mortgage (Photo credit: 401(K) 2013)
I think most of us know that we must continue to pay our bills, even after receiving a loan pre approval letter from a lender, but many people assume that the lender has approved them and start neglecting their finances.
Generally, a pre-approval letter is valid for 90 days after you receive it. Most have a disclaimer that if anything changes before the settlement, it could impact your pre-approval. After 90 days most lender will issure you a renewal letter, after checking your finances again, and doing another credit check.
#2 DON’T MAKE ANY MAJOR PURCHASES.
When you buy furniture or appliances with credit, your lender will have to factor in the added new payments to your debt to income ratio, which might result in a cancelled or delayed loan settlement. If you pay cash, will you still have the money for the down payment, and any cash reserves?
#3 DO NOT PAY OFF ALL OF YOUR DEBT.
After getting a pre- approval letter, every move you make with your money will have an impact, so consult with your lender before doing anything. Even if you pay off your credit card debt, it can hurt you if you close out your account or reduce your cash reserves. We’ll also need to know where the money came from to pay off the debt.
#4 DO NOT CO-SIGN ANY LOANS FOR ANYONE.
Borrowers sometimes assume that co-signing a student loan or a car loan won’t affect their credit, but it is considered a new debt for both signers, especially when its a new loan. Most lenders will require at least 12 months of cancelled checks that show only the co-signer is paying the new loan. Payments made against the new loan will also have to be calculated as part of your debt to income ratio.
#5 DON’T CHANGE JOBS.
Try not to change jobs after getting a pre-approval letter. Even if it seems like a great move to you, a lender will have to re-verify you employment and you may have to provide one or two pay stubs, which will delay the settlement.
#6 DON’T DELAY ANY REQUESTS FROM THE LENDER.
If the lender recommends something you need to do,or provide, follow their directions and do it, ASAP. Always provide requested documents as soon as the lender asks for them. If you delay providing any requested item, it will delay the closing of the loan, or settlement.
#7 STAY CURRENT ON ALL EXISTING ACCOUNTS.
Continue to pay all of your bills on time and make sure that you don’t incure an overdraft on any account. If you make payments on some accounts with automatic billing to a credit card, do not change the procedure. Your preapproval is a snapshot in time, and you want to make sure that your finances stay as close to that snapshot as possible.
#8 KEEP RECEIPTS and GOOD RECORDS OF ALL DEPOSITS.
You may have to provide additional records and receipts, or complete documentation of any deposits other than your usual paycheck information. You must document everything. You must be proactive and contact your lender if you receive a bonus, or other income, even certificates of deposit if you consolidate your assets. A good lender can advise you on what you will need for a good paper trail. The same if you are receiving any gift funds, you must provide a gift letter from the donor.
#9 DISCUSS THE SELLERS CONCESSIONS.
If you are going to ask the seller for any concessions, the lender needs to know the details. They must be factored into the loan approval. Even in a sellers market, sometimes there is opportunity to negotiate help with the closing costs, for example. Keep the lender up to date on anything that may change the pre-approval you have received from the lender.
You need to discuss everything with your lender and stay in constant contact throughout the entire loan process.
According to Laura Raposa at The Herald, Tom Brady and Gisele Bundchen are still going through the red tape and permissions to build a 7,465-square-foot main house; a 1,675-square-foot cottage for the help; and a 1,342-square-foot yoga studio in Brookline’s slice of Chestnut Hill. It seems they still need a waiver on the Yoga studio as their is a 150-square-foot limit on so-called accessory buildings.
Architect’s rendering of the Proposed Tom Brady and Gisele Bundchen’s
new Chestnut Hill castle in Brookline MA.
It seems all that stands in their way now are the neighbors and of course the
zoning commission. If all is approved, it will all be a go, with of course some modifications.
We heard some great news from Wells Fargo last week. It seems that they have lowered their standards on the public’s FICO scores. It will now be possible to qualify for a mortgage loan with a FICO score of 600. Of course that is if all your other financials are in order.
Tom Goyda, a bank spokesman said, “The goal is to increase access to credit, especially for low- and moderate- income borrowers and first-time home buyers.” He continued, “These are fully underwritten, fully documented loans, consistent with FHA program guidelines and responsible lending principles.”
There is no doubt that other lending institutions will follow suit, easing up the mortgage loan business a little. We know one thing this will give another small boost to the Boston Real Estate Market.
As most of you are aware the Boston area is already a very expensive city to rent an apartment or to purchase condominium or loft. The facts are this situation will not change in the future. But as we all know the expense is worth it to be able reside in such a wonderful city.
In a new report, the Metropolitan Area Planning Council suggests that the Boston area will need 435,000 new apartments, condominiums and homes over the next quarter century. To put this is perspective that is enough to house the entire city of 2014 Boston.
On a positive note we will need a tremendous amount of construction in our beautiful city to fill the need for housing. This means jobs for the construction workers and also their support industries and of course the Real Estate Market. This is a great windfall for our entire city.
As we begin 2014, we can look forward to a total rebound from the Great recession.
According to Zillow, in 2005 real estate values peaked at $604 billion and then bottomed out of $502 billion in 2011. But by the end of 2013 values had climbed back to $568 billion. So Look out 2014!
According to the Urban Land Institute’s “Trends in Real Estate 2014 Report”, there will be some main changes in the real estate market in 2014. The biggest change will be the shift from investing in residential real estate to commercial real estate. And within the commercial market you will see that warehouse complexes with the most growth and retail properties to see the least growth.
As in 2013 you will see Apartments building in demand as the young professionals prefer renting over buying.
Kevin Garnet is moving on. On to New York that is. On to the Brooklyn Nets and a new home. Garnett’s contemporary estate sits on a secluded 12-acre parcel overlooking a pond in Concord MA, but it’s the sleek elegance of the 11,000-square-foot house that will catch the eye of anyone capable of shelling out $4.85 million, which is what the 37-year-old Garnett and wife is asking.
Mayor Thomas M. Menino, Skanska’s development team and executives from
PricewaterhouseCoopers tossed soil for a ceremonial groundbreaking on Thursday at 101 Seaport Boulevard, site of the first office tower in Boston’s Seaport Square.
Photo by Thomas Grillo.
Groundbreaking with Mayor Thomas M. Menino and Skanska at 101 Seaport Boulevard.
The groundbreaking ceremony last Thursday at 101 Seaport Boulevard in the “Innovative district “ Demonstrates the tremendous momentum that this Boston neighborhood has behind it.
The mayor welcomed PwC to Seaport. They are moving its workforce to this new $126 million, 17-story building from the Financial District when 101 Seaport Boulevard opens in 2015. “The 200 businesses that have moved down here will need some good accountants,” he said. “I look forward to working with you in the future in the private sector to keep Boston moving forward.”
Foreclosure deeds, which mark the final stage of the foreclosure process declined over the year 54% state wide, compared to the same month last year. And the number of foreclosures initiated in July fell 66 percent.
If you are interested in purchasing or leasing a single family home, condo, loft or townhouse, contact Boston Luxe, LLC.
According to the Boston Business Journal, the Boston Redevelopment Authority is again looking for a developer of what could very well be Boston’s tallest skyscraper. Seven years after the plans for the project on a city owned garage site fizzled, the mayor has confirmed the plan to seek a developer for the almost 48,000 square foot construction project