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The Advantages of a Pre-Approval

The decision to purchase a home can be an exciting but sometimes confusing undertaking. When beginning your search for the perfect home, there are a number of factors that you will want to consider. Whether you are a first time buyer or already own a home and want to move up, getting pre- approval for your mortgage is a necessary and time saving step. Here are some of the benefits of getting pre-approved!

Know Your Budget!

Getting pre-approved means that you will have a clear picture of the credit you have available to you to purchase your new home, as well as your price range. This will prevent you from spending time looking at homes that may be out of your budget and perhaps getting attached to a home that you cannot afford. It means that if you find the home that is right for you, it can more easily become yours!

Close Quickly

pt_18_28420_oGetting pre-approved for your mortgage means that you can act more quickly once you find the home that is right for you. The process of getting the mortgage approved is generally the longest and most complicated process in any home purchase. It requires verification of your income and employment, an evaluation of your credit reports, and the completion of a loan application. Having this step completed can save weeks of time in the closing process. Pre-approval also means that you have an advantage should a bidding war begin. The seller can be confident that you can afford the bid you are making and that you can move quickly to finalize the sale.

Overall, there are a number of benefits to getting pre-approval for your mortgage before beginning the search for your new home. Most importantly, it can give you peace of mind in knowing that you are ready and able to make the commitment to homeownership, and that you are not wasting your time in looking at properties that you may not be able to afford.

Pre-Approval vs. Pre-Qualification

There is a major difference between a pre-approval and a pre-qual. When a lender pre-qualifies you, they don’t dig too deep into your financials and could easily miss something that could greatly affect your ability to purchase a home. When you get pre-approved, the lender digs deep to get a really good idea of your financial status. Most sellers require that you present a pre-approval letter from your lender when you submit an offer, and most won’t even consider a pre-qualification because it is so vague.


Looking to buy or sell a home in the MetroWest area? Real estate agent Robert Brown of RE/MAX Executive Realty services areas such as Hopkinton, Hopedale, Milford, Upton, Mendon, and many more. To learn more about MetroWest real estate agent Robert Brown, please visit the Meet Your Agent page on SellMyMetroWestHome.com

Homes for Sale in Hopkinton, MA | Real Estate Agent in Hopkinton, MA
Homes for Sale in Hopedale, MA | Real Estate Agent in Hopedale, MA
Homes for Sale in Milford, MA | Real Estate Agent in Milford, MA
Homes for Sale in Upton, MA | Real Estate Agent in Upton, MA
Homes for Sale in Mendon, MA | Real Estate Agent in Mendon, MA

Should I Refinance with Interest Rates Being So Low?

With mortgage rates on the lower side, the choice to cash in and refinance your mortgage may be tempting, but before you make that decision here are a few facts to help you decide if it is the best financial choice for you and your family. Whether it is just to reduce the amount of interest you pay, or freeing up some income for other items or debts, there are several considerations to take into account. Here are the more popular options for refinancing your mortgage.

Fixed Rate Mortgages

If you like the stability of a fixed rate loan because of your budget can’t handle unexpected fluctuation, then now might be a great time to choose this option. With fixed rates lower than they have been in some time, this may save you money by either reducing your monthly payments or, if you keep your payment the same, reducing the principal on your loan.

Adjustable Rate Mortgages (ARMs)

img_page_breakevenIf you’re planning to stay in a home for only a few years, or your income can handle changing monthly payments, then you can get an ARM for significantly less than a fixed rate mortgage. Adjustable rate mortgages are also popular with people who may have difficulty qualifying for a loan at a higher fixed interest rate, as it lowers the monthly payment.

Home Equity Loans

When interest rates are low, it is a good time to take out a home equity loan. This may allow you to keep your home if you are facing financial problems.
It is also a great way to finance home improvements.

No matter what decision you make concerning the mortgage on your home, keeping your options open, arming yourself with up-to-date knowledge on the markets, and seeking the advice of professionals will keep your investment safe.


