Maribeth Marzeotti's Blog
Obtaining a home loan is a must for most homebuyers. However, there is a lot to think about to ensure a homebuyer can secure a loan that matches or exceeds his or her expectations.
Some of the key questions to consider about a home loan include:
1. What is a home loan's interest rate?
It is paramount to understand a home loan's interest rate, along with any associated loan fees. That way, a homebuyer will know exactly how much he or she will be paying over the life of a home loan.
If a homebuyer chooses a fixed-rate mortgage, he or she can lock in an interest rate for the duration of a home loan. This means a homebuyer will pay the same amount each month. And in many instances, a fixed-rate mortgage can be paid off early without penalty.
On the other hand, a homebuyer may prefer an adjustable-rate mortgage. With this type of mortgage, a homebuyer may receive a lower interest rate initially that rises after a set period of time.
Compare and contrast the different home loan options and their associated interest rates. By doing so, a homebuyer can make an informed home loan decision, one that serves him or her well both now and in the future.
2. Does a home loan require a minimum down payment?
Ask a lender about whether there is a minimum down payment required as part of a home loan agreement. Typically, a homebuyer will need to pay at least a small portion of a home's price to secure a home loan, and it certainly helps to have this information available before you start evaluating available residences.
In addition, it may be worthwhile to save as much money as possible prior to starting a home search. With money at your disposal, you may be better equipped than ever before to make a large down payment, thereby reducing the amount that you'll need for a home loan. Plus, you may even be able to boost your chances of getting a favorable home loan interest rate.
3. Will I need to provide legal documents to obtain a home loan?
Lenders will require you to provide proof of your income and assets, W-2 statements and other legal documents to finalize a home loan agreement. If you stay organized and have these documents readily available, you should have no trouble providing them to a lender as needed.
Overall, the home loan application process may vary from several weeks to many months. The time it takes to secure a home loan can be stressful, and if you need extra help along the way, it never hurts to reach out to a real estate agent.
With a real estate agent at your side, you can streamline the process of buying your dream home. This housing market professional can offer expert tips throughout the homebuying journey and ensure you can discover a great house at an affordable price.
Take the guesswork out of securing a home loan – consider the aforementioned questions, and you can move one step closer to getting the financing you need to obtain your ideal residence.
When it’s time to buy a new home, you’ll hear a lot about the importance of location. How can you choose a place? Whether you’re moving around the corner or across the country, there are a few essential things that you should know in order to select the best place for you to live. Read on for some questions that you should ask yourself when trying to find a good fit for a location to live.
What Should Be Close?
There’s more to a home than what schools are nearby or how close you are to work. While these things are essential, you’ll need to understand more about our lifestyle to find an excellent location. You’ll have to look at your life and your family’s life on a day-to-day and weekly basis. What types of activities do you enjoy? How close do you want to be to a grocery store, a gym, or a shopping center? How close do you want to live to the city? The mountains? The beach? Does your family enjoy outdoor recreation like hiking or walking through the park? Making sure that the things that are important to you and your family are accessible will be a big part of choosing a location to move.
How Walkable Is The Neighborhood?
If your kids will be walking t school, or you enjoy daily strolls with the family dog, the walkability of a neighborhood is important. Many places allow you to walk everywhere right out your front door to the grocery store or the hair salon without ever setting foot in a car. You may even want to be able to walk to a bus or subway in order to get to work each day. Walkability is an important aspect to consider when looking at home locations.
Who Lives Nearby?
You may want to consider who lives nearby when looking at different neighborhoods to move. If you wish to live near family or know some good friends who live close, this could be a good starting point for finding the right location to live. It’s always easier to make the transition to a new area when you know a few people.
How Quiet Is Too Quiet?
Some people love peace and quiet. Other people need a lively environment that allows them to access the hustle and bustle any time they choose. Knowing your want for peace is a big lifestyle choice and a large part of selecting a location to live in. The closer you move to a big city, the easier your access to the more exciting side of life will be. The further away you live from the city, the more likely you are to have more quiet.
Shopping for a home is a long, arduous process. When you finally find one that you love, think you can afford, and spend the time to formulate an offer, it can be crushing when your offer is rejected.
However, getting rejected is simply part of the process. If you’ve ever applied to college, you might be familiar with this process. You send out applications that you poured your heart and soul into. Sometimes to get accepted, other times you don’t.
Making an offer on a home comes with one big advantage over those college applications, however--the opportunity to negotiate. As long as the house is still on the market after your offer is rejected, you’re still in the game.
In this article, we’re going to talk you through what to do when your offer is rejected so you can reformulate your plan and make the best decision as to moving forward.
1. Don’t sweat it
One of the most common fallacies we fall into as humans is to think the outcome is worse than it really is. First, remember that there are most likely other houses out there that are as good if not better than the one you are bidding on, even if they’re not for sale at this moment.
Next, consider the rejection as simply part of the negotiation process. Most people are turned off by rejection. However, you can learn a lot when a seller says no. In many cases, you can take what you learned and return to the drawing board to come up with a better offer.
Don’t spend too much time scrutinizing the seller’s decision. Ninety-nine percent of the time their decision isn’t personal. You simply haven’t met the pricing or contractual requirements that they and their agent have decided on.
