Posts Tagged ‘home buying’

No FHA or VA financing? Recently I’ve seen several property listings state in the Broker’s remarks (area that the public can’t see) that the Sellers will not accept offers with FHA or VA financing. Do these Sellers realize that they’re possibly ruling out 95% of the market by not accepting that type of financing?

I’m shopping in a range for first-time home buyers who will typically have FHA or VA financing. I’ve explained to my Buyers that if they choose an “as-is” property, they will be responsible for whatever repairs may be required by the type of financing they choose. They understand that and we’ve steered clear of properties that will require more repairs than they can afford.

Years ago, there were more financial costs for the Seller when accepting FHA or VA financing, but those costs are truly insignificant now. Repair costs can be negotiated and the prospective appraisers are not as stringent as they once were.

Remember that FHA and VA appraisers are looking for safety and health issues. They don’t care if your dishwasher doesn’t work or your air conditioner is old – they care if the hot water heater needs to be raised or if there is chipped and peeling paint.

Come on Sellers – don’t turn away such a large portion of your potential market!

Lori is a residential Realtor with Chinowth & Cohen Realtors serving the greater Tulsa area, including midtown Tulsa, downtown, Owasso, Sand Springs, Broken Arrow, Bixby and Jenks. Visit Lori’s web site, LoriCain.com or call 918-852-5036 today!

So you’re thinking of buying your 1st home? Step by step directions!

Tulsa home buyer's checklist

You’re already shopping online. I know that, because you wouldn’t be reading this blog if you weren’t.

You are going to need a good Lender and a good Realtor. You really should contact a Lender first, but if you’re unsure of where to go, choose a Realtor, and take his/her recommendation of Lenders. Realtors know from experience which Lenders are reputable and responsible.

You’re likely going to use FHA financing, which requires a 3.5% down-payment. This can be gifted from a relative, but the Seller can not pay it. You can ask the Seller to pay your closing costs, but they can not assist with your required down payment.

How much money do I need to have saved?

Your up-front out-of-pocket expenses will include (1) earnest money -typically 1% of sales price; (2) appraisal ($350-$400); and (3) inspections ($400-$500). For a $100,000 homes, that’s possibly $1900, PLUS your $3,500 down-payment, PLUS closing costs (unless you ask the Seller to contribute to your closing costs ($3,500 to $4,000).

You need to speak to a Lender FIRST to know how much home you can afford. No decent Realtor will take you house-hunting until you are pre-approved with a Lender. Plus, you don’t want to look at $125,000 homes, only to discover that you can only afford a $110,000 home. Trust me – there’s a huge difference in that $15,000 and you don’t want to begin this adventure with a disappointing start.

PLEASE DO NOT check your credit scores on the internet!! These scores are rarely accurate and will only adversely affect your score due to multiple inquiries. Your Lender can help you prepare if you provide all required information up front. You will not make it through the Lender’s Underwriter if you have had an insufficient check in the last two months, regardless of how high your credit score is. Your Lender can guide you and advise you so that you can prepare for a smooth transaction.

The $8,000 stimulus package is a great incentive to purchase your first home now, but it’s not worth it if you’re not ready. Is your job secure? Do you intend to use that $8,000 to buy new furniture for your home or can you set some of it aside for when your hot water heater unexpectedly breaks?

Once the Lender tells you it’s time to shop, select one Realtor to help you shop. Realtors can set up custom searches that are much more efficient than the searches you can do on realtor.com. We also know what to look for as far as homes being compliant with FHA guidelines. We are experienced negotiators and will walk you through the process.

I remember my first home purchase with the fondest of memories. It became my treasured money-pit and wonderful haven. Educate yourself, surround yourself with professionals, and have a great time!