What Mortgage Options Are Available?
Buying and Financing A Home – Home loan lenders now offer several affordable mortgage options which can help first-time homebuyers overcome obstacles that made purchasing a home difficult in the past. Mortgage advisors may now be able to help borrowers who don’t have a lot of money saved for the down payment and closing costs, have no or a poor credit history, have quite a bit of long term debt, or who have experienced income irregularities.
How Do I Calculate a Home Price Estimate?
The best answer is, get help from a real estate professional. But here are a few things you can think about in the meantime when you are buying and financing a home.
Start With Measurement
Learn the average per-square-foot price for recent sales in your neighborhood. That won’t set your final price, but it’s a good baseline that a lot of buyers use.
Ask for Comparative Market Analysis, or comps, from several agents. Go through each comp with each agent to understand both competitive homes on the market and each agent’s potential approach to yours.
Do your own research! – not just online, but in person. That will help you understand your market conditions and the buyer’s perspective realistically. Markets get hot and cold, up and down, and your local market defines the sales envelope for your home.
Consider All Terms
Price isn’t all there is to a sale. Can you close faster? Finance or lease-option the sale yourself? Cover some closing costs? Your flexibility can make sales leverage.
It’s Not Personal
The hardest tip of all. Most people are emotional about their home, but just remember, they’re buying your house, not your home and memories. Also remember that pricing, in the long run, is going to be logical and not emotional. Find a real estate professional you like and trust and let them help you through the process.
Best Way to Compare Loans Between Mortgage Lenders?
First, devise a checklist for the information from each home lending institution.
You should include:
- The company’s name and basic information
- The type of mortgage
- Minimum down payment required
- Interest rate and points
- Closing costs
- Loan processing time
- Whether prepayment is allowed
Speak with mortgage brokers by phone or in person. Be sure to call every home mortgage lender on the list the same day as mortgage interest rates can fluctuate daily. In addition to doing your own research your real estate agent may have access to a database of lender and mortgage options or suggest a variety of different lender options.
How Do I Find A Reliable Lender?
- Choose your lender carefully. Look for financial stability and a reputation for customer satisfaction.
- Be sure to choose a company that gives helpful advice and that makes you feel comfortable.
A lender that has the authority to approve and process your loan locally is preferable since it will be easier for you to monitor the status of your application and ask questions. Plus, it’s beneficial when the lender knows home values and conditions in the local area.
Do your research, and ask family and friends.
Will my Credit History Affect My Mortgage Application?
The FHA is generally more flexible than conventional loan lenders when considering credit history in its home loan qualification guidelines.
The FHA allows you to re-establish credit if:
- Two years have passed since a bankruptcy has been discharged.
- All judgments have been paid.
- Any outstanding tax liens have been satisfied or appropriate arrangements have been made to establish a repayment plan with the IRS or state Department of Revenue.
- Three years have passed since a foreclosure or a deed-in-lieu has been resolved.
If you prefer to pay debts in cash or are too young to have established credit, there are other ways to prove your eligibility for a home mortgage loan. Talk to your mortgage lender for details.
Down Payment on a House – How Much do I Need?
There are mortgage options available that only require a down payment of 5%, or less, of the purchase price. But keep in mind, the larger the down payment, the less you have to borrow and the more equity you’ll have. Also, mortgages with less than a 20% down payment generally require a mortgage insurance policy to secure the loan. When considering the size of your down payment consider that you’ll also need money for closing costs moving expenses, and possibly repairs and decorating.
For more help and a quick chat about your requirements contact Moreira Team now!