Financing Update and Today's Mortgage Rates in Connecticut- June 24, 2011

Independent mortgage banks and subsidiaries saw a huge dip in profitability as the average they made on each loan originated dropped from $1,082 in the fourth quarter to $346 in the first quarter. According to the MBA’s Mortgage Bankers Performance Report, lenders increased their overall revenues but profits suffered because of higher production costs. The "Best Execution" conventional 30-year fixed mortgage rate is 4.50%. Some lenders may be quoting 4.375%, but that offer is aggressive and will likely carry increased closing costs in the form of origination fees.  These costs could be worth it to applicants who plan to keep their new mortgage outstanding for long enough to break even on the extra upfront costs.  On FHA/VA 30 year fixed"Best Execution"  is 4.25%.  15 year fixed conventional loans are best priced at 3.75%. Five year ARMs are best priced at 3.125% but the ARM market is more stratified and there is more variation in what will be"Best-Execution" depending on your individual scenario.   

30 year fixed - 4.50% - 0 points for rate
20 year fixed - 4.250% - 0 points for rate
15 year fixed - 3.625% 0 points for rate
10 year fixed - 3.250%
5/1 ARM - 2.75% - 0 points for rate
7/1 ARM - 3.250% - 0 -points for rate
Jumbo - over 729,000
30 year fixed - 4.99% 0 points  for rate
15 year fixed - 4.50% - 0 points for rate
5/1 ARM - 3.50% - 0 points for rate
7/1 ARM - 4.00% - 0 points for rate

Contributed by Jennifer Buchanan of MetLife Loans

About Jennifer Buchanan:

    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

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Caveat Emptor - Pay attention to details when you are looking at homes!

The Latin term Caveat Emptor literally means "Let the buyer beware". Under the doctrine of caveat emptor, defects rendering the property "unfit for ordinary purposes" would be unrecoverable from the seller, with just one exception- That is, if the seller knowingly and actively concealed latent defects or otherwise made material misrepresentations tantamount  to fraud.

There are a lot of things to look for, both good and bad, overt and hidden, when you are looking at homes. There are some things about the home that you buy that  you may never find out until you actually own it.

Some of the more obvious things to look for:

Do you like the layout?
Is there enough storage space?
Is there enough room for your needs right now, and what you think you might need in the future?
Do you think that the house will look and feel  as appealing to you during different times of the year?

*Does anything need to be repaired or replaced?
*Are the mechanical systems in good order?
*Do the appliances work?*

*Asterisked items may signal a bigger problem, having to due with normal maintenance that really should be a given. If the homeowner hasn't fixed or maintained major components of the house, what else has been neglected?

When I initially show a house, I do a mini-building inspection. No, I am not a building inspector, and I do not profess to have that kind of extensive knowledge, BUT there are a few things that I can do as your agent that will most certainly help you make an informed decision as to how far you want to go with a particular house.

Some of these little tests I perform on homes as I am showing them:

• If there are area rugs, I pick them up to see if the seller is hiding any unsightly cracks or defects in the floor. Sellers may not necessarily be concealing it just to defraud you- they may just not want to look at them on a daily basis. It may sound dumb, but how would you feel if  you spotted it for the first time on the day you did the final walk-through on the house?

• Open and close all of the interior doors to make sure that they work properly. If there are one or two that don't shut, no biggie- but all throughout the house signals a BIG problem. Wouldn't you like to know this right away? -Before you put in an offer, or pay for a building inspection?

• Try and wiggle whatever railings there are- front porch, upstairs, and down to the basement. Again these sellers are aware of the frailty of the railings, but tend to forget about it, and live with it. It's just something that you should know that will need repair.

• Check the bathroom for loose tiles, and water seepage around the toilet, tub and tile. Again, I do not ever take the place  of a building inspector- if I find something of concern, I will let you know and if you like the home enough to place an offer on it, when it comes time for the building inspection, you can tell the inspector to look at that area more closely.

• The roof- since roofs generally last about 20 years and you can only put on two layers of roofing before  it needs to be stripped down to the wood , pay attention to when the house was built-  as of right now, if you are looking at a house that was built from 1985-1990, and it is NOT obvious that there is a new roof on it,  expect a new roof to be an expense in a few years. If the home was built anytime in the 60's-70's, and there is not a new roof on it, know that when you need to replace the roof that you will most likely have to strip down two layers of roofing on the house already, and the cost will be more than usual. This is not a hard and fast rule of thumb, it depends a lot on the location, the amount of sun or shade, and the quality of the roofing materials.  

