Author: Ali Palacios - Broker

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Will higher mortgage rates affect your ability to purchase?

Posted on by Ali Palacios - Broker

Recently, people have been asking if mortgage interest rates will be going up.

That’s a good question. And it’s good to be concerned about it if you’re considering buying a home in the near future.

There’s no way to definitely answer this, let alone how much the rates will go up. They go up and down constantly. If they go up (or down) a little bit, that won’t really affect you all that much.

Deep down, the concern is of course whether the rates will go up a lot… enough to impact how much home you can afford, or to even be able to qualify for a loan at all.

The one thing we can say for sure is that mortgage rates have been historically low for quite some time now. Literally for years and years.

At some point, they will probably go up a good amount. One could even argue that they need to go up. But let’s not get into that debate…

So let’s get into what the core fears are when people are asking about this…

If rates go up, a buyer could:

  • Pay more for the same house they could have gotten for less per month if they had bought before the rates went up.
  • Not be able to afford the same homes on the market they could have afforded before rates went up.
  • Possibly not even qualify to buy a house at all, depending on their financial situation.

So, what is an agent to advise?

To say that, “You should buy now, or you will miss out due to interest rates rising…”, can lead to fear-based decision making. That isn’t something a good real estate agent makes a habit of doing with their clients. Or at least shouldn’t.

Besides, the interest rates may not go up enough to affect you, if at all.

So, the best way to look at it is this…

If the thought of interest rates going up concerns you…buy now. Or at least sooner than later. Not because of fear that rates may go up. But because you are dealing with a known quantity, as opposed to the unknown. And because the mere fact that you are concerned speaks volumes about what you want to do deep down inside.

This is all pretty general advice…

If this has been concerning you, give me a call, or just reply back. I’d be happy to hear more about your situation and needs, so that I can advise you more specifically.

P.S. If you’re thinking about buying sooner than later, it might make sense to lock in an interest rate now. If you have a mortgage advisor, consider discussing this with him or her. If you don’t, just ask me and I am glad to recommend a great mortgage lender.

Would you please bother me?

Posted on by Ali Palacios - Broker

“I didn’t want to bother you. I know how busy you are…”

I hear that from past clients, friends, and even family, all the time.

But, at that point, it’s too late. And I’m not talking about it being too late for me to make money…

I’m talking about mistakes having been made, and regrets seeping in. And, at that point, there is nothing I can do to help.

So, it just occured to me that it would probably help if I just reached out to you, to let you know that you can and should call me. Anytime. For any real estate need or question. Before you find yourself in the same position as some other folks.

I know how busy you are, so I won’t go into every detail, of every scenario I’ve seen happen in this e-mail.

Here’s a short list, just to give you an idea…

But please, if you want more insight on any of these, give me a ring, or reply to this e-mail, and I’m happy to get into more detail with you.

1. You just want to go see a house that is on the market…

(Yes, even if you aren’t serious about buying it. I won’t be pushing you to buy the house. I will be protecting you from making any regrettable decisions. Unfortunately, I hear from people after they got swept up in the moment and bought a house, and they are feeling regret, or have questions about the process or their decision. At that point, I can’t chime in. Because another agent represents them.)

2. You want to know how much your home is worth.

(Yup, I know all about all of those websites that show you the value of your home. And I know how inaccurate they are. Whether you are just curious, are wondering if it makes sense to sell, or need to get a handle on your net worth…just call me. I will give you an accurate value of your home. My pleasure. Not a bother at all.)

3. You are considering a home improvement project.

(Almost any project you choose to do will certainly raise the value of your home. But, will it raise the value more than it cost you? Better to know whether or not it is money worth spending before you even start.)

4. You are thinking of refinancing.

(Being in the business, I get to know who the good lenders are, and who the not-so-good ones are. I hear way too many horror stories from people about the process being horrendous with such-and-such bank. Or that they felt duped because they were quoted one rate, and were ultimately given a higher rate. Just call me, and I’m glad to give you the names of some people I would trust handling your needs.)

