Archive for March, 2009

Interest Rates Hit 30 -Year Low

Kathy Riggs March 29th, 2009

Because the national news media continues to broadcast gloom and doom, real estate professionals are excited when they see some good news they can pass along to buyers and sellers.
My previous post was the first in a short series focusing on the buyer’s side of the transaction, but sometimes a little good news is great for both sides of the real estate world.
And the good news is about interest rates. As of March 27 rates had dropped to 4.85, a 38-year low. Lower interest rates attract buyers and sellers definitely need buyers.
The first post in this series focused on the buyer’s need to get a pre-approval from a lender. Tough economic times have caused some credit card companies to lower customers’ credit limits, and that can translate into lower credit scores. If you think you may have fallen through the cracks, check with several lenders and ask if they have any new programs that may apply to you. Or ask your Realtor, many mortgage brokers keep in contact with Realtors so we will be aware of a buyer’s options.
Now that you have your financing arranged, it’s time to meet with your Realtor. Your Realtor will explain the types of agency, give you a sample copy of the Offer To Purchase and Contract and information about home inspections and real estate closings. Buyers should become familiar with these materials and question their Realtor about anything they don’t understand; but don’t let the paperwork overwhelm you. Your Realtor will guide you every step of the way. Finding that dream home should be fun and exciting!
When meeting with your Realtor, discuss any particular desires you have and be specific. The market has plenty of 3-bedroom, 2-bath homes – but do you prefer a dining room..is a fenced yard important…how close to work or school do you need to be? Also, your Realtor has shown many of the houses on the market and will be able to share some of the features of the various homes.
So, find your comfortable shoes and let’s start house hunting.

on the lighter side
…one real estate agent asked another if he passed the ethics test. “Of course,” he replied, “I cheated.”

SHAMELESS PLUG
email me at kriggs@kathyriggs.com and I’ll be happy to help you.

Pre-Approvals Benefit Buyers

Kathy Riggs March 22nd, 2009

Spring is officially here! The weather experts told us it arrived Friday night and we Realtors like to think it brought the spring selling season with it!
And of course there is no spring selling season without buyers. So my next few posts will focus on a real estate transaction from the buyer’s side.
How many times have you seen the ads from lending institutions about getting pre-approvals? Think they are just trying to get your business…well they probably are, but getting pre-approved is the first step a homebuyer should take – even before they look at houses. Maybe you are asking why you should see the bank before you begin looking at houses.
When you ask for a pre-approval the lender will ask questions about your income and your debts. Based on specific formulas, the loan officer can determine the maximum amount the bank can lend you. At this time you should ask questions about down payments, closing costs, interest rates and terms (the number of years required to repay your loan).
Now that you have your financing arranged it’s time to call a Realtor (preferably me!) and start looking at houses. When you know your pre-approval limit, you will not be wasting your time or risk big time disappointment looking at homes outside of your price range. Also, by getting your pre-approval you may learn you can afford more house than you thought!
After seeing the home you can’t live without, with the help of your Realtor you write your offer and the Realtor presents it to the seller or the seller’s listing agent. Sellers will smile more favorably on an offer that is accompanied by an approval letter from a bank.
Also, when you are home searching, chances are someone else will fall in love with the same house as you did. You’ll save valuable time by having obtained your pre-approval before you go house hunting.

on the lighter side
…did you hear about the homeowner that consolidated all his bills into one payment? Now he has just one bill that he doesn’t pay!

SHAMELESS PLUG
Read my earlier posts about the $8,000 tax credit and see all Kinston listings at www.kathyriggs.com

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