Streamlining the Lending Process

Streamlining the Lnding Process

If you are starting a search for a new home, most likely you’ll need to get a home loan. The process might seem overwhelming if you haven’t obtained a loan in a long time; even more so for first time home buyers. The lending process doesn’t need to be difficult and by being prepared, you can streamline the process and ensure you are able to get the best loan for your needs.  

Choose a Lender
 The first step is to find a lender. You might start at your personal bank or credit union. Another good source for referrals is your agent or family and friends. The lender should have access to a variety of programs as well as the government options: VA and FHA programs.  

Be Prepared
Before you meet with the lender, gather the information you will need. Generally, you will need to provide current pay stubs, W2s, bank account statements and the last 2 years of your tax returns. If you have been divorced and/or have child support obligations, bring the final court document with you as well. 

 Understand Your Limits
 Typically, you will be able to borrow up to 31% of your gross monthly income. In addition, the lender will require that you have no more than a total monthly debt of 36% of your gross income. Be prepared to disclose all your debt, even if it does not appear on your credit report. Your loan officer is your advocate and there to help you succeed. 

 Don’t Make Any Credit Changes
 Once you’ve started the loan process, it’s critical that you make no changes to your credit. Postpone any big purchase, do not apply for new credit of any kind and do not pay off any credit cards. It’s also important not to change jobs during the approval process, even if it’s for more money. Before you do anything, talk to your lender.  Getting a home loan is not as difficult as it was a few years ago, but it’s important to plan early and do the right things. Once you make the decision to buy a home, speak to a lender immediately and then follow their advice and you’ll find the loan process simple to manage.

Currently, interest rates are running to the lowest levels in nearly two years. It's been another awesome week for rates. 
Home Mortgage Rates are now all sitting below 4%, Two weeks in a row in fact. If you have been waiting to own a home while locking in at a low rate now is the time to think about calling your lender and your agent. 

Questions about rates, home sales, home buying or relocation send me a message and I'll be happy to assist in way I can. 

Why You Should Never Skip A Home Inspection

Why You Should Never Skip A Home Inspection

Buying a home can be expensive. It might feel like once you’ve entered escrow, you have new things to pay for at every turn. While the fees are normal and customary, if you don’t buy a home often, you might wonder if they are all necessary.

 One expense that is often discussed is inspections. What inspections do you need and how should you choose the right person to perform them. During the home inspection contingency period, you have a right to perform as many investigations as necessary to determine the condition of the property you are buying. 

Typically you will want to make sure there are a home inspection and a termite inspection. Other options could include a mold inspection, radon inspection, well/septic tank certification, roof inspection and pool/spa inspection. The type of inspection is determined by the condition of the home. Most buyers start with the basic home inspection.

What is a home inspection? It is a visual, non-invasive inspection of a property. There are usually seven systems observed during the inspection; the Attic and Roof, the Basement and Foundation, Plumbing, HVAC, the Interior Living Space, the Homes Exterior, and the Electrical System. Throughout the process the inspector assesses the home's safety, operation and the condition of it's various systems. A home inspection can protect you and your money by showing you where things are past their prime, or if something is in great shape. The inspection isn't for the lender, your Real Estate Broker, or the Seller-it's for "you" the buyers. When or if your home inspection Report reveals a defect, it gives you an opportunity to go back to me "your agent" and decided if you want to renegotiate the price or even walk away from the deal. 

 Home inspections are very important. Never judge a home by it's facade. Every buyer should know what they are buying. The more you know the less surprises you will have down the road. There is no substitute for a proper inspection by a licensed home inspector. You might be handy or have a handy friend, but the home inspector is experienced in identifying problems and potential problems so you can make an informed decision about moving forward with the sale.