Montgomery County MD | Choice Real Estate®

2010-01-22T10:12:00.000-08:00

A lot of people moving to or within Montgomery County inquire about school assignments. Elementary, middle and high schools are broken down into specific clusters. On the Montgomery County Public Schools website http://gis.mcpsmd.org/gis/facilityinformation.asp you can search for schools by putting in the exact address of your property or the general area you are looking to buy in. You can find information and maps depicting the service areas and school locations for the elementary, middle and high schools that compose a specific areas cluster.

Despite common belief, clusters are not always assigned to areas you would assume them to be. They do not necessarily include neighborhoods and towns closest to them. Clusters are determined by demographics, population, bus routes, etc.

If you're moving to Montgomery County or changing locations within it, and schools will play a major part in the decision, then the MCPS website will be very helpful. When working with your Realtor they should refer you to the website because school service areas change often.

Buying a Home and the Appraisal is Low?

2010-01-22T08:58:00.000-08:00

Due to the so called "Real Estate Bubble and Market Crash" many property values have been driven down tremendously. However, with the huge influx of buyers in some particular price ranges or locations these values are slowly starting to rise. Nonetheless, an appraiser must use the most recent comps and often times the appraisal may come in lower than the purchase price and/or loan amount. When this occurs there are two options: The seller can reduce the sales price accordingly, or the buyer can come up with the cash to offset the difference.

In most cases it's as simple as this: Buyers don't want to pay more than what a licensed appraiser determines the value of the property to be, so the seller will reduce the price because that's all they can expect to sell their home for. Still, what if the seller or buyer thinks the appraisal is poorly done?

If both feel that the appraisal was poorly done than they can request a second one and then try to dispute the value with the bank providing their loan. Sometimes a second appraisal or dispute will raise the value, but not very often. If that happens and the seller refuses to reduce the price then the buyer has the option to come up with the difference in cash. For example: If the purchase price is $200,000 and the appraisal comes in for $190,000 the buyer has to come up with $10,000 IN ADDITION to the expected down payment amount. If the seller wont come down and the buyer wont come up with the cash difference, then the deal is dead.

If you're obtaining financing for your loan then you will need to know the importance of the appraisal contingency and what exactly it pertains to. Speak with a loan officer to become more educated on all the financing steps that must be taken when buying a home. A real estate agent can help you best determine the value by running a CMA, but again, property values are rising in some areas and price ranges. As a buyer, if you feel an appraisal is low, but feel comfortable paying more than the appraisal amount, come up with the cash!

Ben White-Montgomery County Real Estate Specialist

King Farm, Falls Grove, or The Kentlands?

2010-01-15T07:26:00.000-08:00

In this day and age, many buyers are looking to buy a home in a newer, planned mix use community. In Montgomery County and to be more specific, Gaithersburg & Rockville, there are three very good options. King Farm, Falls Grove, and the Kentlands.

All boast different styles of homes built within the last decade and sooner. In each community you have the option of a detached home, townhome, or condo. Each have easy access to I-270 and All communities have restaurants, grocery stores, and a few bars amongst other nice amenities such as parks and paths to run, walk, or take your dog out for a stroll. What sets them apart?

The biggest advantage in all of the communities is Kings Farms proximity to the Metro. The last stop on the red line, Shady grove, is within walking distance for pretty much all of King Farm. King Farm has some great common areas and parks/playgrounds continue to be built. There is a great and new Safeway to shop at along with a few restaurants, coffee shops, and salons.

Falls Grove is only about a mile away from some parts of King Farm, but the walk to the Metro would not be an easy one. The smallest of the three, Falls Grove has less shopping than any others, but borders the Potomac area that is very sought after and offers more upscale shopping and restaurants. It is the newest of the three and offers all the same amenities, just not on such a large scale.

Finally, the Kentlands & Lakelands is by far the largest and most well planned mixed use development. The community has been widely recognized and many planners model their new neighborhoods on the Kentlands model. Set in between Great Seneca highway, Quince Orchard Rd. and route 28 (Darnestown Rd), the Kentlands and Lakelands have a wide variety of styles of homes. Some mirror the Victorian style, other go for a classic colonial historic feel, and even some "New Orleans Style" homes can be found. Beautiful pools, playgrounds, lakes, and paths are all prevalent. As well as nice basketball and tennis courts. Kentlands also has a Whole Foods and a restaurant for pretty much any cuisine. Personally, I run into a large number of relocating buyers who specifically request the Kentlands or Lakelands and are not interested in any other areas.

