Tuesday, February 19, 2013

Getting the Home Loan - Why It Takes So LONG to Close

  There are several reasons it may take what seems like ages for your home to close.   Today I am going to discuss one of those reasons: Mortgage Loan Underwriters.  Before the housing bubble, underwriters were careful to judge the worthiness of a loan (or were supposed to ).  However, they were making judgements on the information they were given and in the short time allowed to examine that information.  What did they want to know?  Your credit worthiness, your job history, and the value of the property.

Fast forward to today, underwriters still want to know those three things.  However, the information is examined carefully and throughly.  Indeed, some lenders now have three seperate underwriters for each loan; one handling credit, one for employment, and one for appraisal info.  Just imagine the delays possible with three underwriters and their maternity leaves, ill parents, vacations, etc. 

To further complicate the lending process some lenders, primarily large banks, are outsourcing their underwriting to other countries.  If there is anything about the property that might not be easily seen on paper by the underwriter, have your agent contact the lender or appraiser with the information.  For instance, if all the other homes in an area are at a premium price, but this property is on a busy road, it should generally be appraised for a bit less.

Isn't real estate about local??  I digress.

Keeping all this in mind, it is easy to see how final approval for your loan can take weeks.  In the meantime, DO NOT BUY ANYTHING ON CREDIT.  DO NOT CHANGE JOBS.  And breathe. :)

One possible way to shorten the length of closing?  Buy local.  Use a credit union or regional lending instution. 

Thursday, February 7, 2013

Laundry room before-and-after: This whole room was DIY-ed top to bottom for only about $150!
Here is a perfect example on how spending a little time and money can result in selling your home faster and for more $$$$.  Thanks to AlongTheWay.com for sharing these photos.

This laundry area could be the detail that sells the house, especially in a subdivision where there is little to differentiate one home from another.