Tuesday, November 30, 2010

What is Underwriting?

Mortgage underwriting is a process lenders use to assess if the risk of offering a particular loan to a borrower is acceptable. They use the three C's of underwriting to assess risk and the terms of the mortgage.....credit, capacity, and collateral.

The first C involves pulling a borrower's credit score. This score can tell how well a borrower has handled their debts in the past and can be an indicator of ability and willingness to pay off their loan. The borrower's score will be pulled at the beginning of the loan process and again right before the loan closes, so they should make sure nothing is done to change their score in the meantime.

The second C is capacity, or the ability to make the payments. The underwriters will analyze the borrower's employment situation including length of job, stability of income, current debt, and assets.

The last C is collateral, or what's the property to be mortgaged. Is it worth the risk? This part is determined by the type of property, its value, and the intended use of the property. Value is determined by an appraisal. The loan-to-value is important in assessing the risk as well. Many times if loan-to-value isn't 80%, mortgage insurance will be required to be purchased in case of default.

Underwriting can make or break a deal. Sometimes they don't like the comps the appraiser used even if the appraiser says it appraises for the purchase price.

Bottomline.....you just can't bank on a deal until you're sitting at the closing table and all the signatures are on the papers! If you have more questions about the loan process, ask your preferred mortgage lender. See how long their underwriting process takes and if their underwriters are in-house or not.

Do you need a REALTOR who can help you through this process when buying a home? Call me to help you. Visit my website at www.BuyHendersonKYHomes.com.

Saturday, November 27, 2010

Out with Thanksgiving, In with Christmas

So, Thanksgiving is over and many of us are itching to get the Christmas decorations out, if you haven't already. If you're selling your home, don't be afraid to decorate it. If you think about all the times your home looks most inviting, Christmas time probably ranks up there with those times. Decorations add a layer of warmth to your home, if done in good taste. Don't go overboard with the lights on the gutters, because potential buyers may fear you'll leave them there and they'll have to remove them. Put up the stocking to accent your fireplace, set a tall tree so the ceilings look taller, get some cinnamon scented plug-ins, bake some cookies, throw on the light Christmas melodies, and let the showings begin.

Another upside to this time of year is that people looking now are likely more committed to the buying process. So, you're not spinning your wheels with casual lookers. And, many people don't like to list their homes during this time of year, so inventory levels are generally lower, which means less competition for the serious buyers.

So, hang those stockings by the chimney with care and may you and your family have a very Merry Christmas!

Wednesday, November 24, 2010

Happy Thanksgiving

I thought I'd better write my Thanksgiving blog post now since I'm going to be really busy enjoying time with family over the next few days.

I'd like to take a moment to first thank all of my clients this year. I feel really special knowing that I've met so many great people throughout the year. Thank you all for letting me represent you and trusting me with your home buying and selling needs. I am truly grateful and blessed.

I also want to thank my family for being so supportive of my career change this year. Believing in me helped me to get through everything to begin to make it in this career.

Lastly, I hope everyone appreciates all that they have. The most important things in life are the relationships we build with our family and friends, and most importantly with God.

Have a Blessed Thanksgiving!

Tuesday, November 23, 2010

Popcorn, Anyone?

Well, it's finally happened!
Henderson, KY has its own theater. No more deciding it's too far to go across the bridge to see that flick. It's just down the street!
This has been much anticipated for some time, especially since the closing of our beloved Starlite Drive-in.
Thank you to all who made this possible! See you at the movies.

Monday, November 22, 2010

Don't Bank on it Unless the Money's in the Bank

No matter how many times I say it, I feel like I can't say it enough. Any number of things can go wrong between the time a contract is signed and the closing date. It is very rare that a contract actually closes on the date of the contract. Because of this, you shouldn't bank on the deal closing until it's closed. I hate to be the bearer of bad news, and I hope it doesn't sound like a CYA statement to make. It's just the honest truth. So many hands are in the mix in a real estate deal that any number of things can delay your closing date. Please, please, please Don't Bank on it Unless the Money's in the Bank. Feel free to use this statement for other areas of your life as well!

Looking to buy or sell in the Henderson, KY area? Call me and I can help you through the entire process. 270-454-1746

Friday, November 19, 2010

Getting It Sold

Many homeowners and buyers don't realize how time-consuming a home purchase can be. In order to make a transaction run as smoothly as possible, everyone in the process needs to be doing their jobs to get it done. That includes the real estate agent, the mortgage processor, the appraiser, the inspectors, the underwriters, AND the buyers and sellers. For everyday you don't get a document signed or delivered, that's one more day away from getting it closed. The quicker all the in-between stuff goes, the better. Your agent should stay on top of all of these things to ensure everyone is doing their job. Your best interest should be the prime objective of your agent. Make sure you choose someone who will be dedicated to the entire process and not just sitting back waiting for their paycheck.

If you're looking to buy or sell in the Henderson, Kentucky area, call me for personal service today!

Wednesday, November 17, 2010

Heaven's Point Guard, The Kirk Gentrup Story

I received a copy of the book Heaven's Point Guard, The Kirk Gentrup Story yesterday and started reading it and finished it in one evening. It's not a terribly short book, almost 200 pages. That's not why I finished it so quickly. I just couldn't put it down. You see, I was fortunate enough to have known Kirk for a short while. This book, written by his father, tells a story of a boy in a small town, with big dreams, taken suddenly by God. It doesn't detail his death, though it does tell of it. His father spent more time in the book detailing Kirk's short life, his dreams and personality, then goes on to explain how his death impacted his family as well as the community. Kirk was 16 when he was taken. A bolt of lightening struck him while playing left field in a baseball tournament. Kirk is in Heaven and his father tells of how he knows that he is. Kirk was a talented basketball player, a popular kid, and was a faithful Christian. Parents should read this book and tweens and young adults as well. It is inspirational and shows that through all the pressures of this world, it is possible to remain strong in who you are and your faith in the Lord. Kids can benefit from seeing how Kirk lived and what he meant to those whose lives he touched.

Monday, November 15, 2010

My Superhero

Last night, my youngest daughter and I had a cute conversation. She asked if I would save her from monsters when we were going to bed. I said I would, but that there aren't any. She told me I was too little to save her from monsters, but that Daddy could do it. Since Daddy wasn't with us, I told her that he taught me how to take care of the monsters before he left. She looked at me and said, "Oh, you a Super Hero?" I smiled and said, "Yes, I'm a Super Hero."

That was all it took to help her feel safe. I didn't have to prove that I have super powers. She just trusted me.

Today, I was thinking about how cute that was and I started thinking about how I wish I had super powers for real. I know that I can't just tell clients or potential clients that I'm a Super Agent and they will trust me. I can't sit back and do nothing and be a Super Agent to them. I have to prove myself. I have to strut my super powers throughout the buying and selling process, vanquishing "monsters" that rear their ugly heads during the transaction and escrow period, all the way through closing. Sometimes, my powers become apparent after closing, too. I'm always being tested to maintain Super Agent status.

I think that's how life is in most aspects. Not so innocent or as trustworthy as a small child just believing in her mother. We can be all sorts of "Super" in life. What are you super at, and how do you prove yourself?

Saturday, November 13, 2010

Getting Started

So, here I am starting a blog. I know it won't be easy to get started or keep it going, and I'm sure I'll get writer's block every once in a while, but bear with me. We'll be talking about real estate news, Kentucky happenings, and just other "stuff" I think you may be interested in. Sometimes it'll be funny, sometimes serious, and maybe just informative, but I hope you always look forward to it and enjoy.