Financing To Buy A New Home, More Than A Pretty, High Credit Score.
The financing to buy a home, the one you really have your heart set on.
You’ve been hit with all the ads, offers and pelted with rates, programs and chances to get a loan. Peddled and presented smoothly as being as easy as just sign here.
You can’t see the rest of the bank lending fine print to snag that low low rate with asterisk beside it and then hang on, the drop to the bottom of the monitor screen.
Or actually hear all about it in the thirty second holler for a dollar. To keep up with the liquid tongue announcer who rattles off the legal disclaimers at the tail end with not enough time to humanly hear.
That all goes along with the catchy sound bite. That enticed you in to the marketing tent to begin answering questions, filling in the spaces on the four page form where the banking process all begins.
What was your social security number and middle initial again?
It is Jane and John Doe, do I have that right? How long have you lived in your present address. I see. Okay. Now place of employment, savings accounts, who do you owe money…. (audio drops, picture fades to blac, scene changes to the home picked to buy,)
Verified money, or cash from your pocket, a gift from someone that is close to you.
Or just knows the right combination to the big stainless, hardened steel polished bullet proof metal safe. Tto pull off the purchase of the property you have to be able to save money and live below your means. Or need a friend with money. Usually a bank, to make the loan.
To look you over. Up, down, sideways, almost close to where your soul lives and then hopefully determine you are credit worthy. If. You deserve a loan approval to move on to the next step. If. To get to the point, the place in the home buying movie where it’s time. (Sound of precious time, the clicking clock in the back ground.)
Let’s spend the other half of your application fee to keep the I wanna buy a home dream alive and kicking.
The credit score and financial history of spending habits checks out pretty good. But let’s move on to the part in buying a house three step about hiring an appraiser.
To give the head to toe, in and out physical that is the second step of the usually six to eight week process to buy a new home. To make sure the sticks and bricks are A-OK too. So the mortgage bank lender can package up the property just lended on to dump, sell it out onto the secondary market. Usually.
Yes we do have a lot of cash sales in a place like wide open space, fewer people in the census head count and low to the ground home and all the other real estate listing prices. Owner financing real estate land and even homes happens. But that is a discussion for another blog post day.
The approval for your new home was for the best program, maybe only one you qualified for on the other side of the banker’s desk back filling out the start of lots to come sheets of paper. Does the new home you want to buy match the program bank lending mortgage underwriting standards? Boy oh boy, I hope so.
The banker if a local lender in Maine lives and knows where the home for sale is.
The one out of state or the solar system does not.
Maybe he or she took the time to study the online listing which can be helpful or pretty skimpy, thin.
Hard to tell sometimes what is good, tasty and stands above and beyond another in the sea of sameness in the fast paced, yes, no, maybe of real estate marketing listings today.
A professional full time real estate agent, broker, REALTOR has the experience to know if the home you wish to buy is the best match for the house of your dreams.
Or at least works best with what you have for resources, and lines up as good as she gets with the list of “gotta have, don’t want” that the buyer is holding. If the program to buy does not fit the house under contract purchase, there is bad moon arisin’ my friend. It only gets worse.
You felt pretty good about your credit score, the easy does it careful attention to your debt ratios of not spending too much.
But the home, what loose ends are you aware of ? That will be written up by the house appraiser in the turn your head and cough?
And sure you knew about a few places that have peeling paint, and the loose ends you thought you can take care of in time. After the real estate sale and you can see yourself all settled into the house.
The bank is selling your mortgage, and like a car you have a mechanic hoist high on the lift to check underneath for anything that looks fishy or worn out, maybe dangerous.
Does not want a bad water test. Lead paint warnings. Leaking roofs or broken windows. Safety first, check for those GFI electrical outlets, secure railings on all the steps. No loose or rotten, missing deck boards please.
The house gets the same full scan.
Everyone at attention.
And whatever is not up to snuff has to be addressed by buyer, seller, someone who will correct the repairs.
Then give the word back through the banking channels to reach out, have the same appraiser double back to sign off and duely note that said repairs have been performed to his or her satisfaction.
The real estate property listing sale can crash at the first step of getting pre-approved. The house purchase conveyor belt headed for a real estate closing can stop during the inspection and appraisal process.
Or here comes the last hurdle to avoid knocking over in getting the clear to close instructions for the attorney or title company. The title to the piece of real estate under the house you have mentioned to your family and friends that you hope to be buying soon.
Title problems with real estate can crop up and add plenty of turbulence to the buy a new home process.
You can’t see them, only a title search back the last forty years brings them into day light.
Old nusty, dusty mortgage that was paid off but never discharged. That is not so bad because it was paid but never recorded. Hunt down the hopefully still in business bank to get that all important paper whoever is representing the home owner.
Or maybe the old mortgage lien was not paid off, there is a balance due with interest and penalties on top like a cherry to deal with suddently. Or brakes get applied to the real estate closing date and time. Please stand by.
The liens, attachments, right of ways or encroachments that an attorney and sometimes surveyor brought into the fray reveal.
They have to be addressed, removed or accepted by the morthgage lender.
Who wants to make the new home loan. But can not if lingering issues at the registry of deeds where the property real estate title is recorded make it impossible to do so.
The three steps to buying a new home. Sometimes you as the real estate agent, broker, REALTOR that we are good to go, all set. But then a curve is thrown. The buyer went out and bought a lot of new furniture to go in that new home they are scheduled to buy and close on soon.
But (ding ding ding) … the debt ratios just changed with more installment debt piled on to the already close to the ceiling, the top of what the mortgage underwriting loan program allows.
Or a car died or suffered a major repair expense to get back on all four tires and back on the road. That hurts the odds, reduces the chances the new home loan will close.
So does if the seller suddenly gets tired of waiting for the closing, has others breathing down his neck to buy, and won’t sign the purchase and sale extension to keep the deal alive.
Or someone loses a job, divorce papers are served, a routine doctor’s appoint finds a lump, dark spot on a cat scan film. Life happens. Time delays strain the getting a home loan, buying a house real estate sale process.
Or the buyer decides he loves the home, but is just no longer in love with it. Another one caught his eye. Or love turns to hate, there is a fine line. When the seller starts removing all the things he promised would stay. What is a fixture, what is real estate personal property definition again (opening up, thumbing through the law book).
Regardless of the red flags that pop up and what can go wrong or better be navigated around to get to a successful new home closing, banks want to make loans. Need to have those mortgages performing to keep their share holders happy happy happy.
A real estate professional will watch the dials, study the process and advise along every step of the way to get to the part at the closing for the pass the keys please.
207.532.6573 | [email protected] |
MOOERS REALTY 69 North Street Houlton Maine 04730