Aug 3, 2018 | Mortgage
When buying a house in a market that favors sellers, buyers must be able to move quickly. Mortgage pre-approval is critical to this. Here are some tips buyers can use to get approved fast.
1. Estimate Purchase Costs
Buyers need to know what their target purchase price is. This could speed up the pre-approval process according to Realtor.com.
If buyers have been saving for a down payment, they should also tell the lender the amount they plan to put down on the home. Again, this helps speed up the pre-approval process and ensures greater accuracy.
2. Check The Credit
Lenders will check a buyer’s credit score before offering mortgage pre-approval. Checking their own credit first and making improvements if needed could help buyers speed up the approval process.
Buyers who have credit problems may want to reach out to their lender first to see what they can do to improve their credit situation. Lenders know what strong credit looks like and may help buyers make changes that improve the credit score quickly.
Knowing credit ratings before asking for mortgage pre-approval also helps buyers know what to expect from their mortgage offer. The better the credit, the better the terms on the mortgage the bank offers.
3. Get The Paperwork Ready
If the lender has to ask for a piece of paperwork after starting the approval process, a buyer will face delays. Organizing all paperwork and delivering it with the pre-approval application should help.
Start with proof of income that will be used to qualify for the mortgage including 30 days of pay stubs and the previous two years of tax returns with W-2s or 1099s.
Buyers should then gather two months of savings and checking account documents.
Finally, anything connected to retirement, assets, or 401(k) funds needs to be included.
If the buyer has any funds deposited that were from regular paychecks or do not show in the employment and payment records, they may need to have a written explanation.
4. Present Everything Clearly To The Lender
Buyers who bring everything they need to the lender in an organized fashion should get their pre-approval letters quickly. Sometimes lenders can deliver the letter the same day that they receive the information.
That said, buyers with complications, like unusual employment structures or credit problems, may face delays. Most lenders are able to deliver an answer within a few days, even with complex applications.
Mortgage pre-approval is a critical tool in the negotiation tool box for home buyers. Doing a little homework and preparation first can help buyers get approval fast, even in a competitive market. With approval, the chances of a successful offer increase significantly.
A pre-approval in hand will make home buying a much easier experience. Your trusted real estate professional can now help you find just the right home in the right price range for you.
Aug 2, 2018 | Mortgage
On the surface, a short sale seems like the perfect deal. However, before you take the plunge, you need to understand how this type of home purchase works.
What Is a Short Sale?
A short sale is a home sale in which the homeowner is selling the home for less than he or she currently owes on the mortgage. In most cases, this means that the buyer is paying less for the home than it’s worth, which leads to instant equity.
Short sales allow homeowners to get out from under mortgages without damaging their credit as much as a foreclosure. Lenders often agree to short sales because the foreclosure process is lengthy and expensive, so short sales can be more beneficial for both parties in the long run.
Advantages
When you buy a short sale, you can often get a nicer home for a lower price. In most cases, you will still be able to use financing to purchase a short sale.
A homeowner attempting a short sale also tends to be highly motivated, which means they will be willing to negotiate on almost any aspect of the sale.
Disadvantages
Although purchasing a short sale can be lucrative, the process isn’t easy. Short sales can take as long as nine months to complete, which is much longer than the time required for the typical home purchase.
Because the homeowner owes more on the mortgage than you will be paying, the bank must agree to the price. This means that even if the homeowner is willing to accept your offer, the bank can still reject it.
If the home secures more than one mortgage, all of the lenders must agree to the sale before it can close. This can lengthen the process even more.
Even though the bank will hold up the process, they will want you to be flexible. Banks are less likely to approve offers from buyers with multiple contingencies, such as a house that needs to sell before closing.
Should You Purchase a Short Sale?
The decision to make an offer on a short sale home is personal. Although there are many obstacles and potential disadvantages, you may be able to save money and build equity quickly if you are able to complete a short sale successfully.
Keep in mind that most banks considering a short sale will want to see a well-qualified borrower who offers flexible closing terms, so it’s best to contact your mortgage professional for a pre-approval before you make an offer on the home.
Your trusted real estate professional is a qualified partner to help you with a short sale home purchase.
Jul 11, 2018 | Real Estate
In the ideal home-buying scenario, you’d have plenty of time to find the perfect home. However, this is not always possible. Maybe you are relocating for a job and have to buy a house from across the country. If this is the case, you might have to limit the time that you spend house hunting.
Here are some tips to help you make your search as productive as possible.
Get A Mortgage Pre-Approval
Before attending open houses and searching for a home, you should get pre-approved for a mortgage. Getting pre-approved for a mortgage will help you identify the exact price range that you should be shopping for. It will also let home sellers know that you are a serious buyer. If you are competing with other buyers, a seller will be more likely to take your offer seriously if they know that you can afford the home.
Sometimes you’ll hear the terms pre-qualification and pre-approval thrown around interchangeably. However, these two terms are very different. A pre-approval is much more valuable when it comes to buying a home. Although you will have to provide a lot more information for a full pre-approval, this qualification will provide you with a specific loan amount that you are approved for.
