Beware of Poor Home Flips! Lurking in the Kitchen
House Flipping…The Good vs. The Bad!
Scariest Situations for Home Buyers & Sellers – Part 4 So, where are we? We have an accepted offer, the home inspection went well, we successfully negotiated a Request for Repairs, the appraisal supported the purchase price, the buyer has removed all contingencies and now it is an unconditional offer. The finish line is in sight. But, there are still a few more “scary” steps ahead of you. For one, the lender needs to get the final loan documents to the escrow company so the buyer can meet with a Notary to sign everything. Now that part can be a little intimidating and nerve-racking for a buyer. That is why it is very important for the loan officer to review the Estimated Settlement Statement or Loan Estimate with the buyer(s) BEFORE they sit down with the Notary. This ensures a less-stressful, and less-scary, loan signing. Next is for the buyers to conduct the Final Walkthrough of the home, contractually this is to be done 5 days before the close of escrow. This is important to confirm that the home is in relatively the same condition as when the offer was accepted and no damage was done when the seller moved out. Now the seller is also supposed to remove all personal items from the home, but often some things are left behind, like yard products (fertilizers, bug sprays, etc.) And while the seller is required
Scariest situations for home buyers & sellers. Contact me for more information, I am happy to help you buyer or sell real estate in San Diego. Craig Sutliff The GreenHouse Group Craig@GreenMeansGrow.com 619-857-
Learn How to be a Millionaire! The Millennial Millionaire Maker Please contact me at: Craig@GreenMeansGrow.com Cell: 619-857-
Our Southern California housing market demands a lot from buyers. Whether purchasing a primary residence, a second home, or investment property the biggest challenge for all potential home buyers is down payment. Recent lending guideline enhancements mean there are 2 loan programs you must know about. For those looking at purchasing a second home or investment property you can now exceed the conforming limit of $417,000 and put down as little as 15% for a one-unit property. The previous minimum required down payment amount was 20% and that was below the conforming limit. Under the old rules you would be capped at a loan amount of $417,000 and be required to put down 20%. Now you can exceed the conforming limit and put down 5% less. Comparison of old and new lending guidelines: Old guidelines New guidelines Purchase price $521,250.00 Purchase price $521,250.00 Loan amount $417,000.00 Loan amount $443,062.50 Down payment (20%) $104,250.00 Down payment (15%) $78,187.50 To find out more about this loan program including monthly payments click here. By David Hughson Mortgage Planner 858-863-0264
Recently we got a big lending guideline enhancement when we learned Fannie Mae would no longer require 30% equity in a departing residence when converting that departing residence into a rental property AND using projected rents to offset the existing mortgage payment. This is a big boost to anyone who needs the projected rent to qualify for the next home loan. Now another lending enhancement has been released just this past week. This time from Freddie Mac. There is no longer a landlord history required to qualify for your next home loan. That’s right, Government Sponsored Entity Freddie Mac no longer requires a 2 year history of managing rental properties when needing that rental income to qualify for your next home loan? This is true for both the subject purchase property or other existing investment properties already owned. To find out how this found money can boost your purchase power click right here. By David Hughson Mortgage Planner & Rental Income Finder 858-863-
Almost all loans fall into two categories: Government and conventional. Government loans are further subdivided into either VA (Veteran Administration) loans for our active and inactive military looking to buy an owner-occupied property and FHA (Federal Housing Administration) loans which are open to all people looking to purchase an owner-occupied residence. Conventional (Fannie Mae & Freddie Mac) loans, like FHA loans, are open to all people as well but offer many more types of loan structures including those looking to buy second homes and investment properties. What most people don’t know is that lenders choose to offer all three types of loans and often times impose their own guidelines on top of the base guidelines. For example, for forever it’s been a lender loan guideline to provide two years of tax returns for anyone applying for a home loan. But did you know that Freddie Mac only requires 1 year of tax returns? That means the one thing all self employed people need to know is that if you’ve only been in business for one year you can apply for a home loan. This is great news for anyone who has made the leap from their salaried job to being self employed and thinks they can’t buy a home until they’ve been in business for two years. Or for anyone who wants to start that side business now to boost
To request a guide to in your neighborhood: http://vid.us/rd2svr “Is It TOO LATE?” [San Diego] Seller’s Guide to June 2014 Home Prices. In this quick look above, there’s a sneaky trend that could be forming on the horizon … and it could mean less money for NOW seller’s in the not-too-distant future. Check it out and tell me what you see. Jesse Ibanez
From moodys.com Slowdown in mortgage refinancing is credit positive for new jumbo RMBS. A slowdown stemming from higher interest rates will be credit positive for new jumbo RMBS if it boosts the volume of purchase loans in securitizations because purchase loans generally default at a lower rate than refinance loans. The lending environment is likely to lead to higher proportions of purchase loans in RMBS pools over the next several years because further interest rate increases are likely. The higher credit quality of purchase loan borrowers compared with borrowers who refinance explains some of the performance differential; however, purchase mortgages are also generally stronger because originators have typically subjected purchase loan borrowers to stricter credit reviews and property valuations. David Hughson 858-863-
The GreenHouse Group INC is a full service Real Estate & Mortgage Planning Firm located @ 3111 Camino Del Rio North, Suite 400, San Diego, CA 92108. We'd love for you to drop by and say "hello" to us here at our beautiful offices in Mission Valley. Or, if you'd prefer to drop us a line you can call us anytime @ (858) 863-0261. We look forward to meeting you!
