Utah Real Estate & Mortgage Blog

Before you do, you should check out the recently released Remodeling Cost vs. Value survey, done in partnership with the National Association of Realtors (NAR).

In general, anyone planning a home remodeling will pay a lot more for the job than they will get back in return when they sell. Only 60% of remodeling costs in 2010 would be recouped by homeowners, the report said.

Exterior improvements mostly performed better than interior ones, owing to the necessity of maintaining a home’s “curb appeal.”  Here are some of the highlights from the report.

Buyer Beware…You might want to reconsider that decision and go with a Mortgage Lender the next time you buy a home in Utah.  I want to share a recent experience I had as a Utah Real Estate Buyer’s Agent.

This was for a purchase of an owner occupied home that was less than $150,000.  This buyer got approval from the broker back in September 2010.  We wrote an offer at the end of September and were under contract within the first few days of October.   We should have closed on this client’s home last week.

WE DID NOT CLOSE.

As of today, we are still waiting for formal approval from the broker.  The loan officer has communicated that he/she has done everything possible to speed up the process.  My client is now at risk of losing thousands of dollars in deposits and inspections due to the broker not closing the loan on time.  Every week, we were told that everything is OK and it should only be another day or two.  It has been more than 3 weeks in underwriting.  Is this an isolated problem that does not happen that often?  No.  Let me explain.

A couple of years ago, mortgage brokers were put on a pedestal by the banks and their loans were given priority.  After the collapse of the banks/lending, banks started to push mortgage brokers out of the way.   Many national and local banks shut down their wholesale lending operations (these were the divisions that handled mortgage brokered loans).    In the past I was a California & Utah Mortgage Licensee.   I have had experience in working with both brokers and lenders.  I understand what it takes to get a home loan and close on-time.

Since my move to only being a Utah real estate agent, I have never had deal not close on-time.  I went back and looked at the financing my clients used to purchase these properties.  NOT ONE was with a mortgage broker.  They were either with a Utah lender (bank, credit union, in-house lender) or cash.  Then I went back and looked at all of Zoom Real Estate’s closed purchase transactions for the previous year.  I looked at if the deals closed on-time and if they used a broker or lender.

• Of the deals that the buyer used a mortgage broker for the financing…85% of them DID NOT CLOSE ON-TIME.
• Compare this the deals that the buyer used a mortgage lender for the financing …1.5% of them DID NOT CLOSE ON-TIME.

I am writing this blog post today to warn Utah home buyers to beware of mortgage brokers if you want to close on-time.  It is difficult for brokers to close on-time because they do not have the resources to do so.  Lenders have in-house underwriting, control of the loan file, and better access to the team working on your file (AKA..your home loan).

If you are being given the run-around from your mortgage broker, give me a call and I would be more than happy to recommend several local UTAH lenders to help you with your home purchase.

Kris (801) 792-5040

Zoom Real Estate Agent

HOW?

Three different lenders I work with contacted me today about home loan rates.  All three of them are able to do a 30 yr fixed rate FHA or VA  loan at 3.75% (apr 3.99%).  WOW!  With the loan rates getting even better today, you can save an estimated $72 a month (see example below).

Saving $72 a month on your Utah home payment is great, but how does $72 a month = $25,000 in savings?  Look at the total interest paid over the life of the loan as given in the example below.  In addition to the lower payment, you will save thousands in total interest paid.  What a great day to buy a home.

Interest Rate: 3.750% (3.99% APR)

Loan Amount: $250,000.00 ~

Term of the Loan: 30 years

Monthly mortgage payments: $1,157.79 ~

Total interest paid over the life of the loan: $166,804.04

VS.

Interest Rate: 4.25% (4.49% APR)

Loan Amount: $250,000.00 ~ Term of the Loan: 30 years  

Monthly mortgage payments: $1,229.85

Total interest paid over the life of the loan: $192,745.91

Buy more home today than yesterday.  Contact me today to find out more about these rates and loan programs. 801-792-5040

November Update on Utah Home Lending:

• There is money available as of November 4, 2010 for Down Payment Assistance (up to $10,000) throughout Salt Lake County.
• 100% financing programs available.  NO DOWN PAYMENT!
• $100 down payment HUD homes are available throughout Utah.
• Special Loan deferral programs are available in Salt Lake County (up to $20,000!)  No payment/No Interest on select homes.
• FHA rehab loans that allow you to buy a home through FHA and receive the money to rehab/repair a home at the same time.
• FHA  Energy Efficient Mortgages that allow you to update windows, appliances, furnace, hot water heater, insulation when you purchase a home.

If you have a steady job and decent credit, you may be a home owner before the end of the year.

801-792-5040