The process of getting into a condo is slower today

A condominium unit purchase is not a quick process. Things proceed slowly through the system for any home purchase, and closing delays are frequently seen. A recent change in HUD guidelines eliminates “Spot Loan Approval” for most condo purchases.

What does this mean for you if you want to purchase a condo? It means that most complexes now require full approval, meaning that you have to allow at least 6-8 weeks for the process. Get as much of the legwork done before you start looking. Make sure you are prequalified with a reputable lender. Some sellers require you to be approved by the lender that they choose. It doesn’t mean that you have to use that lender when you actually get your mortgage, but it’s something to be aware of.

Being prequalified means that you are looking in the proper price range. It also can help you gauge the downpayment that will be required. The FHA’s new stricter lending policies are requiring a 10% downpayment if your FICO score is low (below 580), although keep in mind that most lenders will not loan to FHA borrowers who have a score below 620. If you find that your “legwork” includes working to raise that FICO score, find out what steps you can take to do that. We can help by referring you to a lender with software that tells you just what steps you need to take. Call Gerry at 978-537-6401 x24.

A home is so much more than just Real Estate

Reprinted from Realtor Magazine

The Highest Offer May Not Be the Best
Sellers who get more than one offer should be aware that the highest offer isn’t necessarily the best offer, say experienced practitioners.

In this tough market, going with the buyer who has enough cash to pay a large down payment and who won’t be scared away if the inspection uncovers some needed repairs is often the wise choice.

Practitioners should encourage sellers to review all the terms and conditions of the sales contract. In some areas, the allocation of fees can take a big bite out of the net proceeds. While most contracts are written to reflect that, it isn’t always the case.

Also, the closing date in the offer should be considered carefully. A buyer who can close quickly can save a seller thousands. Offers contingent on the sale of another property are particularly suspect in this market.

Source: Inman News, Dian Hymer (12/28/2009)

Selling and buying property is seldom an easy give and take. The home search itself can be a lot of fun, but when you actually get to the point of purchase all kinds of emotions come into play.
In fact, a home sale transaction is one of the most stressful times in a person’s life, making the top 10 list and ranking right up there with marriage and the birth of a child, and right behind divorce and death. The thing is that many of life’s stress events bring about a need to purchase a home. Job loss, marriage and divorce, more or fewer children at home: these all trigger a home purchase or sale decision so what was a stressful situation is now compounded.
These emotional issues can make it difficult to negotiate the purchase of a home. As Realtors®, every one of us has seen a sale fall apart or come close to doing so because of something as simple as whether the refrigerator was included in the purchase, or the discovery of a $500 repair that both sides would negotiate through.
It’s stressful- for both the buyer and the seller. Sellers can use the advice from Realtor Magazine to decide who is best qualified to make the purchase. Buyers- are you that ideal buyer for that home you really want? It isn’t all about price anymore. Understanding that advice can remove at least a little stress from the process.