These terms are handy to know terms when you are involved in either buying or selling real estate:
These are most often prepared by the person selling a property. They can include a property condition disclosure, a lead based paint disclosure (for properties built prior to 1978), and a septic disclosure to name a few. You should ask for copies prior to preparing a written offer.
Good Faith Estimate
A lender is required to provide a borrower this document at loan application. It provides the borrower a breakdown of their loan costs, closing costs and downpayment required. It also gives an estimate of the total monthly payment. The numbers from the Good Faith Estimate and the closing statement should align fairly close, if not you should ask questions.
This stands for Mortgage Insurance Premium. If your obtaining a mortgage with a loan to value greater than 80%, then the lender will require mortgage insurance in most cases. The premium is usually paid as part of your monthly house payment. For some loan programs a portion of the premium is collected when the loan is funded.
This is a claim by someone or a company on a property, usually for money owed. In Tennesse a Deed of Trust is filed with the Register of Deeds in the county where the property is located. This document reflects the terms of the loan, and is a matter of public record.
This is a a term used when the market is in the buyer’s favor. The buyer usually has the advantage when it comes to negotiations. A buyer’s market occurs when there are more homes for sale than there are buyers to purchase them, thus forcing sellers to me more aggressive with pricing. Usually homes take in excess of six months to sell in this type of market.
This term is used when there are not enough homes available for the number of buyers looking to purchase. This environment gives the seller the advantage when it comes to negotiations. In this type of market you will see home prices on the rise as many properties will receive multiple offers. In this kind of market, homes that are priced right and in good condition may only be on the market for a few weeks.
If you lost your home due to a foreclosure or short sale, you probably would like to own a home once again. The good news is that a number of guidelines have changed which may allow you an opportunity to buy a new home sooner than you think.
The traditional waiting period after a foreclosure is seven years. However; these waiting period guidelines may change and you would be best served to get up to date information from a qualified mortgage professional. Many lenders will shorten the waiting period some if there were extenuating circumstances surrounding the foreclosure of your home. Was there a death or illness that prevented you from earning enough money to meet your mortgage obligations? Did you loose your job or incur a substantial pay cut for some reason? These and similar reasons might be enough for a lender to shorten your waiting period after a foreclosure.
Your credit is often re-established quicker after a short sale than a foreclosure. Generally lenders will require only a two-year waiting period before they will consider you for another mortgage. Once again; seek the advice of a licensed mortgage professional to obtain the latest information on their qualifying guidelines.
Most people only buy a couple of homes in their lifetime. This lack of experience leads to many home buyers feeling woefully unprepared, increasing their stress level which affects their decision making at the worst possible time. The process doesn’t have to be so complicated if you keep things in perspective.
Keep in mind you’re not getting married. You don’t have to make a lifelong commitment to a home. So relax, you only need commit to a home for a few years. You can always move later if you fall out of love with your home, as long as you buy it right.
Here are a set of rules that will help you through the process:
*Determine your needs for the next five years. Affordability is number one. Make sure you consider all the costs: mortgage payments, taxes, insurance, maintenance and utilities. Your family size, lifestyle and profession are also important factors.
*Get the facts. The number one rule is do not overpay for a home. Try to determine what a home is worth based on comparable sales. If the home needs repairs, be realistic when you estimate those costs.
*Don’t fall completely in love. Lacking experience, people rely on their emotions. Remember a house is just sticks and stones and there are plenty of them out there.
*Get professional help. Seek the assistance of a REALTOR® to help guide you through the different steps. Educate yourself as much as possible so that you can better utilize your agent.
*Don’t be afraid to pull the trigger or walk away. Once you compile all the facts concerning a house you love, it becomes a much easier decision. If you love a house, the price is fair and affordable, then don’t be afraid to seal the deal.
There were several favorable events that benefited the average home buyer in 2013:
•Mortgage rates remained low
•The heated bidding wars that were happening in some markets ceased
•Investor buyers have cooled off, creating less competition and holding down prices
•The latest in technology has made home shopping easier for most buyers
These links will give you access to the most current property listings from the Knoxville Area Association of Realtors MLS system. The information is updated on a daily basis, so check back often.