BRENDA'S TOP 10 - WHAT NOT TO DO WHEN BUYING

You have decided to buy a house and everyone is 
offering advice on what you what you should do...
but just as important is
what NOT to do when buying real estate!

Brenda's Top 10 List of

What Not To do When Buying Real Estate

10.  Talk too Much 
 It is tempting to be best buddies with the seller,
but let your Real Estate agent handle the negotiations.

9.  Lie to your Loan Officer
It is tempting to exaggerate your income
to improve your chances of getting your dream home,
but the loan officer will verify all your financial information.  

8.  Ignore your Lender
Not getting your lender the documents and information that
they request will just delay or stop any progress on your loan.

7.  Cosign a Loan
Cosigning any loan for someone else
will directly affect your credit, so until you close on your loan...
don't cosign anything.

6.  Make Large Deposits
Of course you are trying to save for closing and all the expense
 that come with purchasing real estate, but your lender will want to investigate
the source of the funds on unusually large deposits.

5.  Panic
There is a lot involved in purchasing real estate and obtaining financing,
 but panicking will not make the process go any more smoothly.
 Surround yourself with professionals that you trust and let them work for you.

4.  Touch your Money
Changing banks, closing accounts or applying for new credit can all
cause problems when financing a real estate purchase. 
It is best not to do anything that changes your finances.

3.  Make a Big Purchase
It is tempting to run out and charge furniture for your new home...
or you may decide you need a new car...
but don't make any big purchase until after you close.
This will change your credit report and may jeopardize your closing. 

2.  Forget about Utilities
Nothing is more disappointing than closing on your new home and
going over to celebrate only to discover there is no electricity. 
 Don't forget to call to turn on utilities before you close. 

1.  Quit your Job
It seems obvious, but don't quit your job. 
 When the lender calls the morning of closing to re-verify your employment,
 they will cancel your closing if you are not still employed. 

For more information about purchasing Real Estate,
call Brenda at (207)784-3800
or e-mail brenda@fontaineteam.com. 

In the meantime, visit us at www.brendafontaine.com.

 

TOP 5 REASONS TO GET PRE-APPROVED FOR A MORTGAGE

Is it really important to get pre-approved for a mortgage

before you start viewing homes?

I can't count the number of times a potential buyer has said something similar to one of the following things when I first meet them...

        *    "I just want to look at some houses...getting a mortgage is not going to be a problem." 

        *    "I have an uncle who works at the bank and he said not to worry about it."

        *    " I talked to a lender 2 years ago, I am sure I will be okay."

So why should you get pre-approved

before you start viewing homes? 

Here is our Top 5 Reasons!

1.  Avoid Heartbreak - Not much is worse than finding your dream home and then finding out you can't get a mortgage for the price of the home.  Getting pre-approved will not only tell you how much of a mortgage you qualify for, but also how much you are comfortable spending.  


2.  Plan Your Down Payment - There are lots of loan programs available, each requiring a different down payment and costs associated with obtaining the mortgage.  Getting pre-approved will help you plan for those costs.


Photo by ilovebutter

3.  Credit Surprises - The credit reports used by most mortgage companies are different than the report you can get online.  Getting that report from your lender early will give you time to correct any mistakes on your credit report or even fix thing to improve your credit score. 

4.  Increase Your Negotiating Power - With the uncertainty in the economy and real estate market, sellers want to be assured that you can afford their home before accepting your offer.   Many sellers will not even consider your offer without a pre-approval letter. 

5.  Don't Delay Your Offer - The basic terms of your financing need to be contingencies of your offer.  In Maine, the purchase and sale offer includes...

type of loan

% of purchase price

interest rate

loan term

closing cost needed by seller

If you have to wait to meet with the lender after you find your dream home, another buyer could negotiate a contract before you are able to gather the information you need to make an offer. 

Buying a home can be stressful.  Proper planning, including a pre-approval will make the process smoother and more enjoyable.  If you have questions or would like to schedule a consultation with a buyer agent, we are happy to schedule a meeting.  Call us at (207)784-3800 or e-mail us at brenda@fontaineteam.com.

SELLER'S PROPERTY DISCLOSURE IN MAINE

If you have decided to sell a home in Maine,

what are you required to disclose to the buyer? 

As a buyer, what disclosures should you expect from a seller?



Photo by Cambodia4kidsorg



First and foremost, you want to be honest about any information you are giving a potential buyer.  If they buy your house, they will most likely discover things you did not disclose once they move in.  If you did not disclose something you were aware of, or were not honest about something...you are opening yourself up for potential liability.  Yes, even after closing!




