If you watched CNBC today you likely heard "Bond Guru" Bill Gross comment on interest rates.  His prediction is that rates will continue to fall, likely as low as 4%’s.  1% reduction in rate is the equivalent of a $10,000 reduction in price.  So homes will be slightly more affordable.  The big question is whether buyers who are taking advantage of the market will wait after hearing this news.

The bottomline should require you to ask these questions:

1. Why am I moving?
2. What is my motivation for moving? (yes ask it again)
3. Why do I NEED to buy?

If you are buying investment property then there might be a reason to pause.  If you are renting, you should have already bought something.

Here’s more from the interview:

"The mortgage rate will come down another 50 to 100 basis points," Pimco’s founder and chief investment officer said. "That’s basically what the government needs. They need a 4 1/2 percent to 5 percent 30-year rate in order to support home prices and, yes, to encourage refinancing and the process of reliquification within the economy. "

His advice: "[OWNERS] Don’t refinance yet. "

Purchasers on the other hand should move forward, especially, first time home buyers who should take advantage of the $7,500 Tax Credit while it lasts.

Some time next year, he sees stabilization coming to the economy, and lower mortgage rates are an essential part of that process.

One of the most important steps in the home-buying process is being pre-approved for a home loan. Many buyers apply for a loan and receive approval from a lender BEFORE searching for a home. This is called “pre-approval.”Why is pre-approval important at the beginning of the home-buying process?

• Pre-approval can cut days or even weeks off the closing, because the lender has already conducted its credit analysis and approved you for a mortgage.
• Pre-approval strengthens your offer and negotiating position. A home seller will often choose to accept an offer from a buyer who is pre-approved for a mortgage over one whose financial picture is still in question.
• Pre-approval will determine your price range and narrow your search parameters. Based on your down payment and that pre-approved mortgage amount, you will know how much you can afford before you even start looking for a house.

There is also a significant difference between buyers who are merely “pre-qualified” and those who are pre-approved.

Pre-Qualified Buyers - are those whose lenders have determined how much they can borrow based only on information the buyer has provided to the lender. Nothing has been verified to determine the buyer’s true creditworthiness. The buyer still must fill out a loan application and go through the lender’s approval process.

For buyers who have been pre-approved, the lender has already done a credit check along with verification of employment and deposit. The lender’s pre-approval is a commitment to loan the buyer up to a certain predetermined amount. The only piece missing is the lender’s appraisal of the home to confirm its value.

Contact me when you are ready to purchase your next home. And let me know if I can provide any additional information about pre-approval or financing options.

Buying a home in Georgia is different. Sure, you’ll likely get more home for the money vs most places, but the real difference is in the buying process altogether. If you are like most people reading this article you are either out of state (outside of Georgia) or came from another state. In fact, the reason Georgia is consistently on the top growth states is the influx of "transplants" to the city.

Most people relocating will notice the differences immediately. Whether it’s odd combination of zoning laws in different counties or the unnerving truth that most homes don’t have swimming pools and newer ones have no land, people from out of state usually still miss the boat.

So what am I talking about?

1. Realtors - In Georgia we have a legal responsibility to look out for our client’s best interest. This supersedes representing the seller. So although the seller pays for the buyer’s agents in most cases, the real estate agent must represent the buyer’s best interest to the fullest. (New York & New Jersey are not this way)
2. Foreclosure - Georgia is a non-judicial state. So foreclosures can take as little time as 30 to 60 days. You don’t pay, you don’t stay… for long at all. (compare CA at 6 to 12 months for a foreclosure hearing)
3. Mortgages - Did you know there are certain zip codes that lenders don’t like? Well, chances are if you have a mortgage broker not in Georgia, they don’t know that either. It’s important to have someone local because…
4. Closing Times - In Georgia, it’s common for offer to closing to only take 30-45 days. Compare other states that have "dry closings" that could take up to 6 months.
5. Due Diligence - Here’s one where Georgia joins most of the other states. Due Diligence is called a "free look" in some states. Once it’s over, your earnest money is non-refundable.

Those are just some of the ways that Georgia is different. Sure, we can spot you (you being an out of towner) a mile away, but eventually you’ll get used to the laid back atmosphere and hey, I’m actually in the minority here, as a native Georgian.

According to recent studies, consumers prefer a one stop shop. The Jarvis Team has always done this, but never quite so openly.

Now we are announcing our new Concierge service (with a directory coming out in the new year). If you are reading this and need any services in the metro Atlanta area, don’t hesitate to call me or e-mail. I’ll gladly refer the professionals that have made my business so successful.

Many of these service providers are business owners that I meet with once a week in some cases. This includes (but is not limited to):

• Home Inspectors
• Mortgage Brokers
• Painters
• Pest Control
• Air Condition Repair and Service
• Pool Maintenance
• Landscaping
• and more…

So don’t hesitate to call the Jarvis Team at 770-374-4667 if you need any services in the metro Atlanta area.