Q & A with Dottie Herman

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Q1 - Is a final walk through important? We are having some trouble scheduling a date/time and I was wondering if it was absolutely necessary?

A - The final walk-thru is VERY important and should be scheduled either the day before or on the day of the Closing, prior to the Closing. This is your final opportunity to make sure that the property will be delivered in accordance with the Terms and Conditions of the Contract of Sale. Should you find anything out of order or missing, contact your attorney immediately so that these items can be rectified prior to or at the Closing.

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Q2 - My home is listed for sale. Currently we have 3 offers; is there anything we should look at besides price when picking the best buyer?

A - Be sure that, if your prospects are financing, that they been approved for a mortgage and they have produced documentation from the lender.  In addition, you want to be sure that the contract selling price will appraise so that the mortgage will be approved. Alternatively, if your prospects are all-cash buyers, you will want them to provide documentation that they do have the money to close. With the buyer's permission, you can conduct a credit check as well.

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Q3 - I purchased a home 2 years ago. We need to do some work in the home due to a mold issue and we do not have the cash to pay for this renovation. What are our options?

A - Unfortunately, you wouldn't be approved for a mortgage refinance if the appraiser detects a mold problem.  If you could possibly borrow the money short term from a relative or friend to at least get the mold removed by a licensed, EPA-approved mold removal company, obtain a certificate from them stating that the home is mold-free, then you could proceed to apply for a "cash-out" refinance to cover the costs of the mold removal and the renovations (assuming that you have enough equity in your home, and that you qualify for the amount of the mortgage requested).  I suggest that you meet with a mortgage professional to get "pre-qualified" for the mortgage refinance before you borrow any money for the mold removal.   You could also see if you can find a contractor who is willing to work with you on setting up a payment plan for the cost of the necessary work. 

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Q4 - My wife and I have been retired for about 10 years. We want to purchase a second home on the beach, however, we currently have no new income. We have money in the bank and our 401K; however, we do not know how we would be approved for a mortgage if we have no money coming in. Is that possible?

A - If the monthly interest and dividend income from your liquid and retirement assets are enough to qualify you for the mortgage amount needed, then the underwriter can use this income to approve the loan.  They would most likely need to review your last 2 years tax returns to see if the interest and dividend income has been consistent over time.

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If you have a real estate question for Dottie, please send it to; Reporters@WorldPropertyChannel.com

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