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Bargain Bin Shopping
Westminster, CO housing market is competitive and it makes sense that prospective buyers are becoming increasingly interested in foreclosures. After all, some of these properties – which accounted for about 20 percent of home sales in June, by the way – are selling at up to 50 percent less than comparable homes. If you are interested in rummaging through the bargain bin, here’s a primer:
1. Find listings – This is the easy part. You don’t need to show up at courthouse auctions or search through legal filings to find a home in Westminster or other Denver areas. All you need to do is look on sites that allow you to search for foreclosed properties, like http://bit.ly/qVL5Je. Just use the Listing Type search filter to narrow down to these sales. When you are ready to start looking inside, call me at 720-331-2444.
2. Work with a specialized agent – A real estate agent who specializes in foreclosures is not only a time saver, but a necessity. They will guide you through the process, help you find the best properties, tip you off to the various issues/challenges/risk, and do the nitty gritty along the way, from researching property title documents to recommending reputable inspectors and contractors. Westminster, CO may not be the easiest location to find a bank owned home but most of the neighborhoods are now holding their value.
3. Understand your buying options – While you can buy directly from the owner (before they’re officially foreclosed on), or try your hand among the seasoned investors at an auction, the safest way to buy a foreclosed property is to buy it back from the bank (bank foreclosed properties are also called real estate owned, or REOs). That’s because you can inspect the home before you buy it, and you can finance the purchase with a mortgage. Furthermore, when a bank takes back a home, it will clear any outstanding liens. A seasoned Realtor can guide you through the process and show you the neighborhood trends so you can feel confident about your offer.
4. Budget for repairs/renovations – Don’t underestimate the amount of work that may be needed to restore the home to a “livable” condition as these residences are sold “as is.” You can easily factor in 10 percent for updates and repairs on any foreclosed purchase. We also have lists of preferred vendors who have lots of experience with these homes and can give you a bid for a rental or an upgraded version for a homeowner.
5. Make an appropriate bid – Banks aren’t necessarily selling foreclosed homes in Westminster, CO at the kind of fire sale prices you’d find at a pre-foreclosed sale or at an auction, but that doesn’t mean you shouldn’t haggle – particularly if the bank has a huge inventory of foreclosed homes, and the property has sat vacant for some time. Just make sure you’ve done your homework, taking into consideration not only the price, but also the condition of the property, and the surrounding neighborhood. (Ideally, you want to find a foreclosure in a neighborhood that doesn’t have very many of them.) Also, get your financing pre-approved before you bid so you know what your top price and payment will be.
Some material provided by Vera Gibbons who is a financial journalist based in New York City.
Westminster Co Top Tips to Save Money on Landscaping
As any homeowner knows, landscaping can cost much more than one might initially expect. You can save money and have a beautifully landscaped home by doing more yourself and with these tips:
1. Hire a consultant – Hiring a landscape designer can be an expensive proposition. Save money by creating and drawing your own plan then hire a landscape designer to review your plan. There are many sites on the web you can go to that will also help you design and visualize what your home could look like with some more foliage. A specialist, as well as books, web sites and your local garden center can help you find plants that will thrive in Westminster CO high plain climate. Try to vary plant size, texture and color to provide an interesting pallet throughout the season. You could even try a Moonlight garden which consists of all white plants that really make your yard pop in the evening if that is when you entertain.
2. Divide and trade – If you like plants and/or trees that your neighbor has, ask if you can divide plants and trade with them. Dividing plants helps out a neighbor whos garden is overgrown. It also gives you a variety that grows well in Westminster. Some older neighborhood have more unique heirloom plants that have been in gardens for generations.
You can also offer to have seed exchanges with neighbors. After plants have bloomed and the flower has dried, you can scatter the seeds in your garden or give them to neighbors who have admired your plantings. What a great way to meet neighbors and interact with your community in Westminster.
3. Buy small – Oftentimes it is less expensive to buy a number of smaller plants than one larger one. Buy smaller, save money and watch your plants grow over the coming couple of of seasons. If you have ever notice an overgrown yard, you can see what happens by buying too many plants or varieties that grow too large for the area you planted them in.
4. Check alternative sources – Do some research to find alternative sources for trees and plants. Some cities and foundations give away free trees. Oftentimes botanical gardens and plant societies have plant sales and giveaways. In some areas, even HOA associations will replace a boulevard tree that has died. At the end of the summer, many garden centers offer trees at deeply discounted prices so they don’t have to carry them through the winter. In Westminster CO, you may need to supplement the natural water as some winters tend to be very dry. You don’t want to lose something after all the work you did to get it planted.
