I’m not sure that I can get qualified for a mortgage

Just because your credit score or financial status may not be where you have heard or read about where it should be, doesn’t mean that you won’t be able to purchase a new home.

When a mortgage company (lender) looks at your personal information for a loan, he is looking at a multitude of factors. Although income and credit are important, there are other factors that will be considered in deciding whether one can receive a loan at this time.

Even if you are not qualified for a loan at the present time, it may be possible for you to recieve a conditional pre-qualification from the lender. This may allow you to purchase a brand new home that may not be  ready until 4- 6 months.

Many lenders will be able to tell you what specific requirements are necessary, in order to get approved for a loan. They will put together a plan for you, that will outline what needs to be done to satisfy the requirements.

There are also some reputable companies that will work with you on improving your credit. They specialize in credit repair and assist you in getting derogatory items removed from your credit file.

A lot of customers that I have met, think that they need to wait for their credit to go up, or pay down some of their debt, before they meet with a lender. I will tell you what I have told them. Unless you are a qualified loan officer, you will not know exactly what needs to be done, in order to get a loan.

Who knows? You may be able to get a loan now, and not even know it. Even if you do need a some time to get approved for a loan, many lenders will give you a pre-approval letter which will allow you to purchase a new home that hasn’t even started construction yet.This will allow you to choose the site and all of the selections in your new home!

 

Homeowners fees vs. Condominium fees

Most of the customers that I have met, are confused about Homeowners Association fees. How could they vary so much between different communities? What do the fees cover?

It is important to understand that although a home in one community may appear very similar to a home in another community, the “ownership” between the communities may be different. For example, a town home in one community may be part of a homeowners association. A similar style home in another community may be under a condominium association.

The fees and maintenance responsibility of the homeowner can be very different depending on the type of association in the community. Many times the Homeowners Association will take care of maintaining all of the open space including storm water management ponds. Sometimes the association is responsible for the upkeep of the homeowners front and backyard.

Town homes can also be under a condominium association. Most people only think of condominiums as apartment style homes. The structure of a home does not determine if there is an association, or what type of association is in the community.

Many condominium associations are responsible for the exterior maintenance of the homes,including the roof, siding and lawn care. There is a master policy which will cover the replacement cost of rebuilding the home. Under a master policy,  the homeowner will usually only need to purchase a condominium policy (instead of a homeowners policy), that will protect against personal property and the interior drywall.

When looking to purchase a home, it is important to know what you, the homeowner, will be responsible for, as well as what the association will take care of. The rules and regulation section should also be understood.This section will discuss rules for decks, fences, vehicles etc.

If you purchase a home in Maryland that is in a  Homeowners Association, you have 5 calendar days to read the documents allowing you to cancel the contract without liability. If the home is in a condominium association, you have 14 calendar days to read the documents and cancel without liability.

Some people love living in a condominium association as they don’t care to do any exerior maintenance on the home. Others prefer to live in a homeowners assocation as the fees are lower and  they feel as though they have more freedom. Lifestyle plays a major role in determining which type of association will be best for you!