Blog — Page 752 of 887 — First Rate Financial Group

31

Dec

Home Buyer Tips

Did You Know: Here’s Why Buying a New Home Grows Your Wealth Faster Than Renting

Did You Know: Here's Why Buying a New Home Grows Your Wealth Faster Than Renting There can be many downsides to both renting and buying, depending on what side of the coin you are on, but if you’re leaning towards purchasing a home it can have added benefits for your bank account that renting does not. While renting can certainly alleviate many of the costs that go along with property ownership, here’s why purchasing a home can have positive monetary affects in the long run.

The Good Impacts of Inflation

While inflation is often seen as a dirty word, a real estate purchase can see the positive side of inflation with how your home purchase investment will grow over the years. Putting money into rent will mean that money is gone and out the window once you’ve paid for the month, but investing into a property will come back to you in future gains that are made in the real estate market. While buying a home will be more expensive in the short term, it can also provide you with greater financial flexibility and equity in the future.

Renovations Will Increase Home Value

While changing up the bathroom or the paint on the wall in your apartment isn’t going to add any extra lining to your wallet when you move out, making upgrades to a home that you own will have the very opposite effect! Renovations can certainly be unpopular while they’re taking place, but no matter how small or large, they can mean an easier sell and a higher profit when the home finally goes on the market.

The Opportunity For Rental Property

An apartment you rent won’t offer opportunity for investment if you’re away from your home for an extended period of time, but a home you own may serve as an ideal investment property at some point in the future. With the success of Airbnb and unique modern housing needs that may only require a home rental for a short period of time, being able to use your house as a rental property can be a significant boon for earning money you would have otherwise been without.

Buying a home can require a lot of number crunching in the beginning that rent does not, but it can also provide significant financial benefits down the road that might not exist without such a purchase. If you’re considering purchasing a home in the near future, you may want to contact your local mortgage professional for a review of what would work best for your situation.

30

Dec

By support

Home Buyer Tips

Three Things You Can Expect when Buying a Home This Winter

Three Things You Can Expect when Buying a Home This Winter When you’re looking into purchasing a home, there are plenty of things to watch out for at any time of the year, but there are a few things that you can expect during the winter months that may be a little different than other seasons. If you happen to be on the market for a home and are thinking of buying, here are three things you may want to consider for the winter buying months.

A Little Bit Off The Top

While there is significant home buying that goes on throughout the fall, it’s often the case that things slow down in winter with the often unruly weather and the busyness of the season. As a result, if you’re planning on making an offer during these months, you may be able to swing the home seller a couple thousand dollars in your direction to garner a bit of a discount. Though there are no assurances, it’s quite likely that the home seller will want to get their house off the market before springtime comes around.

A Speedier Approval Process

With the amount of properties being bought and sold in the winter months slightly lower than the rest of the year, you may be able to take advantage of a speedier approval process for your mortgage. Since there will be fewer client approvals to sort out, you may be in the clear shortly after you’ve decided on the home of your choice. This means more ease in the winter months for you, and a home you’ll soon be able to call your own.

An Effective Heating System

There may be certain upgrades you’ll want to make shortly after arriving in your new home, but if you decide to buy in the winter months, overhauling the heating system is not going to be one of the things you’ll want to worry about. If the furnace in good working order and is maintained on a consistent basis, you should be good to go; however, if any upgrades will need to be made you’ll want to clarify this with the seller before signing on the dotted line.

There are many factors in winter that can lend to a slow season for the real estate market, but there are a few things you can expect that may make buying a home in the winter months a worthwhile venture.

29

Dec

By support

Home Mortgage Tips

Understanding Mortgage Pre-Approvals and How to Avoid Being Declined for One

Understanding Mortgage Pre-approvals and How to Avoid Being Declined for One The mortgage process is a long and complicated one, with a number of similar-sounding terms that can easily confuse first-time homebuyers. A pre-approval is not the same thing as a pre-qualification, and it’s important to understand everything that goes into a pre-approval. Being declined during the pre-approval process means you’ll have a hard time getting the funds you need to buy your home, so it’s important that you know what the process is going to look like before going into it.

How does a pre-approval work, and how can you make sure you won’t be declined? Here’s what you need to know.

What Is A Mortgage Pre-Approval?

A mortgage pre-approval is a step that happens somewhere near the start of the home buying process. Being pre-approved means you have a preliminary loan commitment from a mortgage lender. Pre-approval isn’t necessarily a guarantee that you’ll get a mortgage, but rather, a statement that if all goes according to plan, your lender will most likely issue a mortgage to you.

Pre-approvals can make the mortgage process shorter and easier, but they’re not legally binding. If you later find a better mortgage through another lender, you don’t have to take out a mortgage through the lender that pre-approved you.

What Do You Need To Be Pre-Approved?

In order to be pre-approved, your lender will need to evaluate your finances and your ability to pay for your mortgage. You’ll want to meet with your lender and provide them with bank and creditor documents that clearly show your income, your assets, and your debts. You can expect your lender to run a credit check on you in order to determine your employment status and verify that you’ve accurately reported your finances.

If you meet your lender’s criteria, you’ll receive a commitment letter that states what size of a mortgage your lender is willing to give you.

Red Flags: Sure Signs That You’re Destined To Be Declined

You can be declined for a mortgage pre-approval for any number of reasons. If you have a poor credit score, a high debt-to-income ratio, or a low or unstable income, you likely won’t meet the lender’s minimum borrower requirements – and you’ll be declined. To avoid being declined for a pre-approval, you’ll want to ensure you always pay your bills on time, negotiate with your creditors to pay off your debts, or boost your income.

A mortgage pre-approval can help you to narrow your home search and access a mortgage loan. That’s why it’s important to ensure you don’t get declined during the pre-approval. Contact a mortgage professional near you to learn more about the pre-approval process.