The New Year

Real Estate Agent with Coldwell Banker Bain

Well; we finally made it to 2012! The political climate is choppy at best; the economy is showing some signs of recovery, and of course, we have those who are predicting the end of the world!  So what is changing for the New Year? Only everything!

I am a REALTOR, so of course I am interested in the changing housing market.  The good signs I am seeing have to do with the lowest interest rates in history; the continuation of the FHA ruling allowing investors to flip homes for another year and a growing job market that will allow more people to buy their own home.

The down side (there always is one) is that getting a new mortgage or even refinancing a mortgage is very difficult and seems to be getting harder every day.  Here are few things I have noticed that will make getting a mortgage a little easier for you.

1.       Make sure you have at least 2 years of continuous of employment history.

2.       Forget the 640 credit score, the lenders say it is good, but the underwriters want higher.

3.       Make sure you know what the qualifications are for your home if you are going FHA or USDA.  (They are very strict and not the same as a conventional loan. Go to this link for a government break-down of what to expect. .)

4.       It is much harder to get a rehab loan then it is to get a loan for a move in ready home.

5.       The owner does not always pay closing costs. (Sometimes they will pay part if they are motivated.)

6.       The average down payment in 2011 was about 12.5%.

If you are selling your home, you want to get the best price possible; however if you are like millions of other American home-owners your home has been devalued over the last several years and you owe more than it is now worth. There are several programs and organizations out there whose intentions are good and what to help home owners get out from under these upside down loans.

I have nothing against any of these organizations, but if want to sell your home and are upside down then should try going to your lender and ask them to counsel you on what is best for your situation.  Each situation is different and there is no quick fix. Since I am a REALTOR and not a mortgage professional, that is the only thing I can guarantee.

The coming year is going to bring a lot of changes to the Real Estate market, we are all in it together and I have faith that we will overcome as America has previous recession and depressions.

Your personal real estate professional can help you find the answers or where to go for the answers, all you need to do is ask.



Comments (1)

Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland

Great tips on preparing for a loan and a reality check for some people. 

Jan 09, 2012 12:35 AM