ONE-OF-A KIND PROPERTIES

If a seller can’t provide other comparable sales within the past year, buyers, who need to obtain a mortgage, most likely will encounter difficulties. Fannie Mae and Freddie Mac require comparable sales in order to confirm the value of the property. So, unless you are paying cash and are willing to accept the price without any supporting data, you may be denied for the amount of a mortgage that you request, no matter how strong of a borrower you may be.

SUBMITTING PAPERWORK IN PIECES

The mortgage process is intrusive and grueling. We have processed loans for over 30 years, and in 2024, it has not gotten any easier. We provide detailed checklists upfront based upon the information we are given. The best practice by purchasers is to provide all of the information at one time at the very beginning. Consumers who resist this and insist on sending items piecemeal do themselves a disservice because it is likely that they will be requested to send additional items in pieces. Those borrowers often forget what they sent and complain about the number of requests, even though the requests are simply requests for the same information that was on the initial checklist. If our company receives all of the information up front, we can then, in short order, let you know what is missing and if new items are necessary because we discover new facts that impact the loan application. We advise borrowers, that once we submit the documentation and application to the underwriter, they may be asked for additional information and when possible, we give them a “heads up” on what to start working on so that deadlines for approval and closing can be met. If you are looking to purchase a home, a good practice is to get a checklist of what will be needed and start to work on collecting that documentation during your search.

BUYING A FLIPPED HOME

With the shortage of homes on the market (largely because sellers with low-rate mortgages don’t want to give them up for a higher rate) contractors have jumped into the market and are largely attracting first time homebuyers who don’t have a home to sell and low rate to give up. The contractors look for homes in disrepair and purchase them with the sole purpose of rehabbing them and selling them. Buyers, especially first-time buyers, who are not familiar with the costs of home ownership, should understand a few things. For one, these home were most likely not well maintained by the prior owner ( for any number of reasons) and may have significant underlying issues. The contractor, never intends to live there and is motivated by profit versus living long term in the house and investing perhaps more money to take care of issues that are likely to appear down the road. Those contractors, arguably, can deny knowledge of issues that a buyer may discover years later and proving that knowledge in court is challenging due to, at least in part, the passage of time. Furthermore, the entity that sold the buyer the home may no longer be in business or be judgment proof. Our suggestion for buyers of these properties is to dig deep and pay extra for inspections that could uncover significant issues, especially related to the structure of the house. We know that these additional expenses are burdensome but finding out about the issues two or more years down the road that cost tens of thousands of dollars will be much more painful.