Real Estate Information Archive

Dos and Don'ts During the Loan Process

When you fill out a credit application, Lenders run a credit report for the underwriter. Each lender and each loan program has different guidelines they must follow. You should not do anything that will have an adverse effect on your credit score while your loan is in process. I know it's tempting...If you're moving into a new home, you might be thinking about purchasing new appliances or furniture, but this is really not the right time to go shopping with your credit cards. You'll want to remain in a stable position until the loan closes and give your lender the opportunity to help you lock in the best interest rate they can possibly get for you. Here is a handy list of dos and don'ts that you should adhere to after your loan application has been submitted to the lender.

Interested in a Grand Rapids area Grand Rapids Foreclosures or short-sale home? Now you can get instant, live updates from MarkBrace.com!

Available to you with just a two clicks of the mouse is a complete listing of all homes in Allendale, Belding, Byron Center, Caledonia, Cedar Springs, Comstock Park, East Grand Rapids, Forest Hills, Godfrey-Lee, Godwin Heights, Grand Rapids, Grandville, Greenville, Hudsonville, Jenison, Kelloggsville, Kenowa Hills, Kent City, Kentwood, Lowell, Northview, Rockford, Sparta, Tri-County Area, Wayland, and Wyoming school districts that are shortsales or foreclosures.

To access this information, simply go to the homepage and scroll down. You'll see two lists, one for foreclosures and one of short sales. Click on the school districts you'd like to see the home listings in and you'll be taken directly to the 24 hour, live list.

You may also move your mouse to the navigation bar that appears at the top of any pages within MarkBrace.com (scroll above, underneath the cityscape photo) and use the drop down menu underneath "Featured Homes" to see the option of choosing to see foreclosures or short sales.

Hopefully this easily accessible navigation will make your home searching effortless. Please contact us if you have any questions- we're here to help with all your real estate needs!

It's no secret that many facets of lending and real estate have changed as a result of the credit crisis. In addition to tightened lending practices that resulted from rising mortgage delinquencies, Washington has been heavily involved in altering the way lenders do business today.
Two individual pieces of legislation impacting our business need to be taken into account when determining closing dates for purchase transactions.

Home Valuation Code of Conduct – The Home Valuation Code of Conduct (HVCC) went into effect May 1, 2009. Intended to shield appraisers from undue influence from loan officers and lenders, this legislation installed a "firewall" between those individuals directly involved in the origination of the loan from the selection of and contact with appraisers.
HVCC also requires that borrowers receive a copy of the appraisal a minimum of three days in advance of closing. Part of the kicker here is that "received" is considered, in effect, three business days after the appraisal has been mailed to the borrower. As HVCC requires a firewall between the originator and the appraiser, the time to receive an appraisal has increased, in some cases by as much as two weeks or more. While this may not always be the case, it is important to take into consideration when considering closing dates. Today, conservative closing dates are mandatory to properly manage expectations of all parties.

Housing and Economic Recovery Act – The Housing and Economic Recovery Act (HERA) amends and impacts several aspects of obtaining a mortgage, the disclosures required for borrowers, and the timing of their delivery. This impacts the minimum time required to close, and should any changes be made to a loan application that could impact the Annual Percentage Rate (APR), this could impact the closing date.
Other than paying for a credit report, lenders may not accept any additional fees from a borrower until four business days after disclosures have been provided to or mailed to a borrower. This has the potential to delay several aspects of the application process.
Finally, upon making application, a borrower is provided a Truth in Lending (TIL) statement, detailing the total expected costs that could be incurred over the life of the loan. Should anything change in the loan application that could change the APR by more than .125%, a new TIL must be reissued to the borrower a minimum of 3 business days before closing. Items impacting the APR could include a borrower accepting a higher interest rate than initially qualified by floating their rate at application, a change to the loan amount, a change in product, a change in closing date, and any changes to fees.

