MSN Real Estate recently posted 15 terms one is sure to hear during their navigation within the real estate market. The terms:
- Adjustable rate mortgage
- Amortization schedule
- Down payment
- Fannie Mae/Freddie Mac
- Good faith estimate
- Prime rate
Please read “15 real estate terms explained” for definitions.
Do you know what is needed these days for a loan? Proof you have the ability to repay (ATR) the loan. Dodd/Frank requirements are there to protect the borrower, but have made it more stringent to acquire that loan you want.
All lenders are required to show you can repay the loan otherwise they may be liable. In order to meet these requirements you will have to:
- Prove you have the income required to purchase the property you desire
- Show job stability with at least two years history
- Credit with no lates at least within the last 6 months
- 1 year on conforming loans
Knowing about these requirements prior to talking to a loan officer or broker is helpful in ensuring a smooth transaction. Often times, borrowers are caught off guard by these requirements and time is lost searching for required documents. Or worse, they are denied.
Become prepared for your loan and show up prepared.
Give us a call @ 866-920-5777 – We’re in Sacramento, CA.
SacBee.com has a cool interactive map to check out the prices of homes in Oak Park and Del Paso Heights. The map tells you what is for sale, what has recently sold, and the price of course. One home is as cheap as $18,700!
Check out the map. There are also links to property details.
Reported by CNNMoney, Carla Fried. According to Money magazine’s “Make More in 2014” – How to play the housing market
Advice for Buyers
- Expect to pay a price for delay – “30-year fixed-rate mortgages are forecast to climb from today’s 4.5% more than 5%.” CNNMoney
- Link up with fast closers – Speed is now an issue. Work with lenders that are local and have ties with nearby appraisers.
- Make Credible offers – Don’t low-ball, lead with a good offer, but don’t overpay. Counter offers are extremely less likely when sellers are receiving multiple bids. Good news: final sale prices in bidding war areas are still “typically about 1% below asking.” CNNMoney
Advice for Owners
- Flexibility for those not yet looking to sell – Rising equity makes it easier to borrow against your property
- Reasonable remodeling – A cost-vs.-value survey put together by Remodeling Magazine “found that moderate kitchen remodels ($57,500) recouped 69% of their cost, close to what minor jobs paid back. Over-the-top projects ($111,000), though, recouped less than 60%.” CNNMoney
- Low home-equity rates should be taken advantage of – rates have fallen, but “go with a fixed-rate home-equity loan” if repayment will take several years. CNNMoney
Advice for Sellers
- Correctly price the first time around – Don’t waste time by “listing too high only to have to wait and lower the price.” CNNMoney
- Be present for the appraisal – see article for agent recommendations
Please read “Real estate: Look for value in 2014” for details.