Out and About Yukon and OKC

ARE YOU ENTERTAINING AN IDEA OF SELLING YOUR HOME?

ARE YOU READY TO SELL?

Putting a house on the market is not an easy decision, neither an easy task... There are a lot of factors, fees and costs associated with the sale of a house.

Life throws a lot of surprises our way. Life circumstances change our plans - sometimes for the better sometimes not. But whatever your reasons are the life goes on and the decision has to be made.

Do you know where to start with the process? Do you know what needs to be done, thought of, prepared, fixed, arranged, addressed, checked ? etc, etc...

What inspired me to write this post is the turbulent journey my clients went through ...

First they had to sell their house in another town before they could purchase a house in Yukon (greater OKC area). While having their house on the market, we already started the 'finding process' here. I kept in touch with the other Realtor. Everything on our side looked good. My clients were pre-approved, in constant touch with the lender, (best lender in my opinion, read about him here: Scott Champlain your friend and mortgage lender), we have done our work here and had our eyes on a specific property. All of us were ready to go...just waiting for closing on the first house, which was already under the contract. But ...

The first scheduled closing date was postponed, then moved, then moved again...At the end my clients ended up with a little over 10,000 short on their proceeds from the sale, homeless during holidays, and uncertainty what will happen...The domino effect started. Because they have been 'shorted' (I think that there was a early pay-off penalty which my clients were not aware of) there was not enough money to payoff some liabilities and add to the down payment.

After all this work we were faced with 'starting from scratch' process. With re-written loan, paperwork and all new laws and requirements from FHA (it's a fouled up unfriendly process) satisfied we are going to sit at the closing table tomorrow!

SO WHAT QUESTIONS DO YOU NEED TO ASK YOURSELF

BEFORE YOU  PUT YOUR HOUSE ON THE MARKET?

1. Do you have enough equity to pay off your mortgage/second mortgage?
   
2. Do you know the terms of your home loan? Is there a penalty for early pay off? Any specific clauses which will need to be addressed (read: penalties or requirements) for selling your house? (ex: you borrowed/were given the money from the federal assistance for down payment)
3. Do you have a home equity loan/line of credit and will you be able to pay it off?
4. Do you know how much your closing costs will amount to?
   
5. Did you consider possible repair costs needed (additional after inspection)?
   
6. What is the condition of your house? What needs to be repaired, brought up to code, carpet condition, interior/exterior painting, etc.
7. Did you calculate the expense of the listing commission?
8. Do you know if you have a Marketable Title to the Property, are there any outstanding liens etc...
9. Did you check your roof? Check with your insurance provider...Here in Oklahoma the elements are relentless from extreme heat to freezing temps and hail and wind damage. Your roof doesn't have to leak in order to be damaged or totaled.
   
10. Ask questions, ask and ask again...don't take someones word for it, check and recheck and the best way? Ask for having it in writing! As I always say: Black and White talks. Having all necessary documents, letters, statements etc is always the best policy.

And after all of that you still will have unexpected things coming your way...But being prepared, acting proactively and choosing an experienced Realtor on your side will let you get to the 'winner's circle'. Know the process and be prepared to welcome surprises...

I say: it is always better to be nicely surprised than badly disappointed.

With smiles,

Bo in Yukon

PS. Just in case when you sell your house here is my list for the Buyers: Top 10 List before you start looking for a home

Moments ago I just read my friend Todd Clark's blog post about new policy for appraisals and what a devastation it spreads in the real estate industry! Plus it costs an additional hardship and money to buyers, sellers and professionals involved in the transaction...

This policy, perhaps well intended, cripples the whole process and hurts the consumer...

If you wish you may sign a petition to repeal or reconstruct this policy - here is the link:

http://www.hvccpetition.com/

or watch a very informative video:

http://www.hvccpetition.com/Video.aspx

With smiles,

Bo in Yukon

State Bond funds are going to be available for first time home buyers in Oklahoma State beginning April 28, 2009. Qualified buyers can apply for 5.83% interest rate FHA/VA loan and 3.5% downpayment assistance which is required by FHA (Federal Housing Administration).

Please contact me at 812-1572 for more details.

Happy house hunting to you all!

With smiles, Bo

  Is going FHA really the best way?

For the last few good years FHA (Federal Housing Administration) loans were not so very popular. But this is definitely changing and the attractiveness of the loan once more is appealing to the borrower.

This financing option was born during the Great Depression out of necessity to assist the nation which was facing the greatest financial crisis. With years passing, however, this type of a loan fell out of favor because of housing prices going up and limitations on amount of money which could be borrowed.

Fast forward to today's date and our nation faced again with a big financial challenges. And once more we notice a very strong consumer interest in this type of a loan.

What is an FHA loan? The FHA doesn't lend the money or set the interest rates but it insures loans for lenders against defaults. To obtain a competitive interest rate and terms on a mortgage, you should compare options offered by different lending companies.

Why consider an FHA loan? It is a very appealing form of financing for majority of us and here is why:

• if you are a first time home buyer
• if you don't have a lot of down payment money
• if you want to keep monthly house payments low
• if you are a buyer with less than perfect credit
• if you want competitive interest rate

Because of the insurance the FHA offers the lenders can offer more attractive interest rates and less strict requirements (debt to loan ratio) to qualify which greatly benefit the borrower. 3.5% required down payment could be obtained from a family member, employer or charitable organization as a gift. There also other options for down payment like the community action programs. The best way to find out which options are available to you is to seek advice from your lender.

What kind of loans FHA offers?

• Fixed rate - the advantage of this loan is that the interest rate stays the same during the loan period, and your payment doesn't change
• Adjustable rate - if you are buying more expensive house you may 'lower the payment' because the initial interest rate and payments are low. However, the terms will change during the life of the loan.
• Purchase/Rehabilitation - if you are interested in a house which require lots of work you may apply for Single Family Rehabilitation Loan program also known as 203K

Most loans require some sort of insurance when down payment is less than 20% of the sales price. And yes, you have to buy mortgage insurance in order to obtain the FHA financing. The premium is charged up front or in monthly installments and is equal to the percentage of the mortgage usually 1.75 percent.

In summary FHA insured loans offer a lot of value and benefits to potential borrower.

Happy HOME HUNTING!

With smiles, Bo

PS.

When you have my team on your side you'll be amazed at the results of the home buying and selling process - so let's get together!