Great Home Search sites in the Philadelphia area

When seeking out a great home search site you will most likely want to use one that does not sell your information or bombard you with phone calls. You probably just want to browse the MLS via a website that you can create a profile and get a customized list of homes sent to you at the frequency of your choice. If you don't want a million phone calls until you actually see a property you like then try one of the following sites in the Philadelphia surrounding counties: www.findchestercountyhomes.com or www.viewhomesinmontgomerycounty.com These sites are ran by a local wholesale real estate firm, Direct RE LLC. They seek out and partner with only the best agents and banks in the counties and provide info and services when you want it. They only call when you request info or help. These are great resources to get preapproved and introduced to a great realtor who has top credentials in the industry. Sort of a one stop shop that already did their due diligence so you don't have to. Happy House Hunting. Tom at PhillyFinance.com

Dealing with a septic system?

If you are thinking of purchasing a home with a septic system there are a few things you will want to consider. It may make sense to have it inspected before you spend the money to have the home inspected. Reason being, you may have the home inspected first and there may be issues and there may not be issues but if there are septic system issues and you already paid for the home inspections then if things don't pan out with your septic, you've wasted more money then you had to. The amount of money to replace a full septic system and drainage field ranges from $10-40K. Negotiating the deal with a broken septic system can be tricky if you aren't careful. In most cases the seller should bare most if not all of the costs. This obviously depends upon how you settled on your original purchase price. Most likely you knew there was a septic tank and took that into consideration when putting in your offer. You did however expect it to work for the price you were offering and we're hoping for the best. There will be cases where it makes sense for the buyer to buck up. If you come across septic tank issues you should consult with a realtor who has experience with these types of situations if you are not already. It may make sense on your part to kick in $5-10K on a $35k septic replacement if you really like the home and don't want to spend the time and money to continue looking at other homes. You'll have a brand new system at a fraction of the full cost. Also, check with your lender for advice on how to proceed with your mortgage rate lock etc. If you need to apply for a mortgage you can do so on our site. CLICK HERE Another thing to consider is the time frame in which it can take to negotiate, come to agreement, have the job approved by the county, municipality, city, etc. Then having a contractor available to do the work, weather delays and inspections of the installation. You could seriously be looking at 6-8 months in some cases. Here at www.phillyfinance.com we are here to educate and lay out the basics of what to expect and give you some things to think about. If you have questions feel free to reach out and we'll get back to you as soon as we can. All the best!

Buyers offering over list price?

Buyers offering over list price? In recent weeks there have been reports of buyers offering over list price. On the whole, this has not happened in years so the subject is certainly getting attention from realtors and lenders alike. CAUTION TO BUYERS: Be careful if you decide to put in an offer over list price. If your over list price offer gets accepted you may run into issues if your appraisal does not come in equal to or greater than the offer you made. If this ends up being the case, you will be on the hook for the difference. If you do not have the funds to make up the difference then your loan will be denied. The market has not had time to absorb any sharp increases in price so appraisals will remain at levels consistent with comparable recent sales. Example: $200,000 list price, you offer $205,000 and it gets accepted. A week later your appraisal comes back at $200,000. You now owe an additional $5,000 at closing unless the seller is willing to renegotiate. There is a shift occurring in the real estate marketplace that is causing bidding wars but you have to exercise caution and discuss in length with your realtor and lender to understand fully the implications of your offer and possible outcomes. It is still winter and Spring has not sprung. There will soon be a flood of inventory to hit the market, so don't rush. This should make bargaining a little easier from the buyers end. On the other hand, sellers may just want to wait out your offer in hopes that they will have increased traffic and perhaps a higher offer coming down the road. Each situation is unique and it helps to obtain as much info and education on the process as possible before making any moves. Phillyfinance.com is striving to be that resource. If we can help answer any questions please contact us. For more on “buyers offering over list price”, visit www.phillyfinance.com to speak with a licensed mortgage professional.

My offer was accepted, now what?

