Replies (7)
- SteadyState
- Contributions:878
"You will need at least 10% down and 2 month's of your anticipated monthly mortgage saved before you choose your home."
Totally irresponsible advice given that you are pretending to offer financial advice. Responsible individuals (translated - those who are not forced to short-sell, forced into foreclosure, or do not become further liabilities for the state) must put considerably more down payment - say at a minimum of 20% though prudent individuals suggest at least 33% down payment and buyers must have savings such that they can ride out one year in case of financial difficulty (e.g., loss of job, cut in wages, transfer, etc.)
Is your need for commission such that you would give poor financial advice to your own customers just to make a buck?
- Tiffany Bond, "TiffanyBond"
- Contributions:3150
Sources?
This is a propaganda piece that really has no place here (in my humble opinion). It is misleading at best (an agent is not "free"), unsubstantiated and poor financial advice at worst.
This is a propaganda piece that really has no place here (in my humble opinion). It is misleading at best (an agent is not "free"), unsubstantiated and poor financial advice at worst.
- Patty Hopkins, "pattyhop"
- Contributions:36
- SteadyState
- Contributions:878
Patty Hopkins, "pattyhop" says:
"I have represented buyers who used a VA loan and brought no $$ in to the deal because I negotiated for the seller to pay the closing costs. I have also represented many FHA buyers who only had to contribute the down payment of 3.5%"
What is your track record of your buyers NOT going into foreclosure/shot-sale when they only put no money down or only 3.5% down?
I bet you do not have the data to answer this question - so you have no data to support your claim!!! Then why make the claim!!!
Because logic and math are the classes you missed when in school and getting and obtaining an RE license does not require either?
"I have represented buyers who used a VA loan and brought no $$ in to the deal because I negotiated for the seller to pay the closing costs. I have also represented many FHA buyers who only had to contribute the down payment of 3.5%"
What is your track record of your buyers NOT going into foreclosure/shot-sale when they only put no money down or only 3.5% down?
I bet you do not have the data to answer this question - so you have no data to support your claim!!! Then why make the claim!!!
Because logic and math are the classes you missed when in school and getting and obtaining an RE license does not require either?
- Cheryl Talbot Real Estate, "Virginia Beach Homes"
- Contributions:722
I've represented buyers who in fact brought nothing to closing and also got their home inspection monies refunded to them as well. I agree with Patty, that many of my Va buyers have gotten into a home for almost nothing. I have also negotiated their closing costs being paid for by the seller which is standard here. My buyers have been very happy and have purchased homes for less than they would have paid even a year ago. In our region the average buyer is either putting down the FHA required 3.5% or using their VA with zero down. With over 10 Military Bases within 35 miles of one another, we have a strong military presence here. It's for sure harder with foreclousure/short sales as we aren't seeing the banks willing to assist much of anything. The short sales are hard as ever and mostly a waste of time for the buyer. Give me a motivated seller over a bank any day.
- Barbara Barker, "Babsbarker"
- Contributions:299
Steady State / Patty Hop
In response to your reply and read closely:
#1 - You should probably focus on your own reputation and business ethics and have no idea why you are trolling blogs when you should be trolling the streets for listings.
#2 - You are suggesting that a new home buyer go into a big purchase without being financially prepared? You are saying that I am giving poor financial advice when I am suggesting that new home buyers be prepared in having money saved? You're basically saying that a buyer should go in with minimum... or none. Wow! That sounds like WAY more responsible advice than what I have provided!
#3 - I would like to know your credit score, I bet it's wrecked. That is if you practice what you preach by means of financial decisions.
#4 - I understand these programs exist, still consumers have to be prepared for things like a surprise special assessment that cannot be paid in installments - is the bank going to pay that? What about the buyer's insurance co? PLUS, where the hell do you practice Real Estate?? Some small hillbilly town??
#5 - I'm in Chicago, In Chicago, we have many old homes built in early 1900's and only about 5-15% of the listings available are FHA/VA approved. Your buyers may not want to go through a short sale, but FHA/VA approval (in my experience) takes an average of 3 months.
You can do your own research by heading to HUD.GOV and search FHA APPROVED PROJECTS, type in every zip code in Chicago and you'll find the exact number of approved projects after matching the available units for sale on the Illinois MLS in each of those zip codes with the number of approved projects.... I'm too busy with clients to do this research... unfortunately you are not I see, since you have posted 2 long winded replies to my general rant.
So, when most properties are not VA/FHA approved or able to be approved... how the hell do you expect to find properties that are available NOW and IN COMPLIANCE with your client's VA or FHA pre-approval?
Looks like your client is going to have to resort to Conventional at that point, hence 5% down... then save 5% for any improvements he/she wants to make to the property given the property may be in need of rehab or the buyer may be responsible for unpaid city violations (not 100% negotiable) and/or unpaid assessments (not 100% guaranteed negotiable).
So, please, spend your precious time on focusing on your own market as well as your small town real estate practice. I finally saw your negative response, because I've been too busy with clients to care about looking at this crap ;)
""You will need at least 10% down and 2 month's of your anticipated monthly mortgage saved before you choose your home."
In response to your reply and read closely:
#1 - You should probably focus on your own reputation and business ethics and have no idea why you are trolling blogs when you should be trolling the streets for listings.
