Monday, September 19, 2011

Home Buyer Seminar with Don Wenner

You're Invited!

Home Buyer Seminar Saturday September 24th 9 am to 12 pm
Comfort Inn Lehigh Valley West

Learn the 12 Steps of Home Buying!

  • Exclusive 24 month Satisfaction Guarantee on any home you buy!
  • Get Access to ALL the listing including Foreclosures & Distress Sales
  • 100% Financing EVEN with credit issues!
  • Learn the HUGE tax savings of owning a home!
  • Stop making your Land-lord RICH and build YOUR future
  • Learn how to pay off a 30 year mortgage in just 18 years!
  • Become an Elite Preferred Home Buyer & save over $6,421 on your home purchase!
  • Get pre-approved right on the spot
  • Learn the secrets Realtors & Lenders do not want you to know!

We also will have
  • FREE home inspection!
  • FREE Security System!
  • FREE Appraisal!
  • FREE Credit Repair!
  • Plus more HUGE Discounts & Gifts!

Refreshments & Coffee will be served.

No Obligation!

Hosted by Don Wenner of DLP Realty - the #1 Real Estate Agent in the Lehigh Valley
& one of top real estate professionals in the WORLD by Wall Street Journal
& Dan Thierry of Dominion Mortgage the most successful Mortgage Company in the Lehigh Valley
co-hosts of The Real Estate & Money Power Hour on WAEB AM 790 Sunday's 12-1PM

To Reserve your spot: email don@dlprealty.com or call 484-366-1213.

Directions:

From Rt 78: Exit 49B (Rt 100N) take first right onto Imperial Way, hotel on left. From Rt 476 (PA Turnpike): Exit 56 (Rt 22/78W toward Harrisburg)to Exit 49B (Rt 100N), take first right onto Imperial Way, hotel on left
Address: 7625 Imperial Way, Allentown, PA, US, 18106

Friday, September 2, 2011

How Much Will Closing Costs...Actually Cost?




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So how much do closing costs...actually cost? Let me show you exactly what goes into "closing costs". We're going to use a sample selling price of $200,000. And here are the categories we will start with:

Commission
Transfer Tax
Misc: Preparation of Deed, Settlement Fees, Notary Fees

These Miscellaneous Fees should only be a very small amount.
Around $200.

The Transfer Tax will run (in Pennsylvania) 1%. So in this example,
that's $2,000.

The Commission of the agent generally runs around 6%. Now this percentage varies from market to market, and can vary based on the different services each agent may be providing. We'll use 6% for our example here, which is $12,000. So we'll add all these up, and we come up with $14,200.

Now lets move on to taxes. The taxes for a home are prorated over the year, based upon when you close on the home. If you paid all the taxes(lets say $3,000), and the home closed on July 1st, you would receive a refund of $1,500. If the taxes had not yet been paid at all, then you would owe $1,500. If your tax payments are escrowed as part of your monthly payment, there are a few different variables that can come into play as far as the proration is concerned. So depending on your tax situation, you will either be adding, or subtracting, the tax amounts. For our example, we'll consider the taxes a wash (or 0 affect).

So we have the selling price of $200,000, less the $14,200 in fees & taxes, leaves us with $185,800. Now we must subtract what is currently owed on the home...we'll assume $150,000. Which now gives us $35,000. This is what you would walk away with at the closing of your home. Not a bad payday. Unfortunately, not everyone will end up with a positive number. If this number is negative, there are few options to explore such as a short sale, obtaining a new loan, or possibly dipping into the savings account.

I hope this was helpful, and if you have any questions, please don't hesitate to call or e-mail me.

How Much Does It Really Take to Buy a Home?




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If you're in the market to buy a home...What's it really going to cost you? How much money will you actually need? Let's walk through an example. We'll assume a purchase price of $150,000.

For starters, there's a transfer tax. That tax (in the state of Pennsylvania) runs at 1%, or in our example, $1,500. Next, we have title insurance. This can vary based on the price of the home, but typically we see it around .7% of the home price. This puts it a little under $1,100. If you're putting less than 20% down, you'll need to escrow your taxes and insurance. Again, this will change based on the exact location of your home. It will also depend on when, during the year, you close on your home. We'll assume for our example, $3,000 in taxes, and insurance of $500. Next we have mortgage fees. This will vary from lender to lender. I work directly with Dominion Mortgage, who guarantees the lowest closing costs and the lowest rate, which is typically $1,000. Next we have an appraisal, which costs about $400.

Lastly is inspections. These aren't necessarily a direct closing costs, but definitely an ordinary expenses when buying a home. They can range from $350-$700, depending which inspections you have done. So let's take a look at all this:

Transfer Tax:      $1,500
Title Insurance:   $1,100
Taxes:               $3,000
Insurance:          $   500
Mortgage Fee:     $1,000
Appraisal:           $   400
TOTAL:                 $7,500

Comparing these costs to the purchase price, we're looking at about 5%. On top of that, you may need to put money down on the home. For an FHA finance, the most common type of financing, you'll be required to put down 3.5%. Here, that comes out to $5,250. Add that to the $7,500, and we're looking at a pretty big bill.

