At Five Star Partnership, LLC is a full-service mortgage company located in Henderson, Nevada. We specialize in residential mortgages for primary residence and investors alike. Whether you are looking to relocate into the area or refinance your current property, we can help! At Five Star Partnership, our goal is simple: create lasting relationships with each of our clients so that we may continue providing excellent service many years down the road.
This article: There are three key questions you should ask yourself when you’re a first time home buyer”
If you can answer all three questions with “yes,” it may be time to consider homeownership. Verify your current national rates today! “Do I have a steady job and reliable income?”Before you choose to buy a home, you’ll want to be reasonably certain that you can make its monthly payment. You can’t know for Certain that your job or income won’t change — life happens, after all — but an objective analysis will go a long way. For example, if you’re planning to leave your full-time job in favor of self-employment, be aware that such a switch may be trickier than it appears. Related: First Time borrower? These are the guidelines There are risks in becoming self-employed. Mortgage lenders will require that you have at least one year of income before they approve you for a new job. Many new businesses fail just like new restaurants. Also, be aware of the fact that you will lose your guaranteed income if this role is taken on. Sometimes, attorneys who become partners in their firms overlook this point. While your annual income may increase in this new role, your guaranteed salary will not. Verify updated daily mortgage interest rates today! “Is my credit history reasonable?”You don’t need perfect credit to purchase a home. In fact, you don’t even need Great credit. A lender can approve you for a mortgage, even if your credit history includes foreclosures, bankruptcy, or short sales. But, you must have a good credit history. Don’t forget about the past. The past five to ten years back is history. What matters is how you’re managing your credit Today. Related: What are mortgage points and should I get them? If in the last six-to-12 months, you’ve kept credit card balances well below their limits, paid your creditors on time, and not added new accounts, you’re managing your credit well. This period should see a rise in your FICO (credit scores). It’s your most recent credit history that affects your credit score the most. Bad behavior can lower your score, while good behavior will increase it. Be aware of the amount of debt you already have before you purchase a home. Overloaded homeowners can make homeownership a difficult experience. “Am I prepared for homeownership?”When you’re thinking of buying a home, it’s important to think about your down payment — even if your plan is to use 100 percent financing. This is because thinking about a down payment forces you to think about your savings and, as a homeowner, you’re going to need your savings. It’s often overlooked that the cost of homeownership ranges higher than just your monthly payment. There are real estate taxes to pay, homeowners insurance bills to cover and, like with the homes you’ve rented in your life, things break. Related: How much Mortgage downpayment is required? Calculate your new home today Homes can be expensive to maintain — even the new ones. As a homeowner, you should plan to set aside 1.5 percent of your home’s value each year to cover the costs of maintenance and repairs. Some years, you will just a portion of what you’ve earmarked. Other years, you’ll use all of it. You should also make sure that your household savings accounts hold at least six months’ worth of living expenses, and preferably, twelve. Your household income can be affected by illness or job loss, which could affect your ability to pay your home. It’s important that you’ve set aside savings. Did you decide that you’re ready?The highest home values in the last decade are expected to rise. Today is a good day to be a homeowner because interest rates are at historic lows. Read original post here: https://reversemortgagesolutions.net/first-home-buyer-do-you-have-the-financial-resources-to-buy-a-house/
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FHA, USDA and VA appraisal rules.FHA loans and other government loans, like USDA and VA, may require appraisals and repairs before approval can be granted. Priorities for appraisal and repairs include:
You may need to make repairs before closing. Or, you might be able do them afterwards with an escrow holdback. Verify your new mortgage refinance rates. Government loans require appraisal repairsThe pros and disadvantages of government loans Eligible borrowers have many options, including USDA, VA, and FHA home loans. They have low down payments and rates. These make it easier for people with poor credit and first-time buyers. However, the rules can be complicated. FHA appraisals require that the home be appraised and inspected in accordance with FHA standards. The government sets stricter standards for this person. This may lead to the appraisal identifying areas in need repairs. That’s not a bad thing, because these items are primarily related to health and safety issues. For instance, if there is lead-based paint around, and you have toddlers, you don’t want them touching it. This is another indicator that appraisers will look for. It indicates your home could be at risk from termite infestation. Who wouldn’t want to know that before purchasing a home? Some sellers may object to these repairs being made before the sale is finalized. It may be necessary to renegotiate or purchase another house. What are the expectations when you apply for an FHA or VA loan? If repairs are necessary, be prepared. Also, inquire about any loan matters you don’t understand. You can still get a great deal with a government loan. But first, realize what’s involved. Government loans may need more repairsAn appraiser