Mortgage Archives – Page 112 of 232

12

Oct

Mortgage

The Timeline: Prequalifying To Closing

The Timeline: Prequalifying To Closing Even though purchasing a new home can be exciting, it can also be stressful. There are a lot of tasks that need to be completed between qualifying for a mortgage and receiving the necessary funds. Therefore, potential homeowners need to understand the timeline so they make sure they are on track to meet their closing dates. What are a few examples of important milestones that have to be accomplished?

Make An Offer On A Home

After getting pre-qualified for a mortgage, the next step is to make an offer on the right house. An offer on a home has a lot of information. This includes the offer price, the size of the down payment, the name of the closing agent, a targeted closing date, and any closing costs that the buyer wants the seller to pay. If the offer is accepted, it is time to move on to the next step.

Review The Disclosures On The Mortgage

After having an accepted offer, buyers need to get a mortgage locked in. Important components of a mortgage include the interest rate, the monthly payment, the closing costs, and any prepayment items. A lot of this can be negotiated with the lender, and this mortgage needs to be approved prior to closing.

Complete The Home Inspection And Appraisal

Buyers will also need to conduct a home inspection and appraisal. In many situations, the lender will set up the appraisal; however, homebuyers need to work with a real estate agent to get a home inspection set up. That way, if there are any major repairs, they can be addressed.

Renegotiate If Necessary

Based on the appraisal and the inspection, potential home buyers might want to renegotiate the price of the house. Even though it will not necessarily change, homebuyers might want to ask the seller to cover additional repairs that were discovered on the inspection.

Close On The Home

Finally, after all of this is done, it is time to close on the home. The lender will be responsible for wiring the funds to an attorney, who will disburse the funds to all appropriate parties. From start to finish, this process usually takes about a month.

08

Oct

By First Rate Financial Group

Home Mortgage Tips

Baby on the Way? Helpful Advice for Managing a Mortgage With Only One Parent Working

Baby on the Way? Helpful Advice for Managing a Mortgage With Only One Parent Working If you’re dealing with paying off your mortgage and going down to a one-income family, it can be complicated to determine how to financially swing it. However, becoming a parent and managing a mortgage are quite common nowadays with maternity leave and the modern family. While managing a mortgage on just one salary can be a challenge, there are a few simple things you can do to make it work.

Buy The House You Can Afford

It may sound much too simple, but many people get so wrapped up in the concept of a dream home that they forget about what makes the cost of it manageable from month to month. While affordability is important, it becomes even more important when you’re dealing with one income, so ensure you have a monthly payment that you can pay off with one salary. Even if interest rates shift or an emergency comes up, you’ll still be able to handle your monthly payment.

Create A Budget

Budget may very well be the dreaded ‘b’ word when it comes to finances, but there is nothing that’s going to be a better friend to you in managing a one-income mortgage than sticking to it. Instead of leaving your expenses to chance, make sure that you’ve set aside the appropriate funds for your mortgage, groceries, car payments or transportation, necessities and any extras that go along with living. Keep in mind that while starting a budget is good, you may want to schedule weekly meetings to ensure you’re sticking to it.

Maintain An Emergency Fund

Since it may be a struggle to pay off your mortgage and pay for day-to-day life on one salary, it’s important that you’re prepared for any emergencies that come up. Because these will be the things that arise that can sink your budget, like your car breaking down or a window needing to be replaced, you should be setting aside money each month to cover the incidentals. Tossing aside your budget for an emergency can have serious financial implications, so be prepared for what can arise.

It goes without saying that managing a mortgage on one income can be a challenge in this day and age, but this is a situation that many families find themselves in when they decide to have children. If you’re currently trying to determine how you’ll be able to manage your mortgage on one income, contact your trusted mortgage professionals for more information.

05

Oct

By First Rate Financial Group

Mortgage

The Top Benefits Of Having Mortgage Debt

The vast majority of people need to take out a loan to purchase a home. While there are many forms of debt that people would rather avoid, some types of debt can actually be a positive. This includes mortgage debt. What are a few of the top benefits of having mortgage debt?

Access To Extra Liquidity

One of the biggest benefits of having mortgage debt is that homeowners will have access to more liquid cash. If someone spends all of their money buying a house in cash, they might not have anything left over to cover other expenses. Examples include deaths in the family, medical bills, and repairs on cars and the house itself. Many people like to have access to extra liquid cash, and they are willing to take out a mortgage to do it.

The Payments Do Not Change

It is entirely possible that someone’s income will go up during the life of the mortgage. Even if someone’s income goes up, the size of the mortgage payments will not change. The payments might stay the same size for 30 years, which could make the house more affordable. The same cannot be said of rent payments, which usually go up every time the contract is renewed.

Access To Tax Deductions

Homeowners have access to a significant tax deduction. This comes in the form of mortgage interest. Even though it is important for everyone to meet with a trained tax professional to go over their taxes, the interest attached to a mortgage is usually tax-deductible. This can be a significant tax advantage for homeowners.

A Better Credit Score

It is critical for all homeowners to make sure they make their mortgage payments on time. In doing so, the homeowner’s credit score will go up. People might not think that their credit scores matter much after taking out a home loan, but this could make a difference when applying for car loans or future home loans. Therefore, having a long track record of on-time mortgage payments can make a major difference.

Take Advantage Of Mortgage Debt

These are a few of the top benefits of having mortgage debt. All homeowners need to leverage these benefits for their financial gain down the road.