If you are trying to qualify for one of the many mortgage home loans out there. And looking for information on how to buy a home in today’s market whether it be in the Santa Maria real estate market or not but still on the fence. Here are few things to think about whether you should buy a home now or not as well as a few tips..
The last several years since 2007 have been very interesting to say the least. Ever since the bubble on the real estate market popped causing housing values to plummet. Has created some unique things to happen. Such as this is currently the first time in American real estate history that real estate prices have dropped along with interest rates. So if you are in the market to buy a home here are few tips that you have to know and to keep in mind when shopping for a home.
1) You Are Not The Only Buyer
Even though there are less and less people that can actually qualify for a home due to new lending standards tightening up. Homes that do hit the market and priced right will have multiple offers especially when they are at a discount. If the price is truly a good price having the mentality of trying to low ball the offer even more than what the price is will only get someone else’s offer accepted over yours. If you think the price is a good price so will others so expect multiple offers and you may need to be more aggressive in order to get the home you want. A tactic that some banks are using are under pricing some of the homes just to get the activity and a ton of eye balls on the property with excited buyers, and yes those homes usually sell for a lot more than the listed price.
2) Its Not That Easy To Get A Loan Anymore.
If you have not bought a home in the last several years or refinanced a home loan you will find out that things are very different. The last thing you want to do is get bad information from friends and family who bought a home before 07 tell you how and what kind of loan they were able to get. Things have changed tremendously in the last few years for example now you have to prove you can actually afford the home. The bank will verify your income including requesting transcripts from the IRS to match what you submit to the bank for income documentation as well as what you report to the IRS. Also any changes or credit charges that you do will be questioned to make sure you are not taking on any new debt. Or debt that may have not been reported on your credit report, and overlooked. After you have submitted all your information to the bank they may even ask you to resubmit it again.
3) Be Patient
If you are trying to get one of the nicest homes that happen to be one of the best deals on the market. YOU HAVE COMPETITION and will have to try again and again you will have tons of competition meaning that your offer may not be accepted the first time so be patient on getting the home you want it may actually take several offers and even a few months to get you into a home.
4) Be Prepared For The Appraisal
Appraisals in today’s market are not as aggressive as they once were that means that many times the appraised value comes in lower than the agreed price. When this happens one of two things must happen. Either the price is reduced to the appraised value or the you the buyer has to bring in more money to the table. Which for many buyers can be tough especially if you are talking about $1,000.00’s of dollars. Reality is most banks know this but some can be stubborn. They may not want to lower the price and you will have to walk from the house you wanted. The bank may have to eventually lower the price but that will not do you any good since it will only benefit the next buyer.
5) Buying A Short Sale.
Currently the amount of Santa Maria homes on the market as well as in most markets are either foreclosed on or are short sales. There are a few regular transactions but in the higher end range of homes for sale. But keep in mind that when dealing with a short sale that they can take months to close. Before a short sale can even happen the bank holding the mortgage has to approve the short sale process. Even though the seller of the home is currently the home owner and may want to sell his home to you he cannot do anything until the bank actually agrees to the short sale process. Entering the short sale process requires patience, and being aware that it may take months to close the transaction. Some agents will steer their clients from short sales since they can take longer to close hence it takes longer for them to get paid. Not to mention some clients really just cannot wait as long as it may take to do the short sale. But some short sales can take as little as a month but others can take as long as a year. But that also means that sometimes you have NO competition for that home that can really end up being EXACTLY WHAT YOU WERE LOOKING FOR. The length of the short sale depends on many factors out of your control and the Agent’s as well as the homeowner. Sometimes it doesn’t even matter who the bank is.
Reality is real estate prices are at current lows and with interest rates at record lows. Why wouldn’t you try to buy a home.
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