A Buyer's MArket Again

The Real Estate Market, especially in Central Maryland has indeed swung back in favor of the Buyer. After the previous 5 frustrating years, where multiple offers and constantly escalating prices were the trend, Buyer's can now shop for homes in a more "Normal Market".
Getting concessions from Sellers, in most instances is more likely now than in the recent past.
More info on this happy occurance, and how you can take advantage in postings to come.

Driving around looking at homes?

If you are serious about purchasing a home, driving around and looking for "For Sale" signs can have only two benefits:
1)If you are fortunate enough to run into an Open House, you can get an idea of what homes in that neighborhood are selling for...but keep in mind that homes in the same neighborhood can have a large difference in price, depending on the condition, features, upgrades etc.

2) You can get a feel for various neighborhoods to see if it is indeed a place you would like to settle down.


A SERIOUS, INFORMED CONSUMER WOULD TAKE THE FOLLOWING APPROACH:
Get your Loan Pre-Approval (NOT a Pre-Qualification) Letter.
See my previous post regarding Loan Pre-Approvals.
This will give you a firm price as to what you can afford...there's no sense driving around, wasting time and gas looking at neighborhoods with $500,000 homes if you can only can be approved for $350,000...right?

With your Pre-Approval Letter in hand, contact an Agent who is familiar with the areas you are looking.

Sit down and discuss with the prospective Agent your needs and goals, have them show you on computer current listings that are in your areas of interest and price range.

Working with an Agent is a partnership. Teamwork, ongoing and prompt communication plus realistic expectations on your part can make your search for a home both a fun and rewarding experience!

The Year of the Dog

Happy (Chinese) New Year!
It is the "Year of the Dog", and to all of you fellow Dog lovers, may you all enjoy an especially propsperous year!

The Importance of a Buyer's Loan Pre-Approval

So, you want to buy a house? If the answer is "Yes!", then the first thing to do is to see how much of a Loan you can qualify for.

Why? Because sellers will not even consider accepting an offer from you unless you have a "Pre-Approval Letter" to submit along with your offer to purchase their property. Your Pre-Approval letter, from a reputable lender, is a way to show the seller that you've got the dinero to go thru with the purchase of their property.

Those "Pre-Qualification Letters" you get as dailey junk mail, don't mean diddley squat.
To get an actual "Pre-Approval Letter", you must go thru the steps outlined in the paragraphs below.

My website has a great tool for doing your own estimate, simply click on the link labeld "Mortgage Center", then select the link "How much house can you afford?".
As long as you input correct numbers, as far as your income and debts, the software can calculate a pretty good estimate for you.

Your next step is to go to a qualified lender, a bank or credit union is your best bet, avoid mortgage brokers if possible, and for God's sake, don't use one of those online lenders such as LendingTree.com!

In order for a Lender to get a snapshot of your finances, and generate a "Pre-Approval" letter for you, you will need to provide some documentation. The basic documentation needed is:
A recent pay stub from your job,
Your most recent bank statement,
Copies of your monthly debt statements, such auto payments or credit card bills,
Other documentation will likely be needed, call your loan officer before you meet with them, and bring everthing they need on your first visit.

Your loan officer will need your written permission to run a credit check on you.

Based on the documentation you provide, and your credit report, the Loan Officer can easily calculate how much of a loan their institution will lend you, as well as the interest rate (consumers with the best credit scores get the best rates).

Ask the Loan Officer to generate several estimates for you, for example, what would be your monthly payment, interest rate etc. if you were to purchase a house for $xxx,xxx amount of dollars.

If you are not happy with the Loan Officer's estimates, then loan shop, try another lender, but do it on the same day if possible. Comparing rates between lenders is difficult because Interest rates can change at any time.

If you are happy with the Loan Officer's estimates, ask them to generate a "Pre-Approval Letter" for you. Your Real Estate Agent will also need a copy, which they will use when submitting an offer to purchase on your behalf.

NOW, ARMED WITH YOUR PRE-APPROVAL LETTER, YOU ARE NOW AN INFORMED CONSUMER (AS FAR AS YOUR LOAN COSTS ARE CONCERNED), AND YOU ARE READY TO DO SOME SERIOUS HOME SHOPPIN'.

A tale to the wise:
When telling my clients of the importance of getting the Loan Pre-Approval Letter before looking at homes, I often hear the voice in my head, of one of the Agents in my office. This fellow has a way of being very up-front with his clients...
I once overheard him speaking with a client, about a house the client was interested in, and also regarding whether or not the client had obtained his Pre-Approval letter yet.

My fellow Agent, shouting into the phone, told his client:
"If ya 'aint approved yet... then ya 'aint gonna git it"!!

Needless to say, they then began discussing what steps the client would need to take to "git his pre-approval".

Baltimore Real Estate Market Expected to Stay Strong

Yes, the market has slowed down somewhat, but the Baltimore to Washington corridor is expected to remain strong.
Large numbers of new government employees are being hired, as well as many employees in the defense industry. These folks all have well paying jobs, and often will look to buy soon after arriving.