5. Compost – Save money on buying soil and fertilizer by composting. All you’ll need is a small, fenced off area of your yard cordoned off with chicken wire and 2 x 4′s. Garden Centers and even have the pre-made variety. This can save a lot on fertilized and reduces the amount of chemicals in our environment.
6. Use what you have- Work with the plants and trees you already have. If a tree, plant or shrub is not thriving as you like it to, take time to do some research. You can find pruning and plant care advice online or ask your favorite garden retailer. If it is small enough, you can move it to another location in your yard where it can thrive. As folige grows denser, you may not have as much sun light coming to your plants. Pruning or relocation is a great way to change the percentage of sun in your yard.
7. Take a phased approach – Keep in mind that you don’t have to create your dream design all at once. Split your plan into affordable phases and complete each phase as time and money permit. You’ll save money on financing costs and have time to adjust your plan and shop for the best prices as you go along.
The Westminster CO Real Estate market for the past 4 – 5 years has had it’s share of distressed sales of REO’s and Shortsales. The percentage of sold Shortsales and REO’s in the Metro Denver market has consistently been in the 35% – 45% range as our market has suffered through an unprecedented downturn. While the share of distressed sales is still in the 40% range, the MIX of sales has changed over the past several years. Since 2008 the share of REO properties sold in our market has steadily fallen while the share of shortsale properties has steadily increased.
For example, in 2008 about 1/3 of all sales were REOs but only 10% were shortsales. By 2010, REO’s and shortsales each made up about 20% of the sales. This change in the mix of sold properties reflects the concerted effort of the U.S. government and the large banks to intervene with home owners before their property goes to public sale. Clearly, these efforts have met with mixed results but the data do support that there has been a slow transition away from REO’s and towards shortsales.
So what do we see for the future of the Westminster CO Real Estate Market? The housing market is going through an unavoidable hangover from the go-go days of 2000 – 2006. There is clearly no easy solution to the problem and the more misguided government intervention is foisted upon the market the longer the inevitable recovery will take. Worrying about the market will not help. Dealing with the reality at hand is the only way to proceed. Our market will recover in pricing when demand outstrips supply. Westminster CO has always been a desirable location to live in and as corporations continue to relocate and expand along the I 36 corridor, we will see improvment in the real estate market.
Here is one way we see that happening. The longterm investors who are picking up properties in the under $150k range are buying up everything they can, helping to support this segment of our market. They are taking advantage of a combination of record high home affordability, record low interest rates, reasonable lending guidelines, record low vacancy (1.4%!), and consequently rising rental rates. Never before have we seen a combination of factors that more effectively supports a longterm investor’s goals. As rental rates continue to climb they make home prices relatively more affordable. Already, it is cheaper to buy than rent in many portions of our market, especially under a $200k home price. Sooner or later, renters will overcome their resistance to purchasing a property (brought about by the psychology of the downturn) when they realize they can buy cheaper than renting. This will be one of the main factors that will begin to put upward pressure on home prices. We expect this phenomenon to unfold over the next couple of years.
For more information regarding market trends in Westminster CO or in your neighborhood, check out my Real Estate Stats Tab or call me at 720-331-2444.
Here’s what you need to know about getting a mortgage for an investment property:
- If you are buying a 1-unit investment property, you need 20% down. Fannie Mae underwriting guidelines say you only need 15% down. However, you also need mortgage insurance if you have less than 20% down, and no mortgage insurance company is willing to insure an investment property. You need the full 20% down to avoid the mortgage insurance.
- If you are buying a 1-unit investment property and you put 25% down, the rate will be cheaper. The difference in the rate depends on the day you lock the interest rate, but it will always be less if you put the extra 5% down.
- If you are buying a 2-4 unit investment property, you need 25% down.
Here is some more useful information regarding retirement reserves.
Fannie Mae has just tightened their underwriting guidelines regarding the use of retirement accounts as reserves.
Borrowers are sometimes required to have reserves to get approved for a loan. Reserves are funds that the borrower has left over after paying for the down payment and closing costs. 60% of the vested amount in a retirement account can be used as reserves. That is not a change from the former guidelines.
