Tag Archives: Home Loans

Deciding to buy a house generally make people feel a lot as they have to face several decisions to choose the right way to do so and there are many options that are needed to be considered. The real estate market options and offerings continues to expand and provide consumers with a wealth of opportunities that are not readily available. If you are applying for a home loan and you are confused about it, then it is quite normal as applying for a home loan is a frustrating experience for every prospective home buyers. There are many people who don’t know the first thing about getting a mortgage loan and often get misled by false advertisement and opportunities.

If you are confused about taking the first step, then here are some mortgage tips in mind:

1. Start with your credit report

The first thing lenders will probably do when you apply for a mortgage is to check your credit; you should do that too. There is no better time for a regular credit check than when you try to prove your creditworthiness to a lender to get the best possible rates. You want to make sure that your credit report is as accurate as possible, that your scores are where you want them to be, and that no one else has access to your credit, which could affect your scores.

2. Next, get your affairs in order

Once you’ve regularly monitor your credit report, you can see how you’re doing. Challenge any inaccuracies with the three credit bureaus and get everything cleared up. If your debt-to-credit ratio is too high, monitoring your score over time will show you how your score might change. If you see accounts, you haven’t opened or addresses that aren’t yours, take immediate action to investigate what could be identity fraud.

3. Do your homework

Yes, the word “homework” makes us shudder too, but this time the reward is far greater than memorizing geometry theorems or the periodic table. You find a house, but you also make a financial commitment that you will have to live with for years: getting the best possible price. Research loans, rates, and brokers thoroughly before you sign or commit. If you do most of the work now, you’ll be rewarded later with a better rate and better terms.

4. be realistic about what you can afford.

Homeownership may be the American dream, but it’s also about keeping a foot on the ground. If you’re looking for a rate that will require a 20% down payment and you only have about 5%, do your calculations based on the rate you can get.

5. Understand how lenders work

Your credit rating, on which lenders base many of their decisions about your loans’ amounts and rates, reflects their confidence in your ability to repay them. In short, the higher your credit score, the easier it will be for you to get the amount and rate you want.

6. Decide how you’re going to finance it

Once you’ve researched the types of financing available, determine which one is best suited to your financial situation when you buy a home: a 15-year or 30-year mortgage, adjustable or fixed. If you’re looking for security and a guarantee that payments won’t increase, a fixed-rate mortgage may be the solution. If you think mortgage rates may still fluctuate and you want more flexibility, consider a variable rate mortgage.

7. The more extensive your down payment, the more options you have.

See number 4. It is essential to be realistic. So, within a realistic framework of what you can afford, the more you commit, the better your terms. The days of zero down payment, especially for a mortgage, seem to be coming to an end. By making a larger down payment upfront, you make sure you pay less each month.

8. Check the prepayment penalties

Another thing to keep in mind when looking for the ideal mortgage is whether you will be penalized for paying off the loan early. Some homeowners double their payments by the end of their term sooner – either regularly or with a cash windfall. Check and make sure you won’t be penalized if you reach your goal early!

 

 

Florida’s mortgage financing market is one of the most complex in the country. That’s why you need a team like Sunland Capital Mortgage Corporation to help you successfully navigate the complexities of the mortgage financing process. Call now for more details.

Having fun and purchasing a home are two phrases that are rarely used in the same sentence. Buying a home is a major investment, and the process of securing a mortgage and negotiating a price is complicated. Most buyers are unaware of the confusing steps that are involved but don’t worry.

Step 1: Assess your finances

This step determines the buyer’s ability to afford a home. The buyer may want to consult a financial adviser as to the strategy he or she may employ in paying for a home. Assessing your finances is important, especially if the buyer has a troublesome credit history and other financial obligations. The buyer must also reach a compromise between payment capability and desired property.

Getting a letter of pre-approval shows the seller that you are serious about buying a home. This certificate assures the seller that you have have enough money to buy their property. Securing a Pre-Approved certificate would range from a few days to a few weeks, depending on the status of the request. It’s worth the trouble of waiting, especially if it increases your ability to reach a fair compromise on price.

Step 2: Survey the Market

With the explosion of information, it becomes more exciting to search for possible properties. Newspapers, advertisements, referrals, brochures, and even the internet all give the buyer more choices and better options. Buyers should take full advantage of this information glut to facilitate his or her decision regarding a house. Remember, real-estate agents search for new homes daily. Use this knowledge to find your “dream home.”

Step 3: Learn from Others

If the buyer is a first-timer, he or she does not have to make the common mistakes first-timers commit. He or she should contact people who have been in the same circumstance and learn from their experience.

Step 4: Find a Suitable Agent

Considered as one of the most underestimated yet important aspects of home buying. Most buyers end up with an agent by sheer accident. It would do well for the buyer to do research and contact an agent whose strategy and skills fit the buyer’s needs. Buying or selling a house is a thrilling experience. But connected to this is a stressing and overwhelming job. This calls for an excellent real estate agent.

Verifying the real estate agent’s license is very helpful. It pays to be very cautious because this involves the property! This includes their state license in selling a property. Ask for the previous homes sold for a client.

Develop good chemistry with your agent. An agent understands what is important to you when searching for a property, and when negotiating with the seller. The agent should be able to tell their client the true worth of the property. Meet with your agent frequently so they can keep you up to date about new properties. A skillful agent can save the buyer a great deal of trouble and is instrumental in a successful sale.

Ask friends and family who they have used in the past, and ask them if they would use the same agent again in future transactions. Trusting your agent will save the buyer from a great deal of grief later.

Step 5: Close the deal

A great deal of discussion and paperwork is in involved in closing a deal. However, if the preceding steps were accomplished well, this step will be taken care of. Here, the buyer and the seller come to terms with the financial details, paperwork, and other details vital to the sale. By properly planning and educating yourself, you will now be the proud owner of your dream home!

House shopping can be stressful, but implementing these tips can remove some of the roadblocks on your path to finding your dream home. How can you use these tips to make your search smoother? Ready to start your journey to your new home? Sunland Capital Mortgage has over 20-years experience helping people find a home they love. Contact them today to learn more!

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