Posts Tagged ‘home sales’

About the Author:  Chuck Walden (NMLS #148160) is a loan officer with GMAC Mortgage.  Email Chuck at chuck.walden@gmacm.com or call 678-725-8076. Website is www.ChuckWalden.com

The market is better.  Rates are low.  Home prices are rising.  BUT what if there was more?  Hopefully, I can answer some of those questions and give you a way to move more property, make more money, and do an even better job for your customer.

What if a lender offered to pay the majority of the closing costs?  Would this help your negotiations?  Of course it would.  What if closing costs and seller concessions weren’t an issue?  What if you could throw out the standard 3% seller concessions because it wouldn’t even matter?  Talk about a negotiating tool.  Wouldn’t it be awesome if your buyer could come to the table with just their down payment.  Do you think they would remember that and refer more business to you?

What if a lender guaranteed you would close on time?  I know you’ve heard that before.  BUT, what if they offered to pay your buyer $500 if they didn’t close on time?  Do you know of any lenders that want to pay money to a buyer.  I don’t.  Talk about motivation.

What if a lender communicated with you constantly so you never had to “wonder” what was going on with the transaction?  Have you ever had to pick up the phone and ask?  My bet would be yes.  Wouldn’t it be great if you knew when the file came out of underwriting?  Or, that the appraisal and title are in and there are no issues?  Even if there are issues, you want to know.  You need to know.

What if you felt like you had control over every transaction?  You knew your buyers or sellers were in good hands.  You knew that they were getting the best deal out there.  You knew that you were going to close on time. 

Maybe this sounds like a perfect world to you and there’s no way this could ever happen.  I challenge you to find out.  My job is to make the purchase of a home as stress free as possible.  With some of the lowest rates in the industry, guaranteed to close on time, most of the closing costs paid by the lender, and communication throughout the process……Is there anything else you, your buyer, or your seller needs?  If there is, I would love to hear about it.

If you’re interested, I would love to talk with you to show you how this is a reality.  These tools will no doubt help you to grow your business, receive more referrals, and make more money.  Feel free to email me at chuck.walden@gmacm.com or call me at 678-725-8076 anytime to discuss how I can do this for you.  It’s new to your market so be the first to take advantage and don’t delay.

Happy Halloween

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Is now a scary time to sell your home? (Excuse the pun and Happy Halloween).  No it’s not and let me tell you why.  Now is the time that you will get the most face time with potential buyers.  I held 18 open houses during the month of October and the number of open house attendees has dramatically improved over this time last year.  Also, as you know, the number of potential buyers searching for homes online is increasing every day.  What if we were in an increasing interest rate environment?  Would fewer people qualify?  Would more people be looking to buy before rates get too high?  We are….yes….and YES.   Due to the daily changing environment of the mortgage world, now is the best time to sell.  With increasing interest rates, fewer people qualify and the ones that can afford it may get “scared” away with a much higher payment.

It’s almost impossible to time the market.  All you can do is deal with the facts.  Whether you are looking to buy or sell, I would say that now is the time.  There are too many market indicators pointing us in that direction.

For decades, grandparents have passed on the knowledge that the best investment you can make is homeownership.  You will have a fixed payment for 20 to 30 years.  At the end of that term, you can live without a house payment. If you need the money, sell your home and rent.

Even though the housing market started to crash in 2006, I believe that our grandparents were right.  Let me give you some examples.  Home prices have gained 42% since 2000.  The market has lost 4%.  According to Trulia, it is cheaper to purchase a new home in 72% of America’s cities than to rent.  In case you haven’t heard, interest rates are at all times lows.  With low rates and low values, you are getting more bang for your buck and keep dollarsin your pocket.  One thing is sure.  Rates and values will start to rise.

I wanted to talk about this today because I know a lot of people are on the fence and are trying to time the market.  Now is the time.  Don’t hesitate … make a decision.  Homeownership is an American dream that we shouldn’t take for granted.  But, just like our grandparents once told us, it is the best investment that you can make.

I cannot even begin to tell you how many times I have heard the phrase “I didn’t have to do that the last time”.  The market has changed.  The economy has changed.  Laws of changed.  Verifications have changed.  TILA has changed. Documentation has changed, and so on.  If you are purchasing a home in today’s climate you need to be organized and prepared.  It is in no way a reflection on you, it is a reflection on the market.  This is not only the case for a Georgia mortgage, it is the case nationwide.  You need to be prepared to provide your loan officer with requested documentation as soon as possible.  Do not delay!  Every second counts these days.  The efficiency of closing will depend on both parties.

You can be better prepared by understanding what will be required.   An underwriter will be responsible for approving or denying your loan.  He or she will verify all of the personal and financial information that you provide in order to issue a confident decision.  The more precise your information is, the easier the process will go.  For example, where is the down payment for the purchase of your home coming from?  Is it in a bank account?  A retirement account?  A gift?  Each of these items requires different documentation. 

1)  It is always a good idea to provide three months of your bank statements to your loan officer.  These statements need to be the three most recent and all pages even if blank. 

2)  You will need to provide two years of personal tax returns.  These days, all lenders are verifying tax returns with the IRS in order to insure they are accurate and have been filed.

3)  A copy of your driver’s license. 

4)  Two years W-2’s.  Yes, you have to provide W-2’s even though your are supplying tax returns.  If you are self employed, then corporate information will be required, such as company tax returns and year to date financials.

5)  Pay stubs covering the last three months.

6)  The sales contract which is fully executed by all parties.

7)  Divorce decree, if applicable

8)  Lease on other property owned

Yes, this is a lot of information.  However, I would highly suggest using someone who you trust to walk you through the process.  It can be as easy or as hard as you and your loan officer make it.  The process requires asking the right questions at the start so it will be smooth sailing at the end.

Buying a new home can be a very stressful time.  Please do your homework, ask your friends and family for referrals, and use a qualified loan officer that will hold your hand. 

If you have any questions or concerns please don’t hesitate to call.  I will gladly walk you through the process.

Existing Home Sales released yesterday, which showed a drop of almost 17% in December, far worse than expected. Inventories were up, although home prices rose slightly. For 2009 the median house price is down by 12.4%, worse than the 9% decline in 2008 and the worst performance on record.

And the hits just keep coming….