5. You don’t even work in my area.

(Even if you live hundreds of miles away, I can help… before you decide to buy or sell a house. I can’t chime in once you are represented by an agent. But if you call me before, I can remain involved and add my two cents, as long as I have referred you to the agent you use. And I can really help find you a great agent in your area. It’s not always the one with all the signs and sales! Let me do some digging before you just hire anyone.)

————-

Like I said, this is not a thorough list. I just wanted to give you a sense of some things you may not have wanted to “bother” me with, that I would never consider to be bothersome.

So, would you please “bother” me? It will only bother me if you don’t!

Avoid These Mistakes Before Your Closing Day

Posted on by Ali Palacios - Broker

Don’t let a small mistake ruin your chances to close on your home. Lenders are checking employment and credit up through the day of closing. You spend days going through the finance procedure and you finally received approval for a mortgage loan. It’s time to celebrate, right?

Not yet! Your lender will recheck your credit right before closing. Don’t give them a reason to deny your loan. Nothing is official until everything is signed and funded. Avoid these most common mistakes:

1. Changing jobs

Changing employers could mean delays due to employment and salary verifications or possibly cause your lender to deny your loan. If you can wait, wait. It’s not worth the risk.

2. Making a big purchase

You need new furniture, a new car, a boat etc. Your debt-to-income ratio is an important factor when being considered for a loan. If you add to your debt by making a large purchase, you risk exceeding the ratio that your lender finds acceptable.

3. Opening credit accounts

You might apply for a credit card so you’re ready to buy furniture for your new house. But similar to taking on new debt, applying for a new credit account can harm your mortgage approval. The credit inquiry necessary for the new account will ding your credit score a few points.

 

When in doubt it’s best to consult your lender before making any changes to your finance.

Lentil Soup a la Fadi’s

Posted on by Ali Palacios - Broker

Lentil Soup a la Fadi’s

I’ve been trying to replicate Fadi’s lentil soup for a while. I’ve tried lots of recipes. This seems to be a winner. Give it a try!

  • 2 tbsp oil
  • 1 large onion, chopped
  • 1 cup diced or shredded carrots
  • 1/2 cup diced or shredded celery
  • 3 cloves of garlic, finely chopped
  • 1/2 cup of white rice
  • 1 1/2 cups of red lentils
  • 8 cups of chicken/vegetable stock
  • 1 tsp turmeric
  • 1 1/2 tsp ground cumin
  • Handful of chopped flat-leaf parsley
  • Juice of half a lemon
  • salt and pepper to taste

Saute veggies in olive oil until tender. Add everything else except lemon juice. Cook until lentils and rice in tender. I just threw everything in a slow cooker on low for 6 hours. If you cook it on the stove they can be ready in less than 1 hour. They cook super fast. Add lemon juice at the end.

Wire and mail fraud

Posted on by Ali Palacios - Broker

Unfortunately there are scammers everywhere and there are many that involve real estate transactions. Here are a few to avoid:

Wire Fraud

Hacker will send you an email acting as your Realtor® or title company. They will provide wire instructions for your down payment and closing costs. These emails look very real.

The hacker will provide their bank information and the buyer/seller will send the funds to the hacker’s account. A Realtor® (including myself) will never send you wire information.

One of the way to avoid this is by calling the title company and confirming the banking information before you initiate a transfer. Alternatively, you can bring a cashier’s check to the closing.

Get verification of the transfer ASAP. If you suspect a scam, have the  receiving bank freeze any withdrawal attempt of the newly deposited  funds—if you’ve reached the bank in time, that is.

Mail Fraud

You will get lots of mail from different people offering to submit your homestead application or offering you copies of deed or other documents.

Scammers are contacting new home buyers with a seemingly legitimate solicitation offering to send a copy of their property deed and other information for a fee. Those documents are mailed to you free after a sale or transfer. And if you need another copy, you can order one through your county clerk’s office for a few dollars

You might get an offer for a property profile, which comes with information such as transfer histories, property lines, county tax amounts, even the number of rooms … basically everything you need to know about your house.  It’s all information that is either not needed, or already known.

