What does FHA look for with an Appraisal?

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Content from Dean Hayes, Bay Equity Home Loans

When an FHA loan is being used, the appraiser has two objectives. The Department of Housing and Urban Development (HUD) requires the appraiser to determine the current market value, as with any appraisal. But they also require a property inspection to make sure the home meets HUD’s minimum standards for health and safety.

Note that the appraiser does not replace your home inspection. The appraiser has a duty to report to your lender the comparable value of the home your buying as well as the overall condition of the home. Only a home inspector will do a thorough analysis of the condition of every aspect of your home.

HUD is mainly concerned that everything in the house functions properly and there are no health and safety issues. The basic concept of meeting FHA minimum requirements is that everything must work as it was designed to work.

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What is Title Insurance?

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Choosing The Right Mortgage Lender

Are you ready to buy a new home in 2016? If you are like most people in the United States, it is very likely that you will need a mortgage loan to purchase your new home. Shopping around for a good loan is as important as finding your dream home. Finding the right mortgage lender takes time and research but in the end it could potentially save you thousands of dollars.

Asking friends, family and co-workers for mortgage lender referrals can be helpful but their experience may be limited to just one transaction.¬† Your local¬†Realtor¬ģ¬†should be able to provide you with names of lenders who have proven their ability to offer good rates, low fees and close loans on time.¬† This is crucial especially in today‚Äôs mortgage lending environment with the new disclosure requirements which can prove challenging.

Selecting a mortgage lender should be based on more than just the lowest rate. Gather a few rate quotes, and then follow up with some research and interviews before you choose the lender who is right for you.

Here are some questions to ask a potential mortgage lender:

How long have you been in the mortgage business?  How long have you worked for this particular lender? How many loans have you originated and closed in the last year?

Do you have any special expertise?  Whatever type of loan you are seeking, look for a loan officer with experience in that type of loan. Not all lenders excel in all loan types.

What is the interest rate and APR at ‚Äúpar‚ÄĚ?¬† Asking a lender to quote you an interest rate at ‚Äúpar‚ÄĚ means without any loan fee or discount points included to buy the rate down.¬† This allows you to compare the APR (annual percentage rate) of more than one lender and better judge the true cost of the loan.

What is your lock-in policy? Find out when and how you can lock-in your interest rate.  Does your lender require deposit to lock, is it refundable?  Do they provide you with a written lock-in agreement?  Can you lock your rate by telephone, email or text? How long will your rate be locked for?  What happens if the closing is delayed with regard to your lock-in term.

 Do you work with a lot self-employed borrowers?  If you happen to be self-employed this is extremely important.  The more complicated your tax return is the more vital this is.  How good are they at evaluating tax returns? Believe it or not, there are many loan officers who are not skilled at this.

A good loan officer will get you to the closing table in a timely manner. They will communicate with you throughout the process and make sure your rate lock is protected or extended if need be. When you find a good loan officer you will also be finding a lender that has competitive mortgage rates and closing costs.

Don’t know where to begin looking for a home loan? Let us help you! We have a preferred lender right here in Anacortes¬†who can help you get started. They provide competitive mortgage rates while giving excellent service to our clients.

Finding your dream home in Anacortes or Skagit County is easy with the help of our professional team of full time real estate agents. Let our team guide you in the right direction and show you the difference our 5 Star Real Estate Service can make in buying home in Anacortes and Skagit County. 

Call, text or email us today!

(360) 941-3734

Info@JeanGroesbeck.com

Should I talk to a lender Before Making an Offer?

The first step for many people looking to buy a home is searching what the current real estate market has to offer.

It is not the first step that new home buyers should take, especially first time buyers.  Getting pre-qualified and even pre-approved on a home loan is the best way to get started.

With the excitement of looking to buy the perfect home, forgetting to talk to a lender about a home loan is a common mistake for new buyers. The advantage of completing both of these steps, pre-qualification¬†and pre-approval, before you start to look for a home is that you’ll know in advance how much you can afford. Getting pre-approved for a mortgage also enables you to move quickly once you find the perfect home.

Getting pre-qualified is the initial step in the mortgage process, and most of the time it is fairly simple. You supply a bank or lender with your overall financial picture, including your debt, income and assets. After evaluating this information, your lender can give you an idea of the mortgage amount for which you qualify. Having a pre-approved home loan provides the new buyer with the specific mortgage amount for which they are approved and how much payments would be on a certain loan amount. Also, a pre-approval will give real estate agents and home sellers the proof that a buyer has the ability to secure a mortgage.

The process of getting a pre-approved loan takes time and as a buyer it is the best place to start when searching for a new home. If you are a new home buyer or a first time buyer and would like more information on the home buying process, please click here.

