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What is Your Real Estate Agent Doing For You?

April 14, 2018 by Jimmy

Thing #2

Establish a financial plan with a trusted local lender.  


The start of the home ownership process is to have a solid financial plan.  Once you have committed to buying a home, your real estate agent will connect you with a Louisville Loan Officer or Mortgage Provider.  In conjunction with Thing 1, Thing 2 is the bases for realistic expectations.

Set a Budget and Prepare for an Offer

Knowing your buying power is crucial in the current Louisville Real Estate market.  Your loan provider will work with you to identify the price range and loan product, which best suits your situation.  They will also give you an estimate for your monthly payment. Just like your home search, there are many options to consider.  

Common Louisville Real Estate Market Terms

Conventional Loan:  A conventional loan is a mortgage that is not guaranteed or insured by any government agency and is typically fixed in its terms and rate.  Conventional loans have the most leverage as they require significant down payments and credit score.

FHA Loan:  An FHA loan is a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for low-to-moderate income borrowers who are unable to make a large down payment.  Due to their federal requirements, there are obstacles with FHA, which can be easily overcome but you lose little leverage in negotiations.

USDA Loan: A USDA home loan is a zero-down payment mortgage for eligible rural and suburban homebuyers. USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture.

VA Loan:  The VA Loan is a mortgage loan issued by approved lenders and guaranteed by the U.S. Department of Veterans Affairs (VA).  This type of loan is typically zero down with higher fees. VA loans have requirements set forth, making sellers obligated to meet.  

Repair Credit:  Credit repair is the process of fixing poor credit standing that may have deteriorated for a variety of different reasons. Repairing credit standing may be as simple as disputing mistaken information with the credit agencies. Identity theft, and the damage incurred, may require extensive credit repair work.

KHC:  Kentucky Housing Corporation invests in affordable housing solutions by offering programs and services designed to develop, preserve, and sustain affordable housing throughout the state.

DAP:  Down-Payment Assistance Program, available through KHC.  KHC recognizes that down payments, closing costs, and prepaids are stumbling blocks for many potential home buyers. Here are several loan programs that can help. Your KHC-approved lender can help you apply for the program that meets your needs.

Hardest Hit Fund (HHF) DAP:  Only available 1- 3 times a year for the Louisville real estate market.  Zero percent interest rate for first-time home buyers. A non-repayable second mortgage for $10,000. Forgiven after five years. Home purchase must be located in Christian, Hardin, Jefferson, or Kenton counties.  New construction properties are not allowed. ​Property has to have been previously occupied. Applicants must meet Secondary Market or MRB Income and Purchase Price Limits based on funding source.

Regular DAP:  Purchase price up to $282,000 with Secondary Market or $253,800 with MRB.  Assistance in the form of a loan up to $6,000 in $100 increments. Repayable over a ten-year term at 5.50 percent. A DAP of $6,000 over ten years at 5.50 percent interest would equal a payment of $65.12.  Available to all KHC first-mortgage loan recipients.

Affordable DAP:  Purchase price up to $282,000 with Secondary Market or $253,800 with MRB. Assistance up to $4,500.  Repayable over a ten-year term at 1.00 percent. Borrowers must meet Affordable DAP income limits.

Down Payment Closing Cost Assistance

There are many other options available but these are the most common.   If you are not currently ready to buy a home because of credit issues, many mortgage brokers have repair programs to outline what you need to do to be able to buy a home as well as the timeframe in which it will be possible.  The Loan Officer and your agent will work hand-in-hand throughout the entire process. The real estate agent’s job is to find a house. The Loan Officer sets the parameters.

As a buyer, you need to feel confident that your real estate agent has the leverage and reputation to get action out of loan officers in the Louisville Real Estate market.  Regardless of loan product, I cannot emphasize enough to audit your real estate agent’s relationship with lenders who are focused on the Louisville real estate market. The current market in Louisville is competitive, and your offer may be accepted, or not, based on your Loan Officer. If the lender you choose is average or has a reputation of making false promises, your offer will be viewed, lightly.  

