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Wednesday, June 24, 2015

Answers to Homebuyers’ Most Asked Questions

Every homebuyer is going to have questions when going through the process of buying a home. Knowing what questions to ask and taking into account the answers will empower buyers to make the right decisions for their situation. The Boehmer Team has years of experience helping buyers with answers to the important questions that arise during the home buying process.

What is the best way to begin the home buying process? 

The best way to begin the home buying process is to get preapproved for a mortgage loan by a reputable local lender. Getting preapproved before shopping for a home will help you determine how much you can afford and will show sellers you are serious and capable of purchasing their property when you make an offer. The Boehmer Team feels it is important that the lender you choose can be reached easily and is readily available with answers to questions based on your individual needs.

What is this property really worth?

Real estate agents cannot ethically tell a client what to offer for a home. However The Boehmer Team can look at dozens of comparable properties for sale, along with recently sold properties to help determine value. They will look at updates, custom features, lot size, location and more. They can also tell you how long homes in the area are staying on the market and the percentage of asking price that sellers are getting.

How much less is a seller willing to take?

Not all sellers are willing to negotiate asking price or assist with any closing costs. If your strategy is to make low offers, be prepared to make several offers on properties before finding a seller willing to bargain.  Ultimately it is more important to pay market value than a price with an emotional tie to it or unrealistic price based on what a seller still owes on the property. If you are simply looking for a great deal you can always look at foreclosures and fixer-uppers.

What’s wrong with this house?

The seller says everything is perfect, but unless it is new construction that is rarely the case. The Sellers Disclosure document should contain information on the age of the roof, the age of the appliances, the type of foundation and more. Any other issues most often will appear on a home inspection. The Boehmer Team highly recommends getting a home inspection for any home purchase. Buyers also can also get radon, termite and other building inspections. If a buyer still has a question about a home that is not disclosed, ask the seller directly.

Is this home on a floodplain?

FEMA provides free online maps that show if a home falls within a flood plain. There are different types of floodplains that require different types of insurance. The Boehmer Team can recommend companies that offer flood insurance for different situations.

Do you have the receipts and warranties for the home’s mechanical systems?

This is not something that buyers have much control over. If a seller purchased a new furnace before putting the home on the market and doesn’t leave any information on where the furnace was purchased, the buyers won’t have many options if the furnace malfunctions. However a home warranty can be purchased at a reasonable yearly fee to cover these types of situations and offer peace of mind.

When you are ready to buy a home talk to The Boehmer Team. Experience and knowledge have made The Boehmer Team one of the top real estate teams in Missouri. They can help get the answers you need to make the best decision for you.

Wednesday, June 10, 2015

Mortgage Loan Products For Buying A Home

There are great programs to help those who want to buy a home get a mortgage. Having trouble putting together the down payment? There are also programs available to assist with down payments. And if you are a veteran, physician, physician’s assistant, nurse practitioner, RN, pharmacist, veterinarian, dentist, dental surgeon, CPA or attorney there are even more options available with Professional Loan Programs. Below are some of the more popular mortgage products currently available. For more information on types of mortgage products, obtaining a mortgage or receiving down payment assistance contact The Boehmer Team to be put in touch with a qualified reputable lender.


Basic Federal Housing Administration (FHA) Loans

Not only are FHA loans great for first-time homebuyers they are also available for existing homeowners. Interest rates are typically the same as conventional loans, making FHA loans a very affordable option, especially for borrowers without the ability to make a large down payment. Another feature of FHA loans is that they are assumable. This means when a seller with an FHA loan sells the property, the loan and its financing terms (interest rate) can be transferred to the new buyer - a feature that will certainly make a property more intriguing in times of rising interest rates.

The Benefits of an FHA Loan
• As little as 3.5% down payment
• Down payment gift allowance

• No maximum income restrictions
• Flexible credit requirements
• Transferable interest rates

• FHA is more forgiven than a conventional loan on bankruptcy

• FHA is more forgiven than a conventional loan on foreclosure

• Loan to value up to 96.5%

• Higher debt to income ratios (over 50% with AUs approval) with compensating factors

• Credit scores down to 640

• Better interest rates than conventional
• gift funds accepted

• Down payment assistance accepted

Basic Loan Amounts
• $281,250 - single-family home (Based on most St. Louis metro areas. Loan Amounts may vary by home location.)
Eligible Borrowers
• Borrowers must be occupants. Non-occupant co-borrowers allowed
• Qualifying ratios: Housing - 31%, Total Debt - 43%
• Permanent resident aliens

• Non-permanent resident aliens

95% Conventional Loan

The 95% Conventional Loan is the best alternative to FHA financing. In some cases, the ENTIRE 5% Down Payment is allowed to be a Gift.
   No Income Limits 

   No Higher Rate 

   No Homeownership Course 

   Mortgage Insurance may drop at 78% 
Loan to Value (LTV) 

Gift funds for 95% conventional loans are allowed for entire down payment if:
• DTI (Debt to Income) less than 41%

• FICO score greater than 740

• Fixed Rate is chosen/applied
• 1 Unit/ Owner Occupied

• DU (automated underwriting approval)

Gift funds allowed for 2% of the 5% down payment if:
   FICO score is between 660 & 720 

   Debt-to-income is over 41% 

   DU (automated underwriting approval) 

3% Down Loan

Newly released 3% down purchase loan is part of an ongoing effort to expand access to credit for creditworthy borrowers and support sustainable homeownership.

·      Standard Purchase Transactions
·      At least one borrower is a first-time homebuyer (FTHB) and must not have owned any residential property in the past three years
·      All loans must be fixed rate
·      1 unit principal residence
·      35% mortgage insurance
·      Does not cover manufactured homes

USDA 100% Financing Loan

Those looking to occupy residence in some areas may qualify for a USDA Loan. In many cases the property only has to be located outside a metropolitan area. Along with location, a few other items for eligibility criteria include household income, household dependents and credit history. These guidelines are detailed and may differ from county to county.  

·      100% financing available
·      Up to 102% financing (with funding fee)
·      No maximum seller concessions
·      Gifts funds allowed for purchase loans
·      Primary residence only
·      Closing costs may be financed up to 100% of appraised value
·      No county loan limits
·      New and existing homes are eligible
·      No in-ground pools
·      No manufactured homes
·      Minimum credit score of 640
·      New funding fee 0.50% as of 10/1/2014

Bridge Loan

Bridge financing is for prospective borrowers who want to use the lendable equity in their existing residence as a down payment for the purchase of another property. A bridge loan program first encompasses a lien on the borrower’s existing primary residence to be sold. Then a separate, permanent loan will be made on the property to be purchased.

*Loan information provided by Preferred Home Lending.  All loans are subject to updated guidelines by lenders and qualification for approval. Check with your preferred lender for their latest mortgage program guidelines and qualifications.