PG County Real Estate

This may be familiar territory for some of you, but here is a comprehensive guide to purchasing a bank-owned property.

• Your first step is to secure loan pre-approval.  If you are not already working with a lender, we have several we would be happy to recommend.  While you’re free to use a vendor of your choosing, know that certain banks may require you to be approved by their lender before you can proceed with buying one of their foreclosed properties.
• Next, select one of the homes the bank has available.
• For the offer to be considered, you must submit your Earnest Money Deposit to the listing agent.
• If your offer is accepted, you will receive a list of bank addendums from the listing agent.
• After you have reviewed this document thoroughly, send it back to the listing agent, who will then forward it back to the bank and obtain the necessary signatures.
• During this waiting period, you should reach out to a loan officer to secure more accurate figures.  Give them the sale price, the interest rate, the monthly payment amount and the closing cost, at which point the loan officer will provide you with a Good Faith Estimate, and a list of the documentation necessary to complete the loan application.  Items on this list will include pay stubs, w-2 forms, and bank statements among others.  While you must ultimately select the mortgage that is best for you, we have found the 30 year fixed rate mortgage to be an excellent choice.
• The lender will require that you have Homeowner’s Insurance, so your next move should be to obtain a quote.  We recommend that you choose a plan covering your home and belongings in the event of a fire, robbery or other unforeseen set of circumstances.  As always, shop around for the best deal, and be sure to consult your car insurance agent, as you may be able to arrange a multi-policy discount.  After providing your insurance agent’s name and phone number to your loan officer, they will then order Hazard Insurance for you.
• You should receive your fully ratified (signed by both you and the lender) contract within a matter of days.
• Next, we will reach out to the listing agent and confirm that all utilities have been activated before scheduling a home inspection.  The inspection process typically lasts about 2-3 hours, and can be performed by an inspector of your choosing.  Once again, we would be happy to recommend one to you if you do not have one in mind.
• The loan officer will then request Appraisal and Title work.
• A full termite inspection will then be performed by either you or the seller.
• HOA documents should then be ordered by either you or the seller.  Review these thoroughly, and let us know if you have any questions.  We need to ensure that neither the bank nor the home’s previous owner are behind on paying HOA dues, and that there haven’t been any HOA code violations.
• You should then perform a final walk-through inspection, either before or the day of closing.
• When closing day arrives, your loan officer or title company will inform you of the materials you will need to bring (along with proof of identity) to complete the process.

As we have said many times before, we have the expertise and experience to represent you as you purchase a bank-owned property. And, we also have many bank-owned properties for sale since we work with a number of national banks and the Federal Government. Contact us at Info@ExpressRS.com or 703-752-1380 for more information or any comments you might have.

First-Time Homebuyers Seminar: Mortgage Assistance. Credit Repair. Home Selection. Closing.

This is a great opportunity to gain valuable insight into the process of purchasing your first home.

May 16, 2009 10:00AM to Noon
Capitol Hill Presbyterian Church
201 Fourth Street SE Washington DC
Corner of 4th and Independence Ave. SE.
Located close to the Eastern Market or Capitol South metro stations. Please note that parking for the event is extremely limited.

This seminar will:

1. Suggest ways to improve your credit rating. Credit scores can be raised by as much as 100 points through our simple, legal, and no-hidden-costs method.

2. Explain how you can secure up to $18,000 in down payment assistance. No strings attached, and available to all qualified first-time home buyers. This is grant funding you won’t ever have to pay back if you occupy your home for a certain length of time.

3. Teach you to identify and target the best DC-area properties for your budget. Learn simple tricks and techniques to get the most value for your money.

4. Remove the mystery from the closing process. Learn to understand concepts such as deeds, closing costs, title and ownership.

This Home Buying seminar is unique in that you can pre-qualify, apply and view new home opportunities right on the spot. You won’t want to miss out!

Hosted by Express Realty Services – www.ExpressRS.com.

Featured Speakers:      Marc Hershkowitz – Realtor and Host
Kristine O’Neill – Senior Loan Officer, Virginia Heritage Bank Mortgage
Mark Schrader – Principal, Millennium Title
Steve Conover – Credit Guru, MyCreditABC.com

Seating is limited. Sign up today to reserve your spot or arrive early take advantage of our first-come-first-served seating.

Please contact Tina@ExpressHomebuyers.com or 703-752-1374 to make a reservation or for any further information you may require.

If you’re wondering whether it’s the right time to buy property, we’ve found a recent article by the Inman Group that goes over some of the concerns people have about the process.  The data they discuss was collected by the Century 21 Group for a March 2009 survey of 1000 potential first-time homebuyers.   The link to the document is at the bottom of this page, but here is a quick summary of some of the article’s main points and findings, along with some suggestions on our part:

Almost 50% of the people surveyed were unaware of the $8000 tax credit provided by the economic stimulus package (for more details, see our March 20th DC Real Estate Blog posting).   If you’re looking for some money to put toward a down payment, it’s worth looking into the tax credit and learning more about the qualifications for the tax credit.

42% of the people who took the survey claimed they would consider buying a home in the present economy, while another 48% are holding out for market conditions to improve.  69% of current renters worry that prices may rise if they don’t act soon, while 68% of those who took the survey believe that rates are better now than they were 6 months ago.  Most of these people seem to agree that the time to act is now.

