Happy Thursday. We hope you have fun plans for the long weekend coming up.
Are you planning one last barbecue? Some good hikes?
For today’s mortgage news roundup, we have both sides of flipping houses, a
list of repairs every new homebuyer should make (and established ones should
re-read to see what you’re missing), and an update on the government easing
restrictions for down payments.
Repairs Every New Homebuyer Should Make
Just bought your home and not sure where to start?
Here’s a list of maintenance and repairs you should do before
move in and up to annually.
Move-In Week
Make it a point to turn on all of your major appliances and let them run for
a complete cycle, especially if your home is newly built. Believe it or not,
contractors and home inspectors don’t always test out these devices after
installing them.
It’s important to find out if the appliance was properly installed. A leak
left undetected can become a nightmare. You should also read your home warranty
to understand your rights and responsibilities should anything go wrong.
Read the article for more suggestions at 45 days, and 6 months. They also
have suggestions for annual maintenance and every other year that you should put
on your calendar or tickler file.
As they say, don’t put off small repairs because when you do,they get big and
far more expensive very quickly.
15 Cities Where House Flippers Are Making Tons of Money
Have you ever thought of being a home flipper? This article on Yahoo Finance
lists the
15 best cities where people are making the most money flipping
houses. Not surprisingly, the majority of places are in Florida.
You can read the
full report on Realty Trac and see how California is doing
specifically.
Buying a ‘flipped’ home? Be careful
On the flip side (sorry, couldn’t resist), there are a lot of flipped homes
on the market. MarketWatch has an article on
what a home buyer should be aware of before buying a home that was
bought cheaply and fixed up.
Current flipping activity is at its highest since RealtyTrac began tracking
it in 2007. How do you make sure you don’t buy a home that has been renovated
cosmetically, with serious underlying issues beneath the fresh paint?
- Find out who did the work
- Hire a good home inspector
- Look for structural problems
- Ask for and verify the permits
Government relaxes mortgage down payment rules
CBS News is reporting that
the Government is relaxing mortgage down payment rules.
The proposed new Qualified Residential Mortgage rule, released jointly by six
government agencies, was cheered by both consumer advocates and mortgage
industry members–who typically don’t see eye-to-eye on much–largely because it
eliminates much stricter down payment rules that the previous version of QRM
would have created.
The six agencies–the Federal Reserve Board, the FDIC, the Federal Housing
Finance Agency, the Department of Housing and Urban Development, the Office of
the Comptroller and Currency and the Securities and Exchange Commission–are
taking comments on the proposed changes through the end of
October.
Under the old rule, the requirement was going back to a 20% downpayment. The
new rule will have the mortgage lender evaluate the applicant on an individual
basis.
Many of those comments attacked the original QRM rules. The proposed changes,
on the other hand, are causing nearly universal joy to ripple through housing
and mortgage groups.
“This new proposal shows that regulators listened to the comments from the
wide range of stakeholders involved,” said Chris Estes, president and CEO of the
National Housing Conference, an affordable housing advocacy group. “Aligning the
QRM rule with the QM rules will allow more American families to become
homeowners and ensures that housing markets can remain strong in the future.
This is especially important for communities that are still rebuilding from the
foreclosure crisis.”
If you have questions about eligibility for a mortgage, talk to a
professional loan officer. They diligently study the news and market and stay on
top of the interest rate trends. They also are in touch with many lenders to
find the best package for your situation.