The Guide To Getting a Mortgage

The Guide To Getting a Mortgage

Buying a home is no easy task, but being informed and having the right professionals helping you will make all the difference in your experience. I pride myself on educating all my clients on the entire process and what they need to do to make it happen.  If you are unfamiliar as far as what to do to get the ball rolling on obtaining a mortgage, here are a few simple steps to make it happen: DETERMINE YOUR AFFORDABILITY Before you even start working with a Realtor or house hunting, you want to determine exactly what you can afford. This will greatly help you and your agent find and target what your options are. This is a big purchase, and you want to make sure that you will get a payment that you can comfortably afford, along with your normal household expenses. You can figure this out by using an affordability calculator and also a payment calculator to determine your buying power. GET STARTED ON THE MORTGAGE PROCESS The next step will be actually speaking with a lender/loan officer. I suggest speaking with a mortgage company rather than an individual bank. Companies have more flexibility and resources for different situations, as they work with more banks. You will need the following to get the process started in working with a lender/loan officer. Personal Info– Name, DOB, Marital Status Residence History– Rent payment or all mortgage, insurance and tax figures for at least the past two years. Employment and income– Documentation showing wages and employment history for at least two years. If you receive commissions or bonuses, you’ll need two years of...
5 Things To Know Before You Finance A Home

5 Things To Know Before You Finance A Home

Most people that buy any type of home, usually finance it. With that being said, that is the biggest purchase one will make in life. With something of that magnitude, you should be very cautious and know what you’re doing beforehand. Here are my 5 things you need to know before you make the jump into financing a home. 1. Understand the full cost of owning a home There are four parts of a mortgage; Principal, Interest, Taxes, Insurance. While the taxes are usually set, the insurance is dependent upon the property (size, area,pool,pets). Principal is the amount being financed and interest is the amount being charged to borrow that. Another aspect is your monthly bills, home maintenance, and other repair costs. Its is very important to have a mortgage that you are very comfortable with. 2. Know your credit Your credit history will determine if you ultimately get approved. By knowing where you stand credit wise, it makes the process that much easier of knowing what needs to be cleaned up and addressed beforehand. You should pull a free annual credit report and know where you stand. (Annualcreditreport.com) 3. Match your mortgage type with goals If your income isn’t going to grow over time, you will probably be in the home longer term, so you’ll want a loan with a payment that won’t change, like a 30-year fixed. Or maybe you expect your income to increase sharply within five years and you’re going to upgrade homes within that time, so you’ll want a five-year ARM, which has a much lower rate. If you don’t have a 20-percent down...
What are the requirements to get started in the home buying process?

What are the requirements to get started in the home buying process?

Owning a home is the American dream, that most people want to achieve at some point in life. Do most people know what the basic steps are to begin? Here they are. 1. Decide if owning is for you Owning is a big difference as compared to renting. You have all the responsibility for maintenance and costs that go with owning a home. Whether you go single family or multifamily, the responsibility is there. What i would advise doing is using a online calculator to determine what a mortgage and if you can cover those costs. 2. Sit and discuss with Myself/Lender Once you decide to pursue owning a home, meeting with a Realtor (me, lol) should be your next step. I will paint the picture and let you know what will be needed to make this happen and answer the many questions a first time home buyer would have. I work with several reputable lenders who can get you the best loan product for your particular situation. You are more than welcome to contact your own lender and/or bank, but working with a lender that has a relationship with your Realtor will ensure the process is as smooth as possible. 3. Get Pre approved Once you speak to the lender and they check your finances and credit, they’ll  be able to supply you with a pre approval. Most cases they will give you a maximum amount, that fits what you’re comfortable paying monthly. Once you have this, we can start home shopping. Here are the basics needed to get a mortgage pre approval. -Credit score of above a...
5 First Steps To Improving Your Credit Score

5 First Steps To Improving Your Credit Score

When it comes to improving your credit there is no “instant” fix to make it happen overnight. The best and fastest way to make sure that your credit stays great is to never let it go bad. Life happens to us all, and things happen. Here are the first 5 steps I direct my clients to do to improve their credit scores: Get a copy of your credit report and address errors According to a recent poll, 1 in 5 consumers have an error on their report. You should visit annualcreditreport.com and download your report (every citizen gets a free copy once a year), and see that everything is accurate and up to date. 2. Write a letter, or have credit repair company handle the errors found If errors or maybe a late payment is found, contacting the company that reported it should be your next step. It isn’t easy to get a creditor to remove a late payment, but there is a dispute process. Most lenders really only factor in the late payments within the last 12 months. Removing a negative account from your report can drastically improve your score once done. 3. Lower your credit card usage 30% of your credit score is your outstanding and current debt. Lowering that (under 30% of your limit on each card and overall) balance will definitely help your score within 30 days as well once the creditor next reports. Another option, is to request a balance increase from your creditor, which will lower how much is being used if increased. 4. Don’t apply for any credit Seeking new credit in...
4 Most Common Mistakes First Time Buyers Make

4 Most Common Mistakes First Time Buyers Make

Buying your first home can be a very exciting, nerve wrecking, and rewarding process without the right direction. So much rests on this transaction and if not done right it can cost you thousands of dollars and lots of stress. Being a first time home-buyer specialist, I make it my priority for every client to know what the process entails and how to make it easier. Here are the 4 most common mistakes First Time Home Buyers make. Not Listening to or Seeking Professional  As soon as you mention your buying a home, all your friends and family will give you their horror stories. While I wont say don’t listen, I will say that’s not exactly your fate. Being in the business long enough, I will say every deal has a bump and no two are the same. As soon as you think to begin the process, your first call should be to a trusted area Realtor (Me, lol). Reason being, we know the best ways and programs you can utilize to get the most out of your purchase. We can also send you to the best loan officers in the area and likely save you a lot of money and frustration. Not Learning the Process If you fail to plan, plan to fail. Knowing what you’re getting into step by step, will save you lots of time as well. What we call a buyer consultation is where we sit and go over the process and make sure you know what is going to happen. Again, no two deals are the same and there will always be issues that...

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