There is a lot of buzz across the airways about the upcoming "credit score changes." But, what does it all mean and how will it affect each of us? Given that credit scores directly impact real estate lending, I wanted to share a good article that gives you some of the highlights. 
​January 30, 20203:13 PM ET
Heard on All Things Considered

If you’re lucky enough to get down-payment help under the tree this year (or generous enough to give it), be sure you know the rules around gift funds. It’s not as simple as handing over a wad of cash with a note that says “Happy Holidays! Here’s a little something for your new house.”
Down payment gift funds must meet certain requirements or the gift giver and recipient face trouble down the road. From writing a gift letter to rules around repaying gift money, here are basic facts homebuyers and donors should know.

We all know the drill... We are approaching the new year and everyone is busy making their list of what they will commit to in the new year. Will you get in shape? Try something new? Look for a new job? Renovate your house? The list goes on. But, what about considering some new year's resolutions for largest investment, your home? This article provides some food for thought in this area.

If you own/purchase a home in certain flood zones and you have a mortgage on the property, there doesn't tend to be much of a decision on whether to purchase flood insurance or not as the lender is likely to require you to. But, what about when it may not be required because you paid cash or you aren't in the flood zone requiring it. This is a great article shared by the Florida Board of Realtors to help home buyers/owners make decisions about flood insurance including an overview on why you may need flood insurance, how flood insurance works and other related topics. 

The journey of life is an exciting one that is part intention and planning and part accident. When you reach that chapter of your life that is most often planned where you are considering retirement, there are a number of things to account for... income/savings, family distribution, assets, etc. Jim Vogel has provided this guest blog to help you when thinking through one of your biggest assets, your home.

Having a rolodex of service providers you can count on is important as a real estate professional. Not only can they help ensure that your customers get exceptional service, but they can also help keep agents informed and educated about topics closely impacting the industry. I wanted to share an article from one of those resources below to help explain costs associated with closing on the sale/purchase of a home. This article is contributed by Dori Zinn (9-25-19).

These days, most buyers will complete a home inspection by a licensed inspector. Following the actual inspections, the buyer's agent will submit the documentation to notate any repairs that the buyer is requesting to the listing agent. This can often turn into a round of negotiations as both parties evaluate the "reasonableness" of the requests and whether they repairs are within the confines of the sales contract. ​

These days, most buyers will complete a home inspection by a licensed inspector. Following the actual inspections, the buyer's agent will submit the documentation to notate any repairs that the buyer is requesting to the listing agent. This can often turn into a round of negotiations as both parties evaluate the "reasonableness" of the requests and whether they repairs are within the confines of the sales contract. 

The seller is not required to fix all the items. It's not unusual for the buyer and seller to go back and forth several times before reaching an agreement. However, once both parties have agreed to the terms, the seller is contractually responsible for completing all repairs as negotiated.
What happens if the seller doesn't complete the home repairs as specified?
It's important to remember that both the buyer and the seller want the same thing--to get to the closing table. With that in mind, the buyer should proceed carefully but know that the contract will side with him if the seller hasn't performed his due diligence in getting the repairs completed. 
If the closing date is fast-approaching and the buyer's agent still hasn't received the repair invoices, he/she will contact the listing agent to determine the status of the repairs. Technically, the seller has until the final walk-thru to complete all repairs.
At the final walk-thru, the buyer will have the opportunity to scrutinize the repairs. If the repairs are not completed as contractually agreed upon, the buyer has five options:
1. Postpone closing until repairs are completed. Buyers often times have their belongings loaded in a moving truck and don't want to delay the closing. If this option is chosen, the buyer and seller will need to extend the closing date with an executed addendum.
2. Request the seller put funds in an escrow account until the repairs are completed. This is less desirable for the seller but allows all parties to close as specified. If the seller doesn't comply by a date agreeable to both parties, the buyer is issued the money to make the repairs himself. If the seller completes the repairs, the escrow money is returned to the seller.
3. Request a credit from seller to complete the repairs. This can be risky as the costs may be higher than the buyer anticipates but it does allow him to complete the sale at closing.
4. Re-negotiate repairs. While this is not favorable for the buyer, it may become necessary to proceed with the home purchase.
5. Cancel home sale for non-performance. Obviously, this is the least desirable option for both parties. It may be more desirable to re-negotiate the terms of the repairs than choose this option. However, that all depends upon the dollar amounts involved. If this occurs, the buyer will receive his earnest money back as the seller did not comply with the terms agreed upon in the contract. The buyer may also have grounds to file suit against the seller for breach of contract.
If you get to the final walk-thru and the repairs haven't been completed, take a deep breath and ask your real estate agent the best course of action. His/her responsibility is to get all parties to agree upon a reasonable solution. Don't have a knee-jerk reaction that could cost you the home of your dreams. After all, your primary goal is to complete the sale.
What happens if the seller doesn't complete the home repairs as specified?

Understanding the difference between pre-qualification and pre-approval is particularly important as a home seller so that you are prepared to assess the strength of offers that come in while you are selling your home. When a mortgage will be used to purchase your home, there are conditions that need to be met for the mortgage company to approve the purchase for closing. Because final clear to close determination comes well down the road, it represents a certain amount of risk that the deal will close. This article shares a little more insight to help you better understand exactly how much value these bank letters provide.

As we go through the many seasons that comprise our lives, there can sometimes be implications on our home selection. This can take many shapes... needing a larger home, needing a one-story versus two-story home, needing to be closer to something or farther from another. If you are considering downsizing, here are some tips to help you plan.

When you are ready to purchase a home, absorbing and understanding all the options for lending can make your head spin... you have to choose which lender has the most attractive programs for your needs... you have to choose which type of loan you need. And, to make it tougher, the lenders don't always present it in the same way to allow you to compare apples to apples. This article helps you appreciate and understand some considerations between a Fixed-Rate Mortgage and an Adjustable-Rate Mortgage (ARM).