Purchasing a Home with a “Bonus Room”
I’m seeing some listings that tout a “bonus room,” suggesting that you get an extra room included in the purchase price. What you need to know is that this is another way of saying that the addition (or conversion) was unpermitted, meaning that the...Getting Prequalified versus Getting Preapproved, Part 2 of 2
After your initial conversation about prequalifying and after determining what you feel comfortable with as your “max purchase price,” it is strongly recommended, if not necessary, that you get preapproved for a loan. This is not just getting credit-approved, like...Getting Prequalified versus Getting Preapproved, Part 1 of 2
It is much better and much more important to get preapproved. Let me start out with the details of a prequalification first. The first thing you are going to do when you start thinking about buying a home is to call a bank or a mortgage broker to see what you can...Major (Urgent) Changes to Mortgage Insurance Requirements on Condos
Right now, this is a rumor, but when I hear rumors like this, I’m pretty sure it will happen: Effective 10.2.09, you will be required to put 15% down on a condo for a conventional loan. FHA loans still allow for the minimum of 3.5% down, but there are stringent...$8000 First Time Homebuyer Tax Credit Expiring 12/1/09
Just a reminder that the first time homebuyer tax credit is set to expire on December 1st. This means that you must close (own the home) by this date. Purchase contracts are averaging between 30 and 45 days right now on regular sales, so this means you would...Interest Rates Have Been Improving!
Interest rates have steadily improved in the past week and a half. I haven’t seen a good run like this in quite a while and definitely not in 2009. Usually, we have had wild fluctuations. I have a lot of clients that had a target rate and cost in mind and we...Closing Costs and the “Good Faith Estimate”
After you have applied for a loan, your broker or lender is required to mail a Good Faith Estimate (GFE) to you within 3 days of receiving your application. The GFE gives you the breakdown of closing costs and prepaid items that you must pay at Close of Escrow. This...A Gift as Your Down Payment
If your family has the ability to gift you money to use towards the down payment on your home purchase, we need to make sure that it complies with certain rules. Here are some highlights and tips you should be aware of: CONVENTIONAL LOANS: If your total down payment...Home Affordable Modification
For those of you whom are unable to refinance because your value has declined and who do not qualify under the Fannie Mae Refi Plus program, your only option is to ask your servicer for a loan modification. I’m working on gathering information from people who...Loan Calculator
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