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...
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...
4 Things To Do While Saving To Buy A Home

4 Things To Do While Saving To Buy A Home

Being a first time home buyer, you do have some homework to do outside of just choosing a realtor. The realtor can explain and direct you to the best of their abilities in purchasing your home. Aside from the obvious step of saving money, here are 5 things you can do to make the process that much easier. Understanding the full cost of home ownership When you rent, the one payment covers just about everything (utilities excluded). You’re not fixing the broken sink, appliance, or any taking care of the grounds, its the owners responsibility. These are things as a new homeowner you need to brace and prepare for. Luckily, in most first time home buyer situations, taxes and insurance are included in your monthly mortgage due to the type of loan product most popular with first timers. If you’re pursuing a condo, you’ll have to factor in that condo fee (HOA) as an additional expense. These are all things you need to factor in and decide if you will be able to afford as well as the new mortgage. Know the Buy Vs Rent Pros and Cons Renting may actually be a better option for some individuals. Maybe somebody that isn’t completely set on living in a certain area due to career or personal factors. Some people aren’t able to own a home because they don’t have the time or funds to maintain it. Buying is becoming cheaper than renting in most areas of the country due to the tax breaks at the end of the year set for homeowners. This is something that you and a realtor...
What will it take to qualify for a home loan with no money down?

What will it take to qualify for a home loan with no money down?

In Connecticut there are a few programs in which you can buy a home with a no money down loan (100% financing). The one which I would recommend and have done the most work with for my clients personally is through CHFA (Connecticut Housing Finance Authority). They allow you to purchase a home with no money down on the loan. You do still have some other costs that are involved with a purchase but its ideal for a first time buyer whom maybe doesn’t have the normal 3.5% or 5% down payment. So what are the qualifications for this loan? Here are the basics* Minimum credit score of a 680 (no active collections) 2 years of employment at same job or in same field/position 2 years of tax returns/W2s 60 days of bank statements and paystubs When buying a home, you do still have the buyer inspection (average of about $400) and appraisal (average of about $500). These costs will need to be paid by the buyer and are not included in the loan. The time frame on these loans is slightly longer as you have to get a bank and CHFA final approval. You can expect about a 60 day closing (from time your offer is accepted until the day you get keys).   I hope this give you a better idea of whats needed and what 100% financing entails. As always, if you have any questions or would like to begin the process, we are here to help you. If credit is an issue and you need help in that area, please hit the “Credit Repair Assistance”...

The 5 Reasons You Should Buy Your Home This Fall

With all the beautiful Connecticut foliage, happenings, and fairs going on during another New England fall season, real estate is something else you should have an eye on. While spring is the most popular buying season, here are 5 reasons you should buy a house this fall. What’s left of Spring Inventory may work for you As stated before Spring is when most sellers list their home initially, but what happens when they don’t sell? Most sellers stay on the market in hopes of selling and may end up with a home that sells less than its market value. Less Buying Competition A biy motivation in buying is closing before school starts, and now that time has come and gone. Many are also hesitant to buy in the fall and cooler months of the year. Many Sellers want to close by years end Some properties aren’t homes and investments for some owner, so the tax consequences can be motivation for a seller to make a deal. Some agents even convince sellers to offer incentives and extra discount to buyers whom can close by years end. Homes on the market during holidays usually have motivated sellers Many don’t like their home to be viewed or open during holidays and disrupting their family gatherings and events. If a seller is listed during this time, then in most cases they’re motivated and likely to work harder to put the deal together. The great landscaping is gone Flowers are starting to die and trees losing their leaves so the beauty of the landscaping for homes is going away. This will let you know...

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