Why Larry Cragun Why Windermere Real Estate

About Larry Cragun Windermere Real Estate I write this post to share why I believe I am a great choice for you to use to find your home or condo. Thus the title Why Larry Cragun Why Windermere Real Estate.

My Experience:

I have over 30 years of experience in this industry, including owning one of the largest mortgage companies in Washington State, which I sold prior to the housing crash. Understanding financing is a big asset for my clients.

My approach is to serve, be on top of all details, use every tool available, be there in all your needs, and have a soft approach to help people find the right home. It to me is a treasure hunt.

Last year I closed on a condo in Governors Plaza. The buyer came to me off of my website: http://ItsGreatInSaltLake.com/ She had been doing research and as I mentioned the condo product that was available out there she seemed to know they weren’t what she was looking for. She mentioned that she really liked Governors Plaza. Nothing listed matched her wishes. So I went to work looking for something not currently on the market and found the right one. It was perfect for her. It took a bit of price negotiating with the seller but all went down just fine.

This buyer is another example of my approach to this business. She was defensive when we first spoke on the phone. She had talked with other agents she felt were high pressure, were trying to immediately lock her down as their client. Sensing this resistance I shared my philosophy, “if it isn’t working between us, no problem”. I won’t try and contract you with a buyers contract, except when we make the offer and it will only be on that specific property, which contract is required by Utah law. Mutual respect is the rule I try and follow and look for.

Windermere, like no other: If you are serious about the luxury market you will come down to two brokerages to consider. A comparison will put Windermere as #1, I am convinced of this fact.

In Utah I was licensed with MediaOne Real Estate, a subsidiary of The Salt Lake Tribune and Deseret News. In January 2018 we learned that Windermere Utah had purchased MediaOne Real Estate. At first I, as were my colleagues, was extremely concerned about what this meant for us and our clients. The concern quickly turn to excitement. Their marketing power is unlike any brokerage I have been licensed with in my entire real estate career. I began to realize that I  had more to offer to buyers and sellers than before, and in fact I suggest I have more to offer now than my competition. Take for example the Matterport Camera Windermere just purchased. It provides the current internet shopper, which are the majority of shoppers the ability to actually walk through the home on line, with a beginning overhead view of the floorplan. It is amazing. I am currently scheduling filming with each of my listings to include a Matterport show for my sellers. List with me and you will have a fabulous tool to share, and for me to market with. It is at a cost to me, but man is it worth it. Here is a sample: . https://my.matterport.com/show/?m=ZLtu5NLjWjX

There is much more. New marketing announcements come often. If we meet I will share many other things we have at our disposal for you, such as the Living magazine Windermere publishes to high end and other targeted potential buyers.

To buyers, besides Matterport, besides our terrific search on my site, I have special tools to assist you. For example neighborhood news advertised at the bottom of my website. Subscribing here will provide you a monthly report by zip code of every on home or condo on market, under contract, and sold in that zip code, that month. You receive that report as long as you desire. Pretty cool for sure.

 

My partner and wife, luxury is her game.  :

The not too long ago photo includes my talented wife Kathleen. She is an important partner in my real estate practice. She has been an award winning and magazine published interior designer during her business career, and considered to be the best designer in whatever firm she worked for or whomever she performed her magic for. She brings to my clients an important eye on how to best present your home for sale. She is an important second opinion on home values, understanding that value is based on more than the square foot of the home. Having Kathleen as my partner is your asset. She’s also the  boss.

 

I am a leading Condo expert:

Selling condominiums is not like selling homes. Their are sometimes hidden risks not all agents can spot. An important issue is what does FHA think of the property. Is it FHA approved? If not why not? There are many things to understand and many things an agent needs to help you evaluate. I am good at this.

 

 

I love helping people with their real estate needs, as do most in this business. It’s a very satisfying career and I am glad to have come out of retirement to enjoy it again. I am pretty state of the art with technology, started a dotcom, am about to have a company publish an app I designed, and am grateful for finding a cool niche in Utah. I look forward to assisting some of you.

