Tag Archives: #homebuying

Fun Facts and Inspiration for May 30


Fun Facts and Inspiration for May 30

 Inspiration…

“The significance of a man is not in what he attains but in what he longs to attain.”

                                                                                                Kahil Gibran

Did you know that…

After the “Popeye” comic strip was launched in 1931, spinach consumption went up by 33% in the United States.

Elephants communicate in sound waves below the frequency that humans can hear.

The bands on hats traces back to the custom when knights wore their lady-loves scarves around their helmets.

To ensure continuity of government, Prince Charles and Prince William never travel on the same airplane as a precaution.

During World War II sugar was in in short supply making it difficult for theatres to obtain candy.  As a result, they turned to popcorn which is not the best-selling snack at movie theatres.

Men can read smaller print than women can; however, women can hear better.

The Pacific entrance of the Panama Canal is farther East than the Atlantic entrance.

In real estate, signing with a real estate agent as a buyers’ agent is the only way a buyer has true representation.  Until that contract is signed, the agent is most likely working for the seller, even if they are not the listing agent.  I have said this many, many times, if you are in the market to buy a home, always, always, always sign a contract with an agent so you have representation.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

 

 

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What Every REALTOR® Wants You To Know – My Two-Faced Strategies!


What Every REALTOR® Wants You To Know – My Two-Faced Strategies!

No one should be surprised to hear that the strategy a REALTOR® plans for a buyer is different for that of a seller. I have both sellers and buyers that I am working with and some are several months into the future.

Real Estate Market Trend is Strong
Real Estate Market Trend is Strong

I have a client who is preparing his house to go on the market this summer. This summer fits into the schedule they have. My advice to them is that it is Ok to wait until summer because home prices are expected to climb. Home prices in the nation climbed 8.2% from January, 2015 to January, 2016. This increase works well with their plan to list the property this summer.

I also have clients that are looking to buy a home. They want to “start looking actively” in May of this year. My advice to them is to not wait. That same increase in home prices that are working to the advantage of my home sellers is working against my home buyers. My advice to home buyers is to not wait.

If you are looking to buy a home of $250,000, an 8.2% increase in the price would now cost you $270,500 – an increase of $20,500. The good news is that mortgage interest rates are expected to remain low, however, some slight increases may occur.

My advice to home sellers is to list your property to fit your schedule. My advice to home buyers is to get moving. If you are even thinking of buying a home in the next year I encourage you to start now.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® – who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

Things Every REALTOR® Wants You To Know – Pre-Qualified vs. Pre-Approved


Things Every REALTOR® Wants You To Know – Pre-Qualified vs. Pre-Approved

The age-old question of which came first, the chicken or the egg, can certainly apply to home buying. If you talk to a REALTOR® they will most likely tell you the first person you should contact is a REALTOR®. If you talk to a mortgage broker they will undoubtedly tell you the first person you should talk to is a mortgage broker.

Pre-Approval-vs-Pre-Qualification

Breaking with tradition of REALTORS® I will tell you it really does not make to much difference who you contact first – as long as both the real estate agent and the mortgage broker are in lock step. That being said, I will say that I believe that it is more critical to talk with a REALTOR® first. The reason is that the REALTOR® will be with you during the entire process. Because of that it is important that you are comfortable with your REALTOR®. The mortgage broker will handle a much smaller portion of the process.

Nevertheless, applying for a mortgage is a critical step and should be done early on in the process. First of all, buyers must determine the amount of mortgage they will be approved for in order to determine what price range of homes they should look at.

As a REALTOR®, one of the first questions I will ask a potential buyer is whether or not they have talked to a mortgage broker and whether or not they have been “pre-approved.” If not, most REALTORS® can refer you to a mortgage broker that they are confident will work hard to be able to approve a loan for a potential buyer. Not only that, the relationship between the REALTOR® and mortgage officer is critical during the process should there be a glitch along the way. It is always important that if there is a glitch – and there often is – that the REALTOR® or mortgage officer can pick of the phone and talk to each other, as opposed to emails from Internet based mortgage companies.

There is a lot of confusion between a pre-qualified and pre-approved. It is very important that buyers understand the difference and get pre-approved for a mortgage. Here is why.

Any real estate agent can pre-qualify a potential buyer for buying a home. This process is a very simple process and only crunches a few numbers. Basically, the buyers state how much income they have and how much debt they have. If the total debt and mortgage payments, including taxes and insurance is less that 36% of their gross income and their mortgage payment is less than 28% of their gross monthly income, then they will LIKELY qualify for a mortgage.

I say ‘likely’ because in the pre-qualify process it does not take into account if the potential buyers are current with payments; it does not verify the income, nor does it review their overall credit worthiness. Personally, I have not done a pre-qualify for years. It is more effective for potential buyers to obtain a “pre-approval” letter from a qualified mortgage broker. Even then it is a first step in obtaining a mortgage.

There is another major reason why I require buyers to get pre-approved prior to showing properties, at least not too many.

Often times potential buyers will decide that they can afford a $500,000 home only to later find out that they will only be approved for a $350,000 mortgage. If I have shown them homes priced at $500,000 every home that I now show them priced at $350,000 will fall short of what they have looked at before. This makes home buying very difficult.

In addition, if I am representing the sellers, I want to see a “pre-approval letter” from a qualified mortgage broker along with the offer to determine how serious the offer really is.

If you are thinking a buying or selling, talk to a real estate professional – talk to a REALTOR® – who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland