May 23rd, 2013
This week, we’ll start with five home renovations with the best return on your investment. Then we’ll list four questions that a lender may ask you that may seem incredibly personal. And finally, we’ll wrap up with how to buy a home when the inventory is tight.
A recent study byRemodeling magazine and the National Association of Realtors found that not all renovations are created equal when it comes to resele value.
Spring is the favorite time to start a home improvement project, so if you’re starting to plan, here’s some projects to consider:
You can download the study here.
And don’t forget to read our other blog post on remodeling.
Don’t be surprised if you get asked these questions:
Seems a bit odd, doesn’t it? But there are some really good reasons why they ask.
So, working back upwards. They want to see that you’ve been in your profession for a few years to show stability. Even if you haven’t been able to find a job in it due to the economy, you will appear more credit worthy than someone who zips around from career to career.
Number three seems a little backwards, but government agencies want to ensure that you’re not discriminated against for ethnicity and race. So that’s why they ask.
Number two is essential in states which have community property laws. If you’re only separated, you could still be held liable for your spouse’s debts, thus making it difficult to pay your mortgage if you’re having to pay their credit card debts.
And the number one question was on the list for similar reasons: if you are held liable, it could impact the amount of money you have available to pay back a mortgage.
Existing home sales in April were at the highest pace since the homebuyer tax credits caused the market to spike in November 2009. In fact, there probably would have been even more home sales due to the low interest rate if there wasn’t such a lack of inventory.
Zillow is reporting that inventory is down 14% compared to last year. However, they maintain that this inventory will be easing over the next few months.
Of course it depends upon where you live, and where you want to buy.
Do yourself a favor and get pre-approved with a reputable loan officer. That way, you’ll know exactly how much you can afford when you place your offers, and you will be a stronger candidate since you already have financing.