The Top 3 Ways to Avoid Being Denied Your Mortgage

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Getting a pre-approval letter when you are planning to purchase a property or a home. Let’s talk about different ways on how to get your pre approval Letter from your Lender and ways to avoid being denied your mortgage application.

  1. Stable Job / Employment

In getting a mortgage or planning to buy a home, It is very crucial that you have your stable job or employment. Most of the Lenders will look on this part. Basically if you have stable job, then you have the higher possibility to get your pre approval letter. The other way around , If you don’t have your stable job, then most probably you will get a denied mortgage.

That is why I would suggest then, have a stable job or employment first before getting a mortgage.

  1. Have a Good Credit History

Having a Good Credit History is just like having good grades. Lenders will conduct a credit check report after receiving your requirements If you have managed your account, then that’s the time you can apply for a loan. To maintain a Good Credit History means paying your bills on time and doesn’t have any past due or outstanding balance on your loan or debts.

  1. Make Your Life A Debt – Free As Much As You Can

This is the root of all success and being financial stale will lead you to a debt free life.

Don’t be so clingy on Sale items in various malls and boutiques. Spend wisely and make you sure you can take care your bill.

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5 Best Components of a Good Offer Should Have

blog 2What is an offer? What documents are included in an offer? What are the things should be consider first in presenting an offer to the buyer?

On the latter part of this blog, you will determine what are the basic components of a good offer that the Seller is looking for.  An offer is a document that also serves a the binding sales contract of the both parties known in other areas as Purchase Agreement.

Buying a home or property is really challenging decision to make. You will surely put effort and time in choosing a best property and best deal when buying your dream home. In a real estate procedure or transaction, the buyer will present an offer to the seller.

There are five best components of an offer for it to be consider a good one or easy to accept – offer.

  1. An Offer With The Best Price

Price is one of the most important components of an offer. The Seller will surely entertain the offer from the buyer if it has a reasonable offer price that within the listing amount or could be higher depending on the listed property if it has multiple offers. Offer price should be based on the price value of the property itself. This can be done by hiring an appraiser or double checking the market value of the property based on its location.

  1. An offer with a Good Earnest Money Deposit

Earnest Money Deposit is the deposit given by a buyer to a seller to show that the buyer is opts to buy the property. Earnest money usually is refundable to homebuyers in the event a contingency of the sales contract cannot be met. A good EMD shows also good standing of the buyers decision to buy the property.

  1. An offer together with Pre approval Letter

An offer with a pre – approval letter from the lender signifies that the buyer has the capability to purchase the property or the home. It also serves as proof of good credit standing of the buyer in getting a property or a home. I f the seller or the sellers agent see that the buyer has already got a pre- approval from the lender; most likely it will be accepted by the seller.

  1. An Offer With Contingencies And Concessions

This part is particular in requirements that the buyer and the seller must agree on. These part states what are the things are included on the selling of the property such as appliances and other fixtures. Concessions are those special requests by the buyer to the seller.

  1. Closing and Expiration Date of an Offer

This is important part of a good offer. Wherein, the Seller look on this part. This determines the timeline of the whole transaction. Usually the shorter the closing period the most likely the seller is interested on the offer because this means that there is no waiting time on the part of the Seller.

 

4 BEST PRACTICES ON GETTING THE BEST DEAL ON A MORTGAGE

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What is mortgage in Real Estate Transaction? How it is important In getting your dream home? What are the factors and drivers should you consider on getting a mortgage for your dream home? Let us dissect these questions in the latter part of this blog.

A Mortgage  is a legal agreement that conveys the conditional right of ownership on an asset or property by its owner (the mortgagor) to a lender (the mortgagee) as security for a loan. The lender’s security interest is recorded in the register of title documents to make it public information, and is voided when the loan is repaid in full , according to Business Dictionary. Here is United State, getting a mortgage is one of the most common ways for US citizens be able to have their Dream home for their family.

That’s why I came up with 5 Best Practices on Getting the Best Deal on a Mortgage, the following are:

  1. All Lenders Will Present You The Best Of All The Best

When we say Best of All the Best, this means presenting an offer that shows lowest rates, fees and loan closing costs. Every Lender will pursue you up to the best of their skills to win you and get their mortgage deal. So if you are the borrower, you should be very careful with interest and rates in the long term. I would suggest that you should conduct a canvassing of various lenders (potential) and make a numeric table that includes all the costs and fees of each and every lender that offered you their services.

