Thursday, January 27, 2011
Wednesday, January 26, 2011
Check out my new real estate blog ent...
Check out my new real estate blog entry titled "No permit? No loan!" at http://ow.ly/3KzSF
Check out my new real estate blog ent...
Check out my new real estate blog entry titled "No permit? No loan!" at http://ow.ly/3KzSF
Check out my new real estate blog ent...
Check out my new real estate blog entry titled "No permit? No loan!" at http://ow.ly/3KzSF
No permit? No loan!
We all know that borrowers are being more closely scrutinized than ever before. What you should also keep in mind is that the property is also being examined more thoroughly than ever. Whether the mortgage is for purchase or refinance, the property must have a building permit(s) if there is evidence the property has been worked on. This is a potential deal killer that must be taken seriously and should be addressed at the beginning.
A classic example is a house that was built with an unfinished basement that is now finished. Appraisers these days will look at the county assessor records and compare it with the present condition of the property. If the information does not match, permits will be required which might be a rather odorous process. Some of the things to look out for besides the basement that is now finished are: attached garages converted to a living area, multiple bedrooms that were converted to one bedroom, and additions to the basic property footprint.
Yes, I have seen permitted work that was rougher than a boar's ass sewed up with a logging chain and non permitted work that was flawless and met all the codes. But it does not matter. You need the permit(s). Nothing slips by today.
Smart real estate agents check this out before listing a property or having a client bid on one. Smart loan officers who care about the client (I know this is rare but there are a few) will also check this out when initially talking to a borrower about a loan.
Your comments and questions are always welcome.
Best, Chip
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS # 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
A classic example is a house that was built with an unfinished basement that is now finished. Appraisers these days will look at the county assessor records and compare it with the present condition of the property. If the information does not match, permits will be required which might be a rather odorous process. Some of the things to look out for besides the basement that is now finished are: attached garages converted to a living area, multiple bedrooms that were converted to one bedroom, and additions to the basic property footprint.
Yes, I have seen permitted work that was rougher than a boar's ass sewed up with a logging chain and non permitted work that was flawless and met all the codes. But it does not matter. You need the permit(s). Nothing slips by today.
Smart real estate agents check this out before listing a property or having a client bid on one. Smart loan officers who care about the client (I know this is rare but there are a few) will also check this out when initially talking to a borrower about a loan.
Your comments and questions are always welcome.
Best, Chip
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS # 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Tuesday, January 25, 2011
Check out my latest blog post titled ...
Check out my latest blog post titled "Geothermal Is HOT" at http://ow.ly/3JUZx
Check out my latest blog post titled ...
Check out my latest blog post titled "Geothermal Is HOT" at http://ow.ly/3JUZx
Check out my latest blog post titled ...
Check out my latest blog post titled "Geothermal Is HOT" at http://ow.ly/3JUZx
Geothermal Is HOT. By Dan Polimino.
In the last several years, you have been hearing a lot about the "Green Movement." That means finding ways to be more energy efficient while having a minimal negative impact on the environment. Former Colorado Governor Bill Ritter made green energy a priority in his four years on the job, as is Obama's administration. On the Real Estate front, builders have gotten into the game by constructing homes with green materials like recycled carpet, tiles, 50-year composite roofs, LED lighting, and more efficient heating and cooling systems.
One of the systems that should be getting more publicity that really saves money and saves the environment is geothermal energy. Up to this point, we haven't heard a lot about it and I think it is for two reasons. Not a lot of people know exactly how it works to heat a home, and many builders as well as consumers were frightened off by the potential cost. The reality is that the technology has come along so fast that geothermal is a real option for home owners right now and its cost is more affordable than ever before.
First, here's how it works and I'll keep this to simple layman's terms. Depending on where you live and the home you are building, a contractor will need to determine how far to drill into the earth's crust in order to tap into the right amount of heat. Just below the surface, the earth maintains a constant temperature of about 50 degrees, but drill down several hundred or a few thousand feet and things really start to heat up. It's at that point where you can utilize the earth's steam and water. A homeowner would then install what they call a heat pump. That pump would circulate air or water through the pipes down through the earth. It then would be heated by the earth's steam or water and sent back to the surface at the heat pump. That hot air or water then would be used to heat the house in a variety of ways.
