As a buyer, you may find yourself drifting on an ocean of financing options.  As lenders tighten their requirements, there are a few aspects of the loan application of which you should be aware before applying for a mortgage.

First, determine whether you are seeking “pre-qualification” or “pre-approval.”  What’s the difference?  Generally speaking, when you are pre-qualified, the lender reviews your information and hazards a “best guess” as to the size of loan for which you would qualify.

In the pre-approval process, however, the lender verifies everything on your application, and offers to approve a certain amount at a certain interest rate.  Either way, the final loan is only cleared upon receipt of an acceptable appraisal, title check, last-minute credit check, and other verifications.  Usually, a pre-approval puts you on stronger buying ground.

A critical aspect of your application is your credit score.  Excessive credit, like car loans and credit cards, can sometimes prove as unattractive to lenders as bad or no credit, so make sure that you have plenty of credit available before applying, and put off major purchases until after you’ve bought your home.

Finally, investigate all of your loan options, compare worst-case scenarios, and do your math.  If you need guidance, seek it from a local mortgage specialist or REALTOR® who is well versed in current market and lending conditions.

Call me if you need assistance with your real estate decisions.  If you prefer, email me at donkingsley@kingsleyrealestate.com.  I will be happy to share my knowledge with you at no cost or obligation.

There are many factors that affect how you’ll price your home when you’re ready to sell.  In spite of market conditions, interest rates, and so on, every transaction is unique.  So you should seek the assistance of a REALTOR® and prepare yourself and your home well in advance of placing the For Sale sign out front.

Quite often a home will have three different possible prices: the price the sellers want to net, the price the buyers would like to offer, and the final sales price agreed upon by both parties.  Your home’s ultimate value is determined by other local sale prices, which are often a product of supply and demand.

The asking price or the offered price is not the whole story, however.  While an offer of $200,000 doesn’t seem to appear as good as an offer of $210,000, pay close attention to the terms attached to that higher offer.  If the buyers also want you to offset closing costs and deduct for a decorating allowance, the “clean” offer of $200,000 might actually put more money in your pocket.

It’s wise to seek representation and assistance with pricing, marketing, negotiation and closing.  Put a REALTOR® with local experience to work for you.  Once armed with the facts relating to terms and conditions of local sales, you can move forward with confidence in your listing.

Call me if you need assistance with your real estate decisions.  If you prefer, email me at donkingsley@kingsleyrealestate.com.  I will be happy to share my knowledge with you at no cost or obligation.

What comes around goes around, and bad news for sellers has a flip side for buyers.  Those ready to make a purchase can take advantage of some great deals, including “REO” properties.  If you’re unfamiliar with that term, it simply stands for “Real Estate Owned.”

If a bank is forced to foreclose on a property, then the bank owns that real estate, making it “REO.”  Of course, banks don’t really want to own the home, because it negatively affects their financial status, and they have to pay for taxes, insurance and maintenance on the property.

To avoid losses, banks want to sell these holdings as quickly as possible, making many such properties a very attractive purchase.  Where do you begin if you’re interested in finding these investments?  Many REALTORS® already have relationships with the lenders, and should be able to point you in the right direction and provide both guidance and assistance in your search and purchase offer.

Once you’ve found a suitable property, however, you’ll probably still want to seek the counsel of an attorney who specializes in real estate transactions.  As is the case with most purchases, you’ll want to be absolutely certain that you’ll receive a clean, marketable and insurable title, with no ghosts in the closets.

Ask a trusted agent about the advantages of an REO today!

Call me if you need assistance with your real estate decisions.  If you prefer, email me at donkingsley@kingsleyrealestate.com.  I will be happy to share my knowledge with you at no cost or obligation.