  1. Set An Appointment , Never Closed A Mortgage Deal Without Personal Appearance

Getting a mortgage for your dream home is the first process or thing that you should think about carefully. When you already have a list of potential lenders that you should think that are reliable. Then you should meet them personally .As much as possible, set an appointment to every lenders that you have on your list.

First and main reason to that is for you to know whether the lender is reliable or not. You should be very observer because in the long term , it will cause you a bad  result if your lender is not a reliable one, such as Default ,Foreclosure And Underwater.

  1. Manage to Negotiate With Your Chosen Lender.

If you have chosen your lender, do not hesitate to ask for a better rates and costs. You should express your ideas and do not be shy when negotiating with your Lender. Most of them are used to that kind of negotiation, it’s their business nature.

You can learn several things during your negotiation with your Lender. You should absorb everything and choose what to execute to your next loan or mortgage negotiation.

  1. Choose Lender that will help you getting a loan that fits on your financial status.

A good and reliable Lender or mortgage professional will help you know more about getting the best deal for a loan or mortgage. They will give to you some tips, pros and cons on getting a loan or mortgage. They will teach you how to handle mortgage without compromising your financial status.

For those who will get their very first mortgage application, Just follow these best practices and surely you will be able to get the BEST Mortgage Deal Ever.

4 Worst Things that FSBO is Doing

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FSBO stands for, For Sale By Owner. This is the term in Real Estate in the US used when a Home Owner selling their home without hiring a Listing Agent or Seller’s Agent. One of the main reason why they are selling their property without having an LA agent is that they are avoiding commission and other costs during the whole process of selling their property.

Here are the 5 WORST Things that FSBO are doing since then.

 

  1. Over pricing of the Property.

Most of FSBO do not ask for a Home Appraiser to reevaluate their home or property prior to selling. This one of the biggest mistake they are doing in selling a property. Most of potential buyers are opt to have a buyer’s agent when planning to buy a property whether   it will be for residential or an income property. Thus, when a buyer’s agent is researching a property, it is very important that the home has accurate value. This means that FSBO with overpricing tag of their home most likely to fail in selling their property as soon as they want.

  1. Do not have a Pre- sell Home Inspection

Pre – Sell home inspection is very important when you are planning to sell your property because when your property is open for a visit to potential buyer, and those buyers are aware with what to inspect or what to check when buying a home, you may tend to lose that potential buyer. If you were on the shoes of the buyer, you’ll definitely make an offer for a property that is in good shape ,  safe to live with and ready to move in . When they see that the property has a lot of repairs to do , they might think twice in buying your home.

  1. No exposure / No advertisements

This is the most common thing that FSBO forget to work with. Creating a filers, posting images on social media or MLS will definitely boost the chance of your property to sell immediately. In contrast, If you are decided to make an enormous banner or fliers or taking pictures and post it on various social media sites is way better and has the chance of the property to be sell in soonest time.

 

  1. Not following the Right Process of Selling a Property

In Real Estate business, they have the step by step procedure in selling a property. Where in, 1st the buyer search for a property though different portals or websites, 2nd the buyer will get pre approval letter with the bank, if loan or mortgage, 3rd will be finding a buyer’s agent to assist the buyer in the transaction from start to end.

In contrary, FSBO will more likely don’t know the right process of selling a property that there are some point that they have compromised their safety and rights when selling a property. This is the best time where in rough transaction will come up. This includes legalities and safety.

 

Valuation – Important factor in Buying or Selling a Property

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Home valuation has a different factors to consider with, namely Place of the property or Location of the property, History of the Property, Renovations or Upgrades, Age and Appearance of the property and Its Size and Lay Out.  Home value varies and changes after one of these factors changed.

  1. Place of the Property

The value of your home varies or depends on the location or place of the property itself. Homes or property in suburb is less expensive compare to homes or properties in downtown. Which more likely because of the life and cost of living are different from each other. For example, there are lots of establishments and transportation in downtown compare to suburb, mostly of the schools and universities are located in Downtown. So, if you are going to buy a property or sell a property you should be aware on this factor, the location of the property.

  1. History of the Property

 

This signifies the facts and events happened to the property, includes if the house was burnt, if there is criminal event happened , molds issue, and other related matters concerning the history of the property. This factor will greatly affects the value of the home or property, for example, if there were criminal records or crime happened in the past, definitely no one or most of the buyers are going to back out or cancelled the offer.

 

  1. Renovations and Upgrade

 

This factor will surely pull up the value of your home or property. When you upgrade or make some renovations on the property itself, invest money to it , you must  seek for home appraiser to reevaluate  your home. This factor is the most common driver of changes on the value of your property. And it is usually and will always be the reason of the value of your home to go up.

