What NOT to do Before Buying A Home: WORST Moves for Homebuyers

There are a number of things that could either hurt your chances of buying a home, or severely hinder them, but just a few very smart preparations  on your part can make the process exponentially easier. When you decide that you are ready to buy a home, or sell your existing home and buy another home, remember these important tips:

1. First things first, get your finances in order.

2. As a rule, do not deposit a large sum of money into your bank account within three months of purchasing a home without being able to explain in detail and prove exactly where the money came from.

For example, If you are getting any money as a gift for the downpayment, get it now and put into your bank account. As a safeguard, also have whomever is "gifting" you this money maintain the prior three and following three months statements on the account from which the money came from. This may be a requirement from the bank.  The bank may also require a signed "Gift Letter".

3. Do not change banks, or move money around from bank to bank. Your future lender will require to see proof of your  source of funds for your down payment and closing costs. Most banks request statements for the last two or three months on any of your liquid assets. This includes checking accounts, savings accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company 401K and retirement accounts.

4. Do not apply for any credit cards, and if you have balances on your credit cards, PAY THEM OFF. It is not uncommon for a credit card balance to hurt your buying power. There are guidelines on the amount of debt that you can have without cutting into your ability to obtain a mortage at the desired amount. Going to a store and  obtaining a credit card for just that store for a purchase you intend to make is just as bad. Just wait.

5. Do not co-sign a loan for anyone, period.

6. Do not make any major purchases. That means wait to buy the car until after you have closed on your home, and wait to buy any furniture or appliances as well. If you have to make a major purchase, speak with your loan officer.

7. If you haven't already contacted a loan officer or a real estate agent, do so now.

8. Don’t change jobs, especially in today's teetering economy. A lengthy employment history with one company shows stability in your life and in your work. Believe me, that counts significantly.  A number of recent job changes even if they are in the same field does not look good on an application. Likewise, if you have only been at your current job for less than a year, it is not ideal as far as lenders are concerned.  Wait until aftter you close on your new home.

9. None of the above should change AT ALL until you actually have the keys to your new home in your hands. Do not apply for any credit between the time your loan is approved and the time that you close on your home, either. The bank will do a final credit check, and any inquiries at all are red flags. You will also be asked AT THE CLOSING to verify your original application and whether or not everything is correct on your original application. Heaven forbid something changed, and you didn't disclose it to the bank and major repercussions ensued. Just don't do it.

10. If you happen to be buying a home direct through the owner, NEVER give a deposit or  earnest money directly to that seller.

Lastly, and most importantly, don’t go through the process without the professionals that you need. That means an attorney, a real estate agent (that would be me!), a loan officer, and a building inspector.

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Founder of ForSaleByOwner Company Hires Realtor to sell his home.

Now that's a kick. Here's a man who earned quite a bit of money as the CEO of a company that promotes  and makes a lot of money from FSBO's (For Sale By Owners),  how easy it is do yourself, and when it came time to sell his own house, what did he do?

He hired a Realtor.

The company he founded, by the way is ForSaleByOwner.com

You know what happened? The Realtor felt that the seller's asking price was the wrong strategy, and urged the founder and former CEO to raise the price by a whopping $150,000. There were multiple offers, and then.. it sold! So not only was this particular owner underpricing his home,  he will net MORE out of the sale after the real estate  commission is paid. If you want to know, his home sold for  $2.15 million and it was in the Chelsea section of Manhattan.

This just seems so incredibly comical that someone in that position would go against his own grain, and it should speak volumes to the many sellers with no real knowledge of selling real estate as to what they should do when it comes time to sell their home.

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Connecticut Mortgage Rates and Financing Update October 28, 2011

The market reaction to events in Europe over the past few days and the very poor  seven year bond sale on Thursday sent  Mortgage Rates higher this week.  Rarely do we get a Fed Rate Decisions and an Employment Situation Report in the same week, but both are next week. IF things move in the wrong direction, that could quickly move rates higher very fast.

The mortgage banking industry greeted President Obama's announcement of changes to the Home Affordable Refinance Program (HARP) with a diversity of opinions. Richard Rydstrom, chairman of the Los Angeles-based Coalition for Mortgage Industry Solutions, experienced a sense of deja vu in this week's news.

“Here we go again!" says Rydstrom.  "The original restructuring and HARP goals were 7 million to 9 million. As part of this plan, the Treasury Department announced a national modification program aimed at helping 3 million to 4 million at-risk homeowners - both those who are in default and those who are at imminent risk of default - by reducing monthly payments to sustainable levels. We will never reach those levels unless we actually relax the requirements to meet the new reality: many more people are either in default, underwater, suffering from lower FICO scores and have experienced lower incomes than originally estimated. The HARP-eligibility pie, in terms of the actual market consumer, has become smaller and smaller over the course of this recession."

