24
Feb
By First Rate Financial Group
Mortgage

The Top Reasons To Stop Renting And Buy Today

The Top Reasons To Stop Renting And Buy TodayBuying a house can be expensive, and it can take a long time to save up money for a down payment; however, it might be time for you to stop renting and buy your own place. What are some of the top reasons why it might be time to put down some roots?

Your Rent Is Going Up

The reality is that your rent will go up with time. Every time you renew your lease, it can be frustrating to see that rent check continue to increase. If you are tired of your rent going up, get a mortgage. You could lock in the same payment for 30 years.

You Are Going To Stay Put For A While

Are you planning on staying put for a while? If so, you don’t have to worry about buying a selling a house too quickly. Go ahead and purchase a house! You are going to be here for a while anyway, so you might as well get a stable mortgage.

You Don’t Want To Pay Someone Else’s Mortgage

Did you know that you might be paying someone else’s mortgage with your rent check? Why not use that money to pay off your own mortgage? After all, there’s no reason why you should feel obligated to use your money to pay down someone else’s home loan.

You Want To Build Wealth

If you want to build wealth for yourself and your family, one of the best ways to do so is to own property. Your property should go up in value over time, and 100 percent of the capital appreciation is yours because the value of your loan will remain the same, regardless of the capital appreciation of your house. If you want to build wealth, owning property is one of the best ways to do so.

Stop Renting And Buy Today

Clearly, there are plenty of reasons why you might want to stop renting and consider buying a house. You need to work with an expert who can help you find the right loan option to meet your needs. There are attractive opportunities out there, so if you are ready to build financial wealth, consider buying a house today.

23
Feb
By First Rate Financial Group
Mortgage

What Items Can Change My Mortgage Pre-Approval Status?

What is a mortgage pre-approvalWhen you are purchasing a home, your lender may recommend you obtain a mortgage pre-approval before you find the home of your dreams. There are some benefits to being pre-approved before you find a home, but oftentimes, people confuse pre-qualifications with pre-approvals.

So the question many buyers have is what exactly is a mortgage pre-approval? In a nutshell, it’s when the lender provides you (the buyer) with a letter stating that your mortgage will be granted up to a specific dollar amount.

What Do I Need For Pre-Approval?

In order to obtain a pre-approval for your home purchase, you will have to provide your lender all of the same information you would need to show for qualifying for a mortgage. This means providing tax returns, bank statements and other documents that prove your net worth, how much you have saved for your down payment and your current obligations.

What Conditions Are Attached to a Pre-Approval?

Generally speaking, a pre-approval does have some caveats attached to it. Typically, you can expect to see some of the following clauses in a pre-approval letter:

  • Interest rate changes – a pre-approval is done based on current interest rates. When rates increase, your borrowing power may decrease
  • Property passes valuation and inspection – your lender will require the property you ultimately purchase to come in with a proper appraisal and meet all inspection requirements
  • Credit check requirements – regardless of whether it’s been a week or six months since you were pre-approved, your lender will require a new credit report. Changes in your credit report could negate the pre-approval
  • Changes in jobs/assets – after a pre-approval is received, a change in your employment status or any substantial assets may result in the pre-approval becoming worthless

What Items Can Change My Mortgage Pre-Approval Status?

One of the major issues that affect some borrowers as they are preparing to purchase their new home is financing large ticket items before the home purchase loan is completely funded.  Even if you are buying new furniture or other items for the home, it’s best to wait until after your home loan is entirely complete before purchasing any of these new items.

Work changes can also drasitically affect your pre-approval status.  Make sure your loan professional is well aware of any changes well in advance of them happening in order to plan effectively.  There are ways to work with job changes but it is a delicate matter during the mortgage underwriting process.

Getting pre-approved for a home mortgage may allow you more negotiation power with sellers and may help streamline the entire loan process. It is however important to keep in mind there are still things that may have a negative impact on actually getting the loan.

It is important to make sure you keep in contact with the lender, especially if interest rates increase or your employment status changes after you are pre-approved.

22
Feb
By First Rate Financial Group
Mortgage

The Job Of A Mortgage Loan Originator

The Job Of A Mortgage Loan OriginatorDo you want to purchase a house? If you cannot pay cash for your house, you will need to apply for a mortgage. A mortgage loan originator can help you find the right mortgage to meet your needs. What are some of the job duties of a mortgage loan originator, and how can they help you with the financing process?

Provide You With a Budget

The house-hunting process can be exciting, but it can also be a bit stressful. How do you know if you can afford your dream house? This is one of the first jobs of a mortgage loan originator. A mortgage loan originator can help you review your financial statements and provide you with a limit against which you can borrow. Now that you know exactly how much money you can take out in the form of a mortgage, you will have an easier time narrowing down your options.

Go Through The Loan Options With You

A mortgage loan originator could also help you review your loan options with you. For example, do you think a fixed-rate mortgage is better for you? Or, do you think an adjustable-rate mortgage is better for you? There are even some home buyers who might be interested in a loan that comes with a balloon payment on the back end. A mortgage loan originator can help you evaluate the benefits and drawbacks of each option.

Ensure All Rules And Regulations Are Followed

Finally, one of the most important jobs of a mortgage loan originator is to ensure that all rules and regulations are followed. There are strict documentation regulations that all lenders need to follow to ensure their applicants are financially healthy enough to qualify for a mortgage. A mortgage loan originator will make sure that you do not take out a loan that you cannot afford. 

Work With A Mortgage Loan Originator To Find The Right Loan

If you need to take out a mortgage for your house, you need to work with a mortgage loan originator. Keep in mind that this loan originator is there to answer your questions, so make sure you have a comprehensive understanding of the process before you move forward. That way, you can find the right loan package to meet your needs.