Monthly Archives: February 2016

//February
25 02, 2016

Tips for buying a home this spring

February 25th, 2016|Blog, Buying a home, Home Finances, Tips & Advice|

iStock_000085534103_Small

 

 

 

 

 

 

 

 

 

 

It is not a secret that spring is a great time to put your home on the market. Prospective homebuyers can look at homes and condos without having to worry about trudging through snow or bad weather. Plus families search for homes during this time so they can move in the summer without disrupting the school year.

A seller’s market means that buyers have to be smart and prepared if they want to get the right house at the right price. Agents suggest that prospective buyers start by looking at home online, narrowing down neighborhood choices and deciding between must-have and preferred features.

Here are tips for buying a home this spring:

• Get mortgage prequalification or preapproval before you start looking. As with any purchase, you need to know what you can afford. If you do this before you start shopping it will help narrow down your options and makes your offer more competitive.
• Do your research. Use the internet and different apps to research neighborhood and asking prices for the type of home you want.
• Have the documents ready. In order to obtain a mortgage you will need documentation to complete the qualification process. Check out the full list of what is needed on our website: http://firstohiohome.com/purchase-home/mortgage-checklists/
• Be ready to move fast. A well-located house in good condition and priced right will sell quickly; it can even be the first day it goes on the market. A buyer needs to be ready to commit if they find a home they like because they risk the chance of losing it if they don’t. One of the things First Ohio Home Finance is known for is how quickly they work for their customers.
• Understand that no house is perfect. Making your offer contingent on a home […]

19 02, 2016

When does Buying a home top Renting?

February 19th, 2016|Uncategorized|

iStock_000059741556_Small

 

 

 

 

 

 

 

 

 

 

 

 

Every month when that rent payment is due it can feel like you are just throwing money down the drain. This can get pretty discouraging after a while, it is important to know when buying a home tops renting. Let’s discuss a few times it would be better to buy than rent:

  1. If you value owning assets. Every payment that you make on a mortgage increases your equity in your home and moves you closer to owning it outright. Homes can also appreciate in value, increasing your equity automatically. If you are looking for a way to invest your money even as you spend it on housing, buying can be a good move. Especially now with the mortgage rates being as low as they are.
  2. How long do you plan to stay? This is a very important thing to consider when deciding to buy over rent. Do you love where you are at? Or have you always been dreaming of living somewhere else you are just waiting on the right time. If you can see yourself living in the same place for more than 9-10 years, then buying would be the best option because the initial fees can be spread out over a longer period of time.
  3. You have the money. Buying a home is a financial commitment, so you have to be prepared for that. When buying a home, you will need enough money upfront for a down payment, as well as to cover closing fees. A healthy place to start is 20% of the home’s value, but you may need a minimum of at least 3% to 5%. On a $200,000 home, a 20% payment is $40,000, while 5% is $10,000. An addition, you have to factor in transaction costs, which can be […]
12 02, 2016

What is a Conventional Mortgage?

February 12th, 2016|Uncategorized|

financial investment of purchasing home

If you are currently in the market for a new home you probably have already started doing research on the different types of mortgages. Whether you have a large amount to put down or just a little bit saved up there are always options. Let’s see if the conventional mortgage is right for you.

A conventional mortgage refers to a loan that is not insured or guaranteed by the federal government. A conventional, or conforming, mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have a fixed or adjustable rate.  These loans are offered by private entities such as banks, credit unions, private lenders and savings institutions. This is why conventional loans are only given to those in good financial standing.

The terms of a conventional loan are usually 15, 20 or 30 years. If you want to obtain a conventional loan you will need to have a larger down payment than for an FHA loan.

A conventional mortgage is ideal for the borrower with good to excellent credit. In addition to requiring higher credit scores, there are minimum down payments and lower debt-to income ratios required to qualify. However, conventional mortgages generally have fewer hurdles than FHA and VA loans and are usually processed faster.

So to recap, if you have excellent credit score, your debt-to-income ratio is low and can contribute up to 20% of the cost of the home towards a down payment then you are a candidate for a conventional loan. It is always important to talk to your mortgage lender about your options and what loan would be best for your unique situation. If you would like to talk to someone further about the different loan options, contact us here!

Load More Posts
APPLY NOW!