Erie Real Estate

New Good Faith Estimate (GFE)

Good Faith Estimate video.  This is the new Good Faith Estimate (GFE) that want into effect 1/1/10.  The idea according to the Government is that it provides more information to the consumer and lessens the likelyhood of fraud by the lender.

Yes, it's good because the terms are clearly spelled out - interest rate, loan term, prepayment penalty, etc.  Settlement charges, transfer taxes, homeowner's insurance, etc. again, clearly spelled out.

At the bottom of page #1, #2, and #3 you have "Total Estimated Settlement Charges" of that equals a specific $ amount.  Again, very clear.

Here's my problem:  What is the downpayment?  Where is the downpayment listed?  Can you find it?  I'll bet you can't.  Why?  Because, it's not listed.  They just made it more confusing by telling the Borrower a not so complete "Total".

Mortgage Terms

Ballon Mortgage - A mortgage note with an amortization schedule that does not extinguish the debt by the of the term.  A large (balloon) payment of the remaining balance is required at the end of the term.

CAPS - Interest Caps: A limit on the amount the interest rate on an adjustable rate mortgage can change per adjustment and/or over the life of the loan.  Payment Caps: A limit on the amount the monthly "principal and interest" payment can change, per adjustment.

2804 Reed Street

2804 Reed St is a well kept brick cape cod and is for sale @ $76,900. 

It has 4 bedrooms - 2 on the first floor and 2 on the second.  It features many updates - roof, electrical, remodeled bath, water tank, furnace, and more.  Central air will keep you cool in the summer.

Plenty of offstreet parking and a 1 car garage.

Take a tour now.

Please let me know if you would like a private showing or feel free to stop by the Open House on 2/14 from 1-3PM. 

MORTGAGE TERMS

Application Fee - A sum of money paid towards estimated initial mortgage processing expenses such as appraisal and credit report.

Appraisal - A professional evaluation by an expert of the value of the subject property that the Borrower is interested in purchasing.

Appraised Value - A professional appraiser's estimate of the value of the subject property, as of a specific date.

New dorm and Gannon

Erie City Council has given Gannon University the green light to build its first new residential hall on campus in more than two decades.

City Council earlier today voted unanimously to rezone a parcel of land Gannon needs for the $10 million to $15 million project.

 

The new dorm -- the first new residential building since the construction of Crispo Hall in 1987 -- will be built on green space that Gannon already owns within the now-rezoned area, on West Fourth Street between University Apartments and the Erie Center on Health and Aging.

 

Other action taken by council.

 

SOME MORTGAGE TERMINOLOGY

 

Adjustable Rate Mortgage (ARM) - A loan in which th einterest rate is adjusted periodically based on a preselected index rate

 

Amortization - Equal principal reductions of a debt, usually by monthly payments in excess of the interest due.

 

Annual Percentage Rate (APR) - The APR is the cost of credit represented as a yearly rate to the consumer.  This rate is calculated by including the yearly interest rate, discount points charged to the Borrower, and closing costs such as mortgage insurance premiums.

 

Questions about mortgages, which mortgage is right for you?  Just ask.

Understand Agency Relationships

It’s important to understand what legal responsibilities your real estate salesperson has to you and to other parties in the transaction. Ask what type of agency relationship your agent has with you:

Seller's representative (also known as a listing agent or seller's agent)
A seller's agent is hired by and represents the seller. All fiduciary duties are owed to the seller. The agency relationship usually is created by a listing contract.

Buyer's representative (also known as a buyer’s agent)
A buyer’s agent is hired by prospective buyers to represent them in a real estate transaction. The buyer's agent works in the buyer's best interest throughout the transaction and owes fiduciary duties to the buyer. The buyer can pay the licensee directly through a negotiated fee, or the buyer's agent may be paid by the seller or through a commission split with the seller’s agent.

Subagent
A subagent owes the same fiduciary duties to the agent's customer as the agent does. Subagency usually arises when a cooperating sales associate from another brokerage, who is not the buyer’s agent, shows property to a buyer. In such a case, the subagent works with the buyer as a customer but owes fiduciary duties to the listing broker and the seller. Although a subagent cannot assist the buyer in any way that would be detrimental to the seller, a buyer-customer can expect to be treated honestly by the subagent. It is important that subagents fully explain their duties to buyers.

