During my chat last week with Mike Caira of Great Lakes Mortgage Funding I asked what he had been seeing and experiencing in regards to FHA mortgages lately and the processes in underwriting the loans.
One area that he brought up (along with the condition of the property part of the process) was the way in which underwriters are looking at the value of the home that is being purchased in our Macomb County area. Mike stated that the underwriters of FHA mortgages want to see:
3 sold comparable sales less than 90 days old and 2 active comparable listings less than 180 days on the market.
Please keep in mind: An appraiser will look at the full listing history to determine if the comparable home has been on the market for more than 180 days. All agents should be doing the same thing to ensure accuracy and integrity of the data that they are reviewing.
If you are a buyers agent representing your client in an FHA transaction please search for comparable sales with the above guidelines in mind before submitting your offer to purchase to the seller.
Likewise, if you are representing the seller in marketing their home for sale keep those guidelines in mind.
Using what has sold 6 months ago will be outdated as far as a usable comparable sale to an FHA underwriter and appraiser.
If you'd like to read more about FHA mortgages and articles for first time home buyers in Michigan please visit me at Chataboutmacomb.com If you have specific questions about FHA mortgages that you would like Mike Caira to answer he can be reached at (586) 532-0600.
~Kris Wales~ A Macomb County MI real estate agent
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