According to the California Energy Commission, the cost to install a geothermal system including the drilling is about $17,000. That would get offset by the savings and the tax breaks from the government. Energy experts estimate that the geothermal systems can save up to 70% off the cost of traditional heating methods. Plus the government is offering a tax credit of up to 30% of the cost of the system for those units installed before 2016.
In the final analysis, this seems like a win-win for everyone. The government helps with the costs, you save each month, the environment is protected, and you have an endless supply of energy to efficiently heat your home.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
One of the systems that should be getting more publicity that really saves money and saves the environment is geothermal energy. Up to this point, we haven't heard a lot about it and I think it is for two reasons. Not a lot of people know exactly how it works to heat a home, and many builders as well as consumers were frightened off by the potential cost. The reality is that the technology has come along so fast that geothermal is a real option for home owners right now and its cost is more affordable than ever before.
First, here's how it works and I'll keep this to simple layman's terms. Depending on where you live and the home you are building, a contractor will need to determine how far to drill into the earth's crust in order to tap into the right amount of heat. Just below the surface, the earth maintains a constant temperature of about 50 degrees, but drill down several hundred or a few thousand feet and things really start to heat up. It's at that point where you can utilize the earth's steam and water. A homeowner would then install what they call a heat pump. That pump would circulate air or water through the pipes down through the earth. It then would be heated by the earth's steam or water and sent back to the surface at the heat pump. That hot air or water then would be used to heat the house in a variety of ways.
According to the California Energy Commission, the cost to install a geothermal system including the drilling is about $17,000. That would get offset by the savings and the tax breaks from the government. Energy experts estimate that the geothermal systems can save up to 70% off the cost of traditional heating methods. Plus the government is offering a tax credit of up to 30% of the cost of the system for those units installed before 2016.
In the final analysis, this seems like a win-win for everyone. The government helps with the costs, you save each month, the environment is protected, and you have an endless supply of energy to efficiently heat your home.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Geothermal Is HOT. By Dan Polimino. > Your Voice > Blogs > Denver > YourHub.com http://ping.fm/1ZnK1
Thursday, January 20, 2011
Exclusive Equestrian Site of 154 acres in Colorado > Your Voice > Blogs > Parker > YourHub.com http://ping.fm/5iASS
Wednesday, January 19, 2011
Check out Denver Real Estate Weekly M...
Check out Denver Real Estate Weekly Market Update titled "Real Estate Inventory and Price Points in Denver, CO" at http://ow.ly/3Dg0E
Check out Denver Real Estate Weekly M...
Check out Denver Real Estate Weekly Market Update titled "Real Estate Inventory and Price Points in Denver, CO" at http://ow.ly/3Dg0E
Check out Denver Real Estate Weekly M...
Check out Denver Real Estate Weekly Market Update titled "Real Estate Inventory and Price Points in Denver, CO" at http://ow.ly/3Dg0E
Real Estate Inventory and Price Points in Denver, CO > Your Voice > Blogs > Denver > YourHub.com http://ping.fm/lcGbH
Tuesday, January 18, 2011
Check out my new real estate blog ent...
Check out my new real estate blog entry titled "Three Perspectives...Which Is Yours?" at http://ow.ly/3FNdq
Check out my new real estate blog ent...
Check out my new real estate blog entry titled "Three Perspectives...Which Is Yours?" at http://ow.ly/3FNdq
Check out my new real estate blog ent...
Check out my new real estate blog entry titled "Three Perspectives...Which Is Yours?" at http://ow.ly/3FNdq
Three Perspectives...Which Is Yours? By Dan Polimino.
Here we are, only three weeks into the New Year and already my phone is ringing off the hook with that old familiar question, "Dan, what is the real estate market going to do this year in Denver?" Just three weeks ago, I wrote a column entitled, "New Year's Forecast." In that column, I addressed seven points from jobs to short sales and what I thought had to happen in 2011 for a significant recovery. If you would like to go back and re-read that column, you can at www.coloradodreamhouse.com/news.
I won't take time here to reiterate the same points from a few weeks ago, but I do think that we should look at the same topic from three different approaches: the pessimist, the conservative, and the optimist.
1) The pessimist will obviously say that 2011 will be no better than 2010. They'll point out the fact that the market will not get better until there are more jobs and in the case of the luxury home market, they'll point out the large amount of inventory and years of recovery. A pessimist will probably conclude that it will continue to bump along the bottom of the market, seeing some improvements in some quarters of the year and some downturn in other quarters, and they'll concede that most of the success, if any, will be in the lower price ranges. This group of people will not be buying or selling.
