1) Professional Advice – When you are speaking to a lender and looking to secure a loan, you will be asked for certain information required for a lending institution to loan you perhaps hundreds of thousands of dollars. To be less than truthful is not only illegal on an application, your lender will be unable to give you the useful information you truly need to make good decisions for yourself and your family. Lenders know the ever-changing guidelines, and they will let you know not only what you can afford, but if you do have extenuating circumstances, they can help you work through them legally. To not avail yourself to their advice, and to deceive a bank of full disclosure, is double folly. Lying on stated income loan application is fraud, and can result in penalties or foreclosure.

2) What’s your time worth? –  Sometimes people don’t provide all the right details to their lender because they don’t want to take the time to gather all their financial information, but if the truth comes out while your loan is trying to pass through operations you may have to start over or go through additional procedures to set things right. If your purchase involves relocation, selling of existing home, etc. this delay could blow up to giant proportions and affect many people in the process.

3) Better service – Even if it is slightly embarrassing, be willing to share your obstacles. Regardless of the circumstances, whether it is it immigration status, several personally owned businesses, poor credit rating, income that is not documented, an ex-spouse that has you financially entangled (just an example), you MUST tell your loan officer of these noteworthy circumstances so he or she can work around (and through) them. Waiting until your documentation is in operations for approval is not the time to suddenly be completely truthful. Last minute surprises lead to underwriting complications and delays, possibly causing you to miss critical deadlines – a costly problem you want to avoid!

4) Lower interest rate – We have found that clients who do a full pre-approval well in advance of writing an offer and applying for a loan, who leave nothing out, supply all materials requested by their lender, and have no “surprise” information appear later, have the smoothest experience getting a loan, at the best rate. They will always try to save you money if your circumstances allow. Even though it feels unnatural to share much of your private information with a stranger, it is the only way to get excellent and true advice when making one of life’s biggest investments.

I have heard of people “doctoring” pay stubs, providing statements with intentionally missing pages, lied about marriages, divorce in progress, sources of funds intended for deposits, and even who have receive suspiciously large sums of money right before closing. In many cases a good lender can work around the challenge once it’s identified, but “surprises” of this nature normally ended up costing the client time, money and aggravation.

Don’t take it personally when you are asked for private information and documentation by a lending officer. They do not ask for personal information unless it is (a) required by law or (b) the policy of the institution. Since the person working on your mortgage cannot change the rules, it is in your best interest to take time to develop some trust, and if you put in an application, do it completely and honestly from the beginning. If you cannot be completely truthful, this may not be a good time for you to buy a home! Your lender has your best interest in mind, and you don’t want to tie their hands when they are the link between you and buying your Dream Home. Pick a reputable lender and you will not be disappointed.

So, when you start the pre-approval process, and you are asked for your personal and financial information, give it straight and you will get better service and save money and time.

Like many of my clients, you might be following fairly responsible spending practices for most (or all) of your adult years, but could find yourself challenged to get the best interest rate on your home mortgage because your credit score is not what lenders consider to be excellent. Too often I come across very qualified new home buyers who end up paying more for their house over time, to the tune of tens of thousands of dollars – all over very simple issues.  Here are some common, but unknown, pitfalls:

1) Opening & Closing Credit Card Accounts: You are ready to buy a beautiful hand tufted oriental rug imported from China, and if you get the Macy’s charge card, you can save 30%. If it’s $1,500, that’s some significant money. You sign up for the card, buy the carpet, pay in full and then CLOSE the account. Why not? You are financially responsible and don’t want too many credit cards out there with your name on it, you think. But, the moment you close the account, your credit score will drop. That’s because you used to have access to, let’s say $ 5,000 of credit you no longer have access to. This increases what lenders call your total credit limit debt ratio, which negatively impacts your score. Thus, you are considered a greater risk.  It’s counterintuitive, but it’s true.

2) Haggling with Utilities: Due to some problem with a utility or the phone company, you have been more than fair and continued to pay your bill on time. But finally you are fed up, you take your complaint to anyone who will listen – in store, by phone, by mail, etc., and then decide that the thousands of dollars a year you give them isn’t worth this. There should have been a resolution by now, so you stop paying a month or so before your agreement is expired.  At this point, the issue is only over $30 (or it could be more), but the problems it will cause you, and the subsequent credit score risk that will follow , will eventually lead to paying exponentially more come mortgage time and for the life of the loan. No matter how right you may be, in the eyes of the credit gurus, it doesn’t matter who was right, they just see the lower credit score. Being so driven to win the battle over $30 can cost you thousands on your mortgage in unnecessary interest. So what’s the lesson? Pay the bill, then fight the good fight for a refund.

