The Twelve Most Common Connecticut Homebuyer FAQS

Are you ready to buy a home, and have a few questions? It doesn't mean that you are naive if you have questions about the home buying  process and experience, and it doesn't matter if you have bought a home before or not. Conditions change, parameters change and the economy changes. There are many questions about the home buying process that are very common  for first time buyers to ask,  as well as anyone who has ever bought a home before.

How long does it take to buy a home?

You can expect the process to take anywhere from 45-60 days on average from the day you negotiate your home purchase. The time involved has mostly to due with fulfilling various contingencies and obtaining a mortgage.

How much should I spend for a house? How much can I afford?

The answer to this question is directly correlated to your income, your debt, and your liquid assets. You may have heard a few rules of thumb, such as purchasing a home between 1.5 and 2.5 times your annual income,  Other "rules of thumb"  say that you should spend roughly one quarter of your monthly income on a mortgage.

In general, your monthly prinicpal interest, taxes and insurance payment should not exceed 28 to 29 percent of your monthly gross income. Your total debt payments (car payments, credit card payments, etc. plus the monthly mortgage amount) cannot exceed approximately 36%-41% of your gross monthly income. The calculations can differ depending on your credit score, and the amount of time the current debt has to be satisfied  It's best to get initially pre-qualified from your real estate agent and ultimately through a lender.

What's the minimum downpayment that I need to buy a house?

Government backed loans are  available with as little as a three and one half percent deposit.  As a note, there are income and price parameters that must be adhered to within your area.

Should I buy a foreclosed home?

You can certainly save a lot of money on purchasing a repossessed home,  just be ready for the length of time it takes to come to an agreement with the bank, the additional paperwork necessary, and the deferred maintenance that will most likely need to be addressed at that particular property

How many houses should I look at before I buy?

 You can look at one, you can look at one hundred. The best thing for you to do is to have a good idea as to what your wants and needs are. When you see a home that "speaks" to you, whether it's the first home, or the tenth home, listen to what your heart tells you. Further, if your agent asks you enough questions, you may only need to see less than a dozen or so homes before you very comfortably find "the one".

How much should I offer for a house?

There is no simple answer to that question, since each property truly stands on its own, and  has its own unique set of circumstances.  Just as a seller obtains a market  analysis on a home, you should also receive one for the home that you want to buy. The analysis will help you decide what to offer, based upon list price to sales price ratios and comparable sales.

How do I know if I am spending too much for the house that I want to buy?

A market analysis  completed by your agent will tell you how much the home is worth, but ultimately it is worth what you are willing to pay, and what the bank is willing to lend you if you are getting financing. If the appraisal as commissioned by the bank does not equal your agreed upon price with the seller, the bank will notify you and you can either renegotiate or walk away from that house. It's a wonderful third party check on value.

How do I know if I am getting a good deal on a mortgage?

You must compare loan packages. There is just no way around it. Shop for rates, but do not give out your social security number to various lending institutions, as it will lower your credit score and raise your interest rate. Obtain your score from one  lender and use that  number to shop around. Make sure you add up all the fees  to compare apples to apples when you shop.

Do I really need to use an Agent to buy a house?

I would highly recommend it!  Buyer Agency contracts are generally  written with the proviso that the agent will obtain their fee from the seller. In that case, there is no cost to you to have an expert and advocate on your side, who is bound by law to hold a fiduciary responsibility to represent your best interests . 

Should I sell my current home first?

Although this will differ for some homeowners for  various reasons, generally speaking you should get your home under deposit first,  in either a buyers market or a sellers market.

Do I really need a building inspector?

YES! Unequivocally yes.  A home purchase tends to be emotional, and you may unconsciously overlook issues  even if you are very well versed and knowledgeable about homes, their components, and construction.

How much will my closing costs be?

Figure your closing costs to top out at about four percent of the mortgage amount, and we can work on shaving that number down depending on whhat time of year you close, what day of the month that you close, and what type of mortgage you obtain.