Generally, if you receive a solicitation asking for more money after your closing, it isn’t legitimate. But if you aren’t sure or want more information, contact your county clerk’s office or your real estate agent.

Moving Check List

Posted on by Ali Palacios - Broker

It’s Finally Time to Move!

Below you will find a moving checklist

2 months before

  • Start sorting your belongings into “what to donate” and “what to keep” piles. Start getting rid of items you don’t plan on taking to your new home.
    • Sell/Donate to your friends
    • Hold a garage sale
    • Sell items online (Craigslist, Facebook, eBay etc.)
    • Donate to charities (get a tax receipt)
  • Avoid the last-minute pile of trash on the curb—start throwing away anything that can’t be donated, sold or gifted.
  • Make a room-by-room inventory of your home. Note and photograph any existing damage to your furniture, so you know who’s responsible for what on delivery day.
  • Research your moving options, and request on-site quotes from at least three moving companies**
  • Make a “moving” binder, which will include all your important contact info, estimates, receipt and other important documents.
  • If school districts are being switched, make sure you make the appropriate arrangements to transfer the records to the new school.

6 weeks before

  • Purchase bubble wrap, boxes, packing tape, and other necessary supplies.
  • Start using up existing stock of cleaning supplies, frozen foods, and any other items that cannot be moved, particularly on a long-distance relocation.

1 month before

  • Pack occasionally used items, number and label each box with the intended room and its contents.
  • Put important files and jewelry in a box, which you will move yourself personally.
  • Set aside a box with all the items required on moving day, such as small pieces needed for re-assembling furniture, tools, etc.
  • Request a copy of your family’s dental and health records  from your current provider(s).
  • Collect things you have loaned out and return borrowed items.

2 weeks before

  • Choose your preferred moving company and confirm the arrangements.
  • If you are changing banks, do not forget to close out safety deposits.

1 week before

  • Switch to another pharmacy and/or refill prescriptions.
  • Finish your general packing a few days before moving day.
  • Pack suitcases with clothes enough to wear for a number of days.
  • Let your credit card companies, employer, banks, insurers, and utility companies know about your move.
  • Transfer or start and stop utility service at your new and old addresses for the following:
    • Electric
    • Water
    • Gas
    • Telephone
    • Cell phone
    • Cable/Satellite and internet
    • Sewer
    • Trash collection
  • If you are using a moving company remember to discard aerosols, flammables, ammunition or bottled gas. Be sure to check with your moving company for other prohibited items
  • Make arrangements to rent a storage unit, if necessary
  • Schedule/hire a cleaning company for the week of your move.

A few days before

  • Empty and clean your refrigerator.
  • Once again, call the moving company and reconfirm the arrangements.
  • Keep cash in hand if you plan to give the movers tips.
  • If you’re switching banks, remember to clean out your safety deposit box.
  • Fill out the change of address form either at the post office or online at usps.gov.
  • Pack a bag of essentials for moving day and your first night, including a change of clothes, toiletries, napkins and towels, soap, shower curtains, important documents and electronic devices.

Moving day

  • Remove the beddings
  • Leave a forwarding address and other contact information for the new residents; after all, they could have a few questions.
  • Walk through your home one last time, before the moving truck heads out, to ensure nothing has been missed.

**It’s important to research movers and ask the right questions before you decide in a company.

Questions to Ask:

  • Insurance? – Basic insurance for most companies is 60 cents a pound. You can buy your own insurance as well.
  • Binding Quotes? – Is this quote binding? Is it a “not to exceed” quote?
  • Transfers? – Will my goods be on the same truck for the whole trip or will it be transferred to another truck at some point?
  • Extra Charges? – Does the quote include awkwardly sized objects, parking, storage, fuel, etc.?
  • What payment forms/terms do you accept? – Be leery of cash-only companies.
  • Mover or Broker? – Are you talking to the mover or to a broker working for moving companies?
  • Who’s Responsible? – If anything is damaged, who is accountable for the damage?

