Ask Val

August 17, 2010

Appraisals and Housing Valuation Code of Conduct (HVCC)

Housing Valuation Code of Conduct

 

Sometimes I wonder what our government was thinking when a group of lawmakers, (NY) decided it was in the best interest of consumers to have a third party requesting the most important piece of the puzzle in a refinance or purchase.   

An appraisal is an opinion of a property’s value.  Just like in any profession there are good and bad.  To utilize the best opinions it needs to be an appraiser who is familiar with the area and transactions taking place.   

In today’s market, we order an appraisal with a company who then gets in touch with the  appraiser.    

As a loan officer we do not have knowledge of the appraiser until we receive the finished product.  If there are any questions they are filtered back through the appraisal management company.   

For purchases, not so much negative, but for refinances it is a toss up as to the amount of work appraiser puts in to get the true value of the home.  I have been told sometimes can vary as much as $30k depending on comparables used.   

Thankfully, I have only had one appraisal that was disasterous and that appraiser has been removed from the the appraisal management company’s list.   While most appraisers take great pride in their work there are always those bad apples floating around in the barrel.   

I hope this trial will be one that is deemed unreasonable for all parties involved.  Ask the appraiser how they would rather work???   

If you have a comment or opinion, please share.   

Yours to Count On,   

Valerie Springer

August 12, 2010

Closing a Residential Mortgage, What do I Need to Bring?

By now most everything has been completed and if everyone did their jobs correctly the closing should be smooth and easy!    I will give a checklist for the purchaser and seller to make sure you arrive with everything you will need.

The borrower will need to bring the following:

Certified Funds–By law the closing attorney can accept a maximum of $5k in certified funds but check with the law firm, some may accept less.  The certified funds can be made payable to the firm or borrower and endorsed to the closing attorney firm.  Borrowers should also bring checkbook in the event additional funds are needed.  There could be last minute changes to the HUD Settlement Statement.

Picture ID–Closing attorney will need a picture identification from each borrower at closing.  Driver’s license and passport are acceptable but must not be expired.

Funding Conditions–Any closing conditions required by the lender such as an additional pay stub or proof of gift funds etc…Your lender would let you know this in advance.

The Seller needs to bring the following:

Picture ID–Once again driver’s license or passport are acceptable.

Power of Attorney–Usually a power of attorney for the seller does not require a lender approval.

House keys and garage door openers or any other gadget devices.

Other documents–Original termite letter, septic inspections, repair receipts, and make sure you or realtor have provided the closing attorney with payoff a few days in advance.

In attendance will be the borrower’s, seller’s, realtor for purchaser and seller, mortgage loan originator (not always, but I will be there) and the settlement agent or attorney.

During closing the lender’s conditions will be cleared first and then the closing statement of HUD 1 Settlement Statement is explained and discussed.  Next would be warranty deed and other conveyance documents signed by the seller, financing documents signed by the borrower.  Once everything is completed the signed documents are sent to the lender and after review they will wire funds and they will be disbursed.  This could take about 45 minutes.  This is a good time for realtor documents to be signed or updated if anything was missing.  Keys to the house are handed from the seller to buyer and phone numbers are exchanged, especially if purchaser is not taking possession immediately.

Purchaser needs to go to the tax assessor’s office and file homestead exemption immediately while it is fresh.  Taxes could double if deadline is not met.

I look forward to seeing you at the closing table!  If you need financing advice Valerie Springer is here to help with all of your needs! 

Yours to Count On,

Valerie Springer  nmls 198479

August 9, 2010

FHA Mortgage, What is the attraction?

Many times I am asked why is a FHA mortgage better than conventional?  In fact, there are many  advantages to FHA financing.

FHA insures the mortgage which reduces the risk a lender has to assume in the event a borrower defaults on the mortgage payments.  Insurance  allows lenders a little more willingness to loan to those with not so perfect or less depth in their credit history.  This helps  individuals qualify for financing.

FHA’s underwriting standards are less strict than those of conventional loans.  This allows individuals who have had credit issues, bankruptcy, foreclosure or inconsistent payment records the opportunity to qualify for financing.

Also, FHA will allow a minimum down payment to be as low as 3.5%.  These funds can come from the borrower, co-borrower, or in the form of gift funds.  Gift funds may be given from a parent, grandparent, fiance’, sibling or god-parent.

In today’s market if you are purchasing a home below $271,000.00 and putting less than a 20% down-payment, it may be in your best interest to have a FHA loan.  Rates are low and FHA may be assumed if qualified and monthly mortgage insurance is generally much lower on an FHA mortgage.

If you have questions or would like to be pre-approved to purchase a new home or refinance your existing, please visit my website www.vshomeloans.com or call me at 205-995-7283 x 304.  I would love to help with one of the largest financial decisions you will ever make.

Yours to Count On,

Valerie Springer    NMLS 198479

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