Tips For Potential Home Buyers

While seeing interest rates at an all time low can make you want to go out and buy a house as soon as you can, there are some tips we want to give you before making such a big decision!

TIPS

1. Hows your credit?

Mortgage lenders like to see a good credit history. Its unrealistic to think that majority of the people don't have debt, but its how you handle your debt. If you keep making a dent in your debts and manage your expenses well it shows lenders that you can handle taking on another payment. We even advise people if they have the means to pay more than the monthly payment. Paying a little more each month can go a long way. 

2. Save for your down-payment!

While many lenders prefer at least 20% down its not firm. You can bring as little as 4% up to as much as you have. Our advice to you is that the more the better. If you want to build your equity in a reasonable amount of time put some cash away. THE MORE THE BETTER. It can never hurt to have more money. 

3. Get Pre-Approved

Getting pre approved sets up a realistic budget for you. You don't want to look at homes out of your range and get your heart stuck on something you are unable to afford. Go get pre approved, know how much you are qualified to borrow, and only look at houses you can afford. You are saving yourself the disappointment when you fall in love with a home that costs more than 3 times your gross annual income.

4. Closing Costs
While you do need a good amount for the down-payment you ALSO need money for closing costs. Many people don't realize this key part of buying a home. While you can shop for lower closing cost rates, some are fixed. Always remember "cash to close". 

5.Thinking ahead

Many home buyers think that when trying to buy a house the only thing that matters is saving that money for the down payment. The thing they tend to forget is the costs that come with that house. Taxes, insurance, home ownership fees, and maintenance fees. You want to save up at least 3-6 months of living expenses before purchasing your home. People who don't think about these hidden costs tend to break the bank because they drain their account with buying the home.You don't want to start off your home ownership in debt. 

Think big picture when buying a home. Don't let the excitement take over. SAVE. 

Two Reasons To Refinance

The interest rates are at a low right now and a lot of home owners are wondering, should we be looking into refinancing? If this is you and you are wondering why should I refinance, here are two reasons why refinancing could pay off for you. 

1. Shorten the term of your loan

Many people think that with refinancing the payments to shorten your loan will be way to overwhelming and expensive. Actually though, with the interest rates so low right now shortening your loan might not be as expensive as you thought. Say you had a 30 year mortgage and want to cut it in half to a 15 year mortgage. Many people can do that without the payment every month sky rocketing. By cutting your mortgage in half will give you 15 years of mortgage payments to spend elsewhere. What would you do with that money?? 

2. Lower Interest Rate: 

Like I said before, rates are low right now. Before when you originally set your mortgage up rates could've been more than double than what they are now. By taking the time to look into rates right now you could save yourself thousands of dollars in the long run. Lower rate= less money you are owing. Yes, the paper work and process is tedious and takes some time but, in the end you save money. 


Ultimately you are the only person who knows if refinancing is for you. Set goals before even looking into refinancing. Do you want low low payments, do you want to cut your time more than half, or do you want a mix of both? Also if moving is in your near future maybe refinancing is not the smartest move. Take your time to research about refinancing and browse around different providers. 


Just think... what would you want to do with thousands you save?