Frequently
Asked Questions:
Common
Q & A's for Buyers
Q:
What's the first step if I want to buy a home?
A:
In order to buy a home, you must receive a Loan Status Report
from a local bank or a mortgage broker. This report is needed
when placing any offers on properties. This report shows the seller
that you are capable of obtaining financing from a lender. Visit
www.Lendermae.com
for a pre-approval application. Once you complete the pre-approval
application, a Loan Officer will contact you for further instructions.
Q:
I'm receiving home listings from your company via email, but there
were only fifty listings. How can I find more houses?
A:
Most of the time, the search criteria requested may be limiting
you to the amount of homes you're receiving. For more listings
to be displayed, the search may require more cities to be selected
or a value to be changed.
Recommendations:
Add more cities, reduce the amount of bedrooms needed, decrease
min sqft needed. All will increase your search results. You can
e-mail us at support@brokerexecutives.com
to set this up.
Q:
Is it possible to still buy a home with no money down? Or 100%
mortgage financing?
A:
No.
Since August 15 th , 2008 banks have restructured the way they
approve financing. Because of all the bank failures it is required
for the buyer to have "skin" in the deal. The majority
of non-conforming loans have gone away and FHA has stepped in
to assist these buyers. The minimum down payment required now
is 3% of the purchase price. This money cannot be gift funds and
must be seasoned in your bank account for at least three months.
Q:
Do banks allow Seller Carry Backs?
A:No
because title is being transfered without the note being paid
in full. Most lenders have a "due on sale" clause in
the note which states, "any sale, transfer, conveyance of
title requires the note be paid in full." The only type of
conveyance most lenders will allow a land contract.
Q: What is the difference between a land contract and a seller
carryback?
A1: A true seller carry back allows for legal title to
be conveyed to a third part or trustee who holds as security for
the beneficiary (seller). In case of foreclosure, standard trust
deed foreclosure procedures are used. In other words, the buyer
receives a Deed of Trust which gives the borrower/buyer all ownership
rights while the lender has an equitable interest in the property.
A true seller carry back allows for fee simple ownership, which
gives the buyer/borrower the right to sell, convey just as a borrower
would have using a traditional lender.
A2: A Land Contract also
known as an Agreement for Sale is when the seller gives
the buyer/borrower "equitable title", while the
seller retains legal interest in the property until the debt is
satisfied. In case of default a land contract usually contains
a clause protecting the seller and allowing the seller to forfeit
the contract and evict the buyer. The difference between a land
contract eviction and a trust deed eviction are the time frames
involved. Time frame for trust deed foreclosure is about four
months. Time frame a land contract foreclosure/eviction depends
on the how much the buyer placed as a down payment. The following
shows the eviction time for a land contract:
0-19
Percent Equity 30 days to catch up payments
20-29 Percent Equity 60 days
30-49 Percent Equity 120 days
50 percent or more 9 months
It is important to mention, a Land Contract does not give the
buyer a warranty deed only equity title. Because of this,
the buyer does not yet own the property. When a buyer has equitable
interest/equitable title, they have the right to obtain the deed
in court. With a warranty deed the buyer has Fee simple interest
which gives them a warranty deed and means you have a deed reciting
full ownership of the appurtenant rights in the property. More
importantly with a land contract you cannot sell the property
yet, because you do not hold any type of title.
Q: Can I buy a house with no credit check in Arizona?
A:
Yes, it is possible to buy a home with no credit check; however,
the amount of properties you can qualify for are limited to Seller
Carryback Homes. Seller Carryback homes do not require a credit
check and a buyer can easily buy a home without ever having their
credit pulled. The other alternative to buying a home without
a credit check it to find private financing or hard money financing.
We have several sources available but the amount down at a minimum
is 10%. If you are interested in viewing seller carryback homes
that may not require a credit check, click the link below:
Q: Can I buy a house if my wife has had
a foreclosure?
A:FHA
and Conventional Financing requires both applicants have their
credit pulled. Any person on the loan application must meet the
guidelines to qualify. If both are needed to qualify the answer
is no. If only personal can qualify for the financing, then it
is the underwriters discretion.
Find
Seller Carryback Homes / Owner Financing
Q:
What is a Seller Carryback or Seller Financing?
A:
A Seller Carryback is an alternative way to buy a home without
using a traditional lender. In the State of Arizona, properties
are owned by Trust Deeds and are financed by "Notes"
not "mortgages". The instrument used to finance a property
is piece of paper describing the amount owed known as the "mortgage
note". This type of financing allows property owners in Arizona
to create their own financing through a title company called a
"seller carryback". In this situation, the buyer
receives the same type of title another buyer would receive if
they were going through a local bank. There is no underwriting
needed to obtain a "seller carryback" like a buyer would
need going through a traditional lender. The only determining
factor is discretion of the owner and whether or not he wants
to carry the financing for the buyer. If you're interested in
receiving a list of homes that offer seller financing, please
contact
us. We will be happy to search seller carryback
homes and email any homes that are available with this option.
