Happy Holidays 2012

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To all our cherished friends, neighbors, family and clients – we are so proud to have been able to work with you and be a part of your lives! As we end this year and turn to the exciting time and events that 2013 holds, we just wanted to take a moment to thank you for all that you bring to our lives.

We have some really great plans in the coming year to bring more success to all your real estate endeavors. And with each transaction that makes it to the closing table in the coming months and years ahead – we know that there will continue to be new and exciting things to follow for all of us.

On behalf of the entire group – Happy Holidays, Season’s Greetings, Peace and Joy!

5 Things to Know When You Obtain a Mortgage in Today’s Lending Environment

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After going through all the motions of finding the perfect home, the LAST thing you want to happen is for the financing to fall through. That’s why it is critical to know the best practices of the lending process these days. Here are my top five things to do when dealing with a mortgage in today’s environment.

Make an Offer With a Pre-Approval In Hand

In many marketplaces, including ours, there are far fewer homes on the market than there are buyers. What this means for you as a buyer is that you need to stand out from others so that the seller is more inclined to accepting your offer. Typically in a sellers’ market, homeowners will not accept any offers unless a pre-approval letter accompanies them.

Borrow What YOU Can Afford, Not What the Lender Thinks You Can Afford

Banks will review your income levels, credit score and debt-to-income ratio to determine how much they think you can afford. But only you can truly know what is acceptable for you each month in terms of a mortgage. So regardless of the amount a bank approves for a purchase of a home, be sure to assess how much each month you would like to spend on a mortgage.

Understand All the Lending Options and Choose Wisely

Though there may be fewer options out there these days than there may have been just ten years ago, buyers have several ways to finance the purchase of their new home. Whether it be engaging in a government housing program, opting for a state or regional down payment assistance program or selection the type of loan product – it’s important to look over everything before choosing what’s right for you. Additionally, you want to explore all the financing options, such as fixed rate or balloon payments, ARM or short terms loans and more.

Know Your Options and Loan Restrictions

Aside from financing options in general, there are also things to consider within the type of loan product you end up going with. There may be restrictions at hand that you should consider and to address these issues beforehand you should ask plenty of questions to your lender. Find out whether there is a penalty for prepaying your mortgage. If possible, get a loan that is assumable, meaning that when you go to sell the home your low interest rate of today’s mortgage environment will be passed on to the buyer, making it a very attractive home to purchase.

Have a Professional On Your Side

This goes without saying but for such a complex transaction as the purchase (or sale) of real estate, it is critical to have a professional by your side. Not just a licensed Realtor® but also someone that dedicates their entire career to the profession. Their experience will come back to you ten-fold and you will be supported by an individual or team that will look out for your best interests only. In terms of choosing a bank, there are questions that should be asked on that end too. Find out the track record of your lender and make sure you are working with someone that has ample experience.

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As always, I welcome your calls or visits and invite you to get in touch for more information on any of your real estate needs. I’d be happy to help!