 

  1. Age and Appearance of the Property

           

All of the home appraisers base their evaluation on what year the property was built and its appearance. Mostly, old houses have a lot of repairs or damage that needs immediate concern and causing the value of the property go down. That is why home owners really opt to renovation now a days, not only for them to maximized the potential income or value of their property but specially their safety while residing or living in their home. Molds , Open electrical wiring, water damage , presence of asbestos and other fire hazards are the reasons why the age and appearance of the property really varies.

 

  1. Size and Layout of the Property

 

These two factors are merely one of the most important when the home appraisers estimating the value of the property. The Size obviously matters, the larger the area the expensive it can be. Meanwhile the Layout or the character of the home or property is also great factor of having a high value of a property. Layout also includes the concept of the home, exterior and interior.

 

Hope you can find these lists very helpful in guiding you and have the awareness if the property you are buying is too expensive or selling the property too affordable. Always remember to consult at least two to three home appraisers for you to have an accurate value of your property.

Futuristic Approach on How to Develop the Best Experience in Home Buying and Selling

 

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What is futuristic? And how are you going to adapt this word in developing the Best experience in Home Buying and Selling process.

As Mr. Gregory Yankelovich, a customer Experience IQ said that “Customers are no longer buying products and services – they are buying experiences delivered via the products and services “ .Thus mean that nowadays Customers and Consumers are opt to expect a great experience when buying  things that they really want.  Even with the smallest gestures, customer is observing you from head  to foot  and mostly want a perfect service.

Let me relate and connect futuristic word with Buying and Selling experience. In US, there is what you call MLS, which stands for Multiple Listing Services, where most of the properties that are for sale are listed there. It helps a lot in choosing the right HOME to purchase. MLS includes price, Property details and feature of the house or property.  It really ease the burden of finding the right home perfect for you and your family.

I can imagine that ten years from now will be so much different, MLS will be advance , that all the transaction are can be perform there. That ten years from now, no appearance needed when buying or selling a property, also no appearance needed when applying for a loan in the banks. All of the system will be high technology and promising. All documents are paperless; there will be no need for a physical sign because of advance security password. All of this may ease the burden of both parties, and will totally result for a total satisfaction because those appearances are taking so much of your time, why not instead of physical appearance we can have virtual processing of buying and selling a property.

Buyers and Sellers need and must meet their satisfaction when buying and selling their property. Well, yes indeed. If I were on the shoes of the buyer, I would like to be assisted in every concern that I have regarding in buying the property. For example, repairs, inspections and other contingencies that may need assistance from the seller itself. Meanwhile if I were on the shoes of the seller, I want a smooth transaction in selling my property. Which means no ifs and buts but a perfect and smooth process from start up to end.

There are also other ways in order for a buyer and seller have the best experience  in buying or selling a property. These are lenders should be updated in terms of  the borrowers credit standing, in order for him or her not to take so long to get a pre-approval letter and proceed in buying the property. Meanwhile for the seller’s side, a smooth process of dealing with the buyer will totally give him or her a peace in selling his or her property.

Technology now a days, is really in its fast evolution. It is not surprising if ten years from now all our documentation process will be as easy as 123.

Home Owners Association: It’s Benefits and Disadvantage

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Home Owners Association Fee (HOA) is the monthly fee in a specific residential community or organization which is intended for improving of their specific community such as the amenities, attraction of each house (must be in good shape), waste collecting and other related things that need to maintain.

There are benefits of having Home Owners Association Fees, its use and function.

  1. Appearance of Every Houses in the Community

Home Owners Association delegates or representative make sure that every house on the community is able to follow the standard of being attractive and has good appearance. No paints are removed or dirty, lawns and garden should be daily monitored and cut if possible or else they will charge you a penalty for that.

  1. Less Maintenance for the Home Owner

Home Owners Association includes a waste collection management and Snow removal on every house in the community which removed the burden to the Home Owners.

  1. Amenities

Home Owners Association usually offers amenities such as parks, pools and other recreational area for the Home Owners.

  1. Issues of Home Owners to each other (if there is)

Home Owners can make report directly to Home Owners Association if they have concern or unwanted issues with their neighbors such as midnight parties with loud music , Dogs that are continuously barking that created disharmonious sound (very loud and irritating), etc. Home Owners Association Representative will make action to whatever concerns or issues arising in your specific community.

On the contrary there is con or disadvantage of having a Home Owners Association Fee, it’s just that you will be accountable to pay for this monthly maintenance fee and this amount could be change or revise in some period of time. It may increase to hundreds or even a thousand.