Dealing with Financing
October 13, 2017 | Jessica Moscho
As the events of years past, people sometimes have forgotten about the tremendous financial responsibility of purchasing a home at their peril. Here are a few tips for dealing with the dollar signs so that you can take down that “for sale” sign on your new home.
Get pre-approved. By getting pre-approved as a buyer, you can save yourself the grief of looking at houses you can’t afford. No one wants to fall in love with a home they can't afford. You can also put yourself in a better position to make a serious offer when you do find the right house. By knowing an estimated payment you'll feel more prepared. Unlike pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history. Our elite lender partners will even send your documents through preliminary underwriting, making sure we avoid any "surprises." By doing a thorough analysis of your actual spending power, you’ll be less likely to get in over your head and feel confident to move forward.
Choose your mortgage carefully. It used to be the emphasis when it came to mortgages was on paying them off as soon as possible. Today, the debt the average person will accumulate due to credit cards, student loans, etc. means it’s better to opt for the 30-year mortgage instead of the 15-year. With interest rates still historically low now is the perfect time to lock in at an affordable rate. This way, you have a lower monthly payment, with the option of paying an additional principal when money is good. Additionally, when picking a mortgage, you usually have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for an even lower interest rate. If you plan to stay in the house for a long time.
Do your homework before bidding. Before you make an offer on a home, do some research on the sales trends of similar homes in the neighborhood.  Consider especially sales of similar homes in the last three months. As your Realtor we can gather helpful information from recent sales in the neighborhood to interpreting the current market trends to help you find an acceptable offer range.  Along with other details to help make your offer the best all around. 
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