2) The conservative will say that it will be a slightly better year. They'll point out the Bush tax cuts being extended, low interest rates, and lower prices on most market segments. They'll say that these factors are reason for optimism, but their enthusiasm will be blunted by the lack of jobs, a sluggish overall economy, and the ever increasing concern for the national debt. This group will make some moves in buying or selling, but they will be slow and calculated.
3) The optimist will say that 2011 is going to be a great year. They'll point out the new leadership in Washington and they'll be excited about the possibility of the newly elected officials getting federal spending under control. They'll say that it will translate to more consumer confidence, more spending, and more people buying homes. They'll also think that the Bush tax cuts will stimulate the economy and they'll argue that there continues to be a pent up demand from home buyers. They'll be hopeful on the loosening of credit and new regulations regarding a quicker process on short sales.
So there you have it. Three different points of view on what's going to happen in the real estate market this year. Which one is right, and which two are wrong? I've already stated what I think three weeks ago. I'll ask you, the readers, to tell me which camp you fall in. After I tally the responses, I'll tell you what the majority of people think about the forecast for 2011.
I won't take time here to reiterate the same points from a few weeks ago, but I do think that we should look at the same topic from three different approaches: the pessimist, the conservative, and the optimist.
1) The pessimist will obviously say that 2011 will be no better than 2010. They'll point out the fact that the market will not get better until there are more jobs and in the case of the luxury home market, they'll point out the large amount of inventory and years of recovery. A pessimist will probably conclude that it will continue to bump along the bottom of the market, seeing some improvements in some quarters of the year and some downturn in other quarters, and they'll concede that most of the success, if any, will be in the lower price ranges. This group of people will not be buying or selling.
2) The conservative will say that it will be a slightly better year. They'll point out the Bush tax cuts being extended, low interest rates, and lower prices on most market segments. They'll say that these factors are reason for optimism, but their enthusiasm will be blunted by the lack of jobs, a sluggish overall economy, and the ever increasing concern for the national debt. This group will make some moves in buying or selling, but they will be slow and calculated.
3) The optimist will say that 2011 is going to be a great year. They'll point out the new leadership in Washington and they'll be excited about the possibility of the newly elected officials getting federal spending under control. They'll say that it will translate to more consumer confidence, more spending, and more people buying homes. They'll also think that the Bush tax cuts will stimulate the economy and they'll argue that there continues to be a pent up demand from home buyers. They'll be hopeful on the loosening of credit and new regulations regarding a quicker process on short sales.
So there you have it. Three different points of view on what's going to happen in the real estate market this year. Which one is right, and which two are wrong? I've already stated what I think three weeks ago. I'll ask you, the readers, to tell me which camp you fall in. After I tally the responses, I'll tell you what the majority of people think about the forecast for 2011.
Three Perspectives...Which Is Yours? By Dan Polimino. > Your Voice > Blogs > Denver > YourHub.com http://ping.fm/HaqqO
Monday, January 17, 2011
Check out my new blog entry titled "H...
Check out my new blog entry titled "How long after a short sale before I can purchase?" at http://ow.ly/3F4Y0
Check out my new blog entry titled "H...
Check out my new blog entry titled "How long after a short sale before I can purchase?" at http://ow.ly/3F4Y0
Check out my new blog entry titled "H...
Check out my new blog entry titled "How long after a short sale before I can purchase?" at http://ow.ly/3F4Y0
How long after a short sale before I can purchase?
HUD has issued the following guidelines (ML 09-52) for a homeowner who wants to obtain a FHA mortgage after a short sale or short payoff:
* Borrowers who were current on their mortgage and all installment debts at the time of the short sale ARE eligible for a new FHA mortgage, if the short sale served as payment in full on the mortgage in place.
* FHA will insure a first mortgage where the existing note holder(s) write off the amount of the indebtedness that cannot be refinanced into the new mortgage due to a decline in property values and/or reduction in income.
* Borrowers are NOT eligible for a new FHA loan if they pursued a short sale to take advantage of declining market conditions and purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.
* Borrowers in default at the time of the short sale or pre-foreclosure sale are NOT eligible for a new FHA mortgage for three years from the date of the pre-foreclosure sale.
