Home WAR-ranties....LOVE OR HATE?

Home Warranties....love them or hate them?  Necessity or not? 

 My opinion is that they are great to have (definetly for the first year), especially if the home you are purchasing has been vacant for a while, has older appliances or is a "flipped" home and has new appliances (you just never know).  The home warranites cost approximately $400-$500 a year and have a "trade service fee" of roughly $60-80 per visit.  If something goes wrong, you call the home warranty company directly, they send out a repair contractor, you pay the contractor the trade service fee and thats it!  For instance, to replace a water heater here locally costs approximately $600.  If you purchased a home warranty for $400 and paid the $60 trade service fee, you would have saved yourself $140!  And if you can get the seller to pay for it on your behalf....well you do the math....you would only pay the trade service fee of approximately $60 - WOW!  $60 for a brand new water heater???  Thats amazing.  I think thats a pretty good savings!  There are several companies out there, three of the biggest known here in Hampton Roads are, AHS, 2-10HW, and First American Homebuyers Warranty.  If you are curious about coverages, look them up online or give me a call! Im at the HELM Of it!  www.atthehelmofit.com

Schools Starting - TIPS FOR BORROWERS DURING LOAN PROCESSING

Since school is starting back up all around the country - I thought it would be a good time to "review" some tips for borrowers during loan processing. 

Remember.....as a buyer, you can choose to work with any lender you want - just make sure you are an informed consumer by talking to a few different lenders to see which lender is the right fit for you.  Programs, customer service and rates are three excellent ways to choose the right lender.

• Even if you have a pre-approval letter in hand and are under contract - you should keep in mind that sometimes, CREDIT, INCOME AND ASSETS are reviewed/re-verified AFTER you have signed your inital loan application documents.
• Keep all accounts current - credit cards, car payments, mortgages
• If you pay off any bills during the loan process, make sure to keep copies of all statements and paycheck stubs
• Even if you are paying off an account, be sure to make those payments on or before the due date.  NO LATE PAYMENTS!
• Dont co-sign on a loan for anyone
• Dont take on any additional debt, i.e., new car
• Dont quit your job or get another job unless its in the same line of work and for equal or more salary.
• Dont change bank accounts or transfer money within your existing accounts
• Dont apply for credit anywhere
• Dont charge any large amounts on existing credit cards or start any home improvements which require you to open credit cards.

The above list is just a guideline - some probably seem obvious  - just make sure you double check the list when you are having a loan processed because until your loan is actually funded from the mortgage company, any one of these things can prevent you from getting final loan approval. 

Talk to your mortgage lender to see if they have any other items other than what I have listed above.  If you need real estate assistance, call me....Im at the HELM of it!

FLOOD INSURANCE

GOOD TO KNOW....

Did you know that you can ask a seller to transfer their existing flood insurance policy to you the new buyer?  Sometimes, the seller's existing flood policy premium is lower than what current companies give quotes for.  I've had a few buyers ask the seller to transfer their policy - its at no cost to the seller - they just need to call their current company and give permission (along with any written documentation needed by the company, if any) to have proof that the policy can be tranferred.  The buyer would then call the seller's company to confirm and voila!  This is especially beneficial for homes in flood zones.  If the home you are purchasing does not require flood insurance, then most likely the flood quotes will be lower and you will not need to request the seller's policy. 

30-Year Mortgage Rates Hold at Record Lows

Great news for the home buyer and seller! 30-Year Mortgage Rates Hold at Record Lows

Record Rates Push Housing Affordability Higher

Record Rates Push Housing Affordability Higher

School is Now in Session!

Now that school is back in session, I keep thinking about the "fundamentals" or things that are important during a transaction that might not seem so important to buyers or sellers.  With everything going at such a fast pace, its easy to let things slip by for fear of having to spend more time than necessary with "boring" things like paperwork.   Each area of the country comes with its own "special needs" areas requiring proper disclosure.  For instance, here in Hampton Roads, Virginia you might come across issues such as - flood insurance, historic districts, transportation and roadway concerns, military air disclosures for noise/accidents and the list goes on and on.  Buying and selling have the same basic principles across the board no matter where you live, but its always good to ask about any special concerns regarding your home purchase/sale.  Do not be afraid to ask your Realtor if there is something you don't understand!  There's never a dumb question - just don't be silly by not asking because you think you should already know the answer.  If you don't ask, you may second guess yourself or not be prepared.  The more information you have, the better informed you will be, helping you to make the best decision you can make.  Here are a few good things to make sure of when buying or selling:

• Do you have an agreement in writing outlining each parties duties and responsibilities?  This includes the agreement between you and your Realtor in addition to your sales agreement with the buyer/seller.
• Do you have a copy of everything that you have signed including any changes/amendments to your contract?  This should include any state required disclosures, buyer broker agreements, etc.
• Have you read everything you have signed that your Realtor has gone over with you?  I know its kind of boring to read legal mumbo jumbo, but its there for your own good - and protection so that you don't make a decision without knowing all the details.
• Do you understand what you have signed or gone over with your Realtor? 
• Have you asked questions to clarify anything you haven't understood?
• If this is your first time buying/selling, its a good idea to have your Realtor type up a tentative timeline so you can keep track of "what happens next?"

Buying/selling can be exciting in a good way - make sure you are a good student and READ, UNDERSTAND and ASK QUESTIONS when you don't!

Need to buy or sell in the Newport News, Hampton, Williamsburg, York, Poquoson, Smithfield, Isle of Wight, Suffolk or outlying areas?  Give me a call.  I'm at the helm of it!

Purchasing a home that has been "flipped"

When buying a home that has recently been "flipped" (meaning that an investor has purchased it to renovate it and place it back on the market in a short period of time for a profit), please keep in mind that you should have your agent look up the date that the property was last sold and how the investor purchased it.  If the investor bought the home using an FHA Loan, then there could be conditions that prevent the seller from selling the house within a certain time frame.  (Currently, the rule of thumb is 90 days but of course things change, so check with your local lender for more up to date information as time goes by.)  Most folks think that the 90 day rule is for settlement only.  But its not.  It means that the seller cannot even get a contract on the home until 91 days after the home was last purchased. 

So here's the deal...if you have a buyer interested in one of these homes and you find that you have written the contract prior to the 91 days, check with the lender to see if it would fall under the waiver criteria that is currently in place.  The lender may require a long list of things like - a second appraisal, a cma, a copy of the listing, a copy of the home inspection report, a copy of the deed when the seller purchased the home, and the list goes on.  And even though you may have to delay closing and jump through a few hoops like a circus clown, at least it wouldnt be a total loss and your buyer could still buy the home they fell in love with!