Want to Buy a Home? You Need to Obtain Financing.

You've probably seen the ads from REALTOR.com that tell you to get your pre-qualification before buying a home; that being pre-qualified gives you buying power. Well, listen up, because those ads are right!!

Depending on your situation, the type of financing you qualify for can determine the type of home you can purchase. Now on a scale of easiest to most hoops to jump through, this is my opinion of loan types. Paying cash is always going to be the easiest way to buy a home. Again this is in terms of hoops you have to jump through. Next in line is the Conventional loan. There are restrictions, and you'll need to bring more money as a down payment. But other than an appraisal there are usually fewer restrictions on the type of home you can buy and the number of hoops you have to jump through to get the approval. Next in line would be the FHA and VA loans. Both are government backed loans and require a more strict appraisal. While you need less money down to buy a home, the appraisal is more thorough and the seller could be required to make repairs so that you can buy the home. If the seller is unwilling to do that, you may need to find a different home. Finally, there are a group of loans such as USDA, Rural Development, NIFA and so forth. These loans will require more work on your part.

My advice to you as a buyer is know what type of loan you qualify for so that you know what type of home you can purchase. Even if you're really handy, and painting a house doesn't bother you, or you know you can fix windows with no problem, your lender may not allow you to fix the issues in order to buy the home. It's important to know your loan and know what your lender will and won't allow. If you have an FHA loan and you've fallen in love with a home that needs to be painted, you may need to rethink your home or your loan.

Why is the pre-qualification so important? Let me set this up from a seller's view. You've received an offer on your home. It has composite siding and original windows. The home's foundation has settled slightly and there are some minor cracks. The home was only built 15 years ago, but the shingles are showing their age. You receive an offer for full price with a 45 day closing. But the buyer has not pre-qualified with a lender yet. The buyer's agent has assured you that the buyer will qualify for a loan and definitely has good debt to income ratio. So you go ahead and accept the offer. The buyer heads to the lender and gets the first step done - the pre-qualification. You receive a copy of it as proof they are in fact able to buy the home. They've been pre-qualified for an FHA loan.

The seller now has to consider that they may need to paint their home, seal all the windows, seal the foundation cracks, and might have to replace the roof. Suddenly that full price offer is reducing their net by $10,000 to $15,000 because you have an FHA loan instead of a Conventional loan. Can the seller back out? Possibly. Their good agent will do everything possible to keep this offer moving forward. But, it may mean you need to offer more than full price to offset the cost of all the repairs. Are you prepared to do that? Will the home appraise for the higher price? The deal could fall through because you didn't have your pre-qualification done ahead of time.

The seller may not have accepted your offer at all, or may have accepted it contingent upon obtaining a Conventional loan. There are probably a thousand ways this example could have gone down. But having the pre-qualification is the first step to being able to make a solid offer on the home you've fallen in love with.

If you need help finding a lender, please call me. I work with several lenders and am always available to help you locate one. I also suggest interviewing several lenders, just as you would agents, before you make your application. You don't want to pre-qualify with several lenders, but you do want to interview several before deciding which one will work with you best.

And once you have pre-qualified, we can start shopping for a home that you will fall in love with.

If you have questions, please call me at 402-239-9668 or visit My Website and click on the Buyer's Resources tab.

The Home Buying Process - Selecting An Agent

I'm going to write a series of blogs about the process of buying a home. The first step is selecting an agent.

You've decided to buy a home, so you start searching the internet for your next dream home. You find it. You call the list agent. You go look at the home.

Now what?

Have you considered who the list agent represents? I'll give you a hint....it's not you. Unless you sign a buyer agency agreement, and then sign the Dual Agency forms, "your" agent is still representing the seller. Now of course, the agent does have specific duties to you to be fair and honest. But the duty of getting the best deal is still on the side of the sellers.

So, you really need to make shopping for an agent the first step. I know it's not any fun, but it's the best way to ensure you get an agent to work FOR you.

So, how do you find that agent?

Start with friends, family, or neighbors that have recently bought a home. Whether they recommend their agent or not, they'll be able to tell you what they wished they'd done differently.

Next, find a few agents to interview. Don't just pick one and go. Did you just throw a dart at the phone book when you were choosing a doctor? (Ok, so you had a print out of the Google and Yelp listings.) This is a home purchase, even a small home is a major purchase and a decision you'll live with for the next 5-7 years, if you're like most people. You want to make the right choice.

Now, whether to hire an extremely experienced agent or a newer agent is all up to you and your comfort level. After all, every agent was new once. And just because they haven't been in business for 30 years, doesn't mean they aren't smart and won't be good at their job. But ask about their experience. And if they don't have a ton of experience, ask about their support system. Do they have a good broker? Do they have a network of other agents that will help solve any problem that may come up?

Selecting your agent has a lot to do with personality. If you just don't click, don't hire that agent. You want someone that "gets you." Someone that understands your way of life and how you plan to live in your new home. This agent will be able to point out the pros and cons of any home for you. They will also be more able to find a home that you might not have considered, and it could be just perfect for you.

You'll also want to ask what their process is for buying a home. Will they show you a home any time? Do they have specific showing hours? Are they available on the weekends? If you plan to buy in the next month or two, are they planning a vacation that will take them away from their job of finding you a home?

What is the agent's views on inspections? Do they match your views? What is the agents negotiation style when it comes to negotiating repairs on the home? You see some agents believe strongly in getting all inspections and making the home owner fix everything. Other agents allow you to pick and choose the inspections you have after informing you of their benefits and costs. Then making the requests for repairs becomes more of a negotiation process to ensure that it is a win win situation for both you the buyer and the seller. You see, some repairs need to be made before you buy a home. But others aren't as important and should not be used as deal breakers. There's no reason everyone can't feel like they've come out on top when buying your new home.

Shopping for a new home is fun and exciting. But it's not the time to choose your agent or get to know them and their process. After you have an accepted offer your agent should make the closing process as smooth and seamless as possible. It's always going to be a long wait to move it - nothing can change that. It will always be a little stressful getting to the closing table. Choose an agent that will be able to minimize the stress. And if yo're successful in doing that, tell all your friends!

I'm Not a Very Good Blogger

For a while now I've been thinking I need to either pee or get off the pot with this blogging thing. I've always enjoyed writing. Just ask my Mother. She saved the 48 pages of dorky poems I wrote when I was little. It's cute, but I'm embarrassed by it for some silly reason. So, I've been thinking lately that I just need to put it out there. So here goes. I've been in the real estate industry for a little over a year now. And it's been a wonderful year. I'm hoping to make year number two even more fantastic. While hard work, dedication, a commitment to success, and failure is not an option mindset have helped me, I still could not have done it without my clients. All of whom I think are fabulous people with exceptional hearts and incredible families. I've also developed a bit of a reputation for handling the not so easy, great, and wonderful clients. While this type of person is a little more time consuming and frustrating at times. I still smile when I think of them. Even though we went through some pretty difficult moments, we got through it and we survived what are sometimes very difficult decisions to make. You see, I'm a big picture person. I have a very dear friend that liksd to use the saying "put on your big girl panties." And I've incorporated that. In my personal life and professional life. Sometimes there are decisions that have to be made and no matter what decision you make there are uncomfortable consequences. So what do you do? Well, you put on your big girls panties and make the best decision you can. And I'm never opposed to a little (or a lot) of prayer. So, if you were to ask me how you make the list of incredible wonderful clients, I'd tell you not to worry, you're already there. Because even the harder transactions result in great clients. After all, if it doesn't kill you, it makes you stronger...right? But I'd also tell you to keep your eye on the prize. Remember the bigger picture. In order to get you to your goals, you're going to have to make some tough decisions. You might have to give a little. Sometimes it might feel unfair, but the big picture is *insert goal here*. So, I'll bring the panties and we'll get the job done!

Survey: More Renters Want to Become Homeowners

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  (New!)

  Survey: More Renters Want to Become Homeowners

  Homeownership as a priority is on the upswing. And a look back shows perceptions about owning weren’t as negative during the recession as the media suggested. Read

Visit houselogic.com for more articles like this.

Copyright 2013 NATIONAL ASSOCIATION OF REALTORS®

Updating vs. Selling In Current Condition

If you'd like to know what home buyers are looking for these days, just ask any real estate agent.  Or read this next sentence.  Home buyers are looking for a fully updated move in ready home that is priced $10,000 under their current budget.  That doesn't sound that bad when I go back in read it.

But my reality is in the Lincoln, Nebraska area there are a lot of home buyers looking for homes under $150,000 and even $100,000.  So, how do you have a granite counter tops in a $75,000 home?  In my opinion, you don't.

