I want to go over some information for anyone who is thinking about buying and plans to be getting loans for the purchase. This is important info because with the many real estate market changes the entire process of getting financing has become tougher and you'll need to be ready for what may come up to achieve success when it comes to purchasing the home, condominium or townhouse that you utlimately choose.
You may have been told or read some things on the subject of how the housing market is performing and about the problems in getting mortgage loans to buy homes or condos. It is correct that the market has changed over the last couple years and that getting financing has become more difficult. The best approach for you to deal with this situation if you're thinking about making a purchase in the not too distant future is to get sufficient knowledge to have an understanding of what you might face and to take the necessary actions to get yourself in the ideal possible standing for when you are all set to buy.
Not too long ago I read an article in the Washington Post which discussed five areas of planning if you're going to finance your purchase. The last point is just not something you can do much about if it's an issue however the first four are certainly within your control. The five points discussed in this article are:
" 1. Start by asking to get your no charge credit report.
2. Put together all your personal financial documents.
3. Keep finances simple for no less than 2 months.
4. Document the downpayment.
5. Clearly show a stable job history for the past two years."
There is additional detail on every point in the article and I also would point out that you should most definitely focus on points 2 through 4.
Regarding this same topic, I want to cover an aspect regarding financing which I have discovered of late in my Clearwater homes and condos dealings to be one of the more exasperating parts that you need to be ready for. If you happen to be conscious of this it will not necessarily help it become any less frustrating but you will at the very least be ready for this. What I am talking about is the appraisal.
I have two deals that were both scheduled to close this next Friday (both are condominiums, both are estate sales, both of them require complete remodeling) and both have run into snags on the appraisal.
In the first one the appraiser visited the condominium a couple weeks back but it took until only a few days ago to find out what the appraised value was. I will not go into specifics however some of the delay had been bad communication from the appraiser and appraisal company concerning an issue that the mortgage loan officer could have remedied immediately but was permitted to delay things by days.
When we finally obtained the appraisal this came in $4,000 under the purchase price but when the seller's agent scrutinized the appraisal he noticed some discrepancies that would make the appraisal to come out for less than it should have. Insignificant issues (sarcasm here) such as comparing a condo which has a broad view of the Intracoastal waterway to a condo that has a view of a pond and comparing the interior measurements of one condo to the exterior dimensions of another * but not making any adjustments because of these variations. We now have the appraisal company and appraiser looking at the appraisal in light of these issues but because of the fact that it took them so long to get the appraisal report to us (and then get us an appraisal report which was flawed), we now have had to delay the closing a week.
The second situation is one in which there had been significant problems that came out on the inspection (which includes one which will be a major expense which the seller knew about and failed to disclose) and the buyer hopes to work with the seller on the price due to this situation. Since the condominium could quite possibly appraise below the contract price we chose to wait for the appraisal to look at how that came in since that could have an effect on how we handled the price issue. The appraisal was due on Tuesday but did not come in. On Wednesday the loan officer phoned the appraisal company and they said they would have it that day - but it still did not come in. On Thurs the loan officer phoned the appraisal company and they contacted the appraiser and we were told it would be in that day * but still no appraisal on Thursday. On Fri we were told yet again that the appraisal would be in but still no appraisal.
So now we are two or three days from the due date having to do with inspections issues and now have to address that but without the appraisal it will be harder to know the best way to deal with effectively. And this purchase was also supposed to close this Friday and we will have to get a week extension.
I don't know of any quick solution to this problem and do not assume that this kind of issue happens 100% of the time, however, you should be aware that this can happen and be prepared for this possibly happening to you so you would not get caught off guard if it does. And even though the examples I presented are both for condominiums, this also takes place with clients who are purchasing Clearwater homes.
Finallyl, you should know is that this issue is not really something you should feel hopeless about, when you have a skilled Real estate agent representing you and an experienced mortgage loan officer or mortgage broker working together with you these difficulties will get handled most of the time and you'll ultimately have a successful closing.