Conventional mortgages have much longer waiting periods. "Hard money" lenders are also an option. Hard money lenders offer loans to people with poor credit histories. The good news is a borrower does not have to wait to buy. The bad news is at least a twenty-five percent down payment, double digit interest rates, and high fees.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
* Borrowers who were current on their mortgage and all installment debts at the time of the short sale ARE eligible for a new FHA mortgage, if the short sale served as payment in full on the mortgage in place.
* FHA will insure a first mortgage where the existing note holder(s) write off the amount of the indebtedness that cannot be refinanced into the new mortgage due to a decline in property values and/or reduction in income.
* Borrowers are NOT eligible for a new FHA loan if they pursued a short sale to take advantage of declining market conditions and purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.
* Borrowers in default at the time of the short sale or pre-foreclosure sale are NOT eligible for a new FHA mortgage for three years from the date of the pre-foreclosure sale.
Conventional mortgages have much longer waiting periods. "Hard money" lenders are also an option. Hard money lenders offer loans to people with poor credit histories. The good news is a borrower does not have to wait to buy. The bad news is at least a twenty-five percent down payment, double digit interest rates, and high fees.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
Sunday, January 16, 2011
How long after a short sale before I can purchase? > Your Voice > Blogs > Denver > YourHub.com http://ping.fm/9956N
Thursday, January 13, 2011
Check out Denver Real Estate Market U...
Check out Denver Real Estate Market Update for this week titled "Don't Let The Price Get in The Way" at http://ow.ly/3Dg0E
Check out Denver Real Estate Market U...
Check out Denver Real Estate Market Update for this week titled "Don't Let The Price Get in The Way" at http://ow.ly/3Dg0E
Check out Denver Real Estate Market U...
Check out Denver Real Estate Market Update for this week titled "Don't Let The Price Get in The Way" at http://ow.ly/3Dg0E
Wednesday, January 12, 2011
Spanish Style Villa in Castle Rock, Colorado > Your Voice > Blogs > Castle Rock > YourHub.com http://ping.fm/00BX8
Tuesday, January 11, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog titled "Vote Compromise For 2011" at http://ow.ly/3BP4I
Check out my latest real estate blog ...
Check out my latest real estate blog titled "Vote Compromise For 2011" at http://ow.ly/3BP4I
Check out my latest real estate blog ...
Check out my latest real estate blog titled "Vote Compromise For 2011" at http://ow.ly/3BP4I
Vote Compromise For 2011. By Dan Polimino.
I met a guy named Curt the other day he told me that he and his wife just celebrated their 55th wedding anniversary last Thanksgiving. He seemed so proud and had a smile on his face from ear to ear as he told me about the life he has shared with his wife. I have only been married 10 years so I felt compelled to ask him the one question that I am sure everyone wants to know, "How did you make it 55 years in marriage?" Curt looked at me straight in the eyes and mentioned one word...compromise. I wish it was more than that. I was hoping for some secret recipe, some insight I hadn't heard before, or some sexy, savvy solution known only to a few, but the answer was...compromise. So feeling completely unfulfilled, I asked him if he could give me a good example. He said he was getting to ready to move out of his hometown and went to say goodbye to his girl. As he was walking out the door to move away, she stopped him and said, "Don't leave." They discussed marriage, but she was a strict Catholic and he was Protestant. She told him she would marry him, but SHE MUST be married in the Catholic Church. He said, "I'll marry you in a Catholic Church, but our kids must be raised Protestant." She told him he had a deal and they have been compromising for the last 55 years.