Find
Seller Carryback Homes / Owner Financing
Q:
Can the equity from a seller's short sale home go towards the
buyers down payment?
A:
There is no equity in a short sale. Remember, a short sale is
when a home owner owes more than the value of the home. They are
asking the lender to sell the home for less than what is owed.
There is no equity in a short sale. Any money reduced by the lender
is only reduced to the value of the home and nothing less. There
are several professionals that ensure the lender is getting top
dollar for the home. Appraisers, Broker Price Opinions, CMA's
and asset managers all ensure the value is in line for a short
sale. In today's market, the only type of down payment that can
be given is from a direct family member. This is the only down
payment assistance allowed through FHA and CONV financing. Please
email us with any other questions regarding this.
Q:
I found a home through your search engine and would like to view
it right away. When can I see the home?
A:
90% of all our business is done online. For this reason, Email
us the MLS numbers of the properties you would like to view. The
MLS number can be found on any MLS search engine. Once we receive
them, we'll contact the listing agents to ensure the properties
are still available and have NO pending offers or applications
on them. Once we have confirmed the properties are still available,
we will email you a time available to see the property.
When
emailing us the MLS numbers, please do so in this order: 48430943,4343479,2132390,2382329,24382402.....
This format will save us time in processing your request.
Q:
Can I buy a home even though my credit score is low?
A:
Credit scores must meet certain guidelines for all FHA mortgages
except for streamline refinances that do not require any credit
check. Generally credit scores must be in the following range:
400-620+
Certain
circumstances will allow FHA to be forgiving such as medical bill
collections and may allow credit scores that are lower if certain
compensating factors are met such as large retirement savings,
higher than expected income, or more of a down payment.
Q:
How much money do I need to buy a home?
A:
Since August 2008, buyers must have 3% down of their own funds
and must pay for closing costs on their own. No gift funds are
allowed.
Q:
I have found a home I would like to see, will contacting the listing
agent save me any money?
A:
We understand buyers are trying to save all the money possible,
and some buyers have been told by not using a real estate agent
to find their home can save them in negotiating a sales price.
The fact is, the listing agent for the home you want to buy will
still get paid and receives the same commission even when a buyer
is not represented. Also as a buyer you would be in dual representation.
Meaning the listing agent would owe fiduciary trust to the seller
and you. How can this fairly be done? It can, but it's better
to have a Broker Executive Represent you.
Q: How
long does it take once loan has gone to underwriters to receive
an approval, for a FHA home buyers loan?
A:
FHA loans have been taking anywhere from 2-3 weeks for underwriting
approval. Bank of America is now taking 6 weeks for approval on
FHA streamlines. Once, the underwriter has approved the loan,
there are always, "Loan Conditions." Loan Conditions
are always issued once an underwriter approves a file. This tells
the borrowers, what items the borrower must show in order for
the underwriter to give final approval. Once conditions have been
met, expect one more week in underwriting and about a 2-3 days
for funding.
Q: Why do some homes not qualify for
FHA?
A: FHA has guidelines that require properties to be warrantable.
Condo's have the biggest issue with these. FHA will not approve
condo's that are non-warrantable. Non-warrantable means, there
are more investors that own units in the complex than owners.
This is proof for the lender you could eventually rent the home
your buying and this is not the purpose of the loan. FHA only
lends on primary residence homes. Homes that you will live in.
Non-warrantable usually requires more than 50% of complex to be
owned by investors. There is no possibly way to get around this
guideline as of 2009.
Q: What is non-warrantable?
A: When more than 50% of the condo's in a complex are owned by
investors. This is the tipping point for FHA to approved a loan.
Once it's over 50%, the property is considered investment use
and no longer qualifies under FHA. Conventional will still loan
on the property but 20-40% down is usually required.
Common
Q & A's for Sellers
Q:
I currently owe more than my home is worth, can I short sale my
property?
A:
Yes; however, short sales in Arizona can be very difficult. Arizona
has some of the highest short sales in the Nation. And because
of the amount of time it takes to close on a short sale, most
buyers would prefer to view bank owned properties instead. Also,
the lender will need to clearly see there is no chance the property
will sell for enough to cover all liens and closing costs. This
can be difficult and time consuming to prove. Broker Executives,
has experienced professionals to assist you with this process,
so please don't hesitate to contact us.
Q:
How do I find the Value of my Home?
A:
CMA's or Cummulative Market Analysis is an example of how we determine
price market price. We can email a report to you at your request.
Value is based on what listings are selling for in your area and
what have sold for in your area. Below is an example of how our
CMA is compiled.
