Monthly Archives: November 2014

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26 11, 2014

What to look for when purchasing a home

November 26th, 2014|Blog|

Dual-income-family-buying-a-home

Buying a home is a huge decision. To help you out, here are five things to keep in mind when purchasing a home.

 

1. What’s the condition?

Repairs can be expensive when buying a home. Decide how much you want to commit to a home that could use some fixing up. Painting a room or replacing carpet isn’t that big of a deal, but remodeling an entire kitchen can be a serious project to take on.

 

2. What’s the upkeep?

Perks such as large lots, beautifully landscaped gardens, pools, fish ponds and horse barns can all seem amazing when you’re looking to buy, but do you have the time and money to maintain them? If you know you won’t be able to take care of features likes these on your own, are you willing to pay someone else to do it? Make sure you carefully think about the upkeep involved with a home before you sign on the dotted line.

 

 3. What’s the location like?

Is the neighborhood desirable? It’s a no brainer that purchasing a home in a great neighborhood has lots of benefits. If you’re planning on selling your home someday, desirable locations can also boost your home’s property value.

 

4. What are the restrictions?

If you purchase a home in an area that is managed by a homeowner’s association, make sure you are familiar with their rules and restrictions before you buy the home. Some HOA’s have strict guidelines when it comes to the appearance of your home and yard, and it’s important to find these things out before you move in.

 

 5. What are the challenges that might come up in the future?

Are you planning on staying in the home for a while? If so, will […]

21 11, 2014

What if you can’t get Pre-Approved for a loan?

November 21st, 2014|Blog|

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The excitement of buying a home can quickly end if you are denied a mortgage pre-approval. Just because you weren’t pre-approved doesn’t mean you should give up on your dream of homeownership. Here are five things you can do if you can’t get pre-approved for a mortgage loan.

 

1. Find out why

If you didn’t get pre-approved for a loan ask your lender why. Most lenders are helpful and will provide you with an explanation for the rejection and give you advice on how to proceed. There are many reasons why you may not have qualified, such as a low credit score, inadequate income, and inconsistent employment history. If you take the advice your lender offers and make the necessary improvements, you might qualify for financing in the future.

 

2. Add points to your credit score

Credit score has a big impact when applying for a loan. If you’re turned down for a mortgage due to a low credit score, take the necessary steps to improve your credit then apply again. Paying off a credit card and paying your bills on time over the next 6 to 12 months are both things you can do to help build your credit score.

 

3. Build your savings

When you apply for a home loan, you will be asked to provide the lender with copies of your bank statements. This is done to ensure you have enough money saved up for your down payment and closing costs. Additionally, the lender may also want to see a 2 to 3-month cash reserve after paying mortgage related expenses. If you don’t have enough money left over after paying closing costs and the down payment, the lender might recommend that you wait to buy a home until you’ve saved more money.

 

4. Increase your income

If […]

12 11, 2014

Mortgage 101: What is Escrow?

November 12th, 2014|Blog, Mortgage 101|

Escrow

You may not be familiar with the word escrow now, but once you begin the buying process it’s a term you will hear frequently. Escrow is used by mortgage companies to pay property taxes and insurance and is also used from contract to closing. Basically, escrow is what happens when money is deposited by one person with a neutral third party so it can be given to another party upon completion of an event.

In the home buying process, after you find the right home and sign a purchase agreement, you will typically be asked to provide an earnest money deposit to go towards the transaction. The deposit will go into an escrow account, and no funds will be dispersed until all terms in the purchase agreement are satisfied. Escrow protects all parties involved. The escrow account will be “closed” after all of the conditions have been met.

Another escrow account is usually created after you’ve closed on your home. This account is used to make payments on your behalf for real estate taxes and homeowners insurance. Escrow funds are collected as part of your monthly mortgage payment. The advantage of using an escrow account is that it ensures these bills are paid on time and in full, without you having to budget for them separately.

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