This week we have a “Guest Post” written by one of our Mortgage Professionals, Jennifer Miller with Sierra Pacific Mortgage Company.

To Buy or Not to Buy?

You’ve heard the news reports on the housing market in our lately – low inventory, good prices, quick sales – and maybe you’re wondering where you fit into this latest market swing.

We should probably start with the news reports.  Yes, it’s true that in some price ranges, namely homes priced under $300,000 there is low inventory.  The same cannot be said for higher priced homes, especially those priced above $500,000; there are still plenty of homes available at that price point.  And yes, the appraisals are coming back at reasonable levels; meaning that in many cases the appraised value and the sales price are matching up; although that’s not always the case.  As far as quick sales, well that depends on how you define “quick”.  Most people are closing in the normal 30 to 45 day range.

When you’ve got a home to sell…

So, should you pursue your dream home, or the home that’s closer to work so that you can eliminate that 45 minute commute you face twice daily?  Putting your house on the market requires effort, commitment and sometimes, money.

The effort and money come in once you’ve had a Realtor to your home for a preliminary meeting.  The first order of business is deciding whether you feel comfortable listing your home at a price comparable to what other homes in your area are selling for.  If the answer is yes, then it’s likely that your Realtor will want you to change or improve your home in a few areas.  You may need to “de-clutter” and pack away your belongings that you’re not using every day to make the home appear larger.  You may be asked to paint, install new carpet or work on the landscaping to improve the homes’ curb appeal.  Depending on how handy you are; you may be able to do some, or all of those things yourself; without having to pay a professional.  Certainly, that is the least expensive way to go.  If you can’t do these things on your own or if you’re too busy to attempt them you may find yourself shelling out up to $2,500.00 to cover these costs.

This is where the commitment component kicks in: if you’re not really committed to selling your home, chances are that you’re not going to be very motivated to get all this work done.  Realtors are fairly savvy these days when it comes to assessing their clients’ needs and wants.  If you want a nicer home but you don’t really need one your Realtor may decide that you’re not the right client for them.

What if you’re not currently a home owner?

Maybe you’re a young professional who’s never owned a home before, or maybe you owned a home previously in another state or at a different time in your life.  If you’re wondering whether a good time to buy is now, the short answer is yes!

As I said at the beginning there is some low inventory with homes priced under $300,000.00; however, if you don’t look for a home then you surely won’t fine one, and there are homes to be found even in that price range.  So what else do you need to consider in a home purchase?  First, do you have enough money to buy a home?

The Price Tag…..

There are several loan programs available that will get you into a home for zero or a very low down payment with reasonable interest rates.  But you will need to have some cash to cover expenses like the appraisal ($450) which is paid upfront and out-of-pocket in the home buying process.  You will also need money for closing costs, which come due on the day you sign the promissory note at closing.

If you don’t have enough cash to cover the closing costs, talk to your realtor about negotiating these into the sales contract.  There is an easy way to handle this scenario.  Let’s say that you want to purchase a home that’s listed at $187,500.00.  You would like to pay $185,000 for the house and you know that you need $5,000 to help cover closing costs.  Simply ask your Realtor to write the offer to purchase for $190,000 with the seller paying $5,000 in closing costs.

Show me the Money…

But how do you know how much closing costs are going to be?  And, how do you know if you earn enough money to be able to qualify for a mortgage loan to begin with?  Now we come to the crux of the matter.  The best way to answer these questions is to call me and start the application process.  With just a little information, I can quickly see if you can be prequalified for a mortgage loan.  I can also make sure that you’re taking advantage of the best loan programs available.

Home-ownership is part of the American dream; and with interest rates still at historically low levels now is a great time to explore your options.  Call me today and let’s get started on getting you into the home of your dreams!

Jenny Miller
Loan Officer
NMLS: 1054076

Sierra Pacific Mortgage Company
6736 Falls of Neuse Road Suite 120
Raleigh, NC 27615

Phone: 919-448-5355

Email: Jenny.Miller@spmc.com

Sierra Pacific Mortgage Company, Inc. NMLS # 1788. Licensed in North Carolina L-127865. Sierra Pacific Mortgage Company, Inc. is not affiliated with the Real Estate Agent and/or Brokerage identified in this advertisement, you are not required to use Sierra Pacific Mortgage Company, Inc. to obtain mortgage financing. This advertisement is provided for informational purpose only. www.nmlsconsumeraccess.org. Not all borrowers will qualify. This is not a commitment to lend. [Insert and program and/or additional disclaimers]. Equal Housing Lender.