Blog — Page 687 of 887 — First Rate Financial Group

13

Oct

Home Mortgage Tips

Planning to Get a Mortgage in 2017? 4 Reasons Why It’s Time to Start Paying Down Other Debts Now

Getting a Mortgage in 2017? 4 Reasons Why It's Time to Start Paying Down Other Debts Now Buying a home is an ideal investment for many people because not only is it a place that belongs to them, it can also be very beneficial financially. While you may be strongly considering buying a home for these reasons, it’s also important to be in good financial health so that your ideal home purchase is within reach. If you’re currently perusing the market for prospects, here are some reasons you should pay down debt before taking the leap into home ownership.

Good Credit History

The amount of your debt load and whether or not you’re paying off your minimum monthly payments has a considerable impact on your mortgage approval, so ensuring that you have good credit history going into the process is important. If you’ve had hiccups with your credit, make sure you go through your credit report prior to submitting your application to determine where you’re at.

Lowering Your Debt-to-Income Ratio

Whether or not you’ve heard the term, your debt-to-income ratio (DTI) has a significant impact on how much house you can afford. Made up of the amount of your monthly debt payment and current house payment, your DTI should be below a certain percentage as this will enable you to afford a higher home payment each month.

Shifting Interest Rates

Getting a mortgage is one thing, but interest rates add more to the monthly amount you’ll owe. A fixed-rate mortgage can seem like a good idea, but if interest rates are low you may end up paying more than you would on a variable rate, which can be hard to predict. As interest rates are a part of home ownership, having lower debt will enable you to deal with these additional costs.

Finding The Right Home

Putting your money into a home can be one of the best purchases you’ll make, but if you’re unable to afford the home you love, it can be a disappointing fact to face. While there are no assurances that paying down debt will enable you to afford your dream home, it can go a long way towards giving you more options that will fit your budget.

Buying a home can be a money saver in the long run, but if you’re struggling to keep up with your debt payments buying into the market can be more of a burden than anything else. If you’re currently paying down debt and considering a home purchase, contact your local mortgage professional for more information.

12

Oct

By support

Home Buyer Tips

How to Plan for a Smooth Move-in

How to Plan for a Smooth Move-in With all of the rigmarole that goes into packing up your old home and moving into the new one, there are a lot of details that can get lost in the mix. From cleaning up the old house to handing over the keys, there’s no shortage of small tasks that need to be completed. If you’ll soon be prepping for the exciting move into your next home, here are some ways to prepare yourself for this busy time.

Do A Spring Clean, Even When It’s Not Spring!

Spring cleaning may be something that people only do once a year, but it’s actually a great way to prep for the move you’re about to make. Instead of thinking on a smaller-scale though, you’ll want to hit every room in your house so there’s less to pack up come moving time. While no actual cleaning will be necessary until you’re moving out, this pre-clean is the perfect opportunity to discard unwanted items, shred old papers and drop off any old and unworn clothes in the donation bins.

Write And Review Your To-Do List

Whether there are supplies you need to buy before the big moving day or a few minor touch-ups that you’d like to complete on your house, start compiling a list of all the things you need to do before and on the day you’re scheduled to move. While these small details can add up to a lot of work, a list will mean that nothing is left behind or forgotten that can create extra headaches when there’s no time to deal with them.

Keep A Separate Box For Essentials

Many homebuyers get so excited about the premise of packing that they stick a lot of important items in a box and send them along on the moving truck, but a few boxes with the much needed essentials should be brought along with you. Whether its cosmetics or available food items, having the things you’ll need is the only way to ensure a bit of added comfort on your first night in your new home.

Packing up your stuff and moving into your new home is a considerable task, but by being prepared and doing a little cleaning in advance, you can make the process a little bit easier for you and your family.

11

Oct

By support

Home Mortgage Tips

The Pros and Cons of Using Your Savings to Make Your Full 20 Percent Down Payment

The Pros and Cons of Using Your Savings to Make Your Full 20 Percent Down Payment If you’ve been perusing the real estate market with the hope of purchasing a home, you may be aware that the often-touted amount you should put down is 20 percent. However, there are good things and bad things involved in investing so much money into your new home. If you’re wondering how to decide on your down payment amount, here are some things to consider before putting in 20 percent.

No Rainy Day Fund

It might seem like the best option is to put down as much as you can, and use up your savings if needed, but putting all of your money into your home can be a mistake. While you may not foresee any financial issues arising in the next few years as you pay down your mortgage, not having any extra money can put you in a vulnerable position if the market shifts or other life issues appear. Investing in a home is a good choice, but you may want to protect some of your other assets.

Lowering Your Monthly Payment

While putting down the full 20 percent can seem like a huge chunk of change, it can be a boon for your monthly finances in the sense that your monthly mortgage payment will be automatically reduced. While this is a good thing and can make your monthly amount more manageable, it’s important to remember that your monthly payments should be affordable and you shouldn’t be stretching for extra house because you can. Make sure you’re buying a home you can afford, with or without 20 percent.

Avoiding Mortgage Insurance

Putting less than 20 percent may seem like a good decision if you’re ready to buy a home and don’t quite have the money saved, but putting less down can actually increase the cost of your home overall. Because you’ll have to pay mortgage insurance if you put down less, this will add to your monthly payment and will be money that you can’t get back. If you’re ready to dive into the market, you may want to move forward, but it can also be a better investment to wait and save a bit more.

20 percent is often the magic number when it comes to a down payment, but there are pros and cons associated with putting this much money down. If you’re currently in the market for a new home, you may want to contact your local mortgage professionals for more information.