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