Make sure the property disclosure you get is filled out completely.  If something is not answered or if you have questions about something you see, ask your agent to find out more information. Keep in mind, the seller may not know the answers to some of your questions...that's where a good inspector comes into play!

In the State of Maine the following items are required to be disclosed on the Seller's Property Disclosure Form:

1.  Information on Private Water Supply
2.  Information on Heating System(s)
3.  Information on Waste Water Disposal System
4.  Information on any Known Hazardous Materials
5.  Information on any Known Material Defects

Information should also be provided about Lead-Based Paint, Arsenic in Water and Arsenic in Wood.

For details on any of these items or information on how to protect yourself as a Seller or Buyer, call Fontaine Family - The Real Estate Leader anytime at (207)784-3800 or

WHAT IS AN ABSORPTION RATE IN REAL ESTATE?

Have you heard people talk about the absorption rate

when they are talking about real estate? 

What is an absorption rate...and what does it have to do with you?

 To find the absorption rate...the number of currently listed properties is divided by the average number of sales for a specific time frame. 

For example:  

In Lewiston/Auburn, Maine in the middle of January 2012

there were 367 single family residential properties listed for sale.  

On average 30.25 single family residential properties sold per month

 in the area over the past year.  

So if we divide the current inventory (367 homes) by the average sold (30.25 per month) we get the estimated time it will take to sell the current inventory on the market (Absorption Rate).

If there are no new listings and property continues to sell at the current rate,

there are roughly 12 months or 1 year of inventory on the market in Lewiston/Auburn.

WHAT DOES IT MEAN TO YOU?

The higher the absorption rate,

 the longer it will take to clear the current inventory from the market.

As a seller...if there is an absorption rate of 12.13 or roughly 12 months of inventory on the market, you will want to be more aggressive by not only pricing the home properly,

 but by staging and preparing your home  to get your property noticed and sold

 than if there is only an absorption rate of 3 or 4. 

As a buyer...you may have more bargaining power if the absorption rate is higher.  Sellers may be competing against higher inventory for buyers and more willing to negotiate. 

If you are interested in finding out the absorption rate for your area in Maine,

e-mail us for your FREE REPORT!

    

THANKSGIVING RECIPIES

Since it is less than a week away from Thanksgiving...

we thought we would share a few of our

favorite Thanksgiving recipes with you. 

Marie's favorite recipe is MONKEY BREAD:

Clay likes DEVILED EGGS:

Beth loves PEANUT BUTTER KISS COOKIES:



Nick's favorite is DEATH BY CHOCOLATE:

Karen's loves SOURDOUGH ROLLS:

Pat likes GROUND PORK STUFFING:



What is your favorite Thanksgiving Day recipe?

Whether you cook at home, visit family or eat out...

We hope you have a wonderful Thanksgiving!

REVERSE MORTGAGES - DID YOU KNOW?

In the past few years, there has been a lot of talk about Reverse Mortgages...so what is a Reverse Mortgage?

HECM - Home Equity Conversion Mortgage is what is commonly called a

Reverse Mortgage. 

A HECM is a non-recourse loan that enables homeowners 62 years of age or older

 to convert a portion of their homes equity into tax-free funds.

Did you know....

     Reverse Mortgages have been around since 1961.

     A Reverse Mortgage does not impact Social Security of Medicare benefits.

     You do not need to make monthly payments on your Reverse Mortgage.

     You do not give up title to your home on a Reverse Mortgage.

     You can only take a Reverse Mortgage on your primary residence.

     You can take the money from a Reverse Mortgage as a lump sum or a little at a time.

     You can use a Reverse Mortgage to purchase a home.

     You can use a Reverse Mortgage to pay off your current mortgage.

      Reverse Mortgages have both fixed-rate options and adjustable-rate options.

     The loan amount of a Reverse Mortgage depends partially on the age of the borrower.

     Reverse Mortgages can be refinanced.

        


Click here for a list of HUD approved Maine HECM lenders.
Click here for more frequently asked question & answers.

        

HomeOwner's Insurance Rates & Your Credit Score

Did you know that your credit score can affect your Homeowner's Insurance rates? 

 Dan Roux from Roux Insurance offers some great tips in this video!

What's the difference between a Short Sale & a Foreclosure?

Please enjoy this month's episode of Your Real Estate Solutions

This month's episode discusses Web based marketing when choosing a real estate agent (ranking of websites, unique visitors, linking domains, etc.) Dan Roux from Roux insurance in Lewiston discusses flood zones and their impact on homeowner's insurance. Kim Fowler discusses short sales. Mike Lepage, 2011 President of Maine Association of Realtors, gives advice for buyers in this market, which is getting recommendations working with your Realtor and lender and understand value.