What Does It Mean to Be Offer-Ready?

What does it take to be ready to act in this market? Michelle from New American Funding is here to discuss.

Today, I’m here with Michelle Piccinini from New American Funding to talk about market inventory. How can you be offer-ready in this market?

According to Michelle, being offer-ready refers to the low amount of inventory we’re seeing in the market. Houses are going fast, and multiple offers are more and more common. 

If you’re offer-ready, it means that you’re pre-approved, you have a letter in hand, and you’re ready to go. When you’re offer-ready, you're prepared to take immediate action when the right home comes on the market. Because of the multiple offers we’ve seen, many of those offers are coming in over asking price.

"When you’re offer-ready, if that perfect home becomes available on the market, you’ll be ready to write an offer on it right away."

On the lending side of things, we’ve seen many appraisals come in low. Yes, you got into contract, you won, and it is your home, but now you still have the financing contingency. When the appraisal is done, properties are increasing in values, but we aren’t seeing homes closing at a fast enough rate to justify the value. From a lending perspective, we just want to make sure that you’re prepared.

If there’s a situation in which a home comes in $10,000 under what you’ve agreed to offer, we now have a situation on our hands: will the seller agree to drop the price? Do we have the money from the buyer to make up that difference, or does the whole thing fall apart?

In this crazy market, it’s wise to work with an experienced agent and lender who can help you navigate situations. That's why we are here.

If you have any questions, please reach out to us. We would love to help you.

Loan Limits Are Changing in Washoe County

Loan limits are being increased in Washoe County, which is good news for both buyers and sellers. Here’s why.

Big changes are happening with loan limits in Washoe County this year.

Basically, these changes will give you more of an opportunity to secure an FHA, VA, or conventional loan at higher price points.

Currently, the maximum loan limit for Fannie Mae and Freddie Mac is sitting at $424,100, and they’re increasing that limit to $453,100. Now, you can start looking for homes in the $475,00 price range and still only put 5% down. If you don’t have as much to put down as you like, you’ll be able to get into a market you’ll be happy with.

The FHA loan limit will increase from $345,000 to $370,300, so they’re starting to build back up to that $403,000 price point they were at in 2008 and 2009. If you need an FHA loan to get back into the market because you’ve perhaps had a foreclosure or a short sale in the past, this will help get you a home you’re happy with.

"These changes give buyers more options on the loan side."

With the direction of home prices trending upward, these changes give you more options on the loan side. If you’re a seller, this is also good news because it increases buyers’ affordability.

If you’d like to get pre-approved for a loan or you have any questions regarding any of these changes, don’t hesitate to reach out to us. We’d be happy to help.

What Items Will You Need to Get Pre-Approved?

Today, Michelle from New American Funding will discuss both rates and what items you’ll need in order to get pre-approved to purchase a home.

Today I have with me a special guest, Michelle from New American Funding, to talk about rates and the items you’ll need in order to get pre-approved.

Michelle, how are the rates?

The rates are good! I feel like every time I’m here, I’m always talking about how rates should be going up, but we’re still not seeing that. Rates are still trending in the mid-to-low fours. For a buyer right now, it’s amazing to say that we’re almost to the end of 2017 and rates aren’t in the 5% range as was predicted.

I don’t know if we’re going to see a drop into the low threes like I know everybody wants, but take advantage of the fact that we’re still in the fours. A first-time homebuyer with good credit can still get a really good rate right now.

"The standard deduction has increased to $12,000."

What items will a potential buyer need in order to get pre-approved?

Basically, we’re going to require your first-born and a blood sample.

I’m kidding! But it does feel very, very intrusive. The reason is that we are now in a mortgage arena that we have to document every piece of information that is relevant to your file. We’re looking at your income, your assets, and any properties you may own. We’re going to need pay stubs, tax returns, and similar documents to make sure that you can qualify to pay the mortgage, and we need to check your bank statements to make sure you have the funds available.

A lot of people confuse pre-approval with pre-qualification. Pre-qualification is essentially where you tell someone your information and that’s it. They don’t verify it. A seller and their listing agent will need to know that I’ve verified everything the buyer has given me and that I’m not just saying, “Okay, let’s go!”

We want you to understand that we’re here every step of the way, and we’re going to ask you these questions and collect this documentation so that you are a truly qualified buyer and you’re ready to go.

If you have any questions about buying, selling, or getting pre-approved, feel free to contact us. We’d love to help you.

New Homebuyers in Reno Can Buy for Just 1% Down

New American Funding has just announced an amazing new home loan option designed for first-time homebuyers in the Reno area who don't have as much money for a down payment as they'd like.

New American Funding has a new home buying program hot off the press that we wanted to share with you today. This program is designed for first-time homebuyers and those who need some help with a down payment. 

The program is a 1% down option for first-time homebuyers here in the Reno area. 

Fannie Mae requires a 3% minimum, so what we love about this program is that New American Funding is actually offering a 2% grant to offset the requirement.

"New American Funding offers a 2% grant to offset Fannie Mae's requirement."

This is an amazing option for first-time homebuyers who don't have the savings for a down payment currently or don't qualify in a home buying threshold that they want to. It's also a great opportunity for those who want to take advantage of this great market and are excited to buy a home.

There are some income limitations so that they can assure the program is tailored to those who truly need the assistance. 

If you're interested or just want to learn a little bit more about this loan option, give us a call or send us an email. We'd love to tell you more!

Finally, Some Good News for Homebuyers

If you went through a bankruptcy, short sale, or foreclosure, Freddie Mac is going to make it easier for you to buy a home starting June 1st, 2017.

Today I’m here with Michelle Piccinini from New American Mortgage to talk about some changing lending guidelines. 

As you know, 2008 through 2012 were difficult years for our market. If you went through bankruptcy, a short sale, or a foreclosure, it’s been very challenging for you to get into another home thanks to lending restrictions. 

As of June 1st, 2017, Freddie Mac will make things a little easier for you to buy a home—if you can document extenuating circumstances. 

"The new guidelines will help you buy a home sooner."

Freddie Mac is asking for some documents showing why you had to go through a short sale, foreclosure, or bankruptcy.  If you can prove a change of income or job loss, that would be an extenuating circumstance. If you had an adjustable mortgage and your monthly payment went from $1,200 to $3,500, that would be an extenuating circumstance as well. 

Your approval is up to the lender’s discretion. That’s one thing that’s great about New American Funding; because they are a direct funder/servicer, they have more control and you will work with the same underwriter throughout the entire process.

If you are able to provide documentation and you would like to get a conventional loan instead of using the FHA band-aid, you won’t have to wait as long to purchase a home, either. If you went through a bankruptcy, you’ll only need to wait two years instead of four; foreclosures are three years instead of seven, and short sales will be two years instead of four. 

If you have any questions about financing, you can reach Michelle at (775) 501-8546 or give me a call. We would be happy to help you!