Say “I do” to FHA Bridal Registry

Are you planning to get married and buy a home in Michigan, but wonder where your down payment funds will come from?

FHA has a Bridal Registry program where the money you receive as a wedding present can be used towards your down payment. Just like registering at a specialty or department store, the FHA Bridal Registry program allows you to register with a lender. Then your friends and family are able to make gift payments into an interest bearing account on your behalf.

It’s a win win! Not only can your gifts earn interest, but they can be used as a down payment towards an FHA Loan.

 

Bridal Registry Guidelines

Bridal Registry Accounts were originally introduced in 1996, but still remain a little known fact when it comes to down payment assistance. The misunderstanding of how this program works might be the fact that it was originally only allowed by banks. Soon after, FHA modified the program and offered new flexible options and the opportunity for the newlywed to set up the account at any bank. Plus, newlyweds are now able to make deposits on their own from the gifts they receive.

Here’s how it works in 3 simple steps:

• You will open a savings account at your bank prior to the wedding
• Friends and family will be given the banking information where the gifts will be deposited
• All of the gift funds can go towards the FHA required 3.5% down payment
• Anyone with an interest in the purchase cannot be party to the gift funds (i.e. realtor)
• There is no requirement that you be married prior to closing on your new home

Another huge advantage is that there are no gift letters or other documentation required other than proof of your savings account named “bridal registry account.” It’s that simple!

No gift letters. No paper trails. Just a simple savings account labeled “bridal registry account” and you are on your way to having the wedding present of your dreams.

www.stevekaterberg.com

Thinking about buying a house?

Are you in the market for a home?  How do you determine which house to buy?  I’ve been selling real estate for over twenty years and can honestly say that everyone has a different idea of the perfect home.  It is simple to just think  3 bedrooms, 2 baths, 2 car garage, for $$.  But if it were that easy, you could fill out a checklist and order up your perfect house.  Kind of like ordering a new car from the factory.   But there are other factors.

If you’d like to have a better fit and save yourself some time and frustration, do a personal lifestyle assessment.  And discuss it with your Realtor.  Do you like to entertain?  Like open spaces?  Or do you have small dinner parties which you like to host in a formal dining room?  Do you like your bedrooms in a different area of the home?  Is the school district important to you?  How close do you want to be to where you work or socialize?  Do you like lawn work and home maintenance.  It might help you decide whether to buy a home on acreage or what age home is right for you.

Think about your all time favorite house.  It might have been your childhood home or belonged to a relative or friend.  Talk about what you liked and disliked about it.  It might subconciously be your ideal house?  Talking about it might give guidance. 

Happy home hunting.

Grand Rapids Festival of The Arts

Festival of the Arts begins this Friday, June 3, in downtown Grand Rapids, Michigan.  The free three day annual event began in 1970.  It was inspired by the installation of the Alexander Calder sculpture in front of the City Hall in 1969.  The festival is now one of the largest all volunteer events in the United States.  There are six stages, both outdoor and indoor, showcasing many different forms of art including music, theatre, dance, and poetry.  There will be a regional art exhibition inside the Grand Rapids Art Museum showcasing some of the best in West Michigan.  Check out the schedule and kick off your summer in style .  And come hungry as there are 33 non-profit groups selling a wide variety of food at their booths.

http://www.festivalgr.org/guide/

http://www.mlive.com/entertainment/grand-rapids/index.ssf/2011/05/festival_of_the_arts_2011_open.html

www.stevekaterberg.com

Common sense on Facebook

We wouldn’t walk up to total strangers and tell them our name, address, phone number, and birthdate.  We certainly wouldn’t show them photos of our kids or grandkids that might identify places which they frequent.  But we might be doing it without knowing it.  Facebook might be telling more about you than you would imagine.  And the information might be used by criminal elements for identity theft or worse. 