Almost 60% of the homebuyers who took the survey admit to a limited understanding the real estate market, and more people use real estate listings for research than websites.  The trick with the internet is knowing where to look, and avoiding fake sites and scammers as you search for quality homes.  We take pride in selling homes quickly; according to MRIS Research’s “Local Market Updates for the month of March, the homes we offer in the PG County area sit on the market an average of 32 days before they are sold, compared to 166 days for all other homes sold in the area.  We feel this reflects the fact that we provide a quality product at an affordable price.

Overall, most participants feel that now could be a great time to pull the trigger on a new home, but are worried about the economy and the possibility of losing their jobs while they’re saddled with a new mortgage to pay off.  It’s important to know the risks involved in becoming a homeowner, and weighing them against the reasons for buying property now before you make a decision.  Remember, we’re always happy to answer any questions you may have.

To read the Inman News article, please use the following link: http://www.inman.com/news/2009/03/27/first-timers-worry-about-jobs-credit

Most of this is directly from a news release kindly provided by RGS Title. Since the news is very good for first time buyers in PG County, we thought we’d share it with you immediately:

Great News for PG County Buyers – An Improved First-Time Home Buyer Credit
As we have mentioned in previous posts, there have been some recent optimistic signs for buying a new home:

1. National home inventory is at a 2-year low; prices are down and much more more affordable than in the past.
2. While January, 2009 showed a dip in sales activity, a lot of hesitation can probably be attributed to buyers waiting to see what benefits the federal government would offer in the way of stimulus (See last week’s blog).
3. One of those benefits is outlined below, an improved First-Time Home Buyer Credit.  The increased credit of $8,000 is a true tax credit and THE CREDIT MAY BE CLAIMED ON YOUR RETURN, EVEN FOR PURCHASES IN 2009.  See IRS FORM 5405 and instructions for more details.
4. The maximum Fannie Mae and Freddie Mac conforming loan amounts have been raised back up to $729,750 for high cost areas such as metropolitan DC through 2009.

SUMMARY OF THE 2009 FIRST-TIME HOME BUYER TAX CREDIT
NOTE:  For qualifying buyers, who purchased from April 9, 2008 to December 31, 2008, the credit established last year is still in place [10% of purchase price, but not more than $7,500, which has to be repaid as additional tax over 15 year period in equal installments and would be due in full if sold prior to end of recapture period]

For  purchases AFTER December 31, 2008 and before December 1, 2009 (YES THAT IS DECEMBER 1st, NOT THE 31st), the maximum is increased to $8,000 and is a true tax credit – IT DOES NOT HAVE TO BE REPAID, unless the property is sold or no longer primary residence within three years of purchase.

The principal provisions for 2009 are as follows:

1. Credit amount:
   10% of purchase price, but not more than $8,000 ($4,000 if married and not filing jointly); if unmarried joint owners qualify, the credit is allocated between them, but total is limited to $8,000
2. Qualifying Property:
   Same as before. Single-family real estate used as Principal Residence
3. Limitations:
   First-Time Buyer – means individual had no present ownership interest in a principal residence during 3-year period prior to purchase date.  No limit for AGI up to $75,000 ($150,000 joint filers); not available for buyers with AGI over $95,000/$170,000 and there is prorata credit reduction for incomes between.
4. Recapture:
   Due in full if sold, or no longer used as primary residence, prior to end of 36 months from date of purchase; there are some exceptions to the repayment requirement, including death of the taxpayer, which are detailed in the instructions for IRS FORM 5405

As you may have heard, President Obama launched the Mortgage Relief Plan on Wednesday, March 4.  This plan was created to help an estimated 9 million Americans stay in their homes by helping them qualify for cheaper mortgages.  It works in two parts:  as many as 5 million homeowners will be able to refinance and end up with more affordable fixed-rate loans, while up to 4 million homeowners will be eligible to modify their loan terms.

While this sounds like a great idea, what matters to you is whether or not you qualify for help.  Here is what you need to know about the Refinancing Plan:

• For starters, you must be a homeowner whose loans are with Freddie Mac or Fannie Mae in order to be eligible.  The easiest way to find out whether or not your loans are held by either Freddie Mac or Fannie Mae is to ask the lender or mortgage service you currently use.  Check one of your monthly mortgage statements for the phone number.  If you’d rather get in touch with Freddie Mac or Fannie Mae directly, their contact information is:

1.800.FREDDIE
www.freddiemac.com/avoidforeclosure

1.800.7FANNIE
www.fanniemae.com/homeaffordable

You can fill out the necessary request forms online at the email addresses listed above.

• You cannot owe more than 105% of your home’s current value on your first mortgage.  If you have a second mortgage, you could still be eligible if your first mortgage isn’t over 105% of your home’s value.

• You must be the occupant of your home, and you need to have enough income to make your new mortgage payments.

• You won’t be allowed to take out cash during the refinancing process to pay off other debts.

• The deadline for you to register for this program is June 2010.

Here are the requirements for signing up for the Modification Plan:

• Only mortgages you have made on January 1, 2009 or earlier are eligible.

• Your total mortgage payments must be more than 31% of your monthly income.

• The home you are mortgaging must be your actual residence, it cannot be vacant, condemned or owned by someone else.

• If you live in a single family property with a loan larger than $759,750, you will not be able to register for this program.

• To prove your eligibility, you need to provide your most recent tax return, two pay stubs, an official “affidavit of financial hardship,” and explain why you are going through financial hardships.

• If you do qualify for this program, you can only have your loans modified once.  The program will only continue until Dec. 31, 2012.

Hopefully you found this information helpful, it’s important to know your options as you consider your future as a homeowner.  If you have any further questions or if you’re interested in purchasing one of our affordable newly renovated homes in MD, please visit our website at www.ExpressRS.com.