Set the realistic expectation from day 1. The foundation to being ready to buy a home is outlined below. Now ask yourself, ARE YOU READY? If any of these topics below interest you, contact me directly (914) 486–0212 for your personalized financial review and options.
Pre-Qualification vs. Pre-Approval.
What Lawyer should you use.
First time home buyer options including down payment options
Rates.. Are we talking about rates?
Well, Pre-Qualifications aren’t worth the paper they are written on. Here is just how boring and basic a “pre-qual” is. What is your first name? What is your income? What is your credit score? How much money do you have? GREAT! You are pre-qualified for $500,000 bucks.
NOW, here is why you skip the “pre-qual” and the do the pre-approval. My team and I first start off with who referred you, what you are looking to buy, and in what area. This information helps us piece the puzzles together to best advise you, before getting into your personal details, to provide you a full education. Once we have this information discovered, we check your credit, to make sure we are quoting you accurate rate quotes we can guarantee to deliver on. We then request your 2 most recent years tax returns, 2 most recent years w2s, 2 most recent pay stubs, and previous month bank statements. We confirm everything you tell us verbally, with facts, and issue your approval. Since we are a direct lender, once we issue you this approval, the process is 90% complete. Work hard up front, get us what we need, and go to bed at night during your home search knowing you will be APPROVED!
Your lawyer should be a personal referral or recommendation from an industry professional. Why? Accountability and team work. It is a proven fact that teams that practice more, operate more efficiently. People that do business consistently together, have a system, and usually a discount in place, for personal referrals. Find 2–3 recommendations, speak to them, and commit!
Closing costs vary based on state, property type, loan amount, and other variables. To get your accurate estimate, contact us for some advice. Do not get lied to or bait and switched.
There are first time home buyer options. The best option is the FHA mortgage for a 1–4 family home, with 3.5% down payment. Take the purchase price, multiply it by 3.5% and that is your minimum down payment requirement. (Loan limits and credit restrictions apply). Gifts from parents and family can be used for down payments!
Rates — Important, but not the biggest factor in deciding what lender is right for you. Rates are offered based on property type, occupancy (Are you living there or is it an investment), credit score, down payment, debt to income ratio and other factors surrounding risk. Every bank has rates within .125% of each other, but it is important to compare apples to apples, as rates change on a daily basis and no mortgage is the exact same.
Your Mortgage amount you qualify for has many variables. My team first starts out with your budget. What can you afford or wish to pay every month? We back into your mortgage amount based on your comfort levels of loan repayment. It isn’t about what you can qualify for, it is about what YOU want to pay, and can comfortably afford, while still maintaining the quality of life you wish to live. There are creative ways to get your mortgage payment lower, with mortgage insurance buy out programs, and depending on how long you anticipate keeping a property for, maybe a different type of loan to allow you to afford more “home” with a “less payment”.
Keep it Simple. Rates are going to go up over time, and no one has ever lost money on real estate if they held out long enough to see the rebounds. Prices will always go up and down, they fluctuate. But rates, rates are still at a reasonably all time low. If you do not buy a home now, this time next year, the house will be worth more money, and rates will be slightly higher. I personally believe values continue to rise in the metro-new york area, and I believe rates settle in between the 3.75% — 4.5% 30 year fixed rate levels.
If you like what I have to say, or are interested in your options, please like and share this article. It is important to get real information, from experienced and educated sources. I personally own real estate, flip real estate, and lend millions of dollars annually in the mortgage market.
NMLS # 69987
(914) 486 -0212
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