Contact MargaretCrofton Homebuyer Asks “What’s Next?”
January 20th, 2012 Categories: Questions and Answers
Crofton MD Real Estate Q&A
Q. 
Now that my contract on a home has been accepted, what’s next?
A. That’s a question shared by many first-time home buyers, and even some people who have previously purchased a home. Every transaction is different, so the list may vary from one house to the next, but this will give you a general idea what to expect, including information you will receive and things you must do:
CONTRACT TO CLOSING CHECKLIST FOR HOME BUYERS
- Good Faith Estimate – The lender’s estimate of your closing costs. You may have received this from your lender already. If not, you will receive it shortly. The Good Faith Estimate (GFE) will outline your closing expenses from the lender, title company, and other third parties such as any condo or HOA association. When you receive this, please send a copy to me so I can review it and suggest to the lender any changes unique to your contract.
- Appraisal – The appraiser’s opinion of the property value. Hopefully the appraisal will come in at the sale price agreed by you and the seller. If the appraisal is low, we will have a problem: Either you will have to come up with more cash or the seller will have to drop the price. Please pray to the appraisal gods, cross your fingers and toes, and carry your favorite good luck charm in your pocket until the appraisal comes in. Appraisals can be very unpredictable in this market.
- Loan commitment – Final loan approval, based upon receipt and review of all required verifications, including a satisfactory appraisal.
- Postal Service – After your loan commitment is in hand, you can start notifying your credit card companies and others of your new address and the effective date of your move.
- Moving Arrangements – After your loan commitment is in hand, you can finalize your moving plans. (Don’t assume you can’t afford professional help because local moves are probably less expensive than you expect.)
- Home owner’s insurance – Required by the lender to protect against expenses incurred due to fire and other hazards. Check with your family and friends to find out which insurance company and agent they use and why… but make your own decision based on comparison shopping for cost, benefits AND services. A policy must be paid a year in advance and a copy provided to your lender before they will release your loan proceeds to the title company. At closing, the lender will collect an extra two months of insurance premium, and 1/12 of the annual premium will be part of every monthly loan payment so the lender will have enough to pay your insurance next January.
- Utilities – Contact the utility companies prior to closing. The Settlement Notice I send you will include a list of them and their phone numbers.
- Pre-Settlement Inspection – We will schedule this three-five days prior to the scheduled settlement date, and confirm the day and time a week earlier. The purpose of this inspection is to make sure the property is in the condition you expect, that all the appliances are in working order, and the home inspection repairs have been completed satisfactorily.
- Closing funds – A certified or bank check for the amount due from buyers at settlement. The good faith estimate from your lender will have this amount, but you should contact the settlement company to find out if anything has changed before you go to the bank for your closing funds. (Their contact information will be on the Settlement Notice I send you.)
- Settlement – Settlement is when all the final paperwork is completed and all the money changes hands, other than a few items paid outside closing (POC) such as your insurance and lender charges, if any. I will provide you with a Settlement Notice that includes the date, time, and location of closing, contact information for the settlement company, and a checklist to help you prepare for settlement.
- Happy Ending – When you walk out of settlement, you will hold the keys to your new home in your hands. Congratulations!
If you have any questions about the home-buying process, feel free to contact me. No cost or obligation, of course.
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Crofton Sales Climbed 37% in December 2011
January 14th, 2012 Categories: Communities
No matter how you look at it, sales were UP in Crofton, Maryland, last month. Twenty two homes sold in December 2011, compared to just sixteen in the same month of 2010 – a 37.5% increase. December sales were up 22.2% in the 21114 zip code from eighteen during November 2011. There were seventeen homes sold during October 2011. Clearly this trend is going in the “right” direction!
“Balance” is the barometer I use to evaluate the Crofton real estate market and predict its short-term future direction. This is done by determining whether new sales and new listings number about the same. (If new listings are double the number of new sales, for example, it’s a bad thing for sellers and a good thing for buyers.) New pending contracts in December and new listings were very much on balance: fifteen new listings vs. fourteen new pending sales.
Crofton home sellers and buyers can both find something to like in the December real estate report, as balance seems to be returning. Could we see a “normal” real estate market in 2012? I hope so.
If you’re a statistics junkie and want more details about the Crofton real estate market, I’ll be happy to share it with you. Just give me a call for the latest information.
