Will I be able to find out the results of the appraisal?
Under new rules, home mortgage borrowers now have the right to a copy of the complete appraisal documents the lender used to decide whether or not to approve your loan. You may also see any in-house reports that affected the market value assigned your home.
Send for information.
Your lender may automatically send you a copy, but if not, you have 90 days to write for the appraisal after the lender informs you of the decision on your loan application.
As professionals, we are familiar with the real estate rules and regulations that might have you stymied. We’ll be happy to work with you and help eliminate any confusion about the home buying experience.
If we contract to buy a home for a higher price than the appraisal, can we get our deposit money back if the loan falls through?
Consider adding a clause in your purchase offer that makes your offer contingent upon obtaining acceptable financing. Then, if financing is unavailable to cover your purchase offer because of a low appraisal, you can renegotiate your offer with the seller to meet the appraised price, or find another house.
What is a two-step mortgage?
Good news. A two-step loan helps a buyer really dance! Although the traditional 30-year mortgage is still the most widely-used home financing, a relatively new variation on the theme is gaining popularity:
With our experience, we can give you tips that will help you through the mortgage maze phase of home buying. Call or e-mail us for information specific to your needs.
How does a “no-cost’ loan work?
More accurately called a “no upfront-cost” loan, a “no-cost” loan is a mortgage that wraps the closing costs – such as application and credit check fees as well as appraisal and other settlement charges – into the loan amount. These expenses are often paid by including the costs into a larger total loan amount and charging a higher interest rate on the whole loan.
The no-cost loan could be a useful alternative for:
Another way to go is to pay the points and any other deductible closing costs in cash at settlement to secure the tax deduction. Usually this also means a lower interest rate, and therefore lower interest cost over the life of the loan.
What do you advise in the event I’m turned down for a mortgage?
If you’re denied a mortgage, try, try again.
Here’s help for renters and other buyers who may have had difficulty getting mortgage money:
How strict are lenders when it comes to credit standing?
Lenders give some leeway for lateness. Is your credit less than perfect? You may still meet a lender’s guidelines for a mortgage. All credit flaws aren’t equal, and some are overlooked more easily by lenders. The most important items are: