28
Sep
By First Rate Financial Group
Home Mortgage Tips

Speed up Your Mortgage Closing Process With This Handy Four-step Guide

Speed up Your Mortgage Closing Process With This Handy Four-step GuideAre you in the market for a new house or apartment? If you are financing the purchase by taking out a mortgage, you’ll want to know how to make this transaction run as smooth as possible. In today’s article, we’ll share a quick four-step guide to speeding up the mortgage closing process.

Step #1: Check In On Your Credit Score

The first step before applying for your mortgage is to check in on your credit. Request a copy of your credit score and history from one of the major reporting firms. Go over this report, paying close attention to any old or outstanding items that you may have already dealt with. Many individuals have old delinquencies that must be challenged to be removed from the report, so take care of these first before applying.

Step #2: Have All Your Documents Prepared

As with any loan, taking out a mortgage requires a small mountain of paperwork. The best way to speed this process up is to have all of your financial documentation ready for inspection and use by the lender.

Note that each mortgage provider has different requirements for what you’ll need. A brief list of some items which are commonly requested includes your current employment details, recent pay stubs, recent W-2 forms or tax returns, proof of self-employment or other means of income, asset details such as bank accounts and investments and debt information such as other mortgages, student loans and more.

Step #3: Have An Offer Ready

If you have already settled on the home that you want to buy, it’s best to get your offer prepared in advance of being fully approved for mortgage financing. Your real estate agent will be able to help with crafting an offer that is subject to the home passing an inspection. It’s especially important to have an offer ready in the event that other buyers are competing for the same home that you are.

Step #4: Get The Inspection Finished Promptly

While your lender is completing the home appraisal process, you should be having the home inspected. Getting the inspection completed promptly will prevent any delays due to problem areas that might be uncovered. For example, a pest problem like termites may need to be dealt with, or minor repairs to the roof structure may need to be scheduled.

Following the steps above will help to ensure that your mortgage closing process goes as smoothly as possible. To learn more about your mortgage options or to get the pre-approval process started, contact us today. Our friendly mortgage professionals are happy to assist.

27
Sep
By First Rate Financial Group
Mortgage

How Can You Invest in Real Estate?

How Can You Invest in Real Estate?Many people believe that investing in real estate is something reserved only for the super-wealthy. In reality, this is not the case. Investing in real estate is a smart idea because property can generate a consistent cash stream while providing significant capital appreciation combined with tax breaks. There are multiple ways to invest in real estate, and no single path is better than the others.

Consider Real Estate Investment Trusts (REITs)

A real estate investment trust is a low-cost alternative to buying an entire property. Usually shortened to REIT, this is a company that allows investors to pool their money together before the company purchases multiple properties. REITs bring in money by renting, leasing, or selling the properties they own. Instead of individual investors having to purchase properties on their own, they can pool their money with other investors, reducing the barrier to real estate investing. 

Rent Out Residential Properties

When people think about real estate investing, this is usually the first thing that comes to mind. You can purchase a residential property and rent it out to people. This generates recurring income that can cover overhead expenses tied to the house, such as the mortgage. Then, as the property goes up in value, you build wealth. You can decide to rent the property out for short-term stays, which is a popular option with a vacation home on the lake or the beach. Or, you can have long-term renters if you want more income security.

Think About Flipping Houses

If you have ever watched a TV show about houses, you have probably run into flippers. This is the practice of purchasing a distressed property, fixing it up, and then selling it for a significant profit. If done correctly, you can make a lot of money with a much shorter time horizon; however, this requires a lot more time and effort, as you will need to coordinate a lot of contractors to fix the property and list it in a reasonable time frame. 

Consider Investing in Real Estate

These are just a few of the many ways you can invest in real estate. Think about the benefits and drawbacks of each option, and decide which is best for you. 

 

22
Sep
By First Rate Financial Group
Home Mortgage Tips

Saving for a Mortgage Down Payment? 4 Tips That Will Help You Get There Faster

Saving for a Mortgage Down Payment? 4 Tips That Will Help You Get There FasterFor most people, the idea of saving more money each month is enough of a burden without having to think about investing in a home. A down payment, however, will require a lot more saving know-how and a lot more in liquid assets in order to be able to buy. If you’re trying to find ways to save a bit more each month, here are some sure-fire tips for raising the extra funds.

Re-consider Your Commute

Outside of rent, there are few things that will cost as much money as owning your own vehicle, so instead of holding on to yours, you may want to consider putting it up for sale. While a vehicle costs a lot in gas, there are also costs for maintenance, insurance and parking that quickly add up. By foregoing this expense, you can easily save significantly!

Stick To Your Budget

It might sound like a silly tip, but actually sticking to your budget can make a big difference in how much you’ll save. While most people have a few rules to live by, writing down every receipt and monitoring the things you overspend on can make a marked impact on your surplus when all’s said and done.

Cut Down On Coffee & Lunch

With the hustle of everyday life, many people run out for coffee or lunch every day and forget that these costs add up over time. Instead of spending $5 or $10 here and there, take your coffee to go and make your lunches at the start of each week. It may not seem like much, but this can easily add up to hundreds in just a short time.

Change Your Phone Plan

Many people think that all of the conveniences that come along with a smart phone are a necessity, but data can come at a high price and it may not be worth paying. Instead of eating a high monthly phone bill, talk to your provider about what deals they can offer you and what you can cut back on. It may seem small at first, but it will add up to a lot by the year’s end.

It can seem insurmountable to try and save up enough for a down payment, but the little things that you spend on each day can easily add up. If you’re currently on the market for a home and are considering your saving options, contact your trusted mortgage professionals for more information.