In today’s real estate market, buyers and sellers need to be aware that financing is not as easy to get as it was in the very recent past.
Mortgage lenders are tightening up their guidelines, and they are becoming much more strict about appraisals. Appraisers are not being as generous as they were in the past – Even though your home may truly be worth “X” amount of dollars in YOUR eyes and in the BUYER’S eyes, it may NOT be worth that to the LENDER who has the power to end everything with a low appraisal.
Also, appraisers will generally not be using comps that are more than six months old to gauge your home’s value to the lender. This can be a problem in a market where some homes sit for a year or more before selling…
I caution everyone to not set their hopes on anything until the final settlement papers are signed and keys are handed over to the new owner. I’ve seen several deals fall apart days before closing due to appraisals and finance issues…even with fully qualified buyers with great credit.
That said – we just closed on a 102% financing deal – it can certainly be done, but never consider it sold until it actually IS.
Homes are still selling, mortgages are still being approved, people are still buying – it’s certainly not impossible but it’s not as easy as it once was. Please don’t make premature investments for your new home until the property closes.
Don’t count on anything till the fat lady sings – or gets a new set of keys.
Filed under: Home Buyers, Home Sellers | Tagged: appraisals, home financing, mortgage approval
