House?
You have talked with a lender and now you have a good idea of what you can afford and what you are comfortable paying for a house.
Now What?
It is a good idea to sit down and think about what you want in a house and a neighborhood. If you are buying with someone else you both need to make sure to sit down and talk about what each of you want in a house.
*Do you want a new house or older construction?
*Do you want 2 or 3 bedrooms?
*How many bathrooms?
*Do you want something that needs some cosmetic work or would your prefer something you can just move into.
*Do you have a specific neighborhood you want to live in?
*Do you want to be near public transportation?
*Do you want to walking distance to ammeneties?
*Is there an area you don't want to live?
Now you have the list of you wants. At this point it is a good idea to look at what you consider a must have versus a would like to have. Maybe you have to have 3 bedrooms, but you could live with one bathroom, etc. etc.
When considering a neighborhood it is a good idea to keep an open mind. There may be one neighborhood you have your heart set on but if homes in this area are going for over a million and your price point is closer to $650, it will be very tough to find a home you would like in that particular neighborhood. Definitley don't rule it out, but being realistic about your options will make the home search process a lot less painful.
Remember your list can and probably will change!! And that is okay. Through the search process you often times discover areas you did not know about and certain have to haves from your list may become a would like to have.
Next Step 3- How Do I find a House?
Sunday, August 19, 2007
The Buying Process--What Steps Do You Take? Step 1
Step 1-Finding The Right Lender
You have considered buying a home, but you are not sure how to get started. You have looked some online and maybe you have gone to a few open houses.
The first step is often the one that can be a little nerve racking for some, and not the most fun. You need to talk to a lender.
Why do you need to do this up front? For one your credit score will impact what kind of loan you can get. It is a good idea to have a lender pull your credit so you have an idea of what your credit score is. You may have some dings on your credit that are incorrect, and if you have the time you can often have erroneous dings removed from your credit report, but you will need some time to do this. Also how much money you have to put down will affect the type of loan you can get and the rate of the loan.
You will also want to find out if there are any special programs you might qualify for that can help you get into a home. For example there are special programs available for first time home owners, or if you are a teacher, police officer or fireman. You also may have family that is willing to help chip in for the down payment, so you will want to talk to a lender about how you can use this money to your advantage.
It is very important to find out about your credit score, what kind of financing is available and how much are you comfortable spending. You may get approved for a certain dollar amount, but you need to look at the monthly costs including property taxes, insurance, etc. to make sure you have a payment you are comfortable with.
How can you find a lender?
Ask your friends and family. They may have worked with someone they were impressed with. You can also ask a Realtor. Realtors deal with many different lenders and often have a few resources they can pass along.
Once you have a chance to sit down and talk with a lender you should be ready to move on to the next step, narrowing your focus to begin your search. Look for my next blog for this information.
If you have any questions or are looking for a lender you can contact me at lcartolao@apr.com or 510.213.1139
You have considered buying a home, but you are not sure how to get started. You have looked some online and maybe you have gone to a few open houses.
The first step is often the one that can be a little nerve racking for some, and not the most fun. You need to talk to a lender.
Why do you need to do this up front? For one your credit score will impact what kind of loan you can get. It is a good idea to have a lender pull your credit so you have an idea of what your credit score is. You may have some dings on your credit that are incorrect, and if you have the time you can often have erroneous dings removed from your credit report, but you will need some time to do this. Also how much money you have to put down will affect the type of loan you can get and the rate of the loan.
You will also want to find out if there are any special programs you might qualify for that can help you get into a home. For example there are special programs available for first time home owners, or if you are a teacher, police officer or fireman. You also may have family that is willing to help chip in for the down payment, so you will want to talk to a lender about how you can use this money to your advantage.
It is very important to find out about your credit score, what kind of financing is available and how much are you comfortable spending. You may get approved for a certain dollar amount, but you need to look at the monthly costs including property taxes, insurance, etc. to make sure you have a payment you are comfortable with.
How can you find a lender?
Ask your friends and family. They may have worked with someone they were impressed with. You can also ask a Realtor. Realtors deal with many different lenders and often have a few resources they can pass along.
Once you have a chance to sit down and talk with a lender you should be ready to move on to the next step, narrowing your focus to begin your search. Look for my next blog for this information.
If you have any questions or are looking for a lender you can contact me at lcartolao@apr.com or 510.213.1139
Thursday, August 16, 2007
Where Oh Where Has All The Money Gone?
What's Up the Mortgage Industry?
So the news is filled with it. We have all heard about lenders going out of business, the sub-prime market going to hell in a hand basket and now you hear you can't buy a home with less than 20% down.
What is Really going On?
