Stop Paying Rent Forever!
Six Tips To Help Save You Money...And Anxiety!
As interest rates continue to hover around their thirty-year lows, a multitude of flexible and low cost loan financing programs are still available as well as a wide variety of assistance programs that can help virtually anybody experience the joy of Home Ownership. In short, the time is right for buying a home.
However, if you have always been a renter then you probably aren't as well informed of the intimate processes of obtaining a home mortgage as you'd like to be. To guide you through this exciting but often confusing time, this report details six tips that will help make your purchase a much smoother experience, save you money and eliminate your anxieties.
1) Get Pre-Qualified Before Starting Your Search
Before you begin looking for the home of your dreams, before you make one single decision regarding a home purchase, get pre-qualified by a mortgage professional. This is a FREE service offered and will give you a definite advantage in the buying process.
During the evaluation stage, we'll look at your financial situation and help you figure out how much home you can afford. This may influence your decision for size, amenities and location, which will help narrow your search.
Pre-qualification will also give you a step up on your competition. Home Buyers that are pre-qualified have increased leverage over buyers who are not. Essentially a pre-qualified buyer becomes a "cash" buyer.
2) Shop Around For A Mortgage Professional
Like most industries, the quality of mortgage professionals can and does vary significantly. So don't immediately settle on the first lender you talk to. Shop your mortgage around to until you find someone that you completely and unconditionally trust. "I think you will find that just may be me" BIG SMILE!!!!.
While rates are certainly one of the most significant factors in choosing a lender, there are other things to consider as well. Compare closing costs, whether there are "points" involved or not (the percentage of the mortgage that the originator takes as commission), and how long your pre-qualification is good for are all things to consider.
3) Don't Become Fixated On The Interest Rate Alone!
Be careful! The lowest interest rate does not always translate to the best deal. Look at the total loan program that is being offered, not just the rate. There are several factors that have to be taken into account when evaluating programs: the loan type (fixed or adjustable), the loan term (15 year or 30 year), the closing costs and the down payment requirement.
4) Clean Up Your Credit
By getting pre-qualified, you will be made aware of any potential credit problems in your credit history. Don't despair if the credit report is not stellar. I work very closely with an attorney group that has had great results with credit restoration. Our average client sees an average 127 point increase in as little as 6 months.
Review your credit report carefully. It is very common for non-payments to be listed that are not even yours. This is something I can help you with. Many times, a simple letter to the creditor explaining the circumstances at the time of the incident will rectify the situation. However this may take a few months, so start early. If the challenge is more serious, we can work with an proven credit restoration association.
5) Use A Realtor
When buying a home, the biggest mistake you can make is believing that you can save money if you do not use a Realtor. Although the seller pays the commissions, some listing agents will tell you they can represent both you and the seller fairly. While in some cases this may certainly be true, it's better to be safe than sorry.
Get a real estate agent that represents your interests solely. A buyer's agent will make sure the home is inspected properly, be diligent on any hidden discovery, and most importantly, save you money by negotiating the price of your new home. The money you save will more than off-set any reduction in price due to the commissions not being paid by the seller. If you need help selecting an agent, I would be happy to recommend one.
6) What Do You Want In A Home?
There will be many decisions as you start this process. Your real estate agent will take you to several different homes, some of which you will like and some you won't, but most will land somewhere in between.
"I love this home except it doesn't have..." or "That home would be perfect if it only had..." will be common phrases during this process.
Decide now what features you feel are "necessities" in a home and which features are items that would be "nice to have." This list, will no doubt change the further along you go but the list will be extremely useful as you begin to look at homes. It will also be useful to the agent so he/she can better qualify the homes you see.
Most importantly, enjoy the process. Buying a home should be a very exciting time. Rely on a team of professionals to make the process as easy as possible. If you are buying in Wisconsin, please feel free to give my office a call for a FREE consultation. If you need a recommendation to a "Trusted Lending Professional" outside of Wisconsin, we are happy to make a recommendation... Remember IT IS ALL ABOUT YOU AND YOUR BEST INTEREST.
I sincerely hope these tips are of value to you. If there is any way I can be of service to you please contact my office. I would consider it a privilege to be of service to you!