Hi all! The weather has been wonderful here to go "house shopping" and that's what has been happening with my clients. And one question that came up with each of my clients--new and those buying again--is "ok, once I have a contract on a house--we've negotiated and agreed and I've turned over my earnest money deposit and we're supposed to close in 30 or so days...WHAT NOW?"

Good question! Even for those buying a house again after a few years--we all know markets change, and requirements change--especially when you move across state lines. Different states have different requirements. For example, in the state of Florida, each home closed on requires a pest inspection prior to closing.

Now your lender, your realtor, and the title company will remain in contact to stay on top of the transaction. The first thing is if you haven't already been approved for a loan, is to find a lender and get approved and make sure your lender and realtor have each others contact information. Chances are your realtor will ask for the lender info and follow up with them. Your lender may require additional information from you, even if you have been pre-approved (tax returns, bank statements, pay stubs or leave and earnings statements). The quicker you get this to your lender, the quicker the transaction can close.

Second, if you want to get a home inspection, you need to get it scheduled and done. This is usually a buyer's cost (around $300). It's not mandatory to have one, but highly recommended. If something is found like electrical issues, or a leak somewhere, something comes up that wasn't obvious when you were looking before, you can ask the seller to have it fixed. The Pest inspection is different from this, but could also find damage due to pests.

Third, get insurance quotes and decide on who will insure your home. The listing information you received for the house should have all the information the insurance agent will need to get you an accurate quote. Quotes can vary considerably so be sure to get more than one quote. When you decide on your insurance, tell them you need a binder and make sure they have your lenders information.

There are a number of things that happen "behind the scenes" that you may or may not be aware of. First, if you're getting a loan, the lender will require an appraisal. Sometimes a survey is required. If there is a survey from a previous sale, and no significant changes have been made to the property (additions), this will suffice.

The title company will need to do a title search on the property. This search identifies current liens on the property (loan, tax lien, mechanics lien, etc.) and they will ensure these liens are paid once closing happens and the "new" loan is funded.

Both the listing agent and buyer's agent will remain in contact and if there are any issues, they contact their respective clients. They are also both usually in regular contact with the title company. As it gets closer to the closing date, the lender will send the package to the title company to prepare the HUD-1 settlement statement. This shows all the numbers--who is paying for what, how much, and how much the buyer/seller needs to come to the table with, or will get at closing.

In Florida, it is not customary for buyer and seller to sign all the papers together in the same room at the same time. The title company will schedule with the buyer and seller separately.

As the buyer, you will do a final walk-thru the day prior or the day of closing with your realtor. If any repairs were to be done, this is when you verify they've been done. Also, this verifies no significant damage has been done to the property prior to closing (fire, flood, hurricane, tornado, etc.).

You arrive at the closing table, sign lots of papers, walk out with a copy of what you've just signed, and the keys to your new home!

Now you get to move everything in to your new home and start making memories that will last a lifetime!

Congratulations!

p.s. keep in mind, this is a for a "general" transaction. Each transaction is different, and short sales, bank-owned properties, and as-is sales have different requirements. Also, lenders and loan programs have different requirements so keep that in mind as well.

Hi all! I hope everyone is enjoying the weather! I've had a busy week that resulted in driving over the Destin bridge numerous times. I am always in awe of seeing the view from that bridge--the boats all over Crab Island as well as the Destin Pass and the Destin Harbor.

With the real estate market ever-changing, a question that comes up with buyers--new, first-time buyers, as well as those that are selling their current house and buying again. "How much money do I need for a down-payment on a house these days?" Well, that depends on your particular circumstances. Right now, the only loans that you can get at 100% financing are VA loans and Rural Housing Loans.

Of course, the best thing to do is talk with your lender and be honest with them about your debt and your income. You will likely have to prove your income through tax returns or pay stubs or a leave and earnings statement.

The lender will need to pull your credit to find out your credit score. Your credit score and debt-to-income ratio will determine the program(s) you qualify for, which also determine how much money you will need to put down when buying your new home.

FHA loans can require as little as 3% for the down payment (some of which can be used for closing costs). Some loan programs allow you to roll your closing costs in to the loan, or, as part of negotiations, you can ask the seller to pay some or all closing costs, depending on what your lender allows. Some lenders only allow the seller to pay no more than 2% towards buyers closing costs. Some will allow more. Just be sure to talk to your lender about what is allowed.

The best thing to do is speak with some lenders, find one you are comfortable with and that can answer all your questions to your satisfaction. Once you have decided on a lender, make sure your realtor has their information. The information you get from your lender can help you and your realtor with the best negotiations for you when you are ready to put an offer in on your new home.

Enjoy your week, and feel free to call or email me with any questions you may have!

Hi all!

I hope everyone had a great weekend!

I went to a real estate auction this weekend that I found quite interesting. I thought I would share some of what I learned with you. First off, this auction I attended is not like an auction on the courthouse steps that is going in to foreclosure. In Okaloosa County, Florida, you have to have the full amount of your winning bid by the end of the day in the courthouse type auction.

The auction I attended included properties from Panama City to Gulf Breeze, Florida. Some were lots, some were single family homes, and some were even very nice waterfront--both lots and homes. ALL of the properties were short sales, though. I thought that was interesting, because this did turn out to be a different option for both buyers and sellers.

If you've never heard the term "selling absolute" this is an auction term that means that the property WILL be sold to the highest bidder at that bid price. This auction company does not do absolute auctions, but also did point out that you cannot sell absolute on a short sale since the bank does have to approve the price in order for the sale to happen.

So how does the process work in this instance? For a seller who already has their home listed, and wants to try this route, they can work through their agent with the auction company. If it is not a short sale, the seller does have the option of not selling if the bids aren't high enough. The auction house does advertise prior to their auctions which they try putting on once every 4-6 weeks. At this auction a number of the properties already had offers that had gone to the bank for approval, but the bank approved them to still go to auction. After all, someone may come in with a higher bid than what's already on the table. It's likely the advertising that they were going to auction sparked the interest for those that did put in offers.

Those at the auction have no way of knowing what the current offers are that the bank is considering, so that can be a disadvantage.

So how is this a good option for buyers? You do have to pay a 10% buyers premium, which means that you pay 10% above the final bid price. BUT, you can still obtain your financing within 30 or so days. If you're already pre-approved, and you've viewed the property or properties you are interested in, this may be a very good option for you. The specific properties I was there to get a status on did not have a specific open house date(s). A buyer could view them with their agent through the lockbox system agents use.

Since all of the properties at this auction were short sales, that does mean that a property with the "winning bid" still had to submit it as an offer to the bank, for the bank to approve. There were only about 20 people at the auction, and I watched a few leave as soon as the property they were interested in was auctioned off. A few had the winning bids on their properties--and submitted those. Some didn't have any bids at all--which made me think this would have been such a wonderful opportunity for a buyer.

There are other auction companies out there, and I've learned they all do things differently, so make sure you do ask the questions important to you with any that you do work with as a buyer or seller. As the other auction companies sell properties, I plan to attend and share more of what I have learned with you!

Until next time!