So, while all three are similar and will give a buyer looking for a community with everything in walking distance, they all have their perks.

Ben White Agent, Rockville & Gaithersburg Specialist

Affordable, Newer Condos in Montgomery County!

2010-01-14T13:08:00.000-08:00

Looking for a newer condo in Montgomery County for less than $200,000? How about less than $175,000 or even $150,000. You might be able to find a one bedroom or an older condo with very high condo fees, but what if there was a 4 year old development where you could get a 2 or 3 bedroom/2 bathroom condo with only a $300 fee for those prices?

Welcome the The Ashmore at Germantown Station. Sophisticated and elegant the Germantown Ashmore Condos are conveniently located near I-270, Germantown Rd, Great Seneca Highway & Park, Black Hills Regional Park, plus many stores, shops and restaurants. Being only four years old, it has attracted many first time home buyers and buyers who want something new yet affordable. The community is well laid out and features a pool, party room, gym, bike and walking trails. Not to mention, some of the units even offer a garage.

When first built and sold, some units were selling at or around $350,000. Now they are sometimes attainable for less than half of what they originally sold for. Due to this loss in value there are a number of short sales and foreclosure becoming available. However, they do not last long and multiple offers are being submitted on almost every unit that goes on the market. If you have further questions or interest, contact a real estate agent and loan officer to see if you can afford and have the agent keep a close eye on the community for you. The listings do not last long and you'll need correct help and advice if you want a sparkling 4 year old condo with all the modern amenities most buyers yearn for.

Ben White, MD Agent

Montgomery County Crime & Public Schools

2010-01-07T15:14:00.000-08:00

Have you ever wonder how the crime rate is like in a town of Montgomery County you want to find a home in ?

Or, what the school cluster of a certain home is?

Here is the answers: http://www.crimereports.com/

http://www.montgomeryschoolsmd.org/

Crime Reports allows you to search in a CITY, TOWN, STATE, even ZIP CODE, for every form of crime that may have been committed in a specific area - even underage drinking is listed.

The added bonus is the fact that you can also view Registered Sex Offenders specific location when you have that option checked off. The report is displayed over a google map that is very interactive and allows you to scroll through the area you are searching in and click on specific listings to view more information about it.

The School site offers a number of links and options to find out what you want to know about a certain school or what school your potential home would feed into.

You must know that a real estate agent cannot legally comment on crime so this is one of the best places to research. As an agent we must also refer you to the public school site because we cannot guarantee that the cluster won't change.

Ben White, Rockville Agent

Buying a Home With a Home Owners Association

2010-01-07T14:18:00.000-08:00

When buying a property with a HOA there are a few things a buyer must know. The most important being the rules of reviewing the HOA documents. The state of Maryland allows a buyer five days to review the HOA documents/resale package that must be provided by the seller prior to settlement. Once under contract the seller will order the package. Some seller may have already ordered it, but it must be recent. The docs must be no more than 60 days old. Upon review of the docs the buyer can terminate the contract and has no obligation to give an explanation.

The information will include all the rules, covenants, and regulations of the neighborhood amongst other valuable information about the community and the property. Personally, I have had a buyer terminate the contract because the HOA docs did not permit the owner have a satellite dish bigger than a standard TV dish on the property. This particular buyer had a job that required a large satellite be constructed in the back yard. Once he found out that this was not allowed, he had to terminate the contract. Other reasons may include parking regulations, pet regulations, or even gardening regulations. They HOA will usually mandate certain exterior colors be used and any exterior changes to the house or yard must receive approval as well.

Also, you will pay a fee for the HOA. You must include this in your estimated monthly payment, because it must be paid or a lien can be filed. The HOA fee does have it's positives though. What the fee covers will vary, but the may include lawn maintenance, snow and trash removal, general maintenance or certain amenities like pools & playgrounds etc.

When looking to buy be sure to have your real estate agent look into the community and obtain your re-sale package asap. You will also want your loan officer to include the HOA fee in your Good Faith Estimate. Be sure you review the docs thoroughly and are prepared to make the required payment.

Ben White, Gaithersburg Real Estate Agent

Foreclosure Buyer? Buying a Bank Owned Property?