The good things we do with part of each of our sales is another thing we are proud of.

Click here for a short video

Luxury Real Estate Is Where We Are Unmatched. Add our design and lengthy experience to the mix: Winner!

When you place your luxury home in the  hands of a real estate agent, and company, you likely expect an extreme world wide and highly visible marketing effort. The kind of effort than can cost up to $10,000 to get your home sold. You expect the agent to do the best job possible.

This would include world wide exposure. Windermere has an unmatched package for you:

 

 

 

 

Posted on April 11, 2019 at 9:31 am
Larry Cragun | Category: Commercial Real Estate, Governors Plaza, Larry K Cragun, Windermere Real Estate | Tagged , , ,

Are You 62 or Older and Still Kicking It?

Here is a real plan if this is you; you are 62 or Older and Still Kicking It? Also, it’s a plan if your current home isn’t your dream home and you want to have that dream home. Are You 62 or Older and Still Kicking It?

I live amongst a lot of retirees. Some have packed it in and some are still kicking it. Which are you?

There is a way to move up in style without breaking your bank. Here are a few qualifying questions:

  • Is your home free and clear, or almost free and clear?
  • Would you like to move up to a dream home if you didn’t have to make a mortgage payment?
  • Are you willing to let the government (FHA) participate in a plan such as this?

The big question is will you let me explain this with an open mind on your part? If you are a regular follower of mine, like one person called me, her friend in the computer, you will know that I have a strong background in both real estate and mortgages. You may have also discovered that I owned one of the largest mortgage companies in Washington State at one time. I also owned a residential real estate office. Also important to this message is that last October Kathleen and I took advantage of this program.

I will illustrate the concept below with my own non artistic efforts.

These four homes are all either homes sold or currently on the market by our company, Windermere Real Estate. The home labeled as “current home” above could be traded for a dream home, similar to the others in the photo. Yes, you could trade up from the current home to one like these. If you are intrigued, don’t let self talk or talk from others prevent you from investigating.

These other three homes are or were priced between $549,900 and $599,000. The illustration above could be captioned trade your current home for a dream home.  The current home being free and clear is probably comfortable. Were it yours would you have liked it to be bigger, newer, or nicer? This FHA program which I am so familiar with would provide something similar with no new mortgage payment. It is for seniors over 62 or  older. The benefits are different for those of different ages.

Dream home? How is this for some write ups?

The home on top: Come and see this well kept fully finished rambler in a quiet neighborhood in South Jordan. This home features an open floor plan with large bedrooms. The front room can be either formal living or formal dining. The basement has a full kitchen, living room and separate entrance. In the spring enjoy barbequing on the patio in the backyard. Newer carpet with upgraded pad throughout. Needs a little updating. Pool Table in the basement is included.

The home on the right:

Beautiful rambler with many upgrades! Granite countertops with large kitchen island, knotty alder cabinets with soft close drawers, large open great room with gas fireplace, crown molding in formal living room, main floor laundry. Master bedroom with master bathroom which has a large corner soaking tub and separate shower. Finished basement with large game room, two more bedrooms and a full bathroom with lots of storage space including a cold storage room. The yard is amazing and has secondary pressurized irrigation water, a large covered patio, a workshop, a large RV parking area on the side, vegetable garden, fully fenced with plenty of space. The roof is architectural 30 year shingles, high efficiency furnace, central air. Close to shopping, schools, parks, and easy access to highways. A must see!

The home on the bottom:

Wow, Million Dollar View, with 1 Acre of Horse Property. Nestled above “The Cove” in Herriman. Next to hiking trail that will not have any homes built on it. Enjoy country living while living close to city amenities. Wonderful 2 story home with plenty of space. 2 Master Bedrooms, Beautiful gourmet kitchen with Viking stove and custom cabinets. Huge master bedroom with separate sitting room. Landry room up and down. Mother-in-Law apartment in basement with separate entrance. Over sized 2 car garage with tons of cabinets for storage. Several fruit trees in orchard by the giant garden. Another acre is available. Home is on a well with 1 water right available and city water stubbed.

