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Knoxville Real Estate: You love 2 Knoxville homes. How do you choose?

November 9, 2012 By Troy Stavros

Knoxville real estate choices of homes you loveSo you’ve found two Knoxville homes for sale that you absolutely love.  In today’s market, because of dwindling inventory, there is serious competition between buyers. How do you quickly choose between them and pick a Knoxville real estate winner? Let’s take a look at what things to evaluate at when trying to decide between two great homes. If they are already similar in price, square footage, and features, then what? The following are some tips we suggested for getting one to rise to the top.

If the specifications on the top few homes are similar, it never fails to go back to the age old real estate mantra..location, location, location. First and foremost you should look at which physical location has better proximity to things that are important to you. Speaking of physical location, perhaps one of the Knoxville homes for sale faces a different direction. Think about where you would like the sun to be on your home during different times of the day. Maybe one is on a busier street and the other is in a cul-de-sac.  After looking at physical location, one should look at the quality of the neighborhood and it’s amenities, crime rates, and the quality of the schools.  This is a big investment, and a place you may be living for a long time, so don’t be afraid to go out and talk with some neighbors to get their opinions and a feel for the overall mood.  Neighbors love to see and talk with who is potentially moving in, and you can garner quite a bit of information from them.

As a Knoxville real estate team that is typically selling these same homes once the buyer needs to move up, down size, or relocate, the 865 Real Estate team always keeps resale value on the forefront of the mind’s of our clients.  Although they are just moving in and excited about a new home, we remind our clients that this is typically their largest investment, so we want to make sure it is a good investment when it comes time to sell. We’ve had more than one client choose one house over another because of our advice as to which would be more valuable when it comes time to sell.  And resale value may not only be decided by which home is in a better neighborhood, it could be decided on which home the buyer can get the better deal.

Filed Under: Home Buying, House Hunters Knoxville

Knoxville Real Estate: Top 3 Things Lenders Love

November 6, 2012 By Troy Stavros

Knoxville Real Estate Top 3 Things Lenders LoveSo you see that the prices on Knoxville homes for sale are rising and you have made the decision to take advantage of the historically low interest rates being offered by banks on Knoxville real estate.  Although the uber-strict lending standards that were suffocating the market are letting up a bit, there are still distinct criteria which you will have to meet to be found credit worthy.

The Top 3 buyer traits that lenders love are:

  • #1  Top Notch Credit History – The very first thing a lender will do is pull your credit report and look for a good, solid credit history.  While perfection isn’t needed, you need to know that should you be approved your credit history will ultimately have an impact on the interest rate you receive.  The better the credit history, the lower the interest rate and vice versa.  Lenders we spoke with said a score of 750 and above will get you the best possible rate and conditions.  720 and above will still get you close the best rate, but other conditions may not be the same.  Scores below 640 will find it difficult to get approved for a loan.
  • #2 Low LTV or Loan to Value Ratio – Because the risk of default is always at the forefront of a bank’s lending decisions, Loan To Value Ratio is a huge part of that equation.  It is one of the key risk factors that lenders assess when qualifying a potential buyer for a loan.  The Loan to Value Ratio is the ratio of the loan amount compared to the appraised value of the home.  For example if you were obtaining a loan of $300,000 on a home appraised for $350,000 the LTV would be 86% ($300,000/$350,000).  You may have heard that most lenders want a 20% down payment.  This is because lenders like to keep the Loan to Value Ratio at about 80%.   Similar to having a above average credit score, if you are able to lower your Loan to Value Ratio, it can improve your interest rate and conditions.
  • #3 Stable Income – This important aspect that lenders look closely at encompasses both your income and debt levels.  They will want to know about your income.  How much it is and how steady it is.  How long have you been working at this particular job.  Once they know what your income situation looks like every month they will look at your debt.  Then they calculate what is called your “Debt to Income Ratio”.  This ratio calculates two different things.  First it takes your average monthly income and compares it to your housing expenses (mortgage payment, homeowner’s insurance, property taxes, homeowners association dues, mortgage insurance).  The second calculates your average monthly income and compares it to your total recurring monthly debt payments (credit cards, car payments, student loans, etc.)  Most conventional financing requires a Debt to Income Ratio of 28/36 (28% of your monthly income for housing expenses/36% of your monthly income for total expenses).

