It is often said that buying a home is the most significant purchase you will make in your lifetime. It’s a major financial commitment and an important milestone, so you want to get it right. This means doing some homework and seeking professional guidance. A real estate agent can assist with your home search, but what about securing a loan? How do you find a mortgage professional you can trust to consider your best interests, help you select the right product, and guide you through each step of the home financing process? The following tips will help you conduct a thorough and efficient search for a lender you can rely on to help make your dreams of homeownership a reality!
One benefit of owning your home is that you might qualify to borrow against it, and if so, the interest on your borrowing cost is tax deductible. A “home equity loan” can come in handy when you need funds for home repairs, debt consolidation, college tuition and more.
Qualifying for a mortgage can be more complex for someone who does not have pay stubs and a W2 form to verify consistent income. If you’re an entrepreneur with your own business and fall into this category, don’t worry—there are loans for you. You just need to know how to navigate. I asked RPM’s EVP, Julian Hebron, to explain how specialized loan products serve the specific needs of self-employed home buyers.
For any company where professional reputations and customer relationships matter, social media is the sensible place to put marketing efforts and budget. For relatively little budget, audiences can be micro-targeted and reached easily on all devices. Individual experts can put forth their unique selling propositions, beyond the reputation of a corporate brand, in spaces where friends and friends of friends are paying attention. According to statistics portal company Statista, personal recommendations and consumer opinions posted online are the most trusted forms of advertising, so a strong online reputation is critical.
Purchasing a home is an overwhelming experience. So many emotions, decisions to make, financial data to gather, papers to sign, and new vocabulary to decipher. Do you ever feel like the home buying process requires fluency in another language or maybe a secret decoder ring?
It’s smart to begin your search for a new home with a pre-approval letter. The pre-approval is more in-depth then a pre-qualification letter, which does not include a credit analysis. In order to provide a pre-approval, your lender will pull your credit, analyze your income and asset documentation, and calculate your debt-to-income ratio, resulting in a reasonably accurate estimate of your spending limitations. This will give you a good idea of what you can afford and may give you an advantage over the competition.
Paying off your mortgage is an exciting financial milestone. But, are you prepared to do it properly? Here’s a simple checklist to guide you through the process.
As former Fed Chairman, Ben Bernanke, recently found out firsthand, the mortgage process can be complicated and unforgiving. But when it comes to the credit report, are there still options to correct and improve initial findings so the end result might be loan approval or a better interest rate? Absolutely. One of the ways we accomplish this re-evaluation of the credit score is through a process known as a rapid rescore.
Here at RPM, we see a fair amount of high loan-to-value mortgage scenarios – meaning lower down payments with more borrowed from the lender. It’s because the real estate values in our service areas tend to be high and it can take a while for buyers to save the funds needed to purchase a home. So 10% down payments (or even less) are not uncommon and we see them across the borrowing spectrum, from the conforming range (below $417,000) all the way to homes exceeding $1 million. Some buyers also need a boost in their income to be able to meet the debt-to-income ratio requirements to qualify for a loan.