5 Questions to Ask your Long Beach Real Estate Agent

As this market has been classified as a buyers market it is important to choose the right Long Beach Realtor to represent you in your purchase. As a buyer in this market you need to look for the agent who is the right fit and has the specialize that you need to achieve your goals. As I interview over 100 buyers each and every year I find that many don't have questions for me because they are new to the process so I thought it would be helpful if I put out a few questions that you could ask any agent in Long Beach to see if they are the right fit for your purchase.

1. Do you specialize in buyers or sellers? - You will find that most agents actually don't specialize. Just as Doctors choose a specialization you may want to consider an agent who has focused on buyers for this market.
2. How many individuals/families do you help each year? - The average is actually just 6 people a year. Asking this question can help you see their level of performance.
3. Do you help more people purchase condos or homes? - If you are looking for a condo you may want someone who is familiar with the different Long Beach Condos because of potential HOA issues and more.
4. How do you negotiate offers? - Here you will get a variety of answers, but check to see if they ask for closing costs, discounts on price, combination of both and more. This market provides many different opportunities to negotiate so check to see what they will do.
5. How many clients are you helping currently? - Determining their work load will help you to see how much time you will get. They should tell you their process (when they will call, send listings, updates, etc) for helping you to find a property so this is a good one to check on.

Just asking these 5 questions will help you to learn more about the person you are considering having you help you with your purchase. Research the agent online and check testimonials of their past clients so you can see what it is like to work with them.

Appraisal: For What It's Worth

If you've just purchased your first home, you probably have a pile of paperwork on your house. Within it you might see a large packet entitled "Appraisal." What in the world is that? An appraisal is an estimate of your new home's value. Conducted by an appraiser, it ensures that the lender is not loaning more than what the home is worth and that you, the buyer, are not paying more than what you should.

When conducting an appraisal, the appraiser will inspect the size, condition, quality and amenities of a home and compare them to those of other homes in the area. They will then create a report of those features and determine the home's value. The value will generally reflect what other properties in the neighborhood are selling for. However, there may be some variations. Homes with four bedrooms, for example, will generally be valued higher than homes with three bedrooms, while homes that have recently been updated will generally be valued higher than those that haven't.

Sometimes an appraiser may determine the value of the house to be less than the asking price. If this occurs, the seller will either have to lower the price or the buyer will have to increase their down payment to make up the difference. Of course, as with anything else, mistakes can be made, so if the appraisal comes in too low, double-check that the appraiser did not make any miscalculations.

Remember, an appraisal is an estimate of value. It is not, and should never be, a replacement for a whole-house inspection. If you are purchasing a home, you will be required by the lender to have an appraisal and you should arrange to have a whole-house inspection. The inspection may uncover problems that the appraiser did not notice.

An appraisal generally costs between $200 and $500, but the price is worth it just for the protection it provides for both the lender and the buyer. For just a few hundred dollars, you can save thousands of dollars later.

Buying Your First Home Just Got Easier!!

Todays post is contributed by Christal Dunn

We understand how much you want to own your first home. We also realize how difficult that can be. That is why we offer below market interest rate first mortgage programs and a variety of down payment assistance programs to eligible first-time homebuyers, which can turn your dreams of homeownership into reality. For those who qualify, CalHFA programs are a great way to get started on the path to homeownership. With below market interest rates, which may be combined with “silent second” down payment assistance programs to offer complete financing for your big move.

These programs are available for eligible low and moderate-income first-time homebuyers for both new construction and resale loans in all 58 California counties. Here’s how’s we can help:

• A 100% CalHFA loan with a fixed rate
• A 3% Assistance Program (CHDAP for additional down payment and/or closing costs (for eligible buyers)
• A combined loan-to-value of up to 103%-107% (subject to credit approval)
  Purchase only loans
• Single-family homes. PUD’s and eligible condos are permitted
• Manufactured homes may be eligible (special terms and conditions apply)
• Borrower must be a first-time homebuyer, unless home is in a federally designated Target Area (call for details)
  
  CalHFA FHA Loan
  
  Purchase Price of Home $ 250,000.00
  CHAP - Down Payment ONLY $ 7,500.00
  HiCAP - Down Payment ONLY $ 7,500.00
  Total "Silent" Loans $ 15,000.00
  
  
  FHA Loan Amount $ 235,000.00
  Principal & Interest $ 1,371.40
  Property Taxes $ 260.42
  HOA - Assumption $ 200.00
  PMI $ 97.92
  Total Monthly Mortgage Obligation $ 1,929.73

Once you take into account the tax benefit of ownership this amount is extrememly close to rents. Take time and consult your lender so you can see what is possible. Bank of America has been particulary helpful with showing our clients what FREE money is available.