Purchasing a home will most likely be the biggest and most
important investment you make. There are many things to
consider. The home buying process can seem complicated,
but if you take things step-by-step, you will soon be holding the
keys to your own home! The following steps will help guide
you through the process
1. Figure out how much you can afford
What you can afford depends on your income, credit rating,
current monthly expenses, down payment and the interest rate.
loan options, and get pre-approved
We can help you to determine if you qualify for special
programs, such as FHA, VA, My Community, or if a
conventional loan is best for your situation.
3. Shop for a home
You can do this on your own, or through a real estate agent.
Learn the pros and cons of each.
4. Make an offer
If you need help with closing costs, ask for the seller to help
5. Get a home inspection
Make your offer contingent on a home inspection. An
inspection will tell you about the condition of the home,
and can help you avoid buying a home that needs major
6. Shop for home owner’s insurance
Lenders require this. Be sure to shop around for the best rates.
7. Sign your papers
Once we get final approval from the lender on your loan, you
go to your “closing”. This will take place at a local title
company. Make sure you read everything and fully…
Paying off one loan by obtaining another; refinancing is generally done to secure
better loan terms (like a lower interest rate).
In a low interest rate climate, many homeowners also refinance for a shorter
loan term, so that they can pay off the mortgage on their homes sooner. If one
can get a lower interest rate by refinancing, he can often refinance a 30 year
mortgage with a 15 year loan with little to no increase to his monthly payment.
Remember, your situation is unique. Don’t be tricked into thinking that one
particular type of refinance loan is a must have just because your friend or
coworker just got “a great rate” on their latest refinance or because it was the
loan your parent’s had.
Refinancing to make home improvements is one of the best ways to build value
and equity in your home. Certain additions, particularly decks, kitchens and
garages, as well as a fresh coat of paint, can really raise your property’s value
and of course improve your quality of life. Some of these improvements can
return up to 200% on the amount you borrow to invest in them, however if you do
the work yourself you can create even more value, which helps your house stand
out from the crowd when it finally time to sell.
Having your loan to value ratio change is often a good reason to refinance your
mortgage. If the equity in your home has grown by a decent amount, a lender
may consider your risk level to be lower. That can result in being able to have a
lower interest rate.
Refinancing used to mean lowering your rate by two points. That simply is not
true anymore. You can save money just by removing mortgage insurance or
consolidating debt even at the same rate. If you are on an FHA loan you must
lower your rate by at least a half a percent from fixed to fixed and by two points if
you are going from fixed to adjustable.
Refinancing your mortgage has many benefits. Lowering your payment and
interest rate are the obvious first reasons. However, you can also refinance for
cash out to consolidate other bills and credit cards into one easy monthly
payment that could save you hundreds of dollars each month.…