Just one closing thought (pardon the pun)  If you get the jitters the night that you put your offer in on your house, try and relax. It's absolutely normal.  It doesn't mean that you shouldn't buy that particular house. It's a big decision and having a  little anxiety as to whether you have done the right thing, or  whether or not the bank will approve your loan is quite normal- just try and relax.

If it makes you feel any better, I have been in real estate for 27 years, and every time I purchase a home I even get a little anxious. You would think that helping buyers for this amount of time would make me immune to that. It doesn't.  So yes, I've been there. I understand how you feel. Get a good nights rest and it will be okay, I assure you. If you happen to be one of my future clients,  remember-I am always there for you.

When you are ready to buy a home, contact me. I'm there start to finish ....and beyond.

If you have a question about buying or selling Real Estate in Fairfield County, and are in need of representation, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

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Basic Waterproofing for Your Connecticut Basement

  

Basements are typically the area of a structure most at risk for water damage because they are located below grade and surrounded by soil.  Soil releases water it has absorbed during rain or when snow melts, and the water can end up in the basement through leaks or cracks.  Water can even migrate through solid concrete walls via capillary action, which is a phenomenon whereby liquid spontaneously rises in a narrow space, such as a thin tube, or via porous materials.  Wet basements can cause problems that include peeling paint, toxic mold contamination, building rot, foundation collapse, and termite damage.  Even interior air quality can be affected if naturally occurring gasses released by the soil are being transmitted into the basement. 

Properly waterproofing a basement will lessen the risk of damage caused by moisture or water.  Homeowners will want to be aware of what they can do to keep their basements dry and safe from damage.  Inspectors can also benefit from being aware of these basic strategies for preventing leaks and floods.

Prevent water entry by diverting it away from the foundation.

Preventing water from entering the basement by ensuring it is diverted away from the foundation is of primary concern.  Poor roof drainage and surface runoff due to gutter defects and improper site grading may be the most common causes of wet basements.  Addressing these issues will go a long way toward ensuring that water does not penetrate the basement.

Here are some measures to divert water away from the foundation:

 

• Install and maintain gutters and downspouts so that they route all rainwater and snow melt far enough away from the foundation of the building to ensure that pooling does not occur near the walls of the structure.  At least 10 feet from the building is best, and at the point where water leaves the downspout, it should be able to flow freely away from the foundation instead of back toward it, and should not be collecting in pools.
  
  
• The finish grade should be sloped away from the building for 10 to 15 feet.  Low spots that may lead to water pooling should be evened out to prevent the possibility of standing water near the foundation.
  
  
• Shallow ditches called swales should be used in conditions where one or more sides of the building face an upward slope.  A swale should slope away from the building for 10 to 15 feet, at which point it can empty into another swale that directs water around to the downhill-side of the building, leading it away from the foundation.

Repair all cracks and holes.

 

If leaks or seepage is occurring in the basement's interior, water and moisture are most likely entering through small cracks or holes.  The cracks or holes could be the result of several things.  Poor workmanship during the original build may be making itself apparent in the form of cracks or holes.  Water pressure from the outside may be building up, forcing water through walls.  The house may have settled, causing cracks in the floor or walls.  Repairing all cracks and small holes will help prevent leaks and floods.

 

Here are some steps to take if you suspect that water is entering the basement through cracks or holes:

 

• Identify areas where water may be entering through cracks or holes by checking for moisture, leaking or discoloration.  Every square inch of the basement should be examined, especially in cases where leaking or flooding has not been obvious, but moisture buildup is readily apparent.
  
  
• A mixture of epoxy and latex cement can be used to fill small hairline cracks and holes.  This is a waterproof formula that can help ensure that moisture and water do not penetrate basement walls.  It is effective primarily for very small cracks and holes.
  