A pre-qualification is just an estimate of the amount that you can afford based on your income and other factors. It is not as personalized or customized for your specific situation as a pre-approval.
Find A Good Real Estate Agent
Find a good real estate agent who is knowledgeable of the area that you want to buy in. Ideally, they have lived in the area for a long time and know the community. A good local agent can bring invaluable knowledge to the table about the city. They should be familiar with the homes in the area. They might even know about homes that aren’t on the market yet but will be soon. This knowledge can be invaluable when you are in a time crunch and want to get the most out of your house hunting time.
Make A List Of Your Must-Have Amenities
You don’t want to spend time looking at homes that won’t meet your needs. There are probably some things that you’d like to have in a house, as well as things that you must have. So, if you’re in a time crunch, the first thing you should do is make a must-have list. Make a second list of things that you’d like to have but that are not required. Don’t bother looking at homes that lack the qualities on your must-have list.
Contact your trusted real estate agent to help with your home search today!
Jun 20, 2018 | Real Estate
In an ideal world, you’d have plenty of time to find the perfect home. However, that does not always happen. Maybe you are relocating because of a job transfer. Fortunately, it doesn’t have to take months to find the perfect home. You can speed up the process of buying a home utilizing some tried and true tips.
Here are some of the best ways to speed up the house buying process.
Find An Experienced Real Estate Agent
An experienced agent likely has an extensive network and many connections. They might know what properties are coming on the market before anyone else does. They can also help you assemble a great team of real estate professionals such as a mortgage banker and real estate attorney.
Get A Mortgage Pre-Approval
Obtaining a home loan is a long process that requires a lot of paperwork. You can speed up the process by getting pre-approved before looking for homes. You’ll need to gather some paperwork for pre-approval including bank statements, tax returns and information about your debt. Have all of these things ready when you talk with the mortgage loan officer.
Having a pre-approval letter also demonstrates to sellers that you are serious about buying. They might be more likely to respond quickly to your offer if they feel that the deal will go through.
Make A List Of Things That You Must Have
If you are in a hurry to buy a home, you don’t want to waste time looking at houses that won’t meet your needs. So, before doing any online research, make a list of things of your must-have amenities. Zeroing on the things that you must have will help keep you focused on properties that are right for you.
Search Areas That Have A lot of Inventory
Don’t waste time looking at communities that don’t have much inventory. The real estate market will be a lot more competitive. Instead, try choosing areas that meet your needs as far as easy access to your work, quality of the school and so forth. Make sure that they have plenty of inventory available. You might have to hunt in surrounding neighborhoods to find something quickly.
Be Available to Act Quickly
If you want to close quickly, you must be available to act as soon as an offer is accepted. It is essential to be available anytime to get in touch with your agent, respond to counter-offers and answer questions. Provide your agent with multiple ways to reach you — by phone, email or text.
Contact your trusted real estate professional today to help you with these tips and many more to make your new home purchase as hassle-free and timely as possible.
May 15, 2018 | Mortgage
According to the 2017 Home Buyer and Seller Generational Trends Report, Millennials bought 34% of the homes sold; the largest of any generation last year.
Millennials looking to buy their first, or second, home need to ready themselves for a surprisingly competitive market. Lack of supply causes attractive homes to garner multiple offers in just a few hours!
What can a Millennial buyer do to appeal to sellers and be the one who ends up with the home? Here are 5 ways they can snag their dream home in this seller’s market.
Get Pre-Approved
Figuring out what a home buyer can afford is a crucial step and no different for these savy Millenial home buyers. Sellers like to avoid nasty surprises. Being pre-approved shows the seller that the homebuyer is serious and financially able to purchase their home.
Meeting with a mortgage originator and getting pre-approved is how it’s done. This professional will pull credit history and look at current financial infomation to determine precisely how much of a mortgage is affordable. The pre-approval can then be used as part of their offer letter.
Be Decisive
A hot real estate market is no time for cold feet. Millennials should proactively create a list of must-haves and be ready with an offer when they find a home that meets their requirements.
Taking too long to mull over whether they like the house, the neighborhood, or the price can result in a dream house being sold right out from under them.
Get Real
Millennials should research pricing in the neighborhoods they like, and lean on their real estate agent for helpful guidance. Low-balling an offer is not likely to be received well in this competitive market. Making a fair, reasonable offer close to, or even above, the asking price is the best course of action to land the home they want.
Show Personality
If sellers feel like they know the buyer, they are more likely to choose them over a faceless offer. Include a personal letter with the offer. Go into detail about why the house is appealing. Add personal details about what the Millennial buyer wants to do in the house like raise children, plant a garden, or enjoy baking in the kitchen.
If all buyers are equal, a heartfelt letter just might tip the scales.
Agree to the Seller‘s Timetable
Some sellers prefer unloading their house fast. Others may want to wait to move until their kids are out of school or the new home they are building is ready.
Millennial buyers may need to dig to get this information but it can be used to their advantage. Being flexible might just set them up to be the best choice for the seller.
While challenging, it’s not impossible for Millennials to end up with the house of their dreams. With a bit of planning, decisiveness, flexibility, and a preapproval from their trusted mortgage professional, Millenials can make homeownership a reality in the very near future!
