Why it’s smart to get qualified BEFORE you start looking at homes.

the more you knowSo you have been looking online at homes. You end up seeing one that is everything that you have been wanting. You call a Realtor to show you the home. You go and see the home and you fall in love. You want to submit an offer, then it hits you…THIS HOME IS OUT OF YOUR PRICE RANGE! Unfortunately, this tends to happen when people start the home buying process. Everyone is eager to start looking at homes, but they fail to get their ducks in a row and line up their financing before they start looking. It is a lose/lose situation when you start the home search before you get your financing in line, and I’ll tell you why.

One of the most important steps of buying a home is making sure you are qualified to purchase a home. The last thing that you want to happen is to fall in love with a home then come to find out that you can’t afford it, or there is something preventing you from buying a home in general. There are many benefits to getting pre-qualified or pre-approved for a home. When you are ready to submit an offer, the sellers will know that you have already done the work beforehand to obtain financing and that you are a qualified buyer. This can also help you with the negotiation when buying a property. There are 2 main people that you need to become comfortable with and trust during this process, a Realtor and a loan officer. Ultimately you want to work with a great, and I emphasize great, Realtor that has local knowledge and can negotiate a fair price for you. Another must when buying a home is make sure you are working with a loan officer that knows their stuff. Sure, any bank has a loan officer that is getting paid a tiny salary, sits behind a desk all day and will tell you exactly what you want to hear. That’s easy! Make sure you are dealing with a professional who knows the ins and outs of the mortgage business in order to find you and your family the best program possible. Often times, what you want to hear is a lot different than what you need to know, so work with someone who will guide along the right path the first time around.

Here are some of the items that you should consider gathering together when you want to start the home buying process, and believe me, your loan officer will LOVE YOU if you are well prepared. Again, this is just some brief information and each situation can be different, but if you have the majority of this ready to go, you’ll be in great shape.

  • Identification ( State IDs or Driver’s License or Passport)
  • Most recent pay stubs for the past 30 days
  • Most recent 2 years of Federal tax returns and W2s or 1099s (if you’re self-employed, let them know because there is additional requirements that will be needed)
  • Recent bank statements for the past 2 months
  • Homeowner’s insurance agent name and number
  • Addresses of any additional properties that you own
  • **If applicable** Divorce decree/Bankruptcy discharge paperwork/Child support order

All of this is information that is extremely useful because it will help your loan officer better comprehend your current financial position and see if you are eligible to purchase a home. Also, let the loan officer know how much you are comfortable with spending. I hear way too often that a loan officer will issue a pre-qualification for a set price and it’s a price way higher than what the buyers want to spend. The way I look at it is that I want to put people in a mortgage that is comfortable for them, so it doesn’t matter if you qualify for a $400,000 home if you are only comfortable spending $250,000. So make sure you are prepared with how much you are comfortable spending for the down payment and for your monthly mortgage payment.

Now to the meat and potatoes of my blog! If you want a no-nonsense, straight to the point, knowledgeable loan officer with access to some of the best programs in the industry, then you need to look no further. OK, well maybe a little bit further. First, you need to contact me and I will give you a FREE home financing analysis to see if I can get you qualified to make that first step.  Secondly, I work with some of the area’s top Realtors and I can put you in contact with them to help you find your dream home. Next, we close your loan and you move into your home. Finally, because both the Realtor and myself were so good at getting you the perfect home, the perfect loan and amazing service all you need to do is refer your friends, family, co-workers, heck even strangers, over to us so that we can help make their dreams come true as well.

Now I want to offer you all something else that is completely FREE! You can download my free mobile app for your cellphone. It has a ton of resources at the palm of your hands. You can search homes, local schools, taxes, mortgage payments, rates and a bunch of other cool stuff absolutely FREE, all you have to do is  CLICK HERE.

Now that you’re a little more prepared for your home search, leave me some feedback below on what you want me to blog about next. Be on the lookout every Monday for a new blog post, and thanks for reading!

 

These things can hurt your chances of getting your mortgage approved

the more you know

Let’s face it, that beautiful home you have been eyeballing is calling your name. You want the home, you like the home, but most people don’t want the mortgage that comes with the home because of the “dreaded mortgage process.” It’s not as hard to obtain a mortgage as some might think. So let me tell you about a few things that can and will hurt your chances of obtaining a mortgage. Then, I’ll tell you how to make the process easier.