Here is an example:

In order to qualify for a mortgage for which the lender requires a debt-to-income ratio of 28/36:

  • Yearly Gross Income = $48,000 / Divided by 12 = $4,000 per month income.
  • $4,000 Monthly Income x .28 = $1,120 allowed for housing expense.
  • $4,000 Monthly Income x .36 = $1,440 allowed for housing expense plus recurring debt.

Judging from the example above, if you make $4,000 per month, it means that a lender would be unlikely to approve an amount that resulted in your housing expenses exceeding $1120 per month or your total debt payments adding up to more than $1,440 each month.

Knowing these Top 3 Traits before speaking with a lender or looking at Knoxville homes for sale can give you a pretty clear road map of what you can expect.  The key to a smooth Knoxville real estate transaction is eliminating surprises.   The moral of this story is, before you jump into the home buying process, you should have these things squared away: 1) Fix any issues with your credit  2) Save up for your down payment  3) Reduce your debt.

For information on Knoxville Real Estate or for a referral to one of our trusted lenders contact us at 865-999-0925 or EMAIL US HERE.

Filed Under: Home Buying, House Hunters Knoxville Tagged With: credit, Debt to Income Ratio, lenders, Loan to Value Ratio, LTV, mortgage, Video

Knoxville Real Estate: New Mobile Home Search Technology to Buyers

November 2, 2012 By Troy Stavros

Curbcall Knoxville homes for sale search by mobileThe 865 Real Estate team, the leading Knoxville real estate team at Gables & Gates, REALTORS announces the utilization of a new mobile technology that will provide customers with immediate access to information on all Knoxville homes for sale.

The Gables & Gates Curbcall Information System allows homebuyers immediate access to the entire “Knoxville homes for sale” inventory from ANY telephone. Troy Stavros, Broker and Partner with the 865 Real Estate team states, “All that home buyers need to do is call the local number, 865-321-8966, and enter the house street number to immediately hear the details on any home for sale in the Knoxville MLS inventory”.

The description of the property is delivered via telephone in an easy-to-understand sentence format in both English and Spanish 24 hours a day, seven days a week. With the use of their custom Curbcall sign riders, the technology also notifies the 865 Real Estate team that there has been an inquiry on a listing and provides sellers with reports detailing the interest their home receives from potential buyers.


Stavros stated that the beauty of the technology is it’s simplicity, “It’s really simple. First, I’d recommend programming the number into your mobile phone. Then anytime you drive past or see a property you’re interested in, stop, call the number, and enter the house number and first letter of the street name and you’re immediately given all the pertinent details”. Stavros stated that after given the details, additional options are available including receiving an estimated mortgage payment or a text message with the home’s features sent directly to their cell phone or handheld device. For those inquiring with smartphones, they’ll receive a web link that will give them GPS property directions and photos of the property. During all stages of the inquiry the customer is a simple button push away from speaking directly with a Knoxville real estate agent at the 865 Real Estate team should they have any additional questions or want to schedule a showing.

Stavros says if all that wasn’t enough there’s more, “Another really cool part of the technology is if you have the 865 Real Estate team enter your cell phone number and email address in the Curbcall database, we can register you to ensure that no other agent will ever contact you if you use the 865-321-8966 number. The important thing to remember is that this system can be used on ALL Knoxville homes for sale, not just homes listed by Gables & Gates, REALTORS or the 865 Real Estate team. Registering does more than eliminate callbacks from other agents when you are just looking for information. With your email in place, the Curbcall system will send you an email with property information on every home on which you inquire, so it is waiting in your email when you get home from driving around.”

Filed Under: Home Buying, House Hunters Knoxville

Knoxville Real Estate: How a Pre-Approval can eliminate heartache

October 30, 2012 By Troy Stavros

Knoxville real estate mortgage pre-approvalMany buyers who have not been given guidance in the current home buying process believe that the first step is getting online to search internet sites or going out with a Knoxville real estate agent to view Knoxville homes for sale.  If this is the first thing you are doing then you are skipping the most important step. Unlike the past when a buyer with marginal credit could typically qualify for a larger mortgage payment, today’s stringent lending guidelines have completely changed. Unless you have excellent credit and a solid income history, you cannot even guarantee that you will be approved. For those who are approved, there are parameters that can effect your interest rate, as well as the amount of loan for which you qualify. For the most productive experience in buying a Knoxville home there is a specific process that should and ultimately will take place, but straying outside the order of these steps can ultimately cost you time, money, and heartache.