Some of the news you read is true. Yes interest rates are up. Yes the sub-prime market is pretty much non-existent now, but there are still options. And yes a lot of lenders are closing their doors.
What is going on now is a lot of options that brokers had available are not there. The big banks like Wells Fargo, Bank of America, etc and their affiliates are still doing competitive rates and are still doing some 100% financing. Jumbo loans (loans over $417,000) are still available. Brokers with a good working relationship with the larger lenders are also able to help you find a loan.
This frenzy over the mortgage market is very reminiscent to the whole dot bomb era where everyone was a paper millionaire one day and the next just a 28 year old techy looking for a job.
There is a shake up going on, but acting like the sky is falling isn't a rational reaction to it all. If you are looking for a loan, do your homework! Find a lender who is reputable and who can explain to you what is really going on in the market, and what they are hearing from industry leaders.
If you are looking to buy, there are still a lot of options out there, you just have to be reasonable in your expectations.
Feel free to contact me if you have any questions or if you would like the recommendation of a lender to speak with.
So the news is filled with it. We have all heard about lenders going out of business, the sub-prime market going to hell in a hand basket and now you hear you can't buy a home with less than 20% down.
What is Really going On?
Some of the news you read is true. Yes interest rates are up. Yes the sub-prime market is pretty much non-existent now, but there are still options. And yes a lot of lenders are closing their doors.
What is going on now is a lot of options that brokers had available are not there. The big banks like Wells Fargo, Bank of America, etc and their affiliates are still doing competitive rates and are still doing some 100% financing. Jumbo loans (loans over $417,000) are still available. Brokers with a good working relationship with the larger lenders are also able to help you find a loan.
This frenzy over the mortgage market is very reminiscent to the whole dot bomb era where everyone was a paper millionaire one day and the next just a 28 year old techy looking for a job.
There is a shake up going on, but acting like the sky is falling isn't a rational reaction to it all. If you are looking for a loan, do your homework! Find a lender who is reputable and who can explain to you what is really going on in the market, and what they are hearing from industry leaders.
If you are looking to buy, there are still a lot of options out there, you just have to be reasonable in your expectations.
Feel free to contact me if you have any questions or if you would like the recommendation of a lender to speak with.
Friday, August 3, 2007
When Should I Contact A Realtor When Considering Buying?
So you have been thinking about buying a home. You've started reasearching areas, you have an idea about what you can afford and you are starting to look. Your not expecting to buy in the next few months, so you are just in the look and see phase.
When should you contact a Realtor?
Think about this scenerio. You go to an open house and you feel like you have found your dream home. You aren't working with a Realtor so you talk to the listing agent about putting in an offer for you.
Now you can begin to have a sticky realtionship. The Realtor is representing both the buyer and seller. As the buyer you may want to know how motivated the seller is, can they negotiate price. The Realtor in this situation really can't do much to help you. Since he/she has first hand knowledge of the seller's situation, they really can't fully represent the seller and the buyer in recommending an offer price.
So you get through the first hurdle of offer price and now you have a issue that comes up from the home inspection and you want some items fixed. Again the Relator is trying to represent both sides of the sale. You begin to feel like who are they really working for? Things can become quite contencious.
In my opinion a Realtor can not really do the best job for either buyer or seller when they are representing both sides of the deal.
If you are looking to buy, it is best to try and contact a Realtor early in the process. Even if you are looking to buy in the future a Realtor can help you locate the areas you might be interested in, can send you a list of properties as they come on the market and give you an idea of the current marketplace keep you up to date on information in the Real Estate Market.
Want more inforamtion? You can contact me at lcartolano@apr.com
When should you contact a Realtor?
Think about this scenerio. You go to an open house and you feel like you have found your dream home. You aren't working with a Realtor so you talk to the listing agent about putting in an offer for you.
Now you can begin to have a sticky realtionship. The Realtor is representing both the buyer and seller. As the buyer you may want to know how motivated the seller is, can they negotiate price. The Realtor in this situation really can't do much to help you. Since he/she has first hand knowledge of the seller's situation, they really can't fully represent the seller and the buyer in recommending an offer price.
So you get through the first hurdle of offer price and now you have a issue that comes up from the home inspection and you want some items fixed. Again the Relator is trying to represent both sides of the sale. You begin to feel like who are they really working for? Things can become quite contencious.
In my opinion a Realtor can not really do the best job for either buyer or seller when they are representing both sides of the deal.
If you are looking to buy, it is best to try and contact a Realtor early in the process. Even if you are looking to buy in the future a Realtor can help you locate the areas you might be interested in, can send you a list of properties as they come on the market and give you an idea of the current marketplace keep you up to date on information in the Real Estate Market.
Want more inforamtion? You can contact me at lcartolano@apr.com
Subscribe to:
Posts (Atom)