2010-01-07T13:10:00.000-08:00

Over the last few years the real estate market has been flooded with foreclosed properties. Also known as REO(Real Estate Owned) and bank owned properties. Depending on a buyers price range and expectations, they may be looking at a majority for bank owned properties. Most of these listings will fall under $400,000. This price range overwhelmingly first time home buyers looking to take advantage of the tax credit before it expires. I work with a lot of buyers that fit this description and there are a few things you must know before making an offer or even beginning you house-hunt.

First, most people already know that they are being sold "AS-IS". This means that the seller will not make any repairs to the property whatsoever. However, the buyer can still have a home inspection contingency and have the option to terminate the contract should the results be unsatisfactory. It is considered a General Inspection Contingency. I have found that this is widely unknown and good news to buyers who may be looking at a majority of As-IS properties. Similarly, you must know that the condition of the property must be sufficient enough for financing. Again, most buyers in this price range will be obtaining an FHA loan. Well, The Federal Housing Administration requires that the property have no health, safety, or hazard issues and be considered livable. To pass this inspection done by an FHA approved appraiser, the property must have working main appliances(stove/oven, refrigerator). A dishwasher and washer/dryer are not required. There must be no exposed wires, mold, broken windows, missing handrails etc. It must have a working hot water heater and the heat must work too. The inspector must also determine that the roof has a minimum of 3 years life. Problem is, most bank owned properties have some of these issues and it can be difficult to purchase one with an FHA loan.

Next, the buyer must understand that they may not get an immediate response from the seller/bank and often times it could take about to a week depending on whether or not a weekend falls within those days. Yes, other offers may come in and you may now be in a multiple offer situation. You must know that it may take some time when writing the offer. Buyers can become very impatient and nervous during this process, but there is nothing that can be done. The banks move as quick as possible and have hundreds if not thousands of offers they are dealing with.

Lastly, they are may often times be delays in settlement due to issues with the title and/or deed. Sometimes the bank has not fully received possession of the property amongst many other logistical issues that can go awry. Yes you may be able to get a great deal, but these are a few things buyers should know going into this market.

Ben White, Montgomery County Specialist
Search for homes at http://www.choicerealestate.net/

Montgomery County Homes- Detached, Town-Home, or Condo?

2009-12-18T09:27:00.000-08:00

Are you one of the many first time home buyers who are just getting started? Has the tax credit lit a fire underneath you and sparked an interest in buying? Does the high inventory and low prices have you curious as to what you might be able to buy? You're not alone! I have spoken to an unheard of amount of potential buyers who are really just getting started and don't really know what style of home they want or can afford.

In Montgomery County you have many different options. From the standard detached(Single family) home/town home to condo style TH's, condo's, duplex style homes, and more. What can you afford? Well, if you yearn for the yard and some privacy you may be able to get a detached home in certain areas for under $250k. If you want to go as far north as Germantown you may get a detached home with some age(15+ years old) and will definitely need some cosmetic repairs at the least. There are also a large number of smaller detached homes built in the 1950's and 60's in Rockville, Wheaton, Takoma Park, and Silver Spring that may fall into that price range.

Town Homes vary so much in age, style, and size that you could get one for around $150,000 or one for upwards of 1 million depending upon the location. Some of the upper end TH's have elevators and 2 or 3 car garages. The most notorious TH's are located in the new "Park Potomac" subdivision. You may have seen this development driving on I-270 near the Montrose Road exit. On the other end, you can find tons of smaller TH's varying in price all throughout the county.

If you're the buyer who wants no exterior maintenance, doesn't need or want a lot of space, and may have a limited budget than a condo is a great option. Even if you don't have a limited budget but want a nice condo, Montgomery County can accommodate thoroughly. From brand new high end condos in Bethesda, Rockville, & Silver Spring to affordable older condos all over the place. Much like TH's. However, when buying a condo you must always keep the condo fee in mind. You do pay a premium to have all the exterior areas, common areas, and amenities maintained. Some may include a few utilities, but it is always a case by case basis.

So, if you're just getting started and considering your options contact a loan officer and real estate agent first. The loan officer will be able to show you want you are approved for and are comfortable paying. The agent can help you weigh the pros and cons of all of your options. of course, the loan officer and agent will do much more than that, but that will be the first step in your process. Good Luck to all!

Ben White, Rockville Agent

Buying a Home? Is cash better than a loan?

