FHA changes

FHA loans are widely used in the DC housing market.  In the last two years, half of my clients have utilized the lending program.  Before 2009, I never had a client use FHA.  Before 2009 there was also 0% down loans.  Oh how the lending landscape has changed! An article in the Post's real estate section does a good job of recapping the recent changes.  I've written about some of these changes like the up front insurance premium.  It was 1.75% but earlier this year it was raised to 2.25%.  The article also includes a summary of upcoming changes.  If you're going to use an FHA loan to finance a purchase, this is a must...
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What the..???

This is 1318 Randolph St, NE which is located in the hot, hot neighborhood of Brookland.  It had SEVEN offers! One of them mine.  It was listed for 254K and it is in very good shape.   Yes, the kitchen and bath needed updated but at 254K, that's doable.  Our offer came in #3 out of the 7.  I should be satisfied but I'm not.  We lost.  Our offer (20% down, conventional loan, almost 40K over list) was strong but my clients have limits.  The winning contract was for over 300K…probably well over 300K.  I suspect it went for 330-350K.  That's 750-100K above the list price.  I could say I'm shocked.  I'm not.  Finding a house in DC in the 250K range is similar to the Nationals having a winning season… almost impossible.  What's been encouraging in the last several weeks is the number of decent houses in this price range.  What's been discouraging is there's always multiple offers.  For me, the most competitive price ranges in the 2010 DC market have been the single family homes between 250-350K and 750-850K.  It fascinating that the most competitive price ranges are on opposite ends of the spectrum but the circumstances are the same.  There isn't a lot of inventory that's good.  When it's good, there's multiple offers.   I missed the height of the market in 2002-2005 when people sometimes made 4-6 offers before they got a contract ratified.  It's frustrating but exhilarating.  I really hate to lose!  I think the Fall selling season is going to be very interesting.  Stay...
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Buying in DC

Purchasing property can be a crazy process.  There's a lot of unfamiliar vocabulary.  You have to become well educated in the language of lending.  I created a cheat sheet for my buyers to help them with the procedures.  So how does one go about the buying a property in DC?   1.  Talk to a lender.  This is the most important part of buying a property.  Financing can be the most difficult step in a purchase.  Your credit has to be good.  You debt to income ratio has to be just right.  It's VERY important it is to know your limits BEFORE you search.  Once you've spoken to a lender and they have all the info they need (bank statements, payment stubs, financial records, your credit, etc.) you’re pre-qualified and ready to start searching.  2.  Find a property.  Discovering real estate that you want to purchase involves looking at listings online and visiting houses/condos/coops.  Sometimes a picture can only convey so much.  It’s wise to visit as many properties as possible to determine what appeals to you.  That can take a day or several months.  3.  Make an offer.   Once you find a property you love, you make an offer.  In DC, we use a Regional Contract and lots of addendums.  The contract, addendums and paper work are 30-40 pages.  It’s very important to review all of the paper work. 4.  Execute the paperwork.  After you offer has been reviewed and ratified, the contract is sent to the lender and the title company.  The title company starts to review the title work.  Their job is to make sure the property is delivered with a clear title.  The lender starts processing your loan.  Meanwhile, you conduct the home inspection and the lender sends out the  appraiser. 5.  Fufill the contingencies.  If the home inspection, appraisal, and financing go smoothly, you go to closing. 6.  Execute final reviews.  Before closing, you do a final walk through to see if the property is still in good shape.  This is also when you check the items that were repaired from the home inspection.  (If any repairs were needed).  You also review the HUD1 (the closing statement) to make sure all your fees are correct.  If everything is in order, you sign the documents. 7.  Complete the documents.  Once all the documents are signed, you're a proud homeowner.  Congratulations! The entire process of making...
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The Murphy Team on Facebook!

Goodness gracious..The Murphy Team has joined Facebook!!  Add us as a friend to keep up with our latest listings, team shenanigans, and happenings in Foggy Bottom/The West End.  I'm so proud the team has decided to join the social networking...
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