Your real estate agent will determine which loan officer is right for your situation. Loan officers typically focus on types of loans, meaning someone who does VA loans may not be the best fit for someone who is a conventional borrower. Your real estate agent will keep you up to date with time lines (offers, inspections, repair request, appraisal, clear to close and closing). A typical loan takes 30-45 days to close once there is an accepted offer.  Your agent will be working with your loan officer during this time to make sure all goes smooth to get you to the closing table.

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Filed Under: Louisville Real Estate, Real Estate Agents, Realtor

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The Jewell Smith Group is a place of relationships and Customer Confidence. Our agents work with clients making the biggest financial decision the easiest. It takes trust, commitment, and collaboration to make buying and selling a home more than a transaction.

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My husband and I highly recommend Jennifer and Jimmy Smith, The Jewell Smith Group! They have been a blessing from God, truly. We could call on them at any time, and they would happily answer any questions or concerns that we may have had. They helped us find the perfect New Construction for our family! We can’t thank you guys enough!!! You all will be our lifelong Realtors!!!

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Very helpful and very quick responses! Our house sold in pretty much less than a day! Also, they are great with looking for a house and always willing to meet up!

Molly Laws Mershon
 

You'll find professional, caring individuals here that want to listen to what you want to achieve then define what is possible in today's market. Great people to deal and very detailed oriented who will guide you in buy / sell your home. Make sure you consult with Jennifer and Jimmy when you feel it is time to buy / sell.

Nick Ellis
 

Great team to work with! They have helped us buy and sell land and houses over the last 7 years! We have referred multiple friends! Love them!

Lindsey Shapuras-Graves
 

Jimmy did such a great job finding my daughter a great starter home! Such an easy experience

Sondra Apanewicz
 

So this just happened! This week I sold my very first house and purchased my new home. It was a long processed but God is more than faithful and surpasses my wildest thoughts and dreams. I am so undeserving but he continues to shine his light on me and I am more than grateful! Here’s to new beginnings... The Jewell Smith Group

Whitney Hodge
 

I was referred to Jimmy & Jennifer through my mom. They were there every single step of the way. No matter what they were doing they made sure to answer my call and reassure me everything was going well. They found me my home on the first day hunting. They got the price lowered, got the seller to pay closing costs, and had them repair everything that came back on inspection. Jimmy & Jennifer are a great team and amazing at what they do. I would definitely recommend to anyone house hunting or looking to sell. They make it less stressful and put some fun into it. They even purchased me 3boxes of diapers of closing day. I can't thank you enough for all you have helped me accomplish this past month! I will definitely be back when it comes time to sell and find a bigger home!

Ashley Apanewicz
 

Beautiful - this is an amazing transformation! We lived in this house for ten years back in the 80s-90's. (moved out 20 years ago)

Wayne N Carolyn Arnold
 

I can't say enough about Smith Reality!!! Jennifer went above and beyond in helping us sell our home last year and our parents home, recently, within 24 hours!! She's quick to answer calls and any question you may have! Very easy to talk to as well! Don't hesitate to contact her with any real estate needs - she's your girl!! Thanks again Jennifer, for everything!!

Melissa Blakeman McGrath
 

By far the best! Highly recommend! The professionalism, hard work, dedication and commitment of Jimmy and Jennifer is second to none!

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This team helped us find our home very quickly! They were extremely helpful throughout the entire process which helped us to relax without the stress. I'm thankful for this team and all of their support!

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I HIGHLY recommend The Jewell Smith Group if you need a motivated Realtor. They will never let you down!! Jennifer sold my parents home within 24 hours. Thank you guys for everything, I cant thank you enough!! You guys are AWESOME!!

Tammy Goodlett
 

Loved our experience with Jennifer, my husband and myself were first time home buyers, and she made it super easy! Never complained about the 5 million questions I had and was always on top of everything! Will use again if we move!

Casey Collett
 

I highly recommend the The Jewell Smith Group. Jennifer was very knowledgeable and helpful throughout the entire process of selling my Mom and Dad's house. Thanks Jennifer for all you did for me.

Sharon Lowen Mudd
 

Jennifer did an amazing job selling my first house...it sold in 10 days for more than the original asking price! Would highly recommend!

Stephanie Smith
 

We absolutely loved working with Jimmy Smith i have bought and sold a lot of homes over the years and this was my best experience of all. I would give the The Jewell Smith Group a A+ (Awesome Team Work)

Dean Johnson
 

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