2009-12-18T08:17:00.000-08:00

Ever since the real estate market took a turn for the worst(or better depending upon who you are), we have seen a huge influx in cash buyers/investors. While cash can be enticing for many reasons, it is not as powerful a negotiating point as some buyers believe.

True, the mortgage market is less guaranteed and there is a chance a loan could fall apart. Adversely, there are no concerns about that with a cash offer. However, if the list agent and/or seller do their due diligence, you can often times be 99% sure that a potential buyer obtaining a loan will make it to closing and obtain the financing. So, if the seller is confident in the financing of a buyer, why would they want to take significantly less just because another buyer has cash?

I speak with a lot of of investors who would like to offer sometimes six figures less than the actual list price and market value just because they are making a cash offer. Low cash offers still must be reasonable because the seller will get the money one way or the other. The only time an extremely low cash offer is even relevant is if the property is in a total state of dis-repair and would not be approved for financing. Still, due to the large number of distressed properties, the "renovation loan" has become very popular again. A renovation loan is when a distressed property has an estimate done by a contractor for repairs needed and the scope of that work is included in the actual loan. Thus, allowing a non-cash buyer to purchase a property that would typically not be approved for a standard loan. This has made the low cash offers even less respectable or considerable.

In conclusion, if you're an investor with cash or a buyer with a loan, you need to understand the actual bottom line for the seller. This is usually when can settlement occur and how much money will they net from the sale? A cash buyer may try to entice the seller with a fast settlement, but most sellers already need or want 30-45 days to settle. Which is the same amount of time a loan will take to close. If a seller and their agent review a buyers financial information and speaks to the loan officer for the buyer than you should be able to determine whether or not the loan application/pre-approval is strong or not. This is especially true if the property is in decent shape and would not have any inspection and/or appraisal issues. If you're considering a cash offer keep all of this in mind and have a Realtor investigate the situation on the property and if there are competing offers. Cash is not as enticing as some see to think.

Ben White Montgomery County Realtor

Down Payment When Buying a Home

2009-12-11T09:54:00.000-08:00

As a Realtor® who receives many inquiries from potential buyers, I often speak with people who have no knowledge of the home buying process or what it takes to buy a home. This is not a bad thing at all, for we all must be taught and educated on the process at some point.

If you are somebody who has never bought a home or obtained a home loan then you may not know how much money you might need to obtain a loan. You probably know that you need a "good" credit score and have to make a certain amount of money. Both are true, even if you don't know the specifics. However, most people who are just getting started don't know the down payment that will be required. Some still think a 100% loan or zero down payment is attainable. Due to the sub-prime mess and tighter oversight of the mortgage market that is now near impossible. There are some programs that may offer a zero down situation, but they have strict requirements. The most common zero down loan is a VA loan which is only attainable by past or present military personnel.

Now a days, the least amount of money you will need for a down payment is 3.5% of the sales price. This loan is a FHA (Federal Housing Administration) loan. That is why it is so common now when it was pretty much ignored during the housing bubble. It also explains why you might have heard how the Federal Housing Administrations funds were so low. It's not just the foreclosures, but the extremely high amount of money being borrowed by home buyers. Other than the FHA loan you can obtain a conventional loan which will require 10 or 20% down. Usually the latter.

Yes we have extremely low rates right now, but your application and buying power is more scrutinized than ever. No investors want to purchase a loan that would be considered a risky loan. Your credit scores need to be higher, your down payment needs to be higher, and you must have a good "debt-to-income ratio".

So, if you're thinking about buying a home, speak with a loan officer first to see what you will need to do to buy a home and what amount you might qualify for. Things have changed, but it the long run there is no doubt it is for the better.

Ben White -- first time Buyer's Agent
240-848-3322

Montgomery County Winter Real Estate Market

2009-12-10T13:33:00.000-08:00

Throughout the years the winter season has been looked at as a slow time for real estate, new purchases, and refinances. The cold weather, school schedule, and holidays typically deter many home buyers. Most of the buyers and sellers decide to hold off until the spring. However, tis the season, because homes are still selling at a fast pace and low interest rates continue to influence more refinances.

On the real estate side, there are a number of factors that are helping the market stay active and strong. The largest still being the tax credit for first time home buyers which was extended from November 3oth, 2009 to April 30th, 2010. For any first timers who missed out on the opportunity the initially, they now have a second chance at free money and are taking it! The credit was also expanded to include move-up/repeat buyers. The Worker, Home ownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010). Those two incentives alone are an extra push to influence buyers to make the move now, despite the season. Consequently, sellers know this and more homes are being listed. The number of foreclosures and short sales are still high too so many people want to get the good deal and tax credit.

