How To Lower Closing Costs

How To Lower Closing Costs

Closing costs help facilitate the sale of a home and both buyers and sellers pitch in. Some closing costs can be paid before the home is officially sold and others are paid at the end. 

 However, closing costs aren’t set into stone and they can be negotiable. You can ask your real estate agent or lender with help in estimating your actual closing costs. Look over everything to make sure all the numbers are right and then you plan accordingly in how you’re going to lower them.  

Loyalty Programs
  Some banks offer assistance to buyers when they use them to help pay for the purchase. It’s a way for a bank to reward loyal customers. 

 Closing at the End of the Month
 Schedule your closing at the end of the month so you don’t have to pay the per diem interest for so many days.  Get Multiple Quotes Get estimates from different lenders because you’re looking for the best package of closing costs and interest rates. There might be something better out there.  

Junk Fees
There may be some fees a lender charges that may be negotiable, such as origination fee, processing fee, or application fee. Make sure to ask if what you are being quoted is the best they can offer.  

Title Costs 
Sometimes title insurance and settlement are bundled together. You may be able to find a title and settlement company that is less expensive. 

 Negotiate With the Seller
You can try to negotiate with the seller in paying for some of your closing costs. Buyers can ask for credit or to cover lender expenses during the offer and negotiation process

Tips on buying and selling your home at the same time

Tips for buying and Selling at the same time! 

Either buying or selling a home can be extremely stressful, it can be even more overwhelming if one is trying to do both at the same time. Adding in the additional stress of moving now having to sell first to move or is it the other way around? In an ideal world, you'd buy a new home, move, and then, and when all the dust settles deal with the turmoil of selling. But for most people, that's totally unrealistic. Not only does it cost significantly more, since you'll be paying two mortgages, but sellers might be quick to judge if you're holding on to your current home.  The good news is that this happens all the time and by following a few simple tips, both buying and selling can be a seamless process. 

Tips for Buying and Selling at the Same Time

Contract Contingency: Buyers can request that their new home purchase be dependent on the successful sale of their old home. If you're looking in a competitive market, this may not be a good option; however, if the seller of your intended home has had difficulty attracting interest, this may be a good deal for all parties involved-assuming you can convince them that your home will sell quickly. 

Bridge Loans: A bridge loan allows you to own two homes simultaneously if you don't have deep pockets for a second down payment. This option is especially attractive if you'd planned to sell your home first and use the proceeds to buy the second. It functions as a short-term loan, intended to be repaid upon the sale of your original home. 

(Make sure to talk to your agent and lender to know what is best for your individual real estate needs)

The good news is that you’re planning to move any way. Before you list your home for sale, why not start packing now? Take personal items and excess furnishings and pack them up and move them to storage. Not only will your home look larger and neater, you are getting a start on the move. 

Next make sure your agent, understands the timeline and requirements. There are many standard contingencies which can protect you from owning two homes at once, or none at all. Not only can the purchase of your new home be contingent on successfully closing on your current one but you can also reverse the process and ensure you find a replacement before the close as well.

 Finally, get the entire family involved. Be excited about the change and create a moving plan in which everyone has a task and there is a plan for the move itself. By taking a few initial steps, moving can be fun and easy. 

Having the right person representing you can be the difference between calm smooth process and a nightmare. Don't sell yourself short by not being protected and advised in a huge home purchase and sale. It is essential to be advised by the best. 

Contact me Today to help you ease your anxiety and let me navigate the market for you! 

Tips To Raise Your Credit Score

TIPS TO RAISING YOUR CREDIT SCORE

We are coming into a new year and a new year bring new Dreams! To achieve those dreams you first need to have steps to achieve it. If that dream this year is purchasing a new home? Then setting goals early on can help you achieve your dream, even if you are not planning on hitting the mark until later in the new year. 

It is important to remember when it comes to your credit score it can be said it is often like losing weight; it takes time and there is no easy quick fix to correct it. It is always best to manage your credit score responsibly over time. 