I titled the post as “Are You 62 or Older and Still Kicking It? If the answer is yes, lets kick in gear  your dream home. It only take a little time and a lot of open mind to get this done.

Our residence is in a high rise condo in downtown. Only a couple of these buildings qualify. The trade could be made for a qualified condo. However if this applies: “Are You 62 or Older and Still Kicking It, you may want to make the switch to a home you would just love.

I am thinking of a couple who are friends of ours. Their home is like the proposed examples. They love having the space. Every Sunday their home is a meeting place for dinner with all of the family. It’s a Sunday tradition for them. The master is on the main but downstairs there is plenty of room for guests. Will you current home fit  your dreams? If not, give me a call, I am your guy to make a transition like this. These are just examples, we could get to the specifics based on your exact situation and desires.

I work in an wonderful business, and have done so for over 30 years, give me a call 801-244-1666 or if you are of the texting generation you can text me at 206-618-3724.

Posted on March 20, 2019 at 7:41 pm
Larry Cragun | Category: Larry K Cragun, Reverse Mortgages | Tagged , ,

Should Your HOA Be FHA Approved?

Should Your HOA Be FHA Approved? I recently dealt with an HOA where the HOA board debated on whether or not to renew their FHA approval. FHA will not make a loan on a building that isn’t approved. VA usually follow FHA. The approval process is in depth. FHA reviews the financial condition, the number of rentals, is in in a floor plain, is it properly insured, etc.

The approval must be updated and is good for two years. The board can start the renewal process six months prior to expiration and can go back within six months of expiration.

My efforts to persuade the board was based on the benefits to buyers:

There are two reasons that buyers use FHA: 1- to do a reverse mortgage 2- to have more lenient
mortgage underwriting. The prices in CRT and the size of the monthly dues virtually eliminates any FHA
buyers from using a typical 30 year mortgage to purchase here.
Benefit of FHA reverse mortgages to the HOA: STABILITY. People have to buy with about 50% down.
Using conventional financing it can be as low as 5%. With a reverse mortgage the lender will foreclose
on them if the HOA notifies the owner is delinquent on their HOA dues. The 50% down rule virtually
assures that you have an owner with a great deal at stake. The underwriting process gives reasonable
security that the buyer/borrower can pay their taxes and HOA dues with verifiable income.
FHA condo project requirements: The Building must be primarily residential, contain at least two
dwelling units – No more than 25% of the property’s total floor space in a project or unit can be used for
non-residential or commercial usage – No more than 10% can be owned by one investor or entity – no
more than 15% can be more than 60 days past due on their HOA dues – at least 75% of the units must
be owner occupied.

RE benefits for the building: 1- Demand – The more in demand a property is the more the value. Eliminating a source of financing
reduces the potential value. Mike Kline asked me to prove that FHA was a positive not a negative to CRT.
To me the way to measure that is value. The more in demand a property is the more the value.
Eliminating a source of financing reduces the potential value.
2- Restricting rentals: FHA does not encourage rental owners. The borrowers on reverse mortgages
must commit to owner occupancy. The HOA must account for the rental percent numbers which is one
of the main reasons for the two-year renewal process. Some of the buildings denied FHA have received
a denial because of too many rentals. Zion Summit and American Towers as an example.
3- Endorsement: Many knowledgeable buyers and/or their agents understand the FHA approval means
that important issues have been reviewed buy HUD. These would include too many rentals, a law suit on
the HOA, poor reserves, issues that might arise from the HOA meetings minutes, and any item they
consider a red flag.

