When a buyer and seller enter into a Purchase and Sale Agreement for a short sale, the offer must go to the seller’s lender or bank for approval. At this point, some Multiple Listing Services (MLSs) require the home’s status be changed to “Pending Short Sale.” There is often more than one lender or bank […]
After a seller has accepted a buyer’s offer, the deal may run into a snag; for instance, the buyer may have trouble qualifying for a mortgage. The seller’s listing agent can change the home’s status to “Pending – Taking Backups,” which will allow the seller to consider backup offers in case the original offer falls […]
A home’s status changes from “Pending” to “Pending – Over 4 Months” automatically when the listing’s pending status has remained unchanged for four months. Listings with a “Pending – Over 4 Months” status may simply be taking a longer-than-usual time to close due to slow construction progress or extended negotiations between the buyer and seller. […]
These two terms may seem like they refer to the same action potential borrowers take before securing a mortgage, but they are slightly different. In order to be pre-approved for a home loan, a future buyer needs to be pre-qualified. Pre-qualification occurs when a lender determines a borrower has all of their finances in order and […]
As a seller’s agent, you’ll want to get your client’s listing in front of as many people as possible via your real estate marketing strategy. The math is simple: The more prospective buyers you get interested in your property, the better your chances are of securing more offers — and possibly even a bidding war. […]
A purchase agreement demonstrates a buyer’s intent to purchase a piece of property and a seller’s intent to sell that property. The document outlines the terms and conditions of a sale and holds each party legally accountable to meeting their agreement.
The prime interest rate is typically awarded to a U.S. bank’s best customers. It’s the best-available loan rate and is usually three points above the federal funds rate: the rate banks charge each other for overnight loans.
Unlike pre-approval, pre-qualification is more of an estimate of how much you can afford to spend on a home.
Before submitting an offer on a home (or even engaging with a real estate agent) you’ll likely be required to get pre-approved. This means a lender has checked your credit, verified your information, and approved you for up to a specific loan amount for a period of up to 90 days.
PITI stands for principal, interest, taxes, and insurance, and refers to the sum of each of these charges, typically quoted on a monthly basis. These costs are calculated and compared to the borrower’s monthly gross income when approving a mortgage loan. A borrowers PITI should generally be less than or equal to 28% of their gross […]