Question: How much is the first time buyer credit?
Answer: A tax credit of up to $8000.00 is available and is issued by the federal government to those buying their principle residence if they have not owned a home in the past 3 years. This expires December 1, 2009. Buyers really need to be in escrow by November 1, so that there is time to close the deal before the deadline.
Question: How is the current local real estate market?
Answer: If you are buying a home, and you have available financing, the local real estate market it is great! Record low interest rates and a potential tax credit equate to a excellent opportunity to get into the real estate market time. If you are selling a home, and you are upside down, the market is tough, to say the least. However, if you can price your home right, then you will find buyer.
Question: What is a short sale?
Answer: The seller is upside-down, they owe more on the house then what the home is worth. So the seller attempts to sell the home at a loss. The lender takes the loss, and so the lender must approve of the sale. The lender approval is the crux of a short sale. Sellers can be liable for taxes in this situation, and they must be sure that the lender can not come after them for a judgement after the deal closes. Shorts sales are complicated and require patients from buyers and sellers. If your agent is not experienced with short sales, the buyer and seller involved may be wasting their time. Often times short sales do not work despite a full price offer from a qualified buyer. Professional consultation with industry professionals is strongly recommended for those getting involved with a short sale.
Question: What is REO/Foreclosure/ bank owned?
Answer: These terms mean basically the same thing. A home was repossessed by the bank and now the bank is trying to sell the home, usually at a discounted price. Bank owned properties are usually run down and not maintained. There are no disclosures because the bank has not lived at the property. Banks prefer a cash offer over an offer that requires financing, even if the financed offer is for more money. Damage due to deferred maintenance or vandalism often times disqualify foreclosure properties from FHA financing and conventional financing. Banks are usually not willing to make repairs to the properties, even if it will help the sale of the property.
Question: Who pays the commission to agents?
Answer: The seller offers a commission which is only paid if the deal goes through. If the deal closes the commission is usually divided between 4 people. There are several ways to structure payment for an agent’s service but the “exclusive right to sell” is the most common in El Dorado County. The commission offered is split (usually in half) by the listing / sellers agent and the buyers agent. The portion earned by the buying and selling agents is then split between the agent’s broker, and the agent.
Question: How does the buying process work?
Answer: Find and home, agree on price and terms of sale, inspect the property, re-negotiate if necessary, secure financing, close the deal. Finding a home can take several months depending on the buyers needs. The process of finding a home is make more efficient if the buyer has a good source of information. A tech savvy agent can deliver this information through the highly advance software that is available only to agents that are willing pay for it and who are willing to keep up with rapidly advancing technology. Once homes are identified at potential candidates, the agent can do further research and show the inside of the property. If a buyer wants to buy, then a strategy is developed to secure the property. An offer is written and submitted. If accepted the inspection period begins. If major problems with the home are found, the buyer can back out and receive their good faith deposit back, usually 2k. The buyer can ask for the seller to make repairs or bail out and still protect their deposit. If parties come to an agreement an appraisal is ordered to determine value so that the financing procedures can begin. Financing takes about three weeks and it is a very technical, complicated procedure. If all parties are still in agreement the deal usual closes about thirty five days after and offer has been accepted.
Question: How do I find a good lender and get the best interest rates possible?
Answer: Go to a trusted bank and talk to a seasoned, professional mortgage consultant. Direct lenders such as Wells Fargo will give you the best deal because they service their loans, and they process a high volume.
Nicolas Moszoro is one such seasoned professional. Three factors help to determine rates, the stock market, inflation and the economy. Nicolas has proved his commitment to getting the best rates available for his clients. Rates change often, as many as three times in a day and so you must have a dedicated loan officer watching the market constantly. Nicolas has earned the trust of industry professionals and his vast client base.
