Naji Rashid's Blog » First-Time Home Buyers

House Shopping is Not A Job!

Naji Rashid — Tue, 01 Nov 2011 18:06:14 +0000

I’ve been ask this questions many times, “how many houses should I view consecutively.” There is no set rule, but I can give you some advise that might be helpful. If you look at 5 houses and you begin to lose focus and energy you should stop looking. This could cause you to miss some important features or visible problems in a property. You can always view more properties the next day or when you can focus better. Most people don’t buy the first house they view, so you should not cram a lot of houses consecutively to tour in one day. My wife will email clients 10-20 properties and some times they want to view most of them at one time. I notice that after 5 properties some clients will begin to lose focus and energy. You shouldn’t make house shopping a job. You should view as many houses as you can enjoy to see. You also should take plenty of notes so you can compare property features you like. I believe this will help you to have a better home shopping experience.

Free eBook “10 Mistakes Home Buyers Make!”

Naji Rashid — Mon, 24 Oct 2011 21:37:52 +0000

Many potential home buyers have downloaded my free eBook “10 Mistakes Home Buyers Make” and have told me how it saved them money on their home purchase. Here is the list of 10 mistakes you should avoid. Download the eBook, its free (you need Adobe Reader) and it could save you money also. I look forward to your feedback. Do not hesitate to contact me with any questions.

1. Not Doing Your Homework

2. Previewing Houses Before Pre-Approval

3. Accepting Verbal Estimates

4. Skipping the Pre-Approval Process

5. Writing A Contract Before All Decision Makers Have Seen The House

6. Purchasing A Home Without Representation

7. Waiving Your Home Inspection

8. Using The Wrong Home Inspector

9. Only Getting A Quote From One Homeowners Insurance Company

10. Forgoing Owner’s Title Insurance

Homeownership Beats Renting in 3 Out of 4 U.S. Cities!

Naji Rashid — Tue, 11 Oct 2011 16:58:31 +0000

Trulia examined the cost of renting versus buying in America’s 50 largest cities and found that buying is more affordable in 72% of major cities. Three reasons buying a home has become more affordable in 72% of major cities than renting . 1. Rental prices have increased. The rental market has become flooded with homeowners who have lost their homes because of foreclosure and short sales. 2. Home prices have decreased back to 2005 prices. 3. Low interest rates. With this combination homeownership has become more affordable in a lot of areas. That is why now is a good time to buy!

Home Buyer Seminar With Harbel Housing Partnership!

Naji Rashid — Wed, 05 Oct 2011 15:49:21 +0000

I will be presenting for Harbel Housing Partnership tomorrow October 6th at the Towson Library from 6:00pm- 9:00pm. Harbel is a great non-profit housing counseling organization that educate first-time home buyers. I’ve been presenting for them for 8 years. If you would like to attend one of their workshops please give me a call at 410-977-7176 for more information.

How Much Earnest Money Deposit Do You Need!

Naji Rashid — Tue, 04 Oct 2011 16:16:19 +0000

I normally recommend that a buyer put no more than 1% earnest money deposit down when submitting an offer. If the offer price is $200,000, than the earnest money deposit should be $2,000. This is my rule of thumb, there is no set amount. My responsibility is to limit my buyers’ financial exposure. When an offer has been accepted the earnest money deposit check is put in my or the listing agent escrow account. The only way the earnest money can be released from escrow is 1. The buyer settles on the property. 2. The buyer and seller signs a written release stating whom receives the deposit. 3. If their is a dispute between the buyer and seller and the Broker feels the buyer was not at fault and sends out a Broker letter to the seller explaining why the money should be released to the buyer and the seller doesn’t respond to the letter in 30 days the Broker can release the earnest money deposit to the buyer. 4. Court order.

I do not recommend that a buyer put a very large earnest money deposit with an offer (unless you are purchasing a high price property) because a dispute between a buyer and seller can cause a delay in the buyer getting their earnest money deposit back quickly. If a buyer writes a $5,000 earnest money check and have to fight to get it released it could take months and that can affect their ability to purchase another property immediately.

Have You Heard Interest Rates as Low as 3.5%!

Naji Rashid — Tue, 27 Sep 2011 21:38:57 +0000

I thought interest rates would be around 5% towards the end of 2011 and heading towards 6%. I am glad to see I was wrong. Because of the lack luster growth with the economy, and low consumer confidence, interest rates have been kept low.This is a good thing for potential buyers. Would you rather finance $200,000 at a 5% interest rate or 3.5%? The difference is $169.41 in mortgage payments each month. Did you know that the lower your interest rate the more buying power you have. This can help you purchase in the neighborhood you desire.

