Archive for the "Home Financing" Category
August 29, 2011
While you may think being approved for a loan is one of the last steps in the home-buying process, any real estate agent will tell you that is not true. It is necessary for you to assess your specific situation before you begin shopping seriously for Jacksonville, NC homes for sale.
It is the job of a mortgage broker to tell you how much you can afford to spend on a home. There are several ways they go about evaluating this information. A mortgage broker or lender will better determine how much you can afford to spend by assessing:
- Credit issues
- Income (salary, bonuses, commissions)
- Tax returns
- Employment history
Helping you determine the range of money you are qualified to borrow will help you and your real estate agent get a better idea of the price range you can shop in. It will not be beneficial for you to look at homes that are outside of your price range, because it will only make the homes in your price range seem less desirable.
Your real estate agent will also benefit from finding out your exact price range before you start shopping. They will be able to start immediately finding houses that suit your tastes and your price range so you can find your dream Wilmington, NC real estate faster than you had hoped.
Ask friends for a solid reference and only meet a mortgage broker or lender that you feel comfortable with. Often times, people see the mortgage lender as the bad guy, when in reality it is their number one priority to help you find a home that you can afford.
Want to learn more about taking the first steps to approaching your home loan? Watch this Sea Coast Realty video from Chris Hutchens, an Alpha Mortgage professional.
When you’re ready to start the search for your Jacksonville, NC new home, contact the real estate professionals at Sea Coast Realty.
August 23, 2011
You’ve seen those late-night commercials that say you can buy beautiful foreclosed homes for only hundreds of dollars. While that might seem like an ideal situation, there may be some things you should be aware of before you enter the foreclosure arena.
What Are Courthouse Foreclosures
Buying a foreclosed home from the courthouse may be an inexpensive alternative to buying a new home, but it also means you are responsible for paying any existing leans on the house and many times you can’t even look inside the home until after you purchase it. Buying a home like this requires extensive research and a solid understanding of how the process works. In many cases, purchasing a foreclosure this way also requires a leap of faith.
What Are Bank-Owned Foreclosures
A bank-owned foreclosure is a foreclosed home that was actually bought back by the bank. When shopping for a bank-owned property it is important for you to consider the condition of the home, because the bank won’t do any repairs before putting the house up for sale. Many foreclosures are in a state of disrepair that can range from cosmetic fixes to major necessary repairs. While this is a much easier way to purchase a foreclosed home, it still requires a fair amount of research.
What Else You Should Know
The important thing for you to understand when considering a foreclosure is that it can be risky business if you are not properly informed and prepared. Choose a real estate agent that offers experience with foreclosures to help ensure you get the best deal on your Jacksonville, NC real estate
While foreclosures make up a large portion of the listings in many areas, it can require patience on your end to find one that matches your needs, budget and taste. By using your head and staying informed about the market, you can actually make a successful foreclosure transaction.
Want to learn more about foreclosures? Watch our video of a Sea Coast Realty real estate agent telling you what you need to know about foreclosures.
August 15, 2011
The number one goal of a trained Realtor is to improve the home-buying experience for a buyer and a seller.
If you are an inexperienced home-buyer, why wouldn't you want the guidance and support of a trained professional with years of experience? There are so many aspects that go into the home-buying process that you may not be aware of or fully understand.
A professional real estate agent can help you understand and narrow your options, while also helping you to negotiate the best deal. A professional real estate agent can also:
Determine your buying power
A real estate agent can help you identify how much you can afford to spend on a home. Taking into consideration your borrowing capacity and available financial reserves, a real estate agent can help you narrow your selection and find a home that suits your means.
Access additional resources to find your home
Real estate agents have access to Jacksonville or Wilmington, NC real estate
that may not be actively advertised on the market. Your agent could have access to a variety of properties that you didn't even know were out there.
Assist in the selection process
Realtors have access to a variety of informational resources that can assist you in making a better decision about your future home. Real estate agents have access to facts on zoning, schools, utilities and other valuable information that could help you make a more informed decision.
