How to Avoid the 5 Most Common Mistakes Made When
Getting a Home Loan.
1. Many people just focus on the interest rate and not the total cost involved in the lending transaction. Your interest rate is very important, but more important is what your total cost will be to borrow the money over the anticipated period of time you plan to have the loan, and make sure that you take into account how long you expect to have your loan.
2. Most borrowers simply get a 30-year loan, when they will probably stay in a home only 3 - 6 years. For the exact same house payment, many borrowers could buy a $5,000 to $10,000 more expensive home, or save hundreds of dollars each year just by matching their home with their home ownership plan.
3. Many borrowers fail to ask their lender about the rate lock-in process and usually never get a signed lock-in agreement from their lender. Interest can dramatically change in just hours, so it is important to discuss the lock-in process and make sure
your lender provides a written lock agreement.
4. Most borrowers do not realize they have a choice between title companies and closing agents, and that the fees charged by the title companies are negotiable. Usually $750.00 to as much as $2,000.00 of a borrower’s closing costs are charged by the title insurance company and the closing agent. By comparing quotes from reputable title companies, most borrowers can save hundreds of dollars. But keep in mind that it is important to use only the best title company and closing agents.
5. Most people strive to have at least a 20% down payment when they go to buy a home, either because of the bank requirements or preconceived ideas about how much they need to buy a home. But that may not be what is best for your wallet. Whether you need to put 5% or 30% down, can be calculated with a simple equation.
How to Know When It Makes Sense to Refinance and When
It Doesn't.
Whether or not it is worthwhile to refinance depends on many variables. The questions you need to ask yourself are, first, how long will you be in your home, second, how does the interest rate you’re paying today compare with market rates.
Our Mortgage experts are available to help you answer these questions and custom tailor a package that fits your needs. After meeting with our experts, some people have learned that a 15 year mortgage at current rates, made little or no difference in their payment. This allows you to build equity and pay off your home much quicker. Others have experienced large savings in their monthly payments, which can be used for savings or paying off other bills.
When Either Buying or Selling Why You Should Ask a
Lender to Introduce You to a Reputable Real Estate Agent.
If you are planning to enter the real estate marketplace by either buying or selling property, you will probably come into contact with and use a real estate agent. Mortgage lenders work with real estate agents every day and are usually an excellent source for helping you to choose an agent that will be best suited for your needs. By asking a reputable lender which agents they would recommend for buying or selling property, you will get reliable information from a third party. High volume mortgage lenders are familiar with the top Realtors in your area, and if you are going to pay commission, you should work with the best.
Northern Illinois Mortgage works with the top real estate agents in Tampa Bay and would be happy to recommend an agent that suits your needs.
How to Buy a Home with Less Than $5,000 in Savings.
The opportunity to buy a home is open to many people who do not realize that they can afford a home of their choice, with little cash savings and reasonable monthly payments. With just $4,100, most buyers can purchase a home priced as high as $92,000. With
just $3,250, you can buy home priced at $75,000. And with as little as $1,000, you can buy a home priced at $50,000. These loan programs are available with great interest rates and properties anywhere you like.
Northern Illinois Mortgage can provide you with details on a variety of loan programs.
How to Pre-Qualify with a Mortgage Lender for a Home Loan
without Any Cost or Obligation.
Did you know that being qualified by a Mortgage Lender can not only save you money but it may also get you more home for your money? By having a Mortgage Lender analyze your financial situation before you go home shopping you will be able to shop for homes that you know you can buy. And with the variety of home loans available today you may be able to buy a lot more house for your money. A good Mortgage Lender should be able to pre-approve you for a home loan quickly. When you do find the right house, chances are you will be competing with other buyers to get the home. If the seller knows that you have been pre-approved for a loan you will have an advantage.
Ten Things Everyone Should Do Prior to Putting Their
Home up for Sale.
First impressions are very important; your front lawn and other landscaping should be neatly trimmed and mowed. The walk should be swept. The front door should be clean and fresh looking, the doorbell should be in working condition.
A minor investment in paint and wallpaper will pay bigger dividends to you in the form of a better price and a quicker sale.
Open the drapes and curtains. Clean the windows so that a prospect can see how bright and cheerful your house is.
Make sure leaking faucets are repaired; dripping water suggests faulty or worn-out plumbing. Rust-stained or discolored sinks are also warning signs for major repair bills. So make sure sinks are properly cleaned.
The majority of people looking for homes look for big closets. You can make your closets look bigger by having them clean, neat and well organized. Get rid of old clothes and cartons that take away from the spacious look.
Make sure the bathrooms are sparkling. Clean stained sinks and bowls and repair any damage or discolored caulking around bathtubs and showers. Be sure towels and area rugs are bright and make certain all light fixtures and bulbs work.
Keep the bedrooms bright and cheerful by opening the drapes. Remove excess furniture to avoid a crowded look, use colorful bed linens and spreads.
When showing your home at night, turn on all the exterior and interior lights.
Keep all pets out of the way and not underfoot.
Use a professional to help you sell your home. A good real estate agent can save you time and hassles.
The Five Most Important Things to Consider if You Are Planning to
Borrow over $200,000.
1. Buyers who plan on borrowing over $200,000 typically are put into the Jumbo Loan category. It is very important to understand all the lending options for larger loans before selecting a lender.
2. For loan amounts under $300,000, it may be possible for you to still get a non-jumbo interest rate and eliminate Private Mortgage Insurance. This can save as much as 1% on your interest rate equivalent and thousands of dollars over the life of your loan.
3. Make sure you look at a variety of loan programs and ask your lender to provide a loan comparison analysis so you can make an intelligent decision that fits your financial game plan.
4. By shopping the best rates on your title insurance and closing fees, you can usually save at least $500 off the standard rate.
5. Make sure that your Lender has plenty of experience handling larger loans. Loans of over $200,000 typically involve a different set of guidelines than smaller loans. An inexperienced Jumbo Lender can cost you money and waste your time.
Northern Illinois Mortgage handles hundreds of $200,000 plus loans every year and can give you the experience and attention a large loan requires.
How to Get Your FHA or Conventional Loan Approved in
Five Days or Less.
Getting your home loan approved does not have to take several weeks or months. You can have your loan approved in five days or less and still get a great interest rate.
Northern Illinois Mortgage has a checklist that will help you qualify for an approval in just five days. If you’re interested in receiving the checklist, please press # and then leave your name and number. It will be our pleasure to return your call promptly.
