Archive for the 'Home Buying Process' Category

After many months we are happy to congratulate the Rodriquez/Zuniga family on the purchase of the FIRST home! During a time that has proven challenging in the lending industry Carlos Alvarado and Dave Clem at M&I Bank worked hard to help this family buy a home that they loved and that would cater to their big family dinners, great parties and that place they can call home.

4310 Sentinel Pass is just south of the beltline off of Seminole Highway and features four bedrooms, two bathrooms and 1,908 square feet. On the market for 41 days it was listed for $219,900 and sold for $200,000 in July 2011.

Thinking about buying a house? Check out our buyer tips and contac Carlos Alvarado for a consultation today, 608.438.6757, carlos@thealvaradogroup.com!

Military families are well aware of how tiring it can be to move often. With military installations scattered across the country, these families get to see a number of great cities; however, finding a place to call home delivers a good feeling and living in the Midwest provides a central location, so military families are never too far from friends and family. Madison, WI serves as a great place for service members and veterans to call home and can be a very affordable option, especially when they use a VA loan to finance their home.

The VA loan program, created in 1944, is unmatched in the benefits it provides to service members and veterans. Unlike any conventional loan, VA loans in Wisconsin allow qualified homebuyers to finance 100 percent of a home purchase without paying anything down. Any conventional home financing option comes with a down payment, some as high as 20 percent, which cuts into the purchaser’s savings. VA loans also offer a high loan limit in Wisconsin, which means homebuyers can fully finance their home up to $417,000 without putting a penny down.

Conventional loans’ monthly payments can be costly, in large part because of private mortgage insurance (PMI). This monthly charge does not exist in the VA Home Loan program, thereby reducing military homebuyers’ payments each month. In addition to lowering the payment, VA loans offer negotiable interest rates. VA-certified lenders are happy to reduce interest rates on Wisconsin VA loans because the VA backs up to 25 percent of each loan. Other benefits to Wisconsin VA loans include:

• No prepayment penalty
• Lower closing and concession costs
• Capped interest rates for active duty members
• VA Streamline, a way to refinance and lower interest rates
• More lenient qualifying standards than conventional loans

Eligibility depends on discharge and service history. Veterans with a dishonorable discharge are ineligible for a Wisconsin VA loan. Honorable or injury-related discharges are permissible. Military homebuyers who may qualify for a VA loan fit one of the descriptions below:

• While on active duty, military members who served for 90 days during wartime or 181 days during peacetime.
• Reservists and National Guard members who served for at least half a dozen years.
• Active duty personnel who meet the service requirements above.
• Spouses of service members who died in the line of duty or because of a service-connected injury.

Completing a Certificate of Eligibility (COE) is the first step in obtaining a Wisconsin VA loan. COEs are available through the VA or from a VA-certified lender. The latter is available to answer any questions about VA loans in Wisconsin.

Guest post by Matt Polsky with the www.vamortgagecenter.com and the www.vabenefitblog.com.

There are many lenders in the area that can help with your VA loan. Please check with your preferred lender to see if they can help or email Matt Polsky for more information at mpolsky@vamortgagecenter.com.

Great Home Buyer classes for people looking to buy in the Madison WI and Dane County areas..and for FREE?! Space is limited so please call Project Home at 608-246-3737 for more information or to register.

Classes will be held Tuesday July 12, 2011 AND July 19th, from 6:00 pm to 9:30 p.m. Homebuyers must attend both sessions in full and a 1 hour counseling session to be scheduled individually. Classes located at Project Home’s Training Center, 1922 S. Stoughton Road Madison WI. 

The First Time Home Buyer Education classes offered by Project Home and GreenPath, Inc. allow first time home buyers to learn about homeownership in an environment that encourages questions and protects the potential home buyer from being solicited. They learn about the pros and cons of home ownership, money management skills, credit issues, how to choose a realtor and lender, down payment assistance programs, shopping of a home and obtaining financing.

We began this partnership in April 2011 and in the first 3 months of classes we have had 67 individual participants in 50 households. We are reaching the populations targeted – 96% are first time homebuyers and approximately 74% are at or below 80% of County Median Income and therefore may be eligible for most down payment assistance programs.

