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Tips For A Successful Closing
Hello Buyers and Sellers! Here are a couple short and sweet tips on having a smooth closing:
- Avoid "shifting" your money from bank accounts, credit cards etc, keep everything as is
- Maintain your current employment/income source, don't change jobs
- Respond quickly to all requests for information
- Keep residence, marital status, business ownership, etc. stable
- Do not obtain new debt – maintain your credit record and defer any major purchases aka don't go buy a new truck until AFTER you close on your house!
- Funds to close must come from the same verified accounts provided at time of applications, you can't have a last minute gift fund if you spend your savings so…. be careful what you spend!
I hope this helps you during your real estate transactions! Contact me if you have any questions, I'm here to help!
Have a great week!
-Aimee Slesk
How Lower Mortgage Insurance Effects YOU!
I have had quite a few questions lately on how the changes made in January to lower mortgage insurance actually effect your buying power (the amount you are approved for through a bank to purchase a home).
Example: In January if you were pre approved for $205,000 and have done nothing to improve/lower your credit score, your buying power is now $220,000. That is a $15,000 difference, and you didn't have to do anything. Pretty Aweome! If you have been house shopping online via redfin, zillow, or windermere, you know that $15,000 makes a substantial difference in the houses you are looking at.
Please contact me if you have any questions or would like to know more about the hows/whys and see how your buying power has changed since January. I am happy to help!
Cheers!
Why It Will Be Easier To Buy A Home In 2015
Happy New Year!
Home buyers get ready for some exciting news if you are thinking about purchasing a home this year!
1. Less Strict Credit Requirements: Since the housing market crashed a little while back, lenders have been extremely cautious in their qualifying buyers for a mortgage loan. They are now relaxing their credit requirements making it much easier to qualify for a home loan. Government programs are projecting an increase by about 1.2 million home loans given this year, exciting news for all you home buyers out there!
2. Even Lower Down Payments: Home buyers should be excited about both Freddie Mac and Fanny Mae's decision to lower the required down payment! They are lowering the required down payment to 3 percent! In 2014 they were 3.5 percent. This is an amazing down payment compared to numerous loan programs that require 10-20 percent down payment.
In addition to your monthly mortgage payment, most first time buyers are also required to purchase mortgage insurance. Some programs allow you to pay a few thousand dollars upfront but if you are unable to afford that, they will add it to your monthly mortgage payment. This can be a few hundred dollars a month! With the increased amount of mortgage insurance required for low and middle class buyers, it has become more difficult to afford a mortgage AND the additional couple hundred dollars of insurance a month. The now lower down payment requirements will help cushion the also required monthly mortgage insurance making it easier for buyers to purchase a home.
This coupled with the fact that credit score standards are allowing more wiggle room will help many more first time home buyers break into home ownership this year.
3. Rates Are Still Historically Low: It was projected by experts that by the end of 2014 the average rate would top around 5 percent. As of last week (years end), average rates on a 30 year fixed mortgage didn't even top 4 percent. According to Freddie Mac, they averaged 3.89 percent, an 18 month low! Before the end of 2015 they could eventually get up or pass the 5 percent mark but that is still historically a very low rate.
If you are a first, fifth, or tenth time home buyer and have questions, please contact me AimeeS@windermere.com . I would be happy to help answer any questions you have and get you started on your home buying process!