I guess the point is simple - it doesn't matter if we're talking about marriage, deciding on a vacation spot, what to have for dinner, or even selling real estate. It seems that in life, the best road to travel is compromise. Curt's story reminded me that if we are going to make progress this year to sell more homes, close more deals, and put buyers and sellers together, we might want to consider the word compromise as this year's mantra. Let's call this year's theme, "Vote Compromise in 2011." Maybe if we adopt this philosophy as sellers, buyers, and real estate agents, we'll make it a banner year in sales. After all, it has to be better than the alternative of the all-out slug fest, win-at-all-costs mentality that so many have had over the last two years. Some of you may be saying, "But Dan, we have been compromising and that's the only reason we've gotten some deals done at all this past year." That may be true, but I can tell you firsthand that some people have still not gotten the message and until we all do, I think we are going to continue to bump along the bottom this year with a few peaks and a few valleys to sum up 2011.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
I guess the point is simple - it doesn't matter if we're talking about marriage, deciding on a vacation spot, what to have for dinner, or even selling real estate. It seems that in life, the best road to travel is compromise. Curt's story reminded me that if we are going to make progress this year to sell more homes, close more deals, and put buyers and sellers together, we might want to consider the word compromise as this year's mantra. Let's call this year's theme, "Vote Compromise in 2011." Maybe if we adopt this philosophy as sellers, buyers, and real estate agents, we'll make it a banner year in sales. After all, it has to be better than the alternative of the all-out slug fest, win-at-all-costs mentality that so many have had over the last two years. Some of you may be saying, "But Dan, we have been compromising and that's the only reason we've gotten some deals done at all this past year." That may be true, but I can tell you firsthand that some people have still not gotten the message and until we all do, I think we are going to continue to bump along the bottom this year with a few peaks and a few valleys to sum up 2011.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Vote Compromise For 2011. By Dan Polimino. > Your Voice > Blogs > Denver > YourHub.com http://ping.fm/xyQqp
Monday, January 10, 2011
Check out my new blog entry titled "S...
Check out my new blog entry titled "Short Sale vs. Foreclosure" at http://ow.ly/3B8GO
Check out my new blog entry titled "S...
Check out my new blog entry titled "Short Sale vs. Foreclosure" at http://ow.ly/3B8GO
Check out my new blog entry titled "S...
Check out my new blog entry titled "Short Sale vs. Foreclosure" at http://ow.ly/3B8GO
Friday, January 7, 2011
Attractive Luxury Home in Parker, Colorado
Nestled among the pines, this five bed, six bath, 9,750 square-foot home boasts a beautiful open floor plan with five bedroom suites and six and half baths artfully woven together with old-world Mediterranean style. From first sight of the soaring cathedral ceiling of the Grand Entry, plenty of airiness and natural light distinguishes the spacious feel of this home and evokes a brightly genial atmosphere. This home is unique in the sense that it is built in a style to accommodate either the family with separate bedroom wings for the children or the empty nester/retiree looking for their final purchase in a home.
Call Dan Polimino at 303-522-1161 or Gary Lohrman at 303-829-5900 for a private showing.
For more details check out http://www.coloradodreamhouse.com/featured/property.php?id=11
Thursday, January 6, 2011
Check out Denver Real Estate Market U...
Check out Denver Real Estate Market Update for this week titled "What To Expect In Real Estate for 2011" at http://ow.ly/3zogH
Check out Denver Real Estate Market U...
Check out Denver Real Estate Market Update for this week titled "What To Expect In Real Estate for 2011" at http://ow.ly/3zogH
Check out Denver Real Estate Market U...
Check out Denver Real Estate Market Update for this week titled "What To Expect In Real Estate for 2011" at http://ow.ly/3zogH
What To Expect In Real Estate for 2011
http://ping.fm/aDwQy Fuller Sotheby's agent Dan Polimino talks about what people can expect from the real estate market in Denver, Colorado this coming year.
What To Expect In Real Estate for 2011 > Your Voice > Blogs > Denver > YourHub.com http://ping.fm/pfnEC
Wednesday, January 5, 2011
Attractive Luxury Home in Parker, Colorado
Nestled among the pines, this five bed, six bath, 9,750 square-foot home boasts a beautiful open floor plan with five bedroom suites and six and half baths artfully woven together with old-world Mediterranean style. From first sight of the soaring cathedral ceiling of the Grand Entry, plenty of airiness and natural light distinguishes the spacious feel of this home and evokes a brightly genial atmosphere. This home is unique in the sense that it is built in a style to accommodate either the family with separate bedroom wings for the children or the empty nester/retiree looking for their final purchase in a home.
Call Dan Polimino at 303-522-1161 or Gary Lohrman at 303-829-5900 for a private showing.
For more details check out http://www.coloradodreamhouse.com/featured/property.php?id=11
Attractive Luxury Home in Parker, Colorado
Nestled among the pines, this five bed, six bath, 9,750 square-foot home boasts a beautiful open floor plan with five bedroom suites and six and half baths artfully woven together with old-world Mediterranean style. From first sight of the soaring cathedral ceiling of the Grand Entry, plenty of airiness and natural light distinguishes the spacious feel of this home and evokes a brightly genial atmosphere. This home is unique in the sense that it is built in a style to accommodate either the family with separate bedroom wings for the children or the empty nester/retiree looking for their final purchase in a home.