And, of course the most obvious …

3) Don’t buy what you can’t pay for: Like eating, it seems simple … eat when you are hungry and stop when you are full. But many people (including myself) often struggle with that simple notion. Except for a house and a car, you shouldn’t finance anything else you don’t have to.  Your credit cards should be used to get points and free simple luxuries you may need (like travel, electronics, etc.) Paying for items with a credit card also helps you track where and how you are spending your money. So use them responsibly, and don’t carry balances over month to month.

A Positive Step to Take: Sign up for Free Credit Report Alerts. This seems like just another thing that will cost you money,  but trust me, it’s worth every penny. For as low as $12 a month you can sign up for a service that will alert you via email and or text anytime your credit score moves, your credit report is pulled, or a new account is opened. This is extremely valuable in preventing identity theft as often times if you can catch it early enough, the impact to your credit and financial life will be minimal.

I’ve advised many clients to practice these steps and come back in six months or a year, and they have saved thousands of dollars … just by buying a home at a time in their financial lives that made the most sense. I hope you do too.

Michael J Tanionos has graciously shared this information with our Blog readers. He may be contacted at michael.j.tanionos@wellsfargo.com

No. 2: Arlington, MA
Percent change: +14.8
Population: 42,422

Every day we hear doom and gloom in the news about real estate values around the country. Recently national data ranks Arlington, MA #2 in the nation!

Known for its good schools, green parks, low crime rate, and affordable housing, Arlington MA home sales have increased for the last four years, according to Boston.com. The median home value in the city was $475,800 in August, according to the Zillow Home Value Index, and the median sale price was $468,200 as of July 31.
Read more from Bloomberg Businessweek…

This is verification for what we in the industry have seen in the past several years; that other areas in the country and the state may have depressed markets, but this area has been a smart place for buyers to invest their real estate dollars. With education, medicine and technology in the Boston area, confident buyers are flocking to the suburbs, seeking the lifestyle and housing that our vibrant town offers. Read the Bloomberg article, and if you would like to discuss any of your real estate questions, email us today. We would love to hear your thoughts!

Great inventory of homes for first time buyers

Multi Family Home near Arlington Center

We’re also excited to sponsor free pony rides behind the Robbins Library. We’ll take complimentary photos and upload them to our website. Check our homepage next week for a link to download and print your photos!

Eddie and Beth run an amazing shop in east Arlington, fixing/selling lawn and garden equipment. Snow blowers too!  They can fix ANYTHING and at fair prices. If you do your own lawn care, put them on your speed dial! 781-646-6190  Minuteman Repair, 111 Mass Ave, Arlington. Bonus: They pick up and deliver (Arlington & Lexington)

— here my lawnmower is on the “operating table” — now it works like NEW!

1) Always sign in and greet the Agent, but do not disclose your inner secrets! If you’re already working with an Agent, put their name down on the Registration sheet. The Agent will NOT contact you.  Listing Agents represent the Seller, so do not reveal your motivation, your trust fund, or how this is the best house you’ve ever seen – save that excitement for private conversations with your own Agent.

2) Be respectful when looking around. This is especially true regarding closets, bathroom vanity, drawers, etc. Think of how you would feel if strangers were going through YOUR house. Though rare, sometimes the sellers are even in the house, so be careful what you’re saying, as you might be overheard. Outside, keep your voice low, as neighbors could be listening to every word. You don’t want to the neighbors to know of your offer even before the sellers!

In the case of exercise equipment or musical instruments, it’s always a “hands off” policy. I have been  horrified to see Open House guests actually turning knobs on the boiler in the basement. This is strictly taboo!

If you are visiting with kids, keep an eagle eye on them. Children need EXTRA attention during Open Houses, where they may encounter things you would never let them touch at home. In the unfortunate event something gets broken, tell the Agent immediately.

3) DO ask questions. If you do not have an Agent, this is a perfect time to chat it up with the Agent, learn what you can about the neighborhood, the house, age of roof, etc. They are not likely to disclose anything about their Client’s motives for moving, etc., but they should share any factual information about the house.  LISTEN to what you hear others saying – their comments, criticism, insights might help you.

4) Take Notes, but not pictures. Pick up whatever material is available to you: listing sheet, floor plans, Sellers Statement of Property, pictures, etc. Do not take pictures with your camera. At one of my Open Houses someone took a video of their walk through the house, posted it on YouTube, and the seller found it – and called me in tears. The video was posted with the real, full address. Talk about poor judgement!

5) Give feedback to your own Agent soon after the Open House. If you have a Buyers Agent, you’ll want to give feedback while things are fresh in your mind. Keeping in touch weekly keeps both of you on your toes and connected about your favored criteria. The more your Buyers Agent knows about what you love and hate (strong words but true) helps them help you. I love hearing my Buyers describe their Dream Home – it helps me envision it so I can help find it for them.