So what are your options? How does anyone afford a home? In some cases, we still have access to 100% financing programs for qualified buyers. If this is of interest to you, please call me, and we'll see if we can get you 100% financed. If this isn't an option, we can also ask for what's called, seller assistance. This is where the seller agrees to roll the closing costs, into the purchase price. Essentially, this allows the buyer to finance these closing costs over the life of the loan, and only require the buyer to bring the 3.5%.

So what's best for you? That's a great question, and I'd love to help you work through it. Give me call, or shoot me an email, and I'll help you through the details or what will best suit your situation.

Wednesday, August 24, 2011

What’s a Real Estate “Short Sale” and Why Should I Buy One?



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The best way to explain a short sale is with an example:

Assume a homeowner has an unpaid loan mortgage balance of $200,000, but the property will sell for only $175,000. The lender holding the mortgage agrees to sell the house for the $175,000 amount, which, of course, leaves it “short” of the full amount of $200,000. Thus, the name “short sale!”

Obviously, lenders don’t like short sales since they’re not in business to lose money. But such situations do occur for various reasons often related to “hardship” situations. Examples include:

• Permanent injuries
• Financial insolvency
• Job layoffs, etc.

This is a sad situation for the homeowner, but it does offer an opportunity for you to pick up a bargain. However, there are several potential downsides you should be aware of before you make an offer.

Pitfall 1: Allow time for the lender’s decision.
Once your offer is accepted by the seller, the contract will be sent to the seller’s lender for approval. This process can take anywhere from 2 to 12 months, and there’s oftentimes no way to know beforehand exactly how long the lender will take.

Pitfall 2: The lender is under no obligation to accept the short sale.
Often times, lenders will come back with a counter of a higher price, or will sometimes reject the offer outright. There is no way to know beforehand exactly what the lender is thinking. This risk can be reduced by pre-qualifying the seller and making sure he or she has a genuine hardship, and by making sure you offer close to market value.

Pitfall 3: The seller must be committed to the process.
A great deal of paperwork and commitment will be required of the seller. There have been cases where the seller does not complete everything that is necessary and causes the lender to reject the deal. Additionally, there have been cases where the seller backs out to declare bankruptcy. Make sure the seller is committed to the process before you begin!

Summary

You can pick up great bargains in the short sale market, but you have to be very knowledgeable and very patient! And, as mentioned earlier, there are risks and often times you will face disappointment. Hiring a professional realtor who has experience with the ins and outs of short sales can help reduce these risks.

Monday, August 15, 2011

Tens of Thousands of Dollars Down Are No Longer The Norm



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There has been a common misconception that large amounts of cash are required in order to purchase a new home. However, in light of the economy and in particular the real estate industry, the government has definitely been making it possible for homebuyers to get into their new homes. The goal at hand is to help potential homeowners button up their transactions with as little headache as possible and as much money in their pockets at the end of the day.

In fact, not only do you not need a lot of money to put down on the purchase of a new home, you do not really need a lot of money period.

“The Mortgage Industry Has Changed and I’ll Have To Fork Over Thousands”

Well, yes – you will have to pay some money to get the keys to your house but those “thousands” are not in the tens, rather they are just that – a few thousands. The most common form of financing that people are tapping into these days is FHA financing. The beauty of FHA financing is that it allows homebuyers to put only 3.5% down on their home.

“I wish the Mortgage Industry Would Let My Friends and Family Help Us”

In many mortgage scenarios, the concept of a monetary gift is simply not allowed. But with FHA financing the entire down payment amount can be obtained from gifts. This makes it not only easy but also doable for many people who are already paying a certain amount each month and only need a small financial boost to get into a new home.

“A Small Amount of Money Down Won’t Get Me the Home I Want”

Again, not true. In fact, with housing prices as low as they are these days you have a fantastic advantage if you are in the market to buy a new home. While it is definitely a challenged market for a lot of people, especially sellers and those expecting significant returns on their property in the short term, for those on the buying side of the fence it could not be a better time.

“But What About All The Closing Costs?”

This is the best part. More and more often, buyers are getting their sellers to pay for all or most of their closing costs. This leaves more cash in buyers’ pockets with which to spend toward all that stuff they will need to get settled in the new home. When you factor in this added perk that has become widely prevalent these days, the end result is that the only down payment amount you will have to fork over to get in to your house is a mere 3.5%. That is $7,000 – as opposed to the $40,000 figure a lot of people think it would have cost.

“What If FHA Financing Is Not Right For Me?”

If all else fails, there is still the traditional form of home financing that always was. Prospective homebuyers can still obtain one hundred percent financing by way of USDA home loan programs and other traditional sources. Again, it is entirely doable to get into a home with no money down as well as have the home financed with no money down.
~
Since the real estate industry has faced many challenges, the items we see in the news and things mentioned by analysts are often economy-centric. What really matters is where you stand in the home buying process. What exactly are your needs? Depending on your individual situation, your Realtor should tailor a specific plan of action that will give you the best results based on the factors that count for you.