  • Do not open new credit cards or new credit accounts.
  • Do not switch jobs during the mortgage process without contacting your loan officer.
  • That new car/truck/SUV you have been looking at? Don’t buy it!! (Adding on new payments to your credit will raise your debt-to-income ratios and could prevent you from obtaining your mortgage.)
  • Looking for new appliances, TV’s, furniture and other furnishings for your new house? WAIT! Do not buy anything or charge anything during the process. (Adding these payments to your credit will affect your mortgage approval.)
  • Do not pay your bills late! (It doesn’t take rocket science to realize this can hurt you.)
  • Do not deposit cash into your bank account. (Funds need to be sourced and cash does not leave a very good paper trail, so don’t deposit it!)
  • Not disclosing information or providing inaccurate information to your loan officer. (Things like addresses to properties that you own, child support payments, prior bankruptcy, prior foreclosure, IRS tax liens, just to name a few, will impact your approval.)

The easiest thing that you can do is be completely upfront with your loan officer about your finances, credit, assets and anything else related to purchasing a home. It is 10X’s easier to catch any potential road bumps upfront, instead of during the mortgage process. This will create fewer headaches for you, the Realtors, your loan officer and anyone else involved during the loan process.

Most people make the lending process way harder than it has to be. There is a process to everything. Anyone who has obtained a mortgage has gone through it in some way or another. Make sure you work with the right people, make sure you have all of your ducks in a row before you start looking at homes and most importantly get your lender the documents that they need when they request them.

If you can accomplish 100% of what I suggested in this article, the chances of your mortgage experience going smoothly will increase exponentially.

Now, you didn’t think I was going to give you mortgage advice and not ask you contact me now did you?

Want to buy a home? Looking to purchase your home quickly? Hassle-free? Get a great program? Then what you need to do is click this link and download my FREE Mobile App! It is your 24/7 real estate resource and it has all of my contact information within the application.

Best of luck on your new home purchase!

Ed Stojancevich 219-973-6644 call/text me today!

Ed@AMMortgageGroup.com

Click here to view my website. www.RockstarRealEstates.com

 

SOLD – 5104 Brookstone Ct, Indianapolis

Stories of SOLD - Jennifer Blandford's Zionsville Real Estate Blog

5104 BrookstoneLindsey was REALLY frustrated with the process of selling her house.  Neither of her two prior agents had been able to sell her adorable little house.  But then neither had performed any advertising whatsoever – not even the most basic methods! There was no flyer box, there was just one open house after Lindsey had begged. The photos online were terrible and dark.  One of her prior agents even stood her up for a scheduled appointment because he was on the golf course and forgot.  Wow.  She got Jennifer’s contact info from a friend, and the rest is history.  Jennifer handled the listing of Lindsey’s adorable home in her usual manner, and an acceptable offer was received within 21 days.  Just a simple amount of attention was all Lindsey needed to get that house sold.  She told Jennifer later on that she was “blown away” by the effort that was put…

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Housing Affordability Edges Higher in First Quarter

Great article! Housing affordability was up in the first quarter. Home prices are climbing and now may be the most opportune time to buy a home, you’ll get the most “bang for your buck.”

Eye on Housing

Slightly lower median home prices along with steady mortgage rates contributed to higher housing affordability in the first quarter of 2014, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). In all, 65.5 percent of new and existing homes sold between the beginning of January and end of March were affordable to families earning the U.S. median income of $63,900. The HOI in the fourth quarter of 2013 was 64.7 percent.

HOI Q114

The national median home price dipped from $205,000 in the fourth quarter to $195,000 in the first quarter while average mortgage interest rates were virtually unchanged, moving from 4.54 percent to 4.57 percent in the same period.

Syracuse, N.Y. was the nation’s most affordable major housing market, as 93.7 percent of all new and existing homes sold in this year’s first quarter were affordable to families earning the area’s median income of $67,700.   Other major…

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Millennial Buyers and Baby Boomers

Dream Coldwell Banker

Today’s buyer profile is shifting and two demographic groups are emerging as interesting case studies – Millennial buyers and Baby Boomers.

