10/19/21 | Ellie Botshon
Liz and Ellie have helped buyers in the Greater Boston area for decades. They’ve seen it all, from housing bubbles to busts, from no inventory to overflowing inventory. But one thing that doesn’t change is educating you on how the whole process works.
Impacts whether or not you qualify for a mortgage;
Determines if you must purchase private mortgage insurance (a LTV ratio above 80% requires PMI);
May lead to a loan not being approved if the LTV ratio is above 97.5%;
Affects the interest rate on your loan.
Be able to back out of the deal;
Increase their down payment and rewrite the Purchase & Sale (P & S);
Pay a higher loan rate;
Pay for personal mortgage insurance (PMI);
Petition the lender to take another look based on properties they may not have included in the appraisal.
The loan to value ratio is an important consideration when putting together an offer for a home.
Find the LTV ratio by dividing the amount of the loan by the lower of either the appraised value or the offer price. The answer is a percentage. 80% or below is ideal. If it’s higher than that, you may need to purchase Personal Mortgage Insurance or pay a higher rate. If the LTV is upward of 97%, your loan might be denied.
The appraisal number only comes in after the offer has been accepted. This means you must think through and plan for all possible appraisal outcomes when making an offer—Ellie and Liz can help with that!
Use your attorney to protect yourself in the Purchase & Sale agreement. Talk with them about which contingencies fit your needs.
An informed buyer is more likely to be successful. Ask your agent and your lender lots of questions.
You may have heard or read about a recent settlement between the National Association of Realtors (NAR) and the Department of Justice that resulted in several significant changes to how real estate commissions are handled. We’d like to address how we are responding to the settlement, and how changes may affect you.
You may have heard or read about a recent settlement between the National Association of Realtors (NAR) and the Department of Justice that resulted in several significant changes to how real estate commissions are handled. We’d like to address how we are responding to the settlement, and how changes may affect you.
As urban areas continue to expand and temperatures rise due to climate change, the need for effective shade in cities has become too much to ignore. Cambridge, Somerville and suburban towns have begun the strategic use of trees and canopies. I think these options offer a powerful solution to provide relief from excessive heat and sunlight.
With their complementary communication styles, responsiveness, competence, and ability to truly listen, Ellie and Liz enable their clients to feel at ease throughout any real estate transaction. They would welcome the opportunity to be your next real estate advisors.
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