first time home buyers arapahoe country: Home Insurance and Mortgage Insurance - 02/01/21 02:53 PM
     Many homeowners with mortgages pay for both types of insurance but only one of them protects the owner.
Homeowner's insurance covers damage to your property and losses from fire, burglary, vandalism, and other named natural disasters.  When an insured has a loss, they file a claim with the insurance carrier which would be subject to the deductible mentioned in the policy.
If the homeowner has a mortgage on the property, the lender will require that the borrower carry adequate insurance on the property and name the lender as an additional insured.  This protects the lender that the home will continue to … (0 comments)

first time home buyers arapahoe country: Pre-Listing Inspections - 01/11/21 10:16 PM
  Imagine what happens when there is not a pre-listing inspection.  The buyer contracts for the home with a provision for professional home inspection.  When it is made, there could be things that the buyer didn't expect or even, anticipate.  If it doesn't trigger an action to terminate the contract, the buyer will inevitably, ask the seller to make all the repairs.
When presented with the buyer's request, the seller may take the opposite position of not wanting to do any of the repairs.  The buyer could accept the property in its "as is" condition or negotiate the repairs or a reduced price with the … (1 comments)

first time home buyers arapahoe country: Where Did the Assumptions Go? - 12/16/20 10:08 AM
  Mortgage assumptions have not been a practical matter for the last 30 years because mortgage rates have been on a steady decline.  Even if the seller had a rate lower than the current rate, the new purchaser must qualify to assume the loan. 
In the case of conventional loans, the lender has the right to increase the rate to the current rate which neutralizes the reason for assuming the loan.  This change took place in the early 1980's when lenders added due on sale provisions so lower rates could not be assumed.
FHA and VA loans can be assumed at the existing … (1 comments)

first time home buyers arapahoe country: More Time at Home - 12/01/20 01:51 PM
  We are all spending more time at home and will probably need to continue to do so for a while longer.  Depending on the makeup of your family, your home is now a home office, a gym, a virtual classroom and considerably more meals have been prepared in your kitchens in the past six months than normal.
Some businesses have undergone a metamorphosis that has shown them that maybe they do not need the big commercial spaces for their employees.  They realize that they can be just as productive with their work force offsite which will cut expenses.
If this scenario sounds … (3 comments)

first time home buyers arapahoe country: Moving "Down" in an "Up" Market - 11/09/20 02:48 PM
  Selling a home and buying a lower priced home that meets your current needs can be to your advantage in an "Up" market like the current one with low inventory.  The advantage is that you can maximize the price for the home you're selling and not have to reinvest it all in your replacement.
Just to illustrate the point, let's say there is a 10% premium in the sales price of a home currently.  If you're selling a home for $750,000, it would be $75,000.  If you replaced the home with a $500,000 home, the premium would be $50,000 which means you're $25,000 … (0 comments)

first time home buyers arapahoe country: Some Mortgage Interest May Not be Deductible - 11/01/20 11:22 AM

first time home buyers arapahoe country: Forbearance is Not Forgiveness - 08/24/20 04:43 PM
Forbearance is a temporary postponement of mortgage payments.  The lender can grant this option to a borrower instead of forcing the property into foreclosure.  The CARES Act provides protections for homeowners with mortgages that are federally or Government Sponsored Enterprise backed or funded such as FHA, VA, USDA, Fannie Mae and Freddie Mac.
A mortgage holder should contact the lender to explain the temporary difficulty they are having making payments and ask for relief under forbearance or other options.  Once the lender grants approval, it is important for the borrower to get the terms of the forbearance agreement in writing to be clear about … (0 comments)

first time home buyers arapahoe country: Your Rate Depends on your Score - 01/21/20 02:37 PM
  Most homebuyers probably know that their FICO mortgage score can determine whether they qualify for a loan, but they may not be aware that it can determine what interest rate they'll pay.
The same $300,000, 30-year, fixed-rate mortgage can have a principal and interest payment that ranges from as low as $1,340 or as high as $1,619 based on this recent picture in time.  The variable is the FICO score of the borrower.  Use this calculator to see current rates and your loan amount.
While you can get a conventional mortgage with as low as a 620 FICO score assuming the rest of … (4 comments)

first time home buyers arapahoe country: Mortgage Lock-in - 01/14/20 04:29 PM
  A mortgage lock-in is a lender's agreement to hold a specific interest rate for a stated period for a loan at the prevailing market interest rate.  This provides the borrower some protection against the interest rates going up during the lock period.
If you think the rates are going down, the advantage would be to "float" and take advantage of the lower rate.  If you think the rates are going up, you could lock when you apply or when the application is approved.  Some buyers are marginally qualified at the current rate and if the rates go up, it could keep them from … (5 comments)

first time home buyers arapahoe country: Selling it on Your Own - 01/03/20 08:13 PM
  The trend in homeowners successfully selling their own home has declined from 15% in 1981 to only 8% in 2019.  In the 2019 Profile of Home Buyers and Sellers, six out of ten sellers knew the buyers who were predominantly a friend, relative or a neighbor. 
The fact that these sellers knew the buyer was mentioned as the main reason to sell as a for sale by owner. In these situations, the time on the market was usually less than a week and sellers reported that they received 101 percent of the asking price.  76% of the sellers who knew the buyers … (4 comments)

first time home buyers arapahoe country: 7 Reasons to Buy a Home - 11/18/19 03:07 PM
7 Reasons to Buy a Home11/20/2019 Some people don't need a reason to buy a home, they just want it.  That can be enough justification by itself.  Other people need some solid logic before they're ready to make the commitment.  The following reasons might help you to make a decision.
Pride of ownership ... among the most popular reasons given by homebuyers is that they want a place they can call their own and decorate and improve it the way they want.  It is a place to feel safe and secure and a place for their family.  They can share it with their friends and enjoy … (2 comments)

Patty Clark, Helping Families Move with Care (Morningside Homes, LLC 720-231-5200)

Patty Clark

Helping Families Move with Care

Denver, CO

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Morningside Homes, LLC 720-231-5200

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