#2 - You are suggesting that a new home buyer go into a big purchase without being financially prepared? You are saying that I am giving poor financial advice when I am suggesting that new home buyers be prepared in having money saved? You're basically saying that a buyer should go in with minimum... or none. Wow! That sounds like WAY more responsible advice than what I have provided!
#3 - I would like to know your credit score, I bet it's wrecked. That is if you practice what you preach by means of financial decisions.
#4 - I understand these programs exist, still consumers have to be prepared for things like a surprise special assessment that cannot be paid in installments - is the bank going to pay that? What about the buyer's insurance co? PLUS, where the hell do you practice Real Estate?? Some small hillbilly town??
#5 - I'm in Chicago, In Chicago, we have many old homes built in early 1900's and only about 5-15% of the listings available are FHA/VA approved. Your buyers may not want to go through a short sale, but FHA/VA approval (in my experience) takes an average of 3 months.
You can do your own research by heading to HUD.GOV and search FHA APPROVED PROJECTS, type in every zip code in Chicago and you'll find the exact number of approved projects after matching the available units for sale on the Illinois MLS in each of those zip codes with the number of approved projects.... I'm too busy with clients to do this research... unfortunately you are not I see, since you have posted 2 long winded replies to my general rant.
So, when most properties are not VA/FHA approved or able to be approved... how the hell do you expect to find properties that are available NOW and IN COMPLIANCE with your client's VA or FHA pre-approval?
Looks like your client is going to have to resort to Conventional at that point, hence 5% down... then save 5% for any improvements he/she wants to make to the property given the property may be in need of rehab or the buyer may be responsible for unpaid city violations (not 100% negotiable) and/or unpaid assessments (not 100% guaranteed negotiable).
So, please, spend your precious time on focusing on your own market as well as your small town real estate practice. I finally saw your negative response, because I've been too busy with clients to care about looking at this crap ;)
""You will need at least 10% down and 2 month's of your anticipated monthly mortgage saved before you choose your home."
Totally irresponsible advice given that you are pretending to offer financial advice. Responsible individuals (translated - those who are not forced to short-sell, forced into foreclosure, or do not become further liabilities for the state) must put considerably more down payment - say at a minimum of 20% though prudent individuals suggest at least 33% down payment and buyers must have savings such that they can ride out one year in case of financial difficulty (e.g., loss of job, cut in wages, transfer, etc.)
Is your need for commission such that you would give poor financial advice to your own customers just to make a buck?"""
- Barbara Barker, "Babsbarker"
- Contributions:299
Tiffany Bond -
In response to " It is misleading at best (an agent is not "free") ", go back to school and learn how to read. " Get pre-approved, it's FREE! " is what I said. Now, I want to you walk into a bank and ask a mortgage broker to pre-approve you for a mortgage. You get back to me and let me know if she/he charges you. Thanks.
In response to " It is misleading at best (an agent is not "free")" If you are referring to a buyers agent... at least I do not charge buyers to use my services, seller's agents in Chicago charge commission, but not buyers agents. What you do is your business.
Propaganda? This is a rant and rave, I'm not providing sources, because I am free writing my opinions... shove a condo somewhere.
"unsubstantiated and poor financial advice at worst" - Refer back to my response to "Patty Hop" and "Steady State", then shove a condo somewhere.
I hope you find something else to do with your time! Thanks and have a great day!
In response to " It is misleading at best (an agent is not "free") ", go back to school and learn how to read. " Get pre-approved, it's FREE! " is what I said. Now, I want to you walk into a bank and ask a mortgage broker to pre-approve you for a mortgage. You get back to me and let me know if she/he charges you. Thanks.
In response to " It is misleading at best (an agent is not "free")" If you are referring to a buyers agent... at least I do not charge buyers to use my services, seller's agents in Chicago charge commission, but not buyers agents. What you do is your business.
Propaganda? This is a rant and rave, I'm not providing sources, because I am free writing my opinions... shove a condo somewhere.
"unsubstantiated and poor financial advice at worst" - Refer back to my response to "Patty Hop" and "Steady State", then shove a condo somewhere.
I hope you find something else to do with your time! Thanks and have a great day!
Preparing to Purchase
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- 4.7/5.0
- (13 reviews)
Contributions:299Prices are low and so is the quality. Have you heard the saying, "You get what you pay for"? It's true. Properties sold by professionals understand the real value in a home in any given neighborhood. If you want that steal, be prepared to shovel out some extra money to meet your housing standards.
You will need at least 10% down and 2 month's of your anticipated monthly mortgage saved before you choose your home. There are tax programs and first time home buyer incentives that will eliminate a large chunk of the initial closing costs, but you want to be safe and have your nest egg on standby. Since APR is about 75% less now than in 2008, your monthly costs will be significantly lower.
Go to a mortgage broker and see where your monthly payments should come in at. You want to calculate taxes, assessments (if any), APR, PMI and the principle payment. If you are aiming too low and in reality you could afford more, don't sell yourself short! Home is your foundation. If your foundation is not right with you, it affects your work, family and life. Don't cut corners on your home. Get pre-approved, it's FREE!
Your Realtor is your right hand man. He/She is your adviser, the devil's advocate and your business partner. Get one, don't try to do it by yourself! It's free for God sakes!
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