Appraisals were very big news in the last real estate bubble. In that bubble, inaccurate and fraudulent appraisals led to lenders giving money based on insufficient -- and sometimes non-existent -- properties. As the bubble blew apart, stories of mortgages on burned-out or torn down properties emerged. This was not the norm, but there was
Buyers, you can do everything right and wind up with no house. How can that happen? Low appraisals. In the next three entries, I will explain what happens during the appraisal process and why you need to care. Of all the people who suffer a broken deal because of a low appraisal, the ones I
By Dave Twombly Earlier this week I had clients make an offer on a condo in West Somerville. It was a lovely place that was move in ready yet on a well traveled street. Knowing the market is hot our initial offer was about $30,000 over the asking price. As these are strong buyers, able
Sic Transit Gloria Paper Checks Ron Rothenberg 4 Buyers Real Estate Few industries have defended their attachment to paper as ferociously as real estate law. But the reign of paper may be ending, as digital contract signatures become more the norm than the exception. One piece of paper that hasn't gone away
My lender-friend, Amy Tierce, sent a video meant for lenders about the upcoming real estate year. Remember that their bias is that the more sales, the better. They are not so especially interested in whether you are getting a good deal on the house you are going to buy –that’s my job! The predictions
As of January 10th, new lending regulations make it mandatory that borrowers provide certain documents. Among those are proving current income and assets. For a salaried employee, a few pay stubs will work. A self-employed person or someone who doesn’t have a stable income because of varying work hours can use tax returns to show
I spoke with Elaine Manfredi at Wakefield Cooperative Bank. She reviewed the new regulations that went into effect on January 10, 2014. In short, lenders are being told they have to be consistent and check all borrowers completely. Ability to Repay (ATR) guidelines require all borrowers to provide at least all these things: Credit report
Mortgage pre-approval is an essential part of any offer. If you cannot show that you have already researched your ability to buy a property, you are not ready to offer money for it. This is common sense. But, not all pre-approvals are created equal. Experienced agents and agents in well-run offices know that some lenders
If you have a new year’s resolution to buy a house in 2014, here are some things you can do to smooth the path to getting a mortgage. The paperwork does not have to be overwhelming, if you are prepared. Avoid - unless absolutely necessary • Don’t transfer funds between accounts within 30 days of
As a house hunter, you are under no obligation to tell your lender that you are pregnant or plan to be pregnant. Pregnancy is not a legal reason for a lender to deny you a mortgage, unless your income changes in a way that makes you no longer qualified for the mortgage. I answered this