P.S. Watch for my article on Crofton real estate in The Washington Post. I’ll post a link on my Facebook business page when it’s published so you don’t miss it.
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Do You Know a Military Family in the Crofton Area?
January 13th, 2012 Categories: Real Estate Information
If you know any Crofton area military families, please share this with them. The information may apply to them or someone they know.
Many military families have avoided severe financial hardship and loss by using the DoD HAP Program when military orders forced them to relocate at a time their home value was less than the outstanding home loan balance In fact, the program had paid 4,825 applicants a total of $725.5 million, as of February 23, 2011, to help fill the gap between the housing debt and home value of military home sellers at the time of sale. Unfortunately, HAP had a backlog of 4,897 eligible applicants at that time.
Holly Petraeus said, in the Stars and Stripes, that “the extra $550 million Congress appropriated to expand HAP has been used and no more military families are getting that special help.“ As head of the Office of Service Member Affairs in the new Consumer Financial Protection Bureau (CFPB), she probably knows what she’s talking about – but I sure hope she’s wrong, and so do the many military families with applications currently pending (not to mention all the “eligible” military families who haven’t yet applied for HAP benefits).
Worrying about financial devastation is the last thing military personnel and their families should be worrying about, and HAP has helped to resolve this concern for many families. I think we all owe it to them to help get out the word that they have an opportunity until January 23, 2012 to comment on the IG report on DoD HAP. Let’s help make the response overwhelming, so the Feds know how many people are impacted by the DoD HAP Program.
If you or someone you know has PCS orders, I’ll help you find out if you’re eligible to use DoD HAP benefits for selling your home in the greater Crofton area. Military personnel who are NOT eligible for HAP can contact me to find out if Fannie Mae’s six month military forbearance program, the Home Affordable Foreclosure Alternative (HAFA), or the VA Compromise Sale may be good options.
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Babies in Bloom at Crofton Library
January 11th, 2012 Categories: Community News
Babies under two are invited to Babies in Bloom on Saturday, January 14, at Crofton Library . It will be a fun half-hour of stories, songs, rhymes and fingerplays for both the babies and their caregivers, designed to stimulate early infant development. There is no cost, plenty of parking… what more could you ask for?
Other events this month include Family Game Day from 2–4 p.m. on Tuesday, January, 24, when school is closed for elementary and middle school students.
Then, on Wednesday, January 25, there will be an e-Reader Workshop at 7 p.m. This is a great opportunity for some expert help learning to use the Kindle, Nook, iPad or other eReader you got for Christmas.
Crofton Library is located at 1681 Riedel Road, Crofton, MD 21114. Regular hours are Monday-Thursday 9–9, Friday and Saturday 9–5, closed on Sundays.
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Bowie Area Year-End Real Estate Closings
January 9th, 2012 Categories: Market Updates
3–Year History of Bowie MD Real Estate Sales
As we begin the new year, it’s always good to reflect for a moment on the year behind us. I like to put that reflection in perspective by comparing it with two previous years:
North Bowie (20715) had 290 closings, the highest number in three years, with 216 in 2010 and 250 in 2009. Hopefully this trend will continue so the inventory of 79 homes currently for sale will drop consistently each month of 2012.
South Bowie (20716) had 201 closings, the lowest number in three years, with 241 in 2010 and 213 in 2009. There are 77 homes for sale in this area, as of 1/5/2012.
West Bowie (20720) enjoyed the highest number of sales in three years, but just barely, with 287 in 2011, 286 in 2010 and 274 in 2009. 101 homes are on the market now in this zipcode.
Southwest Bowie (20721) held its own in 2011, with 268 closings compared to 271 in 2010 and 254 in 2009. There are 86 homes currently for sale in this area of Bowie.
What does all this mean to you?
Home Buyers: With so many homes on the market, you should be able to find a seller who is willing to compromise on price or pay some of your closing costs. With low interest rates still available, condtions are perfect for you to buy your first home or move up to a bigger/better Bowie home.
Home Sellers: It’s still competitive for you, so you will have to entice buyers to your home with special incentives like closing help. Once you get them in the door, your home needs to be in top showing condition. And, of course, nothing sells a home like pricing it right for the market. The bubble years are gone, and there’s no point in waiting for 2005 home prices to return. It’s not likely to happen any time soon.
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