BUYING ELDERLY PARENTS A HOME

Baby boomers have reached retirement age.This generation is healthier and more active than their predecessors and many want to age in a home of their own. Many of these potential home buyers have fixed incomes and with soaring home prices, they are unable to qualify for a new home when they are ready to downsize. This is where a Family Opportunity Mortgage can help. AFamily Opportunity Mortgage is backed by Fannie Mae and allows you to purchase a home for your elderly parents if they cannot qualify on their own, at the same favorable down payment and interest rates as a primary residence.This is a significant advantage over loan programs for second home or investment properties.The terms of the loan program are simple. The borrower needs a 620+ FICO score, steady employment, and enough income to qualify for both their current housing and the new loan.Total debt-to-income ratios cannot exceed 45% and that must include all the new costs. Finally, the parents must demonstrate that they do not have the income to qualify for the loan on their own. It’s important to understand that bad credit is not sufficient to use this loan program, it must be a lack of income that disqualifies them. This program can also be used to help an adult child with disabilities. As more people choose to live independently in retirement, the need for housing will continue. By taking advantage of a Family Opportunity Mortgage qualified borrowers can purchase a home for their parents at very favorable owner-occupied rates and terms. Make sure to talk to a licensed mortgage lender to learn more.

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Thinking About New Construction?

AlwaysseeaYourRealtyLinkagentbeforeyouvisit anynewhomecommunityandletussignupwiththe builderasyouragent. Buildershaverepsinthe communitiestoletyou(withorwithoutus)intoview thenewhomesbuttherepresentativeworksforthe builder–whileweworkforyou! Thebuilderpaysus notyouandneedstheREALTORcommunitytohelp markettheirhomes. Youwillabsolutelyappreciate ourexperiencedagentwhileyouaredealingwiththe differentstagesofthebuild,choosingthelotandmodel andchoosingtheupgrades. Ourexperiencematters. Wewillalsomeetwithyouandthebuilderforfinal walk-throughsandhelpdiscussyourfinancing.

We Work With Most of the Builder Communities and Custom Home Builders!

Likebuyinganyhome,youneedtohaveagoodideaofthe amountofnewhomeyoucanaffordsoitisalwaysagood ideatogetpreapprovedwhetheryouarethinkingabouta newbuildoranexistinghome. Onceyoufindthenew homecommunitythatyoulike,thebuildermayofferbetter incentivesifyouusetheirfinancing-butthatispartofour jobasyourREALTORtohelpyoudecidewhereto finance.

Youcansearchonmostwebsitesfornewconstruction homesthatarefinanistedandonthelocalMLSasactive andyourYRLagentcanassistinhelpingyoulocatethe homesbybuildersthatarecurrentlyunderconstructionasa spechome.

Thebasepriceisthebuilders‘starting’priceonanyhome andtherewillbeonemeetingwhereyouwilldecidewhat upgradesyouwantinthehome,squarefootageandstyle.

Buying a new home is exciting and confusing. There are a lot of steps to buying a home but using an experienced real estate agent will make the process less overwhelming! These are the most common questions home buyers have, and the answers.

1. How do I get started? –The first step is to speak with a lender and get a pre-approval. This will tell you, and potential sellers, how much you can afford.

2. How long does it take to close on a home? –Typically, it takes about 30-45 days once contracts are signed to complete the lending, appraisal, and inspection processes.

3. What does my agent do? –Abuyer’s agent will negotiate terms and manage the closing process from start to finish.

4. How much do I pay for a buyer’s agent? –Nothing.The seller’s agent gives the buyer’s agent a portion of their commission from the seller.

5. What credit score do I need to qualify? –A 620 FICO score or higher is required for most home loan programs.Talk to a lender for other options for lower scores.

6. How much money do I need for a down payment? - It varies. FHAloans start as low as 3.5% and most lenders offer standard programs for as little as 5% down. YourYRL Agent will have preferred lenders with great programs to offer you under any situation.

7. What other fees will I need to pay? –Closing costs and loan origination fees will add another 2-4% to the costs.YourAgent may also ask the Seller to pay some of these costs for you.

8. What if I change my mind? –Your agent will work with you to build in contingencies for condition, loan terms/approval, and other protections to allow you time to evaluate the home during escrow.

9. When do I get the keys? – Unless you’ve negotiated extra time for the sellers to move, you’ll get the keys at the closing.

10. What’s the best advice for home buyers? –Trust the experts and ask lots of questions. Buying a new home is exciting. Reduce any anxiety by finding a good buyer’s agent who can help guide you through the process.

WHO PAYS/ORDERS WHATWHEN BUYINGAHOME

Any item at the time of settlement will be determined by the PurchaseAgreement although these fees are the normal charges to either the buyer or seller

APPRAISAL- Lender orders the appraisal and buyer pays for the appraisal usually at loan application. Lender should order appraisal immediately and not wait until after inspection is completed. Buyer will receive results of appraisal not the Seller.

“FHAor VA”Amendatory Clause is provided by lender and signed by all parties stating to all parties that the appraisal must equal or be better than the sales price or the buyer is not required to purchase the home. (Seller can always lower the sales price to meet the appraisal price to close or buyer may pay difference.

Home Inspection…Buyer should order the home inspection and will be required to pay at the time of placing the order. Buyer should attend the inspection if at all possible. Buyer’s agent should make sure inspection is performed in the time limits as per purchase agreement and any response also must be made in a timely manner in writing. Utilities must be ON for inspection.

Home Warranty - ordered usually by buyer’s agent and paid at closing by the terms of the purchase agreement.

Homeowners insurance policy - Buyer needs to order early in the homebuying process. Payment may be ahead of closing or paid at closing. Lender will need prior to final loan approval.

Mobile closers, if requested, are provided by the title company and usually do not cost either buyer or seller extra.

Titlework-orderedbytheagentasperthe purchaseagreement. Normallytheowners policyispaidatclosingbytheSellerandthe mortgagepolicyispaidatclosingbythe buyer. Asalways,thepurchaseagreement maybewrittendifferently.

Mortgage payoff (current mortgage of seller) must be ordered by the title company. Payment for payoff may be reflected on settlement statement if there is a cost. Seller will need to complete a form to order the payoff but cannot order on behalf of the title company.

Deed…ordered by the title company from their attorney and paid at closing by the seller.

HOAmonthly fees and transfer fee…title company will need HOAinfo so they can verify fees are current and fees are usually prorated to day of closing. If HOAcharges a transfer fee (fee to change ownership info and bill new owner) is oftentimes split but depends on what the HOAdictates in its By-laws.

Down payment and fees by buyer - if the amount owed at closing by buyer is under $10,000 then a cashier’s or certified check may be provided. If more than $10,000 the funds must be wired. Receive WIRING INSTRUCTIONS from the title company only in a secure manner. Mortgage fraud is not a joke!