This article is written for the seller.  But a buyer might get a good idea of what to expect by reading this too.  I held two open houses this past Sunday.  One at a home that was priced at $190,000 and one at a home that was priced at $72,000.  The more expensive home had all new carpets, paint, and a fully remodeled kitchen complete with new cabinetry, counter tops, flooring, and appliances.  The other home have been updated throughout the years but still maintains it's original kitchen cabinetry.  I might mention though, that the $72,000 home had a master suite and the other home did not.  So, you can't hang everything simply on price!

So, I ask my sellers, "What is it you want to accomplish in the sale of your home?"  Yes, you're going to sell the home faster with lots of updates.  But it's also going to cost you more money and possibly blood, sweat, and tears if you're doing the work yourself.  There really is no right or wrong answer here.  It's all about comfort level and what you as the seller can live with.

I don't believe in asking my sellers to update their homes to make them beautiful just to sell it.  But I do ask my sellers to price them accordingly.  So, the sale price might not be quite as high on closing day.  As a seller, is that something you're comfortable with?  If not, then do the updates.  The updated home will most likely not be on the market as long and you'll feel better with the fatter check...If in fact, that's how you're wired.

If you want my opinion on your home, call me.  I'll be more than happy to help you work through your decision to update or not.

http://www.shelllyn.net

Top 10 Remodeling Projects That Offer the Biggest Returns

Top 10 Remodeling Projects That Offer the Biggest Returns

Staging & Staying

I've decided I need to be more careful when a homeowner asks me to be totally honest in helping them get ready to sell their home.  I was recently at a home of a wonderful family that had what I think was possibly the worst experience in real estate.  They had a horrible agent - yes, there are some out there, no it wasn't me.  The agent didn't get their home sold.  Then they tried to sell the home themselves and had no luck.  They've lived in their home for just under 10 years and have made many improvements to the home, but it's just not selling.

When I called her up...out of the blue...she was desperate.  They so badly want to be in a newer home with more room.  They're a young family with young and energetic children.  They need more space.  She asked me to be totally honest with them about the things their home needed to sell quickly and for the best price possible.

As I toured the home I took notes, I made simple suggestions and wrote my bigger ones down.  We sat down at the table and I explained my suggested changes.  I had over a page of updates, room remodels, and staging suggestions for them.  At first their eyes were huge and their jaws were on the floor.  But I calmly broke it down room by room and shared with them why the changes needed to be made.

After talking for a few minutes about the benefits of making the changes and how I could present the home to buyers with the changes made, he sat back in his chair, smirked a little and said, "We make these changes, we'll have enough room and won't need to move!"

I didn't panic, I reminded them why they wanted to move and they agreed.  Whew!!

My Home Didn't Sell, What Should I Do?

If you get a call from me because your home expired, the first thing to know is I'm sympathetic.  I'm also a home owner.  And before becoming a real estate sales professional I sold a home.  I tried selling it myself then I realized I needed to list it with an agent.  And it still didn't sell!  It's a long drawn out story that I'm not going to get into.  But after a year of carrying two house payments, the home finally sold.

Do you really want to sell your home?  If you've had it listed for the last 6 or 12 months, that tells me you do want to sell it.  But now that it didn't sell, and you're telling me you're not sure what to do. That doesn't mean you don't want to sell it.  It just means you're terribly frustrated.

Remember you hired your agent to sell your house.  Not to list it!  Listing your house is easy.  Selling it is another story.  And if your agent isn't selling your house...no matter how much you like him or her...it's time to consider hiring someone to sell it.

You need to ask yourself the hard questions now:

1.  Why do you want to re-hire the same agent to re-list your house?
2.  What will this agent do differently that he didn't do in the first 6 or 12 months?
3.  What has it cost you in using this agent? (Time, money, frustration)
4.  What is the new agent going to do differently?
5.  Do you think you "like" the new agent initially at least as much as you did the first agent?
6.  How much time should you realistically give the new agent to sell your home?
7.  What will you do if the new agent can't get your home sold?
8.  Are you being realistic about the price, condition, staging of the home?

I can't guarantee your home will sell.  I haven't seen it yet.  I don't know who said it, but I love it...
         "If you always do...what you've always done..you'll always get...what you've always got!"
If it's not working, change.  Give me a call and make a change in the right direction.  I want to sell your house, not just list it.