House Hunting? 5 Things to Keep in Mind....

1. Expect stiff competition for some homes. There still seems to be an abundance of buyers and homes for sale are still receiving multiple offers. In most areas homes are selling on average at or just above (101-103%) of asking price. Bottom line is expect some competition and be proactive!

2. Getting a loan may be more complicated and time-consuming than you expect. With all of the questionable lending in recent years underwriters are being VERY cautious these days. Tax returns, pay stubs, verification of employment, and credit checks right before funds are drawn are not uncommon. Be VERY careful in escrow not to make any large purchases and do your homework ahead of time - GET PRE-APPROVED.

3. Buyers, be prepared to try, try again. It can be extremely frustrating for buyers right now. It feels as though foreclosure banks and short-sale servicers are holding all the cards and buyers are forced to play by their rules. Be patient, don't get emotionally attached to any one house, and be persistent. There are great deals to be had if you can survive the journey.

4. The appraisal process can throw a monkey wrench into a sale. Appraisals seem to be coming in lower than usual, possibly from increased scrutiny and the fear that lenders will crack down on any appraiser that causes them to lend more than the home is worth. If the home appraises at or above the offered price then everybody is happy. But if it comes in below the offered price then renegotiation must take place until funds are conceded to the appraised value.

5. Completing a "short sale" can be a hassle. Although programs like H.A.F.A. seem to be helping, the short sale process can still take months (depending on the servicer). There are typically savings to be had if one can stomach the ride and, in my opinion, short sales are worth the wait.

If you have any questions in regards to any of the above then I'd be happy to discuss things with you further. Please contact me anytime at tcrekevin@gmail.com with any questions or concerns.