I’ll be honest with you – going into this Homebuying Adventure, I knew next to nothing about mortgages and what they entailed. Pre-qualification, pre-approval, fixed rate, APR … it was all Greek to me. What I did know was that I had friends who were paying mortgages that were less than my monthly rent and I wanted to be a member of that club. But to be granted access, I needed to bite the bullet, push aside my fears and meet with Mollie Bergstrom, my Allen Tate Mortgage consultant.
After sitting down with Maggie (my Realtor), Amy and I each had a better idea of everything we needed to put on our “to-do” lists. The most important of these was a meeting with Mollie from Allen Tate Mortgage. And being an enthusiastic person by nature, I couldn’t wait to get my hands on some listings and see what could very well become my first home.
There is little question that foreclosures are a major part of the real estate market today. One of the challenges that comes along with buying a foreclosure can be the condition of the property. If the property is damaged, neglected or just plain outdated, you may want to consider a renovation loan. Here are some simple steps when considering such a loan:
Just imagine you have found the perfect house, started a new job and are ready to move forward with your life. Feels pretty good doesn’t it?
Now imagine that you have everything lined up except for one detail, a detail that is perhaps the most important of all. Prior to signing on the dotted line and happily moving forward, make sure that you take the time to sit down and go over the details with your Mortgage consultant.
Everyone has heard that mortgage financing is more difficult to obtain these days. What people may not be aware of, however, is the “why” behind the time it takes to get a loan approved and closed in the mortgage industry today.
Typically, your offer to purchase contract is written for a 30-day closing. In most cases, you would have already spoken to your Mortgage Consultant/Loan Officer (MC/LO) to handle the prequalification for your loan. Well, prequalification and full loan applications are two different things.
The most important thing you can do following prequalification is to meet with your MC/LO to complete the formal loan application. Make sure to have with you all your required documentation of income, employment and assets. In some cases you will also need to provide information on credit such as explanations for any late payments, inquiries, etc.
Recently rates reached record lows that have not been seen since the 1950’s. Many people may think that they either have taken advantage of refinancing or that it may not make sense for them at this time. If you belong to the latter half of this group, consider this: if you have a 30 year fixed rate in the high 6 percent range now is a great time to refinance into a 15 year fixed. Depending on your equity in the property and your credit score, you may find that you can refinance into a 15 year fixed with a payment that is not much more than what you are paying now.
The advantages to this are simple, paying a 15 year fixed rate mortgage builds your equity much more quickly and allows you to pay off your home much sooner…