Posts tagged ‘mortgage’

What kind of Realtors to Avoid

Finding a Realtor can be a difficult task. There are many to choose from and they all appear eager to help you. But how do you know which Realtor will best serve your interests best?

When considering the purchase of a home today, there are so many to choose from – but how do you narrow your choices to only 10 or fewer? It’s called the process of elimination, and it’s wise to use the same process to find the best Realtor.

Let’s take a look at how you can narrow your search for a Realtor by finding out what kind of Realtors to avoid.

1. Part-time Realtors – Part-time Realtors will guarantee part-time attention. They don’t work real estate most of the day and have limited availability. If you need answers right away, you will have to wait to get them. Part-time Realtors can hold up the real estate process for you; sometimes this could mean losing the buyer of your house or losing your dream home to someone else. On the other hand, a full-time Realtor can search homes for you, network your properties, preview homes for you and much more throughout the day. A full-time Realtor has the time to attend real estate classes and further/update his or her education to better serve clients’ needs.

2. Not actively involved with Real Estate – An agent’s number of years of experience in the Real Estate field do not have much to do with his or her involvement with the current real estate market. Some agents may have served decades in the real estate business but are busy with other work or hobbies and not sold any homes in the last year or longer. You should look for someone who is vigorously pursuing listings and buyers in a tough market or currently working on real estate deals. Such Realtors are aware of what’s really taking place in the current real estate market and of changes affecting the business.

3. Does not put your interests first – A great Realtor will always look out for your best interests, whether you’re buying or selling a home. Find a Realtor who has the time for you. Most discount Realtors deal with a lot of homes and will not give personal attention to you. Find out how many listings and buyers the Realtor has currently and how often the Realtor will communicate with you. Ask for references or testimonials from previous clients.

4. Agent or Realtor? – There is a distinction between agents and Realtors. A Realtor is a member of the National Association of Realtors (NAR), the state board and the local board. Realtors pay annual dues to all of these boards and are accountable to a high degree of ethical standards, while agents are not. Realtors benefit from continuing education, networking, and more as a result of their membership status.

5. Realtor and Mortgage Consultant All in One – Although it may seem convenient to have one person act as both Realtor and loan consultant at the same time, that can eliminate checks and balances between processing your loan and finding you a home. It opens a window for dishonest acts, which could result in the buyer not getting the best house or the best loan that could come with the home. A Realtor can review and question a mortgage consultant on any unnecessary fees or overcharges in the Good Faith Estimate (GFE) and the HUD settlement. A mortgage consultant also serving as your Realtor will very likely not be able to provide such an unbiased review.

When looking for a Realtor to assist you with the biggest investment of your life, find someone who works in real estate full-time, cares about you and is passionate about helping people. You know where to reach me when it’s time to buy or sell real estate.

January 25, 2009 at 6:39 am Leave a comment

Buying Another Home Before Foreclosure – Can it Happen?

I received a call from a homeowner who wanted to keep his house, if he could get the bank to modify his loan. During the course of our conversation, he asked if it would be okay for him to buy another home at a much better price, while his credit is still good, and prior to being foreclosed on.

Let’s take a look at what he would need to do to qualify for both loans.

Aside from good credit, our caller has to prove that he has enough income to pay for two mortgages (the old house and the new house). He also has to put down at least a 20 percent deposit in order to buy a second home as an investment.

I have heard that some people who have been foreclosed on are using a family member or friend’s good credit and income to purchase a new home. If this is so, that family member or friend will take ultimate responsibility for paying the loan and his or her credit is in jeopardy if the true homeowner defaults on payments.

Before getting yourself into any of these housing transition strategies, consult a reputable and honest lender. What you don’t know may bite you later on and may cost you a lot of money, if you are found guilty of mortgage fraud.

The best advice I can give anyone is to live within your means. If you are looking to buy another home someday, now is the time to increase your income or spend less and save more money for your future down payment. The sooner you build up your reserves, the better position you will be in to take advantage of the incredible buys in today’s real estate market.

October 24, 2008 at 11:21 pm Leave a comment