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.
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.