Thursday, August 4, 2011

What’s a Real Estate “Short Sale” and Why Should I Buy One?



Watch on your mobile device >>

The best way to explain a short sale is with an example:


Assume a homeowner has an unpaid loan mortgage balance of $200,000, but the property will sell for only $175,000. The lender holding the mortgage agrees to sell the house for the $175,000 amount, which, of course, leaves it “short” of the full amount of $200,000. Thus, the name “short sale!”

Obviously, lenders don’t like short sales since they’re not in business to lose money. But such situations do occur for various reasons often related to “hardship” situations. Examples include:

• Permanent injuries
• Financial insolvency
• Job layoffs, etc.

This is a sad situation for the homeowner, but it does offer an opportunity for you to pick up a bargain. However, there are several potential downsides you should be aware of before you make an offer.

Pitfall 1: Allow time for the lender’s decision.
Once your offer is accepted by the seller, the contract will be sent to the seller’s lender for approval. This process can take anywhere from 2 to 12 months, and there’s oftentimes no way to know beforehand exactly how long the lender will take.

Pitfall 2: The lender is under no obligation to accept the short sale.
Often times, lenders will come back with a counter of a higher price, or will sometimes reject the offer outright. There is no way to know beforehand exactly what the lender is thinking. This risk can be reduced by pre-qualifying the seller and making sure he or she has a genuine hardship, and by making sure you offer close to market value.

Pitfall 3: The seller must be committed to the process.
A great deal of paperwork and commitment will be required of the seller. There have been cases where the seller does not complete everything that is necessary and causes the lender to reject the deal. Additionally, there have been cases where the seller backs out to declare bankruptcy. Make sure the seller is committed to the process before you begin!

Summary

You can pick up great bargains in the short sale market, but you have to be very knowledgeable and very patient! And, as mentioned earlier, there are risks and often times you will face disappointment. Hiring a professional realtor who has experience with the ins and outs of short sales can help reduce these risks.

Wednesday, June 29, 2011

Preparing Your Home to Sell



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Most people think of the big things when considering what makes a property ripe and ready for sale, generating the interest of lots of buyers and creating lots of incoming offers on the sale. But what many do not realize is that by just changing one aspect of your home’s interior, they can and will significantly enhance the value of that home. By installing quality, buyer-friendly flooring, the value of a home will jump up, as will the interest from buyers looking for the perfect place. 

Choosing the Right Type
Durability, Looks, Value

When you are shopping for the perfect new floors, there are some things to consider first. What will be the primary use for the area? How much traffic will there be? What are the priorities in terms of looks vs. value? Will the home be used for a while or is the flooring being enhanced primarily prior to sale?

Once you have answered some of these questions, it will be easier to decide on a type of flooring. Typically basements, children’s rooms and play areas plus hallways require heavy duty and more durable carpets or hard floors. There are many options that will provide both durability and aesthetic enjoyment, such as Berber carpeting or commercial grade laminate flooring. Master bathrooms, kitchens, mudrooms and other high-traffic areas are well-suited for the use of ceramic tiling, which while can get expensive, is an excellent choice because of its long-lasting quality and stylish appearance. Buyers are naturally drawn to homes with more ceramic tiling and high-end floors.

Finding the Right Colors
Modern, Stylish, Versatile

Style is relative. Where one person may want a kaleidoscope of colors all around them, others may find a pastel color palette appealing. The single best way to accommodate potential buyers in all situations is to install modern materials, but in neutral tones that will work with any design scheme. The key to style is not in the colors, rather the latest available types out there. If you choose a Sisal carpet, buyers will automatically be pulled in by the versatility and modern look of the flooring. High-gloss marble tiling for more upscale homes is also a good choice, but again keeping with a neutral color palette. Since walls, furniture and other design elements are adjustable it is important, especially in cases where you are looking to sell the home, to install light to medium neutrals. So, for instance when considering hard wood floors, opting for a walnut may be better than cherry since the latter will show dust, is slightly more limiting in terms of the rest of the design scheme and may not be liked by all potential buyers.

Getting the Best Quality
Long-lasting, Easy to Manage, Updated

There are two types of quality; good quality and bad quality and nothing in between. By opting to invest a little more now, the returns will be far more fruitful later. Some cheaper flooring companies try to get away with lower prices using tactics like camouflaging low quality carpet with better padding or offering quality grades that have the durability to last only a year or so before needing to be replaced. 


When choosing flooring, save by getting better quality materials and products that are on sale or at an outlet rather than lower-priced and consequently lower quality to begin with. A little extra now can translate into a significant difference later, in many aspects.
~
If you want your home looking great while at the same time giving you great returns at the time of sale, there is a huge opportunity to do so by enhancing the style, color and quality of your existing flooring. Whether you opt to install fresh, durable carpet in the basement or new porcelain tiling in a guest bathroom – no matter where you make the changes, they will be noticeable to buyers, which means success for you!