Homebuyer Tip: Speaking with a mortgage lender

Homebuyer Tips

From Catherine Mitchell, The Intentional Realtor®™,

Speaking with a mortgage lender is one of the first steps in buying a home

Buying a home can be a tedious process that involves lots of time, patience, and paperwork.  That is why it’s important to find a good 

Realtor® to be your Advocate throughout the process!  However one of the first steps in the home buying process is to speak to a mortgage lender.

Mortgage Lender

When it comes to finding a lender, shop around.  Talk to three or four lenders before deciding on the one that’s best for you.  This is a bit of a comparison shopping exercise to find out who charges what fees and what mortgage programs are available.  Did you know that this fall (2016) there will be $15,000 available to help first-time buyers qualify to purchase a home?  You want to be sure you have a lender who knows ALL the nuances available to buyers.

Housing Budget

A housing budget is a realistic assumption of what you can afford to pay for a home.  Your lender will be the primary resource for making this determination.  He or she will evaluate your current financial picture and give you the sales price you can afford.  Then you can give that information to your Realtor® and she will make sure you stay within your budget!

A good mortgage lender

Your lender will pre-qualify you for a mortgage.  Most sellers prefer that you are pre-qualified before they even consider an offer that you make on their home.  That is why it’s important to first find a good lender and get pre-qualified.

Connect with Catherine:

As the Intentional Realtor®™, my goal is to help you achieve the reality of homeownership.  I’ll do my best to help you find the perfect home that lies within your housing budget, which is why securing a good Realtor® is in your best interest to help you get the home of your dreams. 

  

For this and more real estate needs by the Intentional Realtor®™, connect with me, Catherine Mitchell, at (704) 898-0605 http://www.catherinemitchellrealty.com/ 

#connectwithcatherine

Homebuyer Tips: Down-Payment Funds

Homebuyer Tips

From Catherine Mitchell, The Intentional Realtor®™,

Down payment funds can come from savings, a gift, or your tax refund

Most first time homebuyers say that their biggest challenge when trying to purchase a home is saving money for a down payment. Not to worry, when it comes to funds for a down payment, your personal savings aren’t your only resources.  Instead, your down payment could come in the form of a tax refund or as gift from a family member. 

Income

Before a down payment from your savings, cash in the form of a gift from a family member, or funds from a tax refund, the potential homebuyer must first show adequate income to qualify for a mortgage loan. 

Most lenders want to see a strong income history, career trajectory, and a good credit score in order to qualify.  These requirements are called compensating factors and are very important to the lender in order to receive a loan. Once those factors are met then it’s time to talk about the down payment.

Down payment 

A down payment on a loan is required to be approved for a mortgage. There are a myriad of mortgage programs available.  The Conventional 97 Mortgage loan and the Home Ready Mortgage loan require 3% down; FHA programs require 3.5% down; and with a 20% down payment homebuyers can qualify for the lowest mortgage rates offered by their lender.  

There are also different home buyer programs that offer down payment assistance.  Your lender should be very well educated on all the programs available and will counsel you about the best program to meet your needs.  

Gift

You can also receive a gift from a relative to help cover your down payment.  Many homebuyers receive cash down payment gifts for the purchase of a home.  In fact first time homebuyers are the most likely to receive a cash gift.  A gift won’t affect a potential homebuyer’s interest rate. Although mortgage lenders will allow gifts from relatives on a down payment for an owner occupied residence, they will not for an investment property. 

Connect with Catherine:

As The Intentional Realtor®™, my goal is to help you achieve the reality of homeownership.  I’ll do my best to advise you on the loan process and to help you find the perfect home that’s right for you, which is why securing a good Realtor® is in your best interest to help you get the home of your dreams.   

For this and more real estate needs by The Intentional Realtor®™, connect with me, Catherine Mitchell, at (704) 898-0605 http://www.catherinemitchellrealty.com/

#connectwithcatherine

Homebuyer Tips: Homeownership is a great way to build wealth in America!

Homebuyer Tips

From Catherine Mitchell, The Intentional Realtor®™,

Homeownership is a great way to build wealth in America

Many people have a goal in life to become wealthy and there are many ways to acquire such wealth, from starting a business, investing in commodities, saving or if you’re lucky, winning the lottery!  One of the easiest and most underappreciated ways to build wealth is through homeownership.

Homeownership

Buying a home sets the wheels in motion for your investment to gain value.   The difference between what you owe on your home and the amount that your home is worth (what someone would pay for it in the current market) is your equity.  61% of a homeowner’s net worth is tied into home equity.  As you pay down your mortgage loan, equity increases.  Equity in your home contributes positively to your financial well-being.

Wealth

There’s no better substitute for building wealth than homeownership.  Homeownership has the ability to offer financial security and stability.  Once a mortgage is paid off on a home you have complete financial freedom.  With that freedom you have a variety of options.  You can enjoy living in your home that you own free and clear, you can sell, or you can rent.  With no mortgage payment you now have extra income that you can save toward building wealth to go along with the value of the home itself. 

American Dream

Being a homeowner is part of the American dream. Leverage that dream into growing your wealth!  The average net worth of a homeowner is 36 times greater than a renter, making homeownership a great financial investment for your future.

  

Connect with Catherine:

As The Intentional Realtor®™, my goal is to help you achieve the reality of homeownership.  I’ll do my best to find the perfect home for you that will help you to obtain wealth, which is why securing a good Realtor® is in your best interest to help you get the home of your dreams.   
For this and more real estate needs by The Intentional Realtor®™, connect with me, Catherine Mitchell, at (704) 898-0605 http://www.catherinemitchellrealty.com/

#connectwithcatherine

Homebuyer Tips From Catherine Mitchell, The Intentional Realtor®™

Homebuyer Tips

From Catherine Mitchell, The Intentional Realtor®™,

A homeowner’s net worth is 36x greater than a renter’s

According to the Federal Reserve in their Survey of Consumer Finances, the average net worth of a homeowner is $194,500. However, the average net worth of a renter is only $5,400 which makes the net worth of a homeowner 36 times greater.  A gap that is expected to keep widening as the years go by.

A homeowner’s net worth:

Homeownership is a great way to build wealth, with home equity being a major factor to wealth building. To own a home over the long term generally creates an appreciation of value; i.e. the home becomes worth more than you paid for it.  Plus, with each payment you make, you're chipping away at the mortgage loan which also grows your equity. This equity is available to you when you sell.  You can use it to buy your next home, pay off debt, or take a vacation!  The equity contributes to your overall financial picture and has a positive influence on your net worth.  

A renter’s net worth:

Rental payments helps the landlord’s net worth.  For the renter there is no growing equity, no wealth building via homeownership.  The landlord, who is more than likely the homeowner, benefits greatly from the renter. Not only is the renter contributing to the homeowner’s equity, but the renter is almost certainly paying more for rent than the actual mortgage payment which again contributes to the homeowner’s wealth. 

Benefits of Homeownership:

Buying a home is a good financial investment.  All the benefits go to the homeowner, while the renter has none.  Hopefully, your goal is to be a short term tenant on your way to becoming a long term homeowner!

Connect with Catherine:

As The Intentional Realtor®™, my goal is to help you achieve the reality of homeownership.  I’ll do my best to find the perfect home for you so that you too can reap the benefits of homeownership, which is why securing a good Realtor® is in your best interest to help you get the home of your dreams. 

  

For this and more real estate needs by The Intentional Realtor®™, connect with me, Catherine Mitchell, at (704) 898-0605 http://www.catherinemitchellrealty.com/

#connectwithcatherine