Have you experienced a long wait to close on your home loan recently?

The real estate industry has experienced many changes in the past year. As seen on television, the real estate market has been dealt with an influx of foreclosures, not as many homes selling as in recent years, and various changes that have been made for loan programs offered by most lenders.

The changes to various loan programs is having an impact in our region. Certain little to no down payment loans have been eliminated, minimum credit scores for certain loans have been raised, and some lenders are being more critical of the home loans that are being made.

As most of us are aware, some banks have experienced major losses and some have sought help from the federal governement to help offset those losses. The federal government came to the rescue and helped many banks in need. The goal was to help free up credit to help get the economy moving again.

The result of these actions have not exactly been what was intended. Loans are still being made, but did this bailout free up credit to help the real estate industry among other industries get out of the downward movement? It may have helped some, but where is all of the bailout money gone that went to these banks? Are banks passing it on to consumers and businesses in the form of loans and credit to help spur the economy?

An issue that I have noticed that has recently developed is the time it takes to get a home loan. Various lenders in the area have experienced an increased amount of loan applications for refinances of home loans and for purchases due to the very appealing interest rates. As a result many lenders have been dealing with the need of more time to get these loans closed. Lenders have been challenged with stricter underwriting guidelines of home loans that have also slowed down the process. Some lenders continue to close home loans at about the same rate of time as in the past, but others struggle to meet deadlines for real estate contracts and leave the consumers involved wondering what is to happen next.

Have you experienced a long wait for the refinance of your home or the sale or purchase of a home? I would like to hear from you on what your experiences has been. Please do not name companies or people involved. It would be interesting to hear from what you experienced during the home loan process.

If you have any real estate related question or an idea for a story for the real estate blog, email me at todd@toddnelson.com.

Why Have A Home Inspection When Buying A Home?

There are various steps in the purchasing process, but one very important step to address is a home inspection. Although not usually a requirement, I recommend that everyone get a home inspection before purchasing a home. As a Realtor, I do not know everything about the home that I am selling. I use the knowledge obtained from the seller and what visually can be seen during a visit to the home in marketing the property. Sometimes the seller does not know of issues that may need addressed on their home.

A home inspector is usually more thorough than an appraisal on the property which is more focused on the features, overall condition, and value of the home. The home inspector also is usually hired by the buyer to inspect the home. Some of the items inspected, but not limited to just these items are the structure, the heating/cooling system, electrical, plumbing, attic, crawlspace or basement, roof, and other parts of the home. The inspector will usually give the buyer a written report detailing their findings. Some inspectors identify the items as a major concern, a safety issue, or to monitor the issue. You can visit the West Virginia Association of Home Inspectors at http://www.wvahi.org/ for more information about local members and home inspections. In West Virginia, home inspectors are required to be licensed and more information on home inspector licensing can also be obtained from the above website.

A home inspection gives a buyer more knowledge about the home that the buyer plans on purchasing. This inspection should also help with informing the purchaser of possible future repair costs. Costs of home inspections vary from around $250 to $500 and possibly more depending on the size and age of the home. Ask the home inspector their costs, education background, and you can also ask other questions listed on the above website. A home inspection provides a buyer with more information on the property that the purchaser may not have known from visually viewing the home on their own. Feel free to contact me with any other questions that you might have on the subject.