However, the new guidelines state that if the borrower is only allowed to withdraw money from the retirement account because of employment termination, retirement, or death, then none of the money in the retirement account can be counted as reserves.
This is important to know because the underwriting software used to issue pre-approvals does NOT determine whether the money in a retirement account can be counted as reserves. If the lender pre-approving your client doesn’t check to see if the reserves can be counted before using the software, the pre-approval may be invalid.
Feel free to call me if you would like a hot sheet on some of the best deals in Metro Denver! We have monthly property tours of investment property. Give me a call at 720-331-2444.
One more reason to use a great lender who know the ins and outs of getting a mortgage that is right for you. Investment property loans are as easy to get approved as anything else. Use a good lender and it goes very smoothly.
Renters have been happy to sidestep the drama homeowners have suffered in the roller-coaster housing market. But they are now facing the downside of the real estate market’s correction. With apartment and rental housing construction halved in recent years and a wave of former homeowners competing for apartment space with “echo boomers” and other renters, conditions have suddenly ripened for landlords to raise the rent. In Westminster CO we have seen unprecedented vacancy levels below 3% to 4% which seems likely to continue.
Last year the rental market quietly shifted from a tenants’ market to what is now decidedly a landlord’s market, said Chris Herbert, research director at Harvard’s Joint Center for Housing Studies. The supply of properties is tightening and vacancy rates are dropping, so landlords have been emboldened to raise the rent. Nationally, rents are expected to rise 5 percent this year and another 5 percent in 2012, according to Greg Willett, vice president of research and analysis at MPF Research in Carrollton, Texas. The trend is not expected to moderate until 2013, when new multifamily housing construction adds to supply and the housing market stabilizes enough to attract new buyers.
For example, lets say you share a two-bedroom apartment with a friend in thede Legacy Ridge neighborhood. The duo split the $1,200 monthly rent, but they were surprised this month when their landlord lease came up for renewal and their landlord asked for a 10% percent increase, to $1,320. The tenants were pretty upset about it of what would amount to nearly $60 more per month per person. They thought a 10 percent increase was ridiculous.
there is a happier ending to this story. They persuaded the landlord to curb the increase, capping his new rent at $1,250. The roommates and landlord have a verbal agreement for that new rental rate, he says, with a new lease signing imminent. But his ability to talk his way out of a bigger rent increase makes him more of an exception than the rule this year, according to experts.
“In California, landlords have to file a 60-day notice if they plan to raise rents by more than 10 percent,” Herbert says. “And in some markets, we’re once again seeing them issue those notices.” Of course all rental markets are local, and the trend is more pronounced in the Denver Suburbs for example, than in Central Denver where buying is still more expensive than renting.
In its annual State of the Nation’s Housing report released last week, the Harvard center said rising rents and the rising cost of owning a home are forcing Americans across all income levels to pay a higher proportion of their income for housing. As of 2009, more than 19 million households paid more than half their incomes for housing, including more than 10 million renters, according to the study. Households in the $45,000 to $60,000 income range have faced a particularly sharp increase in the housing cost burden over the past decade.
No one likes seeing the rent rise — but for renters, increases are often a fact of life. And even with the current rent hikes, rental rates in most markets haven’t even returned to prior highs set in 2007 and 2008, according to Willett. “I think consumers have been taught to think the rent goes up every year, and generally it does,” says Willett. “But it’s the degree of increase that can bother renters. You look at the increase and you make that decision whether or not to move every time the lease comes up. If you’re renting now and you’ve just renewed for 12 months, you’ve probably got one more round of increases before things stabilize.”
Considering that the government-sponsored mortgage buyers Fannie Mae and Freddie Mac are facing potential reforms that could tighten lending standards, and that there’s still a heavy supply of homes for sale, some say renters may not be swayed to move into the ownership market for many years — especially if many new renters tend to be younger. Most first-time buyers are in their early 30s, according to data from the National Association of Realtors. In Westminster CO, the 24-year old renter will probably be at least 29 before they think about buying. That means that they, and others in their age range, may suffer through a few rent increases before they move to ownership.
To hear landlords discuss the marketplace, the good times have returned.
National apartment operators have adjusted their 2011 forecasts in recent weeks, citing a strong market that is allowing above-average rent increases. Avalonbay Communities, which owns 187 apartment buildings in ten states and Washington, D.C., said this month that rental revenue is expected to increase from 5 to 5.75 percent this year, up from a prior estimate of 4 to 5.5 percent. “At this point we don’t anticipate a recovery in for-sale housing until at least 2013,” Michael Schall, president and chief executive officer of Essex Property Trust, stated in an earnings conference call last month. “We are now confident that the apartment supply and demand equation is tipping toward housing shortage and thus both rents and occupancies are improving.”
