Getting approved for a mortgage loan is an exciting time in life! However, before you plan to spend the maximum amount offered, it's important to consider whether you can truly afford the mortgage your lender has offered. Although they let you borrow the maximum amount possible, doesn't mean you should. Taking time to calculate what mortgage rate you can afford will give you a clear view of your next move.
If you are looking for an in-depth estimate of your potential mortgage payment, you will need a mortgage calculator that includes cost of homeowners insurance and property tax, which may vary depending on where you live. To get an accurate number, call insurance providers for a quote and research property taxes in the county you are interested in moving. Trulia offers a free, advanced mortgage calculator for homeowners to use to get an estimate.
Any individual lending money for a mortgage loan cannot underwrite the loan unless they confirm you are able to repay the amount offered. This determination is based on credit reports, job history, and your income. By law, lenders can't approve loans that take up more than 35% of your monthly income.
Using the 30% as a rule of thumb when figuring out your home buying budget is a common practice. Here is the formula: Multiply your pre-tax monthly income by 30 and then divide that by 100. The answer is 30% of your pre-tax monthly income. This shows you what the maximum amount you should spend monthly on a mortgage payment.
Choice Properties offers you a chance to find the home of your dreams. We work with your budget and ideas in mind to support your ultimate vision. Call us if you are ready to check out the available inventory or to speak with a reputable agent who can assist you with your home buying needs.
If you identify as a homeowner or make monthly payments on your car then you may be aware of the option to refinance your loan. Refinancing your house or car loan simply means to finance your investment again on different loan terms, usually with a lower interest rate. This is a good idea for most homeowners when rates significantly lower than what they currently are. Depending on the loan term, choosing to refinance can save individuals hundreds of dollars per month. However, this loan option is not an to everyone. Have you been wondering if you quality for refinancing? Consider asking yourself these questions to see if you meet the criteria.
Lenders seek a high percentage invested into your equity, usually around 20%. To estimate your equity, divide the amount you are wanting to borrow by the value of your home. Take your amount and subtract 100 to find your equity percentage. If your percentage is around or over 20%, this increases your chances of refinancing.
Aside from holding 20% equity stake, good credit score is another key factor lenders seek before the approval of the loan. The minimum most lenders require is a score of 600-650, while some lenders seek credit scores of 720 or above. If your credit score is low, focus on changes you can make to gradually increase the number. Your credit score comes from five different factors:
Lenders study your monthly payments including mortgage, credit cards, and car loans that are relative to your income. Ensuring your payment history is correct with no missed payments will increase your approval of a refinance loan. Lenders seek ratios no higher than 38% when analyzing your debt-to-income.
If you are looking to reduce your monthly mortgage payment, refinancing your home is a great option! Upon going through the process you will be saving cash each month, allowing you to invest in other expenses.
Choice Properties understands your needs and desires when it comes to the home search. We are here to help you define what you want, seek the best property and move forward feeling educated and able to make good decisions throughout the process. You can trust us to help you navigate it with the best real estate agents working for you. Call us to get started on your dream home search today.
As a home buyer, one of the things you may be worried about is your credit score. Maybe you have student loans you're still paying off, or there's a few missed payments in your history. Don't lose hope however. If you have your eye on lakefront property in Ohio, you may still be approved for a mortgage, even if you credit score isn't stellar. We have some insights for you to be able to determine whether you can get a mortgage.
Interest rates have remained historically low, despite the volatility in the housing market. With a lower credit score, you can't count on getting those low rates. The fact is, that mortgage interest rates vary with the buyer, depending on the risk. In other words, if your credit is damaged, you can still qualify for a loan, just at a higher interest rate. If you have your heart set on buying, then you have to decide whether a higher interest rate is something you will be comfortable with.
FHA loans were created by the Federal Housing Administration in 1934 to increase home ownership during the Great Depression. They have been utilized by more than 40 million families to purchase or refinance homes. The loans are insured, so lenders have greatly reduced risk. In 2017, FHA loans made up 20% of all new loan originations. These loans are designed to act as 'helper loans' for those buyers who earn enough to pay a mortgage monthly, but don't have long term credit history to show they are low risk candidates. If this is the situation you are in, you could well be approved for an FHA loan, and you might even pay a smaller down payment than if it was a conventional loan.
Your credit score is not a hard and fast number that will never change. Nor is the same credit score for two different people viewed in the same way. For example, Individual A might have a low score that has not changed in years, or they are missing payments in their most recent history. Individual B is someone with the exact same credit score and hasn't missed a payment in 3 years, plus their credit has steadily gone up. A lender will view Individual B as a much better prospect.
Lakefront property in Ohio is extremely desirable. If you really want a shot at getting approved for a mortgage for your dream waterfront home, then here are a few extra tips you can use:
So you see that a low credit score doesn't mean that you will never be approved for the lakefront property in Ohio that you want. It is possible, with just a little more effort on your part.
