What To Do When Your Home Doesn’t Appraise At Its Purchase PriceComments Off on What To Do When Your Home Doesn’t Appraise At Its Purchase Price
Experienced home sellers in Naperville know that reaching a sales agreement with a potential buyer can be just the start of the negotiation process. There are often inspection issues to resolve, among other items.
One particular negotiation point which can present difficulties for both buyers and sellers is when a home’s appraised value falls short of its contracted sales price.
Sometimes, this happens because the home’s price was inflated. Other times, it’s the result of a faulty appraisal.
As a home seller, there are some common appraisal problems of which you should be aware. Here are some of them, and how to seek remedy so that the home sale process remains smooth.
Ignored market conditions
Slow turn-around time
To err is human and appraisers make mistakes occasionally. How you handle those mistakes as a seller can be the difference between a sold home and a canceled contract.
Short Sale : Writing A Letter Of HardshipComments Off on Short Sale : Writing A Letter Of Hardship
A short sale is when a property is sold for less than its remaining mortgage principal balance, and executed as a way for both the existing homeowner and mortgage lender to reduce their respective losses.
Typically, although not always, short sales are reserved for situations of extreme financial hardship; just prior a bank beginning foreclosure proceedings.
Short sales are not automatic, however. Homeowners must often prove the merits a short sale to their lender, which often involves documenting that selling the home for less than its worth is the best and most viable option for all parties involved.
The short sale process starts with a letter of hardship.
To prove your short sale worthiness to the bank, you’ll be asked to submit a cover letter which explains your hardship, and to provide full financial disclosure. You will also need your original purchase contract, a balance sheet of your income and expenses, your asset statements and proof of income, and two years of federal tax returns.
Lenders prefer handwritten letters and are more apt to agree to a short sale for homeowners who may have lost jobs or encountered significant medical bills, as opposed to those who engaged careless spending.
Draft a compelling letter and avoid extraneous details. Be short, be thorough, and be complete.
In addition, note that the following traits can help speed your short sale approval :
Choosing to short sale your home , though, is not something which a homeowner should pursue alone.
The process of selling a home in a “distressed” state is significantly different from selling a non-distressed home. Homeowners selling in a short sale should seek the advice and counsel of an experienced real estate agent.
How To Maintain Adequate Homeowners Insurance CoverageComments Off on How To Maintain Adequate Homeowners Insurance Coverage
In the aftermath of Hurricane Sandy, stories have emerged of homeowners whose hazard insurance coverage was too low to cover the damage to their respective properties.
Unfortunately, this scenario is common among U.S. homeowners, and is not just limited to damage from natural disasters. Homeowners nationwide are often woefully under-insured against catastrophe in its many forms.
Whether you’re buying a home, or own one already, revisit your hazard insurance policy choices and be sure that your bases are covered.
Here are four common components of a homeowners insurance policy :
A little bit of insurance coverage goes a long way when it comes to unforeseen disasters — but only if you maintain proper coverage. Speak with your insurance agent regularly to make sure you’ve never under-insured. Accidents, after all, are unexpected by definition.
Which Is Better : 15-Year Fixed Rate Mortgage Or 30-Year Fixed Rate Mortgage?Comments Off on Which Is Better : 15-Year Fixed Rate Mortgage Or 30-Year Fixed Rate Mortgage?
As a home buyer or refinancing household in Fairfax, VA , you have choices with respect to your mortgage.
You can choose a loan with accompanying discount points in exchange for lower mortgage rates; you can choose adjustable-rate loans over fixed rate ones; and, you can choose loans with principal + interest repayment schedules or repayments which are interest only, as examples.
For borrowers using fixed rate loans, there’s also the choice between the 30-year and 15-year fixed rate mortgage. Each has its positives and negatives and neither is “better” than the other.
Choosing your most appropriate fixed-rate term is a matter of preference and, sometimes, of budget.
The 15-Year Mortgage
The 30-Year Mortgage
Which One Is Right For You?
There are benefits with both product types so, if you’re unsure of which path works best for you, speak with your loan officer for guidance and advice.
When It Pays To Refinance Your Mortgage — LiterallyComments Off on When It Pays To Refinance Your Mortgage — Literally
To refinance a mortgage means to pay off your existing loan and replace it with a new one.
There are many reasons why homeowners opt to refinance, from obtaining a lower interest rate, to shortening the term of the loan, to switching mortgage loan types, to tapping into home equity.
Each has its considerations.
Lower Your Mortgage Rate
Shorten Your Loan Term
Convert ARM To Fixed Rate Mortgage
Access Equity For Projects, Debts, Or Other Reasons
A refinanced home loan can help you reach specific financial goals or just put extra cash in your pocket each month — just make sure that there’s a clear benefit to you. Paying large closing costs for small monthly savings or negligible long-term benefit should be avoided.
Many lenders offer low- or no-closing costs options for refinancing. Be sure to ask about it.
Questions First-Time Home Buyers Should AskComments Off on Questions First-Time Home Buyers Should Ask
Nationwide, mortgage rates are low in DC and home prices remain relatively low, too. This combination, plus rising rents, is pushing renters in some cities — including Arlington, VA — toward first-time homeownership.
Buying your first home can be exciting, but you should also do your research to make sure that you ask the proper questions of the process, and make the best choices for yourself and your household.
For example, recommended questions for first-time buyers to ask home sellers include :
What major repairs have been made to your home?
Although standard disclosure forms are supposed to provide information regarding past damage and renovation to the property, there are occasionally repairs that are omitted or otherwise forgotten. Be proactive and ask pointed questions about the roof, the foundation, and the electrical system. Some home issue have a way of resurfacing many years later and it’s best to know in advance. •
To which school district does the home belong?
As a first-time homebuyer, you may or may not have school-aged children. However, in many areas, public school rankings positively (or negatively) affect home values. Ask your real estate agent for school district data. Consider asking the seller for feedback, too.
Is this a “distressed” property, and what does that mean to me?
For many home buyers, the allure of a foreclosed home or a home in short sale can be large. Prices are discounted as compared to comparable real estate — sometimes by as much as 20%. However, many distressed properties are sold as-is,” with little room for negotiation. This means that homes may be defective or, worse, uninhabitable. Ask your real estate agent for help with distressed homes and their suitability to your home buying needs.
After asking the above questions, and other questions, too, it’s important to remember that buying a home can be an emotional decision; and one that requires using your “brain” as much as your “heart”. Try to keep emotions in check so that you don’t overpay for a home that’s unsuitable, for example.
|Simple Fixes To Help Your Home Sell More QuicklyComments Off on Simple Fixes To Help Your Home Sell More Quickly|
|Best Jumbo Lenders – How to Source the Best Mortgage Rates(1)|
|How to Find the Best Refinance Lenders in Today’s Market(1)|
|VA Streamline | IRRRL | Mortgage Refinance Loan(22)|
Contacts and information
Most Popular Articles
Hot Rates, Clear Terms, Cool Savings
Most popular categories