The Home Buying Process – Now What? Directory

The Now What? Series, brought to you by The Natale Group at Keller Williams Realty, is the best source for all questions about real estate transactions, from the first thought of buying or selling, all the way to the closing table.  In this business as a Broker-Associate, I always have client’s who ask for guidance throughout the process of buying or selling real estate.  I figured a great idea would be to put all of those “What happens if..?” or “What do you think about..?” or “Now What do I do?” questions into an extensive blog series.  Enjoy!

I Want to Buy a Home – Now What?

I’ve Done the Research to Buy a Home – Now What?

I’ve Been Pre-approved – Now What?

I’ve Done my Home Buying Consultation with The Natale Group – Now What?

I’m Touring Homes and Can’t Find What I Like – Now What?

I Found a Home I Like – Now What?

I Want to Put an Offer In – Now What?

I Put an Offer in, and I’m Now in a Bidding War! Now What?!

My Offer was Accepted! – Now What?

Attorney Review is Concluded – Now What?

Issues Came Up in the Home Inspection – Now What?

I’m Past the Home Inspection Contingency – Now What?

The Appraised Value Came In Too Low – Now What?

The Appraisal Contingency is Concluded – Now What?

I’ve Got My Mortgage Commitment – Now What?

It’s Closing Day – Now What?

I’ve Closed on a Home Purchase – Now What?

I’ve Closed on a Home Purchase – Now What?

The Now What? Series, brought to you by The Natale Group at Keller Williams Realty, is the best source for all questions about real estate transactions, from the first thought of buying or selling, all the way to the closing table.  In this business as a Broker-Associate, I always have client’s who ask for guidance throughout the process of buying or selling real estate.  I figured a great idea would be to put all of those “What happens if..?” or “What do you think about..?” or “Now What do I do?” questions into an extensive blog series.  Enjoy!

The closing day has come and gone and now it’s time to settle into your new home or investment.  If moving in, it’s important not to stress during the un-packing and un-winding, you’ve had enough in buying the home! Take your time moving in as you’ll hopefully enjoy many year’s at the home so there’s no rush in getting everything in there.

jersey shore homes

Make sure you keep up to date on all maintenance type systems in the home, including your air condition, furnace and all appliances.  Walk & drive around the area and get to know the neighbors and surrounding shopping and transportation systems.  I’ve lived in the area my entire life, so if there’s any recommendations needed or questions about the area, always feel free to reach out to me.

Other than that, it’s time to enjoy home ownership.  This home is a place to hang your hat and relax.  Keep good care of the home, until it comes time to sell it, which is the process we’ll go over in the next blog series: The Home Selling Process – Now What?

Need help with either the home buying or home selling process.  Contact John Natale Jr. from The Natale Group.

John Natale Jr.

john natale keller williams

The Natale Group

Natale_Logo

 

Keller Williams Realty East Monmouth

Cell: (732) 546-6177

E-Mail: NataleSells@Gmail.com

 

It’s Closing Day – Now What?

The Now What? Series, brought to you by The Natale Group at Keller Williams Realty, will be the best source for all questions about real estate transactions, from the first thought of buying or selling, all the way to the closing table.  In this business as a Broker-Associate, I always have client’s who ask for guidance throughout the process of buying or selling real estate.  I figured a great idea would be to put all of those “What happens if..?” or “What do you think about..?” or “Now What do I do?” questions into an extensive blog series.  Enjoy!

It’s closing day!  One of the more exciting days of a home buyer’s life.  So what actually happens on a closing day for properties in the Jersey Shore area?   First, The Natale Group and the home buyer set up a time for a final walk-through of the property approximately 60-120 minutes prior to the closing at the buyer’s attorneys office.

spring lake nj hoems

The final walk-through is used to make sure the house is the same as when the buyer came to an agreement with the seller and in the same condition after the inspection fixes were made.  There will most likely be no furniture in the property, but other than that a buyer should expect no holes in the walls, the property to be in “broom swept” condition, and any appliances that were included with the sale to be at the property in working order.  Typically, I’ll help with this and help ensure the owner left nothing of value behind at the property.  Sometimes, sellers will leave extra paint cans or certain tiles for the buyer just in case they ever need them.