To receive funds for most down payment assistance programs, potential homeowners must complete education and/or counseling. This program is designed to meet the National Industry Standards for Home Ownership Education and Counseling created by the National Advisory Council of NeighborWorks® America. Our course is 7 hours of face-to-face group education and 1 hour of 1-on-1 counseling.

The Housing Center is a joint venture between Project Home and GreenPath Debt Solutions to expand and sustain affordable home-ownership in Dane County. 

Project Home is a local non-profit organization offering help to Dane & Green County residents for the last 40 years. Project Home’s mission has been to improve the quality and affordability of housing for low-to-moderate income residents. With the rising cost of housing, utilities, and building materials, it is difficult and expensive to tackle the repairs that all homes need. Project Home provides services that will improve homeowners’ comfort, safety, and reduce energy bills.

GreenPath Debt Solutions is a nationwide, non-profit financial organization that assists consumers with credit card debt, housing debt, and bankruptcy concerns. Our customized services and attainable solutions have been helping people achieve their financial goals for 50 years.  The Madison office has been serving local customers for 12 years.  Ellen Bernards has been a housing counselor and housing educator for the last 7 years and was the 2010 recipient of the National Foundation for Credit Counseling’s Individual Counselor of the Year award.

This information provided by Ellen Bernards, GreenPath Debt Solutions. Thank you Ellen for all you do!

Near East side of Madison now offers a corner condo listed by Alvarado Real Estate Group on the 2nd floor right in the heart of Schenk’s Corners in the Atwood neighborhood. This is a great place if you are looking for convenience, walkability and a sweet place to call your own. This condo association is made up of 18 units. Each building has an entrance to 4 units creating a small knit community. Enjoy an open floor plan with natural sunlight and a deck surrounded by mature trees. Large walk in closet, large bathroom, huge storage area. Move in ready and condo fees are only $175/month. 

• 1 BR, 1 BA, 737 Sq. Ft.
• 2nd Floor garden-style condo
• exterior parking included
• For current price and more photos visit the Alvarado Group MLS Data page.

Amoth Court, Madison Condo Features

• Surrounded by mature trees.
• Walking distance to all the Willy Street / Atwood hotspots.
• Unit completely remodeled in 2005 with new appliances, flooring and mechanicals.
• New siding on all buildings in 2010.
• New roof, 2010.

Near East Side Neighborhood Features

• Just blocks from Lake Monona
• Vibrant, healthy community living
• Award winning restaurants within walking distance
• Local grocery shopping: Willy Street Co-op, Jenifer Street Market
• Great parks close by: Yahara Place Park, Yahara River Parkway, Orton Park, Olbrich Gardens & Park
• On the Capitol City Bike Path
• Walk to Schenk’s Corners

This property brought to you by Sara Alvarado, Listing Broker – Alvarado Real Estate Group. For a private showing please contact Sara at 438-5005 or sara@thealvaradogroup.com.

Saving for a Down Payment

While Madison WI’s real estate market presents challenges for many, it still remains an optimal market for first time home buyers and investors. Reasonable home prices, a healthy inventory (search Madison homes here) and still low interest rates create a winning combination for those looking to make the leap from renter to owner. Many of the Alvarado Group’s featured listings are a perfect fit for first time home buyers.

As a result of tightened lending standards, however, securing a healthy down payment is even more important than ever. The days of zero-down loan programs are a thing of the past and more money on the table upfront can mean a faster approval for your loan and, perhaps, a better rate.

While you should be sure to leave some cash reserves in place to handle unexpected costs associated with your new home, there are several steps you can take to start building a sizeable down payment. Here are some worthwhile suggestions:

Set up an automatic savings plan

Every financial advisor will tell you that when money comes directly out of your paycheck and into a savings account before you even receive it, you will hardly notice the difference. For most, this was money spent on mindless discretionary purchases, anyway, from a daily latte to random online shopping — chances are, you won’t miss it at all.