Looking to buy or sell a home in the MetroWest area? Real estate agent Robert Brown of RE/MAX Executive Realty services areas such as Hopkinton, Hopedale, Milford, Upton, Mendon, and many more. To learn more about MetroWest real estate agent Robert Brown, please visit the Meet Your Agent page on SellMyMetroWestHome.com

Homes for Sale in Hopkinton, MA | Real Estate Agent in Hopkinton, MA
Homes for Sale in Hopedale, MA | Real Estate Agent in Hopedale, MA
Homes for Sale in Milford, MA | Real Estate Agent in Milford, MA
Homes for Sale in Upton, MA | Real Estate Agent in Upton, MA
Homes for Sale in Mendon, MA | Real Estate Agent in Mendon, MA

Tips to Pay Off Your Mortgage Faster

Saving-for-a-HomePaying off your mortgage is one of the biggest financial goals of most homeowners, and retiring debt-free can certainly give your golden years a greater sense of financial freedom and stability. Whether you’re nearing retirement age or are just looking to reduce your largest debt load more quickly, here are some great tips for paying off your mortgage faster!

Principal Versus Interest

Essentially, to pay off your mortgage you have to reduce the principal owing on your property. There are really two ways you can do this without dramatically reducing your monthly budget.

Increase Your Monthly Payments

Even increasing your monthly payments by a small amount can take years off the life of your mortgage. You can also choose an accelerated plan whereby you can make weekly or biweekly payments rather than monthly. This will allow you to make a few extra payments each year. Combining these efforts can really have a surprising effect on the principal of your mortgage over a short period of time. There are a number of free online calculators that can help you figure out the exact numbers for your particular situation.

Reduce Your Interest Rate

If increasing your monthly payments is not an option, you can still pay off your mortgage faster by refinancing your mortgage to negotiate a lower rate. Keep your eye on the financial markets to gauge the best time to make this move, and seek out the advice of a real estate agent or financial advisor to confirm that this is a viable option for your current financial situation. If you have a good history of payment and an excellent credit score, finding a lender shouldn’t be a problem.

Make A Lump Sum Payment On Your Mortgage

Another way you can decrease your mortgage principal and pay off your mortgage faster is by making a large lump sum payment. If you have come into extra money, have received a large income tax return, or just have a considerable amount of savings, this may be a wise financial decision. It will also dramatically decrease the amount of interest you will pay over the life of your mortgage and thus save you money. Just be sure your mortgage does not include a clause that will penalize you, and then determine whether it is still a good choice before going ahead.

The satisfaction a homeowner feels when they make that last mortgage payment is really unmatched by any other financial achievement, and following these simple steps can more quickly make that dream a reality.


Looking to buy or sell a home in the MetroWest area? Real estate agent Robert Brown of RE/MAX Executive Realty services areas such as Hopkinton, Hopedale, Milford, Upton, Mendon, and many more. To learn more about MetroWest real estate agent Robert Brown, please visit the Meet Your Agent page on SellMyMetroWestHome.com

Homes for Sale in Hopkinton, MA | Real Estate Agent in Hopkinton, MA
Homes for Sale in Hopedale, MA | Real Estate Agent in Hopedale, MA
Homes for Sale in Milford, MA | Real Estate Agent in Milford, MA
Homes for Sale in Upton, MA | Real Estate Agent in Upton, MA
Homes for Sale in Mendon, MA | Real Estate Agent in Mendon, MA

Improving Your Credit To Get A Loan

Your credit is one of the most important factors in qualifying for a home loan, and it will determine what sort of interest rate you are able to get. That interest rate can make all the difference when it comes to how much home you can afford and keeping your payments within your budget. If you have some credit problems, it’s a good idea to try to improve your score before you buy a home. Here are some simple ways to do that.

Careful Use Of Credit

MK-BN883_SBCARD_G_20110727170236Credit cards are unsecured debt, and a lot of that type of debt can make lenders nervous. If you are carrying high balances on your credit cards, paying them down can make a big difference in your score. It will give you a better free credit to debt ratio and show that you handle credit responsibly.

When you are looking to buy a home, it’s a good idea to avoid taking on any new debt. Don’t apply for any more credit cards or increase the limits even if they are offered to you. Keep your credit stable and focus on paying off the debt you currently have.

Be sure to make all of your payments on time. Missed or late payments can hurt your credit score quickly.