If there’s an issue at the walk-through, the attorney is contacted right away and will work it out before the buyer arrives at their office for the closing.  Most times there are no issues and it’s on to the attorney’s office, where the home buyer officially become a home owner!

jersey shore home closing

After doing a little bit of paperwork, signing their life away (or at least for the next 30 years,) the buyer is handed the keys and officially owns the property.  Hooray!!

*Even though this seems like the end, there will be one more blog post on what to expect after closing!

Need help with the home buying process and want to contact John Natale Jr. from The Natale Group?  Click here.

John Natale Jr.

john natale keller williams

The Natale Group

Natale_Logo

Keller Williams Realty East Monmouth 

Cell: (732) 546-6177

E-Mail: NataleSells@Gmail.com

 

I’ve Got My Mortgage Commitment – Now What?

The Now What? Series, brought to you by The Natale Group at Keller Williams Realty, will be the best source for all questions about real estate transactions, from the first thought of buying or selling, all the way to the closing table.  In this business as a Broker-Associate, I always have client’s who ask for guidance throughout the process of buying or selling real estate.  I figured a great idea would be to put all of those “What happens if..?” or “What do you think about..?” or “Now What do I do?” questions into an extensive blog series.  Enjoy!

Sitting on deck chairs enjoying vacation

Woo hoo! As a buyer with The Natale Group, once you have the mortgage commitment in your possession, there’s not much left to do other than start to get ready for the closing day and moving in!  Use this time to most importantly, finish any conditions on the mortgage commitment, and to also start packing or start envisioning the home.  I would not suggest going to the local Best Buy and ordering a new 80 inch Ultra-HD TV, along with a brand new sectional couch from Raymour and Flanigan just yet.  Unfortunately, I always suggest waiting until after the closing day and the keys are in a happy buyer’s hands before going out and doing those things.

This could be time for you to meet a painter or two, or a contractor, at the property to start getting quotes.  The Natale Group will always be available to meet you to let you in, before its officially your property.  Sometimes, there’s nothing to do at all, just relax and wait until the closing day!

Need help with the home buying process and want to contact John Natale Jr. from The Natale Group? Click here.

John Natale Jr.

john natale keller williams

 

The Natale Group

Natale_Logo

Keller Williams Realty East Monmouth

Cell: (732) 546-6177

E-mail: NataleSells@Gmail.com

 

The Appraisal Contingency is Concluded – Now What?

The Now What? Series, brought to you by The Natale Group at Keller Williams Realty, will be the best source for all questions about real estate transactions, from the first thought of buying or selling, all the way to the closing table.  In this business as a Broker-Associate, I always have client’s who ask for guidance throughout the process of buying or selling real estate.  I figured a great idea would be to put all of those “What happens if..?” or “What do you think about..?” or “Now What do I do?” questions into an extensive blog series.  Enjoy!

Whether the appraisal report came back with a value in line with the sale price or a deal was worked out with a low appraisal, the appraisal contingency has been concluded and now the dramatic events of the transaction are completed.  The buyer in this situation only has a few things left to do (almost there!).

jersey shore mortgage

The next thing to focus on is getting in contact with the buyer’s mortgage lender and completing the items needed for a mortgage commitment.  The mortgage commitment is the bank committing to giving a buyer a mortgage with an X amount of days from that point, usually based on a few conditions that will need to be satisfied prior to closing.

mortgage-commitment-approved-e1319655416721

If a buyer with The Natale Group at Keller Williams has not already done so, all of their financial documents such as bank statements and tax records should be gathered and sent & yes, re-sent to the mortgage lender.  Do not be surprised if somewhere in the stack of sometimes 500+ papers, a mortgage lender loses that one tax return for 2012 that is needed in order to get a mortgage commitment or close on the property.

Looking to start the home buying process and want to contact John Natale Jr. from The Natale Group? Click here.

John Natale Jr.

john natale keller williams

The Natale Group

Natale_Logo

Keller Williams Realty East Monmouth

Cell: (732) 546-6177

E-mail: NataleSells@Gmail.com

 

The Appraised Value Came In Too Low – Now What?