Disclosed dual agent
Dual agency is a relationship in which the brokerage firm represents both the buyer and the seller in the same real estate transaction. Dual agency relationships do not carry with them all of the traditional fiduciary duties to clients. Instead, dual agents owe limited fiduciary duties. Because of the potential for conflicts of interest in a dual-agency relationship, it's vital that all parties give their informed consent. In many states, this consent must be in writing. Disclosed dual agency, in which both the buyer and the seller are told that the agent is representing both of them, is legal in Pennsylvania and is clearly noted in the Agreement of Sale.

Designated agent
This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as an agent of the seller and which will act as an agent of the buyer. Designated agency avoids the problem of creating a dual-agency relationship for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties. The broker still has the responsibility of supervising both groups of licensees.

Confused? Do you want more information?  Just let me know.  Have you been involved in a dual or designated agency realationship?

Take the Stress Out of Homebuying - Part 2

6. Remember your home doesn’t exist in a vacuum.

Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.

7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.

10. Choose a home first because you love it; then think about appreciation. A home’s most important role is to serve as a comfortable, safe place to live.

The home above is located at 3509 Julie Dr.  A virtual tour is available.

If you have any questions about home buying or selling, please contact me.

Take the Stress Out of Homebuying - Part 1

Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.

1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won’t stay on the market long.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.

4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.

The home in the above photo is located at 3605 Anne Marie Dr.   Click here for a virtual tour.

Part 2 contains 5 more tips to take the stress out of homebuying.

Does Moving Up Make Sense?

These questions will help you decide whether you’re ready for a home that’s larger or in a more desirable location. If you answer yes to most of the questions, it’s a sign that you may be ready to move.

1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains.

2. Has your income or financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.

3. Have you outgrown your neighborhood? The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you’d like to be closer to your job or live in a better school district.

4. Are there reasons why you can’t remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.

5. Are you comfortable moving in the current housing market? If your market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.

6. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.

Dont' forget that the Home Buyer Tax Credit extension applies to move up buyers, too.  Up to $6,500 could be your tax credit.  Contact me for more details.

The home pictured in this post is 3775 Harbor Ridge Trail.  Tour it here.  It's located in a golf community.  

5 Things to do Before Putting Your Home on the Market

1. Have a pre-sale home inspection. Be proactive by arranging for a pre-sale home inspection. An inspector will be able to give you a good indication of the trouble areas that will stand out to potential buyers, and you’ll be able to make repairs before any showings.

2. Organize and clean. Pare down clutter and pack up your least-used items, such as large blenders and other kitchen tools, out-of-season clothes, toys, and exercise equipment. Store items off-site or in boxes neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine.

3. Get replacement estimates. Do you have big-ticket items that are worn our or will need to be replaced soon, such your roof or carpeting? Get estimates on how much it would cost to replace them, even if you don’t plan to do it yourself. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin.

4. Find your warranties. Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house.

5. Spruce up the curb appeal. Pretend you’re a buyer and stand outside of your home. As you approach the front door, what is your impression of the property? Do the lawn and bushes look neatly manicured? Is the address clearly visible? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks and impediments?

Home Buyer Workshop

We're having a Home Buyer Workshop every Saturday morning in January.  10:00 - noon.

FREE - no obligation.

Information about the Home Buyer Tax Credit extension, 4.5% new construction intrerest rate from PHFA , buyer agency information, the home buying process and more will be available.

Colleen Konkel from Wells Fargo Home Loans will be onsite to answer financing questions and to do mortgage  pre-approvals.

Last Saturday was the 1st day that we did this and the response have been good.  The location is at the Pro Realty, Inc. office located at 4720 Pine Ave.  Will you be stopping by?

Remember the Home Buyer Tax Credit  expires April 30, 2010.

Come on in and let Pro Realty take the stress out of homebuying. 

Realtor Tax Credit Countdown