28
Feb
By support
Home Mortgage Tips

3 Mortgage Scams to Be Aware of and How to Protect Yourself From Them

3 Mortgage Scams to Be Aware of and How to Protect Yourself From ThemIt’s easy to be enthusiastic and excited about the prospect of home ownership, but it’s important to be aware that there are many ways potential buyers can be taken advantage of. From courses for homeowners to companies trying to make a quick buck, there are many things to avoid. If you’re on the market for a home and are trying to find the mortgage that will best benefit you, here are some of the tricks you may want to be wary of.

Forgetting About The Finances

The amount of home you can afford and will be approved for largely comes down to your debt-to-income ratio and your credit history, so if you’re not getting the tough questions about money, this may be a bad sign. While it’s not the lender’s job to make a budget for you and decide your month-to-month expenses, if they’re embellishing your financial well-being and presuming you can take on more house, you may want to look into another lender.

High Loan Costs

Since a mortgage generally requires the homebuyer to borrow money, there is an associated interest rate on the loan that is a percentage of the total price. While this is the cost of doing business, rates that exceed more than 5% should be questioned to determine what they’re made up of. While there can be a legitimate reason for a higher cost, it’s important to understand your options and costs with a variety of lenders so you can make an informed, financially-wise decision.

Mortgage Offers For Everyone

For those who have a poor credit history and do not have any savings, the idea of home ownership can seem like a pipe dream. Unfortunately, there are lenders that are willing to capitalize on this hope and will feed people – particularly those at high risk – the idea that they have the ability to buy. Instead of relying on a company that may take advantage and charge high interest rates, research the lender you’re dealing with to ensure they’re known on the market and have your best interests in mind.

The ultimate dream for many people is to own a home of their own, but it’s important to be aware of your mortgage options and your financial stability so you can avoid a bad experience. If you’re currently on the market for a home, you may want to contact one of our mortgage professionals for more information.

24
Feb
By support
Home Mortgage Tips

If Your Home Is Destroyed in a Natural Disaster, What Happens to Your Mortgage?

If Your Home Is Destroyed in a Natural Disaster, What Happens to Your Mortgage? When you’ve been in your home for a while and have established a certain amount of equity, it can be a good feeling to know that you have an investment you can count on. However, with changing weather patterns you may be afraid of a natural disaster striking and what it could mean for your financial well-being. If you’re curious about how this can impact your mortgage, here are a few things to consider.

Determine Your Protection

The thought of having your home adversely impacted by a natural disaster is bad, but it can be even worse if the proper precautions haven’t been taken to insure your house against its wrath. While there are certain calamities that will be less likely in your area and may be difficult to get insurance for, if you live in an area prone to floods or earthquakes, you should have protection against their occurrence. In all likelihood, if you’ve taken the proper precautions when taking on home insurance, your home should be prepared for what nature unleashes.

Contact Your Insurance Company

Whether you’re certain that your home is covered in the event of a natural disaster or not, it’s important to contact your insurance company as soon as disaster occurs so that you can make the necessary claim. This means that you’ll need to be able to explain what happened, the extent of the damage and provide photographic evidence of your claim so that you have the evidence to back it up. Once the worst has occurred, you’ll want to file a claim with the company as soon as you can to ensure you’ll get back what you’ve invested.

What Does Homeowner’s Insurance Cover?

Generally speaking, there are a number of natural disasters that are included under homeowner’s insurance including tornadoes, hurricanes and wildfires. Insurance for disasters like earthquakes, floods and tsunamis can be purchased separately, while the occurrence of landslides and avalanches may be covered separately. It’s important when purchasing a home that you are covered against natural disasters that can occur in the area so your biggest investment is not at risk.

The occurrence of a natural disaster is stressful enough without having to worry about the possibility of your insurance not covering the damage. If you are currently looking into homeowner’s insurance and are considering a home purchase, contact your trusted mortgage professionals for more information.

22
Feb
By support
Home Mortgage Tips

Did You Know: 3 Reasons Why Mortgage Pre-approval Should Be Your Very First Step

Did You Know: 3 Reasons Why Mortgage Pre-approval Should Be Your Very First StepThere are so many details involved in the mortgage process that you may not be aware of what pre-approval is if you’ve just entered the market. However, pre-approval assesses your ability to make monthly mortgage payments and can be an important first step in the home-buying process. If you’re currently contemplating a home purchase, here’s why you may want to consider pre-approval first.

Improved Agent Attention

It may be a lesser-known fact, but it’s often the case that many real estate agents will not spend the time or put significant effort into a homebuyer that has not been pre-approved for a mortgage. While a good real estate agent will assist you in finding a home that’s right for you, if you haven’t gone through the necessary process of determining if you’ll be approved, they may think it’s not worth their time to show you houses you may not be eligible to buy.

A Benefit For Home Sellers

In the event that you happen to come across a home that you want to purchase and make an offer prior to pre-approval, there’s a chance the buyer will not waste their time considering it. Because the pre-approval process can determine errors in your credit history and there’s a wait involved, many home sellers will not want to be held up by this process to sell their home. As a pre-approval can reveal errors and bump up your credit score, it can also be of greater benefit for you to have an accurate number going into the home purchase.

Determines Your Financial Health

While a pre-approval is not a sure sign that your mortgage application will be approved, it can provide a detailed look at your financial health. This means that if you happen to have a less flattering credit history than expected, you can go back to the drawing board, saving more money and making payments, to try and bump up your credit. While this isn’t necessarily enticing for the person who is ready to buy, it can be a benefit for the type of home you’ll be approved for.

It’s common to want to get out into the market and find the perfect house at the right price, but pre-approval is an important process that will help you determine the house you can afford. If you’re currently on the market for a new home, contact your trusted mortgage professionals for more information.