Tuesday, February 24, 2015

Freddie Mac: Hybrid ARM's are the most popular loan product!

Hybrid adjustable-rate mortgages continue to be the most popular ARM loan product offered by lenders and chosen by borrowers, according to the 31st Annual Adjustable-Rate Mortgage Survey of prime loan offerings from Freddie Mac. Here's an interesting read http://on.car.org/1uGXNqt

Friday, February 6, 2015

How To Win In A Competitive Real Estate Market

Do you want to be a successful buyer or seller in this competitive real estate market? We have often heard stories recently of someone who missed out on his dream home because of multiple bidding situation or stories of sellers where they accepted an offer but in the end the transaction fell through. Here are few suggestions to facilitate smooth transaction and avoid some common pitfalls.

For the Buyers:

Currently, all Bay Area home are selling with multiple offers. In addition to offering strong price, they can use some of these tactics to improve their chances of becoming a home owner.
1. Work with an agent you trust who has the skill to negotiate effectively and can address all your questions and concerns.
2. Find out what the sellers is looking for in addition to price. Is it rent back, is it faster close? To the extent, try to honor these desires in your offer.
3.Get yourself " Approved" not just pre- approved for a credible lender for more than the offer price. This will allow you to make a stronger offer by going non- contingent on loan.
4.Develop a " winning team" of both a realtor and lender. Realtor will get you in contract and lender will make sure you get the keys to your house!
5. Be motivated and Committed.
6. Have deposit money and down payment funds readily available. Review and sign all reports and disclosures and submit with your offer.

For the Sellers:

1. Credibility and reputation of the buyers agent.
2. A buyer who is represented by a skilled, trusted agent who writes a clean offer and can take you all the way to an effective close of escrow.
3.Check on buyer's motivation for purchasing the property.
4.Solid financial backing by a credible lender. A good listing agent can check with buyers lender by asking key questions to get an idea on buyers financial credibility.
5. Percentage of down payment to purchase the price. Is there enough room to cover an appraisal that may come at less than purchase price.
6. If the contract contains contingencies, are the contingency period as short as possible. Is there an appraisal contingency? How does the buyer plan to complete escrow if the appraisal price is less than the sale price?
7. The length of the escrow.
8. Fully signed and acknowledged Disclosure package.

As these suggestions illustrate , in a competitive real estate market its much more consider than just the offer price. You need a trusted and skilled Realtor. Call me for Free market consultation and services I offer to get you a winning outcome.