[4] A Home Showing is a critical necessity for buying or selling

By Ed Westerman, Broker

Country Lifestyle Realty, L.L.C.

Text or Call:  417-844-2626

Contact me

One day while planning a home showing I thought of the many issues that can evolve from careless participants in a showing.  Sales can be lost.

I even once considered writing a book “Home Showing Etiquette.”  If I did the items below would be a small part of its contents.  Actually a Home Showing should be designed, narrated, and choreographed for “selling the home.”  Buyers, sellers, and real estate agents might want to review this before the showing.

No No’s [mistakes] to avoid while at a Home Showing

  1. It is best not to bring a guest; only buyer family and buyer/seller agents.
  2. If you do bring your children, watch them; they should not be touching sellers things.
  3. No pets; don’t bring you dog no matter how well behaved it may be.
  4. Raining, misting, or snowing; don’t go in without wiping your feet.
  5. Don’t be chewing gum or eating or drinking anything while in the home.
  6. No smoking or vaping inside any home you are viewing.
  7. This is not a pit-stop; no using the bathroom in the home you are seeing.
  8. Don’t sit on any of the beds.
  9. Don’t sit down on anything anywhere in the home unless you are invited.
  10. Don’t try to set or even touch the thermostat.
  11. Remember wall have ears so be very careful what you say.

Being professionals we will treat the sellers and their home with respect and we must remember there is a “sale” on the line here.  It is too soon to take possession, no matter how much you like the house.

Buyers, you will put your search and buy experience into success mode when you call me; I will work for you as “your buyer’s agent”.  You are not required to pay me; I get paid from the seller’s agent.  I can save you loads of time.  I will guide you thru every step; quickly but carefully.

Call or text me
@ 417-844-2626

Or contact me here.

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[3] What do Lenders look at when you apply for a home loan?

By Ed Westerman, Broker
Country Lifestyle Realty, L.L.C.
417-844-2626
email

Your Credit: Are you a good risk?

In today’s loan world, lenders will review your current credit report which shows your credit records past and present. The Lenders will look at all your payment history showing any current as well as delinquent payments. They will examine past dues carefully. Some items stay in your records from seven to ten years. Your past record, as well as your current credit score, will be used by the Lender determine what they might expect from you in the future.

Your potential mortgage lender must decide if you are “a reliable” borrower and likely to make payments on time. They will be looking at several different aspects of your finances beginning with your credit score and your credit history.

Your Debt; past & present

While a credit score of 640 is low by some standards, it is considered acceptable by many lenders. Specific requirements will differ from lender to lender.

Every time your debt is satisfactorily paid off, it adds to your credit score positively. The number of present active credit lines will also be considered. A person with two or more credit lines used regularly and kept paid on time and current can be a real plus for boosting your score.

Your future debt

Lenders will add their loan payment estimates to your current debt payments. You must be able to show all your current debts. They will be looking for debts on automobiles, credit cards, loans of any kind, including student loans, alimony, child support, and even the IRS.

If your existing credit line payments plus the bank loan payment is too great; you might be turned down. Your current debt balances can lower the amount of money a bank is willing to loan you.

What ever you do, don’t try to hide anything from your banker and don’t leave anything on your application unanswered.

Your Verifiable Income

Of course, lenders will want to know exactly how much money you make to be sure you can make payments each month. Lender will use their specific formula to determine the maximum loan amount they will consider. Usually your combined debt payments (including the new house payment) cannot exceed a certain percentage of one’s gross monthly income. Ask your current “lender to be” what their requirements are.
Lenders generally require a minimum 2 year work history in your current career field. If you must change jobs remember, lenders will look favorably when it is with the same company or in the same type work that is in your career field such as sales, auto mechanic and so forth.

Your realtor can help you obtain this type information, just ask.

Your Assets

Your assets will be looked at by a potential lender. Equity in real estate or personal property plus cash in your bank account will be considered. You will need enough cash to pay down payment (when required) and your share of closing costs. If you have someone helping you, any cash must be a gift not a loan.

You will likely be required to have a minimum amount in savings and in checking. The lender and/or type of loan can affect your cash requirement. Your lender can provide information on these requirements. Ask your agent to help find a Lender that fits your needs.

In Summary

It is possible to have too much available credit but not have the ability to make your mortgage payment. Sometimes a lender will lower the amount they are willing to lend a particular client because of repayment ability.

Remember, should you be turned down, you may find another lender willing to work with you.
Feel free to contact me. I have many years experience in representing clients with various credit and their dealings with lenders.

Ed Westerman
Text or call me @ 417-844-2626

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[2] Renting Vs Buying Your Home

By Ed Westerman, Broker
Country Lifestyle Realty, LLC

Your ownership investment may help you build wealth.

Owning and renting both have advantages. Your circumstances will likely help determine which you choose. Here are some things you will want to keep in mind as you weigh the benefits of renting Vs the benefits you will have as an of owner.

Budgeting is a must for either situation and will help you decide which is best for you. Over stretching your finances in either case can be very risky. Writing out your budget and financial savings goals will help you to focus on available choices. Perhaps doing a pro and con worksheet will help to see the better fit.

More things to consider….
There used to be a rule of thumb that said “renting is cheaper than buying” and therefore would allow other items to be in your budget. Nowadays, this is not necessarily so. The real estate and mortgage markets are much different than they were a few years back. Buying a home often requires more upfront money, but not always.   Let me help you do your homework.

I’m Ed, call me@ 417-844-2626.  I will help you find the facts as they relate to you. I  have over forty years experience in rentals and sales.

Posted in Buyers | Comments Off on [2] Renting Vs Buying Your Home

[1] The Mortgage Appaisal

By Ed Westerman, Broker
Country Lifestyle Realty, LLC
417-844-2626

Contact me

Sept 9, 2019

Appraisals can benefit both buyer and seller

Selling a home can be an anxious time.  It is a time when the sellers will have increased traffic thru their home; that of realtors, prospects, a home inspector, and then another, the appraiser.  If a mortgage is involved, the home appraisal is another critical component of selling or buying a home.  It can be a source of confusion for the Seller as well as the Buyer.

The appraisal is required by the lender and the mortgage appraiser is normally paid by the buyer as part of the mortgage process; however, it may be beneficial to the seller as well as if they compare the appraised value to their selling price.

Soon after the home is under contract the seller will be notified that the appraisal will be done shortly.  Not long before this there was the inspection which was paid for and conducted on behalf of the buyer.  Inspections are a detailed and very time consuming report on the condition of the home.  The appraiser, on the other hand, will look at your home from a completely different perspective; that of finding its fair market value for the mortgage company.

The appraiser will take loads of pictures and take measurements but focus only on the issues of value pertaining to the mortgage company requirements.  The appraiser’s job is to determine the market value for the home.  The mortgage company will then decide if the home fits their lending criteria, then in affect, they will approve or disapprove the loan which affects the purchase of the home.

When will the appraisal actually take place?

The mortgage company has the signed sale contract and has begun the approval process.  Usually a couple a weeks after the signed contract is submitted to the mortgage company they will notify an appraiser to do the work.  The appraiser will call the seller to set the appointment.  This effort is sometimes coordinated thru the real estate agents involved.

The mortgage appraisal being completed what comes next?

There are several major events involved in buying and closing of a home purchase.

Mortgage Company Qualifies the Buyer [better done before shopping to buy];   The offer to buy and agreement to sell; contract signing;  loan approval for a specific home;  the home inspection;  the house appraisal;  the title company prepares papers and loan closing date is set.

The appraiser will submit the appraisal to the mortgage company.  When the appraisal meets the lender requirements for the subject loan, both monetarily and property condition, then they can proceed with the loan.  Their underwriting department will contact the buyer and decisions will be made for the next step in getting to closing.

The market value indicated by the appraiser affects the next steps in the sale/closing process.  The mortgage company will provide a mortgage based on the appraiser determined value not the accepted sale price.  The appraisal result is critical to getting to the closing table.  The realtors and their clients will be anxiously waiting for the results.  All will be relieved when the appraisal comes back sufficient to allow the lender to approve the loan.

What if the appraisal value is short:  For example, if the sales contract price was $200,000 but the appraised market value was only $190,000 the buyer would be short $ 10,000 based on the signed sales contract.  But the contract is conditional on the loan so the buyer may have to come up with the difference.  The buyer can increase his cash contribution or the buyer may ask the seller to reduce the sale price.  Often it is the willingness to negotiate this critical step that determines the fate of this sale/loan.

The home condition will be indicated by the appraiser:

Appraiser will indicate conditions that may affect the loan.  Some loan types such as FHA, VA, and Others can be very strict on conditions such as paint.  When there are problems they may require repairs and a compliance inspection as well.

The appraisal result is critical to getting to the closing table.  The realtors and their clients will be anxiously waiting for the results.  Of course, all will be relieved when the appraisal comes back sufficient to allow the title company to complete the closing documents and schedule the closing with all parties.

Ed Westerman

Text or call me @ 417-844-2626

Posted in Buyers, Sellers | Comments Off on [1] The Mortgage Appaisal