On the lending side, the rates still remain incredibly low and attainable. Obviously that is another incentive to buy now, but it also keeps people refinancing their current loans in to more affordable loans where the lower rate will save them money on a monthly basis. Loan officers and lenders have not seen a winter like this since the housing bubble and the feeling is mutual from Realtors.

So, while usually many buyers and sellers would hold off until the spring, thus is not the case this year. Tis the season to buy or sell your home!
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Ben White -- search Rockville MD homes -- 240-848-3322

Buying A New Home in Montgomery County? Need an agent?

2009-12-07T08:04:00.000-08:00

New home builders have slowed down substantially over the last few years following the housing bubble. Still, new home sales have been on the rise as of late and there will always be a market for new homes. Modern amenities, sparkling counter tops, and shiny hardwoods continue to draw buyers into their sales office. However, is it best to stroll into a new home sales office without a Realtor to assist you in your process?

Many buyers feel they can get a better deal without a buyers agent. This idea is similar to buyers attempt to avoid an agent altogether on re-sales, but is much more prevalent because it appears to be more "cut and dry" when buying a new home. True, they have a friendly and knowledgeable sales agent there to walk the buyer through every step, but you should never forget who they represent and what their motives are. To sell you the home at the highest price possible! Buyers may feel that there is no haggling and that everything they choose during the upgrade process is a flat rate, but that is often times untrue. New builders can negotiate and without your own representation they will feel less inclined and try to to the job given to them. Again, to sell the home at the highest price.

Adversely, when you use a buyers agent, you have someone reviewing all the recent accessible sales, talking to other builders, having a background of other new homes, and they may have previously worked with the particular builder. Most importantly, professionally negotiating the purchase. I suppose the argument made is that the builder saves money because they do not have to pay a buyers agent commission. Valid point, but it will surely offset in other areas where your agent would have benefited you. Not to mention all the work that is needed to be done. If your buying pre-construction than you have to pick everything out and all the terms are changing as you go. This can be very time consuming and stressful when you are already trying to juggle your everyday life.

New home builders will also try to entice you to work with their financing company in order to obtain the loan. They will offer incentives and closing cost help, but this is completely attainable without using their affiliated business relationship with a certain bank. You should always shop your rates with multiple loan officers and should always have a buyers agent to represent you when buying a new home. In the end, you will save more money and have someone who actually has YOUR BEST INTEREST in mind rather than theirs.

Ben White -- Montgomery County Realtor® -- 240-848-3322

Get Pre Approved first | MD home buying process

2009-11-25T09:43:00.000-08:00

Wednesday, November 25, 2009
Buying a home can be one of the most exhilarating and exciting times in ones life. It can also be a very emotional, difficult, & stressful time if you do not have the correct advice and process explained. The first step should always be to know where you stand financially if you are obtaining a loan in order to purchase the property. Getting a pre-approval and looking over a GFE(Good Faith Estimate) is increasingly important due to the strict loan approvals and all costs that are included in your monthly payment outside of just the principle & interest. A new buyer or even an experienced buyer, should speak to a loan officer as soon as they start to consider a purchase.

The Internet has made it easier and pretty much fun to look for homes. As a result buyers are looking at homes and wanting to shop before they even know what they are fully approved for, if they have the sufficient down payment, and if they would be comfortable with the monthly payment. Loans are more difficult to obtain, rates change regularly, there is no longer 100% financing options(Outside of VA loans & Rare Unorthodox Programs), and you must think about the other factors that make up the monthly payment. This includes not only the mortgage payment(Principle & Interest), but a few other important and often costly factors. First, if you're putting less than 20% down you will need mortgage insurance. Home Owners Insurance will be required as well. Second, you have property taxes. Last, you have to consider home Owners and condominium association fees.

All of this can be broken down and illustrated by a loan officer on the Good Faith Estimate.If you're thinking about buying, first see what loan amount you are approved for. Then have a loan officer run a GFE at that amount on a specific property that reflects what you desire. After that, you'll be fully aware of your buying power and it will make the process a lot smoother.