Those are just a  few of the very many things that I look for when I am showing properties to buyers.

There are a lot of tips that I reserve for my clients ONLY, and when you become one, you'll get that benefit. When you are ready to buy a home, just contact me, and I look forward to hearing from you!

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Real Estate Agent, Realtor, Salesperson or Broker- which one to choose?

When you are looking to hire a professional to assist you in your home buying or home selling needs, there are a number of  options to choose from. Some terms are considered interchangeable in the public's eye, but actually, they're not.  Knowing the difference between the various terms, and choosing the best type of agent for you is very important to your transaction, and will most likely have a trickle-down effect into your wallet.

When it comes right down to it, the difference between these are education and  ethics. So having this knowledge, wouldn't you want the best of everything that is available to you?

REAL ESTATE AGENT-  The term  "real estate agent" is  a generic term for a professional who assists buyers and sellers with their homebuying or homeselling needs. A real estate agent MUST be licensed through the state of Connecticut through the Department of Consumer Protection. (CT.DCP)

REALTOR -A Realtor is either a licensed real estate salesperson, or licensed real estate broker who belongs to the National Association of Realtors. Not all real estate agents are Realtors- YOU HAVE TO ASK!!!!  A Realtor must abide by a strict code of ethics, and most realtors will proudly display their affiliation, either in text or with the "R" logo. There are annual dues for membership There are currently 1,017,362  nationwide members.

SALESPERSON - A Real Estate Salesperson must be  licensed through the state of Connecticut, and sponsored by a real estate Broker in order to legally sell real estate in Connecticut.. The pre-requisites are  60 hours of classroom education, and a mandatory score of 70% or higher on a two part state licensure test which consists of  general questions and specific state related questions. Failure to pass either of the two part test will require that portion of the test to be completed and passed. A licensed real estate salesperson also must attend  12 hours of continuing education every two years, with a mandatory three hour class "CT Real Estate Agent Fudiciary Duties and Law Update". .Licenses are valid for only one year, and expire every May 31, unless the requirements are met for renewal.  As of today, there are  15,338  licensed salespeople in Connecticut.

BROKER -A Real Estate Broker is licensed through the state of Connecticut. The pre-requisites are  being a licensed Real Estate Salesperson for a minimum of two years, 120 hours of classroom education, and a mandatory score of 70% or higher on a two part state Broker licensure test which consists of  general questions and specific state related questions.  A licensed real estateBroker also must attend  12 hours of continuing education every two years, with a mandatory three hour class "CT Real Estate Agent Fudiciary Duties and Law Update".A Real Estate Broker is the highest form of licensure avalable to real estate professionals in Connecticut. Licenses are valid for one year, and expire every March 31, unless the requirements are met for renewal. Brokers who sponsor Salespeople are responsible for all of their acts and omissions. As of today,  there are  6419  Brokers in Connecticut. That's just 29.5 percent of all the real estate professionals in the state.

The best educated and most ethical real estate agent you can possibly hire to assist you would be a Realtor / Broker.  (and I just happen to know someone who fits the bill)

Resources
Department of Consumer Protection (State of Connecticut)

National Association of REALTORS

2011 REALTOR Code of Ethics

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New! Southport CT Real Estate Market Statistics now on theCTrealtyBlog.com !

Starting today, we will also include Southport specific  real estate market information and statistics . You can find the Southport information under our Fairfield Real estate Blog. We have also created a new companion Facebook Page just for Southport, which will have all of our town stats for Fairfield as well as Southport, access to the MLS right on the page, all of our posts  from The CT Home Blog, and  Southport News!  When you log into facebook, don't forget to look us up and we would appreciate a like! See all of our Facebook Town pages here .

What does the seller have to do after an offer has been accepted?

Congratulations! You've just accepted an offer on your home, and signed the binder. Now what?
First things first, your agent should let you know what you need to do at this point. Your agent and your attprney take it from here, and call you when they need you, or to give you updates on what is going on behind the scenes on your behalf.