The vote went 3 to 2 to renew. A homeowner and the HOA attorney made a different point that swayed the yes voters. That is, when times are tough having the ability for you to sell your home FHA may be critical.

 

Posted on September 9, 2018 at 11:01 pm
Larry Cragun | Category: Condominiums | Tagged ,

Sales Prevention Program #84: Sorry It’s Rented

It really is a bear of a situation, being an agent selling a home that is rented. Of course you want that income stream. The fact is that it will impede what is perhaps the right buyer from finding it.

In many cases it is worse on your pocket book to have it rented and for sale at the same time. I say this because the longer the home is on the market the more likely it will be that you lower the price. I don’t and won’t encourage that, but it is a fact.

In almost every price range and location there is competition. Your home isn’t the only one to choose from. If you throw any hurdle in the way of showing your home it is possible the right buyer might miss it. Maybe I should use the work probable, not possible. Rented homes almost always need appointments. Some renters don’t cooperate. Often the rule is at least 24 hour notice. There is one condo currently for sale in downtown Salt Lake City that only allows showings once a month. It’s pretty ridiculous to even have it on the market. In lesser extremes it’s still a problem.

Having your home presented for sale is important. I believe in staging it as practical as possible. I showed a home this week that was rented and kept in sloppy condition. Hey the renter doesn’t care, it wasn’t their home. Instead of staging this home was, shall we say, destroyed. In many cases the buying or not buying decision is made the minute they walk through the door. It is an emotional decision. To some buyers the condition affects the decision.

Sales Prevention Program #84: Sorry It’s Rented. Do you like snakes? I showed one rented home that had a python to greet you as you entered the living room? We did a fast exit out of the front door.  I wonder if the home ever sold.

We showed one home where the renter was present. Hey “no problem” they said. We were then treated to a clear explanation of everything that was wrong with the place.

Do you like smells of the unusual nature? We have been subjected to them. Renters rarely care, so there.

Of course it’s a financial situation. My suggestion, if you really want it sold, wait until the renter is gone to put it on the market.

Posted on May 14, 2018 at 7:44 pm
Larry Cragun | Category: Sales Prevention Programs | Tagged , , ,

Canyon Road Towers A Downtown Salt Lake Condo

Canyon Road Towers A Downtown Salt Lake Condo

Canyon Road Towers, Downton Salt Lake CIty, Utah, Real Estate

One of downtown Salt lake City’s Condominium’s that is very popular is Canyon Road Towers. Built in 1976 it still has residents that were original to the building. The mix of residents is eclectic with many newly wed living here. I live in Canyon Road Towers and appreciate the residents that live here. they are mostly professional or retired professionals. A few are recent graduates of the University of Utah. I find my neighbors friendly and welcoming.

Currently 3/28/18 there are 3 units for sale in Canyon Road Towers:

  • #710 for $350,000. A very nicely updated unit. One of the smaller versions of floor plans but a corner unit giving it a more spacious feeling. The view is to the North and East.
  • #409 for $399,000. A 3 BR corner unit facing South and East. This needs much updating, not a total redo.
  • #401 for $450,000. The most popular corner 3 bedroom facing West and North. This condo has been updated.

It’s close in location, near Temple Square and City Creek make it walkable in Salt Lake. Most shop at either Harmon’s of City Creek of Smiths in The Avenues.

Just up Canyon Road is the beautiful memory grove which local residents of The Avenues annually have a cleanup event that is well attended. This is a popular walking pedestrian park with ponds you sometimes see dogs cavorting and playing catch the stick with their owners.

Canyon Road Towers is at the West end of The Avenues and residents are encourage to attend and participate in the monthly community association meetings.

The neighborhood is inviting with City Creek Park and Brigham Young historic park abutting the tower. Views are evident from almost every unit, some looking to the beautiful Capitol view, some overlooking Temple Square and some with the city to the South.