  
• Any cracks larger than about 1/8-inch should be filled with mortar made from one part cement and two parts fine sand, with just enough water to make a fairly stiff mortar.  It should be pressed firmly into all parts of the larger cracks and holes to be sure that no air bubbles or pockets remain.  As long as water is not being forced through basement walls due to outside pressure, the application of mortar with a standard trowel will be sufficient if special care is taken to fill all cracks completely.
  
  
• If water is being forced through by outside pressure, a slightly different method of patching with mortar can be used.  Surface areas of walls or floors with cracks should first be chiseled out a bit at the mouth of the crack and all along its length.  Using a chipping chisel and hammer or a cold chisel, cut a dovetail groove along the mouth of each crack to be filled, and then apply the mortar thoroughly.  The dovetail groove, once filled, should be strong enough to resist the force of pressure that was pushing water through the crack.

Apply sodium-silicate sealant to the walls and floor.

Once all runoff has been thoroughly diverted away from the foundation, and all cracks and holes have been repaired and no leaking is occurring, a waterproof sealant can be applied as a final measure. 

Sodium silicate is a water-based mixture that will actually penetrate the substrate by up to 4 inches.  Concrete, concrete block and masonry have lime as a natural component of their composition, which reacts with the sodium silicate to produce a solid, crystalline structure which fills in all the microscopic cracks, holes and pores of the substrate.  No water vapor or gas will be able penetrate via capillary action because the concrete and masonry have now become harder and denser from the sodium silicate. 

 

Here are some steps and tips for its application:

• Special care should be taken when applying sodium silicate.  It is an alkaline substance and, as such, can burn skin and eyes if it comes into contact with them.  Inhalation can also cause irritation to the respiratory tract.
  
  
• Sodium silicate must be applied only to bare concrete, concrete block or masonry that has been cleaned thoroughly and is free of any dirt, oil, adhesives, paint and grease.  This will ensure that it penetrates the substrate properly and fills in all microscopic cracks.  It can be applied using a garden sprayer, roller or brush to a surface that has first been lightly dampened with a mop or brush.  Apply two to three coats to the concrete, waiting 10 to 20 minutes between each application.  Concrete block and masonry will take three to four coats, with the same 10 to 20 minutes between applications.  Any excess should then be wiped away.  Sodium silicate should not be over-applied or it will not be completely absorbed by the substrate, leaving a white residue.
  
  
• Paint can then be applied without fear of water vapor getting trapped between the paint and the wall, which could eventually cause blistering and peeling.  Adhesives for tile or floor covering can also be used more effectively, once the substrate has been sealed.

Diverting water away from foundations so that it does not collect outside basement walls and floors is a key element in preventing flooding and water damage.  Ensuring that any water that does end up near basement exteriors cannot enter through holes or cracks is also important, and sealing with a waterproof compound will help prevent water vapor or gas from penetrating, as well.  By following these procedures, the risk of water-related issues in basement interiors can be greatly reduced, protecting the building from damage such as foundation rotting, mold growth, and peeling paint, as well as improving the interior air quality by blocking the transmission of gasses from the soil outside. 

by Nick Gromico and Ethan Ward

Nick Gromicko, FOUNDER. http://www.nachi.org
International Association of Certified Home Inspectors (InterNACHI) is the world's most elite, non-profit inspection association.
President, ComInspect, www.cominspect.com
Director, Master Inspector Certification Board, www.certifiedmasterinspector.org
Author, 15 books and Co-Host of  http://www.NACHI.TV

 

Connecticut Mortgage Rates and Financing Update November 18, 2011

Mortgage Modification Scam Alert-  Avoid any companies that want to charge you a fee in exchange for lowering your mortgage through the TARP or Home Affordable Modification Program (HAMP).  There is no consumer fee to apply for these programs.  

The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) has announced that it has shut down 85 alleged on-line loan modification scams promoted through Web banners and other Web ads.
 
