09
Nov
By First Rate Financial Group
Mortgage

What Potential Homebuyers Need To Know About Buying Their First Homes

What Potential Homebuyers Need To Know About Buying Their First HomesIt is exciting to purchase a house for the first time, but this is also a major financial decision. Therefore, potential homebuyers need to make sure they are prepared. What do potential homeowners need to know about purchasing a home for the first time? Learn more about this process below. 

Ask For Help From A Real Estate Agent

First-time home buyers always need to ask for help from a real estate agent. A real estate agent can help someone identify potential issues with a home that might have otherwise been overlooked. A real estate agent can also make sure potential home buyers do not overpay for a home. 

Always Get A Pre-Approval Letter

Potential home buyers also need to get a pre-approval letter from a lender. This is a letter stating that a potential home buyer has been approved for a specific loan amount for that specific property. A pre-approval letter will help someone’s offer appear more competitive, particularly if they are going up against a cash offer. This makes the seller more confident that the offer is not going to fall through on financing. 

Do Not Skip The Inspection

Some home buyers are tempted to skip the inspection because this costs more money. It is critical to get a home inspection done so that everyone is aware of the potential issues with the home. If there is a major repair identified, potential home buyers may ask to have this repaired before purchasing the home. 

Pay Down Other Debt

First-time homebuyers need to pay down as much of their debt as possible before applying for a home loan. This could make it easier to receive financing, and potential homeowners might receive a lower interest rate. Examples of other forms of debt include credit card debt, student loans, and car loans. 

Get The Money In Order

Of course, potential homeowners need to make sure they arrange their money prior to closing, but it is also important to get a down payment put together before looking for a home. Many sellers will ask for proof of funds before accepting an offer. Arranging funds prior to the search process can make this much smoother. This can also help first-time homebuyers compete with cash offers. 

 

07
Oct
By First Rate Financial Group
Mortgage Tips

Exploring Asbestos Prevention And The Top Green Alternatives

Exploring Asbestos Prevention And The Top Green AlternativesHouses across the country come in all shapes and sizes. Some of them are older than others, so they might come with aspects that are a bit outdated. Unfortunately, there are a lot of locations where older homes might still have asbestos in them. While this should be something that comes up on the inspection, buyers need to be aware of these serious issues. If the home was built before 1980, there is a major chance that the building might have asbestos in it. Fortunately, there are alternatives to this type of insulation.

Where Is Asbestos Found In The Home?

There are a number of locations where asbestos might be hiding in the home. For example, asbestos is commonly found in the floors, in the pipes, in popcorn ceilings, and even in the roof. It was used throughout the 20th century because it is thin and strong; however, it can easily be inhaled in the lungs, where it can cause severe lung damage. In some cases, it might even cause mesothelioma, which is a severe respiratory condition that usually has a poor prognosis.

What To Do About Asbestos In The Home

If there is asbestos in the home, or if there are concerns, a home inspector needs to come and take a look at the situation. He or she will be able to recommend the best course of action. If the asbestos is not removed correctly, the fibers could be tossed into the air, where they might harm other people. In many cases, the asbestos needs to be removed by a contractor who has specific training to remove it safely. The most important thing for homeowners to remember is that they need to work with a licensed professional.

Exploring Potential Green Alternatives To Asbestos Insulation

Now, there are new construction practices that use alternatives to asbestos. For example, lcynene, cellulose, and cotton fiber could be used as green alternatives to asbestos. They are a healthy alternative and they could help homeowners reduce their energy expenses. Homeowners need to work with professionals who can help them save money and protect their health when it comes to the insulation in their homes. There are multiple green options available.

20
Aug
By First Rate Financial Group
Mortgage

Financial Preparation: Millennials Are Getting Ready To Buy Homes

Financial Preparation: Millennials Are Getting Ready To Buy HomesIn the current economy, there are a lot of millennials who are thinking about buying a home; however, the price of homes is rising quickly. It can be challenging for millennials to save the money they need to buy a home. When this is combined with other monthly expenses they have, millennials might be financially unprepared to buy a home.

Finding the right house takes patience and discipline, so millennials need to avoid jumping in unprepared. What do millennials need to do to make sure they are ready for the expenses that come with owning a home?

Be Aware Of How Much Money Is Required

The first thing that millennials need to do is make sure they have enough money saved up. If prospective homeowners do not have enough money saved up, they could be denied financing by a lender. Conventional mortgage lenders will ask for 20 percent down to avoid PMI, but it might be possible for homebuyers to get a home for as little as 3.5 percent down from some lenders. If the home costs $250,000, then 3.5 percent down is going to be $8,750. If prospective homebuyers have less than this saved up, they could be denied a loan.

After saving up enough money for the down payment, homebuyers also need to cover closing costs. This could include the inspection, the appraisal, and any fees that come from the closing attorney. Even if millennials have parents and grandparents to help them, they still need to save up an emergency fund to cover any possible repairs that are needed. It is a solid rule of thumb to save up and move at least three to six months of emergency money in a liquidity fund. If this money is not there, it might be better to wait.

Millennials Should Wait For The Right Time Instead Of Jumping In Unprepared

Even though it is a great investment to own a home, it is better to wait for the right time instead of jumping in unprepared. Millennials need to make sure they have enough money saved up for a down payment. Then, they should have an additional two to five percent of the loan’s value saved up to cover closing costs. Finally, homeowners should also have a liquidity fund with three to six months of living expenses set aside.