Hi Folks,
In today's market, buyers still have the majority of the power. The best scenario for anyone looking to move currently is to move up. When you sell your current home to buy a larger or more expensive home, you maximize the potential to save BIG! For instance, say you sell your current home for $120,000 to purchase a home in the $220,000 range. If the market is down overall 10% from previous years, this means you would make around $12,000 LESS on the sale of your current home than in a better (seller's) market, however, you would SPEND $22,000 LESS on the new home purchased. Plus, rates are back at all time LOWS after the recent FED announcement. Food for thought...
Don't forget to leave a comment or message me with questions!
Derek King
940-641-0763
www.TheRemaxKing.com
Friday, August 12, 2011
Tuesday, August 2, 2011
Pre Qualify FIRST!
My First blog about the most common issue I come across in this business...
I met with a prospect home buyer to discuss their plan and options in the purchase of a new home. They have a house that they will be turning into an investment house (leasing it out), so they are ready to go! After going through the formalities of introduction and credentials, we got down to business. I said (as I always do) "Will this be a cash deal or have you been pre qualified for the loan??". The prospect gave me a glare and said that their finances were outstanding and getting another mortgage would be the last of their worries..... (EVERYONE has perfect finances)...
I then go into my normal spiel about how I don't show any homes unless the buyers have proof of funds (cash deal), or a pre qualification letter from a lender I trust or can contact. They said to go ahead and search the MLS to see what was available in the price range they had predetermined. So I did. We narrowed it down to 3 homes (one of which the wife had already driven past and was in LOVE with). Next they wanted to go see the home in person. Again, I go through my spiel. So, given that the husband would not get any relief if they couldn't go see the home, they reluctantly decided to call the lender. As it turned out, their credit WAS good, but their debt to income ratio was too high for the price-range in which they were interested. This was heartbreaking for the wife who was now SOLD on the home... Long story shortened a bit, they needed to sell their current home to buy in this price range. Unfortunately, they are a little upside down in their current home and don't have the cash to bring to close if we were to sell it. Also, now the homes in the price range that they would qualify seem awful in quality/size compared to the other home.
Bottom Line Folks....
Get pre qualified if you are thinking about a purchase (whether you own a home currently or not) BEFORE getting your hopes up. It takes just a few minutes and will save everyone time and heartache. It is only human to want the $300K, but when you can only afford the $200K house, find the one that fits your wants and needs the best and GO WITH IT! These folks are not out of options, but they did get off to a rough start by getting their hopes up too high. There are still many nice homes in the price range they can afford. I look forward to helping them find it!
If you have any questions about this or anything else to do with Real Estate, contact your realtor, or if you don't have one, Contact ME! I am always here to help!
Derek
http://www.theremaxking.com/
940-641-0763
Happy Home Buying!!
I met with a prospect home buyer to discuss their plan and options in the purchase of a new home. They have a house that they will be turning into an investment house (leasing it out), so they are ready to go! After going through the formalities of introduction and credentials, we got down to business. I said (as I always do) "Will this be a cash deal or have you been pre qualified for the loan??". The prospect gave me a glare and said that their finances were outstanding and getting another mortgage would be the last of their worries..... (EVERYONE has perfect finances)...
I then go into my normal spiel about how I don't show any homes unless the buyers have proof of funds (cash deal), or a pre qualification letter from a lender I trust or can contact. They said to go ahead and search the MLS to see what was available in the price range they had predetermined. So I did. We narrowed it down to 3 homes (one of which the wife had already driven past and was in LOVE with). Next they wanted to go see the home in person. Again, I go through my spiel. So, given that the husband would not get any relief if they couldn't go see the home, they reluctantly decided to call the lender. As it turned out, their credit WAS good, but their debt to income ratio was too high for the price-range in which they were interested. This was heartbreaking for the wife who was now SOLD on the home... Long story shortened a bit, they needed to sell their current home to buy in this price range. Unfortunately, they are a little upside down in their current home and don't have the cash to bring to close if we were to sell it. Also, now the homes in the price range that they would qualify seem awful in quality/size compared to the other home.
Bottom Line Folks....
Get pre qualified if you are thinking about a purchase (whether you own a home currently or not) BEFORE getting your hopes up. It takes just a few minutes and will save everyone time and heartache. It is only human to want the $300K, but when you can only afford the $200K house, find the one that fits your wants and needs the best and GO WITH IT! These folks are not out of options, but they did get off to a rough start by getting their hopes up too high. There are still many nice homes in the price range they can afford. I look forward to helping them find it!
If you have any questions about this or anything else to do with Real Estate, contact your realtor, or if you don't have one, Contact ME! I am always here to help!
Derek
http://www.theremaxking.com/
940-641-0763
Happy Home Buying!!
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