Stay off the internet for financing…

Remember this:

1. Anyone can quote you anything and not live up to it.
2. Good Faith Estimates are subject to change.
3. If the deal sounds too wonderful…it really isn’t.


Buyer be aware…there are no miracles in financing. If your income is stable and you have great credit, you will get the best rates. If not, you will have to put more money down and pay a higher interest rate. There is no such thing as a real 1% interest rate, or no money down.

Advice:

1. Use a lender in the state in which you are buying.
2. Use someone that was referred to you by someone you trust.
3. Stay off the internet for quotes…they always change once you apply.
4. Don’t feel obligated to a friend just because they got a license.

For reliable and experienced mortgage brokers, or to get pre-qualified for free, please contact us.

Eve

Buyers are Getting Younger

Borrowers are younger and are purchasing less-expensive homes as the November deadline approaches for first-time buyers to qualify for this year's federal tax credit, according to a report by FBC Mortgage."Overall, the market seems to be improving, and we expect activity in the first-time buyer market to increase as the tax-credit deadline in November is fast approaching," said Ron Nunziata, FBC's president.Earlier this year, the average age for home-loan borrowers was 46, but it dropped to 43 in June and to 38 in July. Other trends in the July report include an increase in government loans vs. conventional mortgages, and a decline in the proportion of refinances as activity picks up with primary mortgages. Down payments have hovered in the $40,000-to-$50,000 range in recent months, while purchase prices have been about $180,000.Because of tougher underwriting guidelines, average credit scores have been above 720 during the past two quarters — their highest point in more than three years, Nunziata said.

Appraisals: How do They Work?

If you are paying cash, you do not need an appraisal…however if you are financing the property, an appraisal will be required before the lender will approve money for your purchase.

Appraisals are not a science; they are an opinion of value, which can vary depending upon the person doing the appraisal. If you hire 3 appraisers to appraise the same property, typically you will get 3 different answers.

This is how an appraisal works: the appraiser evaluates the property and then reviews the recent sales in the neighborhood to make comparisons. They will compare the number of square feet, bedrooms, parking garages, pool etc. in addition to the location. A lot that backs up to a shopping center will not be valued as high as one on a lake or backing up to a conservation lot. They do not give much consideration if the property is upgraded and in top condition, however they will lower the value if it needs work. If the property is unusual with limited or no recent comparables, you are at the mercy of whatever the appraiser thinks.

If your instinct tells you that you are getting a real steal on the property with a price way below market value, do not expect the property appraiser to raise the numbers to a higher value. All appraisers know how much you paid and they will justify only the purchase price. If they bring the property value much higher than the contract price, the lender would then question the sale and probably request another appraisal to review the first one.

If the property appraiser’s report comes in with a value less than expected, these are your options:

1. Ask the seller to reduce the price to appraised value,
2. Request another appraisal.
3. Modify the terms of the loan for a different loan-to-value.
4. Pay the shortage in cash.
5. Choose not to buy the property.

First Day New UCF Medical School

Today is the first day for attendance of 41 medical students attending the new UCF Medical School. 900 people watched as the students took part in white coat ceremony. This medical school opens up the medical education in Central Florida.