I always get the Good Faith Estimate as close as possible by using the Access Kent web-site for property taxes and only charge my accurate 3rd party fees which are always the same. With this there are no dramatic changes in the APR.

What Now? – While there is more we can discuss on the specifics of these legislative implications, I felt it important enough to let you know now that I would not recommend you write purchase contracts with short closing time frames. I suggest 45 day purchase agreements for all FHA and Conventional Loans, and 60 days (if possible) for Rural Development loans, as Rural Development is 7-8 business days on their own turnaround times.

I would rather under-promise and over-deliver in these economic times.

-Zac Ellerbroek

Just wanted to Share a little quote I liked by Charles Swindoll:

"The Longer I live, the more I realize the impact of attitude on life. Attitude, to me, is more important than facts. It is more important than the past, than failures, then successes, than what other people think or say or do. It is more important than appearance, giftedness or skill. I will make or break a company, a church, or home. The remarkable thing is we have a choice for every day regarding the attitude we will embrace for that day. We cannot change our past... We cannot change the fact that people will act in a certain way. We cannot change the inevitable. The only thing we can do is play on the string we have, and that is our attitude... I am convinced that life is 10% what happens to me and 90% is how I react to it. And so it is with you.... We are in charge of our attitudes."

The Grand Rapids Real Estate market under 120K is booming, bare with me I'm not the best writer in the bunch and I have some observations and ideas I want to share. I'm a very active full time Realtor in Grand Rapids Michigan, and I have to say the buyers market is really happening. Since I'm your next generation tech savvy Realtor, I pride myself on getting new listings emailed to my clients before everyone else sees them, so my clients beat other buyers to hot new listings and foreclosures. Since about mid-March 2009 I have been increasingly involved in multiple offer situations in just about any new listing under 120K, especially Foreclosures that my clients have been interested in, I don't think I've have a client bid on a Grand Rapids Foreclosures without getting in a multiple offer situation, unless it was really far away from Metro Grand Rapids. This frenzy and almost panic to get homes, has made me realize there really are a lot more buyers in the market place, because I’m normally there before most other Realtors, and since there are so many buyers I’m starting to bump into them more. This Panic has made think about recommending putting offers in before they see the home if it looks good, and then schedule a time to look at it. It's almost ridiculous. I've had 3 different clients in the last week see something they like and it sold within the next 24 hours, I had one sell while I was sitting in the driveway getting ready to show it, the other realtor called and said they accepted an offer. In my estimation this buying frenzy is solely because of the federal $8000 tax credit or Rebate check offer which expires on Dec.1 2009. This brings me to the points I'm getting at.

1. Be prepared to write an offer if you see a good home on the spot, and trust your Professional Realtor to advise you on that fact.

2. If you're not prepared consult your Realtor on getting prepared. Making sure you have a pre-approval letter or bank statement ready, and a checking account with at least $1000 ready to write an earnest money deposit check.

3. Financing is taking longer than it did a couple years ago, do to the mortgage world turned upside down, so expect the banks to want lots of documentation and make you jump through hoops, also expect 30-45 days to close on a home, after you get an accepted contract.

4. Don't wait till the wire on the $8000 Tax Rebate Credit, make sure you have found a home by Mid October, and have it under contract. At the end of November is a holiday "Thanksgiving" right before the tax credit expires and banks and title companies are going to be off, and there is a good chance you might not make it before the deadline dec. 1.

5. If your really Serious, make time to see homes, people make time to visit the Dentist or Doctor during the day make time to visit with your Realtor if something special turns up, otherwise it will be gone before you know it.

Note: over priced homes are still not selling, you need to have a market price to get involved in the buying frenzy. If you home isn't seeing any action... It's over priced.

Top 3 things to do to increase your homes value.