The question, “my offer was accepted, now what?” is a common one. First time home buyers usually have no clue of what to do from there. The following is a list of things you can expect from your mortgage lender and realtor. -You should already have a pre-approval and inspection, so now you need to decide if you want to continue with the person who gave you the pre-approval or find a new lender. Once you decide, your lender will prepare the initial mortgage disclosures and send to you to sign and date. Along with the package should be a list of items(for ex.-copy of ID, paystubs, W2’s, tax returns, bank statements, copy of Home Owners insurance) you will need to gather for underwriting and submit along with the signed disclosures. You should make this a priority and return all docs and requested items within 3-5 days. -During the time you are signing your docs and preparing the underwriting items your lender orders your appraisal and title insurance and the sellers agent should receive a call from the appraiser to set up a time for them to come inspect the property. The report usually takes 3-5 days to get back to your lender. Title work will be sent directly to your lender so you really have nothing to worry about there. -Once your appraisal is complete and sent to your lender you should be notified by the processor or Loan officer as to what the value came in at. Also, if you paid for the appraisal you are legally entitled to a copy and the lender must provide it. If the value is in line and the deal can continue then the loan will go to underwriting. -Most banks/lenders/brokers do their best to meet the commitment date and will issue the commitment pending items that may still be required for a full loan approval. So don’t be surprised if you are asked to furnish additional documents during the entire process. -Once approved, a settlement date can be established. The estimated settlement date will be in your agreement of sale (AOS). Reality is that you can’t close unless the money is ready. -Last step- Usually the day of settlement there will be a final walk through just to make sure any agreed upon terms and conditions are met. Like, the fridge is still there cause that was part of the agreement. Your loan originator should convey the amount of funds due at closing the day before so you can obtain the certified funds. Usually checks are made payable to the title company, as they act as the legal non-interested third party and disburse all funds. Bring your ID and a well stretched hand because you will be signing everything all over again. After you sign you will be handed your keys and will most likely hear the words “Congratulations” being thrown around the room. For more info on “my offer was accepted, now what?” visit www. Phillyfinance.com and call the number for professional advice.

Philly Rental prices increase

Philly rental prices have increased here and there. As of late, with mortgage underwriting guidelines tight and home prices rising many consumers have taken to renting even though we are still at historically low mortgage rate levels. Whether consumers are running into issues getting approved for a mortgage, don't have funds for down payment or just can't find the right home...there are a number of reasons that monthly rentals are on the rise in the Philadelphia area. Of course, this is good news for investors who own the homes. Not so good news for those living in the units. Overall, the median rent list price settled near even, year over year, for Philadelphia as a whole at $1200/month. But areas such as South Philadelphia saw a rise as much as 25% over the course of the year. Other areas like Richmond, East Mount Airy and Germantown also saw sharp Y o Y increases. Those were 15%, 14% and 10% respectively, according to Zillow.com. SOME THINGS TO KEEP IN MIND: Spring is near and we should see a flood of inventory hit the streets as far as available homes for sale. This could put a little downward pressure on home prices and make bargaining a little easier for buyers. Simple supply and demand. From a sellers perspective, they will be expecting more traffic as folks begin their home search and may just wait for that perfect selling price they were hoping for. There are always two sides to a story. No matter what occurs, you will want to be prepared. Learn the lingo of mortgages and real estate. Do your homework. Getting pre-approved is a must before shopping for homes. This way you are not searching for homes out of your budget, which prevents a major let down if you find your dream home but later find out you can't afford it. In the meantime, SAVE, SAVE and SAVE some more. If you can put 20% down, do it. Either way, I'm available to show you alternative ways to finance a home. Happy hunting!! If you have questions on why Philly rental prices increase, please visit www.phillyfinance.com

Piggyback loan

Piggyback loan is a financing option available to home buyers in the Philadelphia area. A piggy back loan is when two loans are taken simultaneously. Simultaneously closing both loans at the closing table. Below is additional Philadelphia Piggyback loan financing information for home buyers to consider.

Benefits of Piggyback Loan Financing

Can be used to avoid jumbo pricing or get into a property with only 10% down. (80-10-10) No MI. 80% 1st mortgage 10% 2nd mortgage 10% down NO MORTGAGE INSURANCE This is just one scenario. To work out a specific scenario with an experienced professional visit www.phillyfinance.com

Philadelphia Piggyback Loan Financing Requirements

Requirements differ from lender to lender. Contact an NMLS registered and licensed loan originator today at www.phillyfinance.com

Summary of Piggyback Loan Financing

Specific requirements of Piggyback loan financing can vary based on the lender, type of property, and your personal financial situation. Above are only general guidelines. For additional details on Philadelphia Piggyback loan financing or purchasing a property in the Philadelphia area, please contact Thomas Spitko at Centennial Lending Group, LLC by calling 484-824-4489 or emailing Tspitko@rhfunding.com.
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HARP 2 is a financing option available to home buyers in the Philadelphia area. HARP 2 is a Government program that allows underwater borrowers to refinance their mortgage to current interest rates without paying down principal and without having to pay mortgage insurance. Below is additional Philadelphia HARP 2 financing information for home owners to consider.

Benefits of HARP 2 Financing

Lower your rate if you are underwater. Your mortgage must be owned by Fannie Mae or Freddie Mac.

Philadelphia HARP 2 Financing Requirements

 The mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac  The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009. The current loan-to-value (LTV) must be greater than 80%. The borrower must be current on the mortgage at the time of the refinance, no late payments in the past six months and no more than one late payment in the past 12 months.

Summary of HARP 2 Financing

Specific requirements of HARP 2 financing can vary based on the lender, type of property, and your personal financial situation. Above are only general guidelines. For additional details on Philadelphia HARP 2 refinancing or purchasing a property in the Philadelphia area, please contact Thomas Spitko at Residential Home Funding by calling 484-770-8478 or emailing Tspitko@rhfunding.com. You can also visit his website at www.phillyfinance.com to apply.

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