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Homes in FEMA Disaster Areas Require Pre-closing Inspections

Real Estate Agent with RE/MAX Distinctive / LIC in VA

November 06, 2012 04:45 AM

If you have a closing scheduled after Hurricane Sandy, check with your lender to see who should do the pre-closing inspection. Lender, appraiser, or borrower. If you notice damage, consider asking your home inspector to come back and do another inspection. Are there water stains on any of the ceilings? Are the carpets wet below any of the windows? Is any siding or shingles missing? Is anything wet in basement? Are any circuit breakers kicked to off? Those are just a few things to check. If you are required to sign an affidavit, would you feel comfortable signing one without doing the inspection first?

Presidential Mortgage Update

November 2, 2012

Rates down a little

The weekly Freddie Mac 30 year mortgage rate survey reported that the average rate went down a couple ticks to 3.39% from 3.41%. Stronger economic reports during the week and a better employment report prevented much improvement. The Federal Reserve’s daily mortgage security purchases make predictions day to day difficult. Traders are always evaluating data and what it means for continued FED action. Last year at this time the average 30 year rate was 4%. Mortgage interest rates remain at very attractive levels for home purchases and refinances. The Mortgage Bankers Association reported that mortgage application volume declined 4.8% from the week before. Again this week, the purchase mortgage share of the index increased. The average rate for 15 year conventional loans decreased to 2.70% from 2.72%. Average rates are quoted with a .6-1 discount point fee.

Points of interest for you and your clients

Hurricane Sandy caused homes in FEMA declared disaster areas to require a pre-closing inspections. Depending on the program and investor these inspections can be completed by the appraiser, lender, or borrower. Properties not in designated areas may still require inspections or affidavits signed at closing pertaining to the property condition. Anytime there is a major storm or disaster in an area, lenders will require homes to be inspected prior to funding a mortgage.

Info provided by www.melnickmortgage.com