Sell something

You might have a high-ticket item in your possession that you really don’t use or need — perhaps a boat, motorcycle or even an extra big-screen T.V. Cashing in any collectibles or assets can free up funds to go directly into your down payment savings.

Liquidate investments

Liquidating stocks, mutual funds, savings bonds or other investments can also help. Cashing in any extra assets will only add to your growing down payment sum.

Look into government programs

Talk to your WI real estate agent or mortgage professional to see if you may qualify for a special home buyers program. For example, HUD’s Good Neighbor Next Door program offers teachers, police officers, firefighters or other public servants extreme discounts on homes in certain neighborhoods.

Don’t be afraid to ask

If there is an event coming up in your life that friends and family will most likely get you a gift for, don’t be shy — let people know you are saving to buy a home and would appreciate a check. Loved ones will be more than happy to contribute to this cause. If you’re fortunate enough to receive a very sizeable gift, however, let your real estate agent know; lenders may want to know how your down payment was funded in order to make sure you can handle monthly mortgage payments on your own.

These suggestions are just the tip of the iceberg. Please contact the Alvarado Group team for more detailed information about securing a down payment, and be sure to share these ideas with others (real estate tips via Twitter) you know who may soon be making the move to homeownership!

Congratulations on your new home!

JUST SOLD! This 5 year new home was not easy to sell though. On paper it looks like an amazing deal: 3 bedrooms, 2 full baths, built just 5 years ago and the back yard borders a large park area/soccer field all for an asking price of $169,900. But with so many homes for sale in this Madison neighborhood the objection to the floorplan was constantly noted by potential buyers along with the lack of storage. Selling a home in today’s market is more than just pricing it right. It is important to present the home in its best light and to promote it to a targeted market.

In a popular Madison area neighborhood on the Southeast side, this split level home has a living room upstairs, wonderfully vaulted ceilings, kitchen, dining area and a master bedroom and master bathroom. The lower level has 2 bedrooms a full bathroom and the mechanical room (with some space for storage). Understanding and listening to what Buyers really want takes skill and patience. What did buyers object about this great home? They want all 3 bedrooms on the same floor. They want the master bedroom to provide a bit more privacy (it was a negative that it was directly off the dining/kitchen area). Buyers want storage. They want their basement to provide storage and this home had a lower level that was completely finished which cut into storage space. Buyers also want a family room. However, when you get into a lower price range you find that buyers make concessions. The Buyers that purchased this home loved the fact that this home was move in ready with neutral and warm paint colors, nice window coverings, newer appliances and didn’t mind the floorplan. The 2 car attached garage gave it the storage they needed (coming from a rental with no garage) and the proximity to the green space in the backyard was a huge bonus for them. At a final sales price of $163,500 this home was an amazing opportunity for the Buyers. 

There is give and take in buying a home on a budget.

The Buyers love their new home. The Sellers are relieved to finally move on to new places.

And we loved making it happen. Our team of Realtors are here to help Sellers understand the complexities in selling a home right now and planning their future real estate moves. The Alvarado Group team has trained agents that specialize in helping Buyers understand what their needs and wants are in their next home and the best way to get there with the least amount of added stress to their already busy lives. We love helping our clients (and from what we hear from them, they feel the love too!), we love engaging with the community and we are passionate about a strong local economy. We don’t just have a mission, we live our mission.

We had a listing with an accepted offer of $157,000. One week prior to closing we had to amend the price to $155,000 because that is what the appraisal came in at. Result: a successful closing. Sellers were prepared for potential issues with appraisals and accepted the position they were in to adjust the price. Buyer was happy. Sellers were happy that it didn’t kill the deal.

We worked with a buyer on a foreclosure that had an accepted offer of $155,000 – the appraisal came in at $172,000. Result: a successful closing. Happy buyers. I’m not sure the bank cared.

One of our listings got an accepted offer for $274,000. It was appraised at $258,000. Result: that appraisal killed the deal. Unhappy Buyers. Unhappy Sellers.  

We are in a different market. Prepare yourself and your home properly!

