Life In Wake Forest NC.....

Sorry that you invested your time and expense on your clients but right now I have a lot of other files I have to deal with.  Basically they just said: So sorry I blew your purchase but I'm too busy... to care.

On more than one occasion this has resonated from loan officers discussing a file "gone bad".  Not completely their fault, they usually work for large institutions that push volume over quality.

Hiring the wrong loan officer in a purchase transaction can cost you big.  The buyer, seller, real estate agents and escrow company stand to lose if the financing doesn't materialize or is delayed.  Refinances by nature don't require as much diligence.

Purchase transactions must be handled differently than refinance loans because of time constraints and legal consequences.

Let's look at a few:

In real estate purchase transactions the buyer will pay an earnest money deposit as consideration to make a contract valid.  If the loan portion is not handled correctly and in a timely fashion the buyer can lose their earnest money.

Buyers potential losses:

Earnest money

Cost of home inspection

Cost of home appraisal

Cost of any buyer paid repairs

Loses home purchase

May have to find alternate living arrangements

May have to find storage for personal items

May lose deposit to a moving company

Sellers potential losses:

Loan delays will require more contract negotiations/ addendum

Property removed from market

Potential valid buyer refuses to make a back up offer

Longevity of listing makes property less appealing

May be in contract to buy another home- and must carry two mortgages

May lose deposit paid to a moving company

Buyers real estate agent:

Loan delays will require more contract negotiations/ addendum

Must begin a new home search

More time and expense of driving to view properties

Potential loss of credibility with client (They often blame everyone in the transaction)

Loss of commission

Sellers Listing agent:

Cost of re listing property

Time spent to market property

Time spent to re negotiate contracts

Perceived property issues due to longevity of listing

Loss of commission

Escrow / Title Company:

Time spent preparing title insurance

Expense of ordering title report

Time and expense of sending paperwork to all parties

Loss of profit from closed transaction


We don't pre qualify buyers based solely on their credit and income.  We do a comprehensive analysis of the buyers ability to get a loan.  We protect the buyer, seller, agents and the reputation of our industry by doing the work up front. 

  Need a lender specializing in purchases?

State and local government agencies involved in the provision of housing may obtain FHA insured financing provided the agency meets the following criteria:

The agency must provided evidence from its legal council that:

The agency has the legal authority and capacity to become the borrower.

That the state or local government is not in bankruptcy.

That there is no legal prohibition that would prevent the lender from obtaining a deficiency judgment  (if permitted by law for other types of borrowers) on FHA's behalf in the event of foreclosure or deed in lieu of foreclosure.

Credit reports, financial statements and bank statements are not required for these agencies to qualify.

Feel free to contact us with any FHA or mortgage related questions.

View Part 1 of this series

View Part 2 of this series

Non profit organizations, state and local government agencies are permitted to purchase properties using FHA financing.

They are eligible for the same percentage of financing available on owner occupied properties.

Non profit agencies may only obtain FHA insured fixed rate mortgages.  Only an existing FHA mortgage is eligible for rate and term refinancing.

Conditions

Non profit organizations that intend to sell or lease the property to low or moderate income individuals may use FHA financing on rental property.  The appropriate HOC is responsible for determining the non profit agency's eligibility to participate in FHA programs.

To qualify to purchase properties with FHA financing HUD must approve the non profit agency.

The non profit agency must meet these conditions:

1) Be of the type described in Section 501(c)(3) as exempt from taxation under Section 501(a) of the IRS of 1986 and

2) Have a voluntary board.  No part of the net earnings of the organization or funds from the    transaction may benefit any board member, founder, contributor or individual.

3) Have two years experience as a provider of housing for low and moderate income persons.

A non profit agency that doesn't meet these requirements including religious organizations may only purchase properties using FHA financing when the jurisdictional HOC sells the property and allows it.

With permission from the appropriate

Home Ownership Counseling Center 

aka:HOC, private investors including non profit organizations may obtain FHA insured mortgages for the following reasons:

When the jurisdictional HOC sells the property and permits the purchaser to obtain FHA-insured financing on the investment property.

Streamline refinancing without appraisals are designed to lower the monthly principal and interest payments on a current FHA-insured mortgage and the borrower may not receive cash back, except for minor adjustments at closing not to exceed $250.  Streamline refinances can be made with or without an appraisal. 

Conditions

1. Adjustable rate mortgages and graduated payment mortgages are not allowed on investment properties.

2. Except for streamline refinances in which the mortgage was originally insured in the name of a business, FHA will not insure loans made solely in the name of a business entity (such as a corporation, partnership, or sole proprietorship) or trust.  One or more individuals, along with the business entity or trust, must be analyzed for credit worthiness.

Feel free to contact us with any FHA or mortgage related questions.

View Part 2 of this series

View Part 3 of this series

For the most part buyers make decisions on a purchasing a home from the emotional side.

• What will it be like for their family growing up there?
• Can they start a family there?
• What will the Holidays be like?
• Will their possessions find their rightful place in the home?
• What will dinner time be like?
• Will little Suzie or Johnny like the back yard?

Smells and scents are one of the biggest influences that impact emotional responses.  When you have showing scheduled on your home for sale be sure that it not only LOOKS fantastic but that it also SMELLS inviting and welcoming! 

Here are some simple tips and reminders for making sure that your home passes the "Sniff Test":

• IF you smoke or have a smoker in the house don't allow smoking in your house for weeks leading up to showing it
• Find a pet-sitter for a few days, and clean, clean, clean!
• Consider doing some baking prior to showings. The scent of fresh apple pie is hard to beat when it comes to creating the atmosphere of a welcoming home!
• If weather permits open the windows for a few hours to allow the fresh air in and the stale air out!
• If you know there is a showing scheduled for the next day it is best not to prepare fish or an dish heavy on spices the night before.

Empty the trash!

If you are in a real pinch, here is one trick that always works for me.

Mix a little water with vanilla extract, brown sugar and a few cinnamon sticks. You can either place in a pot on the stove and simmer or place in the oven on WARM. Beautiful aromas will soon fill your home making it inviting and pleasant!

 

 

 

 

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Welcome to Wake Forest NC!

Live, Love, Work and Play...

And the Surrounding Towns and Cities of Youngsville, Franklinton, Creedmoor, Raleigh, Oxford, Louisburg, Knightdale, Wendell, Garner, Cary, Apex & Holly Springs

Leesa Finley the "Wake Forest NC House Chick"

Circa Properties

919-649-6128

To Search for Homes for Sale in Wake Forest NC please visit
www.LeesaFinley.com

    

 

 

 

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