Archive for the 'Buying' Category
Salt Lake Home Buyers TO Get Zero Down Loans
May 13th, 2009 Categories: Buying, Real Estate News
On Tuesday May 12th HUD Secretary Shaun Donovan announced that FHA is going to permit lenders to allow homeowners to use the $8,000 tax credit as a down payment.
Donovan’s remarks came in an address to several thousand Realtors® gathered this morning at The Real Estate Summit: Advancing the U.S. Economy, a special daylong session at the Realtors® Midyear Legislative Meetings & Trade Expo.
The way it will work is the 1st time home buyer will be able to borrow from the lender the $8,000 in the form of a bridge loan. Bridge loans usually have a little higher interest rate. But if you amend your tax return and get your money quickly it shouldn’t be that big of a deal.
The terms and guidelines have not been laid out yet, I recommend you fill out the amendment and apply for the loan now, so that when it hits you’re out of the gate first. This will put pressure on prices of entry level homes that seem to already be in a short supply in Salt Lake Housing Market. See article on market conditions in Salt Lake.
To get started call me now while rates are low. This is going to cause a surge of 1st time buyers entering the market and a rush of loan applications will cause a bump in rates and a slowdown of underwriting.
Call me Today at 801-694-4762 or email me at Rob@Aubrey.net
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The New First Time Homebuyer Form
February 25th, 2009 Categories: Buying
The New IRS First Time Homebuyer Tax Credit Forms Are In
There have been a lot of questions on the “NEW” first time homebuyer credit. Well here is the tax form for you to look through. It is six lines and then over two pages of instruction, you thought the money was free, ha. Download a copy of the “First-Time Homebuyer Credit” IRS form 5405
If you would like to buy a home and get your credit call me 801-694-4762
For those of you that have bought homes prior to 2009 and you are making your payments on time. The IRS has a pencil sharpener for you.
| Discussion: 1 Comment »
Buying a Salt Lake Short Sale
February 20th, 2009 Categories: Buying
Buying A Salt Lake Short Sale
I get buyers sending me listings from web sites that just seem to be a really good deal and based on the way it is listed it is a good deal. Let’s face it, I look good on paper. LOL
Short sales are not very complicated as much as they are a time consumer. Most buyers can’t or won’t hang in long enough to actually close on a short sale.
The first thing that needs to be done is that the seller has to complete a short sale or a pre-foreclosure package. It is essentially a new loan application with the addition of a tear stained hardship letter. What I have found is that sellers are not very motivated to complete all the steps it takes for several reasons, one is denial, the other is they have to involuntarily MOVE. I don’t know if you have ever moved before but it is not fun under good circumstances.
In order to get the bank to start working on a short sale you have a complete package and then you have to have an offer. The only way you are going to get an offer on a short sale listing is to list it at a very low price. Then there are multiple offers and the bank works it and then starts countering and the price starts rising to near retail. This process can take 2-3-4 even 6 months to complete. The only reason for a buyer to go through a short sale process is to get it well below retail. So if you not going to really get it well below retail and it could take 4 months and you may not actually get the property then is it worth it?
IMNSHO Absolutely not.
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Seller Paid Closing Cost Good or Bad?
February 15th, 2009 Categories: Buying
Advice for Salt Lake Home Buyers
Seller paid closing cost is it really good for the buyer? Let’s look at an alternative, increasing the interest rate and financing less after all rates are incredibly low.
Assumptions $200,000 Loan, interest rate is 5.25% and closing cost is $6,000.
To have the seller pay, you would have to increase the loan amount by $6,000
I say it is better to increase the rate, let the lender pay the closing cost and owe less money. Look at the table below and see for yourself.
$206,000 5.25% Payment $1,137.54
$200,000 5.75% Payment $1,167.15
I would rather have a payment that is $29 higher and owe $6,000 less. I know the argument of over 30 Years, but at $355.32 per year your breakeven point would be 16 years. The statistics say you will live there 7 years, if that were true that $6,000 would cost you $2,487.24 giving you a $3,512.76 savings.
Besides that, not asking for closing cost makes you appear as a stronger buyer and more appealing to a seller and could actually save you a little more money than just the closing cost. Seller’s aren’t just looking at the bottom line as important as it is, equally as important a buyer that can close.
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Spotting Opportunity
July 5th, 2008 Categories: Buying
SPOTTING OPPORTUNITY
IN TODAY’S MARKET
Why trading up makes sense
If home prices dropped by 5%, here’s what it
could look like if you decided to trade up.
The smaller loss at sale will be compensated by greater savings at
purchase, resulting in a significant net gain.
A BUYER’S MARKET IS A TRADING UP MARKET!
| Discussion: 2 Comments »
Salt Lake MLS Map Searching
July 4th, 2008 Categories: Buying
Salt Lake MLS Map Searching
Finally the long anticipated arrival of Salt Lake City Map Searching.
This is something we have been working on getting for quite some time.
Let’s examine what Salt Lake City Map Searching really is.
The landing page will be a map of most of Salt Lake County and will show you the amount of properties that are for sale in that screen.
In the upper left corner you have map control options Zoom or Move. When you select Zoom you can draw a box and the map will display the available properties in the new screen. The second option is move, when you select this option you can use the hand to move the map around and get new results. Naturally you have the zoom in and out selections on the left side of the map.
Also in the upper right corner of the amp you can change the view to Street, Hybrid or Aerial View.
Now below the map is the ability to refine the property search. You can choose property type such as Single Family, Condo… You have the option to select more than one. By not selecting any, you have selected all by default. Then you can move over to price range where you have minimum and maximum. Then other choices such as bedroom and bathroom counts, style, year built range and more …
Once you have refined your search you can Go to Search Results to view your choice in a quick report or can save your search. When you select save this search you can create an account, this will take you to a registry window.
Once you are registered, you have the option to receive an email of NEW OR UPDATED listings.
| Discussion: 1 Comment »
The Tug of War Over The Buyer’s Agent Commission
March 12th, 2008 Categories: Buying
Unrepresented Buyer Wants Half The The Commission
I came across two different buyers recently and I asked if they were working with an agent. Both said they would represent themselves and they would negotiate the buyer’s agent commission.
For the sake of this discussion the seller and the listing broker negotiate a contract and the seller is to pay the listing broker a commission. The listing broker is offering a Buyer’s Agent Commission (BAC)
A Buyer comes along and says I don’t have an agent they want the commission.
One buyer asked, “I assume there are two commissions.”
There is actually only one commission paid by the seller. The listing broker can offer compensation to a broker for any amount they see fit. They can offer no compensation and expect the buyer’s agent to collect a commission from the buyer.
So if there is no agent representing the buyer, what should happen to the commission?
Should the unrepresented buyer be entitled to the commission?
What about the seller? After all they are the one paying the commission, shouldn’t they be entitled to it?
What about the listing agent shouldn’t they be entitled to it?
| Discussion: 1 Comment »
The Case Against Waiting To Buy
March 11th, 2008 Categories: Buying
I found this awesome little slide show.
It compares interest rates going up versus properties going down in value.
| Discussion: 3 Comments »
Mortgage Rates In Salt Lake City
March 8th, 2008 Categories: Buying, Mortgage
Conforming mortgage rates mentioned below are considered with loan amounts up to $729,750 for a single family residence and is owner occupied. It is with proving your income and a “full document borrower”.
The rates quoted are based on a purchase price of $200,000 on a 30-day lock. On these conforming loans, there are no prepayment penalties involved.
Conventional and Government Loan Interest Rates
|
Program |
Rate |
APR |
| 95% | 6.25 | 7.43 |
| 100% With Mort Insurance | 6.38 | 7.74 |
| 100% No Mort Insurance | 7.00 | 7.15 |
| My Community 100% | 6.88 | 7.76 |
| VA 100% | 6.00 | 6.19 |
| FHA 97% | 6.00 | 7.08 |
If you would like any additional scenarios done, please call for that information at 801-747-1233 and ask for Cindee or email to Cindee@CindeeStone.com
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Investing or Loan Fraud
March 2nd, 2008 Categories: Buying, Investing, Real Estate News
You Notice He Said Co-Conspirator Not Victim
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