GET ADVANCE NOTICE OF  THE WEEKEND OPEN HOUSES! PLAN YOUR WEEKEND AND SAVE TIME ::: CONTACT ME TODAY to START RECEIVING OPEN HOUSE UPDATES!

Real Estate is my life, but food is a necessity as we work, live and play every day. Thankfully we have some fantastic choices around Arlington!

This will be a regular category of my Blog, and I’ll share my insights as I Eat my Way Through Arlington, MA. I will cover breakfast, lunch, coffee spots, dinners, late-night, desserts etc., although admittedly from my perspective – as a PICKY EATER.

What does this have to do with Real Estate? Its good to know what you can get to eat if you are scoping out a certain neighborhood – so please note that this restaurant is in Arlington Heights, where there is affordable housing both in condos and single family homes, near public transportation and shops, and covering three elementary school districts. This is a hot area, and we’re expecting many exciting listings this spring all around Arlington Heights.

Tonight we ate at La Posada – a relatively new MEXICAN Restaurant in Arlington Heights. Here you will discover authentic recipes guarded and perfected through generations by a Mexican family who loves what they do. Lunch is quick and affordable, dinner is always a special experience, with wonderful specials on weekends. They make their own delicious jalapeño salsa (just spicy enough) and chips, as well as the authentic Mexican dishes on the menu. Tonight we were treated to a flaming flauta (chicken, steak and shrimp with two kinds of peppers, rice, beans and guacamole). I had camarones poblano – shrimp sauteed with garlic, mushtooms, tomatoes, and lime – tequila sauce, over rice.  OLE!

The restaurant does not serve alcohol; most patrons bring their own wine. We had flan for dessert – delicate and ok even when you’re full! Again, grandmother’s recipe. Delicioso!  Very nice ambience, service is pleasant but not speedy, patrons seem happy to make an evening of it (lines can form on weekend nights, so plan accordingly).

La Posada Restaurant – 1312 Mass Ave Arlington  781-316-8300  www.Laposada-Restaurante.com also on Facebook. LIKE them!

This has already become one of our favorite spots. Have you eaten here yet? What did you eat and how was it? Comments welcome!

• When: Wednesday, March 30
• Time: 7 – 8:30pm
• Where: Bowes Real Estate Office – 1010 Mass Ave, Arlington
• Cost: Free!

Packed with insider knowledge of home-buying, timely information about the local Arlington and Middlesex County real estate market, and financing guidance, this is a “how-to” persons dream come true. We’ll cover home-buying in a step by step process, from establishing your Arlington Dream Home criteria, through Financing and pre-approvals, to Open Houses, Offers, Inspections, and on to Closing Day.

Taught by Arlington’s finest First Time Home Buyer Specialists (Realtor and ABR Bija Satterlee from Bowes Real Estate) and Mike Tanionos (Senior Lender, Wells Fargo Home Mortgage), you will discover:

• How to get a “good buy” on your first house or condo in Arlington or surrounding area
• How to identify and find the house or condo of your dreams
• How to get the best Financing and interest rate for your Arlington MA home purchase
• How to get the advantages of having a dedicated Buyers Agent
• How to make your Offer stand out from other Buyers, and more!

We have already seen plenty of buyers scouring the limited inventory of homes for sale in Arlington and surrounding areas like Lexington, Medford, Bemont and Cambridge. NOW is a great time to become a savvy buyer. Register for the March 30 First Time Home Buyer Seminar now. And the best part? It’s free!

Read Testimonials of some of our Seminar graduates!

email bsatterlee@bowesre.com to register for the Seminar. Seating limited, Register Today!

• The TOWN or TOWNS you want to live in  (Arlington, Lexington, Medford, etc).
• The STYLE of house or condo you would like – could be Single Family and/or Condo
• Specify: TOWNHOUSE or TWO-FAMILY or BUILDING COMPLEX
• The NUMBER of BEDROOMS, BATHS (Full and half)
• Yard?  Y / N Basement? Finished or workspace or both?
• Fixer-Upper okay?   Small Projects ok?
• Distance from Public Transportation -  Living Area square footage  /  Lot square footage

Click HERE to download a Dream Home Criteria Worksheet. (Just click on #1 to open)

Get even more elaborate if you like! How many floors, amount of storage, how far from work, what school district, etc.

If you and a partner are buying a home together you should each fill one out – and compare them. Results may be surprising.
If you and your partner have very different views, this will help identify areas where your dream home does NOT overlap, and provide an opportunity to work things out before you get further along in an expensive purchase. After you have done this exercise you will find it easier to locate the home of your dreams. Trust me, I do this for a living!

So get started writing down the description of your Dream Home. And let me know how it goes!

We’re also excited to sponsor free pony rides behind the Robbins Library. We’ll take complimentary photos and upload them to our website. Check the Bowes web site next week for a link to download and print your photos!  (( Bija will be at the Bowes Tent from 11-12:30am ))