Essex, which owns properties mainly in coastal cities, stated that Northern California and Seattle markets are ahead of Southern California markets, seeing high occupancy (meaning: low vacancy) and a recovery ahead of other areas in the company portfolio. Chicago-based Equity Residential, which owns about 440 apartment building in major markets such as New York, Boston and Phoenix, reported that it’s expecting net operating income (which includes rental revenue) to rise from 5 to 7.5 percent this year.
Tammy Kotula, spokeswoman for Apartments.com, an online guide to apartments, urges renters to negotiate with landlords, or if they know they’re staying awhile, get a multiyear lease that allows tenants to lock in a low rent. “You can definitely talk to your landlord and ask to negotiate,” she says. “A two-year lease is a pretty popular option.” Just don’t expect keeping your rent down to be the cake walk it once was.
Material taken from an article by Jane Hodges a Seattle-based writer and msnbc.com contributor.
Homeownership is Still the Best Investment
In Westminster, CO, a Pew Research study done in March revealed that 81% of adults still believe buying a home is the BEST long-term investment you can make. What’s amazing to me about this study is that 47% of the respondents said that their home has dropped in value in the last few years and they still believe this! And 81% of Westminster, CO renters want to buy a home.
Here are the latest statistics showing the trends in the Metro Denver market.
Active Listings: 15,238
Under Contracts: 3,878
Solds: 2,735
Average Price: $271,969
Average Days on Market: 109
Overall, our inventory is low right now. We have on average 5.6 months of inventory which gives our sellers a tiny bit of an advantage in the market place.
Want to know where your home fits into this?
Finally, local statistics shows that homeownership remains the NUMBER ONE goal for American adults. And homeownership can help people achieve goal their others as well. Want to know where your home fits into this? Contact me today at (720) 331-2444or mikoda@q.com.
Residential Improvement Reminder from City of Denver
When work is done without permits, it comes to light at the time a property is sold, refinanced or when a contractor or neighbor notices a problem and reports it to the City. This applies to many of the metro area suburbs too! FHA appraisers may look at this when it comes to appraising your home. If you do not have a permit for the work in a finished basement, those bedrooms, baths etc. may not count into your appraisal.
Be sure and check with your local permitting office to see what you need. Each county and city may vary and the laws also change from time to time. Before you start to work on your home, check out the building and permitting office just to make sure you are in compliance. Below are some good tips to follow.
Protect Yourself with Building Permits
· Permits protect your safety.
· Permits protect the resale of your home and are required by lending institutions.
· Unpermitted work can void insurance coverage and violate local Zoning and Building Codes.
· Permits add value to your project and require that inspections be performed to verify that work was done correctly.
· Have your contractor pull a permit because the permit holder is responsible for compliance with the Building Code.
 Denver Townhomes Common Projects That Do Not Require a Permit
Replacing an electrical fixture with a like fixture
Replacing a plumbing fixture with a like fixture
Painting
Carpeting
Floor tile
Projects That Require a Permit
· Most decks
· Additions
· Bay windows
· Patio Covers
· Garages
· Car Ports
· Basement Remodels
Utilizing Contractors
· Seek at least three bids.
· Verify that your contractor is licensed.
· Check web sites like the National Association of Home Builders for helpful tips.
· Have a written contract detailing that the contractor will pull a permit and outlining the work to be performed, cost associated with each task and time frame with estimated start and finish dates.
· Always get a receipt for payments made to contractors.
· Make payments beyond a deposit to your contractor only when you get something in return, such as materials delivered to your address.
· For large projects, before each payment, ask for a walk through with the contractor explaining the work done so far and what will happen next.
· Never pay in full until the job is complete, has been inspected and the building permit has been closed.
Learn more at www.DenverGov.Org
Foreclosure Activity in Colorado 10th in the Nation!
Foreclosure activity in the U.S. has fallen to its lowest level in 40 months, according to RealtyTrac. The company’s foreclosure market report for April shows that filings – including default notices, scheduled auctions, and bank repossessions — were reported on 219,258 properties last month. That figure represents a 9 percent decline compared to March and is down 34 percent from a year earlier. It marks the seventh straight month that RealtyTrac has recorded a decline in foreclosures, but the company says it doesn’t necessarily mean we’ve turned the corner.
