ShareThisCash Deposits!
Over the last couple of months I’ve had several clients cause a delay with their settlement because they were making cash deposits into their checking or savings account without a verifiable paper trail for the source of the funds. Most banks or lenders will require that you provide them with two months of your bank statements from your checking and savings accounts. If they see a deposit that was made to your account that did not come from your pay check you will need to explain the source of those funds. If you lend a friend $500.00 and your friend gives you the $500.00 back in cash and you deposit the money into your bank account, you will not be able to use that money towards your downpayment or closing costs. If your parents were to give you money as a gift towards your home purchase you can not deposit the money into your account without following guidelines on how to receive gift funds. If you have any questions or concerns about cash deposits or how to receive gift funds contact me for more information. Cash deposits will stop you from getting your home!
Buyers are Making Quicker Decisions Because of Low Housing Inventory in Some Areas!
Last month my wife and I helped 9 clients purchase properties in Baltimore City, Baltimore County, and Howard County. 5 of the 9 clients were up against multiple offers. I’ve notice this happening more and more this year. Some clients are coming to me with properties they want to see fast because they are noticing the properties disappearing online. One day they see it the next day the property is under contract. We are also noticing that the nice properties are selling quick. The housing market is getting competitive and with low interest rates and rising home prices many buyers are making quicker decisions.
Baltimore City and County Grant Programs Update!
Currently MALP has 7-8 loans still available (average loan amount $22,600) or SELP loans at $10,000 remaining. These funds must be used by June 30, 2013. That means that settlements must happen in June. These programs can be used in Baltimore County only. I’ve had clients combine MALP with DSELP or FHLB and get an additional $5,000-10,000.
BALTIMORE CITYLIFT LAUNCH EVENT
Friday, April 5, 10:00AM to 7:00PM
Saturday, April 6, 10:00AM to 5:00PM
Baltimore Convention Center
One West Pratt Street
Baltimore, MD 21201
Call NHSBaltimore at 410-327-1200 to register for the event
CityLIFT Program Provides Up To $15,000 For Down Payment Assistance!
The CityLIFT Program provides eligible homebuyers with up to $15,000 of down payment assistance on qualified properties. Assistance is not limited to first-time buyers. Household income must meet guidelines for all persons 18 and older living in the hold. Property qualified for the program must be: 1. Located within the City of Baltimore 2. The primary, owner-occupied home of the buyer(s) 3. A detached home, townhouse, condominium, 1-4 unit property, or Planned Unit Development. NHS of Baltimore is involved with the CityLIFT Program in partnership with Wells Fargo Bank and NeighborWorks America. NHS of Baltimore is the only non-profit dispersing the funds for this program. NHS of Baltimore is currently making $1,000,000 in down payment assistance available now. Potential home buyers ready with the necessary qualifications and documents will be able to register on line for first-come, first-served appointments. Details are provided on NHS of Baltimore website.
The CityLIFT Program can be combined with other incentive programs that Baltimore City has to offer like the Baltimore City Employee Homeownership Program, Baltimore Community Development Block Grant Program, Baltimore DHCD Vacants to Value Booster Program, Baltimore Live Near Your Work Program, and several other Programs. Also the CityLIFT down payment assistance progam is a forgivable. If a buyer(s) lives in the property for 5 years the funds do not need to be paid back
NHS of Baltimore, as part of its partnership with Wells Fargo and NeighborWorks America, will be holding a two-day home buyer event in April 2013. At that event an additional $3,000,000 will be made available to eligible buyers. Keep checking NHS of Baltimore website for updated information about the event. You can also contact me for additional information.
Cost and Price of Homeownership!
When purchasing a home you should look at the COST not just the PRICE. The cost is determined by the price and the mortgage interest rate which is available at the time. Below is a list of the interest rates over the last ten years and the impact they have on a $100,000 mortgage payment. Triple this impact for the average $300,000 purchase and you can see the COST of the home is almost $500 less today than in 2003 and interest rates were considered good in 2003! Don’t wait too long! Now is a excellent time to buy a home!
FHA Eases Restrictions On Condo Lending!
Great News! FHA is temporarily easing its lending requirements for condominiums, in a bid to help the real estate market. In Maryland their are many condo communities that can not get FHA approval because of the amount of delinquent condo dues. I’ve had many buyers who wanted to buy condos in communities that could not get FHA approval. This will help eliminate some of the condo inventory. the agency was quoted as stating, “It was determined that certain policy adjustments were needed to address current housing market conditions.” These “changes, which will stay in place for almost two years, include easing the requirements regarding the number of units in a building that can be delinquent on their association dues.”
A New Parkville Community Ryland Homes Perry Meadows!
Last week my wife and I toured a Ryland Homes community called Perry Meadows. The base price started from $349,990 – $384,990 depending upon model and elevation. The model home which had all the bells and whistles was being sold for $459,000. If you would like more information about this community just give a call we would be glad to give you a tour. A few photos below.
The Current FHA Loan limits for Maryland Counties!
Allegany $271,050
Anne Arundel $560,000
Baltimore and Baltimore City $560,000
Calvert $729,750
Carroll $560,000
Charles $729,750
Frederick $729,750
Garret $437,500
Harford $560,000
Howard $560,000
Kent $343,750
Montgomery $729,750
Prince Georges $729,750
Queen Anne’s $560,000
Somerset $328,750
St Mary’s $400,000
Talbot $443,750
Wicomico $328,750
Worcester $437,500
First-Time Buyers Don’t Ask Their Lender Enough Questions!
Most first-time home buyers do not ask their lender enough questions so they miss out on the best deals. Before you meet with your lender sit down and make a list of questions. Ask your real estate agent what questions you should be asking. I always provide my clients with questions for their lender. Family and friends whom have purchased a home can also give you good questions to ask your lender. You can also research online for good questions to ask your lender. Asking plenty of questions is a key to a successful home purchase.
Common First-Time Home Buyer Mistakes!
1. They don’t ask enough questions of their lender and end up missing out on the best deals.
2. They don’t act quickly enough to make a decision and someone else buys the house.
3. They don’t find the right agent who’s willing to help them through the home buying process.
4. They don’t do enough to make their offer look appealing to a seller.
5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for 5 years.
In future blog posts I will discuss these first-time home buyers mistakes in detail.
