If you are in the market to buy real estate, get your bank in order because when it comes to closing a loan, Time is Money. Lender requirements may be daunting but being prepared and providing the necessary documents as timely as possible keeps the process on schedule to close on time.
One thing your lender will require are bank statements from your checking and savings accounts. Keep these tips in mind:
1. All pages of the statements are required. If the statement consists of 8 pages and page 8-8 is blank you still need to include it.
2. A printed online summary is not acceptable. The bank statement must contain the name and address of the banking institution, the name of the account holder(s) and the account number(s).
3. If the account is joint with someone not on the loan, then send a signed and dated letter from the non-borrower stating that you (the borrower) have full access to the account.
4. If you have made transfers into your account from another account then two months statements from that account will be required as well.
5. Non-payroll deposits must be documented with copies of the actual checks which were deposited, as well as an explanation of the source.
6. If you have ANY check return or NSF fees on your bank statement send a signed and dated letter of explanation for each.
7. Make sure your Earnest Money (EM) check has cleared the bank. The EM cannot be listed as a credit on the HUD at closing unless it has cleared. A copy of the front and back of the cancelled check, as well as the bank statement showing where the money cleared the account will document this.
The process from contract to closing can be confusing, and difficult to understand at best. However, if you comply with the lender's requests as quickly as possible you will be enjoying your new home on schedule.
I would be honored to help you with your next real estate purchase.
Thursday, August 23, 2012
Tuesday, August 14, 2012
4 Strong Reasons to Buy a Home Now
“It’s hard to argue against buying a house now, assuming you can get a loan,” writes John Waggoner, a columnist with USA Today. Sure, Waggoner says that getting a credit check for approval of a mortgage can be a “only slightly less intrusive than a CIA background check,” but for those who are able to qualify, a lot of analysts say that now can be a good time to purchase a home.
1. The price is right. The median single-family home price hit its lowest in more than a decade when it reached $154,600 in January, according to the National Association of REALTORS®. That was the lowest since October 2001. During the height of the housing market in July 2006, the median home price for a single-family home was $230,900.
2. It’s cheaper to buy than rent. In nearly every major metro market, it is cheaper to buy a home than rent. Rents have been on the rise the last few years and are predicted to continue to rise. Meanwhile, home affordability is at record highs, which means that buying a home is more within reach to the median income family.
3. Inventories of for-sale homes are shrinking. Ned Davis Research estimates that excess inventories of homes to be eliminated by the end of next year. “When excess supply dries up, people start building more new houses, which has the virtuous effect of reducing the unemployment rate and increasing the economy generally,” according to the USA Today article.
4. Mortgage rates are at record lows. Mortgage rates have hovered near record lows for weeks, which has helped pushing housing affordability higher. For example, the average 30-year fixed-rate mortgage, which is the most popular among home buyers, is 3.59 percent, according to Freddie Mac—just above its record low set on July 26 of 3.49 percent average. “It’s conceivable that at some point in the next 30 years, your interest rate would be less than the rate of inflation,” writes Waggoner for USA Today.
1. The price is right. The median single-family home price hit its lowest in more than a decade when it reached $154,600 in January, according to the National Association of REALTORS®. That was the lowest since October 2001. During the height of the housing market in July 2006, the median home price for a single-family home was $230,900.
2. It’s cheaper to buy than rent. In nearly every major metro market, it is cheaper to buy a home than rent. Rents have been on the rise the last few years and are predicted to continue to rise. Meanwhile, home affordability is at record highs, which means that buying a home is more within reach to the median income family.
3. Inventories of for-sale homes are shrinking. Ned Davis Research estimates that excess inventories of homes to be eliminated by the end of next year. “When excess supply dries up, people start building more new houses, which has the virtuous effect of reducing the unemployment rate and increasing the economy generally,” according to the USA Today article.
4. Mortgage rates are at record lows. Mortgage rates have hovered near record lows for weeks, which has helped pushing housing affordability higher. For example, the average 30-year fixed-rate mortgage, which is the most popular among home buyers, is 3.59 percent, according to Freddie Mac—just above its record low set on July 26 of 3.49 percent average. “It’s conceivable that at some point in the next 30 years, your interest rate would be less than the rate of inflation,” writes Waggoner for USA Today.
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