Feb 19, 2014 | Uncategorized
By Amy Tierce
Real Estate appraisals are performed by independent, licensed and in most cases certified appraisers.
How an appraiser views a property and the nature of the appraisal investigation is highly regulated and restrictive. Among many data fields, the appraisal report is required to address:
• Town and registry data on the property
• Recorded data on the immediate neighborhood
• If the property is legal per city and town records
• The condition of the property along with major systems
• Room count, size and general dimensions
• If improved, if proper permits were issued
• Market statistics and conditions
• Comparable sold properties
• Comparable properties on market
• Complete photographs as required by secondary market
• Floor plan on property is drawn by appraiser
Any errors or discrepancies on the appraisal report as compared to other data in the application process must be resolved. This means that all data throughout must match, for example street address, zip code, and property tax figures.
Much of the frustration with the appraisal process comes from the selection of comparable properties to support the value of the subject. It is required that these comparables be as close as possible to the subject in terms of style, age, size and proximity and timing of the sale.
Condominiums require additional work by the appraiser because the appraiser must validate the condominium information and many times this information can only be acquired by obtaining a completed condo questionnaire. To assist the appraiser and help expedite the process a copy of the lenders condo questionnaire will help.
Depending on market conditions, an appraisal can take up to two weeks to obtain. However, your lender can have the full credit approval completed on the borrower while waiting for the appraisal to be completed.
In this competitive market be sure to speak with the lender about the risks associated with the waiving of an appraisal or mortgage contingency.
Admittedly, the appraisal can be one of the most frustrating components of the mortgage process especially if the seller and real estate agent believe that the valuation is low.
Content courtesy of
Amy Tierce, Regional Vice President, Fairway Independent Mortgage
http://amyrates.com/
Feb 19, 2014 | Homeowner Tips
Home equity is the difference between what your home can sell for and what you owe on it. Generally, the longer you own your home, the more equity you build.
This is money you can use before you sell your home through a home equity loan. Just keep in mind that a home equity loan is secured with your home. If you can’t make the payments, you can lose your home.
Use Your Home Equity In Smart Ways:
- Remodel Your Home – If you’ve wanted to add on a family room or modernize your kitchen, consider using your home’s equity to fund the project. Home improvements usually increase your home’s marketability and value.
- Make Needed Major Repairs – Your home’s equity can be a funding source for major repairs like plumbing problems and re-roofs. Once again, this is an improvement for your home that will help keep its value up.
- Buy Another Property – Real estate is still a safe investment. You can use your home equity to buy a second property when home values are down. When the market recovers, you can sell the investment property for a profit. This also works if you have to move out of town and are still trying to sell your home. If you can afford the payments, use your home’s equity to purchase your new home until the current one sells.
- Pay For Unexpected Medical Expenses Or Job Loss – You never know when a medical emergency or job loss will leave you in debt. A home equity loan can give you the money you need to get through this difficult time.
It’s easy to build equity in your home when you find the right deal. Let me help you find your perfect home and negotiate a great price and terms for you. Contact your real estate professional today.
Feb 18, 2014 | Mortgage Rates
Last week’s economic news was dominated by the first address by the new Fed chairperson, Janet Yellen.
Tuesday’s news included the Jobs Openings report for December 2013, which matched November’s reading of 4.0 million jobs available.
This information was taken from a gauge of competition for available jobs; in December, competition for job openings fell to its lowest level in five years.
Fed Chair Janet Yellen‘s First Address to House
Janet Yellen addressed the House Financial Services Committee for the first time on Tuesday as Chair of the Federal Reserve.
Ms. Yellen indicated that she expected “a great deal of continuity” in terms of Federal Open Market Committee (FOMC) monetary policy direction, and noted that markets should expect the FOMC to continue its support of low interest rates.
Chairman Yellen emphasized that the FOMC’s current tapering of its quantitative easing program was expected to continue, but is not on a pre-determined course.
If economic conditions change, the Fed’s monetary policy would be adjusted according to such developments.
Mortgage Rates Mixed According To Freddie Mac
According to Freddie Mac’s weekly Primary Mortgage Market Survey (PMMS), the average rate for a 30-year fixed rate mortgage rose to 4.28 percent from the prior week’s 4.23 percent.
The average rate for 15-year fixed rate mortgage mortgages was unchanged at 3.33 percent. The average rate for a 5/1 adjustable rate mortgage dropped from 3.08 percent to 3.05 percent.
Discount points for each category were unchanged at 0.70 percent for fixed rate mortgages and 0.50 percent for 5/1 adjustable rate mortgages.
In other news, Weekly Jobless Claims were higher last week at 339,000 against a forecast of 330,000 new jobless claims and the prior week’s reading of 331,000 new jobless claims.