Our expert agents at Choice Properties can help you find the right plan when improving credit score. Give us a call today!
Buying a new property can be a daunting task. The sheer amount of Ohio property for sale is overwhelming, and you may not know where to begin. Our years of experience in real estate in Ohio have taught us the best tips and tricks to find the perfect property for our customers. Using our tips will help you do the same.
Naturally, you have your own best interests in mind when you're looking to make a big purchase. Consider here whether the seller's listing agent will also have your best interests in the transaction. Probably not. The dual agent representation scenario is the most common one in Ohio, however you can ask a different realtor to represent you exclusively. A buyer's agent will look out for you, and the seller should have no objection because it won't cost them anything. Beyond negotiating a transaction for you, a buyer's agent can also help you locate and look at properties within your budget, if you haven't been able to find one.
When you apply for a mortgage, the lending institution will ask for a professional appraisal of the home you want to buy. This is to make sure that the agreed upon price is justified according to the current market value of the property. A professional appraiser will look at comparable Ohio property for sale, and arrive at a value. It's a cost that's well worth your while, and using a third party professional appraiser will ensure that you get an unbiased opinion.
The mistake a lot of buyers make, is finding a property they love first, and then finding out that it's out of their price range. The smart way is to figure out your budget first, and then look only at properties that fall within it. It is not advisable to buy so close to your target amount, that you become anxious at the thought of any further fees or repairs. There are a couple other approaches you can use, like adjustable rate mortgages to increase your budget and get you into a home you really want, that might be a little bit beyond your price range.
Ohio property for sale is in demand, and you may be a buyer from out of state. In this case you will be concerned about how you will be able to monitor the purchase of a home long distance. You can look up the National Association of Realtors which is a nation-wide network of real estate sales professionals. You'll be able to find a real estate agent in the area where you are looking to purchase. Choice Properties can help you select the perfect home for you in Ohio and assist you to strike a deal when you have made that selection. Working with our agency will give you a real advantage as we have local knowledge.
It won't cost you more to be represented by a buyer's agent when it comes to commission, because the listing agent will split the sales commission with them. Commission is usually paid by the seller of the home. Only in one circumstance would you, as the buyer, pay commission to your agent, and that is when the house you are purchasing is FSBO, ie for sale by owner. This is where the owner has not listed the property with any selling agents, and would not want to pay the commission. In this case, it would be fair to expect the buyer to pay it, in consideration for the agent finding the home.
For more information on finding Ohio property for sale, give us a call today to speak with our award winning realtors!
Once a seller accepts an offer, the time comes to sign paperwork which seals the deal. What most Ohio home buyers don't realize is that a real estate process is complex with lots of nuances to the transaction. Learn some important things to keep in mind on the road to home ownership.
Mortgage interest rates may fluctuate daily. Rather than have the stress of the interest dial moving up and down, a bank will 'lock in' an interest rate for 45, 60 or another number of days. Once this expires, a higher rate kicks in. Some issues that may come up as a result may include:
Roadblocks which require stop to loan process until resolution
A previous homeowner may have done renovations that do not meet today's standards and require updating prior to selling. This can require hiring an architect and documenting the issue before a bank will approve the loan. Be cautious when using a rate-lock expiration as it may throw plans out the window in the closing process.
Just because an application is completed and submitted does not mean a loan is approved. Lenders need to verify income, assets and credit all the way until closing. Any last minute changes or fluctuations could result in some unforeseen challenges if not discussed previously with a mortgage professional.
A walk-through is usually provided up to 24 hours prior to closing. Take advantage of the opportunity to see the property in case any systems are not working, the seller did not finish repairs or has not completed move out yet. It is possible to postpone closing until things are completed.
Once the home closes, in most states, the law resides on the side of a buyer and requires the seller to disclose issues and confirm resolution. The purchaser should make sure the seller closes outstanding permits, releases liens on the title and resolves issues with local authorities.
Most of the time, closings finish up without any issues. Buyers sign the loan documents and the seller goes to the title company to sign off. It is seamless and happens without issue. Buyers and sellers along with other folks may sit around for a time processing, calculating and negotiating. If the transaction was less than smooth, the closing table may get tense but it may end up being low-key.
A smooth closing can be had with some research up front and awareness of any red flags. Make sure to have a solid real estate team who is knowledgeable and will refer you to the right parties to resolve any issues prior to closing. Get as much information in the beginning as possible for a great resolution and closing.
Choice Properties is the premier realty company serving communities in and around Logan County. Award-winning agents provide assistance on residential to commercial, agricultural to waterfront properties and more to best serve your needs.
Call us to find out how we can best serve you.