February 27th, 2010 categories: Julie's Mortgage Tips
As each month goes by there is always a new wrinkle in the mortgage business. It may be new forms. It may be higher credit scores. It may be new appraisal rules. It may mean more of a down payment. It may mean a more expensive mortgage insurance. The FHA loan is making a big comeback as it may be cheapest route if the condo association can be approved.
This means that less people can buy homes or condos. It is getting harder by the month to get purchasers qualified for a loan. As a seller or buyer you need to start the process earlier and learn what to expect from a lender. Sellers need to know how their property can be financed. The buyers need to know as there are more and more forms to fill out and hurdles to overcome.
Lenders– They have much more work to do on each loan. Most have more time on their hands as many are just not busy. Many have dropped out of the business. Experience does matter in 2010. They need to have to condo experience as its gotten harder. Staying with a local office is highly recommended as the entire work can be done within the company. Ask for the people who are busy, there is a reason.
Sellers of Condos- Sellers need to see if their complex can be on the FHA list that will attract more buyers as the down payment and fees tend to be lower. You as a seller cannot wait but need to be proactive especially if the majority of the condos on the association are less than 300k. Your condo can just be more competitive to the buyer. The new rules took effect Feb. 2010. The federal government has not put many on the list in the last 15 years where people actually want to live. Think ahead and ask questions.
Condo Buyers– Start early and know the kind of loan you are getting. Give yourself more time to complete the process. Add ten days to get the deal done. Knowing the steps to purchasing is essential to a successful purchase. An agent with experience is more essential than ever. First time buyer, second home buyer, and move up buyer its all different in 2010. Do not rely on luck !