First and foremost a buyer should speak with one or more lenders to get a pre-approval.  You may ask yourself, why is this more important than looking at homes right away.  It is because this step is the one that all of the others hinge on. It tells the buyer how much home they can afford and the price range in which they and their Knoxville real estate agent should be looking. Buyers who fail to follow this first step, may end up looking in a price range that they cannot afford, and ultimately be let down. By viewing homes they cannot afford, they will then have to lower their expectations.  This makes it more difficult to find a home they will like, because they have been exposed to homes with amenities and features above their price range.

Another important point to be made is the difference between a pre-qualification and a pre-approval. A pre-qualification looks only at a buyers credit history and income, and does not guaranty a loan. On the other hand, a pre-approval both looks at AND VERIFIES a buyer’s credit, income, and debt and provides a loan approval within a specific dollar amount with certain conditions and terms. Becoming pre-approved means you can comfortably search for your dream home, knowing exactly how much you can afford.

Filed Under: Home Buying, House Hunters Knoxville

Using Video Previews of Knoxville Homes for Sale for Relocating Clients

October 8, 2012 By Troy Stavros

Knoxville real estate previewsTroy Stavros, lead buyer’s agent at the 865 Real Estate is using video technology to assist both local and relocating clients in searching Knoxville homes for sale. Stavros said, “As the leading listing team at Gables & Gates, REALTORS we were already utilizing live video and professional photography for our home sellers, but have recently found out what a time saver it can be for my clients searching through the Knoxville homes for sale to buy. I was working with a few different families doing a corporate relocation into the Knoxville area when the idea came to me.”

“We are always looking for ways to make the process of buying Knoxville real estate easier for our clients”, commented Stavros. “I witnessed these families on a time crunch, struggling to get into town to look at Knoxville homes for sale while their kids were still in school, or while they were trying to transition from their old corporate position to the new one here in Knoxville. It can be very stressful. My solution was first to get all of their search criteria: from their dream home, to the house with which they could still be happy, to what they absolutely did not want. Second, if they could be in town we would visit some homes so I could observe their responses to what they were seeing. Then if we were unable to find the home on that first trip out, after they left Knoxville, I decided that they could still view homes that fit their criteria through the lens of my video camera. Our Knoxville Home Preview videos were born out of trying to lessen the stress of our relocating clients.”

“I’ve had multiple out of town clients say that they would get the family together to huddle around the computer with popcorn to watch the preview videos, excited to see if it could be their next home. This excitement would oftentimes lessen the negative feelings that some of their children might have felt about relocating.”

The key according to Stavros is the buyer consultation completed with the clients prior to starting the home search. This would allow them to paint the picture of the house they were looking for. It was then just a matter of finding the homes that fit their criteria and eliminating those that did not. Stavros would choose the homes to video as well as take recommendations from the clients as they searched the 865 Real Estate website from their end.

“It’s been a very popular tool for our clients. We have even had clients buy a home, site unseen, because of the video and their trust in that we had a firm grasp on their wants and needs.”

Filed Under: Home Buying, House Hunters Knoxville Tagged With: Knoxville Home Previews, Knoxville real estate videos, Previews of Knoxville Homes for sale, Video

Closing costs in Tennessee are in line with the national average

August 13, 2012 By Troy Stavros

closing costs in KnoxvilleOrigination and title costs on a $200,000 mortgage averaged $3,754 nationwide, down 7.4 percent from 2011, based on Bankrate’s annual survey. Origination fees declined 1 percent; while title and closing costs shrank nearly 12 percent. For the third straight year, New York had the highest closing costs at $5,435, followed by Texas at $4,619 and Pennsylvania at $4,467; while Missouri, Kansas, and Colorado had the lowest closing costs at $3,006, $3,193 and $3,199, respectively.

How do closing costs in Tennessee stack up?

The average closing cost on a $200,000 mortgage in Tennessee in 2012 is $3,747 (in line with the national average) — $1,587 for origination fees and $2,160 for title and closing costs.

Bankrate.com surveyed up to 10 lenders in each state in June 2012 and obtained online good faith estimates for a $200,000 mortgage to buy a single-family home with a 20 percent down payment in the state’s largest city. Costs include fees charged by lenders, as well as third-party fees for services such as appraisals and title insurance. The survey excludes taxes, property insurance, association fees, interest and other prepaid items.

SOURCE: BANKRATE.COM

Filed Under: Home Buying Tagged With: Closing costs, Closing costs in Knoxville, Closing costs in Tennessee

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