This is Why You Need to Be Pre-Qualified!

August 31st, 2008

I had a closing Friday (yay!) and I agreed with the mortgage broker who had referred the client to me, that we really needed to blog about this situation - which ended up being a win for everyone involved, because it was such a perfect example of why it’s really important to be fully prepared and pre-qulaified when you find the property you want.

My clients are first-time investors (both accountants) who are, luckily, extremely organized with great credit.  Although they weren’t completely sure what type of property they wanted at first, or in what neighborhood, they did know that they wanted a great deal (of course) in a popular Denver area, and they knew they wanted to keep it as a rental property.

We looked at over 50 properties, all over the Denver area, from flipped condos to foreclosed duplexes, and wrote 4 contracts that didn’t go through.

I was out previewing some new listings for them when the client called - a new listing on a great street in Lower Highlands had just come up in the MLS, and the price seemed ridiculously low for a 3 BR 1 BA on an 8000 SF lot - and there was no picture.  Assuming that it was too good to be true, I drove by to take a look. 

A cute little stuccoed bungalow on a great lot, the house was a bit run-down but had great curb appeal, and the location couldn’t have been better.  Right up the street from the new Pasquini’s and Duo Restaurants, as well as all of the little cafes, coffee shops, and charm of the shopping district, and within blocks of the Pedestrian Bridge, this house was a charmer - and a steal.  Listed at $129,900, there is nothing that would even try to comp in that area for less than $200,000.

I scheduled a showing and the clients raced over to meet me.  They wanted that house. (So did I!)

We wrote an offer after I spoke to the listing agent, who told me that they had a few offers in but that he hadn’t presented them yet.  We offered more than the list price, but here is what clinched the deal - we were able to close in two weeks.  Because my clients had all of their documentation in, and the mortgage broker had everything they needed for a quick close, the sellers went with our offer, which wasn’t the highest, because they wanted the closest closing date possible.

So, lesson learned - even if you are pre-qualifed, keep in close touch with your lender and make sure that your file is completely up to date as you look for that perfect property - a little organization and diligence might just win you the prize!

Posted in Denver Real Estate, Mortgage News, Real Estate News, What's going on?! | No Comments »

Saving for College - Rehab and Rent!

July 19th, 2008

A college savings plan doesn’t always have to come in the form of a savings account or a 529.  With three kids and another on the way, I’ve been giving some serious thought to how we will be able to support four kiddos as they get through school.  We haven’t started any kind of savings strategy as of yet, but I know that we need to. 

Read the rest of this entry »

Posted in Arvada Real Estate, Denver Real Estate, Mortgage News, Quick Hits, Real Estate News, Westminster Real Estate, What's going on?! | No Comments »

What’s your score?

July 15th, 2008

Your credit score: did you know that you have to have a credit score of 700-plus to qualify for a low-rate mortgage?

First, your credit score is a number assigned to your creditworthiness.

Your credit score indicates how well or how poorly you’ll repay a debt. The higher the number, the more likely you’ll repay on time.

Your bill paying information on credit reports provides the basis for your credit score.

Consumers who take the time to obtain their credit score, for only about $15 under most circumstances, are more likely to have a better understanding of the scores.

That includes knowledge that mortgage lenders rely heavily upon credit scores to approve or reject home loan applications. Read the rest of this entry »

Posted in Mortgage News, Real Estate News | 1 Comment »

To refi or not to refi, that’s a serious question

February 21st, 2008

Well, we found a renter for our house - the cute little ranch that we may be a tiny bit upside down in because we finished the basement while we were living in it and did a bunch of other upgrades, and then decided to move to a bigger place.  I posted a few pics on Craigslist and got over 30 very interested responses!  The first lady that cam to see it was fantastic, and she is going to be very happy living there, I know it! 

I am so, so glad that we decided to feel out the rental market before selling while prices are low - I honestly was out of the loop as far as rentals were concerned in that area - and we are almost able to cover our mortgage even with the hike in interest rate that we had to take last year with our refi, in order to get my Grandpa, who co-signed on the house for us a few years ago, off the deed so that he would not have to stress over it.

But I have been wondering - should we do another no-cost refi and try to lower the payments even further so that we don’t have any monthly cost to keep the house on top of the rent that we receive? Read the rest of this entry »

Posted in Mortgage News, Real Estate News | 1 Comment »