Call Dan Polimino at 303-522-1161 or Gary Lohrman at 303-829-5900 for a private showing.
For more details check out http://www.coloradodreamhouse.com/featured/property.php?id=11
Attractive Luxury Home in Parker, Colorado > Your Voice > Blogs > Denver > YourHub.com http://ping.fm/CZECZ
Tuesday, January 4, 2011
Check out my latest real estate blog ...
Check out my latest real estate blog titled "The Purple Cow" at http://ow.ly/3xXXg
Check out my latest real estate blog ...
Check out my latest real estate blog titled "The Purple Cow" at http://ow.ly/3xXXg
Check out my latest real estate blog ...
Check out my latest real estate blog titled "The Purple Cow" at http://ow.ly/3xXXg
The Purple Cow. By Dan Polimino.
We have all watched and been affected by the rapidly changing landscape of lending over the last two years. Sometimes, the new restrictions and precautions can be maddening and sometimes, they are just laughable. More than once in the last two years, I have heard this statement come out of a buyer’s mouth, “Why does the lender need that information? It has nothing to do with the loan.” In most cases, that buyer is correct. The requests that come from the lender (more importantly, underwriters) have gotten more bizarre with each passing day and usually, they have nothing to do with the loan or the buyer’s credit worthiness. Here is a fine example.
A buyer had an 800-plus credit score, made well into the six figures, had no debt, and was placing 20% down payment on a moderately-priced home. The appraiser noted that the house had a breezeway between the home and a detached two-car garage. At some point, the breezeway was enclosed. The underwriter saw these notes and requested that a permit be added to the file, showing that a “permit” was pulled with the county for the breezeway enclosure construction. In fact, the underwriter would decline the loan if they could not produce a permit showing that the construction was legal and conforming. The problem was that the enclosure was completed two sellers ago. The current seller didn’t do the construction nor did the previous seller. So what did they do? The current seller went down to the county and thankfully found a permit that was pulled for the breezeway back in 1973, and was able to produce the permit to close the deal.
What did the permit have to do with this guy’s ability to pay back the loan? Answer: Absolutely nothing! You see, we are living in a paranoid state of lending. Every underwriter in this country is worried about approving a loan and maybe missing something. Missing something to the extent that the loan eventually goes in default, thereby reflecting badly (or termination for that matter) on the lender and the underwriter that approved it.
What’s the take home message here? Bizarre, weird, outrageous and yes, sometimes stupid requests for documentation from lenders will not end anytime soon. In fact, it may get even worse. I have started telling my buyers not to be surprised if the lender calls two days before closing and says, “We need you to bring a purple cow to closing to make this deal fly.” So be prepared for what the lender may ask from you to close your loan… it may just be a purple cow.
Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost
Click here to Get started searching for YOUR Colorado Dream Home.
Monday, January 3, 2011
Check out my new blog entry titled "A...
Check out my new blog entry titled "A Hidden Benefit of FHA Loans" at http://ow.ly/3xp4s
Check out my new blog entry titled "A...
Check out my new blog entry titled "A Hidden Benefit of FHA Loans" at http://ow.ly/3xp4s
Check out my new blog entry titled "A...
Check out my new blog entry titled "A Hidden Benefit of FHA Loans" at http://ow.ly/3xp4s
A Hidden Benefit of FHA Loans
No one can predict where interest rates will be in the future. If rates shoot up sharply, homeowners who purchased or refinanced during this time of historic lows with a FHA mortgage may have an advantage when they go to sell. Imagine you are selling your home that has an assumable mortgage with a 4.5 percent interest rate and the comparable properties require a new mortgage with current rates of 6.5 percent.
FHA loans are assumable by QUALIFYING owner occupants. This means that a potential buyer would approach the existing mortgage holder and be approved to take over the mortgage. The original borrower would be released from liability and would be allowed to get another FHA mortgage. While VA loans may also be assumable by a qualified party, the original note holder's VA eligibility is tied up and they may not get another VA loan until the original one is paid off. This is why I counsel VA mortgage holders to be very, very careful about letting someone assume their mortgage.
I have recently heard people being told they could assume mortgages without notifying the existing lender. The logic is that mortgage companies are happy to get a payment and will not call the mortgage. I vehemently disagree with this and feel it is extremely bad advice. My recommendation is always play by the rules.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Colorado Mortgage Broker License # 100019831
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
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