Home Loans, Home Insurance, and Appraisal Red Flags

Tips for Buyers
Written By Kristin Koonce Burroughs, REALTOR®

Did you know there is certain criteria a home must meet in order to qualify for an FHA or VA loan? There also various items that will make it hard for a buyer to get coverage on a home! In order to do my job as a real estate agent well, it’s important for me to know as much as I can about the different loan types AND home insurance! Specifically, what may disqualify a house. Why? Because this will help me better serve my clients as we begin the home buying process!

Home Loans

More homes qualify for conventional loans than FHA and VA loans because they are more lenient. When your real estate agent asks what type of loan you will be getting, it’s not because they’re being nosey. We need to know this information because we have to include it in our search criteria when looking for homes in the MLS. Many homes do not meet the criteria for FHA and VA loans and will only qualify for a conventional loan or a cash deal. Here are some major and minor issues to be on the lookout for when it comes to buying a home with a conventional loan:

  • active leaks (piping, roof)

  • mold, dampness in basement

  • cracked foundation

  • healthy & safety issues (i.e. exposed wires, unsafe structures like damaged decks and staircases, etc.)

  • worn flooring

  • damaged drywall

  • chipped/peeling paint

  • minor rotted wood

FHA (Federal Housing Administration) and VA (Department of Veteran Affairs) loans are a little more complicated. It’s EXTREMELY important you get pre-qualified PRIOR to looking at houses because you’ll need to know which type of loan you qualify for and which homes meet those loan-specific qualifications. Below is a list of major and minor items to look for when it comes to VA and FHA loans:

  • chipped/peeling paint on exterior or interior

  • broken gutters/downspouts

  • deteriorating sheds and storage buildings

  • utilities/appliances not on or functioning

  • structural issues (i.e. foundation cracks, failing retention walls, etc.)

  • proper ventilation in the attic

  • uneven pavements and sidewalks

  • wood rot

  • empty swimming pools

  • mold/dampness anywhere in the home

  • missing handrails (required for 3+ steps)

  • pest infestation

  • lockable doors

  • signs of leaking/plumbing issues

  • exposed wiring

Home Insurance

When it comes to the underwriting process and getting home insurance (which is something you must have when purchasing a home), there are a few different items that could hinder a buyer from securing the insurance they need on their house? Here are a few things to take into consideration:

  • unfenced pools

  • vicious dog breeds or dogs with a bite history

  • roof with missing or lifting shingles or severe granule loss

  • peeling paint

  • holes in soffit, fascia, or siding

  • broken windows

  • homes or clients with more than 1-2 claims in the last 5 years

  • debris in the yard

  • overhanging tree limbs

Any of the above items could cause delays in the closing process, so it’s important to be aware of these issues early on so they can be tackled in a timely manner. Obviously I am biased, but this is yet another reason why it’s important to work with a real estate agent when purchasing a home!

Kristin Koonce Burroughs, REALTOR®
(903)241-2608
kristinkoonce@gmail.com
BOLD Real Estate Group

Kristin Koonce Burroughs, REALTOR®

My name is Kristin Koonce Burroughs and I’m a REALTOR® in East Texas for BOLD Real Estate Group.

For starters, I’m not your average real estate agent! I jumped into this business boldly four (4) years ago because I want to make a difference. I want to do what other realtors aren’t doing.

My entire business is built around loving people well. That’s my business philosophy and that’s what I’m all about! I want others to be so delighted with my services, they can’t help but tell their friends about their experience with me. I want my clients to say, “Working with Kristin is better than trying to do this alone.”

In regards to my work ethic, I’m a morning person and I get the majority of my work done before most people’s alarms go off. I’m creative, proactive, a go-getter, self-disciplined, and self-motivated with an appetite to grow and be better than I was yesterday. I’m a problem solver who is strategic and thinks outside of the box. I have a lot of energy, talk fast, work quickly, and don’t drag my feet. I care a great deal about offering integrity, kindness, grace, and punctuality to the clients, agents, lenders, inspectors, appraisers, and title companies I interact with. I treat every client as if they were my only client because that matters to me. Folks can tell when a realtor is too busy or inattentive.

I’m not in it for the money, but I will absolutely earn my paycheck. Realtors are the most expensive part of a real estate transaction. If someone is going to trust me with the biggest financial decision they will ever make, then you can bet your bottom dollar I’m going to make sure they get their money’s worth. I’m going the extra mile. It’s who I am. I put my all into everything I do.

So, if you’re looking for a real estate agent in East Texas who can help you list property or buy property, let’s chat. You won’t regret it.

https://www.kristinkoonce.com
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