You may have been told or read some things on the subject of how the housing market is performing and about the problems in getting mortgage loans to buy homes or condos. It is correct that the market has changed over the last couple years and that getting financing has become more difficult. The best approach for you to deal with this situation if you're thinking about making a purchase in the not too distant future is to get sufficient knowledge to have an understanding of what you might face and to take the necessary actions to get yourself in the ideal possible standing for when you are all set to buy.
Not too long ago I read an article in the Washington Post which discussed five areas of planning if you're going to finance your purchase. The last point is just not something you can do much about if it's an issue however the first four are certainly within your control. The five points discussed in this article are:
" 1. Start by asking to get your no charge credit report.
2. Put together all your personal financial documents.
3. Keep finances simple for no less than 2 months.
4. Document the downpayment.
5. Clearly show a stable job history for the past two years."
There is additional detail on every point in the article and I also would point out that you should most definitely focus on points 2 through 4.
Regarding this same topic, I want to cover an aspect regarding financing which I have discovered of late in my Clearwater homes and condos dealings to be one of the more exasperating parts that you need to be ready for. If you happen to be conscious of this it will not necessarily help it become any less frustrating but you will at the very least be ready for this. What I am talking about is the appraisal.
I have two deals that were both scheduled to close this next Friday (both are condominiums, both are estate sales, both of them require complete remodeling) and both have run into snags on the appraisal.
In the first one the appraiser visited the condominium a couple weeks back but it took until only a few days ago to find out what the appraised value was. I will not go into specifics however some of the delay had been bad communication from the appraiser and appraisal company concerning an issue that the mortgage loan officer could have remedied immediately but was permitted to delay things by days.
When we finally obtained the appraisal this came in $4,000 under the purchase price but when the seller's agent scrutinized the appraisal he noticed some discrepancies that would make the appraisal to come out for less than it should have. Insignificant issues (sarcasm here) such as comparing a condo which has a broad view of the Intracoastal waterway to a condo that has a view of a pond and comparing the interior measurements of one condo to the exterior dimensions of another * but not making any adjustments because of these variations. We now have the appraisal company and appraiser looking at the appraisal in light of these issues but because of the fact that it took them so long to get the appraisal report to us (and then get us an appraisal report which was flawed), we now have had to delay the closing a week.
The second situation is one in which there had been significant problems that came out on the inspection (which includes one which will be a major expense which the seller knew about and failed to disclose) and the buyer hopes to work with the seller on the price due to this situation. Since the condominium could quite possibly appraise below the contract price we chose to wait for the appraisal to look at how that came in since that could have an effect on how we handled the price issue. The appraisal was due on Tuesday but did not come in. On Wednesday the loan officer phoned the appraisal company and they said they would have it that day - but it still did not come in. On Thurs the loan officer phoned the appraisal company and they contacted the appraiser and we were told it would be in that day * but still no appraisal on Thursday. On Fri we were told yet again that the appraisal would be in but still no appraisal.
So now we are two or three days from the due date having to do with inspections issues and now have to address that but without the appraisal it will be harder to know the best way to deal with effectively. And this purchase was also supposed to close this Friday and we will have to get a week extension.
I don't know of any quick solution to this problem and do not assume that this kind of issue happens 100% of the time, however, you should be aware that this can happen and be prepared for this possibly happening to you so you would not get caught off guard if it does. And even though the examples I presented are both for condominiums, this also takes place with clients who are purchasing Clearwater homes.
Finallyl, you should know is that this issue is not really something you should feel hopeless about, when you have a skilled Real estate agent representing you and an experienced mortgage loan officer or mortgage broker working together with you these difficulties will get handled most of the time and you'll ultimately have a successful closing.
About the Author:
Whether you are looking at Clearwater homes, condos on St. Pete beach or a townhouse in Palm Harbor you should start getting as much up-to-date info as you can about what you are going to have to do to be in a solid position for when you are ready to buy.
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