I use Facebook often as a way of sharing my life as well as keeping in contact with friends, family, and business connections.  It also keeps me learning about my community.  But we need to be careful with what we are sharing.  You might think that you changed your security settings a while ago so you are fine.  But as Facebook changed the format, it also opened some previously hidden items.  No big deal to fix but do it if more is showing than you want.

Grand Rapids WOOD TV8 did a good story on it.  Do yourself a favor and take 7 minutes to watch the video.

http://www.woodtv.com/dpp/news/target_8/Facebook-friends-with-spam-and-scams?sms_ss=facebook&at_xt=4dcaa99b2c0143b2%2C0

www.stevekaterberg.com

First Time Home Buyer information

First Time Homebuyer

Buying a home, especially the first time, can be confusing and sometimes, overwhelming.  I worked on this video with Rusty Darter, of Macatawa Bank, to make the process easier.  You will learn some  of the terms used, criteria which lenders use to make loans, and be better educated to ask the right questions to find your lender. 

The YouTube video is about 9 1/2 minutes long and won’t have appeal to most people.  But I hope that you find it beneficial if you are planning to buy your first home.  And feel free to send the link to anyone you know considering a purchase.

http://www.youtube.com/watch?v=N5-fYEL3-Nk

www.stevekaterberg.com

Michigan Court of Appeals MERS foreclosure ruling

MERS stands for Mortgage Electronic Registration Systems.  The Court ruled that MERS is not an entity that can foreclose properties.  They did not hold the mortgage, have an interest in the mortgage, or service the loan.  Thousands of properties in Michigan are involved.  So if you are involved in a foreclosure that has MERS involvement, you have the right to challenge the foreclosure, have it declared void, and if facing eviction, have it dismissed.  Don’t waste time and talk to legal resources.  Be sure to watch the news media for more information.  And for clarification, having the foreclosure voided does not relieve you of your indebtedness.  It would start the process over with the appropriate party.  This information is Michigan specific.  MERS foreclosures are being challenged across the United States and Canada with varying results.  California for example, has ruled MERS foreclosures are legal.

Steve Katerberg

www.stevekaterberg.com

http://www.wxyz.com/dpp/news/region/detroit/michigan-court-of-appeals-ruling-could-halt-some-foreclosures

Home inspection thoughts

Make sure that you have an inspection contingency in any purchase agreement before signing.  And then get a great inspection.   A basic home inspection package includes plumbing, heating, electrical, and structural.  You likely will also want termite and possibly radon testing.  But I want to talk to talk briefly about the basic inspections. 

The purpose of the inspections is to let you know the condition of the propertyon which you have an accepted contract to purchase.  You should know the condition of the property at the conclusion of the inspections except for items which are not visible.  An inspector will not be tearing down walls to look inside.  When you know the condition of the property you can accept the property as is, negotiate with seller on some repair issues, or walk away from the purchase.  If the foundation wall is collapsing, you will probably want to walk.  It is similar to taking a used car to your mechanic and having it checked over before you buy it.   

Amazingly, the State of Michigan has no educational or licensing requirements to be a residential home inspector.  So it is crucial that you know who you are hiring. 

If you are using a Realtor, ask for inspector recommendations and why they recommend that inspector.  Check out the inspector, how long have they been in business, what are their credentials, how were they trained, and are they a member of ASHI (American Society of Home Inspectors)?  How many inspections have they done?  Do they walk a roof to check it or use binoculars?  Do they visually inspect the furnace heat exchanger or use the smoke test?     

I have been selling real estate over 20 years and have dealt with many inspection companies.  Buyers always have the right to choose their inspector as they are paying for the service.  The inspector does the inspection to give an impartial view of all important facets of the house.  The inspector gets paid regardless on whether it is solid property or one with a host of problems.