Not a good candidate for an FHA loan

10 Ways to Prepare Your Home for an Appraisal:

 1.  You only get ONE chance with the appraiser. Make sure your home is ready because not only are first impressions important, but the appraisal can affect the outcome of your sale. Take this part of the home selling process very seriously.
2.  Get your home in good condition. Be sure to trim the lawn, clean out and garage, repair cracked windows or torn screens, check for leaky faucets and secure gutters and down spouts before your appraisal. Basically get your home in the best showing condition you can. No longer are the days of drive by appraisals. FHA appraisers have to complete a different set of inspection forms and if there is chipping paint, missing handrails or evidence of pests (for example), the lender may require repairs done to comply with the FHA lending regulations. Not all repair items are part of inspections – some items come up as part of financing requirements with FHA loans. Talk to your agent about what to expect.
3.  Get organized. Put together a checklist that will help you get ready for your appraisal.
4.  Be flexible when scheduling the appointment. Don’t delay it. Work with their schedule.
5. The appraiser will need approximately 30 minutes to one hour to complete the inspection phase of the appraisal process, which includes: exterior photos of the front and rear of the home and a photo of the street in front of the property; measurements of the exterior of the home, garage and any outbuildings; a walk-through inspection of all rooms and levels of the interior of the home, including the basement.
6.  Provide marketing materials and list of improvements. If your Real Estate Agent has a booklet with information about ages and dates of mechanicals, appliances and any features that add value to the home, please leave that information out for the appraiser to review. Don’t make them guess how old the roof is.
7.  Point out any amenities that may not be obvious to the appraiser: sprinkler systems, radiant floor heating, security systems, built-in vacuum, energy efficient and green features.
8.  Allow your appraiser access to the entire property, including access to any crawl space or attic areas. This is specifically important for FHA appraisals.
9.  Provide a copy of last year’s tax assessment information.
10.  The first thing appraisers look for is comparables, so be prepared and have a list of recent sales of similar properties in the immediate neighborhood. You shouldn’t have to provide this to the appraiser, that is their job. However, you can prepare yourself by asking your real estate agent to show you at least 4 or 5 comparables that are similar in style, proximity, square footage, age and number of bedrooms. Finding comparables is a balance in science and art.   

Following these steps will go a long way toward making the home appraisal process a bit easier. For more information on the appraisal process and preparing your home for sale, please contact Sara and feel free to forward these tips to your family and friends.

Absolutely sweetest home, incredibly maintained and in move in condition. 2 bedrooms on main floor, hardwood floors, open floor plan from kitchen, eating area to living room and updated bathroom. Kitchen features newer appliances, new flooring, new sink, tiled counters. Lower level finished with amazing detail. Currently used as a family room & 3rd bedroom – great bonus room! Ceiling fans in almost every room, updated electrical, loads of shelving in basement and garage. Beautiful deck, fenced yard. One yr home warranty included.

- 2 BR, 1 BA, 972 Sq. Ft.
- Newly finished lower level rec room
- Beautiful deck, fenced yard
- 1 car detached garage

2645 East Lawn Ct Updates and Features

• New tile floor in kitchen in 2010
• New granite kitchen sink in 2010
• Replaced refrigerator in 2009
• Replaced stove in 2006
• Replaced washer and dryer in 2003
• Added deck in 2003

Madison’s East Side Neighborhood Features and Highlights

•  Walk to area restaurants, Famous Ella’s Deli, shopping & Walgreens
•  Easy commute access to Downtown or Aberg to Stoughton Road
•  Close to the bike path and parks
•  Visit the Hawthorne Library on E. Washington
•  Minutes from Downtown, Capitol & Beltline
•  Walkscore of 68 (pretty good!) at www.walkscore.com

Madison School District Information for 2645 East Lawn Ct.

• Emerson Elementary
• Sherman Middle School
• East High School

keys to your new home

For those that are buying Wisconsin real estate now – there are IMPORTANT insider Buyers tips that you need to know about. It isn’t as simple as shopping around for the best house, writing an offer, and then moving in. You need to know what neighborhood you want to live in, maybe research schools and understand Madison’s short sale and foreclosure market. You need to learn about how market conditions locally will affect your negotiating position. It is crucial to understand the financing process and what the pre approval and loan commitment process means. We also will educate you on the inspection process and how the condition of the home can also affect your financing.

