Amanda Bell

In working with buyers, I am often asked why or if it is important for them to get pre-approved. The answer is that is it always important and always preferred. This article will stress the different reasons one should be approved.

The first reason one should be pre-approved is that it helps establish a comfort level. Notice I did not say a qualifying level. Yes pre-approvals do tell you what loan amount you can qualify up to, but is that the most important thing they do? No. The most important thing pre-approvals give us is a comfort level. You may be able to qualify for a $200,000 loan but the payment may force you to make sacrifices you aren't prepared to make. So based on the qualifying amount, you can determin your comfort level. The amount that you can comfortably afford to borrow and still do the things you like to do. Remember our contracts do not say that your offer is contingent upon you liking your payment but that you can borrow that amount of money.

The second reason is that it helps determine what loans you can qualify for. Not every buyer can qualify for every loan and not every home can qualify for every loan. With each loan type there are certain procedures, paperwork and costs associated with that loan. It is better to know up front what your challenges and procedures are going to be instead of trying to re-work and existing contract. Changes in loan types during the contract period can cost the buyer, seller or both more money and can cost you the home of your dreams.

Third, it helps you focus on the homes that you can both afford and are comfortable with. There is nothing worse than finding the right home that has everything you wanted and not being able to get it. At that point, it will be hard to find another home that will make you as happy. If you keep to your goals established by your comfort level, you will be much happier long term.

Another reason to get pre-approved is there may be a slight glitch in your credit that needs to be addressed prior to closing on a home. Sometimes this can be handled quickly and sometimes it may take a little longer. Knowing where you are helps address where you want to be. This gives both you and your lender time to take care of anything that may delay your closing.

Lastly and most important for the seller, a pre-approval letter tells the seller you are serious. You have taken the time to get your pre-approval letter and are committed to buying this home. With all of the credit issues out there today, this helps ease their mind that if they sign your offer and take their home off the market for you, that you will be able to purchase their home. There are too many buyers out there for a seller to spend time on someone not pre-approved.

I hope this explains the need for all parties involved. I have several lenders that will work with you on getting you pre-approved so call me today at 615-406-9988.

 

Some of you may have noticed that over the past year I have started listing Fannie Mae foreclosed homes. During this time the number of foreclosures have increased dramatically. For a limited time, Fannie Mae is offering a special incentive to buyers.

Fannie Mae is offering a 3.5% incentive for buyers who purchase and close on a Fannie-Mae owned home between January 28, 2010 and April 30, 2010. Buyers purchasing properties listed on HomePath.com that are closed within this time period may receive up to 3.5% of the final sales price for one of the following:

closing costs the purchase of new Whirlpool appliances by Fannie Mae or a mixture of both not to exceed the 3.5%

To be eligible for this incentive:

offers must be accepted on or after January 28, 2010 property must close before May 1, 2010 and buyers must be owner-occupants, investors are excluded

This a great way to get a good deal on a home and have new appliances waiting. Please call me or email me for more information or to get a list of approved properties for this incentive. You can keep up to date on the latest by visiting me on Facebook. I am listed as Amanda Bell and At Home Realty so friend request me today. 

If you have a blog topic you would like to review please send me an e-mail.

Have you ever heard of Absorbtion Pricing? This is a not so new way of pricing your home. Many agents are still using CMA's (Comparative Market Analysis) when valuing your home. This is still a great way to value your home, but it is not enough anymore. Absorption Pricing takes a look at how many homes similar to your home have sold within the last 3, 6, and 12 months.

Then you calculate how many similar homes are currently on the market. This will tell you how many months of inventory are out there. For example, if there were 12 homes that sold within the last 12 months that were similar to your home then you can estimate that one home per month sold. If there are currently 15 homes similar to your home on the market, then there is enough inventory for almost 19 months. This will help you determine how to price your home. Only you can decide your financial situation and how quickly you need to sell to reach your goals.

Call me today for a more detailed evaluation of your home.

Don’t worry, this doesn’t have to be a time-consuming project. Here are some easy improvements you can make to boost your curb appeal – all in just one weekend.

• Paint or stain your front door. You probably won’t even have to take it off the hinges.
• Installing a metal kick plate is another inexpensive way to freshen your entrance – it will cover years of wear.
• Polish door hardware. Consider replacing the hardware if it’s really worn or flaking. Don’t forget the doorbell and lighting fixtures.
• Replace worn welcome mats. A new welcome mat in a cheery complementary color can boost the front entrance welcome factor.
• Install outdoor lighting. Consider solar garden lights to line a walkway, or a bright new porch light. This will make your home look more inviting in the evening when most buyers have the time to drive by.
• Kill mold and mildew. Use a pressure washer to easily blast the siding, roof, deck and driveway clean.
• Mow the lawn. Trim around flowerbeds and other stationary objects. Make sure your lawnmower’s blades are sharp for a clean cut.
• Get rid of weeds. Replace with blooming flowers and add new bark or gravel for a fresh look.
  Trim shrubs and tree branches.
• Cutting overgrown shrubs can open up your home’s exterior. Be sure branches aren’t creeping onto the roof. Show off appealing architectural elements by trimming around columns and windows.
• Add a hanging flower basket. Install a stylish but discreet hook on your front porch and add an inexpensive hanging plant.
• Clean gutters. If the downspout is badly damaged, consider replacing it with a decorative rain chain, which allows water to run down ornamental funnels into the ground drain.
• Clean windows. Use an industrial cleaner to make your windows sparkle from across the street.
• Don’t forget to wash the screens.