Q: What do you need when applying for a home loan?

To apply for a home loan , you'll likely need: Paycheck stubs W-2s Copy of the purchase and sale agreement Proof of other income Outstanding loans Rental or landlord information Employer's name and address Past bank and brokerage statements Your past home address

Q: Which remodeling projects have the least cost recouped at resale?

Project Job Cost Resale Value Cost Recouped Bathroom Addition $63,986 $33,160 51.8% Major Kitchen Remodel $80,809 $45,370 56.1% Deck Addition - Wood $19,248 $12,464 64.8% Bathroom Remodel $27,164 $15,990 58.9% Prime Suite Addition $175,473 $93,762 53.4% https://www.remodeling.hw.net/cost-vs-value/2022/

Question 1

When it's time to get a loan, what counts?

Accepted Answer

Here are the factors that count the most when getting a home loan.

Income: Generally, lenders look for two years of stable income based off of your gross monthly income (pay before taxes).

Debts: Installment debt (car payments, credit card payments, personal lines of credit, etc.) are added together with your proposed mortgage payment to determine your ability to qualify for the loan.

Employment History: "Stability" is the key word here. In this case, they want to make sure you're able to make your loan payment every month for years to come.

Credit History: Numerous late payments on debt, or a credit report that indicates a lack of ability to use credit wisely are red flags for a lender.

Property: In this case, the lender wants to make sure that the value of the property would more than cover the loan amount if it had to be sold following foreclosure. Note that the appraised value and the purchase price may not always match.

Question 2

What do you need when applying for a home loan?

Accepted Answer

To apply for a home loan, you'll likely need:

Paycheck stubs
W-2s
Copy of the purchase and sale agreement
Proof of other income
Outstanding loans
Rental or landlord information
Employer's name and address
Past bank and brokerage statements
Your past home address

Question 3

How much should you put down on a house?

Accepted Answer

Putting 20% down is often ideal for more financially established buyers or those with a larger cash or savings reserve.

Benefits of a larger down payment include:

A smaller monthly mortgage payment
More equity in case you need to move and sell
No private mortgage insurance
Less risk when selling

For those who would like to put less than 20%, many lenders offer loans that require a smaller down payment. Here are some benefits to putting less than 20% down:

More cash on reserve for emergencies
Likely to become a homeowner faster, since you won't have to save as much cash
Greater financial cushion for your lifestyle

Question 4

When should you refinance?

Accepted Answer

Conventional wisdom says that you should consider refinancing if you can drop your interest rate by about 20%. But be sure to look at what you owe before you refinance and compare it to your loan balance after refinancing. If you're adding thousands to your mortgage balance, it might end up costing you money to refinance.

Question 5

When will I begin to save money from a refinance?

Accepted Answer

To calculate when your refinance will actually begin to save you money, take the total cost of your refinance and divide it by your monthly savings after you refinance. This will tell you how many months it will take to pay off the refinance. You will need to live in the property longer than the number of months it takes to payoff to actually realize any savings.

Question 6

Can I invest my refinancing savings?

Accepted Answer

Mortgage refinancing can save you tens of thousands of dollars. If you're not strapped for cash, be sure to have a plan in place for the money you save from refinancing.

Will you invest in your child's education?
Reinvest in your home and remodel or make other updates that will increase the value of your home so you can sell for a higher price in years to come.
Are you going to add your monthly savings into a 401(K) or another retirement savings account?

Be sure to run some financial calculations to see just how much you can save, and have a plan in place for your savings to get the most out of your mortgage refinance.

Question 7

What is a construction to permanent loan?

Accepted Answer

WaFd Bank's construction to permanent loan is a home loan based on the estimated value of your home after construction. To determine that value upfront, we order an appraisal based on your plans. Once your home is built, your construction loan automatically becomes a mortgage, so you don't have to worry about refinancing or going through more than one approval process. Please note that rates can change daily. Subject to a lock-in deposit.

Question 8

Which remodeling projects have the most cost recouped at resale?

