1)    Getting a mortgage is easy

Financing is not easy these days. I currently have some clients under contract trying to buy a vacation condo on the beach. My clients have great credit, make a good living and are putting 20% down. It is still questionable as to whether they will get money to buy the property. The problem is that it is a condo in Florida and banks have tightened their lending guidelines on these properties.

With that being said there are some great loan programs available. For some financing is relatively easy. If you are a first time home buyer, have great credit, money for a down payment, buying within your means and a primary residence you should be able to get a mortgage.

2)    Homes aren’t selling

This is not true either. Homes are selling out there. Depending on where you are in the country sales are relatively active. Obviously, some areas are going to be better than others. I heard on the nightly news the other night that sales on a national lever were up. Keep in mind real estate is local so you need to find out what is happening in your area. Inventories might still be high but there is a lot of demand for a properly priced property. Talk to a competent Realtor to find what is happening in your market.

3)    Foreclosures and short sales are the only properties to consider

Foreclosures and short sales make up a good portion of the sales today. There are some great deals to be found in foreclosures and short sales however there are also some great properties available for sale that are not bank owned or short sales. Don’t ignore these properties. If you are looking to buy a home hire a good Realtor that will narrow down your best options which will include bank owned properties, short sales and realistic sellers who are not upside down.

4)    Realtors are not busy

Every now and then I get a wise guy that thinks he can walk all over me because he thinks I have nothing to do. They tend to speak down to me, want to be catered to, their needs and wants go over and above what is required from a Realtor and have little or no respect for my time. Fortunately, I am busy enough to fire these types of buyers and sellers. Don’t make the assumption that all Realtors are twiddling their thumbs in the office.

What misconceptions are you running into today?

Marc Rasmussen

Realtor in Sarasota, Florida

Sarasota real estate

Everyone tells you to stop renting and purchase a home. It’s a sound, financial decision, they tell you. It’s a great investment, they cry. Wanting to buy a home and being prepared to buy a home are completely independent of one another, however.

Your desire to purchase a piece of Las Vegas real estate can easily become overshadowed by your inability to purchase one. Before calling a real estate agent, there are a few, important questions to ask yourself:

• Do I have a steady job? This is one of the first things a lender will want to know when you apply for a mortgage. Keeping a job for at least two years, or staying in a similar field for the same length of time, shows a lender that you are a good credit risk and that you’ll be able to pay your bills with a steady source of income.

Bottom line: if you’re in the market to purchase a home, now is not the time to change jobs. And if you haven’t achieved a steady work history, you’ll need to work on that before applying for a mortgage.

• How is my history of paying bills? A good credit history is a must when applying for a mortgage, as a lender needs to see a steady history of paying bills. And that doesn’t just mean your car and credit card payments. What about utility bills? Medical bills? Student loan bills? If any of these have fallen by the waist side, immediately get them up to date and establish at least six months worth of on-time payments before applying for a mortgage.
• How much debt am I carrying? Although you may be managing your debt and paying your bills on time, a lender will look at your “debt ratio,” which is essentially the ratio of money going out on loans and credit cards and money coming in through your salary. If your debt ratio exceeds a certain percentage (lenders vary on this), you’ll need to pay down some of your debt before applying for a mortgage.
• Do I have enough money saved for a down payment? Gone are the days of no-money-down mortgages. With the current credit crisis, most lenders require at least 10 to 20 percent down. Once again, if you haven’t achieved this, take another six months or so and continue to save money toward a healthy down payment.

Provided by the writing team of Richard Soto. Richard is a real estate broker who works in the Dallas Texas real estate, Alamo Heights real estate & Bexar County real estate markets.