Fannie Mae is implementing a new guideline effective 6/1/2010 which requires banks to pull an ADDITIONAL credit report on borrowers just prior to closing.
What this means: Potentially if a borrower's middle credit score drops by just 1 point the file could be send back to underwriting and delay the closing for up to one week. In the worst case, a borrower's credit score could drop below the minimum requirement and cause the file to be denied or reduce the score below a cut off point for a particular interest rate making the rate INCREASE at the last minute.
Solution: Put ALL credit cards in a safety deposit box and DO NOT use them until after closing. In addition, keep away from places that may INQUIRE into a borrower's credit (I.e furniture and home improvement store and worst of all car dealers). With all the new guidelines from banks, borrowing money is getting increasing more difficult and adhering to the bank's rules is imperative.
Provide by: Jim Monninger, First Trust Mortgage, Jim@FirstTrustMortgage.biz
Friday, May 28, 2010
Wednesday, May 26, 2010
Century 21 Hansen Consolidates Ft. Lauderdale Offices: Kirk Nicklas Moves Location
As of May 24, 2010, Century 21 Hansen merged their Commercial Blvd. and Wilton Manors offices into a larger space that will provide 7-day service to buyers, sellers and cooperating realtors in the Ft. Lauderdale area. This move was made in an effort to streamline the organization, as well as expand the availability and diversity of talent. Kirk Nicklas will move from the Wilton Manors location to the new location. His new address is 3010 E. Commercial Blvd., Ft. Lauderdale, FL 33306. His cell number will remain the same: 954.547.3146. Please take a moment to correct your records. Thank you for your business.
Thursday, May 13, 2010
How to Determine the Price of Your Home
Why is it that some homes sit on the market for a year while others sell like hot cakes? Frustrated sellers will blame a bad market, while a good real estate professional will tell you that many times, a slow sale is often attributed to the listing price.
If a home is overpriced, buyers will stay away. But, if the price is competitive with similar homes in the area and “shows” better than the competition, it will have a better chance of being sold quickly.
The secret is perfecting a technique that’s as American as apple pie: comparative shopping.
Although comparing houses with different styles, square-footages and locations is challenging, real estate professionals still feel it’s one of the best methods to use when determining a home’s market value.
A responsible real estate agent will effectively evaluate a home’s worth through a process known as Comparative Marketing Analysis (CMA). Taking a look at assets, such as a swimming pool, bigger than normal living spaces, a fantastic view, adjacent city parks and other attractions, the agent will begin to compare your home with similar properties, called “comparables” that have sold in the area within the last six months. Typically, the agent is able to recommend a realistic price range that will ensure you top dollar.
However, factors such as the amount of time needed to sell your home can alter the agent’s price recommendation dramatically.
Assuming a seller has sufficient time to market the home, here are a few small steps a seller and real estate agent can take to finding the right price for your property.
The best comparisons can be made with similar homes that have been sold within the last 45 days as opposed to the standard six months. Any longer and other factors, such as the economy, could cloud your view of how much your home is really worth.
A good rule of thumb before setting a price is to make 20 comparisons of comparable properties within a neighborhood or within a one-mile radius of your house. Once complete you can feel comfortable that the price you’ve picked is a good gauge of the home’s worth and won’t discourage qualified buyers.
Being open and honest about what you see as the home’s greatest strengths and biggest weaknesses will also help an agent get a better feel for how to best evaluate (or assess) and market your home. Think of your home as if you were the buyer. If your home is listed at the right price, you’re well on your way to a speedy and fruitful sale.
If a home is overpriced, buyers will stay away. But, if the price is competitive with similar homes in the area and “shows” better than the competition, it will have a better chance of being sold quickly.
The secret is perfecting a technique that’s as American as apple pie: comparative shopping.
Although comparing houses with different styles, square-footages and locations is challenging, real estate professionals still feel it’s one of the best methods to use when determining a home’s market value.
A responsible real estate agent will effectively evaluate a home’s worth through a process known as Comparative Marketing Analysis (CMA). Taking a look at assets, such as a swimming pool, bigger than normal living spaces, a fantastic view, adjacent city parks and other attractions, the agent will begin to compare your home with similar properties, called “comparables” that have sold in the area within the last six months. Typically, the agent is able to recommend a realistic price range that will ensure you top dollar.
However, factors such as the amount of time needed to sell your home can alter the agent’s price recommendation dramatically.
Assuming a seller has sufficient time to market the home, here are a few small steps a seller and real estate agent can take to finding the right price for your property.
The best comparisons can be made with similar homes that have been sold within the last 45 days as opposed to the standard six months. Any longer and other factors, such as the economy, could cloud your view of how much your home is really worth.
A good rule of thumb before setting a price is to make 20 comparisons of comparable properties within a neighborhood or within a one-mile radius of your house. Once complete you can feel comfortable that the price you’ve picked is a good gauge of the home’s worth and won’t discourage qualified buyers.
Being open and honest about what you see as the home’s greatest strengths and biggest weaknesses will also help an agent get a better feel for how to best evaluate (or assess) and market your home. Think of your home as if you were the buyer. If your home is listed at the right price, you’re well on your way to a speedy and fruitful sale.
Monday, May 10, 2010
Pending Home Sales On An Upswing
Pending home sales increased in March, affirming that a surge of home sales is unfolding for the spring home buying season, according to the National Association of Realtors.
NAR’s Pending Home Sales Index rose 5.3% in February, and is 21.1% above March 2009. This follows an 8.3% increase in February. The PHSI measures real estate deals for which a contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
NAR chief economist Lawrence Yun said favorable affordability conditions have been working with the tax credit. “Clearly the home buyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” he said. “Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing.”
Regional Results
The PHSI in the Northeast declined 3.3% March but remains 27.2% higher than March 2009. In the Midwest, the index increased 1.2% and is 18.5% above a year ago. Pending home sales in the South jumped 12.7%, which is 28.3% higher than March 2009. In the West, the index rose 1.9% and is 8.8% above a year ago.
Source: NAR
NAR’s Pending Home Sales Index rose 5.3% in February, and is 21.1% above March 2009. This follows an 8.3% increase in February. The PHSI measures real estate deals for which a contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
NAR chief economist Lawrence Yun said favorable affordability conditions have been working with the tax credit. “Clearly the home buyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” he said. “Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing.”
Regional Results
The PHSI in the Northeast declined 3.3% March but remains 27.2% higher than March 2009. In the Midwest, the index increased 1.2% and is 18.5% above a year ago. Pending home sales in the South jumped 12.7%, which is 28.3% higher than March 2009. In the West, the index rose 1.9% and is 8.8% above a year ago.
Source: NAR
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