Many moving company tend to have bad reviews. The most common complaints include hefty price increases over original estimates, missing items, and goods held hostage until additional payment was made.

 

Here are the most common moving scams:

1. Low Estimate, Inflated Price

The most common scam is the bait-and-switch tactic. Movers will offer a low-ball estimate then on moving day you are told the load is larger than expected and they will need to increase the price. Some movers will keep your items hostage until additional funds are paid.

Ask what the quote covers. Movers can inflate the price by charging you extra for packing supplies or moving blankets.

Research the company and ask for referrals. Ask the mover to come by and review the items to be moved so there are no misunderstandings. Do not rely on over the phone quotes.

2. Lost or damaged items

During a move, valuables like jewelry and antiques might “disappear.” Its best for you to pack your valuable items in a box you can personally move.

Items also could get damaged. You can acquire insurance to cover damages or loss.

3. Hourly Estimates

When getting hourly quotes, ask in advance how many men will be present and how many hours are expected. You might get one company that will send out 4 movers and it might take 2 hours; another company might send 2 movers and it can take 7 hours.

Remember if it sounds too good to be true, it probably is.

4. Large Deposit

A mover may ask for a small amount of money in advance but if they request a large deposit, be concerned. The best company will require payment once your items have been delivered.

If you have anything else to add let me know :)

What is an option fee?

Posted on by Ali Palacios - Broker

In Texas an option fee is money paid by a buyer to a seller for the option to terminate a real estate contract. Option fee funds are not earnest funds. The option fee and the time allotted to terminate is discussed in section 23 of the resale contract. sample 1-4 resale contract

The termination option period gives the buyer are given time to fully evaluate the condition of the property and perhaps renegotiate the initial offer based on inspections, needed repairs, or other considerations. During the option period, buyers may either terminate the contract or proceed to purchase the home.

This fee is due within 3 days of the effective date of the contract. The payment is made out to the seller and should be delivered to the seller within the allotted time or the buyer WILL NOT have a termination option period. If the buyer does not have a termination option period and they choose to cancel, the buyer might lose their earnest funds.

 

The option fee and numbers of days allotted for termination are negotiable. Typically you will see an option fee of $100-$300 for 7-10 days.

To avoid problems:

  1. Make your option fee payment by personal check or cashier’s check. Do not pay cash
  2. Make the check out to the seller on record. Do not make it out to anyone else, including the real estate agents involved.
  3. Deliver the payment within the 3 days allowed
  4. Request a receipt reflecting delivered.

The option fee will or will not be credited towards the buyer’s purchase if they proceed with the purchase. If the buyer should cancel the contract, they will lose this fee.

Can the option period be extended?

Possibly. Both the seller and buyer have to agree. The extension should be completed in writing and will involve an additional fee to be paid upon execution of the extension. Usually this occurs if additional inspections need to be completed or if inspections were not completed within the set amount of time due to a delay in utilities being installed. If you feel that you need an extension, speak to your Realtor® and discuss your options.

During the option period, the seller can continue to negotiate and accept back-up offers from other potential buyers.

What expenses will I incur out of pocket before closing?

Posted on by Ali Palacios - Broker

The first step in purchasing a home is to get pre-approved for a loan. The lender should disclose and review all the typically closing cost, down payment and other common fees. Most of these are disclosures in your Loan Estimate (see sample copy below). Some of these fees are paid after a contract is executed (agree upon and signed) but prior to closing.

Sample Loan Estimate

The following is a list of the typical fees a buyer will incur prior to closing:

 

Earnest Money Deposits: This is a cash deposit attached to you purchase offer. The amounts of this deposit varies but expect to pay at least 1% if you are financing the balance and maybe as high as 10% if you are paying cash. Although earnest funds are not required they are expected. If your offer is accepted and you proceed with the purchase, this deposit is applied towards the purchase of your property.