Ben White, Montgomery County Realtor
Specializing in first time home buyers in Rockville
240-848-3322

Buyer Agency- The Misconception

2009-11-18T15:06:00.000-08:00

As an agent who uses the internet to interact and meet clients I consistently receive phone calls or e-mails from a potential buyer who is interested in a particular property. As always, I eagerly pull up the information and offer my assistance.

However, I often times run into the same question: “So, you’re not the list agent?” I explain the nature of the marketing and that I can help them even more than the list agent. Still, there seems to be a misconception about buyer agency and agency in general. People seem to feel as if they can possibly get a better deal or save themselves money if they contact and/or work the list agent directly. The misunderstanding extends further because buyers may not know that they do not need to pay a buyer agent for their assistance. Buyer agents are paid out of the seller’s proceeds and only if the agent can find you a home and successfully reach settlement.

It is imperative for an active buyer to obtain a sole Buyer's Agent (like me) and have the agent committed to working for them. Especially in this very competitive buyers market, which is still the case even with the change of seasons.

Without that full level of service the buyer will lose out on opportunities and have nobody representing them or their best interest. When the list agent is contacted they may try to work both sides of the deal (leaving the buyer with no representation) or they may refer you to a buyer’s agent who already works with the list agent.

This can leave the potential buyer in a situation where they do not have full representation because that particular buyer’s agent and the list agent whom made the referral will have extra incentive to sell the initial property. Furthermore, the idea that a better deal can be had is entirely untrue. The list agent will be the only one getting a “deal”, for they will get both sides of the commission (buyer & seller agents). If you’re a serious and active buyer, obtain a buyers agent ASAP!

Maryland Buyer's Agent, Ben White
240-848-3322 -- Get pre-approved

Short Sales- Good for Seller, worth your time?

2009-11-18T14:46:00.000-08:00

Time and time again, buyers are contacting me and instantly informing me that they want to buy a short sale or foreclosure. I fully understand everyone’s desire to get a good deal on a home, but not every foreclosure is a great deal and short sales often times only hinder a buyer’s chance to obtain that goal.

When writing an offer or perusing a short sale the buyer must understand that once the owner/seller signs off on the offer and sends it to the lien holder for final approval, they are typically under contract for a certain amount of time depending on how the offer was written.

The list agent may ask for 30, 60, 90, or even 120 days to obtain “third party approval”. Anything less than that would be near impossible unless there had already been an offer that did the initial waiting. That commitment is negotiable, but it has been my experience that agents will request 60 days for approval. Meaning for 60 days you cannot write on any other properties. You are legally bound by a contract until that time expires.

Not to mention, majority of the time, the approval never comes and if it does you may be shocked to learn that the bank actually wants a higher sales price than what it was listed at. The list price is set by the agent and they may have no idea what the bank is looking for unless they have already had a buyer submit an offer who did the waiting.

There are many other negative variables that weigh against short sales, but the main issue is YOU NEVER REALLY KNOW how long it will take and if it will be approved.

Montgomery County MD Realtor, Ben White
240-848-3322

Montgomery County First Time Home Buyers

2009-04-14T14:18:00.000-07:00

First-Time home buyers continue to thrive in this market. Historically low interest rates, new tax credits, large inventory, and aggressive pricing by sellers has attracted many people to the thrill of home buying and ownership. Recently, I have been working with a very large number of first-timers. I have found that most of these buyers are looking within a price range of $250,000 and less. Between 2004 and 2007 it would have been almost unheard of to find a detached home or even a town-home in Montgomery County within this price range. However, due to the reasons stated above, I am helping more and more people accomplish this dream and goal.

Of course, many of these homes are bank owned or are selling through the short sale process, but not all. Even "normal/conventional" sellers must compete with the aggressive pricing caused by the high number of foreclosure or distressed sellers. Not only are buyers getting great deals, but they are also finding out that they can purchase a home while having the sellers pay their closing costs. While it has become harder to find down payment assistance, it has become almost standard to have the seller pay all of the buyers closing costs. In some cases, buyers can get a seller subsidy even greater then their required cash to close. Usually, closing costs are about 3% of the sales price. Lately, I have helped buyers get up to a 6% seller subsidy and use the additional funds to buy down their already historically low interest rate.

As a friendly reminder to my readers and any first time home buyer it is imperative that you speak with a loan officer first and complete a loan application. The fun part of shopping for homes with a realtor cannot begin until you know what you are approved for and what you are comfortable on a monthly basis.