Buy a House Fast

Transparency is the name of the game in lending today. This is a good thing, since people want to know what they are paying for.  Closing on a house purchase includes many fees that impact how much money a borrower needs to fork over to the bank when the house closes.

Effective January 1, 2010, lenders have to lay out the costs for potential borrowers in a new Good Faith Estimate (GFE) form. Ironically, this form does not answer the bottom-line question of the amount you need at closing or your monthly mortgage payment. However, it does indicate which costs are guaranteed to stay the same and which might change.

The GFE concept is not new, but the form and the way the costs appear have been rearranged.  In the past, a customer could shop for a loan before he settled on a lender and obtain a written GFE, but still be clueless as to the real coast of the loan.  The best loan is not the necessarily the one with the lowest interest rate, as there are numerous other fees involved in obtaining the loan.

How lenders divvy up the fees to process a loan differ; the new form does not list each specific component. The new form may seem to offer less transparency as all the fees are lumped together, but they emphasize the total costs for loan origination, which is really the important thing.

The strategy is similar to that used by some grocery stores which stress total costs rather than the cost of one item. One week, Giant Eagle may have skinless, boneless chicken for $1.79 a pound, which attracts some shoppers.  The advertising folks at Giant Eagle hope you will do all your shopping there when you come for the chicken.  A shopper who patronizes another store could pay a little more for their weekly chicken fix, but still come out of the store paying a few dollars less for the same selection of items for a given week.  Some shoppers might pick up the bargains at Giant Eagle or Acme and do the rest of their shopping elsewhere, but for the majority of shoppers who use one store, the total bill for the cheap chicken and the rest of the items in their shopping cart could actually be more than from another store where prices were lower overall.

The new rules direct the borrower’s eyes toward the total cost of loan origination but not the total cost to finalize the transaction. Some costs outside section one of the form may change – including the interest rate. This is why the completed form does not offer the amount due at closing or the monthly payment.

In reality, you could collect GFE’s for several banks, perhaps even before you finalized the deal for your home and before the house was appraised or the title process was done.  These services, as well as the cost of insurance, can vary.  The bank can only provide you the costs it has a handle on; anything further would only be ballpark guess.

The government has mandated using the new form starting in 2010.  The question remains: Will this form really give consumers a better idea of the cost of credit?

Express Realty Services has no crystal ball to predict what you will pay each month or at closing, but we will do our best to keep you informed of all the costs so you are not surprised at closing.  When you buy an affordable DC, MS, or VA home from us, we will be with you every step of the way until those keys are in your hand and beyond.  If you want a Realtor® with staying power, call us today!

Pick up any article about preparing your DC home for sale and you will notice a trend of “how-to sell your house” tips:  declutter, repaint in neutral colors, fix obvious problems, arrange the furniture in an appealing manner, etc.  Then, when you have an open house bake bread or have scented candles burning to give the place a homey feeling. While all of this is important, buyers want value, not just flash!

They may buy your home for the sizzle, but they want the steak!

As a seller, there are a few other things you need to check out, probably best by getting a home inspection. Even if the inspector finds problems that are out of your price range to fix, you need to disclose these problems and price your home accordingly. Some other things you can cover up or downplay as part of the home’s charm.  Make sure to ask your Realtor for advice! Aside from violating the Golden Rule, you might also be violating state contract law by covering up serious problems that could affect a buyer’s willingness to buy.

Odors.  Some pet or smoke odors might go away though airing out the house or cleaning windows, drapes, carpeting, and furniture.  Others might require ripping up the carpeting if an obstinate pet  marked the carpet as “his territory.” If you have mold, you may need professional help. The heavy smell of cleaning products can tip off the buyer that there is a serious odor problem in the house.

Stained ceilings. Painting the ceiling is a good way to mask the telltale indicators of a problem – but the cause must be fixed.  The culprit might be a leaking shower or an overflowing bathtub, but there could also be an issue with the plumbing or the roof.

Ill-fitting doors. If doors don’t open or close right, that could indicate poor installation or a more serious issue like the foundation settling.

Sloping porches or driveways. Such features may appear romantic but may lead to water in your basement resulting in a musty odor, leaks, mold, or structural decay.  You may need gutter extensions, soil re-grading, or costly drain work.

Low water pressure.  If the water is slow and skimpy, the city might be to blame, but often this is due to corroded pipes that need replacement.

Inadequate outlets. The older your home is, the greater the likelihood is that there are too few outlets. As long as the inspector has verified that the electrical system is safe, adding more outlets might be the next owner’s job.  Make sure not to call attention to the lack of outlets with a telltale gaggle of tangled extension cords and power strips.

Synthetic stucco siding. Fake stucco can cause moisture problems if it is not installed correctly, and it may require costly siding replacement.  A professional inspection is crucial in humid states.

A home inspection is a good investment for sellers.  A buyer-ordered inspection might turn up some other things, but having the inspection before-hand will prepare you as a seller for what the buyer’s inspection could find.  It will give you time to prepare a game plan for addressing the issues.

Express Realty Services can offer you the guidance you need when you are selling your home.  If you need a fast sale but don’t have time or money to do the repairs, we have a number of options available to help you sell quickly.  Chat with an Agent, email us, or call (888) 306-9450 to find out how to buy or sell a home in the DC area.