Q & A with Dottie Herman

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Q1 - I was thinking of buying my first home- I got pre-qualified for a loan, and now after I put an offer in on the house I can't get a mortgage. How is that possible if I was already qualified?

A - There is a big difference between pre-qualified and pre-approved. Being Pre qualified only verifies your credit and takes your income and assets on a verbal basis. A Pre approval has verified everything. Chances are your were not qualified as your verbal income and assets were not accurate. In addition, how long ago were you pre-qualified? The guidelines change so often that any Pre approval over 30 days can now be obsolete.

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Q2 - If I want to buy a first home and want to receive the tax credit--am I too late?

A - No it is not too late yet. As long as you are in contract to purchase by April 30th 2010 and close by June 30th 2010 you will be fine.

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Q3 - I want to re-finance my mortgage since my rate is 6.25. While I re-finance can I take out a home equity line so that I can renovate my kitchen?

A - Home equity loans are either variable or fixed rates. The variable rates are currently very low but are tied to the prime rate, so historically they can go up a lot. The fixed rates are much higher than the fixed rate on a 1st mortgage. It would probably be better to combine the refinance with amount of money you wish to take out to renovate your kitchen into one fixed rate 1st mortgage. This will get you the most security on your payment and the best rate.

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Q4 - There are a number of homes for sale in my area--some are my style house, and others are different but they are all around the same price. I really want to sell before the late spring, so should I price under the other homes? Should I price at the lower side? Someone said it won't attract more people, but they will just think there is something wrong with my house.

A - People are free to make inferences based on price, but ultimately it is the market that will determine the selling price of your home. You have a good lay of the land - you know your competition, you know where they are priced and you also have a clear objective - to sell before late spring.  Based on these factors, you should price your home aggressively.  This means at or slightly below what other homes in the area are selling for.  In order to ensure that potential buyers know there is nothing wrong with your home, make sure your agent writes a terrific description and takes excellent photos of your home.  This way, not only will it look and sound great, but it will have a price that will make it irresistible to buyers.

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Q5 - What is the difference between a listing agent and a buyer's agent?

A - The listing agent represents the seller of the property while the buyer's agent represents the purchaser.  As a buyer, a buyer's agent can provide you with tremendous insights to the market.  For sellers, a listing agent is a must in today's marketplace.

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If you have a real estate question for Dottie, please send it to; Dottie@RealEstateChannel.com.
 
NOTE: Due to high volume of questions, not everyone can be answered, but she'll do her best. 

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