The Now What? Series, brought to you by The Natale Group at Keller Williams Realty, will be the best source for all questions about real estate transactions, from the first thought of buying or selling, all the way to the closing table.  In this business as a Broker-Associate, I always have client’s who ask for guidance throughout the process of buying or selling real estate.  I figured a great idea would be to put all of those “What happens if..?” or “What do you think about..?” or “Now What do I do?” questions into an extensive blog series.  Enjoy!

jersey shore appraised values

When an appraisal report comes back to the mortgage lender and the value the appraiser deemed is too low, it really does become a problem.  That does not necessarily mean the transaction is finished and there are no solutions to work the transaction out.  First, let me set up an example.

A buyer and seller agree to a deal for a property at $500,000.  The buyer is putting down 20%, which is $100,000.  This means the mortgage lender is lending the buyer $400,000 for the property.  Say the appraised value comes in at $425,000.  Most consumers think, well it’s above $400,000 so the bank shouldn’t care.  Most times, that’s incorrect.  The bank will most likely keep their 20/80 loan to value ratio and will only give a loan for 80% of $425,000.  This means the cash required to purchase the property would increase from $100,000 to $160,000.  Realistically, this extra $60,000 down payment is not a feasible number.  Most buyer’s will then turn and say well the seller can reduce down the price down to $425,000 since the appraised value was there.  More times than not, they are not willing to reduce by over $75,000 so you may start to see where the trouble lies.

In the dramatic under-appraisal as stipulated above, if there seems to be an error on the appraisal report, whether certain features or square footage are incorrect, would be to challenge the appraisal and have a new one ordered.  If challenging the appraisal is not an option, the transaction above becomes tough.  There are times the difference is split between the buyer and seller, as long as it’s feasible for both.  Sometimes the buyer switches to a new lender, which will re-start the mortgage process, but overall may get them a new appraised value that will be in line with what they agreed upon the price.

Value Price Puzzle Concept

Almost all the time the appraised value is in line with the sales price since the real estate professionals, along with the buyers and sellers are typically in tune with market values and did their due diligence in negotiating.  When it comes in very low, it’s often not a great sign, but does not, by any means, there is nothing that can be done.

Need help in the buying process and want to contact John Natale Jr. from The Natale Group?  Click here.

John Natale Jr.

john natale keller williams

The Natale Group

Natale_Logo

Keller Williams Realty East Monmouth

Cell: (732) 546-6177

E-mail: NataleSells@Gmail.com

 

 

 

I’m Past the Home Inspection Contingency – Now What?

The Now What? Series, brought to you by The Natale Group at Keller Williams Realty, will be the best source for all questions about real estate transactions, from the first thought of buying or selling, all the way to the closing table.  In this business as a Broker-Associate, I always have client’s who ask for guidance throughout the process of buying or selling real estate.  I figured a great idea would be to put all of those “What happens if..?” or “What do you think about..?” or “Now What do I do?” questions into an extensive blog series.  Enjoy!

appraisals jersey shore

After making your list, and checking it twice..wait, it’s not your wish list to Santa.  After a buyer has made their list of requested repairs and the buyer and seller come to an agreement, the home inspection contingency is concluded.  So now what is left to do?  The next important step in buying a property in the Jersey Shore area is to have an appraisal performed by the lender.  If the deal is for cash, there is no appraisal done.  The mortgage lender will require an appraisal be done to ensure their loan value to a buyer makes sense and to ensure that the buyer is not grossly overpaying for a property with the bank’s mortgage.

So what exactly does an appraiser do to determine value of a property?  Typically, and in 99% of real estate residential sales, they’ll use a sales-market approach to determining value.  This means they’ll visit the property, measure the dimensions of the home to generate exact square footage, take photos and write down the upgrades that have been done to the home.  They then take this to a few comparable sales in the neighborhood and surrounding area to determine a price.  The appraiser then formalizes a report and sends it to the bank.

 jersey shore appraisals

As long as the price determined by the appraiser is at, above or close enough to the sale price that it is within the bank’s loan to value limit, the transaction will continue on.

Need help with the buying process and want to contact John Natale Jr. from The Natale Group? Click here.

John Natale Jr.

john natale keller williams

The Natale Group

Natale_Logo

Keller Williams Realty East Monmouth

Cell: (732) 546-6177

E-mail: NataleSells@Gmail.com

 

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