Buying a new home is an exciting time. It can also be stressful if you are unsure about your credit or know that your credit is not as high as you’d like it to be. Your credit score is one of the biggest factors in how much of a home loan you can qualify for and the interest rate you’ll pay. The good news is there are easy ways to increase your credit score.

 By following a few tips, you can make sure your report accurately reflects your use of credit and create a plan to improve your scores if necessary.

• Check for Errors - Errors on a credit report is very common. Make sure that everything is current and accurate. A report from the Federal Trade Commission stated in 2012 that one in five consumers had at least one error on one of their credit reports. You are entitled to one free credit report a year, start off the new year getting the report and checking over it to make sure there isn't anything that is a mistake. 

 • Pay Down Credit Card Debt – One of the easiest ways to boost your score is to lower your credit card balances. Aim to have no more than 50% of available credit in use.

 • Remove Negative Accounts – If you have old collections or bad debt, negotiate with the creditor to pay some/all of the debt in exchange for removing the record. Remember though that by paying off a collection debt doesn't mean it will automatically be taken off your credit score. It can remain on your report for up to 7 years. 

 • Keep Old Accounts Open – About 15% of your score has to do with how long you’ve had credit accounts. Do not close any accounts trying to find a quick fix way to correct debt. Doing so may backfire and hurt your credit score. 


It is easy to get started but as our busy lives begin it can easily be put in the back of our minds when life and bills begin to come in. There are some helpful tools available to help you stay on task with your New Years Goal! 

By setting up payment reminders - Making your payment on time is crucial step in maintaining the perfect correct history. Often banks can set up alerts for you to remind you of upcoming payment due dates. You could set up auto pay monthly with your payments being automatically taken out of your budget each month at a set time. 

With these steps it can be a starting point to achieve the credit score you are wanting to get the best rate and mortgage payment on your new home. 

Create a budget plan and stick to it. With out a plan in place achieving a goal can get hard. Don't give up! Like I mentioned earlier it takes time and anything worth while can. So create a plan this new year and picture yourself achieving home ownership.
 Contact me or your local mortgage lender to help you achieve this goal in 2019. We are here to help and give you the right tools to make purchasing a home easy. 

Happy New Year! 

Down Payment-How Much Will You Need?

DOWN PAYMENT-HOW MUCH WILL YOU NEED?

    Gone are the days when anyone could buy a home with just a promise and signature. No documentation loans allowed virtually anyone to buy a house with no money down with just a simple credit check. After the mortgage meltdown, this all changed. Lenders tightened guidelines and down payments were back. 

But how much do you actually need? Must you always find 20% down? The answer might surprise you; there are many ways to buy a home with less than 20% down payment.

  

 0% Down – There are still two loan programs which allow one to buy a home for no down payment; the VA loan and the USDA loan.

 -The VA loan requires the borrower to be a qualified service person or veteran and the USDA loan is for certain areas under the Department of Agriculture.  

 5% Down – Conventional loans with loan limits can allow one to buy a home with as little as 5% down. These loans do have PMI (Private mortgage insurance) which can be eliminated when the loan amount falls below the 20% threshold.  

3 ½ % Down – FHA offers first time home buyers a good home loan for only 3.5% down payment. Again these loans have loan limits and PMI but offer a faster entry into the housing market.  

It's important to know that if you are buying a home with less money down, know that your mortgage payment will be higher than if you put more money down. The three drivers that inflate a mortgage payment are:

1.Interest Rate

2.Larger Loan Size

3.Private Mortgage Insurance (PMI)

Buying a home doesn’t always mean 20% loan. Although many lenders like 20% down payments but most first-time buyers put down much less. Just keep your eye on the fees. The down payment is not the only upfront money you have to deal with. There are loan closing costs and earnest money to consider as well. (we will get into more detail about earnest money in next weeks blog post)

It is tempting to go with the lowest all-in upfront charges when trying to buy a home. But the key to building net worth is to buy smart, especially when it comes to such a large purchase as a house. 

Lenders are required to disclose all fees and it's always a good idea to shop around with multiple mortgage providers in your area to get your best deal. Plus, the more you explore your options, the more you'll learn about the process. 

 If you’re considering buying a new home, talk to myself or your lender about your options.