“This slowdown continues to be largely the result of massive delays in processing foreclosures rather than the result of a housing recovery,” said James Saccacio, RealtyTrac’s CEO. “The first delay occurs between delinquency and foreclosure, when lenders and services are no longer automatically pushing loans that are more than 90 days delinquent into foreclosure but are waiting longer to allow for loan modifications, short sales, and possibly other disposition alternatives,” Saccacio explained. He says data from the Mortgage Bankers Association shows that about 3.7 million properties are in this limbo stage of between serious delinquency and foreclosure. “The second delay,” Saccacio continued, “occurs after foreclosure has started, when lenders are taking much longer than they were just a few years ago to complete the foreclosure process.”
As evidence of this extended timeline, RealtyTrac’s study found that nationwide, completed foreclosures in the first quarter of 2011 took an average of 400 days from the initial default notice to REO. That’s up from 340 days in the first quarter of 2010 and more than double the average 151 days it took to foreclose in the first quarter of 2007. The foreclosure process is taking much longer in some states. The average time frame from initial default notice to REO in New Jersey and New York was over 900 days in the first quarter of 2011, more than three times the average timeline in the first quarter of 2007 for both states.
The full foreclosure process in Florida took an average of 619 days in the first quarter, up from 470 days in the first quarter of 2010 and nearly four times the average of 169 days it took in the first quarter of 2007. In California, the foreclosure timeline extended to 330 days in the first quarter. It was 262 days a year earlier and just 134 days in the first quarter of 2007.
Even with processing delays, the curb in activity last month wasn’t entirely widespread. RealtyTrac says REOs hit a new record high in Nevada, while defaults spiked in Massachusetts and New Jersey. Ten states accounted for 70 percent of U.S. foreclosure activity in April.
- California with 55,869 properties receiving a filing during the month.
- A total of 19,649 Florida properties received a foreclosure filing in April, the second highest state total despite a 59 percent decrease from April 2010.
- Arizona tallied the third highest state total with 13,419 properties receiving foreclosure filings in April, followed by Michigan with 12,996, and Nevada with 11,761.
- Other states with foreclosure activity totals among the nation’s 10 highestlast month were Illinois (10,055), Texas (8,793), Georgia (8,479), Ohio (7,962), and Colorado (4,379).
In Colorado, Westminster Real Estate is still seen as a solid investment and Coloradans in general are more optimistic about the economy and the future. We have expanded our economy by adding a lot of green industries and hope that this transition will bring more job growth as well as higher paying jobs into our community. One of the driving forces in the economic recovery is a mindset that we are optimistic about the economy and our future.
A new survey of 841 financial professionals by SmartBrief and the international polling and market research firm Ipsos has found that a majority (67%) think that stock prices will rise in the next 12 months and the country’s economic output will increase (65%), and 59% said they expect unemployment to decrease slightly in the next 12 month. In Westminster, CO we have seen a stabilization in our unemployment and have stayed lower than most of the county in unemployment rates.
Unfortunately, even such modest optimism among financial professionals is tempered by expectations of rising health care costs (88%); higher fuel prices (85%); rising prices for durable goods such as appliances, automobiles and consumer electronics (72%); and slightly higher interest rates (59%). Westminster, CO residents have seen gas prices rise but not to the extent of the rest of the country and maybe this is due to having the SUNOCO refinery in our community. Their decision to open a new campus in Louisville, CO will help Westminster Real Estate buyers by providing new job opportunities.
In Westminster, CO, home prices have leveled off and this spring we are seeing good sales even though we do not have the tax credits of last year. There are still great buyer opportunities with bank owned and HUD properties. Resales of homes in great condition with appropriate upgrades have been strong too. We have seen multiple bid situations that means there are a lot of people out there competing for homes. The mid to homes over $500,000 have been a little slower and in some cases homes are being deeply discounted to attract the right buyer.
“Financial professionals are cautiously optimistic about economic prospects in the near term; indeed, they think that the overall scenario will improve, and they’re making business decisions on that basis, such as increased investment and hiring,” said Ipsos Managing Director Cliff Young. “That being said, there are still concerns in the short to medium term about the increased costs of inputs such as fuel and durable goods.”
