Managing Expectations

When I was a child, my mother would always wait until the very last minute to announce news; good, bad, or indifferent.  Now that I have a child, I understand why.  Children can only process so much information at one time.  They have a tendency to get carried away with their imaginations in expectation of an event, or discovery.  It is really odd that we don't mature very much past this fact as adults, without some help. (smile)

The same is true in the mortgage and real estate business.  Many first time buyers, (and repeat buyers) often buy into the "headlines" or sales tactics of the industry, without careful thought of the "fine print". Understand the details when purchasing or financing real estate.

Here are a few fine print notes to be noted:

Foreclosures don't always mean that you are saving money.  In today's market, buyers are driving demand for certain properties so high that you might be paying close to market price for a bank owned property.  Often times they are left in need of major repair and or appliances, all of which can be costly.  The good news is that there are loan options available that allow you to buy and improve the house in the same loan. 

Depressed market values don't always mean that buyers always win on price.  The reality of placing a contract for real estate today could very well be the beginning of a bidding war.  When several people desire the same property, its marketability instantly increases.  It is very important for buyers to know what they want, and to know how much they are willing to pay for a home before they even look for properties.  Often time's buyers don't bid aggressively enough on the ideal home, and they lose the opportunity of their first choice due to indecisiveness.   In today's market, if you can afford it, and you want it, give them the listing price with your first offer!  

When refinancing, you can not have your cake and eat it too.  There is very little chance that you'll be able refinance with no closing cost, lock in a great interest rate, decrease your loan term (30 to 15 years), and save money each month too.  I always ask my clients what is their most important objective for refinancing a loan.  They always want the world, for the cost of a small island.  You can not save big now and pay the loan off in 15 years.  You can not owe more than your home is worth, (or close to what it is worth) and get the best rate available.

These are some examples of the fine print that exist in the world of real estate/lending. 

Like a good mother, a great realtor or loan officer will always set their clients expectations up front.  This way there should be few disappointments and minimize the repetitive "are we there yets!"

You can find our more about me at
www.lendingbliss.com

You can apply online at
www.venturewithbliss.com