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Why Your Kitchen Features Matter

February 7, 2023 by Regine Lane Leave a Comment

Why Your Kitchen Features MatterIf you are interested in purchasing a house in the near future, you need to pay close attention to your kitchen. The kitchen is considered to be the heart of the home, and you need to make sure the kitchen is laid out appropriately. You need the kitchen to match your expectations, but you also need to pick a kitchen that will help you maximize the value of your home if you decide to sell it down the road. What are a few of the most important examples of kitchen features you need to pay attention to?

The Cabinets 

Always take a close look at the cabinets. Look at the inside of the cabinets for signs of water damage, and make sure the cabinets are aligned appropriately. If the cabinet doors do not open and close properly, it can be a significant problem when you are trying to cook in the kitchen. Cabinets are often the most expensive part of a kitchen remodel. 

The Backsplash

You should also pay close attention to the backsplash. You need the backsplash to completely cover the area between the counters and the cabinets. You do not want the backsplash to be too short. Otherwise, you expose the wall to additional stress when you are cooking. 

The Kitchen Island

A kitchen island is often the gold standard when it comes to a kitchen. This additional feature can significantly increase the value of your home, but you need to make sure the island is in the right location. For example, you need the island to be close enough to the workspaces in your kitchen, such as the stove and refrigerator. You also want it to be centered in the kitchen itself.

Think About These Key Kitchen Features

These are just a few of the most important examples of kitchen features that you need to think about when you are interested in purchasing a house. Remember that these features need to match your needs, but you also need to think about how much money you can get for the house if you sell it down the road. Pay close attention to these kitchen features when you are looking for a new house.

 

Filed Under: Mortgage Tagged With: Home Features, Kitchen, Mortgage

3 Tips To Consider When Buying A Home With An FHA Mortgage

February 3, 2023 by Regine Lane

Tips to Sidestep Common FHA Loan Problems

FHA loans are becoming increasingly popular these days as potential homeowners may not able to qualify as easily for conventional mortgages.

The FHA insures some higher-risk loans, in turn allowing borrowers with low down payments and less than perfect credit to purchase homes and bolster the housing market.

However, while getting through the loan process with an FHA mortgage loan is not necessarily more difficult than with a conventional or conforming loan, there are some issues that you will want to be aware of.

Property Condition

You can’t buy just any property with a FHA loan, or any other loan for that matter. All lenders are concerned with the condition of a property, especially as it relates to livability and safety. 

Major deficiencies in a home will almost always be noted when the home is seen by the FHA appraiser. The appraiser must deem it to be livable, without any conditions that could jeopardize health or safety. 

Sometimes you can get the seller to make the needed repairs to pass the lender requirements. In other cases, you may want go an alternate route. The FHA 203K streamline loan allows you to borrow up to $35,000 for home repairs to bring the house up to code.

Low Appraisal

The primary role of the appraiser is to estimate it’s market value. These estimates are based on the property’s features and a comparison to similar properties that have sold recently. If the appraisal is low, the loan funding could fall through because the FHA underwriting guidelines (along with almost all conventional guidelines) will not let you borrow more than the home’s appraised value. You can, however, add to the amount you bring in to closing if you prefer to compensate for a low appraised value.

Rather than trying to scrape together a bigger down payment, you may want to take the information to the seller to renegotiate the purchase price. The seller will likely recognize that other buyers would be in the same boat, leading the seller to agree to a lower purchase price.

High Debt-to-Income Ratio

Debt to income ratios are a concern with virtually every type of mortgage loan on the market today. Your FHA loan may encounter a snag in the underwriting process if your total debt payments, including your new mortgage, would be a high percentage of your income.

FHA has an automated underwriting program called TOTAL Scorecard which uses an algorithm to determine a borrower’s qualification. The process is quick, and often you can make up for a high debt-to-income ratio with other compensating factors, like a larger down payment or a cash reserve of several months of mortgage payments.

If you have any questions regarding FHA loans or any other home financing questions, please give us a call!

Filed Under: Mortgage Tagged With: FHA Loans, Mortgages

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