Help you negotiate
If you are an inexperienced home-buyer, it could be helpful to have a professional on your side. When you have found the Jacksonville, NC home for sale
that you want to purchase, you need to ensure you negotiate effectively. A real estate agent can help you negotiate things such as price, financing, terms and date of possession.
Choose a real estate agent you can trust. Contact the professional real estate agents at Sea Coast Realty today.
May 24, 2011
Being a first-time home buyer is exciting. Browsing Wilmington, NC new homes to find the perfect place to start your life is special.
While you may be overwhelmed with excitement, you may also be overwhelmed with anxiety. By following these helpful tips, you can take some of the stress and anxiety out of the home-buying process:
- Pay off your debts – Before you buy your first home, evaluate your current debts and do everything you can to pay them off. The less money you owe on cars, school loans and large purchases, the more money you will have available for your new home.
- Check your credit – When trying to qualify for a loan, your credit score is one of the most important contributing factors. Get a credit report so you have a better idea of what lenders will be looking at when considering you for a loan.
- Find out exactly what you can afford – Calculate potential mortgages to estimate what your payments may be. Try out different prices until you find a range where you feel comfortable.
- Understand what loans are available to you – Do research and meet with your bank to find out what types of loans are available to you. Ask about FHA loans, Fannie Mae loans and any available private loans.
- Get pre-qualified – Being pre-qualified for a loan will make the home-buying process much easier. This can help you narrow the range of homes that you are interested in, and help you get a better understanding of exactly what you can afford. If you are pre-qualified, your offer will be taken more seriously than someone that hasn’t spoken to a lender.
- Calculate your down payment – Taking into consideration the money you have saved and other programs that can assist with your down payment, decide on a figure that is manageable for you.
Be an educated home buyer. Do your research and find the perfect Jacksonville, NC real estate for you. Use all the resources available to you as a first-time home buyer and enjoy this special time in your life.
January 21, 2011
If you are thinking about purchasing a home, there are some major things you will want to avoid. While some of them may seem like common sense, it can never hurt to see them in writing.
Don’t Move Money Around
When a lender reviews your loan package for approval, one of the things they are most concerned about is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last two or three months on any of your liquid assets. This includes checking accounts, savings accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company 401K and retirement accounts.
If you have been moving money between accounts during that time, there may be large deposits and withdrawals in some of them. The mortgage underwriter (the person who actually approves your loan) will probably require a complete paper trail of all the withdrawals and deposits. You may be required to produce cancelled checks, deposit receipts, and other seemingly inconsequential data, which could get quite tedious and stall progress.
The Effect of Changing Jobs
For most people, changing employers will not really affect your ability to qualify for a mortgage loan, especially if you are going to be experiencing an increase in pay. For some homebuyers, however, the effects of changing jobs can be disastrous to your loan application.
For salaried employees, it is only beneficial to switch jobs if you will be earning a higher salary. Otherwise, changing positions won’t really affect your mortgage.
For hourly employees, as long as you work around forty hours a week without over-time, your job shouldn’t create any problems.
For commissioned employees, it is important not to change jobs before purchasing a new home. Since changing employers can create uncertainty about your future earnings, it could negatively impact your ability to buy a home. This has to do with how mortgage lenders calculate your income. They average your commissions over the last two years.
For part-time employees, if you earn an hourly income but rarely work forty hours a week, you should not change jobs. There would be no way to tell how many hours you will work each week on the new job, so no way to accurately calculate your income. If you remain on the old job, the lender can just average your earnings.
Avoid Major Purchases of Any Kind
Making major purchase right before you go to get a loan for a new home may not be the wisest decision. Should you buy that motorcycle you have had your eye on? No. Should you splurge on a vacation to a private island? Probably not. What about that 60” LED TV for Sunday’s football game? Uh-uh. You are going to want to avoid making any major purchase that would create additional debt of any kind.
Keep your goal of purchasing Jacksonville NC real estate in your mind at all times. It will keep you from making impulse purchases and ruining your chances of getting a loan. Contact Sea Coast Realty today to start searching for Wilmington NC homes for sale.