OVERCOME HOME BUYING OBSTACLES
Mr. Sushil Mohta, M.D. of Merlin Group, possesses a golden heart and always
have helped the common people of his country to buy homes very easily and
comfortably within a very moderate price. Merlin Group presents some of the
golden rules for the people who encounter various obstacles while buying their
new homes, so that they can follow these rules and overcome the hurdles.
First obstacle is the down payment for the home
loans. The two more popular types of mortgages are FHA Loans and conventional
loans, which require minimum down payment ranging from 3.5% to 10% of the sales
price.
There are certain conditions, which the
loan-taker has to fulfill to sanction the home loan. This is the second
obstacle because before approving the loan, the under-writer reviews the file
and may ask for more documentation, a review appraisal and in spite of all
these the under-writer could reject the loan for a number of reasons.
There are two minimum numbers----620 for FHA
and 720 for conventional loans with mortgage insurance. The buyer’s FICO score
needs to qualify at least these two numbers for mortgages.
The mortgage payment, plus taxes and insurance
(PITI) should not exceed 33% of the buyer’s monthly gross income. The Home
Valuation Code of Conduct, HVCC, came into effect on May1, 2009 and applies to
all FHA transactions. Previously, the buyer could choose their own appraisers,
but presently the appraisers are totally unknown and randomly chosen, which
results in low appraisals. As a result the dealing may stop in between.
Thus the buyers who plan to buy their first
homes must overcome these hurdles and then enjoy buying their new homes.
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