Should you go a mortgage broker or a bank for your home loan?

You may have been doing business with a particular bank for many years, you know the people at your branch, so it's only natural that  you would think that  your bank would give you a great deal on your home loan, right? NOT NECESSARILY SO.

There is a belief out there that mortgage brokers charge you more  for a loan than banks do. NOT NECESSARILY SO.

There is a big difference between getting a loan from a mortgage broker as opposed to a bank, and I will put it in simple terms. A bank may have 4 or 5 products (loans) to choose from. The Mortgage Officer at the bank will do his best to place you in one his bank's loans. The problem is, the bank only has 4 or 5 options. A Mortgage Broker typically works with 25 or more banks, and probably has over a hundred different  types of loans. This  increases your odds exponentially of getting a loan that's perfectly tailored for you. So when it comes time to get a loan, get a referral for a good mortgage broker- they can be worth their weight in gold.

I have a network of mortgage professionals that specialize in different types of loans, one that is certainly just right for you. I get no referral fees or special perks from any mortgage brokers- just great service for my clients, so when you are ready, I will be happy to refer you, if you need it.


The Art of Negotiating Your Home Purchase

So you found that special home, and it's time to put in an offer.  Advice?  When your agent writes up the offer, make sure you include all of your optimum terms, and conditions right from the get-go.  That may seem like basic  knowledge to you, as the widely used offer forms have allotted spaces to include that information, but theres more to it than that.

Basic Terms and conditions  are the price, downpayment, mortgage amount, mortgage contingency date and proposed closing date. Other terms and conditions to be included in your offer to purchase are building inspections (including wood destroying insect,  radon tests, septic tests, and well recovery tests, etc.)
 
Here's an example of some additional terms that I am talking about. Maybe you like that dining room chandelier- if so, you better include that in your offer.  Maybe you would like the refrigerator, window treatments, or the washer and dryer, which was not included in the listing- you better include that, too.
Maybe you want to lower the downpayment amount, or you need to store some items in the house you are buying prior to close.

If you do not include these items in your initial offer, and request them later on in the negotiation, the seller may think that you are going to constantly ask for extras after the building inspection, and up until the time of closing.  You just look like you are nickel-and diming them if you don;t tell them up front, and asking for things later on in negotiations just sours everything, and it can very easily kill the deal just because of the timing.

An honest omission on your part would most likely not be a problem, however if there is some term, addition or contingency you want to add later, which in fairness, really should have been done at the beginning , you might as well just say goodbye to that house. Be smart. Your agent should be asking you questions, and should know you enough to know what is important to you. So trust your agents advice. Need an agent? Call me!  I've got 26+ years of experience, and have successfully negotiated Hundreds of sales.  I'll negotiate for you, too!

Multiple offers in a buyers market? OH, YES, it happens!

Most people think that if it's still a buyers market, then the possibility of  multiple offers doesn't exist. Just get that thought right out of your head right now! Multiple bids on a property happen in any type of market!

Just yesterday afternoon, I showed a client a home that had only been on the market a few hours.  It was a nice home, and she liked it  as soon as she walked in. I knew immediately that this home was priced very well, and I told her so. We made another appointment to go back  this morning, and came up with a few questions for me to ask the agent, who could then ask the owner, with pretty  much the intent of submitting an offer if all of those questions were answered to our satisfaction.

When I called the agent to find out the answers for what we needed to know, she told me there were already two offers on the property, and they are expecting one more tomorrow. So while the property is available today, it will be sold to someone tomorrow when the seller makes a decision.

I have to tell you, as for me- I hate telling a buyer client that they are in competition for a house that they love. And then there's that lingering doubt, is the agent telling ME the truth? Sometimes I think they are just trying to push a sale. A few questions to the agent after that conversation can usually tell me whether or not that's a truthful statement or ( a hopeful one) As for this house, I believe this agent was truthful with me. The property is priced VERY well.

So what  is some good advice that I could give you as a buyer, when you are in a multiple offer situation?

PUT your BEST foot forward! You are in competition with other buyers, and the sellers are  looking at the bottom lines of the offer. They won't have to negotiate with you. As a matter of fact, they can just accept one of the offers on the table, and not even bother to ask you for your highest and best bid.

When you hire me as your agent, I'll give you the best representation, and  I'll do my very best to get you the house of your dreams for the very best price.  You can bank on it.

Your real estate transaction in CT and... the bank appraisal

When a buyer applies for a mortgage, the lender requires a bank appraisal.  This is an independent third party licensed appraiser who values your home as a "disinterested party", so to speak. Really , what the bank is doing is protecting their own investment for when they grant   the loan.

The underwriters want to make sure they are giving a loan based upon current market value, and not lending too much money on a property that is not worth it.  The bank appraisal is ona standard form, costs anywhere from$300- $500 and  is paid for by the buyer,  for the benefit  of the bank to ensure that the  property value is in line with what the purchase price for the property and the loan to value ratio.
So  even if a buyer was going ready and willing to overpay for a property, and wanted to obtain a loan from the bank to do so, the appraisal and the loan to value ratio would be deciding  factors in whether the buyer would obtain the loan. So the appraisal is a good thing. It's an unbiased check and opinion of value.

TIP: Buyers, remember,you must ASK the bank for a copy of the appraisal that YOU paid for, or you will most likely never see it. Expect a nominal charge of $5 to $10 for your copy.

You just found out that the house you just bought has termites. DON'T PANIC!

You found the house of your dreams, you negotiated a great price, conducted a building inspection, and the building inspector says that the house has termites.

Don't panic just yet. You really need more information before you make any decisions on what to do.

A building inspector once told me that roughly 65% of the houses that he had inspected over the years have had  some sort of infestation, so it's really not uncommon in our area of Connecticut. New homes can have termite issues, and older homes can have termite issues, too - so infestation is not having to do with age, necessarily.  I remember one newer home that I had listed where the homeowner was very concerned about ever getting termites, so she put a pebble garden around the perimeter of her house, and it looked beautiful. She had a part of a split rail fence adorning her front yard, and it was about 5' away from the home itself, and guess what? The house didn't have termites, but the split rail fence did, and she had to treat her whole house anyway.  There's at least one good reason to keep wood away from the house. So remember, keep that firewood away from the house, too- so you don't run into unnecessary problems (and expenses).

When active termites have been found, or evidence of termites have been found in a home, it needs to be treated.  It does not necessarily mean there has been structural damage to the home- your inspector will be able to ascertain whether the home needs repair, just a treatment, or both. Almost always, the seller of the property treats for termites if they are found, and if there are repairs that need to be done as per the inspection, you can do one of a few things- ask the seller to repair the damage, ask the seller for a credit so you can repair the damage, or walk away if it seems like too much. Some banks insist on a Wood Destroying Insect report as part of the paperwork needed to complete the mortgage process,
and will  insist on treatment to  the property in order to grant a loan.  It's your decision.  And remember, always speak with your attorney for legal advice.

 It's always best to speak with a licensed inspector to get as much information as you can, if this is something of concern to you. No realtor knows what a licensed inspector does. When it comes time to hire an inspector, make sureyour professional is a member of ASHI. (The American Society of Home Inspectors) . Members of ASHI subscribe to a strict code of ethics.  You deserve  the best.