Avoid Large Purchases

When you are trying to buy a home, it generally is not the time to take on a large loan for another big purchase such as a car, boat, or RV. These purchases will increase the amount of debt you have and make it more difficult to qualify for a loan. It will also likely affect the amount you are able to qualify for.

It’s best to save those types of purchases until after you have completed the home buying process. Getting loans like this off your credit is also a good way to improve scores. If you are able to, consider selling or paying off a car loan or other similar loan.

Pay Off Small Bills

Getting rid of some of the smaller items on your credit is a good way to improve things without having to put out a lot of money you don’t have. If you have a little bit left on a student loan, consider paying it off. The same goes for any outstanding medical bills or judgments against you.

The fewer items you owe on, the better your credit will look to lenders. Get a copy of your report before you start applying for loans, and clean up what you can. In the end it will make buying your home easier and more affordable.


 

Looking to buy or sell a home in the MetroWest area? Real estate agent Robert Brown of RE/MAX Executive Realty services areas such as Hopkinton, Hopedale, Milford, Upton, Mendon, and many more. To learn more about MetroWest real estate agent Robert Brown, please visit the Meet Your Agent page on SellMyMetroWestHome.com

Homes for Sale in Hopkinton, MA | Real Estate Agent in Hopkinton, MA
Homes for Sale in Hopedale, MA | Real Estate Agent in Hopedale, MA
Homes for Sale in Milford, MA | Real Estate Agent in Milford, MA
Homes for Sale in Upton, MA | Real Estate Agent in Upton, MA
Homes for Sale in Mendon, MA | Real Estate Agent in Mendon, MA

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FHA Loans – What They Are And Who Qualifies

In your house hunting you may have come across a mention of FHA loans. FHA stands for Federal Housing Authority, and the loans available through this program are designed to help people qualify for loans and purchase homes more easily. If you are wondering about getting an FHA loan for your home purchase, the first thing to do is to learn a little about them and find out if you might qualify.

FHA And HUD

The FHA is part of HUD—the U.S. Departmentmortgage-lump-sum of Housing and Urban Development. It exists to help people who might not otherwise be able to apply successfully for a home loan purchase a home. The FHA insures the loan against default, which means that if the buyer fails to pay the mortgage, the lender will not lose the money because the FHA will cover it.

Who Can Get An FHA Loan?

Just about anyone can apply for an FHA loan. There are no income level requirements, either on the high or low end, and even people with some credit problems can qualify. You will have to meet a certain credit level, however, and you must have a debt to income ratio that is acceptable for the program to prove you can pay the mortgage.

There are specific FHA loan programs for first time buyers, seniors, and people looking to purchase a “fixer-upper” home as well. The many programs can suit just about any buyer.

Limits With FHA Loans

The main problem many people run into is that the limit on how much you can borrow on an FHA loan may make it difficult to purchase the house you need. Allowable amounts are usually on the low end of the market, and it can make house hunting a challenge. If you are willing to take on a home that needs some work, you will probably have better luck with an FHA loan.

If you need to buy a home with a low down payment and are having a little trouble qualifying elsewhere, an FHA loan might be a good option for you. Every state has different laws and requirements for qualification, so check with your state to find out what the process will be. FHA loans can help people get into a house who might not otherwise have the opportunity to buy.


 

Looking to buy or sell a home in the MetroWest area? Real estate agent Robert Brown of RE/MAX Executive Realty services areas such as Hopkinton, Hopedale, Milford, Upton, Mendon, and many more. To learn more about MetroWest real estate agent Robert Brown, please visit the Meet Your Agent page on SellMyMetroWestHome.com

Homes for Sale in Hopkinton, MA | Real Estate Agent in Hopkinton, MA
Homes for Sale in Hopedale, MA | Real Estate Agent in Hopedale, MA
Homes for Sale in Milford, MA | Real Estate Agent in Milford, MA
Homes for Sale in Upton, MA | Real Estate Agent in Upton, MA
Homes for Sale in Mendon, MA | Real Estate Agent in Mendon, MA

Read more

The Advantages of a Pre-Approval

The decision to purchase a MetroWest MA home can be an exciting but sometimes confusing undertaking. When beginning your search for the perfect home, there are a number of factors that you will want to consider. Whether you are a first time buyer or already own a home and want to move up, getting pre- approval for your mortgage is a necessary and time saving step. Here are some of the benefits of getting pre-approved!