A..Properties that have sold and closed within the last 12 months
B..Active listings - properties currently for sale
C..Pending sales - listings that have sold but not yet closed
D..Expired listings - properties that did not sell during the
listing period
Q:What
are the different types of Real Estate Listing Contracts?
1)
Exclusive Right to Sell: The
listing agent contracted is the sole broker representing the seller
in the transaction.
2) Open Listing: Seller only
pays the Broker who brings the buyer. Upfront Fees may apply.
3) Exclusive
Agency: Seller reserves the right
to sell and not pay a commission. Upfront Fees may apply.
4) Net Listing: Seller needs
a certain dollar amount and will pay the agent anything above
asking.
Q:
What is a Seller Carryback or Seller Financing?
A:
A Seller Carryback is an alternative way to buy a home without
using a traditional lender. In the State of Arizona, properties
are owned by Trust Deeds and are financed by "Notes"
not "mortgages". The instrument used to finance a property
is piece of paper describing the amount owed known as the "mortgage
note". This type of financing allows property owners in Arizona
to create their own financing through a title company called a
"seller carryback". In this situation, the buyer
receives the same type of title another buyer would receive if
they were going through a local bank. There is no underwriting
needed to obtain a "seller carryback" like a buyer would
need going through a traditional lender. The only determining
factor is discretion of the owner and whether or not he wants
to carry the financing for the buyer. If you're interested in
receiving a list of homes that offer seller financing, please
contact
us. We will be happy to search seller carryback
homes and email any homes that are available with this option.
This
type of financing has helped hundreds of buyers move into a home.
If your home has been on the market for a while, this is a sure
way to get it sold. There is also several protection available
to the seller when carrying the financing.
1) You still hold the deed to the property.
2) The only deed given to the owners is the standard Warranty
Deed which gives them just as much right as when they obtain financing
through a local bank.
3)
Payments made to you are almost entirely interest.
In a sense, you are renting the property with the buyers promise
to pay you the full purchase price agreed when you sold them the
home. If you would like to learn about seller financing or seller
carrybacks, please contact
us. We will be happy to meet with you and
give you professional advice as to how to arrange and protect
yourself throughout the process.
Q:
I'm interested in selling my home, how will you advertise?
A:
Your home will be in newspapers, the Multiple Listing Service
(MLS), our realty website, neighborhood postcards, open houses.
In addition, our realty company sends mass mailings/emails so
we are constantly driving traffic and eyes to your home.
Q:
Why do I need a Broker to sell my home?
A:
Having a professional realty company working for you is in your
best interest. Each of our agents have undergone hundreds of hours
of education courses to ensure their representation is in the
best interest of the client. We understand the legal issues involved
with selling your home and how to write a contract that is in
your best interest. By not having good representation you could
be obligated for repairing items in the home that you don't want
to fix. Furthermore, you could be liable for HOA transfer fees,
home inspection cost, origination fees and many more.
Q:
How much does it usually cost to sell a home?
A:Depending
on the price of the home can change what our commission costs
is, but typically 3% will go towards the buyer's agent( the agent
that finds you a buyer must be paid) and 1%-3.5% to the listing
broker, which is Broker Executives. This does not include any
fees associated to the property; such as, transfer fees, title
fees and fees negotiated in the real estate sales contract.
Q:
I'm thinking of a FSBO , for sale by owner. Give me a reason why
I should not.
FSBO
sellers find it difficult to get qualified buyers because:
1.
Buyers who respond to FSBO ads usually have not been qualified
to buy (the qualified buyers retain real estate agents to help
them find a house).
2.
Real Estate agents don't show FSBO homes (they show homes listed
by other agents).
3.
Buyers who view FSBO homes are often bargain hunters - they know
you aren't paying a commission and so they expect you to lower
your price.
4.
Many buyers who buy FSBO homes are savvy investors who negotiate
low prices.
FSBO
sellers cannot negotiate the best sales deal because :
1.
Sellers are emotionally attached to their house and often think
the value is higher than it really is.
2.
Sellers are not familiar with the "big picture" of the
real estate market and its values.
3.
Sellers are not attune to buyers and do not know their wants or
needs.
4.
FSBO sellers must negotiate personally with the buyers, getting
involved on an emotional level, rather than as a business transaction.
5.
Sellers are inexperienced in mortgage lending procedures and solving
complex requirements.
6.
Sellers are not experienced with solving glitches, such as low
appraisals.
7.
Sellers who personally accept deposits may spend the funds (rather
than securing with a neutral party).
8.
FSBO sellers are at high risk of lawsuits - they are not familiar
with legal forms, real estate laws, and requirements.
Article
questions by R.P. Brown
Top
Common
Q & A's for Renters
Q:
Where can I find an Arizona Rental Application?
Rental Application
Q:
I found a home through your search engine and would like to view
it right away. When can I see the home?