That said, I’ve been approached by a number of inspectors who asked me to refer business to them because they won’t “cost me the deal”.  When I ask them what they mean, they tell me that the language they use won’t scare a buyer away from the house.  That is not what an inspector is for and they are on my DON’T USE list.  The same goes for inspectors who offer me gift certificates for restaurants, movies, golf, etc. for referring business.  My job is to make sure that my client, the buyer has the best possible, unbiased inspection on which to make wise decisions.  Contact me with any questions you might have about the home inspection process.  www.stevekaterberg.com

Words of love from my daughter

Our daughter made grandparents of us yesterday.  Kristina and James are going to be incredible parents.  The love they share for each other and their new baby is beautiful. 

Kristina wrote and posted this on her Facebook wall Sunday evening, about eight hours before delivery.  It really touched me and I wanted to share it with you.

Cannot believe that what was once such a faraway ‘tomorrow’ is now only a few hours away. Our lives are about to change so much…what a curious, amazing thing–to suddenly have this new person in the world who has, until now, been fairly abstract. What will tomorrow bring? Liam, this one’s for you–your parents cannot wait to meet you, and I love you like mad already.

 

What type of real estate agency do you want????

When you are ready to enter into an agreement to sell your house or purchase a house, in many states, you will sign a real estate agency disclosure.  It tells the diference between seller agents, buyer agents, dual agents, and transaction coordinators.  In a nutshell, a seller agent acts solely on behalf of the seller.  This agent will disclose to the seller any information they know about the potential buyer which could be beneficial to the seller.  Likewise, a buyer agent acts solely on behalf of the buyer.  The agent will disclose information to the buyer about the seller which could be beneficial in negotiations.  A dual agent represents both buyer and seller in a transaction.  They can’t divulge any information which could give the other party an advantage. 

If you deal with a Realtor, they are additionally bound under the National Association of Realtors  Code of Ethics, to deal honestly and fairly with all parties, regardless of which party they represent.  A seller agent can assist you in the purchase of a property but will still represent the seller.  This, in my opinion, is what should happen whenever a listing agent is selling their own listing.  The listing agent will be motivated to “double dip” the property and yet, work in best interest of the seller.  For example, the salesperson selling  you a dining room set at the furniture store is not your agent.  They represent the store but want you to assist you in buying the furniture so the sale can be made and they will receive their commission. 

A dual agent needs to walk a very, very narrow tightrope.   They are unable to do anything which would give either party an advantage.  So how do they handle questions about which inspector to use, what repairs to ask for, offer strategies, possible counter offers, etc.??   And how can a listing agent justify to the seller that despite their longer term relationship, that they want to change it so they don’t lose out on a potential “double dip”?   And probably with a party who they met reacently.  I see no reason.  In fact, I consider it a betrayal of trust.  When I am hired, either as a buyer or seller agent, the client is entitled to the full services I provide. 

I have sold some of my own listings.  I have the buyers sign the disclosure acknowledging that I represent the seller.  I also inform them that any information which they give me will be given to the seller.  So, if they are offering less than they are willing to pay, don’t tell me what their best offer would be.  Unless they want me to tell the seller that.  What it comes down to is honesty and fairness.  There needs to be transparency in the transaction, with full understanding by all parties.

A few closing thoughts…  A disclosure is not a contract.  It is to let parties know what type of relationship they have with a salesperson.  A buyer services contract sets up buyer agency and a listing contract, normally, establishes seller agency.  If you want to purchase a property through the listing agent, I would recommend keeping their agency relationship intact with the seller.  Don’t give away information which could be used against you.  If you want representation, hire a buyer agent.   And sellers need to realize what it means if their agent wants to become a dual agent.    No one can serve two masters.

Ed Buchanan is semi-retiring

“Uncle Buck” has been a fixture in Grand Rapids radio for almost 40 years. Most of timewas at WLAV but he also spent 15 years at WCUZ, starting Grand Rapids first country music station. A very talented man, he also has taught at Grand Valley State University, and performed with Firesign Theater. Ed has one of the most recognizable voices in the area.

So congratulations on the change Ed. So glad that you will continue to do a weekend show as well as some fill in. It is too early to have the golden pipes silenced.

Photo courtesy of the Kevin Matthews Show.

Ed Buchanan