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Sumit Rajpal's Blog - Allied Mortgage Group, Inc.

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5952728 - conifer christmas wreath with pine cones at doorThe busiest home buying seasons are spring and summer. Summer is an ideal for many people and families to make a move and settle in before fall, the start of school and the holidays. But there can be some advantages to shopping for a home in the winter.

In the winter, you’ll typically have less competition from other buyers. That means you may be able to avoid the multiple-offer situations and bidding wars many buyers have experienced in the spring and summer months. The selection of available properties probably will not be as large as it is in spring and summer, but the owners of the homes that are on the market in winter are often more serious and motivated to sell.

No matter what time of year you decide to look for your new home, a real estate agent can be a valuable partner in the home buying process, helping you understand what to expect and guiding you through the home-buying process.


How VA appraisals work

Nov 21
5:40
AM
Category | General

85569344 - 3d illustration of bricks house over white background with moneyCongratulations! You are using your VA loan benefit to buy a home.

Once you are under contract on a home, the lender will tell you that there needs to be a VA appraisal ordered. People usually have many questions about appraisals. The following are some of the most common ones we receive along with their answers.

Are appraisals inspections?

No, an appraisal by Veteran Affairs (VA) is not an inspection of the home. It is simply an assessment of the value of it.

Are they required?

Yes, to use a VA loan, you must have a VA appraisal performed.

How is the value of the home determined?

The VA appraiser will consider the construction, condition, age of the home and the property values of neighboring homes. The appraiser will look at three homes in the area that are similar in size and age. For some locations, it can be difficult to find three comparables, so there are instances where they will only use one.

What if the VA appraisal comes back lower than the purchase price contracted?

There are some options if the VA appraisal comes back lower than the home’s purchase price stated on the contract.

1. The buyer can pay the difference between the amount the appraiser has valued the home and purchase price.

2. The buyer can negotiate with the seller to lower the purchase price.

3. The buyer can request switching the loan to a conventional one and have another appraisal performed.

Will the VA redo an appraisal?

No, the VA will only do one appraisal even if the value of the home is less than what the buyer believes is accurate.

What else does the appraisal do besides ensuring the purchase price is fair?

The appraiser assesses the home to make sure it meets VA and lender guidelines. These guidelines include the property being safe, which means it is safe structurally and free from health hazards.

Some other guidelines include:

  • Is the property a residence?
  • The property should be big enough to be able to live in it.
  • The electrical and plumbing systems should be in working order.
  • Heating system should be connected and working.
  • Water supply should be connected, working and meet all local and federal standards for quality.
  • The roof should be free from missing shingles and holes.
  • There can’t be any problems, such as mold or leaks, in the basement or crawl spaces.
  • The property needs to have access from the street by driveway or walkway.
  • No termites, lead-based paint or poor construction.

Keep this in mind: A VA appraisal is for the buyer’s benefit. It protects the buyer (that’s YOU!) from overpaying for a home or purchasing one that may have serious issues that could end up costing thousands of dollars to repair. The information from the appraiser can be used to decide if you would like to continue with the purchase of the home or if you would be better off finding another home. Have more questions? Allied Mortgage Group can help.


12668018_SEver hear the terms REO, bank-owned, short sale or HUD home? And have you even wondered what the heck all those terms mean? Here are some definitions used to describe common types of distressed properties:

Foreclosure: This refers to the process of a lender taking possession of a property from an owner who isn’t paying their mortgage as promised. After the process of foreclosure is completed and the homeowner has left, the property is offered for sale at auction.

REO or bank owned: The terms REO – short for the term “real-estate owned” – and “bank-owned” both refer to properties that are owned by banks. Properties gain that distinction after they go through foreclosure and fail to sell at auction. Adding to the confusion is that REOs and bank-owned properties are often called foreclosures. REOs, or bank-owned properties typically are offered for sale by real-estate agents and sold in “as-is” condition, meaning any repairs will be up to the buyer.

Short sale: This term refers to a property being offered for sale by a homeowner who owes more on their mortgage than their home is worth. Because the seller is asking a bank to accept less than they are owed, the bank is involved in the sale process and ultimately must give final approval to the selling price. That makes short sales some of the most complex and time-consuming real estate transactions.

HUD home: Still with me? This term refers to a home that was originally purchased with a loan insured by the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development, or HUD. The FHA guarantees loans made by private lenders, so if a borrower defaults on an FHA loan, the agency will pay off the lender and take responsibility for the property. At that point, the property becomes a “HUD” home and is offered for sale in much the same way as a bank sells an REO.


20067797_SReady to buy your first home? Your first step is to visit a mortgage lender to see how much house you can afford. But be prepared for the paperwork that comes with it. Here are the documents you’ll be asked to provide as part of the loan application process:

Rental payment history. If you’re a first-time home buyer, you’ll need to provide proof that you paid your rent on time. Your lender can tell you how to document this payment history.

Tax returns. You will likely be asked for two or three years of tax returns with all the attached schedules and documents.

Paychecks, W-2s and other income documentation. Start with at least a month’s worth of paychecks, plus W-2 forms for you and your spouse. Do you have income from other sources? Include documentation for any freelance work, self-employment income and child support payments as well.

Account information. Your lender will want to see checking and savings account statements for at least one month. You may be asked for any other account statements as well to document your down payment funds and money you have set aside in savings.

Remember, the more quickly you respond to requests for documentation, the more quickly your loan application can be processed!


46796187_MEight seconds.

Not much time, right? But that’s how long you have to catch a buyer’s attention when selling a home. So, you’ve got to make those seconds count from the moment a prospective buyer arrives on your property.

It’s not just about selling your home quickly. It’s also about fetching the highest price possible.

Properties that look nice and smell nice inevitably sell for more money than comparable homes with cluttered closets, dishes in the sink and dandelions speckling the front lawn. So, how do you get your home ready for a potential buyer? Here are some tips that will help you make a good first impression.

Let’s start with the outside:

  • Curbside appeal: Believe it or not, the cleanliness of your street and sidewalk matter when it comes to selling a house. Keep the pavement in front of your house free of litter – even if it takes a sweep – and remove any weeds that may be growing up through the cracks of your sidewalk.
  • Fresh paint: Even if you don’t want to spend the money to paint the entire house, there are a couple places that will pay off in dividends if you can afford a few gallons of paint. When it comes to making a good first impression, there’s no better place to start than with the fence. Give it a fresh coat. You should also think about the front door, shutters and even lamp posts to send a message that you care about details.
  • Landscaping: No buyer will be impressed by an overgrown, or weed-infested, lawn. Keep the yard looking nice by mowing the grass, weeding flower beds and clipping any hedges.

Now for the inside:

  • Lighten up: Make sure your house looks as bright as possible. Light is a proven seller. So keep the windows clean, replace any burned-out light bulbs and even use mirrors to help magnify the feeling of light and space.
  • Color scheme: Although you may enjoy decorating in orange or lime green, avoid those colors when selling. Look for neutral colors that allow buyers to better picture themselves in the home.
  • Clean, clean and de-clutter: Make sure your potential buyer isn’t distracted by a gallon of milk on the counter, dust bunnies beneath the couch or knickknacks piled high on your shelves. Focus on making your home look big, clean and desirable.

Does that help? If you have any questions, don’t hesitate to call.


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