In the survey, while 77% said they expect the nuclear disaster in Japan to drive greater investment and funding into renewable energy, they were evenly divided on whether it will funnel more money into development of fossil fuels. Colorado still has great opportunity to develop these fuels and the optimistic view of the economy will help to re-energize our economy through stable and strong growth in home sales in Westminster CO. Optimism about the economy as well as strong leadership in our local governments will help real estate in Colorado to rebound in the upcoming years.
LEADERSHIP INDEX DATA: TECHNICAL NOTE
The new SmartBrief/Ipsos Leadership Index was conducted online between March 28 and April 5 among SmartBrief subscribers in the finance, investment, equities, futures, banking, and equipment leasing and financing industries, as well as CFOs and other financial professionals. Surveys of this size have a margin of error of +/-4 percentage points.
As the rules for getting a home loan have tightened, the list of documents that home buyers must bring to their lenders is expanding. Home buyers and sellers often bristle with the mere thought of all the paperwork they expect they’ll have to come up with to do their transaction. this is above and beyond the basic loan application, contract, disclosures and closing docs from the real estate side of the transaction.
The worries start way in advance, before they even start visiting open houses. Some buyers begin to visualize – and even dread spending hours upon hours in the dark catacombs of their filing and bill paying systems combing through ancient files going back two maybe even three years.
 Too Much Paperwork In some respects, this vision of the experience of obtaining a home loan might not be to far off. Granted there are many hoops through which to jump and occasionally a loan underwriter requests something sort of bizarre. But more commonly, there’s a pretty finite universe of documents you’ll really need to scrounge up to get your home bought – or sold. Here are some of the more commonly asked for documents:
- ID (e.g., driver’s license, state-issued ID, passport). Who must produce it? Buyers and sellers. Lender wants to know that you are who you say you are. Also, buyers and the title insurance company wants to make sure you don’t have any outstanding leins or unpaid taxes. Sellers need to prove that you actually have the right to sell the home. This commonly goes unrequested until you get to the closing table, when you are requested to show it before signing. Most mortgage brokers and even some real estate brokers and agents may ask to see it earlier on.
- Paycheck Stubs. Who must produce it? A buyer financing their purchase with a mortgage. Buyers’ purchase price ranges are determined, in part, by their income and assets. Sellers usually only need to produce this in the case of a short sale and also have to prove an economic hardship.
- Two months’ bank account statements. Who must produce it? Buyers getting financing or sellers selling short. Buyers’ lenders now require proof of regular income and proof that the down payment money is your own or properly document with something like a gift letter from a relative. Short sellers? It’s all about the hardship.
- Two years’ W-2 forms or tax returns. Who must produce it? Mortgage-seeking buyers and short selling sellers. Why? Banks want to see a stable, long-term income. They also limit you to claiming as income the amount on which you pay taxes (attn: all business owners!). And in short sales, again, they want documentation of every single facet of your finances.
- Updated everything. Who must produce it? Buyers who are mortgage applicants. These things change and because the time period between the first loan application and closing can be many months on today’s market. During the time between contract and closing it’s not at all unusual for underwriters to demand buyers produce updated mortgage statements and checks stubs. It is also quite common for them to call your office the day before closing to request a last minute verification of employment!
- Quitclaim deed. Who must produce it? Married buyers purchasing homes they plan to own as separate property. Married sellers selling homes that they own separately or joint owners selling their interests separately. With the Quit Claim Deed, the other spouse or owner signs any and all interests they even might have had in the property over the the selling owner, making it possible for the title insurer to guarantee a clear and undisputed title is being transferred in the sale.
- Divorce decree. Who must produce it? Buyers and sellers who need to document their solo status or the property-splitting terms of their divorce. This ensues that the seller has the right to sell. Recently single buyers might need to prove that they shouldn’t be held to account for their ex’s separate debts or credit report dings.
- Gift letters. Who must produce it? Buyers using gift money toward their down payment. The bank wants to be sure the gift came from a relative and is their own money to give. They also want the relative to confirm in writing that it’s a gift, not a loan since a loan would need to be factored into your debt load.
- Mortgage statements. Who must produce it? Any seller with a mortgage. Since the title company will need to use them to order the payoff figurea from any mortgage holder who has to get paid before the property’s title can be transferred.
By no means is this an exhaustive list. Call your lender or give me a call if you are wondering what and when you will need to produce the documentation referred to above. Nancy Mikoda at 720-331-2444.
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