In my 15 years of being a real estate professional I’ve notice that some buyers want to purchase a home in neighborhoods that are out of their financial comfort zone or buying power. Now is a good time to take advantage of the lower interest rates. This is one way to increase your buying power!

HUD Income Guidelines for Baltimore County MALP and SELP, Baltimore City CDBG, and Federal Home Loan Bank’s FHP

Naji Rashid — Tue, 05 Jul 2011 20:32:10 +0000

Below is the new HUD income guidelines for Baltimore County MALP, SELP, Baltimore City CDBG, and Federal Home Loan Bank’s FHP effective July 13, 2011.

80% Income

1 Person $44,950

2 Person $51,400

3 Person $57,800

4 Person $64,200

5 Person $69,350

6 Person $74,500

7 Person $79,650

8 Person $84,750

Contact me for more detailed information on each of the programs.

How to Get Mortgage Financing in 2011!

Naji Rashid — Tue, 28 Jun 2011 15:36:11 +0000

In my last blog post I quoted the Federal Reserve Chairman, Ben Bernanke who stated at the international monetary conference in Atlanta Georgia a few weeks ago that “despite historically affordable home values, many buyers are unable to access financing due to tightened lending standards.” While this statement is true, there are a couple of things you can do to that will help you get financing and make the process a little smoother.

1. Start the home buying process early. If your goal is to purchase a home in 2012 you should start getting prepared now. Get a free copy of your credit report from AnnualCreditReport.com.

2. Contact a lender (loan officer). After you get your report contact a lender and tell him/her that you want to review your credit report so you can become mortgage ready. I have my clients met with lenders up to a year in advance to get prepared for homeownership. When you start the process early this will allow you time to increase your credit scores so you can get the best pricing (better interest rates). Most people wait until their lease is about to expire and then they decide to purchase a home instead of renting, but they are not what we call “mortgage ready.”

3. Follow the game plan. If you follow the game plan your lender and I provide this will help your odds of getting financing with less stress. The market has changed since the so-called boom your loan must make sense to the lender.

If you start early, get your report, meet with a lender and follow the game plan you can make the process a lot easier on yourself and more enjoyable. If you need a good lender to guide you through the steps contact me and I will send you a list.

Now is a Good Time to Buy!

Naji Rashid — Thu, 23 Jun 2011 21:27:42 +0000

A recent survey backed by the National Association of Home Builders (NAHB) found that Americans see beyond the immediate housing market to the enduring value of homeownership which still remains essential to the American dream. The Chairman of NAHB reported that 75 percent of those polled said owning a home is worth the market fluctuations and 95 percent of homeowners say they are happy with their decision to own.

I assist many first-time home buyers with the purchase of their first home and I can say that 100 percent of my clients were happy with their purchase. I contact my clients after they settle in their new homes to see how they are doing and even in this economy all of them were happy with their purchase. No house is perfect and sometimes things happen unexpectedly, but I have not had a client who said “I wish I had not purchased this house.” This tells me that homeownership is a good thing and still the American dream for many people. Buying a home is not as easy as during the real estate boom and can be challenging as the Federal Reserve Chairman, Ben Bernanke reported last week at the international monetary conference in Atlanta, Georgia. He stated that, “despite historically affordable home values, many buyers are unable to access financing due to tightened lending standards.” This is true so you need to prepare for homeownership. If you are thinking about purchasing a home next year you need to get started now. In my next blog post I will show you how to prepare so getting financing from your lender is not so difficult.

Spring Market Has Arrived!

Naji Rashid — Mon, 18 Apr 2011 19:36:30 +0000

Spring is here and the real estate market is beginning to heat up! Programs for first-time home buyers are in full bloom. I am beginning to see a few multiple offers on really nice houses. Here is a spring cleaning item you can do to get prepared.

Get preapproved before you go house shopping. On Friday my wife and I were showing a foreclosure property to one of my clients, as we were leaving the house a couple approached us about the property. My client told the couple that he was not interested in the property and he gave them his listing sheet (detailed information about the property). They wanted to take a look at the property and I told them I had one more property to show my client and I could meet them back at the house if they did not have an agent. When I returned to the property one of the first questions I asked ” have you been preapproved?” They said no. After showing them the property I told them I could assist them with getting preapproved and they should do that first before continuing to look at houses. In the spring market getting preapproved before you start looking at houses is essential because you have more active buyers in the market during the spring. You could potentially lose out on a house you like because some one else took the time to get preapproved before touring houses and you didn’t.

If you need help in getting preapproved I can provide a list of good lenders contact me at 410-977-7176.