Buying Tools And Facts

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Home Buying Has Changed! TRADITIONAL FANNIE MAE FREDDIE MAC HUD HOME REO BANK-OWNED HOME

SHORT SALE ?????????

New Players – New Rules

Whether you are a first time home buyer, or buying your retirement home, the rules for home buying have changed! Here’s a summary of the players and the rules for the game!

First, you should identify the timeline you are working with. If you are purchasing a home in the next 90 days, you should find a real estate agent who can set you up with receiving regular print outs from the MLS (Multiple Listing Service) of ALL new offerings that meet your criteria so you can become familiar with prices, and inventory in the area you need.

Next, you should meet with a mortgage banker and determine what you need to do, if anything, to get your credit in order, your savings intact and your pre-approved to be able to submit and write an offer when you’ve found the “right” home for you!

Now let’s look at the different types of sellers and processes you may experience along the way!

TRADITIONALFANNIE MAE, FREDDIE MAC OR HUD HOMEREO or BANK-OWNED HOMESHORT SALE

As you will see in the following paragraphs, things sure have changed!

Andree B Hnatiuk – REMAX Masters Inc., 28628 Telegraph Rd, Flat Rock, MI 48134 Cell-313.737.2390, Office-734.783.0900, Fax-734.783.5555, [email protected]

TRADITIONAL

If you are purchasing a home the traditional way, buying from the seller directly, then you can write an offer, expect acceptance or a counter offer, and have an answer within a few days!

FANNIE MAE, FREDDIE MAC OR HUD HOME

If you are purchasing a home with the above processes, you pretty much have one chance to submit your offer. A Realtor will add your offer into the computer and wait and see if it is accepted or not. If your offer is accepted, you will have a limited amount of time to sign additional documents, disclosures and time lines and submit them for final approval.

REO or BANK-OWNED HOME

Purchasing a home with the above process is handled in a couple of different ways. Some lenders will accept and review all offers and ask for the highest and the best – which gives you a second chance to make a bid. Some lenders will accept the best bid and not do highest and best. That would require a second offer to be submitted, even if it is the same price, and if accepted, you would receive an entire packet of additional documents including disclosures and time lines that you must sign and submit for final acceptance.

Why You need a Real Estate Professional!

Buying a home requires a great deal of information and resources, especially if you want to find the right home for you.Hiring a real estate professional helps the entire process go smoothly and provides you with the most valuable resource you can have. As such, here are key areas where a real estate professional earns their commission:

FACT : YOU, the buyer do not pay anything for Real Estate services, no commission, no fee! Feel free to ask me for details

House HuntingMost buyers go to the Internet first when searching for a home. That’s great if you know where to look! A real estate professional will also provide exposure from other industry professionals and the public. It has been shown that many home purchases come about as a result of previous relations with a client and client referrals. It is also important that realtors provide enough exposure enabling the buyer to see all homes that are available for purchase based on the specifications the buyer provides at the beginning of the process .

SecurityBuyers must generally go through an agent to schedule a viewing of the home. This gives you a peace of mind knowing that the realtor is your liaison in providing a personal tour of the home.


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Why You need a Real Estate Professional!

NegotiationsYour real estate agent acts as an objective middle-person. They are perceived as unbiased professionals, and sellers agents often feel more comfortable negotiating with them. An agent will help with your initial agreement by writing a legally binding contract to have both parties sign. Then, guide you through the processes of appraisals, financing and home inspections - all necessary to complete the sale of a home.Monitoring, Renegotiating, Closing/SettlingThere are many steps involved between a sales agreement and the closing or settlement of a sale. An agent has many industry contacts who can be used every step of the way. Your agent will help you navigate through the steps and complete required paperwork. They ensure that as issues arise, problems get resolved and the intimidating amounts of paperwork get completed accurately.


Short Sales & ForeclosuresA "short sale" is a sale of real estate in which the sale proceeds fall short of the balance owed on theproperty's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, butthe lender decides that selling the property at a moderate loss is better than pressing the currentdebtor. Both parties consent to the short sale process, because it allows them to avoid foreclosure,which then involves hefty fees for the bank and poorer credit report outcomes for the borrower.A foreclosure is the legal process by which an owner's right to the property is terminated, usually dueto default. This typically involves a forced sale of the property at public auction, with the proceedsbeing applied to the mortgage debt.Foreclosures or short sales are indeed going to affect the market value of neighboring homes in oneway or another. Whenever a house sells in a neighborhood, the amount at which the house is sold isnoted and has an effect on general housing prices within the same locality. If your neighboring house is facing short sale or foreclosure, then the house sells for much less than it would have if it hadn't gone into foreclosure. Additionally, if that foreclosed house is similar to yours in size and attributes then this can depreciate the market value of your house.The same is true when people sell their homes for less than the homes are actually worth because they just want to get rid of mortgage loan. Every real estate transaction in your neighborhood has thepotential to bring up or bring down the market value of your home. Every real estate market isdifferent. Your real estate professional's main goal is to get you the best price in any market.


MY TOP PRIORITY IS YOU!

I welcome the opportunity to speak with you and answer any questions you might have to help purchase your new home!

Andree B Hnatiuk – REMAX Masters Inc., 28628 Telegraph Rd, Flat Rock, MI 48134Cell-313.737.2390, Office-734.783.0900, Fax-734.783.5555, [email protected]

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Buying Tools And Facts