I want to buy a house in 2011!   I’m ready, I think! 

                                                But Where do I start? 

                                            How Much Can I Afford?

 

     There are many components to buying your first home or moving up to a bigger home in this market and it has made many of us a bit nervous!

   

     The first thing you need to do is “Get Practical”.  Talk to at least two lenders locally to get your application started.  This stage of the process is Non-Binding, so it’s to your advantage to get as much information from the lenders as possible, learning the different products and getting familiar with the whole lending process through to settlement.

     Next, you need to make a list of the must haves and the would likes, then start to drive through neighborhoods. 

     If public schools are important, then visit the websites for the varying districts.  Don’t be afraid to visit the schools either.  A clear indicator is to watch the children as they are greeted  (or not!) and to see if there are smiles on their faces!!

     Next, find a reliable, ambitious and honest agent; one who wants to work With You! 

 

    You don’t have to interview ten agents, but call a few or ask your friends – referrals are a great way to find someone you can work with, then see how your personalities match up. 

    Once you have entered into a Buyer Agency Agreement – Remember that your new agent wants a commitment from you as well as you from them! – then have her start focusing on several neighborhoods you have identified.  Preview as many houses as you can, while zipping through as many Open Houses as possible.  (After a few previews, you will be able to see a lot of opens in a short period of time as you will know what you like and dislike.

  

    Don’t get discouraged!  The perfect house will come along, but you may not be ready to move on making an offer.  I tell all my clients, first time or otherwise, IT’S A PROCESS!!  You will know when you are ready to pounce!

     Remember, it’s a process!  Sometimes it will seem that there is nothing for you, then Voila! your dream home comes on the market.  If you are flexible, patient and pragmatic, you will find that one true gem. 

     I can provide further help in the form of websites, etc., so don’t hesitate to contact me via email lynn@lynnstewartsells.com

  

   

Selling Your House? 5 Reasons To Do It NOW!

Posted By The KCM                                                    Blog by Lynn A. Stewart, Realtor

                                                                              W.C. & A.N. Miller, A Long & Foster Co.

                                                                                                 lynn@lynnstewartsells.com

                                                                                      

        The conventional wisdom when selling a home has always been to wait until the “Spring Buying Season”. Over the years, that has seemed to make sense and is now accepted as a good strategy for those who want to sell their house and receive the best possible price. This real estate market has shattered many previously held beliefs. The wisdom of waiting for a spring market is another belief that is about to fall. Here are five reasons why?

1.) Interest Rates Are On the Rise

Interest rates have spiked up rather dramatically over the last ninety days and are now over 5%. Initially, an increase in rates has a positive effect on the market as it forces buyers off the fence. However, it also eats into a buyer’s purchasing power. As rates increase, the mortgage amount a buyer qualifies for decreases. This will eventually have a negative impact on prices.

2.) Your Dream Home Will Never Be Cheaper

If your family goal is to sell your current house and take advantage of the fabulous selection of properties currently available to buy the home of your dreams, DO IT NOW! Prices will continue to soften in most markets. However, if you are buying, COST should be more important than PRICE. Cost can be dramatically impacted by rising mortgage interest rates. Do the math and decide if now is the time!

3.) Buyers Are Out Early

There is mounting evidence that buyers are coming out earlier this year. A belief that now is a good time to buy coupled with the increase in interest rates has started the buying season early.

Pete Flint, CEO of Trulia:

“We’re seeing a national resurgence of buyer and seller activity on Trulia.com. In January alone, we experienced an unprecedented level of site traffic including 11 million unique visitors – which is more than 70 percent year-over-year growth. We’ve are now experiencing 100,000 property views per minute.”

The National Association of Realtors just reported that the number of house  sales increased 12.9% over last month.

4.) Inventory Increases Every Spring

Every year there is an increase of inventory which comes to market as we approach the spring. Here is the number of listings available for sale in 2010.

• February – 3,531,000
• March – 3,626,000
• April – 4,029,000

We believe there will be an increase in these numbers in 2011 as there is a pent-up selling demand created by the weak market of the last few years. You won’t have to worry about this increasing competition if you sell now.

5.) We Are in the Eye of the Foreclosure Storm

While banks are trying to rectify their foreclosure procedures, there is a large supply of discounted properties which has been delayed coming to market. This inventory will be released sometime in the next few months. Foreclosures sell on average at a 41% discount. When released they will be competing with your house for the buyers in the marketplace. If you are looking to sell in 2011, you want to sell before this inventory becomes your competition.

CNN Money ^[4] quoted the leadership Of RealtyTrac on this issue:

“We’ve now seen three straight months with fewer than 300,000 properties receiving foreclosure filings, following 20 straight months where the total exceeded 300,000,” said James Saccacio, CEO of RealtyTrac.

“Unfortunately,” he added, “This is less a sign of a robust housing recovery and more a sign that lenders have become bogged down in reviewing procedures, resubmitting paperwork and formulating legal arguments related to accusations of improper foreclosure processing.”

“We expect a spike in the first quarter,” said Rick Sharga, a RealtyTrac spokesman.

Bottom Line

          These are five strong reasons to sell now instead of waiting until later in the year. Sit down with a local real estate professional today and decide the best options for you and your family.

                                                          Lynn A. Stewart, Realtor, Licensed in MD, DC & VA

                                                                                    Moving Your Home “For Sale” to “Sold”

                                                                                    lynn@lynnstewartsells.com   301-580-4552

Credit Inquiry: Soft pull vs. hard pull

A soft credit inquiry or pull does not hurt your credit score, but a hard credit does!

Sourced from Lending Tree

 

On a credit report, when a third party looks at your credit score, this is called an inquiry. All inquiries, however, are not created equal. Some hurt your credit score, and some do not. An inquiry known as a soft inquiry does not affect your credit report, but a hard pull does.

Soft inquiry
A soft inquiry, or soft pull, is a term used to refer to an inquiry into your credit history that does not adversely affect the credit score. Often, you are not even aware that there has been a soft inquiry on your credit report. For example, if you receive a solicitation in the mail offering you a credit card, the credit card company has most likely conducted a soft pull to see if you qualify. When mortgage lenders pre-approve you for a loan, they initially use a soft pull. Potential employers use it as a part of background checks, and your current credit card companies use soft inquiries to check up on you. Banks use them to verify that you are who you say you are when opening an account. If you check your own credit report, which you can do for free once a year, this is done with a soft pull. Most of the time, you do not even know when they occur, and they do not affect your credit report.

Hard pull
A hard pull on a credit report is different. It does affect your credit score. Anytime that you are actually getting a loan or a new credit card, the lender conducts a hard pull on your credit report. This stays on the record. It also lowers your credit score by about five points for six months. For this reason, it is important to guard your credit report from too many hard pulls. If you get a store credit card just to save 10 percent on a single purchase, you have hurt your credit score. That is probably not worth the 10 percent savings. Some banks even use a hard pull if you are opening a savings account, so be sure to check your potential bank’s policy. Additionally, the incentives that credit card companies offer for signing up may not be worth the hit to your credit score.

A good rule of thumb for your credit report is to try to avoid any inquiries that are considered hard pulls. By limiting them your credit will be in good shape and you can qualify for the best interest rate available to you when it comes time for you to apply for a loan that you truly need.

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