Nextdoor Realty Group, Inc
BUYING A HOME
If You're Thinking to Settle Down in the Area or simply Planning to Relocate from One Place to Another, You Come to the Right Place. Let Us Help You Find the Perfect Home.
WE SEARCH, WE NEGOTIATE, YOU BENEFIT !!!
Let us work with you. We can find the perfect home and take you from Start to Finish in the Home Buying Process. Get in touch with us now and you'll have access to our database and many other exclusive inventories of sellers in the area.
Getting a Mortgage
Securing a mortgage is the first step toward closing - and moving day. Of course, if you're pre-qualified you are a step ahead. The mortgage application process can be confusing and intimidating, especially to first time purchasers - but today's market offers homebuyers more options than ever before.
Have Your Records Ready
Organizing your records ahead of time will help speed things along when you're completing mortgage applications. Our mortgage documentation checklist can help you keep track of everything you need.
Shop For a Lender
There are many types of lenders in today's mortgage market - review their loan terms to decide which offers the best package for your needs. If you have credit problems or other difficulties, look for a lender specializing in this type of loan. Don't forget to check out online lenders as well.
Consider Loan Types and Terms
Today's mortgage market offers a bewildering array of financing options and loan programs each with different rates, points, and amortization schedules. Consider the details of each so you can select the one that best suits your needs.
Choose the Right Loan
After considering the various mortgage programs available it's time to make your selection. Don't forget to review all aspects of the loan, not just the interest rate - the points, fees, and term can be just as important.
Watch Interest Rates
Keep an eye on interest rates during (and after) your mortgage search. Many lenders offer the option of locking in the interest rate before closing - a valuable alternative if rates are rising.
Apply for Your Loan
Carefully complete each section of the application and provide all of the documentation required by the lender along with the loan application fee. Maintain frequent communication with your loan representative - if you haven't heard anything within 1-2 weeks call and ask about the status of your application. Respond promptly to any requests for additional information.
Additional Mortgage Loan Information:
The single most important aspect of your home purchase is the loan, or mortgage, you obtain. The amount of this loan will be decided by the price of the home and your down payment. Generally, the amount of your down payment and income/debts control the price range of homes you can look for, and hence, the size of the loan you will need.
A lender will analyze your income to determine your ability to repay the loan. A general rule of thumb to calculate how much loan payment you can handle is to figure 25-33 percent of your gross, pre-tax monthly income.
The interest rate and the principle amount of the mortgage will determine the amount of your monthly payments. The higher the interest rate, the higher the monthly payments. The length of most real estate loans is generally 15 or 30 years.
Loans fall into two basic categories: (1) those that have fixed interest rates and payments; and (2) those with interest rates and payments that vary over time.
A Fixed Rate Mortgage provides a known monthly payment that will remain the same throughout the life of the loan. This means housing costs will never vary and will be easy on the budget. The interest rates on these loans are usually a little bit higher than on adjustable loans since the lender is establishing a set interest for a number of years.
Adjustable Rate Mortgage (ARM) loans generally give the benefit of low initial interest rates and a corresponding lower monthly payment at the beginning of the loan term. The rates increase (or may even decrease) as the loan provides for periodic changes in interest rates. An important point to look for is the presence or absence of interest rate "caps." Life-of-the-loan caps place a ceiling on how high the rate can go over the term of the loan, often five to six percentage points above the original rate. They are a guarantee from the lender that you will not be required to pay more than the agreed-upon maximum interest rate. Annual caps protect you from extreme jumps in the interest rate in any given year and are usually in the one to two percent range.
Shop around for your loan. Don't be afraid to ask questions and to compare one loan to another. Since you will be living with it for many years, make sure to get the one best suited to fit your financial circumstances.