The Key To Your New Home
STARTING THE HOME BUYING PROCESS
Getting a jump start on securing your mortgage loan can greatly alleviate unwanted stress down the road. Mortgage options and requirements change frequently, as your REALTOR we will discuss current developments, suggest qualified lenders in your area, and help answer questions you many have.
SECURING YOUR PRE-APPROVAL
BUYERS MUST KNOW
Determine Your Credit Status
All mortgage lenders will compile a credit check to help secure your mortgage loan, Its advise to verify your credit rating in the beginning of your home search. Identifying and resolving any credit problems to improve your credit rating will provide benefits, such as preferred rates from lenders and home insurers. To acquire a copy of your credit report - two major credit bureaus; Equifax and TransUnion.
Selecting A Lender
In order to find the best home loan for you, Contact several lenders to discuss what they offer; rates, closing costs, additional fees. When selecting a mortgage lender the loan and terms should be favorable to your situation.
Rates And Duration
Two of the most important factors in choosing a mortgage are the interest rate and duration. Combined with the amount you borrow, will largely determine the amount of your monthly payment. Mortgage rates change, subject to various economic factors. Most buyers opt in for a fixed-rate usually 1-5 year terms, paying the same interest rate over the term. With an adjustable rate mortgage rates changes after a predetermined number of years.
Pre-Qualification Or Pre-Approval
Buyers are advised to first get pre-qualified for a mortgage then get a pre-approval before beginning the home search. Pre-qualification: an informal determination by a lender or mortgage broker stating the amount of mortgage you can afford / Pre-approval: a guarantee in writing by a lender to grant you a loan up to a specified amount. Sellers will find your offer more attracted if you are pre-approved. The closing window of time can be shiroter if youve secured a mortgage approval prior to offer.
Lenders look at a variety of factors when evaluating how much mortgage you can afford for your home, the two most important:Your monthly mortgage payment, as a percent of your gross income i.e pretax, and your total debt load, including your mortgage payment, relative to your gross income.
Down Payment / Deposit
Lenders require a down payment from buyers, typically up to 20% of the appraised value of the homes purchase price. The deposit will become part of the offer as a sign of good faith which typically is 5% of the purchase price. Note: If the sale does not close, due to negligence of the buyer your deposit could be forfeited to the seller. A mutual release form would need to have both buyer and seller signatures to release the funds back.
You can still obtain a mortgage with a lower downpayment less then 20% but you will probably need to obtain mortgage insurance which helps protect the mortage lender if the buyer falls into default.
For those of us that aren't sitting on a large stack of cash, get pre-approved for a loan first. Know exactly what you can afford before house shopping. Remember a Real Estate contract is binding, and the last position you want to be in is making an offer on a home that you cant afford. Knowing your budget will direct you in the right direction.
ASSESS YOUR CREDIT & FINANCES
QUALITY DATA YOU CAN TRUST AND RELY ON
Buying a home can be one of the most exciting adventures in your life. It can also be one of the most overwhelming experiences if you try to go at it alone. You should have an experienced REALTOR® working for you, guiding you and looking out for your best interests. Did you know that when you work with a REALTOR® as a buyer, in most circumstances your REALTOR® is paid by the sellers from the proceeds of the sale? So why wouldn't you work with a REALTOR®?
First Time Home Buyers
Get immediate access to 1000's of homes for sale in your desired area. Buyers can have confidence that they will have access to the largest pool of properties for sale in the marketplace.
Register today and gain access to 60% more listings that aren't available to the general public, at no cost, risk or obligation. Anytime a new listing matches your criteria you will receive the information with an automated email . This will give you the leverage over other active buyers who aren't working with a REALTOR®.
Find Your Dream Home At Your Dream Price! Get Your FREE Buyers Guide Today!
Quality information outlining the service that First-Time Home Buyers will receive when choosing Forest Hill Real Estate Brokerage Inc. Signature to help guide you through the buying process.
About Our Company - Forest Hill Real Estate Brokerage Inc. Signature
About Elizabeth Hobson - The Key To Your New Home
Our Service Guarantee
Step #1 - Buying Consultation
Step #2 - Credit And Finances
Step #3 - Property Search
Step #4 - Offer Price Strategy
Step #5 - Negotiating The Contract Terms
Step #6 - Securing A Mortgage Loan
Step #7 - Closing Day Preparation
Step #8 - Closing Day Final Steps
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