Feel free to Contact Us to answer any questions you may have regarding getting pre-approved for a home loan! We are here to help!  Call Jean Groesbeck at 360-941-3437 or email Jean@JeanGroesbeck.com

809 7th Street Anacortes, WA 360-941-3734

5 Common Mistakes When Buying a New Home

When buying a new home it is easy to overlook pertinent information or important steps in the purchase of your new home. The excitement of purchasing a home can sometimes distract you from the important aspects of home buying process.We are here to assist you in making sure you make the best decisions for a smooth home purchase! Here are 5 common mistakes that are made by home buyers:

1. Making an offer on a home before prequalification.

Being prequalified will make the buying process and your life much easier when making an offer on the home of your dreams. Take the time to speak with a lender before you jump into an offer. Specific questions a lender will ask in regards to income, debt, lifestyle etc. will help determine the price range you are able to afford. It is best to talk with several different lenders to insure you are applying for the loan that is right for you.

2. Not having a home inspection.

We all want to save money today, but making the mistake of not having your dream home inspected now can cost you tomorrow. Qualified home inspections will detect issues that many buyers can overlook, especially when it is your first home. Ask your real estate agent for a referral if you are unsure of who to turn to for a proper home inspection.

3. Limiting your search to  the internet.

When searching for your dream home on the internet, many times homes have been sold or are under contract and the home listing information has not yet been updated. The best way to view active listings and up to date information is through a real estate agent. Real estate agents will have the most recent information and will help you find the home that suits you best. There can also be home listings that are not available to the general public; a local real estate agent is the best source to finding your dream home!

4. Choosing the wrong real estate agent.

Making the right connection with a real estate agent is crucial. It is important to interview different agents (Click here for tips on interviewing agents) to make sure you are hiring an agent that puts your needs before, during, and after the sale. Building a strong relationship with your real estate agent will make the process of buying a home easier for you, if they know what your needs and wants are, they will strive to fulfill!

5. Thinking there is only one dream home out there for you.

The process of buying a home is process of elimination, not selection. The market is growing daily, make sure to keep an open mind to new property listings throughout the buying process. Be sure to ask your real estate agent for a comparative market analysis (CMA) comparing recently sold homes or homes still on the market to the home you are interested in purchasing. (Click here to learn more about CMA) Keep in mind that every home might have a slight flaw and might not match up to your needs and want list, compromise is key, you may need to adjust your list to insure you have you needs met instead of all of your wants.

It is important to not make these most common mistakes when you feel you are ready to make an offer on your dream home in Anacortes or Skagit County. We are committed to serving you, we are here to answer any questions or concerns you may have when making an offer on a home! Let us show you the difference that 5 star service can make in a real estate transaction!

809 7th St Anacortes, WA - (360) 941-3734

Bank of America Offers Relocation Assistance

Bank of America, one of the largest banks in the United States of America, is now offering delinquent homeowners up to $30,000 in relocation assistance if they work with the bank to obtain a pre-approved short-sale price, before submitting purchase offers on new homes.  Bank of America hopes this program will work to encourage distressed homeowners to explore a short sale process  as a practical option for avoiding foreclosure.

In order to be eligible for the relocation assistance payments, homeowners must initiate the pre-approval process with Bank of America by the end of 2012, and close by Sept. 26, 2013. In addition,  short sales that have already started,  but have not closed may be eligible for the program.

This program will be available to homeowners across the United States. ¬†Homeowners ¬†who believe they may be eligible for Bank of America’s short-sale relocation assistance program may contact program specialists at¬†(877) 459-2852.

What Are Your Refinance Options if Your Home Worth Less Than You Paid?

The government has just enacted a revision to the Home Affordable Refinance Program (HARP) to provide refinance option to homeowners but are are looking to refinance with a fixed loan with a lower monthly payment. This program might be a good option if you are not behind in your house payments, have not been able to get traditional refinancing, but have negative equity in your home.

HARP is designed to help home owners get a new, more affordable mortgage.

If you looked into this program previously without success, you might want to check into it again. The original version of HARP had many roadblocks that made it difficult for homeowners to refinance and assisted homeowners with home mortgages with a loan-to-value ratio between 80 percent and 125 percent.

The new HARP program has several “new and improved” features. Borrowers will now be able to refinance regardless of how far their homes have fallen in values, appraisals and underwriting have been eliminated, and many homeowners will be required to get a home appraisal.

There is also a program for second mortgages called the Second Lien Modification Program (2MP),

This information is time sensitive, so please make sure you research your options. The following website is a great resource for property owners.
http://www.makinghomeaffordable.gov/programs/view-all-programs/Pages/default.aspx