Home Inspections: Every buyer should have their home inspected. This is usually done within 7-10 days of the executed contract. The cost will vary based on the inspection completed and the size of the home. The most common inspections are a general inspection that may run approximately $450 and pest inspections will typically cost $75-$150.

In some cases you might have to inspect the foundation, a water well, a septic tank, etc. and these all have a separate cost.

Option Fee: This is a fee that is paid to the seller for the ability to have your inspection period. This fee will allow you to inspect the home within a given amount of time and back out of the agreement if you do not like the results. The fee varies but typically runs $100-300 for a 7-10-day period. Money well spent if it allows you to back out of the contract as a result of a bad inspection.

These funds can be credited to the purchase of your home if you proceed with the contract; if you decide to back out, you forfeit the funds.

Appraisal: If you are financing your home purchase, the bank will want to appraise your home. The purpose of an appraisal is to make sure the home you are purchasing is worth the amount you agreed to pay. The bank will not want to finance 100K for a home that is valued at 80K.

Appraisals typically cost approximately $450-$550. Your agent should coordinate with the lender so that this is ordered after the inspection period has passed.

 

What are earnest funds?

Posted on by Ali Palacios - Broker

Earnest funds are one of a few funds you will need before you close on your home. It can be found in section 5 of the sales contact.

Earnest money is a deposit made to a seller showing the buyer’s good faith in a transaction. Typically it’s equal to 1% of the sales price. These have to be deposited with the title company within 3 days or less of an executed contract. These funds are held by a title company in an escrow account.

Once a buyer and a seller enter into a contract. The buyer may or may not be able to reclaim his or her earnest money, depending on how the contract is phrased. Contracts will typically have contingencies written in to protects the buyer and allows them an out if the home’s inspection is unacceptable or if the home does not appraise for the agreed upon sales price.

The contract does not protect the sellers from these unknowns but they take the home off the market while the home gets inspected and appraised. To prove that the buyer is serious, they will offer earnest funds, in good faith for the time the home is off the market. If the seller terminates the deal, the earnest money will be returned to the buyer.

These funds are not in addition to your sales price; The buyer receives a credit for these funds at closing. 

  • Never give an earnest money deposit directly to the seller. The check should never be made out to the seller. It should be made out to the title company.
  • Get a receipt.
  • Don’t pay the earnest funds in cash. These need to be paid by personal check or cashier’s check

There are ways that you can lose your earnest money deposit.

  1. Default of contract. Are you trying to cancel the contract outside your options? This might be default and could cost you the earnest funds
  2. You waived your contingencies –  If the buyer waives their contingencies, they will lose their earnest funds if they should cancel or not be able to obtain financing.
  3. The buyer does not meet the deadlines specified within the contract and the seller and buyer can’t reach an agreement for the contract expires. Extension must be made in writing and signed off by both the seller and the buyer
  4. The buyer gets cold feet and he/she cancels the contract outside of their option period.
  5. The buyer wasn’t able to get financing due to reasons that could have been avoided:
    1. An increase in buyer’s debt (purchase a new car, purchased furniture, made any large purchase before closing)
    2. Quits his/her job
    3. Make a mystery deposit into their account and won’t explain why
    4. Co-signs a loan
    5. Opens new credit cards
    6. Spend the funds earmarked for your down payment and closing costs

When in doubt speak to you lender!

Upon cancellation, the sellers and buyers are asked to sign mutual earnest funds release form. If an agreement cannot be reached, the party holding the earnest money deposit will continue to hold it until an agreement is reached.

Remember before you sign a contract, chat with your agent and make sure that you cover all your options.

sample 1-4 resale contract

7 Secrets About Short Sales You Need To Know Before Making An Offer

Posted on by Ali Palacios - Broker

Are you interested in buying a short sale?

Even if your aren’t, and you’re in the market to buy a house, you should know about “short sales”. There’s always a chance that a house you fall in love with will be subject to a short sale.

