If you’re getting ready to buy a home, you’re likely realizing that one of the most important parts of the process is getting approved for a mortgage that works for you. To get the best rate and avoid losing your deposit, steer clear of these common mistakes.
Leaving out details from your financial profile. The best way to avoid doing this is having a great mortgage lender. Making sure you include not only your basic information, employment and living history, income, assets and debts, but also ensuring you answer every single question. Leaving details out of your profile can throw off the entire process, so having someone who is meticulous enough to make sure all your information is made available is key. Assuming pre-approval is equal to actual approval. Pre-approval for a mortgage means that you’ve talked to a potential lender or maybe even provided some documentation that gave the impression that you will be approved for a certain amount. Don’t be confused - this is not an actual approval. You need to make sure your loan is approved by an underwriter before making any offers to buy a home. When you are “underwriting approved” you will be able to get a formal loan commitment. Without this document, there is no proof of actual approval, meaning that your profile has been evaluated but nothing official to show approval. Failing to provide every single piece of documentation needed. Your lender is going to want very detailed documentation of your financial profile, including the following:
Not knowing enough about mortgage rates. Once a seller accepts your offer, you will be in contract on that home and you will be ready to lock in your mortgage rate. You cannot lock your rate until you’re in contract, which means that any rate market movement can impact you until then. Rates change throughout each day, and they are priced based on how long they are locked. A shorter lock, about a month or less, will have a lower rate than a lock of 60+ days. If you want to avoid any surprises, talk to your lender and ask them to use your closing timeline to quote rate locks. 10/5/2020 0 Comments wHATS YOUR MONTHLY MORTGAGE?Interest rates have changed over the last year. When rates were holding steady in the high and mid 3's. Monthly Mortgages were higher. Let's look at the numbers.
Purchase Price | % interest Rate: 2.5% 3.0% 3.5% 4% 150,000 592.68 632.41 673.57 716.12 175,000 691.46 737.81 785.83 835.48 200,000 790.24 843.21 898.09 954.83 225,000 889.02 948.61 1010.35 1074.18 250,000 987.80 1054.01 1122.61 1193.54 275,000 1086.58 1159.41 1234.87 1312.89 300,000 1185.36 1264.81 1347.13 1520.06 325,000 1284.14 1370.21 1459.40 1551.60 350,000 1382.92 1475.61 1571.66 1670.95 375,000 1481.70 1581.02 1683.92 1790.31 400,000 1580.48 1686.42 1796.18 1909.66 9/30/2020 0 Comments Buyer Agency.What is Buyer Agency?
- A real Estate Broker or there agents representing a buyer in a real estate transaction. Should you use a buyers agent? The answer is always going to be yes! Why? Because they are only representing you not the seller, and guess what they are FREE to you! What do you get for free? - A personal shopper that has access to more up to date and accurate listings then you. - A personal assistant to schedule showings, Closings, Title work, follow up with Lenders, Listing agents, cross all the T's and dot all the i's. - A personal expert in the housing market industry. Here's an example: You don't go to court and hirer the same lawyer as the Defendant? Do you? No you want someone on your side representing you, and you only. Someone with Experience, Knowledge and someone that is motivated on your behave not someone else's. Before looking for a house sit down with a Realtor and discuss your wants and needs and decide if they are going to be a good fit for you. 9/30/2020 0 Comments Real estate Life.What is a Contingency?
-The sale and purchase of a house will only happen if certain conditions are met. Should a contingent offer be held less then a non contingent offer in this market, In this market whats the average days on market ? August 2020 the average house was on market for 39 days. This means the listing was under contract in the first week listed! So back to my question should a contingent offer be held less then a non contingent offer in this market? There is no such thing as a contingent offer everything is selling in the first week of being listed. |
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