Accepted Answer

Project	Job Cost	Resale Value	Cost Recouped
Garage Door Replacement	$4,041	$3,769	93.3%
Manufactured Stone Veneer	$11,066	$10,109	91.4%
Minor Kitchen Remodel	$28,279	$20,125	71.2%
Single Door Replacement: Fiber-Cement	$22,093	$15,090	68.3%

https://www.remodeling.hw.net/cost-vs-value/2022/

Question 9

Which remodeling projects have the least cost recouped at resale?

Accepted Answer

Project	Job Cost	Resale Value	Cost Recouped
Garage Door Replacement	$4,041	$3,769	93.3%
Manufactured Stone Veneer	$11,066	$10,109	91.4%
Minor Kitchen Remodel	$28,279	$20,125	71.2%
Single Door Replacement: Fiber-Cement	$22,093	$15,090	68.3%

https://www.remodeling.hw.net/cost-vs-value/2022/

Question 10

Is building a house more expensive than buying one?

Accepted Answer

This is a tricky question, but in general, yes, it is cheaper to buy a house than purchase land and build one from scratch.

Caveat: costs can vary greatly depending on factors like a buyer's flexibility with location, renovations they'd like to make on a pre-built house, and how long the buyer's planning on staying in either home.

Question 11

Does building a house give a lesser return on investment than buying a house?

Accepted Answer

Not always. There are many aspects to consider when building a home, such as how "standard" or "unique" the features and layout are, how long you're planning to live in the house, and whether or not there are "green" rebates available in your area.

In general, expensive features or structures that make your home and property more "niche" can limit the number of prospective buyers when it comes time to resell, which can result in needing to lower your future asking price.

If you plan to live in the home for many years, property value appreciation can offset the uniqueness. If you "build green", the cost of owning an energy efficient home is often much lower. Plus, some states offer rebates or tax incentives for environmentally friendly features, like solar panels.

Question 12

Will I always save money if I do most of the work myself?

Accepted Answer

No. This line of thinking can be dangerous to your body, mind AND wallet. If you have time to allot to the many aspects of building a home, and you're familiar with construction work, then by all means, pick up a hammer. But remember, time is money. Unfortunately, the more a job costs a professional to do, the more of your time it's likely to take. Before you start tackling any aspect of building a home, put in the research.

If you're unsure as to whether you can tackle a project, opt for the professional route. In general, you'll spend more money hiring someone to fix damage done by DIY-ing than you would have spent if you had paid someone from the start. Another bonus of hiring an experienced contractor is that they often provide warranties on the products and work they complete, either personally or through subcontractors, covering you in the event that repairs or reinstallation is needed.

Question 13

What should you look for when shopping for a lot?

Accepted Answer

Start in your price range. Exact figures will vary, but in general, most experts agree that the cost of buying the land and preparing it should not take up more than 25% of your total construction budget.

Research zoning requirements. There are a variety of types of zoning classifications, but you'll want to be sure your land is classified as residential before you make any commitments.

What is the annual tax rate on the property? The tax rate can dramatically impact how much you'll pay over time on the lot. Your state's department of revenue will be able to inform you of applicable taxes and their rates.

Where will you get your water? If you're building a home "in town," then you will likely have access to a municipal, or city, water supply. If the lot is in a rural location, then you'll need to do a little more research.

Review applicable ordinances and covenants. Check to see if the lot is subject to homeowners association (HOA) dues and if the residents are required to follow "covenants".

Learn more

Question 14

How do I choose land for my new home?

Accepted Answer

Aside from the obvious (cost), consider the following questions in the hunt for homeland:

Are modern conveniences readily available?
How is the area? School districts, crime rate, amenities?
What is the type and quality of the soil? Sand, loam, clay, silt, chalk?
Are there any unusual zoning requirements?
What is the elevation?

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Question 15

How long do you have to finalize details once you’re approved for a lot loan?

Accepted Answer

Our lot loan gives you plenty of time to finalize your house plans and choose a builder. Then, when you're ready to build, roll the balance of your loan into our Construction-to-Permanent Loan.

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