Thinking of hiring a contractor?  Here are five essential questions to ask before hiring a Contractor.

1.)        Would you please itemize your bid? – Many contractors prefer to give you a single, bottom line price for a project.  This puts you in the dark as to what the charges are for each aspect of the job.  So by getting an itemized bid, it will show you the various costs for the elements of the job-demolition, framing, plumbing, electrical, tile, fixtures and so forth.

2.)        Is your bid an estimate or a fixed price? – Homeowners generally assume that the bid they’re receiving is a fixed price.  Some contractors treat their proposals as estimates, meaning the bill could be higher in the end. If the contractor calls it an estimate, request a fixed price bid instead.  If the contractor says he can’t offer a fixed price because there are to many unknowns about the job, then eliminate the unknowns.

3.)        How long have you been in business in this town? – A contractor who’s been plying his trade locally for 5 to 10 years has an established network of subcontractors and suppliers in the area and a local reputation to uphold.  That makes him a safer bet than a contractor who’s either new to the business or new to the area or who plans to commute to your job from a long distance away.  You should also ask for a couple of his earliest clients so you can see how well the work held up over the years.

4.)        Who are your main suppliers? – A supplier is a great reference.  They can tell you a lot about a contractor.  For example do they keep their accounts paid on time, because a lot of suppliers extend credit to contractors.

5.)        I’d like to meet the job foreman.  Can you take me to a job he is running? – Many contractors do not swing a hammer.  They spend their days bidding new jobs and managing their various jobs and workers.  That makes the foreman, who is on the job every day, actually the most important member of the team.  Meeting the foreman on a job that he’s running should give you a good feel for whether he’s someone you want running your project. 

More great tips from Consumer Mortgage.  So give us a call on your cash out refinance for your home improvement project.  Call us at 757-552-7000 or 800-882-0066.

ring a contractor?  Here are five essential questions to ask before hiring a Contractor.

Do I need an Elevation Certificate when shopping for Flood Insurance? A Flood Certificate is in relationship to the Base Flood Elevation, a document generated by an engineer, or surveyor, or qualified person that will provide data to help properly rate properties for flood insurance.  This Certificate will help determine the proper flood insurance premium rate for your home.  So buying a home on the water or near by, always get a Flood Certificate to get the best rate for your flood insurance. Call us at Consumer Mortgage for advice on your next purchase to see what flood zone you may be purchasing your home in. We can help you find out the cost for insurance and provide you with a mortgage program that works for you. Call 757-552-7000 or 1-800-882-0066.

In today’s market, is buying or renting the smarter option?  The answer in our opinion, buy!  Yes, financially, buying is the way to go. It is a buyers market. In the past, the majority of the time under normal circumstances, if you own for at least one year, you can sell and make a profit or at the very least break even. However, in today’s market it is very hard to sell a house. So, when contemplating if you should buy or rent, ask your self these questions; how long do you plan on staying in the area? How good is your employment situation?  Yes banks are being extremely careful loaning money and will make you jump thru hoops but it is worth it if you can land a loan. Here at Consumer Mortgage we have many programs, so give us a call at 757-552-7000 or 800-882-0066. We will use are 30 years in the business to get you the mortgage to purchase your next home.

Did you know you may need mortgage insurance when purchasing a home?  Mortgage insurance (aka Mortgage Guarantee) is an insurance policy that covers lenders or investors for losses that occur when a borrower defaults on a mortgage.  Depending on the insurer, mortgage insurance can be public or private.  In most cases, lenders require mortgage insurance for mortgage loans which exceed 80% LTV (loan to value ratio) of the property’s sale price.  Due to the limited equity in the home, the lender requires that the borrower pay for mortgage insurance that protects the lender against their default.

            For example, you decide to purchase a home which costs $200,000.  You pay a 10% down payment ($20,000) and take out an $180,000 ($200,000-$20,000) mortgage on the remaining 90%.  The lender then requires the mortgage insurer to provide insurance coverage at, for example, 47% of the $180,000 ($84,600), leaving the lender with an exposure of $95,400.  The premium that the mortgage insurer will charge for this coverage will be paid by either you the borrower, or can be paid by the lender.  If you happen to default on your mortgage and the property is sold at a loss to the lender, the insurer will cover the first $84,600 of losses.  Percentage of coverage offered by mortgage insurers can vary from 37% to 78%.

            In order to obtain public mortgage insurance from the FHA (Federal Housing Administration), you must pay an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount at closing.  The UFMIP is usually financed in the loan and paid directly to the FHA on the borrower’s behalf.  There may also be a monthly mortgage insurance premium as well of 1.20%, depending on the loan to value ratio.

Give Consumer Mortgage a call today at 757-552-7000 or toll free at 800-882-0066 for your next purchase transaction so we can calculate the amount of mortgage insurance you’ll need!

Did you know you may need mortgage insurance when purchasing a home?  Mortgage insurance (aka Mortgage Guarantee) is an insurance policy that covers lenders or investors for losses that occur when a borrower defaults on a mortgage.  Depending on the insurer, mortgage insurance can be public or private.  In most cases, lenders require mortgage insurance for mortgage loans which exceed 80% LTV (loan to value ratio) of the property’s sale price.  Due to the limited equity in the home, the lender requires that the borrower pay for mortgage insurance that protects the lender against their default.

            For example, you decide to purchase a home which costs $200,000.  You pay a 10% down payment ($20,000) and take out an $180,000 ($200,000-$20,000) mortgage on the remaining 90%.  The lender then requires the mortgage insurer to provide insurance coverage at, for example, 47% of the $180,000 ($84,600), leaving the lender with an exposure of $95,400.  The premium that the mortgage insurer will charge for this coverage will be paid by either you the borrower, or can be paid by the lender.  If you happen to default on your mortgage and the property is sold at a loss to the lender, the insurer will cover the first $84,600 of losses.  Percentage of coverage offered by mortgage insurers can vary from 37% to 78%.

            In order to obtain public mortgage insurance from the FHA (Federal Housing Administration), you must pay an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount at closing.  The UFMIP is usually financed in the loan and paid directly to the FHA on the borrower’s behalf.  There may also be a monthly mortgage insurance premium as well of 1.20%, depending on the loan to value ratio.

Give Consumer Mortgage a call today at 757-552-7000 or toll free at 800-882-0066 for your next purchase transaction so we can calculate the amount of mortgage insurance you’ll need!