Analysts cited bad weather and the possibility of slower economic growth as factors, but said that it was too soon to tell if economic growth is slowing down.
The University of Michigan’s Consumer Sentiment Index beat expectations with a reading of 81.2 against expectations for a reading of 80.0. February’s reading was unchanged from January.
What‘s Coming Up
This week’s economic news includes the NAHB Home Builder’s Housing Market Index on Tuesday. Wednesday’s events include Housing Starts and the minutes from January’s FOMC meeting.
In addition to Freddie Mac’s PMMS, Thursday’s scheduled reports include Weekly Jobless Claims, the Consumer Price Index (CPI) and Core CPI. Leading Economic Indicators (LEI) for January will also be released.
The National Association of REALTORS® will release data for existing home sales in January on Friday.
Feb 13, 2014 | Home Seller Tips
When we are going through a difficult and stressful time, our bodies naturally react to the situation. This “fight or flight” reaction to stress makes us more alert and ready to avoid danger, so it is helpful in the moment.
However, if you are in a constant state of stress on an ongoing basis, this can be very damaging to your health and can increase the risk of diseases such as heart disease, depression and other problems.
Chronic stress can also result in insomnia, headaches, upset stomach, elevated blood pressure, chest pain and much more – as well as emotional issues such as panic attacks, anxiety and worry.
This is why learning to manage your stress is crucial to your health. Many people try to manage their stress by overindulging in unhealthy substances, such as tobacco, drugs and alcohol.
However, by managing stress in this way you are actually making the problem worse because you are contributing to the stress on your body.
So what are some of the healthy ways that you can manage stress?
Express Your Feelings
A lot of stress comes from being angry or upset about a situation, but keeping your thoughts and feelings inside. You can relieve that stress by sharing your feelings and expressing how you feel.
Take Time To Relax
No matter how busy and chaotic things might be, take time for yourself to recharge and relax. Even if it’s only 20-30 minutes per day, having a bath, reading a book or going for a walk – it will really help to keep you calm.
Get Some Exercise
The act of exercising is a great stress reliever because it encourages your brain to produce feel-good chemicals such as endorphins. Also, your body will be better able to fight stress when it is in good shape.
Make Sure You Get Sleep
When there are a lot of demands on you, it can be tempting to want to skip sleep so that you can get more things done. However, when you are sleep deprived you will actually be much less effective and you won’t be able to handle stressful situations as well. Make sure that you go to bed at a reasonable time and get the sleep you need.
Speak To A Friend
Having a close friend who you can discuss your issues with can be a huge help when you are feeling stressed. Even if they can’t solve anything, it is simply helpful to have someone who listens, cares about how you are feeling and offers some encouraging words.
Managing your stress is crucial to your health, so make sure that you keep these tips in mind when things start to get overwhelming.
Feb 12, 2014 | Homebuyer Tips
Buying your first home is a major milestone in your life, similar to graduating high school or moving out of your parent’s house.
When you buy a property, you are making a long-term investment decision in your future and potentially taking the first step toward your future financial security.
However, buying a house before you are ready can actually be a negative move that puts a cramp in your plans.
It is important to assess where you are in life, so that you know whether or not it’s the right time to buy a house.
Some people buy their first home at 21, others at 30 and some might continue to rent for the rest of their lives – the decision depends on personal circumstances. But how can you determine for yourself whether you are ready?
You Have All Of Your Finances In Order
Is your credit score looking healthy? Have you paid off your credit card debt, student loans or personal loans?
If not, it is important to clean up your finances and pay down your debts before you start looking for a home, or you will be adding a mortgage on top of the debt before you are able to handle everything.
You Have Enough Savings For A Down Payment
Just because you can buy a home for as little as 3.5% down payment, doesn’t mean that you should. You will have your dream home, but your mortgage payments will be so high that you won’t have any money left over for repairs or improvements.
Also, you will end up paying thousands of dollars more in interest over the length of the loan. The bigger down payment you can save, creating equity in your home, the better.
You Are Earning Enough To Comfortably Afford The Mortgage Payment
Financial experts recommend that you never take a monthly payment that is more than 25% percent of your take home pay – including taxes and insurance.
Stretching yourself thinner will leave you little room for error and if your income drops for any reason – you will quickly find yourself in hot water.
You Are Happy To Settle In One Place
Could you see yourself settling in this location for the long term, or are you still considering moving elsewhere in the country or living abroad?
Buying a home is a long-term investment, so if you think that you might possibly move somewhere else in the next five years, you might want to think twice about buying a home and rent instead.
These are just a few of the signs that you are ready to purchase your first property. For more information, contact your trusted real estate professional.
