Tuesday, November 4, 2008

Tips to help you get a mortgage

There is all kinds of news out there about the state of the real estate market. The truth is, in Chester county and Delaware county, the real estate market is not all that bad. Homes are selling, not as fast as they were 18 months ago, and there are lots of homes on the market to choose from. With homes on the market for longer periods of time, the prices are dropping, and dropping a lot. The interest rates are still reasonable( still under 7% with good credit), THIS IS A GREAT TIME TO BUY!!!.
Here are a few tips to help get your finances in order to help you to get a mortgage...
1) Get your credit reports. Errors on the report can force you to pay higher interest rates on your mortgage, or even increase the chances of you not being able to get a mortgage.
2) Get and improve your FICO scores. Your credit scores, which are 3 digit numbers used to guage your credit worthiness, help determine the rates and terms you can get for a loan.
3) Deal with your debt. Most people don't need to pay off their student loans, car loans, or other generally low debt before getting a mortgage. What you want to get rid of is "Toxic Debt": Credit card balances, and payday loans. These are signs you are living beyond your means.
4) SAVE!! SAVE!! SAVE!! Stop eating out, drop the cable bill, pay your self first, before you sit down and pay your bills. Do anything you can think of to save money for that down payment.
5) Put your bills on auto payment. A single 30 day late payment can knock of lots of points from your credit score. It will take many months to recover from that.
6) Sort thru your mortgage options. A lot of people today are losing their homes today because they didn't understand what kind of mortgage they have, or they accepted bad advice. Rule of thumb with me... If you can't afford a 30 year fixed, you shouldn't be looking for a home. The lower teaser rates allow someone to buy more then thay can afford. Then the rates change and they can not afford the payments.
7) Start calculating how much home you can afford. Once you have settled on what type of mortgage you want, and a rough idea on a down payment, you can go to my website www.ricksapovits.com and use the mortgage calculator to see how much home you can afford.
8) Research ALL the costs of owning a home. Your mortgage is just the start. Taxes, utilities, insurance, home owners fees, maintenance and repairs. Don't forget the little things... like food and clothing!
9) Reduce your credit utilization! If you can not pay cash , DON"T BUY IT! Definately don't make and major purchases, like a car, appliances, trips. Don't do it. You might regret it later.
10) Don't open or close any accounts. Until the mortgage process is complete and you successfully leave the settlement table, continue to avoid actions that might harm your credit.
11) Get pre-approved for a mortgage. Pre-approval in which a lender gives you a commitment to make you a loan, is different and more valuable the a pre-qualification letter. This also makes your offer more attractive to a seller.
12) Consider a mortgage broker. Once your offer has been accepted, you only have a few days to start the mortgage process. You can shop on your own, but if you are uncomfortable with this process, you will benefit from the services of an experienced, ethical broker. Stay away from the on-line mortgage stuff.
13) You will also need to get an appraisel, home inspection and home owners insurance for settlement.

When you work with me, I will walk you through this entire process. I will guide you and give you the advice you will need. When you are ready to begin the home buying process, please give me a call, let me show you how and what I will do for you.
Most of my business is thru referrals. If you know of anyone thinking of buying or selling a home, please mention my name. I will be honored to work with friends or relitives of yours.

I look forward to working for you.

Rick Sapovits Realtor, ABR
Keller Williams Real Estate
100 Campbell Blvd, Suite 106
Pa, Exton 19341
610-363-4300 x 2452

No comments: