Jan
24
Fishers Real Estate Agent explains Pre Approval Process
Posted by marchantteam under For Buyers, For Sellers, General Information, Real Estate Terms M-R
To make your offers as strong as possible when buying a home for sale in Fishers, having a pre approval letter helps. Along with the offer, the seller likes to see a 1% earnest money check and the pre approval letter from your lender. It gives the seller some assurances that you (the buyer) have talked with a bank or mortgage company and they upon their initial review of your financial situation….approve you for the purchase.
How do you get a pre approval letter? This is a great question! You can contact the institution you bank with or you can call a mortgage broker who looks for the best loan package for your situation. In either case they will need the following documents:
- Personal information, names, addresses, dates of birth, social security numbers; this enables them to pull your credit.
- Employment and income which is usually done through pay stubs, but if you are self employed a tax return will work.
- A summary of your liquid assets such as savings, checking, investment accounts.
The loan officer will also want to meet with you to discuss your goals. Maybe you have cash but you want to preserve it and so a 3.5% down program would work best for you. Maybe you are very debt adverse and so a 15 year mortgage appeals. Maybe you want to have the lowest possible payment long term so buying the rate down would be helpful. Or maybe you want to avoid PMI insurance and so putting as much cash down makes the most sense for you.
Many buyers feel that pulling their credit is a bad thing. If you are having your credit pulled for a mortgage, a car purchase, a credit card, etc…that could be detrimental. But just pulling for a mortgage is inconsequential. Any pulls of credit for this purpose is reset after 60 to 90 days.
One tip I tell my buyers is to only put the address of the home you are considering in the pre approval letter. This guards your information in the negotiation process. For example, you wouldn’t want to bid $140,000 on a $155,000 home and then have the pre approval letter say that you are approved for $155,000. That is inviting the seller to counter you!
If you have questions about the buying process, I hold a first time home buyer class in Fishers every month. I have a lender, a home inspector and myself talk about questions like these to educate buyers before they begin the process. You may not be ready to buy for several months, but it might be good to come to the class to understand what things you will need to have in place to make the process easier and ensure you get the house you want. The first time buyer class does require registration, but it is free!
In addition if you think you have credit issues, I am part of a group that is having a seminar on FICO Scoring 101. You will be able to learn how short sales, foreclosures and bankruptcies affect your credit score; the best way to handle debts and collections, ways to rebuild credit in record time. Contact me directly for more information on the FICO class. It is free!
Have other questions about buying a home in Fishers, check out our Top 10 Buyers Questions to see if we answered yours!
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Cindy œin Indy Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775
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Sep
29
Fishers Realtor explains Homestead and Mortgage Exemptions
Posted by marchantteam under Buyer Information, For Buyers, For Sellers, General Information, Real Estate Terms H-L
It’s time for another definition to be explained…
The State of Indiana allows various exemptions to be filed that decrease the assessed value of real estate property. The two most common exemptions are the Homestead and the Mortgage Exemption.
The Homestead is worth $45,000 and the Mortgage is worth an additional $3,000 off the assessed value. You can file the Homestead if you “live” in the property as your principle residence. You can not file it if you live out of state now and rent your property. You can file the mortgage exemption if you carry a mortgage on the property. If you paid cash for it; you can not file this exemption.
You can only have one property in Indiana with these exemptions; you should have it on the most expensive property you own to take the fullest benefit of the exemptions.
If you purchased a home in 2010; it is likely that the previous owners had these exemptions. However with the sale of their home, the exemptions will fall off. So it is VERY important to have these filed by 12/31/10 in the County in which the home resides.
When you file the exemptions you will receive a receipt that is approximately 8 1/2 by 3 inches (odd shaped receipt). You MUST keep these receipts. If your exemptions were to fall off for some reason, the Assessor will ONLY change it if you have those receipts.
If you were to refinance or if you did refinance this year (didn’t everyone??), you must refile the mortgage exemption. If you changed your deed at all, i.e. it is now held in a Trust, you would need to refile your Homestead.
The difference in having or not having your exemptions filed vary of course with the price of the home, but it could be as much as 30% for you in property taxes.
As a Fishers Realtor, I remind each of my buyers each year to file those exemptions because they are so important. They discuss this at the closing, but with so much information and document signing, many buyers miss this.
If you are looking for homes for sale in Fishers, there are currently 756 homes for sale and of those 124 homes are less than $150,000. If you are looking for a condo for sale in Fishers, there are currently 113 of those available. Interest rates are still in the mid 4′s depending on credit scores. Definitely a great time to buy if it is right for you.
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Jul
8
Fishers Realtor explains Days on Market
Posted by marchantteam under For Buyers, For Sellers, General Information, Real Estate Terms A-G
I think all of us use acroymns in our business and spout them off without thinking about whether the other person knows what it is. Real Estate is no exception. I thought I would explain one that is used all the time.
DOM is days on market. It is the number of days that a particular home has been on the market. This is a tricky one because at first glance you would think the list date on the MLS/BLC sheet to the current date would be the DOM. But here’s the catch. Some properties expire or some have a mutual release (they didn’t like their Realtor or some other reason) and they are then “re-listed” so that a new “list date” is the starting point.
When my clients want to know how long a listing has been on the market, my response is, “from the MLS sheet it says “x”, but I would need to check the history to be sure”. A home may look like it has just recently been listed, but in actuality it may have been on the market for years and just keeps getting relisted.
This is important because the DOM is a motivation factor. If they have been on the market a long time, they may be more motivated than if they just came on the market. A good Fishers Realtor will definitely run the history/archive on the property to ensure their buyer has full discloure of the DOM.
Be sure to look at all of the definitions of Real Estate terminology.
As an update on the Fishers Real Estate market, there are currently 872 homes for sale in Fishers and 191 of those are under $150,000. Interest rates are well below 5%; this might be the time to buy a home!
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Mar
29
Fishers Realtor explains Best and Final Offer
Posted by marchantteam under For Buyers, For Sellers, General Information, Real Estate Terms A-G
We are, at least for the moment, in a seller’s market. I set 10 showings on Saturday in the Fishers and Carmel Real Estate area and five of them were sold. I have a home for sale in Fishers where we accepted an offer and I had two other interested parties that just waited too long to write the offer. I wrote an offer last week and was in a multiple bid situation. Things are selling!
I wanted to talk about the “multiple bid” or “best and final” situation. This can be scary for a buyer because they feel like they can’t get the “deal” they have heard is out there. Many buyers don’t want to get into a bidding war. And some feel they will over pay for the home.
A best and final situation means that the seller wants to see each buyer’s best and final offer to make the best decision for them. Best and final isn’t just about price.
It is about the type of financing, how much you are putting down for the down payment and the earnest money, it is about the closing and possession dates and whether you are asking for items such as washer/dryer, closing help, etc. There are many pieces to best and final; not just the price.
I would encourage each of you to participate if you find yourself in this situation, IF you love the home, neighborhood and it is affordable.
There is a strategy to bidding in this scenario and using an experienced Fishers Realtor ® will help you succeed! I have won in almost every multiple bid situation I have been in because I understand the dynamics of how an offer should be structured to be the best option for the seller.
This is bound to happen frequently in the month of April as many first time buyers and repeat buyers try to get under contract to take advantage of the tax credits available to them. Remember that we offer the first time home buying class every month on the last Thursday of the month. I hope to see you there!
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Jan
6
Fishers Realtor explains Cap and Trade
Posted by marchantteam under Buyer Information, For Buyers, For Sellers, General Information, Loans, Real Estate Terms A-G
There is quite a bit of controversy on the Cap and Trade being discussed; this is more than just the regulation of pollution emitted into the atmosphere. Their is language being discussed around cap and trade for things that we use daily like gas, electric, etc. I’m not here to debate the issue but to give you some ideas on how it might be used in a conversation about Fishers Real Estate.
We recently had some folks in from Langdon Mortgage Company to talk with the Marchant Team. Here are some tidbits I picked up:
- You can borrow 5% over the appraised value for energy efficient items such as insulation, windows or furnace for example.
- You can borrow an additional $2,500 over the above for weatherization items.
- If you spent $5,000 for a new furnance/air conditioner; it would cost you about $28.00 more a month and chances are you would save that in utility costs.
This is important as we think about both “being green” and about cap and trade. Reducing the consumption of utilities is going to become more important over time. This EEM (Energy Efficient Mortgage) isn’t available to JUST new home buyers, exisiting home owners can put the purchase of these items in their mortgage as well.
Want to know more? Send me a quick email and I will put you in touch with the experts at Langdon Mortgage to see if the program is right for you!
I like to update the Fishers homes for sale statistic in each blog, so as of today there are 677 homes for sale and 136 are under $150,000.
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Dec
16
Fishers Realtor explains Negative Equity
Posted by marchantteam under For Buyers, For Sellers, General Information, Real Estate Glossary, Real Estate Terms M-R
There are currently 725 homes for sale in Fishers and of those 90 over over 10% are a distressed property. More than likely, most of the homes that are distressed have sellers with “negative equity“. As a reminder distressed property is a bank owned, foreclosure, short sale, or a property where a bank is likely involved.
Many of you reading have probably read a little bit about this Fishers Realtor and know that I was an Accountant turned Realtor in 2001. As an Accountant, equity is an important concept to understand.
Equity is the difference between the assets of the company (cash, receivables, equipment, etc) and the liabilities of the company (the payables, notes, etc). Without getting into Income Statements and Balance Sheets…if equity is positive it is good, if it is negative it is bad.
This holds true in Real Estate too. Negative equity in a nutshell is when what you owe on the home is more than it is worth. For example, you home is worth $120,000 but you owe $125,000.
Negative Equity can be caused by many situations:
- Person bought at the height of the market (say 2005) and the market has now declined.
- The area the person bought in has “shifted” and is less desirable. This could be due to bank owned or short sale homes in the neighborhood.
- There is new construction that is not yet completed and the builders are discounting the new builds to prices below what they were when the person bought it.
- Person purchased the home with zero down and needs to move within 2-3 years, so there is not enough time to gain equity.
- Person has to pay “selling fees” and with taxes paid in arrears in Indiana, Title Insurance and Commissions it forces them into negative equity.
People in negative equity situations can still sell their homes without damaging their credit. There are hardships that are obvious like medical or job loss, but there are other hardships like job transfers or market conditions that may qualify for a short sale. Short sales are much better than a full blown foreclosure.
You need a Certified Distressed Property Expert (CDPE) to evaluate your situation and if it looks like it could qualify, help you gather the paperwork and submit it to the lender for consideration. Where do you find a CDPE; right here! Email me and I’ll connect you with the CDPE on our team.
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Dec
6
Fishers REALTOR has help explaining Weep Holes
Posted by marchantteam under For Buyers, For Sellers, General Information, Inspection Issues, Real Estate Terms S-Z
From time to time, your Fishers Realtor ® is so busy with her buyers and sellers, she needs a ghost writer; let me introduce one of the inspectors I use and trust, Rob Rehm. 
Rob wrote this piece on Weep Holes and I think it is something my readers should understand. So, thank you Rob for your expertise on this article.
Have you ever seen holes or plastic tubes in the mortar joints just above the foundation and over windows and doors? Sometimes there is a small length of rope sticking out of the joint instead of a hole. Note– you aren™t seeing sloppy construction, the holes or piece of rope are supposed to be there. Don™t seal them up because they serve a valuable purpose.
While a masonry wall is the first line of defense against water penetration, it can leak. Masonry is porous and can absorb moisture in extreme weather conditions. Weep holes are the exit port for the drainage cavity behind the masonry wall. If the wall is built correctly, the weep holes allow moisture behind the masonry to exit. These holes also serve as pressure equalizers making it less likely that wind-driven rain will penetrate the wall.
The drainage cavity has five essential elements:
- The exterior wythe (the vertical section of a wall that is equal to the width of the masonry unit) of masonry provides the first resistance against moisture penetration
- An air space of at least one inch
- An interior wythe of masonry or other material such as frame wall
- Flashing at all interruptions in the drainage cavity such as at the base of the foundation and around the openings for such windows
- Weep holes at all flashing locations– recommended spacing of 33 inches.
For a cavity wall to function properly, water that collects on flashing must be able to drain through the weep holes to the exterior or the building. If weep holes do not function properly, water collecting in the cavity can infiltrate the building interior.
There are many homes built without weep holes that have or will likely never become a problem. However, good building practices and most building codes suggest weep holes should be installed when the home is built. Many code officials will look the other way or allow occupancy without the installation of weep holes.
Conversely, the absence of weep holes occasionally allows so much moisture to accumulate that metal fasteners turn to rust, wood-destroying insects are encouraged, or rot develops. It is unlikely that a visual home inspection will reveal these problems unless conditions are so severe that cracks in the walls or other indicators are visible. The most likely visual manifestation of a problem will be water stains, damp areas or rot at the foundation plate and/or floor band as well as stains or damp areas at the top of the foundation wall.
Weep holes can be added. However, most masonry experts question the effectiveness of retrofit without at least partial removal of the masonry, which is very expensive. Home inspections are not code compliance inspections. Professional home inspectors can look and determine if weep holes are present, however, they have no way to ensure absence of hidden moisture damage without invasive investigation. Therefore; it is our perspective that weep holes should be installed when they are missing on a property.
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Nov
7
Fishers Realtor explains Ownership Options
Posted by marchantteam under For Buyers, For Sellers, General Information, Real Estate Glossary, Real Estate Terms S-Z
There are currently 765 homes for sale in Fishers. With the extension of the first time buyers tax credit and creation of the $6,500 tax credit for repeat buyers, it will be interesting to see what happens to the levels of inventory we have.
I am seeing a variety of individuals look to purchase homes and this always brings up the conversation around how to hold Title or ownership types.
The most common are Joint Tenancy, Tenancy in Common and Tenancy by the Entirities. Let’s go over a few of the differences in each.
Joint Tenancy is for any number of persons; could be husband and wife but could be three friends. The division is equal; each owner has an equal piece of the pie. Each owner can sell their interest to another person. If one of the owners dies, that interest is automatically passed to the remaining owners. To create a joint tenancy the co-owners must share four “unitites”. They must acquire the property at the same time, have the same title and interest in the property and have an equal right to possess the entire property. Most married couples choose Joint Tenancy with Rights of Surviorship.
Tenancy in Common is for any number of persons; could be husband and wife but could be three friends. The division is divided into interests but may not be equal. Each owner has a separate legal title to their interest. If one owner dies, it does go to that owner’s heirs rather than the remaining owners. Here’s a real life example:
My husband and I own 1/12 of a share of a house in Breckenridge with 11 other couples across the United States. The shares are equal. When we die, they will become a vacation spot for our kids!
Tenancy by the Entirety is specifically for husband and wife. Any decisions regarding the sale or refinancing must be agreed by both parties. If one of them die, the other automatically gets the house.
There are a variety of ownership types as well, such as PUD, Co-op, etc. But those will be in another post. Determining how to hold Title is something you will want to discuss with your attorney or with the Title Company.
In the meantime, be sure to let me know if you would like your home in Fishers evaluated for pricing and how fast it might sell in the current market.
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Cindy œin Indy Marchant - Fishers Real Estate Agent
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Fishers IN Real Estate Website
317-290-7775
2 Responses to “Fishers Realtor explains Ownership Options”
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Simply want to say your article is as tonishing. The clearness in your post is simply spectacular and i can assume you are an expert on this subject.