The building has good amenities. There are two social rooms that can be reserved. The one below is a fairly recent remodel and is on the right as you enter the building. The pool you see below is long enough for the lap swimmer. There is a hot tub and sauna. There is a onsite tennis court. There is a tennis table room off the second social room. There is also a room with a billiard table. The third photo below is the entry.

 

 

Animals are not allowed and there is a rental cap of 25% maximum rented. The cap is currently near the maxim allowed.

The building is well managed, is managed professionally, with two full time employees maintaining the property. In the morning there is an onsite employee in the office off of the lobby. The building is secure.

At the time of writing this article there are two units listed for sale with one pending sale. The pending sale was only on the market two days.

The unit mix is from one to three bedrooms. The three bedrooms rarely come on the market. One three bedroom is being remodeled in preparation of being sold. The unit sizes range from about 920 square feet to 1300 square feet.

Many of the units have not been remodeled. I know this building well, have lived in it for three years. I see people loving it here as do my wife and I. We see people moving within the building to different units.

Home owners dues cover more than most in that they pay for all of the utilities, basic cable, and the normal maintenance condominiums must incur.

The zip code for this area is 84103. Come and take a look if you are in the under $300,000 price range.

 by Larry K Cragun, REALTOR®

Windermere Real Estate

4770 S 5600 West Valley City, UT84118

801-923-4765 URL of Map

 

Posted on March 28, 2018 at 3:54 pm
Larry Cragun | Category: Canyon Road Towers | Tagged , ,

Sales Prevention Program #81 Rent To The Wrong Person

Rent Wrong Person? (SEO Key) word_

Rent Wrong Person. I wanted Sales Prevention Program #81 Rent To The Wrong Person to post this today as it was a recent event.

Renting to the wrong person can be costly, and cost you a sale. For this reason often the wise thing to do to use a professional rental company to manage your property. I will post one I trust, RESE Property Management,  on the main page of this site.

The story is simple and the consequences costly. The owner in this story rented his nice home in Salt Lake City. He had a garage that was behind the home and really not visible from the street. The deal was that the garage was off limits to the new renter, it was full of valuable tools that he didn’t want messed with.

He decided to sell and was able to put the home under contract. The lender’s appraiser went to the home one early morning to do his research. When he opened the garage there were three sad looking men in sleeping bags. Nothing else was in the garage. All of his valuable tools were gone.

What turned out to be the facts is that the renter had sold off the tools, was renting the garage to each of these men, who were druggies, for $100.00 per week. He was taking in more than he was paying.

I don’t know how much research the owner did in approving this renter. I don’t know if he ran a credit report on the guy, or even a criminal report. I don’t know how often he went back to the property to inspect it. These are the types of things management companies do. The one I prefer,Rese Property Management has an interesting business model. Instead of hiring one full time person to manage numerous properties, they hire semi retired professionals and give them a smaller portfolio of homes to manage. This way he can get the services of high quality people and pay them enough per hour to have them appreciate the income. These managers are limited in what duties they are asked to perform. This way the employee is able to stay closer to the renters and the units. They have the time and the responsibility to regularly do physical on site inspections.

I quote this from their website about their approach: This solid foundation provides us with the platform from which to deliver an ever improving property management solution through a group of people who are converted to our distinctive business philosophy.

The goal of saving money by self management often turns out the way this story did, with a bad tenant, doing bad things, with savory people, with drugs, and as in this case going full out to avoid being evicted. Not a good story. This story muddies the sale of the home, and possibly has caused it to fall apart. F

I wonder how many of my readers are considering owning rental properties. Some people have mentioned they are concerned about having their money in the stock market. I have thought long and hard about how to answer folks, who ask my opinion. It is just an opinion but I do conclude that owning rental properties is a safer investment for those who do worry that the market is over valued and risky. However, this story illustrates a risk in owning.

