Be Careful About Your Closing Date

According to one real estate expert the worst day of the year to buy a home is the last Friday in May. You may wonder just how someone could come up with a certain day and name it the worst. I can tell you that after many years in any business, you start to see patterns.

After years in the business this real estate professional has seen how closings scheduled near Memorial Day end up being pushed back. Most people are not available for work. Even those that are have their minds elsewhere. Also, a delayed closing date could have an effect on your interest rate. If you have a locked-in rate for a certain time period, you do not want it to expire.

This expert feels that April is prime time for pending home sales. This makes for a larger number of closings in May. Real estate professionals feel extra pressure at this time of year because their workload is heavier.

Since the Memorial Day holiday has already past for this year, it is not a problem. Still, this is definitely something to think about. Overall, you should consider making sure that your closing date does not fall around any major holiday or three-day weekend. You want a complete and mindful staff working on your behalf.

What to Do When Your Home Is Worth Less than Your Mortgage

It's every homeowner's nightmare scenario: You have to sell your home but the sale price won't cover your mortgage. This kind of bad dream doesn't happen often. Usually homeowners can wait it out until the market improves, purchase prices go up again, and things balance out. The problem is that this takes time, sometimes years. Some people don't have time to wait out the market. A job transfer, divorce, illness or other necessity may force them to sell now. If you bought high during the recent boom but need to sell this summer when prices have been forced down by high market inventories, you could have a serious problem.

What do you do if you can't sell your house for enough to meet the closing costs? First of all, don't neglect your mortgage payment. You'll do serious damage to your credit rating and make matters much worse. You do have options, says veteran realtor John Day. The best might be a short sale.

A short sale "is when you fess up to the lender, let them know about your hardship and ask if they would please accept less money than you owe," John explains.

Obviously, lenders are reluctant to do this which makes short sales fraught with stress and tension. Of course, the circumstances that brought you to the decision are stressful in themselves, then there's the exacting paperwork associated with a short sale which adds to the stress. It's best to have an experienced real estate agent by your side to help guide you through the process. A knowledgeable agent like John Day not only knows the ropes and understands the process, but can provide much needed advice and moral support.

To find out how to initiate a short sale and the process involved, read John Day's excellent June newsletter (just click the post title). Here's what to expect if you attempt a short sale:

• Make sure you date and keep copies of everything. You should also date and document every phone call for your records, including the name of the person you talked to.


• Contact your lender's loan service department and explain your problem.


• Submit paperwork and a financial statement. (They'll be looking for assets you can cash in to make up the difference between the sale price and your loan amount.)


• Your realtor puts your house on the market, finds a buyer and obtains a bona fide offer.


• Submit the contracts and paperwork to your lender.


• Wait. Your lender will need some time to make a decision.

If you're selling your home, contact veteran realtor John Day. A top seller with prestigious Long & Foster Realtors, John has the experience and expertise to sell your home for the highest possible price.

If you're facing a potential short sale, you want John Day by your side. John will do everything he can to help you get through what will be a stressful process. Give John a call today and visit John's website for lots of great tips on selling and buying a house. If you're buying or selling a home in Maryland or the Washington DC metro area, John Day is your key to success.

What to Expect at Closing

When you've found the home of your dreams and your offer has been accepted, the only thing between you and a key to the front door is the closing. The closing is the final stage of a real estate transaction. Typically those gathered around the table will include you (the buyer) and your agent, the seller and his agent, and a title agent who represents the financial parties involved. Generally chosen by the seller, the title agent directs the closing. His duties include:

• Review all paperwork with each party.
• Transfer money and documents from one party to another.
• Collect and disperse money for the lenders.
• Properly record all documents.

Before the closing, your real estate agent and lender should each give you a list of documents and checks you need to bring with you, as well as a list of items you'll can expect to receive. To prepare for the closing you should:

• Review your loan terms and purchase agreement. Your realtor can explain these documents to you and answer your questions.
• Conduct a final walk-through inspection of your new home to make sure that all agreed repairs have been made and that no items listed in your agreement have been changed or removed from the home.
• Collect the appropriate documents.
• Obtain certified or cashier's checks from the bank in the amounts specified. Personal checks are usually not accepted at a closing.

At the closing you'll be given several documents to read and sign including the settlement statement which details charges to each side, a truth-in-lending statement that states the annual percentage rate of your loan and other terms and conditions, the mortgage note and the deed. You will also need to pay the closing costs, down payment and escrow payment for taxes and home insurance. Closing costs generally run 2% to 6% of the mortgage loan amount and include:

• appraisal fee
• title search
• credit reports
• transfer taxes
• mortgage points and other fees

When you work with realtor John Day, your closing day will go smoothly. A veteran of hundreds of closings, John is familiar with all the little problems that can arise -- and how to avoid them. His experience and attention to detail ensure that your closing will be problem-free. The only thing you'll need to worry about is remembering to bring the champagne!

If you're buying or selling a home in Maryland or the Washington DC metro area, give realtor John Day a call. Visit John's website to view the latest listings and read helpful articles for both buyers and sellers. If you're buying or selling a home, realtor John Day is your key to success.