"The program should base its criteria on verifiable 'ability to pay' rather than FICO scores, equity, or strict definitions of 'current,'" he adds. "Borrowers with a verified 'ability to pay' who are granted principal reduction/forgiveness with claw-backs and public/private insurance guarantees can satisfy risk- and loss-based standards."

Today's Mortgage Rates

30 year fixed - 3.99% + .250% cost points for rate
20 year fixed - 3.875% + .50% points for rate
15 year fixed - 3.375% + .50 points for rate
10 year fixed - 3.250%  .50% cost points for rate
5/1 ARM - 2.625% -0 points for rate
7/1 ARM - 2.875%  + 0 points for rate

FHA/VA
30 year fixed - 3.875% with .50% points for rate
5/1 ARM - 3.00 with 0 points for rate
7/1 ARM - 3.25 with 0 point for rate

Jumbo - over 635,000 to 2,000,000
30 year fixed - 4.875 % with 0 points  for rate
15 year fixed - 4.375% with +.50% points for rate
5/1 ARM - 3.50% - 0 points for rate
7/1 ARM - 3.875 % - 0 points for rate

10/1 ARM - 4.625% 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.

The Top Five Mistakes that Sellers make- The Fairfield County CT Version

Here it is. It offer my own version of the Top Five Mistakes that Sellers Make.  You may have seen a littany of articles on those "top five mistakes". Go ahead if you want, and look at all of the articles on this subject-  there are quite a lot, I can assure you. As a matter of fact, I typed in "top five mistakes that sellers make" in Google and it returned about 415,000,000 results in just 0.32 seconds.

With that, I offer you my original Top Five, which may not necessarily agree with the other Top Five Lists, but I can pretty much guarantee you that all of these are appropriate for our area,  and actually..... anywhere you want to sell your home. Here they are, in order of importance.

1. Hire the Right Realtor
2. Hire the Right Realtor
3, 4 and 5. Hire the Right Realtor!

All of the reasons that your home doesn't sell is because the wrong Realtor is representing you, period- end of story.

Hiring the wrong Realtor is the worst thing that you could possibly do. All four hundred some-odd million of these lists could have stopped right there, because all of the other items that are on those lists  are agent related.

The bottom line is that it rests with your Realtor, so your top five priorities in selling your home should truly be focused on just one thing. That is, Hire the Right Realtor.  There is  only one answer to the number of "mistakes"  that I saw, and continue to see in the marketplace. Here  are some of them, and as you can see, the common denominator has to be your agent.
 
1. Overpricing Your Home- wouldn't your Realtor tell you the right price?
2. Not staging your home? Doesn't your Realtor assist you with this as part of their service?
3. Under-marketing or OVER-marketing your home including misrepresenting your home's features, condition or square footage? Your Realtor is the professional he/she should know exactly how to market your home. Shame on your Realtor for this one, period.
4. Sticking around during Showings, and/or not making your home readily accessible for showings? Hasn't your Realtor advised you how this can adversely affect your home sale?
5. Picking the wrong buyer- Shouldn't your Realtor be helping you on this?

Keep it simple and get it sold. Hire the Right Realtor.  These people did.

......and the right Realtor? That's me! :)

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Facts about Mold and Your Connecticut Home

 Mold has been an increasing problem over the past several years. 

Mold is often an invisible menace in a home, commonly growing in dark, secluded places. Mold can be found behind drywall, above ceiling tiles, under carpets, in attics, and growing in attics and insulation.

Mold and rot can be found anywhere, from the crawlspace to the basement to the attic, and it does not need to be in a visible place to be affecting one's health and home.

Mold detection can be tricky and requires comprehensive sampling by a certified professional. Here is a fact sheet called Get the Mold Out, put out by the Connecticut Department of Public Health to help guide you and your clients through the mold detection and abatement process. Click here to read it.

The weekly Tip-of-the-Week* is supplied by Only Closings --

a law firm devoted to real estate closings.

      - Our closing staff is made up of seasoned, experienced real estate attorneys.
      - Close where it is most convenient for the client (home, office, job or bank)
      - Very competitive closing fee and no hidden fees!
      - No fee consultations.
      - Personalized, responsive service from all of our attorneys and paralegals

  To learn more about Only Closings and how they can help you quickly close a property transaction, call them at 203-563-9677 or visit them online at www.OnlyClosings.com

*The content within the "Tip-of-the-Week" is strictly for informational purposes and not intended to be interpreted and/or used as legal advice. Only Closings and OnlyClosings.com is a service provided by Tamara L. Peterson Attorney at Law LLC.