What about closing day vs moving day?

Here are the Top 3 Important Factors to Consider:

Pick a realistic and manageable closing date.

Don’t assume you can change it later. Most likely your offer reads, “Closing shall be no later than ____” and there is a date in the blank spot. You can close earlier, although all parties need to agree but you can’t close later. To close later you must amend the offer. To close earlier, you just need to coordinate schedules and it is not necessary to get an amendment signed by all parties. Sellers have complicated moving schedules as do Buyers so just remember that the closing day you write into the offer will most likely be the day you go to the title company for the closing if all goes well.

Consider Your Lender.

Your lender may be doing all they can to expedite the closing so it will happen quickly and in the timeframe you have agreed upon with the Seller. However, life is not as easy for lenders anymore either. The Buyers lender may be the cause of a delayed closing. It isn’t abnormal for underwriters to ask for more documents even days before the scheduled closing date…which can postpone the closing date. Prepare for the worst and expect delays.

Your moving date should NOT be the same date as your closing date.

If you are the Seller, try to arrange to move out a couple of days prior to closing. You can even pre sign documents at a convenient day and time so that you are not rushed the day of closing. You may ask, “Where do I go if I can’t get keys to my new house until I close on my current house?” There are a couple of creative ways to plan a different moving day from your closing day.

• Negotiate a pre closing occupancy on the house you are buying. Now you have a couple of days to move into the next house before you actually close on it. Sometimes the Sellers won’t allow this but may allow you to move your belongings into the garage. And this can be enough to create a smoother transition.
• Stay with a family member or a friend. There are times that moving on the day of closing is what ends up happening. And that isn’t the end of the world. It just takes a lot of planning and optimism.

• Negotiate a post closing occupancy on the house you are selling. If the Buyers that are purchasing your home are in a lease and have until the end of the month to move out, it usually works out just fine to ask them if you can stay in your home a couple of days after the closing date to give you needed time to move into your new home and clean out the house you are selling. Many homebuyers are agreeable to this.

As a Homebuyer, my recommendation is to give yourself a 2 week buffer in planning your move. If you are negotiating a quick close and are hoping to close in 30 days, understand up front that there may be delays so don’t plan to move on closing day. Don’t order furniture or appliances to be delivered on or the day after closing. Don’t arrange for the carpet replacement either. By assuming everything will go smoothly and you will close on time sets you up for frustration if there are delays. And the goal is to set yourself up for a smooth move – not a stressful one. If you give yourself additional time and things go well and you close on time, then you can move things up (and if not, then you wait). But it is easier to have extra time then to cancel and rearrange due to delays.

As a Seller it isn’t as easy. There are risks in selling your home in any market, and especially in today’s market. Again, there is a chance that something could go wrong the day before or the day of closing which would delay closing. As a Seller there isn’t much you can do but prepare to move and continue with your moving plans. But if something goes wrong, it is smart to have backup plans. Make sure your Realtor continues to market your home. Negotiate a reasonable amount of earnest money so that if something goes wrong, you are compensated appropriately for the time and money lost.

Madison WI real estate is not what it once was.

I know I’m not telling you anything new. The media inundates us with a ridiculous amount of doom and gloom when it comes to the real estate market. It is all perspective. There are houses being sold. People need bigger, they need smaller and they are moving out of state. As long as couples continue to marry, and as long as children continue to grow and move on with their lives, there will be a need to move to a different space. There will always be someone that wants to move South or North…you get the picture right?

Sara Alvarado, Real Estate Broker, 608.438.5005

A buyer’s market doesn’t mean that you are out of luck if you have a house to sell. It just means that you may get a better deal on the house you are going to buy then make a ton of money on the house you have to sell. You could wait until the market turns around and then get more money for your current house and pay more for your next house. That is simplifying a decision that is based on many factors.

Please call Sara Alvarado at 608.438.5005 if you want to discuss whether now is the right time for you to buy and sell.