Tips On Qualifying For The Lowest Mortgage Rate and Best Home Loan

2015 was a year known for consistency when it comes to mortgage rates.  On average home loan rates stayed around four percent throughout the year.  The same is not to be expected for mortgage rates in 2016. The National Association of Realtors says it expects to see rates upwards of four point five percent by the end of 2016.  The rise in interest rates will have an effect on the housing market.  It is important to note that even with the increase expected to be seen during the year that the rates being seen are still at an all time low.  It isn’t necessary to panic but instead to be cautious when seeking to buy a new home or refinance and existing loan.

To ensure you qualify for the lowest mortgage rate and best possible home loan follow the advice below.

• Enhance Your Credit Summary: A lender first looks at a buyer’s credit profile on a whole when determining if they are a financial risk that they are willing to take on. When you are looking to buy a home or refinance an existing loan it is important to manage your current debit.  Be sure to pay your bills on time and pay more than the minimum on all outstanding credit card balances.
• Start Hording Funds For A Down Payment: When a buyer puts less than twenty percent down on their new home they are often forced to pay what is known as PMI, primary mortgage insurance. This can raise the monthly payment of your loan upwards of fifty dollars each month.  These funds go towards an insurance that is paid on your behalf to the mortgage lender to insure the mortgage.  It is better to have fifty extra dollars each month going on the principle mortgage payment over insurance.  A home can be purchase with less than twenty percent down however buyers should be conscience of the extra monthly expense.
• Work With A Mortgage Broker: So much more goes into obtaining a mortgage than just finding a low interest rate. There are many programs available to home buyers as well as an abundance of financing options. A mortgage broker can help find a loan that caters to your specific financial situation.  They will seek out a variety of options from a variety of lenders and present you with the best scenarios from each to assure you are getting the best deal for your all around situation.
• Learn About Loan Types: As mentioned above there are several types of mortgages available.  Just because a friend has a fixed rate, thirty year mortgage does not mean that is the best option for you.  The same is true for an adjustable rate home loan.  Different situations call for different mortgages.  Learn about each option and ask about how each will affect your mortgage.

Buying a home is a complex process.  Working with professionals within the industry will help smooth the transition into home ownership.  It is advantageous for buyers to seek assistance from real estate professionals, mortgage experts, home inspectors and real estate lawyers when purchasing a home.  This will help to ensure a positive transaction and beginning in your new home.

Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.

It’s Time To Buy A Home

The busiest season for the real estate industry is the spring.  With temperatures on the rise signs of life begin to be seen all around us.  Flowers are blossoming, trees are blooming and homeowners are hitting the market with fresh listings.  With spring comes a renewal in life, potential and inspiration.  Spring is seen as the perfect time to take on a new adventure. 

This is just one of the reasons why we see an increase in real estate transactions.  Both buyers and sellers alike are looking to find a perfect match and be on the path of a new journey.  Many real estate articles are centered on sellers and tips to selling a home however this leaves many buyers looking for tips of their own.  Below buyers will find helpful industry tips to successfully purchase a home this spring.

1)      Hire A Real Estate Professional 

A real estate agent is so important to the home buying process.  An agent that specializes in local real estate serves so many purposes from tour guide to financial advocate.  Hire an experienced agent.  When chosen carefully a realtor will represent your best interests in all transactions throughout the entire buying process.  Buyers agents not only work to find the buyer the home of their dreams, they help with contractual paperwork, all negotiations, home inspections and concerns as they arise during the process.

Many buyers believe they cannot afford a real estate agent.  This is however the furthest thing from the truth. In fact you can’t afford not to hire a realtor.  It costs nothing to hire a buyer’s agent; in fact the seller of your dream home pays the commission so you have nothing to lose.

2)      Get a Financial Profile Analysis and Mortgage Pre-Approval

Come up with a budget that helps you determine how much you are comfortable spending.  This is a good place to start initially.  Once this is completed it is important that you meet with a mortgage broker to examine how much money you are qualified to borrow.  Do these two things before ever touring a home.  If you meet with a mortgage specialists who says you are pre-approved for a two hundred thousand dollar mortgage but you are not comfortable with the monthly mortgage payment that comes along with it don’t tour homes with that price point. 

Pre-approval on a mortgage helps to ensure that you will be taken seriously by sellers.  It is more likely with a pre-approval that the bid you submit will be taken serious and that sellers will see you as an attractive buyer. 

3)      Determine Your Needs Verse Your Wants

All buyers have their own list of needs when looking at buying a home.  Some families want to live near a good school system; others want big yards with area for their children and pets to roam.  Some want easy commutes to work or specialized rooms like libraries and woodworking.  Only you as a buyer can articulate what you desire out of your new home.  Be sure to create a detailed list of the musts such as three bedrooms and two baths along with a list of wants such as a large basement and laundry off the kitchen.  This will help to ensure that the real estate agent can better access homes to make sure they aren’t wasting your time or theirs on homes that don’t meet your needs.

The process of buying a home is simplified with the help of a professional real estate agent.  Find a local realtor online to help you through the home buying process.  Find out more about hiring a real estate agent who is ideal to assist in the home buying process on our blog.

Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.