Coldwell Banker Agent Gianna Burdioffers her perspective on these two growing buyer segments:

Millennial Buyers
According to recent report by the National Association of Realtors, millennial homebuyers (age 33 and younger or born 1980-2000) are on the rise, currently accounting for 28% of today’s buyers. Gianna has had personal experience dealing with millennial buyers and makes the following observations:

  • MillenialsMillennial buyers want to be “in town”, meaning close they want to be close to a town’s downtown area where they have easy access to public transportation, shopping and dining. “My last 10 transactions have all been with young buyers who are adamant about finding a home close to a downtown area,” said Burdi.
    • Millennial’s are very motivated when they look for a home and desire as…

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Changes in Mortgage Guidelines

Indiana Home Loans

Indiana Home Loans

So if you are in the market to either purchase a home or refinance your current home, you need to be aware of some of the new changes that will be rolling out come January 10th 2014. The CFPB (Consumer Finance Protection Bureau) put together new regulations regarding mortgage lending. Home mortgages will have to pass a series of tests in order to ensure they are a qualified home loan. Loans can not exceed 30 year term, the APR cannot exceed 1.5% more than the annual prime offer rate, there cannot be negative amortization, and points and fees cannot exceed 3% of the loan balance in order for these to fall within the qualified mortgage guidelines and will fall under safe harbor which prevents the borrower from suing the mortgage company because they can not pay the loan back.

Lenders will also have to  perform a series of verification for ATR (Ability to Repay). The ability to repay consists of a series of requirements that have to be met by the borrower and verified by the lender, including but not limited to income and debt levels. There are 8 different factors that Lenders must look at before issuing a mortgage.

  1. Current or reasonably expected income or assets (other than the value of the property that secures the loan) that the consumer will rely on to repay the loan
  2. Current employment status (if you rely on employment income when assessing the consumer’s ability to repay)
  3. Monthly mortgage payment for this loan. You calculate this using the introductory or fully indexed rate, whichever is higher, and monthly, fully amortizing payments that are substantially equal
  4. Monthly payment on any simultaneous loans secured by the same property
  5. Monthly payments for property taxes and insurance that you require the consumer to buy, and certain other costs related to the property such as homeowners association fees or ground rent
  6. Debts, alimony, and child support Obligations
  7. Monthly debt-to-income ratio or residual income, that you calculated using the total of all of the mortgage and non-mortgage obligations listed above, as a ratio of gross monthly income
  8. Credit history

Along with some of the above factors listed, the maximum debt-to-income ratios have been lowered as well which can lower the purchase power of potential homeowners. For more information or for any further questions you can always contact me, I’ll be glad to answer anything that you have for me. Thanks for reading!

 

Neighborhood Features to Examine Before Buying a Home

Dream Coldwell Banker

Location, Location, Location

Location, Location, Location! An obvious and important aspect of buying a home is looking at the home itself, but another, and sometimes forgotten, is exploring the neighborhood. Limited amenities and services, unkempt communities and noisy neighbors can curb a home sale, and to avoid moving into an area that lacks the features owners are looking for, it’s important that buyers examine the community as closely as they do the house.

There are several features to examine when looking at a neighborhood and it can be helpful if buyers have a clear idea of what they want in a community.

Amenities

Individuals may have a specific set of amenities they want their community to have, which may vary based on their family size, age and lifestyle. For example, individuals with young children may seek out a neighborhood with parks and playgrounds, while other demographics may want more cultural features and entertainment…

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Translating the Language of Real Estate

To most 1st time home buyers, real estate can be confusing and overwhelming, especially with the real estate terms and numbers, but it shouldn’t have to be. Purchasing a home and selling a home are big steps in most peoples’ lives so it is important to stay informed. Feel free to contact me anytime with your real estate needs, and I will be happy to discuss your questions in terms we can all understand and make the process as easy as possible. Find me on Facebook @ http://www.facebook.com/RockstarRealEstates

Dream Coldwell Banker

Guest blogger: Matt Dobbe, Regional Marketing Coordinator, Coldwell Banker Residential Brokerage – Wisconsin Region

Funny bubble of real estate abbreviations

As someone new to the real estate industry, I’ve learned that buying a home is more than just bed and bath counts. It’s waterfront property, big yards, BICCs and a friendly neighborhood. It’s FSBOs, REOs and contracts and paperwork…A lot of paperwork.

It probably shouldn’t have surprised me, but I didn’t realize how much had to be signed, approved and permitted when buying or selling a home. I also didn’t know that all real estate agents were fluent in more than one language: The Language of Real Estate. The Language of Real Estate consists largely of acronyms and abbreviations and if you happen to be one who’s not fluent in Real Estate, deciphering what a certain acronym or term may mean can make it seem like you’re trying to crack a decades long real estate code; similar to…

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