assessing a home to be funded via a conventional (non-government) loan has a fairly simple goal: determine the home’s value. They use a standard appraisal form. However, a home must be approved for a loan from the government to back it. HUD must approve the appraiser in order to be eligible for FHA-financed properties. The FHA appraisal requirements require that the appraiser perform two tasks: inspect and appraise the property. This appraiser has to use a different form that is more difficult. Related: Should I quit after a terrible home inspection? “It’s not enough for the home to meet all local building code and health and safety standards,” says Raul Pangalangan Professor of law, University of the Philippines. . “It also has to meet specific standards, set by the FHA, VA or USDA, regarding its condition.” Real estate lawyer and realtor Laura Schneider. The government is following rigid rules because it has to. “They’re intended to protect the lender’s interest in the property as collateral. It also protects the borrower’s interest in the property,” Schneider says. “FHA, VA and USDA want to make sure minimum property standards are met.” There may be additional repairsSome improvements that may be required include:
“The most common repairs for FHA loans involve the roof,” says Schneider. “FHA appraisal requirements mandate that a roof must keep moisture out and cannot have more than three roofing layers. Additionally, the attic must be inspected for roof problems.” Old paint is another tricky issue. Related: What to expect on home inspection day. “If the home is over 40 years old, it may have lead-based paint,” Schneider says. “If that paint is chipping or peeling, that could lead to a costly repair. A professional remediation company needs to be hired.” Dodge mentions that USDA, VA and FHA each have different standards. Each loan type may also have its own appraisal and inspection form. The bottom line: if the home doesn’t meet minimum government standards for safety, security and structural soundness, “it will have to be repaired or you won’t get the loan,” Pangalangan says. Who is responsible for repairs?In the past, it was the seller who had to make and pay these repairs before closing. It can now be the seller or buyer. This depends on what’s specified in the purchase contract. A purchase agreement that includes an inspection clause usually contains some type of repair contingency. For instance, the seller may be responsible for completing repairs up to a certain value — say $2,000. One of three possible outcomes can occur if the repair costs exceed that amount:
“Say the buyer has time before he or she needs to take possession of the property. In this case, asking the seller to resolve the repair problems is often the best approach,” suggests Pangalangan. But if the buyer lacks the time or is unsure of the seller’s ability to make repairs quickly and to the government’s satisfaction. “Then, they might want to request an escrow holdback,” says Pangalangan. “This allows the buyer to make repairs themselves after closing.” An escrow holdback means some of the seller’s proceeds won’t be released to the seller. Instead, the escrow officer funds the contractor as the work is complete. FHA loans require that repairs be completed within one year. “But if the repair is a substantial improvement like a new roof or furnace, you may have to agree on a new purchase price,” he says. If you’re responsible for repairsConsider changing to an FHA203(k), if your repairs are severe, a mortgage modification. This product can be used to finance repairs and any additional improvements, as well as to establish your loan amount. Your down payment must still be 3.5 percent. Related: FHA mortgage loan modification How do you pay for necessary improvements? These tips will help you: Don’t rely on repair estimates made by the appraiser. “Get the inspection results and learn what repairs are needed. Then, get bids on repair costs from contractors experienced in making repairs that meet FHA, VA or USDA standards,” Schneider says. Set aside extra money. “The exacting standards of these agencies can make for expensive repairs,” Schneider adds. You can negotiate a price drop with the seller. FHA provides additional support. “Pursue renovation funds from the FHA’s 203K program,” says Pangalangan. Separate property inspection. “Don’t just rely on the appraisal inspection,” Schneider says. “Too often uneducated borrowers rely on the appraiser’s report only to learn other things are wrong when they move in.” FHA-required repairs can add some complexity to your home purchase but they will ensure that your home is safe and habitable. And that’s never a bad thing. Read original post here: https://reversemortgagesolutions.net/fha-va-usda-home-loans-have-appraisal-requirements/ Your home inspection checklistA home inspection is a way to find out if your house is in good condition. Here’s what to expect on Verify your home buying eligibility with our “Home Affordability Calculator”. What to expect during a home inspectionThe home inspection is your last chance as a buyer of a home uncover defects with the house — and potentially get the seller to pay for them. Before sealing the deal and going to escrow. You want to be able to tell the seller what the inspector will see. Here’s what to expect during a Home inspection
Don’t be concerned with the number of defects listed on your report — many will be so minor you won’t bother fixing Instead, focus on the severity of the home’s issues. Some problems can prove to be a deal-breaker. Talk to your real estate agent and your home inspector if you find serious problems. What are the main things home inspectors look out for?Here’s a full list of what
Clearly, the inspector isn’t going to tear your home apart to inspect piping and wiring. However, the inspector will have more information to complete his final report. What you should expect from a home inspection
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