Sales Prevention Program #81 Rent To The Wrong Person

SEO KEYWORD: Rent Wrong Person

Posted on February 27, 2018 at 5:46 pm
Larry Cragun | Category: Sales Prevention Programs | Tagged ,

2018 HOUSING FORECAST

2018 HOUSING FORECAST

2018 Salt Lake County Residential Real Estate Market Last Year Was the Fourth Best Year in Overall Home Sales and Biggest Year Ever for Multifamily Sales. By James Wood Ivory-Boyer Senior Fellow, Kem C. Garder Policy Institute, University of Utah Commissioned by the Salt Lake Board of Realtors ® Salt Lake County’s residential real estate market benefited from another year of strong demographic and economic growth and very favorable mortgage rates. For the sixth consecutive year the average mortgage rate was below 4 percent. Recap of 2017 A year-end snapshot of Salt Lake County’s real estate market compared to 2016 shows:® Single-Family Sales • 13,293 single-family homes sold, a slight decline of 3 percent. • The median sales price of a single-family home at $325,000, up 10 percent. • The value of single-family sales at $4.9 billion, an increase of 8 percent.
Multifamily Sales: (Condominium, Town Home and Twin Homes) • 4,500 multifamily units sold, up 4 percent. Biggest year ever in multifamily sales. • Median sales price of multifamily unit at $225,000, up 11 percent. • For the first time multifamily sales exceeded $1 billion dollars. Salt Lake City, West Jordan and Sandy are the Top 3 Cities for Highest Home Sales The combined sales in 2017 of single-family and multifamily homes in Salt Lake County totaled 17,804 units, the third highest year ever. Only during the two years preceding the Great Recession (2005-2006) and 2016 were residential sales higher Figure 1. Salt Lake City captured by far the largest share of residential sales activity with nearly a 25 percent share; a total of 4,213 homes, far ahead of other top ranked cities. The next four highest ranked cities in number of home sales were: West Jordan (1,796 homes), Sandy (1,617 homes), West Valley (1,499 homes) and South Jordan (1,437 homes).
2
The Median Income Can Still Afford 65% of the Homes Sold in Salt Lake County The median sales price of a single-family home in Salt Lake County increased by 10 percent in 2017, marking the sixth consecutive year of price increases Figure 2. Since 2011, the median sales price in Salt Lake County has increased by 50 percent, moving up from $216,431 to $325,000. Housing price increases in the county rank among the highest in the U.S.

CLICKING HERE CAN TAKE YOU TO THE FULL FORECAST WITH CHARTS. 

Posted on February 19, 2018 at 6:52 pm
Larry Cragun | Category: Statistics | Tagged ,

Trolley Regent

Trolley Regent fits an interesting niche in the Salt Lake City Condo Market. As of this article there are no condominiums for sale here. Click this link for an update. Its location, 150 S 800 E has advantages. It’s close to the 4th South hub of businesses and the Trax stop. It is close to the U. It has great bus routes access. It is close enough to the University of Utah that a lot of owners purchased to be close to it. Some owners like to rent to students. I sold one unit here where the buyers were from out of State, had a son at the University, and wanted a place to stay when visiting him. Price was important to them and this range fit their budget.

This photo gives you an idea of the structure, 3 floors of units. The stairway goes up two flights and down 1/2 a flight. The lower level can seem dark inside which will drive the price down and conversely the upper floor has high ceilings and feels light and roomy.

Five units sold in the last year: $225,000 to $237,500 for the four 2 bedroom units and $270,00 for the 3 bedroom that sold. So prices are low enough to be meaningful. As mentioned there are none for sale at this time but usually there is one on the market.

The condo fees are very low comparatively to many Salt Lake City Condominiums: $150 for the 3 and $136 per month for the two bedrooms units.

Each unit has a small garage and their is plenty of not covered parking for a second car.

Although the 2 bedroom units seem small by size, 950 square feet +- the floor plans are such that you don not feel cramped. The kitchens are well designed and the living area is off the kitchen. I have never felt like these units were too small.

