Watch Out For This When You Buy A Home…

I wanted to give you something to watch out for when you are purchasing a house.

I have a borrower that recently ran into a complication, and I wanted to tell you about it here – so you can learn from his experience.

My borrower got a home inspection for the home he was purchasing. …This is a smart thing to do anytime you purchase a house.

The home inspector is hired by the buyer to check the house for any current or potential issues with the condition of the house prior to purchase. The home inspection is typically a private report meant only for the buyer’s eyes.

Typically the home inspector will go out of his way to let the buyer know about every little light bulb and air register that has any type of imperfection in them. His goal is just to let the buyer know about them, and to cover his own bases if something were to happen to these items in the future.

My borrower’s realtor made the mistake of mentioning the inspection in the earnest money contract. Once the word “inspection report” shows up in the contract the underwriter can ask to see a copy of it.

Sure enough, the underwriter asked to see the inspection report. …and, the underwriter wanted every little item listed on the report to be fixed prior to closing.

This of course caused the need for renegotiation on the repairs, and very well could have killed my borrower’s deal.

Fortunately the seller was willing to cooperate with the buyer on the repairs.

The lesson here is don’t mention the inspection report in the contract – unless you don’t mind showing it to the underwriter.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

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How To Get A Loan If You’ve Recently Been Out Of Work…

If you have recently been out of work, and now you are working again – here’s what you need to know to buy a house…

I wanted to go over the FHA guidelines with you on a borrower returning to work in case you or someone you know is in this situation.

There are just a few main guidelines that FHA likes to see for the borrower in this situation to be eligible for financing…

1) Current employment of at least six months.

2) Documentation of two years of employment prior to the absence. Acceptable documentation includes w-2′s, paystubs, or a written verification of employment.

3) Acceptable scenarios include an individual who took several years off to raise children, but has now returned to work.

If you know someone in this situation and they want to purchase a home, have them give me a call and I’ll try to help!

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here.

Get A Rate Quote Here.

Need A Mortgage Calculator?

Here’s An Interesting Note On Credit Scores…

Here’s an interesting credit note I saw in National Mortgage News…

The government-sponsored enterprises, facing pressure to end their reliance on old credit-scoring models from Fair Isaac Corp., are working with their regulator to study newer alternatives. Fannie Mae and Freddie Mac confirmed the commitments recently.

They are a victory for VantageScore Solutions, an upstart competitor to FICO that has struggled to gain a foothold in the residential origination business. VantageScore contends that the question of which credit-scoring models get a seal of approval from Fannie and Freddie is more than a run-of-the-mill business dispute, because it has implications for the availability of U.S. credit.

Switching to newer models would allow more prospective borrowers to be scored and provide better accuracy about the likelihood of default, VantageScore argues. At a time when many believe that home loans have become too hard to obtain, those arguments have won allies on Capitol Hill, in fair-housing circles and in the lending industry.

“Lenders will say to us that they’re being forced to use old models,” said Barrett Burns, VantageScore’s president and chief executive officer. “They want the most accurate model they can get so they can reduce the probability of default.” VantageScore has been pushing hard to get the imprimatur of Fannie and Freddie, partly because of the weight the two companies carry throughout the entire residential loan business.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here.

Get A Rate Quote Here.

Need A Mortgage Calculator?

My Previous Blog Posts