Posts from July 2021

Often when people begin to look for homes they do not consider mobile homes (also referred to as manufactured homes).  Maybe it's because they don't have enough room, are often in large parks, or maybe mobile homes were the subject of too many Jeff Foxworthy jokes to be taken seriously.  For whatever reason often first time home buyers do not consider them.  While, I will grant you that often, a mobile home is not a forever home for most people, it can be a good option for those buyers that are just starting out.  They are usually very affordable, and can help you build some equity.

There are a few things to bear in mind though if your going to look for a mobile home.

First, the famous Dave Ramsey line, "Cash is King," could not possibly be more fitting in the case of mobile homes.  Many mortgage lenders including a lot of banks do not want to take these on.  The reason for this is because they are not on a fixed foundation, which makes them subject to property...

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Over the last few months, I have had several buyers get very frustrated.  Why?  Well, other than the obvious of loosing out on a home they loved, they do not understand the appraisal process.  When they are willing to offer well above asking price, and I caution that we have to consider an appraisal I have a few times heard something similar to the following:  "If I am willing to go $20,000 over the asking price and I am approved at that amount then why does the bank care what the value of the home is?" 

I understand the frustration, and I understand the logic.  If you are approved for a loan at $250,000, and the home cost $225,000 then you can clearly make the down payment and monthly payments at $250,000.  The banks getting more money, so why do they care?

The bank cares because they are always looking ahead and assuming the worst.  If an appraiser says the home is worth $225,000, and a buyer has taken out a mortgage more than the home is worth it becomes...

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