So, do you avoid a short sale like the plague? Or do you roll up your sleeves and make an offer?

You Probably Know This, But Just In Case

A short sale is when a homeowner sells their property for less than the amount they owe.

Not that the homeowner can just agree to a price and sell you the house for any old amount. They will need approval from their lender.

Not too many years ago, short sales weren’t really something you’d see on the market. Then the market tanked, and it became a solution for many people who owed more than they could sell their house for. It was a better alternative than foreclosure, for homeowners and for lenders.

At this point, short sales have been around for a quite while. And they keep on showing up. Maybe not as much as they have in recent years, but there doesn’t seem to be an end in sight. Unless the market goes back to the heydays of the early 2000s.

Which means you need to at least be aware of them, and know whether or not you want to deal with trying to buy one.

So, let’s get into some seven things you should know in case the house you want to buy is a short sale.

1. Not Every Short Sale Is A “Deal”

A lot of buyers say that they want to go after short sales, because they want to get a good deal.

Just because a house is being sold “short” (for less than the owner owes), does not mean it’s a good deal.

If there are equal options for you to choose from on the market that are not short sales, it may not make any sense at all to go after a short sale.

You really should only go after a short sale if you are getting a good deal. Or, if there are no other options, that are as good or even better, for about the same price. It isn’t worth the hassle.

2. Even If It Is A Deal, You’re Going To Pay For It

You’re going to pay for it in patience. Lots and lots of patience. Which boils down to time. And time is money.

The time you’re waiting for a short sale to be approved could cost you in many ways. Just to name a few:

  • You might miss other opportunities you would have liked to go after.
  • You might incur costs because you need to line up temporary housing while you’re waiting for the deal to close.
  • You could spend money on due diligence (inspections, mortgage process, etc.) all for nothing, if the sale never goes through.
  • Your mortgage rate could go up during the process of waiting.

Lenders have gotten a bit better and quicker about the process at this point. When this trend first started, they were swamped, and it was all kind of new for everybody. So it took time. Now that the kinks have been worked out, it can happen more quickly. But not necessarily. There is no way to know how long it will take. Err on the side of caution, and plan on it taking anywhere from six months to a year. But it’ll probably be more like between three to six months.

Regardless, it will almost always take longer than a straight up sale between you and a homeowner who does not need to sell their house short.

So, again, the deal better be worth your time and patience.

3. Expect To Buy It “As-Is”

Almost every seller in the world wants to sell their home “as-is”. Meaning they want to negotiate that the buyer won’t further negotiate any issues that are found in a home inspection during the process.

But the reality is, it’s pretty rare for a homeowner to sell their home truly “as-is”. There’s almost always some sort of concession or repair made, once a buyer does their home inspection. No matter how firm the seller wants to be, or how good of a price they gave the buyer, it happens. And sellers will typically agree to some, or even all of the requests made by a buyer. It’s just easier than losing the deal.

But it isn’t always just home inspection issues. It could be something related to permits, or certificates the town requires, for instance.

In a short sale, the lender isn’t going to step and fix anything, or consider a credit for repairs usually. And they aren’t going to get any permit or certificate issues resolved. It’s hard enough getting them to agree to the lower-than-owed price they accept. So don’t expect it. Don’t even hope for it.

And the owner probably isn’t in any financial position to do any repairs, given their situation. And frankly, they probably are pretty much checked out at that point anyway. They want nothing to do with what you want. They get nothing out of it. Unless they are that desperate to just get this chapter of their life over with, and somehow figure out a way to make some repairs.

Point is, expect to take on whatever problems the house comes with…

Which means, again, it better be a pretty good deal.

4. Don’t Be Surprised If The Lender Counteroffers

Unfortunately, not all real estate agents or homeowners even get the lender on board with the fact that they’re trying to sell the house short.

So, you could negotiate what seems to be a great deal with the owner, only to have their lender come back and counter your offer for way more than the house was even listed for.

