Ellicott City Realtor Catonsville Realtor

Recently, I've been working with a Buyer who was Pre-Qualified for a VA Loan.  (My Buyer agreed that I should share her story in the hopes of educating others).  My Buyer had a past Bankruptcy, about 5 years ago.  After the Bankruptcy, she was late on two mortgage payments, which was about 4 years ago.  Clearly, she was experiencing some financial distress.  She subsequently sold the home and has maintained a clean credit history since.

Now she's saved enough money, and is ready to purchase another home.  She went to a lender and got Pre Qualified for a VA Loan.  The lender told her that based on her situation, that she was Pre Qualified, but that the loan may or may not go through.

Based on what a Lender is seeing from my Buyer, they told her they could do the loan, and provided her with a Pre-Qualification Letter.  This is where my Buyer stopped listening, and that was her error, she knows.  Because this does not mean that the Lender will do the loan.

My Buyer, however, hears this as Lender legal-speak, and proceeds to look at homes under the assumption that she has been approved for a loan.  Together, we find a house.  Now that we are approaching underwriting, the truth is out.

My Buyer meets all of the VA Loan Programs qualifications for income, assets and credit history and score.  But because of her past financial difficulties, this loan cannot be automatically underwritten - it must be underwritten manually.  We are finding out that Lenders are backed up with manual underwriting, and these loans typically take much longer to fund, if they fund at all.

Here are the real questions:  Was my Buyer really Pre Qualified?  Should she have waited to look at houses until she got an approval?  (The problem is that you have to have a house under contract in order to get an approval).  The answer is probably.  The issue is not that she doesn't meet VA Guidelines;  the issue is that, unlike the past, the Lender is concerned that this loan could not be sold on the secondary market.

What we as Realtors need to understand, and what we must convey to our Buyers and Sellers is that when a Lender says that a Buyer is Pre Qualified or Pre Approved but that the loan may or not fund, unlike loans of the past, this time they mean it. 

A series of weekly tips for sellers that are simple, quick and designed to bring you top value.

• Make sure stairways are safe by freeing them of toys or slippery mats, securing the handrail, and installing good lighting.

If you'd like more information about preparing your home for sale, feel free to contact me.

If you have any questions about this video, feel free to give me a call, or click here to request more information.

5 Bedroom Essex Home on Turkey Point – 400 Feet of Waterfront on Greyhound Cove – Water Views on Three Sides – 2008 ‘Custom Home of the Year’
$2,225,000









This home is for those who demand the very best in a waterfront lifestyle.

• 5 Bedrooms
  
• 5 ½ Bathrooms
  
• 2 Master Bedrooms
  
• Laundry Room on Bedroom Level
  
• Covered 2 Story Gazebo
  
• Full Scale Office with Several Workstations, Kitchenette and Boardroom
  
• 7500 Finished Square Feet
  
• Swimming Pool
  
• Real 24’ Working Lighthouse with Panoramic Water Views
  
• Rockaway Beach Neighborhood, where Turkey Point becomes Seneca, just steps to Turkey Point Park

Click here to request more information.

Thursday Q & A - Your Maryland Real Estate Investing Questions Answered

Q:  How are you able to have a full time job and manage multiple Real Estate Investments?

A:  Before you ever get started in Real Estate Investing, the first thing you need to do is have members on your team.  These are people with expertise and knowledge in their field that are aware of your goals, and are willing to help you reach them.

This might give you an idea of what your team should look like:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate Professionals
Title Company
Appraiser (until you gain experience)
Property Management Company

Legal Consultants
Attorney
Insurance Advisor

Financial Consultants
Mortgage Banker
Financial Advocate
Accountant

Contractors
Engineers / Contractors
Home Inspector
Handyman

Support System
Partner, Spouse, Family
Business Owners
Other Real Estate Investors 

Recently I was near the completion of one of my rehab projects.  This is a hobby I really enjoy in addition to residential Real Estate Sales.  I was almost ready to put it on the market when I was approached by a lady from the neighborhood.  She said she had always admired the home and wanted to look through it.  Of course, she loved it and wanted to buy it and said she could pay cash.

I'm a Realtor, and of course I was going to list the home in the MLS, and pay a co-op fee.  Also, in the state of Maryland, I must disclose in the contract of sale that I am a Realtor and the owner.

We set up a meeting to do a contract.  The Buyer says she thinks my price is very fair and she knows the prices in the neighborhood.  She comes to our meeting with a deposit check and bank statements to prove she can pay cash.

I'm excited and nervous at the same time.  I'm excited because this looks like it's going to be a quick sale.  I'm nervous because I want her to feel like she's being treated fairly and honestly.  I told her she had the right to choose a Realtor to represent her, and if she chose to do so that I would pay for that Realtor's commission.  I made it clear that I would not be able to represent her as the Buyer in this transaction.  She said she would prefer to just deal with me directly and continue without representation.

Here is where some Realtors might just go about signing the contract and getting the absolute best deal they could get for themselves.  It is the perfect scenario - a cash Buyer who is willing to pay full price and not wanting representation of their own.  Being thorough, I still opted to go over all of the comps in the neighborhood with her.  Even though she already knew about the recent sales, I felt it was important that we review them together.  I agreed to her requests to get a Home Inspection and a Termite Inspection, and I offered to pay for half of her closing costs.  I also went over what representation means, and made sure she understood that she was entering this transaction without representation.

This is always a balancing act as a Realtor.  Most consumers are unaware of the laws in the state of Maryland regarding Real Estate representation, and all of the ramifications.  Here in Maryland, the laws are very clear.

If you're a Homeowner looking to sell your home and you hire a Realtor - lucky you!   These are the steps and risks your Realtor takes on your behalf, using all of their experience and knowledge of the laws and statutes to save you time, money and potential negative consequences down the road.

A series of weekly tips for sellers that are simple, quick and designed to bring you top value.

• If your wall-to-wall carpet looks fine except for a couple of worn spots, have it professionally cleaned and cover the imperfect areas with small rugs.

If you'd like more information about preparing your home for sale, feel free to contact me.

Click on Full Screen to view this report.
If you have any questions about this report, feel free to give me a call, or click here to request more information.

Maryland Real Estate Market Activity, February 22, 2010, New Listings, Pending Sales, Days on Market

Beautiful Woodbridge Valley Home in Catonsville
349,900

 

 

 

 

 

 

 

 

 

 

 

 

• 4 Bedrooms
• 2 ½ Bathrooms
• Wood floors
• Gourmet Kitchen with Breakfast Area
• Replacement Windows and Doors
• Finished Lower Level with L-Shaped Recreation Room
• Beautiful Landscaping, Rear Fence and Covered Patio
• Lot Size is more than Half an Acre
• Immactulately Kept!

Click here to request more information

Q:  How do I get started in investing in Real Estate?

A:  We're all getting blasted with emails about how to invest, particularly in foreclosures.  It doesn't matter what type of investment you choose to do - the offers are out there on the TV, radio, email....

Before you spend any money on books and cd's and videos and memberships and subscriptions....give me a call.  I'll share with you my knowledge, experience and expertise for free.  No obligation.  No commitment.

Why would I do this?  To spare you the headache, heartache and expense of going down the wrong path.