Tuesday, February 15, 2011

What to expect when buying, "AIR"

Time and time again, when selling Albuquerque Real Estate, buyers ask "What's next? What else is left?" when in comes to the entire process of buying a home. As many may know, buying a home can be as complicated as you want, but it can also fairly easy if you just let your realtor filter out all the stress. If your Realtor is dumping every little problem on to you, well....that's unfortunate.

I believe part of a Realtor's job is to make the entire process as stress free as possible. By this I mean he or she should not call you about every little thing that may go wrong or to complain about the other realtor, lender, inspector - you get the idea (unless you ask them to. A reason eludes me at the moment...). A good little acronym I like to use as a check list for buyers looking for Albuquerque homes for sale (and myself) is "AIR" (the picture provided is the only one I could think of. Sorry. I'm a product of the 90's!)

"AIR" simply stands for "A" - appraisal, "I" - inspections, and "R" - repairs. That's it. That's all. Once these three major things are complete, and you satisfy the lender and the buyer, then the rest should be in good shape.

With that being said, of course there are several details that could slow the process down. You could dissect a deal until you go mad. But couldn't you do that with anything? Like making a sandwich? You could sit there and worry about carbs in the bread. You could worry about calories in the dressing. You could worry whether or not the tomatoes and lettuce are organic. Did the pig die happy? Is the plate clean? What am I going to drink? OR, you could just make a BLT.

by Tim Fish

Thursday, February 3, 2011

Importance of loan pre-approval BEFORE home search

It seems that time and time again I will get a call from a willing buyer that is interested in buying a home, willing to commit to a licensed Realtor, willing to take the time to go see homes, and has not even spoke with a licensed mortgage professional yet (notice the word "licensed"). This is the very first step and most important step when finding a home to purchase. I tell customers that it really isn't fun finding the perfect home and then realizing you cannot qualify to purchase it.

When selling Real Estate in Albuquerque , the very first two questions I ask a potential client is "are you currently working with a Realtor and have you been pre-approved for a loan?". It may seem a little forward and every now and then I get some resistance, but in the end it makes the journey just that much more clear. People who are working with a licensed Realtor soon realize that they should be asking their Realtor about the property and that they really should speak with a licensed mortgage pro if they haven't already.

Some don't quite know the difference regarding a "pre-approval" and a "pre-qualification", and rightly so. The stronger of the two and the most accepted is the pre-approval. With a pre-approval, you are telling the seller that you have spoken with a loan pro and have provided the preliminary documents to obtain a mortgage for the asking price within the offer minus the down payment. A pre-qualification can be obtained be just telling a loan officer about your financial situation and not give any documents to verify your information at that moment. As you can see, a person may "stretch the truth" are not know their current situation. For example, a person may think that their credit score is a 660 and when the scores are actually pulled, the middle score could be a 635. Is most cases this could be a deal breaker for underwriting.

Just a little FYI when searching for Albuquerque homes for sale.

by Tim Fish

Tuesday, February 1, 2011

Short Sales Vs. Foreclosures: What to expect when purchasing

As more and more homes come into the Albuquerque Foreclosure market, the inquiries relating to these properties increase. Prospective buyers of ABQ Real Estate are identifying these properties as opportunities to get into a home at an attractive price. And rightly so! In most cases these properties are EXCELLENT investments! The holders of these Albuquerque Foreclosures do not want to keep them on their books and often have them priced to move quickly!

But in the midst of these homes for sale exists home owners which are attempting to sell at less than what is owed to the mortgage holders: short sales...

A prospective purchaser must be aware that often these properties cannot sell for the listed price set by the owner because the mortgage company that holds the first hasn't agreed to do so. Sure, the seller wants to sell but often the bank will not sell at even the listed price. Additionally, the process can take anywhere from 60 days to 9 months to close or even to get an acceptance. The entire process can be very frustrating to say the least! But, if you are patient (and willing to see many other opportunities slip by) you can negotiate a great price. If you are a buyer under a time limit (i.e., rate lock), I cannot recommend writing up a short sale.

Remember, the foreclosed properties mentioned earlier? These can be purchased within a specific time period and are priced to sell quickly by the mortgage holders themselves and there are no occupants in the home. The mortgage holders offer the properties "as is" so you will definitely want to get inspections done on these properties as there will be no seller's disclosure to review. Once you have been satisfied with the results of the inspections, you can move forward to closing, which should fall within the customary time frame of purchasing a home.

If you are thinking about writing an offer on a foreclosed property, be prepared to provide financial approval from a qualified lender or proof of funds, and an earnest money check.

People very often confuse Foreclosures with Short Sales. Be aware of what you are previewing to purchase and make your decisions based on your needs. Consult your Albuquerque Realtor.

by Tim Fish