Category Archives: Mortgage

Leverage These Low Interest Rates

Many people dream of their next home. Could it be a larger home for your larger family? Maybe you want a bigger house to incorporate a home office. Do you dream of a home with more land?

Others are deciding on downsizing. Retirees who no longer care to keep up a garden, or  do not want exterior maintenance are thinking of a smaller home or condo. Empty nesters might be trying to figure out their next step to a smaller space but one the kids and grand kids and visit comfortably.

Right now, we have historically low interest rates which makes it a great time buy a new home.

If you are a new homebuyer, contact your bank’s mortgage department or find a lender in your town determine what mortgage programs work for you. What kind of rate can you get and what does a rate lock mean? Decide if you have the money for a down payment. If not, learn from your mortgage professional ways to secure one. Ask about taxes and insurance that will be added to the mortgage.

Get quotes on moving expenses and storage in case you need a short-term storage unit. Many people forget this part of the cost. Determine your budget and the price range to be searching for a house.

If the numbers work out and you find that this is the time for you to make a purchase, start your homebuying searches online by looking at neighborhoods in your price range. Keep a mortgage calculator, like one offered by Realtor.com, nearby to help you figure out the costs.

Look for a real estate agent to help you.

Ask for referrals from friends and family and the mortgage lender you are working with. Most of these people in your sphere know or have worked with an agent that they would want to recommend.

Online companies that pick an agent for you are really gathering your info and selling it to local agents; the agent you pick from this pool will have to pay a fee to the referral company for your business. If you go that route, be sure to interview several that call you. Make sure you pick an agent that you feel you can trust; one that you think you’ll get along with.

Check out non-referral companies, too, like Yelp and Realtor.com to investigate agent profiles. Do a browser search for local agents and read about the ones that populate on the search page. Find agents’ business pages on Facebook and profiles on LinkedIn.

If you want specifically to purchase short-sale or REO properties, search for agents that are educated in the process. There is significantly more paperwork and you really can’t do it alone.

A good agent will suggest more properties to visit and will walk you through the homebuying process: the contracts, addendum, inspections and negotiating for repairs including termites if they are present, attorneys, making sense of appraisals, the underwriting process, closing proceedures and more.

Use the agent you picked to help you with For Sale By Owner properties, too. You’ll want a coach and advocate to take this path with you.  FSBO sellers are only interested in their well being and generally won’t be able to help you with your questions. If you call a FSBO then you’re on your own. Once they have your name, they are not going to want to pay your agent, and your agent can’t help you any further. So let your agent call the FSBO seller for you.

Enjoy your home buying adventure.

Eileen Saunders, SRES REALTOR with Tommy Morgan Realtors BOF-Oxford 2092 Old Taylor Road #101, Oxford, MS 38655  662-404-0816/662-234-5344 eileen@tmhomes.com

 

 

 

 

Your Home’s Value

I am a homeowner in Mississippi which is a non-disclosure state.  That means that what I paid for my house is not public information.  It is information that is on the MLS Board where my home is located and can be used for comp purposes by other agents in the MLS Board but otherwise, Mississippi law says it is no one’s business what I paid for my house.

So I recently got a letter from my mortgage company which is not located in Mississippi.  It told me how much equity I have in my house based on my loan balance and a value of the house.  The letter said that the value is an estimate “based on market trends” in my area.  Since they do not have access to information in this non-disclosure state, the value of the house is much lower than what I paid for it.  It’s because they really don’t know the value of my house.  As I read closer, I realized the value was the original loan balance.

I’m a licensed real estate agent in my MLS Board and know the market trends and have available the comps to tell me the value of my house.  BUT, if I wasn’t, this letter would have scared me to death making be believe my house was losing value.toy-37512_960_720

My point is, if you live in a non-disclosure state, like Mississippi, and get a letter from your mortgage company telling you the value of your house, question it.  Calmly call your agent and get a comp analysis. It’s not a bonafide appraisal but close to it; it’s a market value, and in this hot, hot market you’ll most likely be pleasantly surprised.

If you live in the Oxford/Water Valley/Batesville/Pontotoc area and want a free comp analysis, contact me for an appointment.

Eileen Saunders, SRES REALTOR, Tommy Morgan Realtors, 2092 Old Taylor Road, Oxford, MS 38655   662-404-0816 / 662-234-5344 equal housing

What is 203K?

Want to buy a fixer-upper but don’t think you’ll have the money for the remodel after you buy the house?

Ask your mortgage professional about a 203K loan.

A 203K loan is backed by FHA and combines the price of the house and the price of construction into one loan with one closing cost. The FHA 203K loan is great for helping you pay for a remodel of your current home, too.

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This might be too far gone for a 203K but you get the picture. It’s a loan for a fixer-upper.

There are a few fixer-uppers on the market in Oxford and Lafayette County. Some might need a lot of work, some just need a little updating.  If you’d like to see any for possible purchase, please let me know…I’ll be happy to show them to you. But first, talk to your mortgage company or mortgage department in your local bank for more information and to get pre-approved.  Sellers will take offers more seriously if you have been pre-approved for a loan when you place your offer.

Eileen Saunders, Realtor with Tommy Morgan Realtors, 2092 Old Taylor Road Suite 101, Oxford MS 38655, 662-404-0816/662-234-5344 Equal housing

photo credit: Broken House via photopin (license)

Paperwork Required for a Mortgage Application

When making a mortgage application in Mississippi the following documents are needed for loan approval.  Each person involved in the one loan needs to submit this documentation.

With the new laws taking place October 1, 2015 this list is subject to change so I will update it when I find out what you will need. For now, have the following ready for your mortgage lender:

  • Copy of each borrower’s drivers license
  • Copy of each borrower’s social security card
  • One month of pay stubs for each borrower
  • Last two years W2 forms for each borrower
  • Last two years tax returns and proof of income on all residents
  • Last two month bank statements: all pages numbered
  • Most recent 401K statements, money market and/or stock statements for each borrower

Be aware the additional documentation might be requested from the loan officer.

Eileen Saunders, REALTOR(r)~Tommy Morgan REALTORS(r)~2092 Old Taylor Road, Oxford, MS 38655~662-404-0816 or 662-234-5344~Equal Housing