The New and Improved HARP programs - GSEs Announce Guidelines for Compliance With HARP Phase II - the highlights are:

* Lenders are expected to start originating these loans 12/1/2011 - and the program has been extended to 12/2013.
 
* Counts of mortgages with the bureaus for HARP Phase II criteria suppressed against the standard criteria pre-HARP II and more than 27 million untouched homeowners would be eligible. These changes are certainly a step in the right direction, and provided that rates remain low, should allow many homeowners to refinance and save a considerable amount of money.

* The elimination of certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers - if you refinance from a 30 year into a 25 year it will cost you less money to refinance.

* The elimination of the need for a new property appraisal where there is a reliable automated valuation model (AVM) estimate provided by the GSEs - this is not available in all areas.

* For Fannie Mae owned loans - the new guidelines include the removal of the maximum LTV ratio limit for Refi Plus mortgage loans secured by fixed-rate mortgages with terms up to 30 years. This now includes loans with terms of 15 years.

The next Step in easing mortgage purchase and refinance limits is in the hands of our lawmakers.  Congressional leaders have reportedly agreed to raise the maximum size of residential mortgages backed by the Federal Housing Administration (FHA).  House and Senate lawmakers responsible for reconciling spending bills agreed to a new limit of $729,750 on FHA-insured loans; mortgages backed by Fannie Mae and Freddie Mac, however, would remain at their current level of $625,500.

What this means for people who want a mortgage:  FHA loans require a smaller down payment and mortgage insurance.  Rates are lower for FHA loans, the additional cost of mortgage insurance will make the monthly payments higher. Mortgage Insurance is required for almost all lenders with less than a 20% down payment or equity in a home.  FHA loans require mortgage insurance to be paid for a minimum of 5 years, and it can only be removed by paying down the original mortgage amount to 80% of the value of the home, it cannot be removed due to an increase in value of the property. 

Today's Mortgage Rates

30 year fixed - 3.875% + 0% cost points for rate
20 year fixed - 3.750% + 0 % points for rate
15 year fixed - 3.250% +  0% points for rate
10 year fixed - 2.99%  + 0%  points for rate
5/1 ARM - 2.50%  +0 points for rate
7/1 ARM - 2.750 %  + 0 points for rate
10/1 ARM 3.250% + 0 points for rate

FHA/VA
30 year fixed - 3.875% with +0 % points for rate
5/1 ARM - 2.75%  with + 0 points for rate
7/1 ARM - 3.25 with +  .625 % CREDIT  point for rate

Jumbo - over 576,000 (in Fairfield County, CT)   to 2,000,000
30 year fixed - 4.750  % with 0 points  for rate
15 year fixed - 4.125% with +.250% points for rate
5/1 ARM - 3.375% - 0 points for rate
7/1 ARM - 3.875 % - 0 points for rate
10/1 ARM - 4.375% with 0 points for rate

Jennifer Buchanan,  Certified Mortgage Planning Specialist at MetLife Loans is a seasoned veteran of the Mortgage, Banking and Broker Industry and specializes in mortgage loans throughout Fairfield County, Connecticut.
   Her attention to detail is unsurpassed, and her understanding of the marketplace makes it easy to find the right loan to fit her clients specific needs .  Jennifer's local processing and closing team are also known for their exemplary service.
   Understanding that the vast majority of mortgage brokers never discuss the long or short term  financial needs or goals with their clients, she set herself apart from the rest by obtaining the coveted CMPS  designation. (Certified Mortgage Planning Specialist)
    She is a member of the National Association of Responsible Loan Officers, and her commitment to ethics, understanding of the marketplace, and business acumen have earned her the respect of her peers and clients alike.

Jennifer Buchanan
Metlife Loans
203-341-6949

Jennifer Buchanan- Your certified expert
 on mortgages offering Free Unbiased
recommendations based on your needs.

How to Figure Out the Right Price to List Your Fairfield County CT Home.

