Blog – Page 701 of 895 – Fred Gruber - First Rate Financial Group

15

Sep

Home Mortgage Tips

Mortgage Myths: Here’s Why You Don’t Need a Full 20 Percent Down Payment

Mortgage Myths: Here's Why You Don't Need a Full 20 Percent Down Payment If you’re just getting into the real estate market, you may have heard that 20% down is the ideal percentage in order to lower your monthly payments and get your mortgage application approved. However, while 20% is often suggested, many people struggle to come up with this amount of money. If you’re staving off home ownership, here are some reasons you may not need to hold off as you long as you thought.

Minimizing Your Insurance Costs

Putting down 20% of the total purchase price of your home is often suggested, but it doesn’t definitively mean that your application won’t be approved if you don’t. If you have a good credit score and are in good financial standing, putting less than 20% down means you’ll have to pay Private Mortgage Insurance (PMI); however, it can be worth paying the extra funds in order to get into the real estate market sooner and start paying into your most significant investment.

Mortgage Programs For Less Than 20%

It may seem less possible to buy a home if you only have 5 or 7% of the purchase price, but there are many programs in the United States that enable those with limited funds to apply for a mortgage. From the Federal Housing Administration (FHA) to Fannie Mae and Freddie Mac, there are many lenders that can offer you mortgage programs that will work for your situation. While higher rates come in tandem with a lower down payment, there are options out there for those who haven’t saved quite enough.

Why Put Down 20%?

Putting down 20% is not a necessity for mortgage approval or purchasing a home, but it can be a great means of saving money in the long run and reducing your interest rates. If you’re raring to get into the real estate market and don’t want to wait for the bills to stack up, that’s OK, but if you want to hold off and save up additional funds before diving in, this can mean more money and a more solid investment in the future.

20% is often the magic number when it comes to a down payment on a home, but you don’t require this percentage of your home’s price in order to get approved for a mortgage. If you’re currently considering diving into home ownership and would like to know more about the opportunities in your area, contact your local mortgage professional for more information.

14

Sep

By support

Home Buyer Tips

Real Estate Investing: 3 Insider Tips to Winning House, Land or Foreclosure Auctions

Real Estate Investing: 3 Insider Tips to Winning House, Land or Foreclosure Auctions House, land and foreclosure auctions can be one of the most nerve-wracking ways to buy a property. However, if you prepare yourself with proven bidding tactics, auctions can be a great way to purchase your dream home at a competitive price.

If you’re in-it-to-win-it, familiarize yourself with these top three tips and tricks before attending a real estate auction.

Give The Right Impression

While you may not have control over what other bidders are willing to pay for a property, you do have some control over their perception of whether or not bidding against you is worthwhile. Come well-dressed and maintain a confident demeanour to give the appearance that you are a serious buyer, one whom ‘the other guy’ likely can’t out-bid.

To enhance this appearance, do not make an offer right away. Wait until the bids have reached approximate 80% of your maximum price and then join in, as it will knock out the bargain hunters. A big first bid can be intimidating to others, making them question whether they stand a chance against you. Following bids should be made quickly and confidently to send the message that you are the person who will be closing this deal.

If you are extremely anxious to place bids, consider hiring a professional bidder to do the work for you. A seasoned pro will be able to maintain their cool while placing bids strategically to maximize your chances of getting the property you want at the price you want.

Know Your Limit

Never go into an auction without knowing your absolute limit. If you are emotionally invested in the property it is best to write your limit somewhere on the inside of your hand, so that you are forced to remember it when you’re tempted to exceed it.

In terms of setting a limit, pick a figure that isn’t rounded. Many buyers will set limits such as $500k or $1.2 million, and will drop out after these round figures have been reached. If your limit is $515k or $1.25 million, you will have an extra cushion than may just barely outbid your rivals – and that’s all you need to win.

Ask The Hard Questions

Do your research beforehand and ask the auctioneer about the property’s flaws. Questioning whether the deck is up to code or whether there is still a possibility of road widening could make other bidders second guess the property and drop out before bidding has even begun.

Ready to blow the competition out of the water? Make sure you are completely prepared for an auction, contact your trusted mortgage professional today.

13

Sep

By support

Home Mortgage Tips

Financing That Dream Home with a Mortgage? Here’s What to Expect on Closing Day

Financing That Dream Home with a Mortgage? Here's What to Expect on Closing Day There are so many details that lead up to the purchase of your dream home that it can be hard to realize it when the closing day is finally upon you. However, when closing day finally arrives, there will still be a few last minute details that need to be taken care of. If you’re getting ready to solidify your home purchase and are wondering about the remaining paperwork and any unknown details, here are some things you can expect when it comes to making your purchase complete.

One Last Walk Through

A home inspection is an important part of any home purchase, but buyers often have the option to go for one final walk through on closing day in order to determine if any additional damage has been done. This will help to ensure that if any additional issues have appeared, they can be discussed and taken care of by the seller. While it might seem like the home inspection should take care of things, a last walk through can be very important in ensuring you don’t get stuck with unwanted – and potentially expensive – repairs.

A Few Helping Hands

Most of the details will be taken care of by the time closing day comes, but that doesn’t mean it will be up to the lawyers to settle everything for you and the seller. Instead, you can expect a wide cast of involved parties that can range from the seller’s agent to the title company representative to the closing agent, in addition to the homeowner and yourself. It’s just important to be aware that which parties are involved will be dependent upon where you live.

A Bevy of Documents

Purchasing a home is not without an abundance of paperwork, but there will be a few more documents to deal with during your closing meeting. In addition to documents that outline the agreement and the property transfer, there will be others like the deed of trust, the settlement statement and the mortgage note that verifies that the buyer will pay back the mortgage loan.

There are many stressors that come along with the purchase of your home, but by taking all the documents you need and being prepared to deal with all the engaged parties, the day can go a lot more smoothly. If you’re currently looking into a mortgage and are on the market for a home, contact your local mortgage professional for more information.