Trolley Regent was built in 1995.

Posted on February 19, 2018 at 6:26 pm
Larry Cragun | Category: Trolley Regent | Tagged , ,

Garden Towers In Downtown Salt Lake City

Garden Towers In Downtown Salt Lake City

One of the finer Salt Lake City Condominiums is Garden Towers. It is located close to Temple Square, City Creek, Parks, restaurants, TRAX, Memory Grove, and  walking trails. It is also just a few blocks to Salt Palace, Energy Solutions Arena, and The Gateway Mall. The address is 141 E 2nd Avenue 84103. As North Temple crosses State Street it becomes 2nd Ave.

Is there a Garden Towers unit for sale? Not always, click here to find out.

The unit mix consists of 1,2, and 3 bedroom units and Penthouses. Each unit has a private balcony except one penthouse unit which gained permission to close it in. An interesting point on doing this, is that as little as people use their balconies, they are an important factor in a resale.

The top floor, floor nine is divided into four penthouse units. They are at least 2500 square feet. Two of these have sold in the last 18 months or less. One sold for $625,000 the other sold for $450,000 and needed a complete make over.

The smallest that has been for sale is a one bedroom plus a den for $209,000.00 I showed it many times and it just wasn’t what people wanted. It had no view and probably should have been presented better, different wall paint and other staging type efforts.

One great part of Garden Towers is the rooftop garden. It’s a very nice summer feature. I have seen people reading books in the Gazebo and others just out enjoying the view from the park like roof setting.  You can BBQ at each corner of the roof, hold weddings there, or have a private conversation. Speaking views, some have great views, some do not. With most buyers, views are important as they are a possibility in many of the condominiums in downtown Salt Lake City.

Parking is ideal, each unit with at least one stall. It is secure, indoors and the stalls are spacious.

For those who want to purchase with an FHA reverse mortgage or buy with a low 3.5% down the complex is not FHA approved.

Monthly HOA fees range from $205 per month for the smaller units to $530 for the penthouse units. The HOA fees include water, sewer, garbage, and basic cable. It does not include electricity. The building owners manage the HOA themselves.

Like many of the nicer properties the HOA does not allow pets, and where some restrict rentals Garden Towers prohibits rentals.

They are building a website but at this moment it has not content. Its link is here: http://www.thegardentowers.com/

Posted on February 13, 2018 at 7:54 pm
Larry Cragun | Category: Garden Towers | Tagged ,

Loan Qualifying Know How High You Can Go

Loan Qualifying: My first loan officer job was working for a major bank. I was thoroughly trained, on salary thank goodness, and then placed inside a large real estate office. Of course mortgage banks have standards for loan approvals. Generally you are working on income to house payment ratios and income to total debt payment ratios. There are other rules to deal with. When a loan officer tells you what you qualify for it is often a conservative number. Besides being safe on the commitment they have to be concerned what happens if interest rates rise while borrowers are out shopping.

No one wants a failure in a transaction because of a loan failure once in process.

Here is another consideration that I have found helpful. I have written that I consider that searching for a home us comparable to a treasure hunt. So what if the treasure is a little more expensive than originally budgeted or a little above the safe approval level?

When I was a loan officer I would respect both the borrowers budget wishes and the importance of being careful. However I had enough experience to take another step. I would tell my agent and usually the borrower to start looking at the low range of the qualifying. In addition I would figure an amount that I believed I could push them to. Often I would run it by an underwrite first to confirm the upper limits. With good credit, extra cash reserves, a higher down payment, or other factors the borrower can be stretched. My proposal is that they move up in price in $10,000 increments. That jump  often makes a big difference in what you get. Moving up in looking from lowest price to the upper limits often finds the treasure is in the higher range, even higher than originally considered.

After all it is a long term purchase, get the dream home folks.

Posted on February 9, 2018 at 9:51 pm
Larry Cragun | Category: Mortgages | Tagged ,