Answers to Frequently Asked Real Estate Questions
What is PMI and MIP?
PMI is private mortgage insurance. Loans with a higher than 80% LTV will require the buyer to carry insurance to guarantee their loan. In the event that you pay off 20% of your loan or have 20% equity due to appreciation, PMI should be retired.
MIP is a mortgage insurance premium paid by an FHA borrower. The FHA normally requires a refinance in order to retire MIP. This is one advantage of a conventional loan over a government loan.
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Why should I be pre-approved?
Pre-approval has many benefits. The buyer is assured of his/her purchasing power and only shops within that range. The agents involved and the seller are all assured of the buyer's serious intent. This assurance of ability and intent makes the preapproved buyer more desirable than someone who has not put forth the effort. Not being preapproved can cost the buyer thousands in negotiating. (See pre-qualified vs pre-approved.)
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What is an appraisal?
An appraisal is a written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby. Ordering the appraisal is one of the good faith efforts required in the contract of the buyer. Delayed payment for or ordering of the appraisal is one of the most common delays in closing and may place the buyer in default.
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Are you pre-approved and ready to shop for homes? Call or email me to begin your search
Jackie Martin, Realtor
email: Jackie[at]WeSellStLouis.com
We Sell St. Louis
3424 Missouri Ave.
St. Louis, MO 63118
office: 314-772-HOME (4663)
toll-free: 1-866-971-HOME (4663)
cell: 314-495-4428
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