1. Stage your home for sale

2. Keep home and yard extremely clean

 3. Increase homes curb appeal and or fix-up (update) kitchen and baths.

Now that the snow is finally starting to disappear around us, Michiganders are starting to put away the snow shovels and bring out the rakes, brooms and fertilizer to get started on spring yard maintenance. One area that can be greatly overlooked when it comes to spring cleaning time is the roof. If you're considering putting your home on the market, currently looking for a new home, or just want to improve your home's appearance, there are a few options you have for getting rid of that blue-green-grey gunk that's chilling between your shingles.

Quick science lesson: the build-up is known as Gloeeocapsa Magma. It's a single-celled typed of cyanobacteria which uses photosynthesis, or in case you can't remember all the way back to seventh grade science class, it can produce it's own energy. Give these little guys water, sunlight, carbon dioxide, a good surface to call home and a bit of additional food and they are all set.

Before starting any cleaning effort on your roof, it's recommended that you call either the roofing company that carries the guarantee on your roof or the manufacturer of your shingles. They may offer a cleaning service, recommend someone or suggest a way to do it so you'll be certain not to void any warranties. If you're not a Do-It-Yourself-er, try calling several contractors before settling on one to make sure you're getting the best deal possible.

For a cheaper, but more time consuming route, there is the DIY option. The Asphalt Roofing Manufacturers Association recommends using a combination of chlorine bleach, water and TSP- trisodium phosphate.

The best method that will give you the results you want is with a chlorine bleach. It will clean the bacteria on contact and penetrate deeply into the shingles where additional algae may be hiding. The downside of this is how harmful it can be to plants that you do want around your home-shrubbery and grass around the home should be properly covered so they don't suffer the same end as the roof growth.

Another option that is not as caustic and gentle on shubbery is that of an oxygen bleach. Because they are gentler, they won't kill off as much of the Gloeocapsa Magma. While it will get rid of most, if not all of the surface staining, you will likely have to get back up and clean your roof again next year.

Hopefully this information was not only informative but helpful too!

Thanks to Lynn Kincaid of Saver Systems in Richmond, Indiana for the great information.

Across the state in October 2008, students in grades three through nine participated in the Michigan Educational Assessment Program, or MEAP. The chart below shows student's percentages of meeting or exceeding state standards. Using these scores may be a helpful reference for deciding which school district you may want to consider when moving.

 Below are the scores for 3rd-8th grades. E=English-combination of reading and writing, M=math, S=science, SS=social studies, NA=tests not taken

Chart from the Grand Rapids Press, Friday, April 3 2009.

Why Use an ABR®: (REALTORS® Experienced in Buyer Representation)

Buying a home is no small matter. Besides being the largest financial transaction you may ever undertake, it’s probably also the most complex. There are many good reasons to work with a qualified real estate professional—especially a trained professional who has earned the Accredited Buyer’s Representative (ABR®) designation, representing best-in-class buyer services.

When you look for an ABR® before you look for a home, you’ll be served, not sold. Your interests become their interests. And you’ll be working with someone who has gone the extra mile by completing specialized training in delivering the best in buyer-representation services. Plus, a REALTOR® who has an ABR® Designation also has an established track record, with proven experience in representing the concerns of homebuyers.

The ABR® Designation is awarded through the Real Estate Buyer’s Agent Council, or REBAC, which was founded in 1988 to promote superior buyer-representation skills and services. REBAC is an affiliate of the National Association of REALTORS® (NAR).

Find a Buyer’s Rep – Directory of ABR®s and other buyer’s reps working to achieve this designation. You can look for me (Mark Brace) in the directory, I am a registered ABR with the National Assocaiation of Realtors and the Real Estate Buyer's Agent Council.

ABR's are among the Top 2% of Buyers Agent Realtors, They have taken the ABR Training class with specialized education offer by the Real Estate Buyer's Agent Council, And In addition have meet the feild requirements need to to be awarded the ABR designation.

If You are thinking of buying a home in Grand Rapids Michigan you should contact Mark Brace, from Prudential Preferred Realtors to use as your personal Buyers Agent.

Here is a great video that explains, in simple terms, the credit crisis and how exactly we got to where we are and why.

http://www.vimeo.com/3261363