How to Win a Bidding War

24 Feb 2017 · by Virtual Results PubSub

How to Win a Bidding WarBuying a Loft is an emotional, complex and often stressful process. This is doubly so if you’re buying in one of the country’s hottest real estate markets, where there are more buyers than there are Lofts available. It’s quite likely in these situations that you’ll find yourself in a bidding war with other buyers. If you want to ensure your bid is the winning offer, follow these strategies.

Pay with cash

This won’t be possible for everyone, but if you have the cash, make an all-cash offer. In a particularly hot market, cash will always win out. Sellers prefer buyers who pay cash because the deal will not be dependent on whether or not the buyer can secure financing.

Get preapproved for a mortgage

If paying all cash is not an option, you must get preapproved for a mortgage before making an offer. You’ll get a letter to submit with your offer that shows the seller how much money you qualify to borrow. In a scenario where a seller receives multiple bids, you’ll automatically count yourself out if you are not pre-approved.

Study the market

Before you begin your search in earnest with the intent to make an offer, spend some time researching online listings for the neighborhood. Know what kinds of Lofts are available, what the inventory is like, and what the prices tend to be.

Submit the first and best offer

In a tight market, it pays to be aggressive. When you find a Loft you like, be the first to make an offer. Not only that, but make sure your offer is the best. If the seller has listed the Loft at an appropriate price, be prepared to offer what they are asking.

Include an escalation clause

If you’re willing to go higher with your offer, consider including an escalation clause. This gives you the option to increase your offer should another buyer bid more than you. It also signals to the seller that you are serious about your offer. However, you should know what your price ceiling is, and stick to it. Otherwise you run the risk of the appraisal coming in for less than your offer, which could affect your ability to secure a loan.

Limit contingencies

Contingencies let a buyer out of a contract if certain issues aren’t addressed. Sometimes buyers want to include a contingency that the sale only goes through if their own Loft sells first, or if certain items are repaired. If you know a Loft is going to net multiple offers, you must limit the number of contingencies if you hope to win a bidding war. Sellers will generally choose offers with the fewest contingencies.

Get personal

Do you really love the Loft? Can you imagine your kids enjoying that backyard tree Loft, or see your dog loving the enormous backyard? Then write a letter to the seller explaining your reasons for wanting the Loft. Appealing to a seller’s emotions can be incredibly persuasive, and you may be rewarded with the winning bid.




What Are Closing Costs?

17 Feb 2017 · by Virtual Results PubSub

What Are Closing Costs?

When buying a Loft, you know you should expect to have a certain amount of money saved for a down payment. But have you stopped to consider how much you’ll need to have set aside for closing costs?  Here we’ll break down the fees associated with closing on a Loft.

What are closing costs?

In a nutshell, closing costs are those fees charged by third parties who are involved with the sale of a Loft. These can include your lender, the title company, local government offices and land surveyors. While closing costs can vary significantly from location to location, you can expect to pay up to five percent of the Loft’s selling price in additional fees.

Who pays the closing costs?

In general, both buyers and sellers are responsible for paying the closing costs. However, buyers typically pay a larger percentage than sellers – around three percent. While most of the fees are paid during closing, some are paid upfront, such as the inspection fee.

What are the fees due at closing?

The fees associated with closing can vary depending on where you live, but these are some of the costs you’ll most likely encounter:

  • Application fee paid to the lender to process your application.
  • Appraisal fee paid to the appraisal company assessing the value of the Loft.
  • Attorney fee paid to an attorney reviewing closing documents.
  • Closing fee paid to the title or escrow company.
  • Courier fee paid to companies transporting documents.
  • Credit report fee paid when your lender reviews your credit to determine the interest rate on your loan.
  • Loft inspection fee paid to the inspector verifying the condition of the property.
  • HOA transfer fee paid by the seller to verify payments are current.
  • Homeowner’s insurance fee paid to insurance company to cover first year’s insurance.
  • Origination fee paid to lender to cover administration costs.
  • Prepaid interest fee paid to lender to cover interest that will accrue between closing and the first payment on your mortgage.
  • Private Mortgage Insurance (PMI) fee that is levied if you put down less than 20 percent for your down payment.
  • Property tax fee paid to lender for any taxes due during the first 60 days of purchase.
  • Recording fee paid to the local recording office for public records.
  • Survey fee paid to survey company to verify property details.
  • Title search fee paid to a title company to search the property’s records.
  • Transfer tax fee paid when the title is transferred from the seller to the buyer.
  • Underwriting fee paid to lender for research involved with approving your loan.

Can you estimate the closing costs?

When your lender provides you with a loan estimate, they will also include what your closing costs are expected to be. However, understand that these numbers are an estimate and can change. You can also check out this online calculator that will help you determine what your closing costs may be. Before your closing date, your lender will give you a Closing Disclosure statement, which will outline what the final closing costs will be.




How to Shop for a Mortgage

10 Feb 2017 · by Virtual Results PubSub

How to Shop for a MortgageWhen you’re making a big purchase, like a car or a new computer, you tend to shop around for the best deal, right? While you may not realize it, you should do the same for a mortgage. After all, a Loft is likely the most expensive thing you will ever buy. Shopping around for a mortgage could save you thousands of dollars, yet nearly half of all Loftbuyers don’t compare lenders.

If you’re getting ready to search for a Loft and find a lender, here’s what you’ll need to know in order to get the best deal on a mortgage.

Check your credit

Your ability to qualify for a Loft loan and get a good interest rate will be largely determined by your credit score. Before shopping around for a lender, you should check your credit score so you aren’t going into the process uninformed. You should also order a copy of your credit report and check it for accuracy. If there are any mistakes, have them corrected before you apply for the loan.

Ask around

So, which lenders should you approach? Don’t just rely on those who are looking to make a deal with you for a recommendation, such as your agent (though they can be a good source of information). Ask around, especially family, friends or colleagues who own Lofts. They can give you an honest appraisal of their mortgage lender and whether or not they would recommend them. Don’t forget that institutions other than banks can be sources for a mortgage as well, such as a credit union or labor union.

Research costs

Once you’ve decided which lenders you’d like to compare, you should contact them for information about the costs associated with the loan. These can include:

  • Rates – Ask about current mortgage interest rates, and whether the rate is adjustable or fixed. Also ask about the APR (annual percentage rate).
  • Points – Ask about points, which are the fees paid to the lender and are linked to the rate. You can ask for points to be quoted in monetary values so you understand what the cost will be.
  • Fees – Find out what fees will be incurred with the processing of your loan, including broker fees, underwriting fees and closing costs.
  • Down payment requirements – If less than 20 percent of the purchase price is paid upfront, you may need to purchase Private Mortgage Insurance (PMI). Ask what the cost of the PMI will be, and how it will affect your monthly payments.

Negotiate

Just like many other business transactions, the fees associated with a mortgage are negotiable. If you find that one lender is willing to lower their fees or offers cash back at closing, you can use that information as a bargaining point with another lender.

Get pre-approved

Once you’ve compiled all your information and met with several lenders, you can choose which lender gives you the best deal and has the best reputation. Once you’ve decided, be sure to ask for a pre-approval letter. Getting pre-approved for you mortgage will signal to sellers that you are a serious buyer, and your offer is more likely to be accepted.s




5 Tips for Millennial Home Buyers

3 Feb 2017 · by Virtual Results PubSub

5 Tips for Millennial Home BuyersRealtor.com has predicted that 2017 will be a hot year for millennials in the real estate market. Millennials are beginning to reach those milestones in life that drive people to buy a Loft – specifically, getting married and having kids. If you’re a young adult preparing to buy your first Loft, here are five tips designed to help you make the process easier.

Set a budget

When shopping for a Loft, you need to have a realistic idea of what you can afford. Keep in mind that your monthly mortgage payment, which includes your taxes and insurance, should not exceed 25 percent of your monthly take-Loft pay. Take a look at this online calculator that can help you compute what your price range should be.

Don’t be afraid to ask for advice

Buying a Loft is a complex and stressful process – ask anyone who has done it before. In fact, you absolutely should talk about the Loft buying process with those who have gone before you. Talk to your parents and other family members who are Loftowners about what to expect from the time you start your search up until closing day – and beyond. They may not be hip to the latest social media trends, but they can certainly tell you a thing or two about what it’s really like to buy and own your own Loft.

Consider more affordable markets

New York and California will always be a draw for young people, but if you want to buy a Loft in those places you should expect to pay a hefty premium for the privilege. If you’re looking for quality of life paired with a much lower cost of living, look to the Midwest. According to Realtor.com, many millennials will opt to buy Lofts in larger Midwestern markets near universities. Check out Madison, Wisconsin; Columbus, Ohio; Minneapolis, Minnesota; Omaha, Nebraska; or Des Moines, Iowa – markets that are expected to thrive. Who knows, you could not only become a Loftowner, but also a trendsetter.

Have faith

Don’t assume that just because you’re in your 20s, you can’t afford to buy a Loft. Even if you have student loan debt and haven’t been able to sock much away in savings, there are options. Look into FHA (Federal Housing Authority) loans, which allow you to buy with as little as five percent down. If you’ve been smart about handling your finances, Loftownership is within your reach.

Work with a trusted professional

The Internet has made it easier than ever to search for Lofts and learn about how to buy a Loft. But that virtual experience can only go so far in the real world. When it comes time to actually begin looking at Lofts, negotiating an offer, and dealing with escrow, you will want a trusted real estate professional at your side. They have the experience and knowledge to help you navigate the process, and could end up saving you thousands of dollars in the long run. After all, buying a Loft is one of the biggest financial decisions you’ll make in your lifetime. But it’s also one of the most rewarding, and your new Loft will become the place where you begin to build the foundation of your adult life.