So, let’s say the house is listed for $250,000. You negotiate it down to $225,000. But then the offer is submitted to the lender for approval, and they counter at $325,000…probably because they are owed that much.

This strikes a lot of buyers as crazy. How can a lender do that!? The house was listed for less! Well, they weren’t in on the process when the owner and agent made those decisions. Now they are.

It might take some time for them to come around.

Many buyers get so frustrated that they back out of the deal because of the lender not coming to agreement on the price. Only to see the lender eventually lower their expectations and accept an offer for the price the buyer had offered… or even less!

So, it might make sense to just hang in there and wait the bank out. Stand your ground. Be patient. Wait.

Or, let another buyer or two loosen the jar lid, and throw offers at the property. Let them get frustrated and get the lender to see the light. Then step in with your offer after one or two other buyers failed to get from offer to a closed deal.

But that does take patience. And some amount of strategy.

And there is no guarantee…

5. The Deal May Never Be Approved

Whether or not a short sale is approved is out of your control.

There are a lot of factors.

One of the most frustrating things is that a lot of owners who are trying to sell short do not put in the effort they need to. There’s a lot they need to supply in terms of information. And their motivation is minimal. Beyond that, they are stressed out and probably depressed. So there are times that the homeowner delays the process, if not kills the process altogether.

It can get to a point where they progress too far, and fall into foreclosure. And that process can drag on for quite some time. Sometimes, owners feel it would be even better to just get foreclosed. It buys them more time. And a short sale, while better for them than a foreclosure, is no bed of roses. It is still going to negatively affect them.

And a lender could simply not agree to a short sale. Maybe the owner is in better financial shape than they feel is necessary to approve a short sale. Or perhaps they just decide it makes more sense to foreclose.

It can be frustrating. Your hands are tied. There’s a lot of hurry up and wait. And very little you can do to get anyone to move faster. Even constant follow-up, complaining, or threatening to kill the deal will not make the process move faster.

So, just be prepared that you could waste your time, all for nothing. And you will spend money on your end of the process that will never be returned.

6. Be Prepared To Move Fast

When and if a short sale is approved, the chances are that the lender will give you a short time to actually close the deal.

So, while they could take months and months just to say yes…they might give you two weeks to close the approved deal. And if you don’t, it could throw the process back into review.

The biggest hassle here is with your mortgage (if you are borrowing money to purchase). Your lender needs some time to get your loan approved and “clear to close”.

You could be super diligent and get as much of your mortgage process done months ahead of the short sale being approved, but there is still a lot that needs to be done in the final stages. So make sure you’re working closely with your lender, and be good about getting them everything they need ahead of time.

7. Hire A Real Estate Agent Who Is Okay Working With Short Sales

It’s so important to work with a real estate agent who is willing to be in it for the long and hard haul…

Not every agent wants to deal with short sales. This is understandable. Agents don’t get paid more for dealing with this type of sale. In fact, they often get paid less. And they are more work. And they are less of a guarantee. And agents work with very little guarantee that their efforts will result in compensation as it is.

So, do be aware of this, and thoughtful about it.

So, when you hire a buyer’s agent to work with you on a short sale, you need to also be in it with them for the long and hard haul! It is the right thing to do.

And it will pay off…

Because so many buyers give up on getting a great deal on a short sale because an agent will persuade them to avoid going after one altogether, or encourage a buyer to move on if the process is taking too long. Again, not judging…they have valid reasons for being that way. But it is important for you to know.

One thing your buyer’s agent should do before you make an offer on a short sale is to assess whether the listing agent on the property knows what they are doing. Many do not. And in those cases, you might as well not even waste your time.

As scary as this all may sound, short sales aren’t something you need to avoid. Just know what you’re getting into beforehand.

And be patient. You will pay for the deal in patience, but knowing what you know now, it should be worth every penny of patience you pay.

 

Source: http://www.bestrealestateblog.com/7-secrets-short-sales-need-know-making-offer?m=JnojPGPgYwNqRUqKIeuc