Know Your Budget!

Getting pre-approved means that you will have a clear picture of the credit you have available to you to purchase your new home, as well as your price range. This will prevent you from spending time looking at homes that may be out of your budget and perhaps getting attached to a home that you cannot afford. It means that if you find the home that is right for you, it can more easily become yours!

Close Quickly

Getting pre-approved for your mortgage means that youPre-Approval can act more quickly once you find the home that is right for you. The process of getting the mortgage approved is generally the longest and most complicated process in any home purchase. It requires verification of your income and employment, an evaluation of your credit reports, and the completion of a loan application. Having this step completed can save weeks of time in the closing process. Pre-approval also means that you have an advantage should a bidding war begin. The seller can be confident that you can afford the bid you are making and that you can move quickly to finalize the sale.

Overall, there are a number of benefits to getting pre-approval for your mortgage before beginning the search for your new home. Most importantly, it can give you peace of mind in knowing that you are ready and able to make the commitment to homeownership, and that you are not wasting your time in looking at properties that you may not be able to afford.


 

Looking to buy or sell a home in the MetroWest area? Real estate agent Robert Brown of RE/MAX Executive Realty services areas such as Hopkinton, Hopedale, Milford, Upton, Mendon, and many more. To learn more about MetroWest real estate agent Robert Brown, please visit the Meet Your Agent page on SellMyMetroWestHome.com

Homes for Sale in Hopkinton, MA | Real Estate Agent in Hopkinton, MA
Homes for Sale in Hopedale, MA | Real Estate Agent in Hopedale, MA
Homes for Sale in Milford, MA | Real Estate Agent in Milford, MA
Homes for Sale in Upton, MA | Real Estate Agent in Upton, MA
Homes for Sale in Mendon, MA | Real Estate Agent in Mendon, MA

Tips to Pay Off Your Mortgage Sooner

Want to pay off your mortgage more quickly? Use these tips:

  • Round up your monthly Indianiapolis-Mortgage-Payoffmortgage payment amounts. For example, if your mortgage bill is $1,175, pay $1,200 each month. Paying a little extra principal each month gradually lowers the interest you pay over the life of your mortgage.
  • Another method of paying extra is to take the amount of one mortgage payment and split it in to 12 smaller parts. Then, add one part to each of your monthly mortgage payments. Indicate to your lender the extra portion applies to the mortgage principal.
  • Set up an automatic payment for extra payments.
  • Refinance to lower your interest rate and shorten the term of your mortgage. Before you commit, confirm that the terms of the refinance save you more money than the cost of refinancing!

Mortgage accelerator programs are out there, but come with some major drawbacks:

  • Mortgage accelerator programs often require payment of hefty initial fees or the purchase of expensive software. Some mortgage accelerator programs cost up to $3,500 – money you could be using to pay off your mortgage yourself.
  • Mortgage accelerator programs require your total financial attention – all of your excess monthly income goes to paying off your mortgage principal.
  • Many mortgage accelerator program providers hold your money and make payments for you. If they make a late payment, you’re on the hook for extra interest, late charges and a negative mark on your mortgage payment history.

With a little budgeting and planning, you can avoid the use of an expensive middle-man and still achieve your early mortgage payoff!

Are you or anyone you know looking to buy or sell? Give me a call and set up an appointment today!


 

Looking to buy or sell a home in the MetroWest area? Real estate agent Robert Brown of RE/MAX Executive Realty services areas such as Hopkinton, Hopedale, Milford, Upton, Mendon, and many more. To learn more about MetroWest real estate agent Robert Brown, please visit the Meet Your Agent page on SellMyMetroWestHome.com

Homes for Sale in Hopkinton, MA | Real Estate Agent in Hopkinton, MA
Homes for Sale in Hopedale, MA | Real Estate Agent in Hopedale, MA
Homes for Sale in Milford, MA | Real Estate Agent in Milford, MA
Homes for Sale in Upton, MA | Real Estate Agent in Upton, MA
Homes for Sale in Mendon, MA | Real Estate Agent in Mendon, MA