When you arrive at the decision to sell your home,  the next thing to do is to meet with an agent who will conduct a market analysis to value your property appropriately for the current market.

Here's where it can get tricky as far as pricing is concerned. Not all agents are proficient at pricing.  If you decide to call a total of three agents, you are sure to get three different prices.

Yes, they should all be looking at the same competition in the marketplace, and they should all be using a number of comparable sales to arrive at their price, but how is a homeowner to figure out the correct price when three agents give three different answers?

The best price analysis that you can obtain is one where the agent doesn't even have to tell you the price. It should be inherently obvious based upon the  information in the report. If it is not,  that's probably not the correct price.. That's all there is to it.

An analysis of a few active properties and a few sold homes are really representative of those homes and not of the the overall  market in general-  especially not your home.

Some agents will inflate their pricing estimate  just to get you to sign a listing agreement, because you will be happier with the price. Don't go that route, and be extra careful. If there is not enough information to back up their claim, the price is just pie in the sky, and you shouldn't rely on it.

A thorough analysis is always necessary to obtain a truly accurate value, and if the analysis isn't thorough, it should not be relied upon. Again, it should be obvious or very close to obvious as to what your home should "list" for, and also include data and what the estimated sales price will be. We all have the same information, it's just how hard the agent wants to work to do it properly

If you are ready to  sell your home, and want the best reliable and most accurate price, contact me. I will perform a True Market Analysis for you at no cost.

If you have a question about buying or selling Real Estate in Fairfield County, and are in need of representation, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

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Having Trouble Selling your CT Home? It's Time to Try a Different Approach

If your home seems to be languishing on the market while others are selling,  it's time to change the marketing approach.  The longer your home sits on the market, the more likely it is to sell at a lower price than originally anticipated. And worse yet, it costs you money every day that your home sits idly by in the market.

Quite simply, if the marketing strategy for your home is not working, have your agent change it, or change agents. Give it enough time to kick in, but if nothing is happening, it's time to change directions.

Have you ever heard  the  definition of insanity? It's doing the same thing over and over again and expecting different results

The best thing that can be done is to change the advertising slant, or focus. If what you or your agent is doing right now isn't working, well. ... then it doesn't work. Period. Don't become "married" to any one idea if it is not producing results.

Experienced marketers identify their most probable consumer(s) and target that audience in a strong way. If the product doesn't sell, they change the ad.  But the problem is two-fold for real estate..  

First, and for quite some time, agents didn't really have to have a marketing strategy other than putting your home on the MLS. Homes flew off the market as a by-product of a good economy.  That doesn't exist right now.

Secondly, and maybe even more importantly- the agents that recognize that they will actually have to market your home don't have a real clue as to how to do it. They try, they might write a halfway decent ad, but it stops there. And here lies the problem. Most agents have an expressive personality. They write an ad that sounds good to THEM. It may  sound good to you, too. That's all well and good, but the pure expressive personality type represents only 25% of the buying population. The other 75% of the buying population dismisses that ad, either consciously or subconsciously.

Let me put it to you another way that might be easier to identify with, about appealing to different personality types. Have you ever heard someone acknowledge  in conversation that they can " see what you mean", or "I hear ya"?.  Those two people would  respond very differently to the same ad. One is visually stimulated, while the other responds to audio.

The psychology of sales is a very interesting subject. I have researched it thoroughly and am completely fascinated  by all of its intricacies. To explain it as succinctly as possible, it is of the UTMOST importance to reach as many qualified buyers in their own "language" that appeals to their dominant personality  type.

In order to be most effective, the advertising of your home must appeal to the four different personality types, and have something of interest and value  for each one in order to produce a sale.  This is the essence of marketing. It's complex but incredibly effective. You , as a homeowner, really don't need to have this knowledge. Your agent does, or should.

I have that knowledge and the expertise to implement it, and I will explain to you exactly how my strategic marketing works. When you want to sell your home, just contact me.

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