2. Reconsider your offer
Now it’s time to start thinking about a second offer. If the seller didn’t respond with a counteroffer it can mean one of two things. First, they might be considering other buyers who have gotten closer to their requirements. Alternatively, your offer may have been too low or have had too many contingencies for them to consider.
Regardless, a flat-out rejection usually means changes need to be made before following up.
3. Making a new offer
This is your chance to take what you learned and apply it to your new offer. Make sure you meet the following prerequisites before sending out your next offer:
Double check your financing. Understand your spending limits, both on paper and in terms of what you’re comfortable spending.
Check comparable houses. If houses in the neighborhood are selling for more than they were when the house was previously listed, the seller might be compensating for that change.
Make sure you’re pre-approved. Your offer will be taken more seriously if you have the bank’s approval.
Remove unnecessary contingencies. It’s a seller’s market. Having a complicated contract will make sellers less likely to consider your offer.
4. Move on with confidence
Sometimes you just can’t make it up to the seller’s price point. Other times the seller just can’t come to terms with a reasonable price for their home. Regardless, don’t waste too much time negotiating and renegotiating. Take what you learned from this experience and use it toward the next house negotiation--it will be here sooner than you think!
If you’re looking to buy a new home anytime soon, getting your finances in order is an excellent first step to getting the keys to your dream property. No matter where you want to buy a home, your financial picture is the most critical aspect of buying a home. Read on for some tips to get you financially prepared to buy a house.
Set A Savings Goal
Buying a property will require a significant amount of money up front. From closing costs to the down payment, you need to set a specific amount to save up before you even get out on the house hunt.
Break your savings goal down by month over a yearly number if you have multiple years before you buy.
Have A Specific Account For Savings
If you don’t see it, you won’t spend it. Tuck all of your savings in one account. Use automatic transfers to make saving from your paycheck easier and seamless. Before you even check your account, you’re on your way to your savings goals. You may not want to keep your money in higher yield accounts. These may not allow you to take the money out when you need it. Take the time to shop interest rates on savings accounts at different banks. Some may even offer a bonus. Just remember always to pay yourself first. Don’t be tempted to spend the money that you have saved.
Rethink Your Budget
Depending on the amount that you want to save to buy a home, you may need to cut costs significantly. Take the time to do a budget and see where you may be able to cut down on costs. Should you cut the cord on cable? Are you going out to restaurants too often? Another idea is to call your phone company and other utility providers and ask about discounts. You may need to make some lifestyle and budgeting adjustments in order to get on your way to your dream home.
Use Gifts Wisely
Did you get a big Christmas bonus from work? Did a relative give you a monetary gift for your birthday? Take all of the extra cash and stash it away in the account that’s dedicated to your home savings. It will only help you to achieve your goals faster.
Keep Your Accounts Stable
Before your loan can close and the keys to your dream home are yours, you’ll need to make sure you don’t make any significant purchases. You need a paper trail for all of your money. Before you buy a home is not the time to go nuts and buy furniture or buy a car. These things can affect both your credit and debt-to-income-ratio.
As a condo buyer, it is important to find a property that matches or surpasses your expectations. At the same time, you'll want to do everything possible to avoid paying too much for a condo.
What does it take to shop for a condo and avoid the risk of spending too much to acquire your dream residence? Here are three tips to ensure you can pay the right price for any condo, at any time.
1. Browse the Real Estate Market Closely
An informed condo buyer will be able to differentiate a mediocre property from a great one. Plus, this condo buyer will know what it takes to avoid paying too much for a property that is unlikely to deliver long-lasting value.
Take a close look at the current housing market to understand the prices of condos in various cities and towns. By doing so, you can determine the price range for condos that fit your needs.
Don't forget to check out the prices of recently sold condos in your area too. That way, you can understand how long condos typically are available before they sell and map out your condo buying journey accordingly.
2. Get Pre-Approved for a Mortgage
Pre-approval for a mortgage will allow you to define how much you can spend on a condo. It also will enable you to reduce the risk of stretching beyond your financial means to acquire your dream condo.
To get pre-approved for a mortgage, you'll want to meet with several banks and credit unions before you kick off your condo search. This will allow you to learn about both fixed- and adjustable-rate mortgages and the pros and cons associated with these mortgages.
Furthermore, don't be afraid to ask lenders how different types of mortgages work, as this will enable you to select a mortgage that corresponds with your budget both now and in the future.
3. Consult with a Real Estate Agent
Employ a real estate agent to assist you along the condo buying process – you'll be happy you did. This real estate professional will do what it takes to help you land an exceptional condo at a budget-friendly price.
A real estate agent understands the differences between a buyer's market and a seller's one. As such, he or she can offer tips at each stage of the condo buying process, ensuring you can buy a top-notch condo without spending too much.
In addition, a real estate agent will take the guesswork out of going from condo buyer to condo owner. This housing market professional will set up condo showings, negotiate with condo sellers on your behalf and much more. That way, you can accelerate the process of acquiring a great condo.
Buying a condo at an affordable price may seem impossible at times, but a real estate agent will make it simple for you to do just that. Consult with a real estate agent today, and you can improve your chances of securing a condo without the risk of overspending.