A:
90% of all our rental business is done online. First thing is
writing the MLS numbers down on each property you would like to
view. The MLS number can be found on any MLS search engine. Email
us the MLS numbers of the properties you would like to view. Once
we receive them, we'll contact the listing agents to ensure the
properties are still available and have NO pending applications
on them. Once we have confirmed the properties are still available,
we will email you a time available to see the property. When emailing
us the MLS numbers, please do so in this order: 48430943,4343479,2132390,2382329,24382402.....
This format will save us time in processing your request.
Q:
I've found a home I would like to view, how to I go about getting
the address?
A:
Broker Executives is only compensated when we represent you as
the tenants agent. If you have found a home on our site, or we
have assisted you with finding a property, please allow us to
show you that property. Please don't hesitate to contact us, because
we will be more than happy to give you the address of any home
requested with this in mind.
Q:
Does the Equity
Lease Program™
give an option to buy a home?
A:
No, because an option to buy a home or a lease option is an agreement
on a specific property. Our Equity Lease Program transfers equity
from your lease agreement to the next home you decide to buy.
Q:
How long does it take to start receiving home listings via email?
A:
Rental listings are processed once they are received from our
server. If you have requested to view a property via our search
engine or have requested home listings then our server may not
have sent us the application right away. Please allow up to eight
hours for the listings or confirmation of your scheduled showing
to be received.
Q:
I'm receiving home listings from your company via email, but there
were only fifty listings. How can I find more houses?
A:
Most of the time, the search criteria requested may be limiting
you to the amount of homes you're receiving. For more listings
to be displayed, the search may require more cities to be selected
or a value to be changed.
Recommendations:
Add more cities, reduce the amount of bedrooms needed, decrease
min sqft needed. All will increase your search results. You can
e-mail us at support@brokerexecutives.com
to set this up.
Q:
Does Broker Executives only work with people in Arizona?
A:
Yes because we only hold a license in the State of Arizona.
Q:
Can Broker Executives find me a home to purchase after my lease?
A:
Yes, and we offer an Equity Lease Program for that reason. Ask
one of our representatives for details.
Q:
Does your company work weekends?
A:
Saturday yes, Sunday no. However, a member of our staff is always
available and can be reached via e-mail or on their mobile phones.
To reach one of our agents, please e-mail support@brokerexecutives.com
Q:
How many rental listings will I find with your company?
A:
Our Company is linked up to the Arizona Regional Multiple Listing
Service. Meaning our search criteria is vast and covers the entire
Arizona Rental Market.
Top
Common
Q & A's for Investors
Q:
I've found a home I would like to view, how to I go about getting
the address?
A:
Broker Executives is only compensated when we represent you as
the Buyers agent. If you have found a home on our site, or we
have assisted you with finding a property, please allow us to
show you that property. Please don't hesitate to contact us, because
we will be more than happy to give you the address of any home
requested with this in mind.
Q:
I found a home through your search engine and would like to view
it right away. When can I see the home?
A:
90% of all our business is done online. For this reason, Email
us the MLS numbers of the properties you would like to view. The
MLS number can be found on any MLS search engine. Once we receive
them, we'll contact the listing agents to ensure the properties
are still available and have NO pending offers or applications
on them. Once we have confirmed the properties are still available,
we will email you a time available to see the property.
When
emailing us the MLS numbers, please do so in this order: 48430943,4343479,2132390,2382329,24382402.....
This format will save us time in processing your request.
Q: What's the difference
between a foreclosed home and a bank owned home?
A:
There is no difference between the two; however, if a home is
foreclosing, it is not yet bank owned until the trustee sale closes.
*Tip:
Most of our investors stay away from homes going into foreclosure
because these can turn into short sales.
Q: What is the difference
between a short sale and a bank owned home?
A:
Since Short sales are homes either in Foreclosure or will eventually
go into foreclosure. In most cases, the owner cannot afford the
payments and decides to sell for less than what is owed.
*Tip:
Stay away from Short sales unless you have the patience to wait
weeks to receive any kind of counter offer or rejection from the
lender.
Q:
How does your company handle evictions?
A:
The following page is a description of the legal process involved
in completing an eviction
in Arizona. We take this as a very serious matter
and work with legal experts to ensure all laws are followed when
handling this process.
Q:
I already own an investment property. Can I obtain financing for
another?
A:
The recent mortgage laws allows an investor to own up to five
properties with mortgage liens. More properties are allowed however,
the borrowers credit score must exceed 700. For more detailed
information, please contact our investment
specialist.
Q: What’s the first
step if I want to buy a home?
A:
Unless you are paying cash, you must be prequalified by a Loan
Officer and receive a Loan Status Report better known as a LSR.
This report is needed when placing an offer on a home to buy.
This report shows the seller that you are capable of obtaining
financing from the bank. Visit Lendermae.com
for a pre-approval application.
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