Hope the spring market is treating you well!
With the active real estate market kicking into full gear our Community Bank can give your buyers the edge! We offer the ability to close a loan in as little as 2 weeks and also offer second mortgage products that buyers can use to go non-contingent on their next home purchase. These features were featured in the Washington Post real estate section this past weekend.
Below are a few excerpts from the article:
The Washington Post, “Handling our hot market” Saturday, May 12, 2012, page(s) E1, E3
Regarding purchasing while retaining an existing home vs. selling first and then purchasing a new home: “We run the numbers both ways up front for pretty much anyone,” said Nick Pakulla, loan officer with First Place Bank in Rockville. In the current hot real estate market, “there’s no magic bullet anymore,” he added. “The most important thing any good lender would do is make sure you can qualify for the new mortgage non-contingent.”
One financing option that First Place Bank has found increasingly popular for buyers who qualify is to temporarily secure a second mortgage on the new home that they can then pay off when they sell the first home. “We’ve had a number of borrowers who don’t even make a first payment and most keep it for only a couple of months,” said Pakulla. However, even this solution has what amounts to a major hurdle for many: “You have to have at least 10 percent down on the new home and there are more strict qualification requirements with regards to income and reserves,” said Pakulla.
Negotiate shorter contingencies, including the home inspection, home appraisal and financing. Have a clear conversation with your lender about exactly how long it will take to secure financing and talk to your realty agent to determine potential closing dates. The lender’s cooperation is crucial.
“Legally we can close in eight days,” said Pakulla. In this competitive market, offering to close in a hurry can make buyers more attractive. “That’s definitely a good strategy people can use,” he said. The shortest closing Pakulla has done recently was just 10 days. If you can close in under a month or less than two weeks, make sure your agent includes a cover letter with your offer letting the seller know this.
You can read it directly:
Mortgage rates continue near all-time lows! Please keep us in mind for any buyers that can use some of our bank’s unique abilities.
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