Dealing with Financing
It is important to remember that home ownership is a financial responsibility. Here are a few tips for dealing with the dollar signs so that you can take down that “for sale” sign on your new home.
Get pre-approved.. By getting pre-approved as a buyer, you can save yourself the grief of looking at houses you can’t afford. You can also put yourself in a better position to make a serious offer when you do find the right house. Unlike pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history. By doing a thorough analysis of your actual spending power, you’ll be less likely to get in over your head. We work with excellent lenders who can help guide you in this process and make sure you have access to all of the local mortgage incentives that some internet lenders may not have.
Choose your mortgage carefully. Used to be the emphasis when it came to mortgages was on paying them off as soon as possible. Today, the debt the average person will accumulate due to credit cards, student loans, etc. means it’s better to opt for the 30-year mortgage instead of the 15-year. This way, you have a lower monthly payment, with the option of paying an additional principal when money is good. Additionally, when picking a mortgage, you usually have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for a lower interest rate. If you plan to stay in the house for a long time this may be a good idea but it’s best to consult your mortgage lender or financial advisor to figure out what is best for your situation.
Do your homework before bidding. Before you make an offer on a home, do some research on the sales trends of similar homes in the neighborhood with your real estate agent. There are different strategies depending on the particular home and situation for what you are buying. Each real estate transaction is unique and thus it is important to consult an agent who has the expertise to properly navigate the ever changing markets.