Here's what occurs behind the scenes when I represent a seller whose property has just gone under deposit.  I suppose (and hope) it's the same for the agent that is representing you.

The Listing Agent makes sure that everyone involved in the transaction haas a copy of the fully executed and properly filled out binder paperwork, along with the necessary disclosures. That includes you as the seller,  your attorney, and the buyers agent representative.

If you have been making the appointments for agents to show your home, your agent should advise you the moment you have accepted an offer as to how to proceed  with making further appointments. You should not be fielding any calls from Realtors now.  Let your agent handle that. This is a bone of contention with me -personally, I do not believe in homeowners making their own appointments with other agents to show the property. I consider that as part of my services, and one less burden for the homeowner to bear while their home is on the market. Additionally, I always know how many showings there are at any given time, I can talk up the property to the agents before they show it, and build a rapport with the showing agent, if I don't already know them.  NOT ALL Listing agents will make  appointments, so ask when you hire that agent.

The listing agent reports your property's status to the MLS.  Most Multiple Listing Services have rules as to when the property must be reported as under deposit, or the agent will get fined. Our area MLS requires a status change to CTS within 48 hours of an accepted, fully executed offer.

For the sake of this article. I am assuming that you have already chosen your new home, and know where you are going.  At this time, you should be getting moving estimates, and start packing.  Go ahead, get at least four or five estimates, They can vary greatly.

The buyers agent contacts the listing agent to coordinate the building inspection's date and time.Your agent will call you  as soon as an appointment has been set to confirm it with you. Now, there is something to do! Make sure that the inspector can get to the major components of your house, and they are not blocked by furniture or various stored items. For example, if your  electrical panel, furnace, or attic has access blocked by any items, you should move them prior to the inspectors arrival.

Also, if your home is going to have a radon test, your windows and doors should remain closed for 48 hours prior to the test, and another 48 hours while the test is underway. Entering your home and leaving your home like you normally do is no problem, but the windows will need to remain closed. If you like to leave the front door or back door open, you will have to remember to leave both of those doors closed during this period.

If you have any manuals for any appliances or components that are remaining with the house, leave them out for the inspector.  If you have a record book of any work performed on your home, leave it somewhere where your agent ONLY can see it, and refer to it if necessary.

Last but not least regarding the inspection,  vacate the premises, but be available by phone to your agent if the buyers, buyers agent, or building inspector has any questions.

As a listing agent, I expect that the buyers agent will remain in the house during the entire inspection,  and I tell them so. Believe it or not, it's not always a given. I also stop by during the inspection to introduce myself to the buyers on your behalf, and to  get a "read" on the buyers, and how the inspection is going. I do respect the buyer's and the buyers agent privacy, so it will only be for a few minutes. I will be in touch with the buyers agent later in the day to see if there were any concerns that we should know about, if I haven't already found out about anything during my visit.

Remember, the inspector will still have to pick up the radon test if you are having one, so your agent will call you to set up that appointment.

The listing agent follows up with your attorney to make sure that contracts went out, and then follows up with the buyers agent to make sure that they are signed. Deadlines are outlined in your offer to purchase. You sign the formal contracts AFTER the buyers signs them, and they give the balance of their deposit.

Your agent follows up with the buyers agent to find out about the mortgage application,  and  you can expect a call from your agent to make an appointment with you for  the appraiser for the bank to make a visit to your home.  It's one of the last things that happen prior to the buyer obtaining their loan.

Wait to hear from your agent or your attorney that the mortgage is approved.

Call the utility companies to disconnect service on the date of your closing. If you have automatic oil delivery, check your tank now, and if you have enough to last you, call the company and stop the automatic fill. Your attorney handles the water company, so that's onle less phone call for you to make.  Don't forget to get change of address forms from the Post Office. Call any creditors and let them know about your pending move, (or advise them in the space usually allotted when you send in your remittance) Give at least a three week lead time

Attending the closing is a personal choice. About 65-70 percent of my seller clients attend the closing with the buyers present. Its not mandatory, and in some instances you won't want to, or cannot go.

Sure, there can be setbacks, glitches, and maybe even delays, but you have professionals working on your team to handle that. As long as you are in capable hands, relax. The process is a lot easier for you than it is for the buyer who has MUCH more to do, and is a lot smoother  than you might think!