If I can explain any steps along the way, please ask. I'm always happy to help. I have been recently awarded the ABR Designation. Only 37K out of over a million Realtors receive this designation.
The steps to successful financing
Examine your finances. How much can you afford to spend? While a lender will tell you how much you qualify for, it's up to you to figure how big a payment fits into your budget. What monthly dollar amount do you feel comfortable committing to? Remember to consider related costs such as insurance and taxes, as well as interest and principle.
Get pre-approved. This is extremely important before buying a home. You want to know how much you can afford before you start looking at homes. You don't want to be disappointed in a home you can't afford. A lender will sit down with you and go over all the details of your finances to determine a good ballpark figure of how many homes you can comfortably afford. Then they will issue you a pre-approval letter stating this to present to sellers in an offer.
Consider what type of loan is best for you. Compare fixed-rate with adjustable rate mortgages. Look down the road. Where will you be in 15 years, 30 years? What obligations might you have? Take those things into consideration as you choose a loan.
Check your Credit Report. A lender will run a credit report on you (it only takes a few minutes), but you'll be ahead of the game if you acquire a copy first. You'll know exactly what's on it and be able to correct any inaccuracies.
Clear up any financial problems. Do you have credit problems or owe money to the IRS? Buying a new home may still be a possibility. Contact a financial advisor or tax resolution service to find solutions
Shop Around. When you're ready to get a loan, explore your options. You can choose either a direct lender or a mortgage broker.
A direct lender has money to lend and makes the final decision on your loan. Brokers are intermediaries who choose from many lenders. A broker may be able to help find you a loan if you have special financing needs, but he or she will also receive a percentage of what you borrow.
While you're shopping for a loan, also look for the best loan costs. These may include:
• Interest rates
• Broker fees
• Points (each point is one percent of the amount you borrow)
• Prepayment penalties
• Loan term application fees
• Credit report fees
• Appraisal costs
Ask about Pre-payment. You can shave years off the length of your mortgage by restructuring the way you pay back your loan. Simply paying more frequently can save thousands in interest. So can making a lump payment toward the principal - or paying a little more each month. These methods are called pre-payment.
For more tips on finances give me a call anytime or to begin looking at Sierra Vista homes and real estate contact me. All Foreclosure - Providing foreclosure information and resources for investors and homeowners since 1999.