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Fantastic real estate blog post! Pictures are worth thousands of words, it’s nice to see the attention to detail from your end. Thanks
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Sep
4
Fishers Realtor compares Short Sale to Foreclosure
Posted by marchantteam under Ask a REALTOR, For Sellers, General Information, Real Estate Terms S-Z, Short Sales
There are many people who have homes for sale in Fishers or are thinking about selling their home and know that they probably owe more than they can get for their home. This can cause a lot of sleepless nights.
In many areas, the 2009 prices have not appreciated above the 2006 prices. This means if you bought your home in 2006; you may not be able to sell it for more than what you paid. This creates negative cash flow when you add in typical seller expenses such as taxes (paid in arrears in Indiana), commissions and title work.
There are options! You may be able to sell your home “short” and preserve your credit. Banks have the option of submitting the short sale to the creditu bureau as “Paid in Full” or “Settled for less than full balance”. The problem is when you stop making payments; then your credit score will suffer. There are ways to sell short while you are making your payments.
In 2007, the U.S. Congress passed the Mortgage Debt Forgiveness Relief Act and it is now in effect through 2012. The essence is that you will not pay taxes on the debt that is forgiven if it was your principle residence.
We have a short sale or CDPE (Certified Distressed Property Expert) agent on our team. This is a workpaper she has shared with our team that might be useful to my readers.
If you are being relocated for a job or have a declining market in your neighborhood, your lender may agree to allow you to sell short rather than go into foreclosure. If you do not become delinquent on your payments, you may be able to sell short and not harm your credit scores.
This is a very important discussion that is individual specific so please let me know if you would like to talk with me or my team member to see if it might be an option for you or someone you know.
The Marchant Team is about selling real estate, but it is more about creating a win-win situation for each client we have the opportunity to work with in the Fishers Real Estate area.
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Cindy œin Indy Marchant - Fishers Real Estate Agent
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Aug
19
Fishers Realtor explains PMI or Private Mortgage Insurance
Posted by marchantteam under Ask a REALTOR, Buyer Information, For Buyers, For Sellers, General Information, Real Estate Terms S-Z
Private Mortgage Insurance or PMI is “default” insurance on conventional loans provided by private insurance companies.
You typically will see PMI applied when you have less than 80% equity. The misnomer I often see is that people interpret that to mean they need 20% down in cash. There are other ways to ensure the 1st mortgage is at 80%; by taking a 2nd mortgage for say 10% and then the balance of 10% is in cash. The 2nd mortgage will run a bit higher on an interest rate, but some people prefer to pay that off quickly and avoid the PMI charges completely.
Or course, a 2nd is much harder to come by these days. A credit score over 700 is expected.
When you purchase a home with an FHA loan; PMI is automatically attached regardless of the amount put down. It is typically .55%
PMI costs vary greatly, they can be as low as 1/2 % of the mortgaged value to 1.00%. Here is an example of how this might work:
A buyer searching in the Fishers Real Estate market might find a home in Sunblest for $139,900. Their Fishers Realtor ® negotiates the price to $133,000. The buyer puts down $13,000 leaving a mortgage of $120,000. Lots of numbers, I know…stay with me. The PMI is 1% of the mortgage balance or $1,200 or an extra $100 a month.
Here’s a bit of good news, PMI is now deductible up to $1,000 a year.
It is important to understand the “Total” monthly mortgage payment. Often calculators on various websites give you an amount that is JUST principle and interest. You must also include property taxes, homeowner insurance and PMI (depending on your loan) and possibly a monthly maintenance fee if you are buying a condo or chose a home in a low maintenance community.
If you have other questions about PMI or other real estate lingo, please let me know. I am here to help you understand the buying and selling process.
Search homes for sale in Fishers by Neighborhood
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Cindy œin Indy Marchant - Fishers Real Estate Agent
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Indianapolis/Fishers Real Estate is authored by Cindy Marchant
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Excellent resource for buyers, both new and experienced. You’ve simplified the pre-approval letter process which is a key first step towards homeownership.