When you review your mortgage statement every month you are reminded of something called mortgage insurance. For a FHA loan it is called MIP, Mortgage Insurance Premium. Removing MIP on a FHA loan is a different animal than removing it from a conventional loan. Market appreciation does not enter into the equation at all. To see what option are available, continue reading.
It all started with searching the internet for that dream house, then getting prequalified and uploading bank accounts, tax returns and more. This was followed by viewing properties day after day, then submitting an offer, probably multiple offers to get the house you want. Not that you endured that process, you finally got the keys and it’s time to schedule the long awaited move-in. If you’re wondering if that’s the end of the road read on. There are a few more things to do after closing.
In this seller favored market, buyers requiring a loan are looking for ways to compete with cash offers which have two distinct advantages. One is there is no unfulfilled loan contingency and the second is there is nno appraisal contingency. In an attempt to remove concerns over the appraisal coming in under the purchase price, buyers are using an appraisal contingency waiver. This means the buyer will make up any shortfall between the purchase price and the appraisal value which has some significant risks. To learn more, keep reading.
A written agreement to move into a house prior to the close of escrow can be know as a pre possession agreement, pre-closing occupancy or early move in agreement. Regardless of the name, this addendum allows the buyer to move in prior to the buyer owning the home. This adds additional risk for the seller. Agents have a responsibility to advise their clients to seek professional counsel prior to entering into a pre possession / pre closing occupancy agreement.
One of the least understood costs that a buyer will encounter when purchasing a house are buyer closing costs. In part, this is because buyer closing costs come from different sources. There are lender fees, prorations for taxes and home owner’s insurance as well as funding the escrow account, title and escrow charges, title insurance, and HOA fees such as transfer and capital improvement fees. To understand the details, continue reading.
Chances are if you are a homeowner in the Phoenix area, you’ll become familiar with HOA’s because the majority of homes are part of a HOA. The rules that home owners agree to abide by are called Covenants, Conditions and Restrictions (CC&R’s). These restrictions regulate various aspects of home ownership, such as leasing or renting, vehicle parking, architectural guidelines, animal and pets, and so on. Becoming familiar with the CC&R’s before you purchase a homes is a wise decision. Also find out if the HOA is attempting to exercise more control than it should.
In order to make your home buying experience as successful as possible it is critical to avoid costly home buying mistakes. This is especially true since buying a home will be the most expensive purchase a buyer will make in their lifetime. Keeping these potential mistakes in mind will benefit a buyer as they navigate the home buying process. To learn more about the most common buying mistakes, read on…
Why is a Cash Offer Better?
Have you heard the investors give you their pitch that they’ll give you an “all cash offer”? And then you wait for the other shoe to drop and find out how much below market value the “all cash offer” will be. What is it about a cash offer that merits a discount and elevated status? When I’ve asked both buyers and sellers they say , “well it’s cash and they can close fast”. However, you may have a serious buyer with a competitive offer that wants to stand out from the crowd. So it is important to understand the contractual benefits of a cash purchase. To find out, watch the video below:
A/C Refrigerant Transition is Continuing
Air conditioning systems are continuing to transition to more environmentally friendly refrigerants, phasing out R-22 commonly known as Freon. Since January 1, 2010 any newly installed A/C systems had to use refrigerants such as R-410A, likely known by the brand name, Puron. Another benchmark change is coming up in the near future. To learn more, continue reading and watch the video to understand it’s impact.