29
Jun
By First Rate Financial Group
Mortgage

You Are A Serious Buyer: How To Show It

You Are A Serious Buyer: How To Show ItToday, the housing market is as hot as it has ever been. There are many people who are missing out on their dream homes because they are having a hard time competing with countless other people who are in the same position as them. If you want to put yourself in the best position possible to win a bidding war, you might be thinking about paying cash for your home; however, not everyone is in the same financial position. There are a few other ways for you to show a seller’s agent that you are serious about your offer.

Get A Pre-Approval Letter

This is arguably the most important step you need to take if you want your offer to be taken seriously. One of the reasons why sellers like cash offers is that they know that they do not have to worry about the buyer’s financing falling through. If you get a pre-approval letter from a lender, the buyer will know that you already have financing in place. If you want to go the extra mile, get a pre-approval letter from a local lender. If you get a better loan offer from a different lender down the road, you can always switch lenders at that time. 

Be Prepared To Pay Some Closing Costs

Traditionally, the seller is responsible for paying closing expenses; however, if you want the seller to pick your offer, consider shouldering some of those closing expenses. This will not have a long-term impact on your mortgage rate or monthly payment, but it could help you secure your dream home. You do not necessarily need to pay all of the closing expenses, but even paying a small percentage could go a long way. 

Put Down More Earnest Money

A lot of sellers are nervous about what the inspection might show. They don’t want a buyer to back out at the last minute. If you put down more earnest money, you can show a seller that you are serious because there will be a lower chance of you pulling your offer if the inspection reveals a few repairs. You should talk to a real estate professional about how much earnest money you should include for your offer to be considered competitive. 

28
Jun
By First Rate Financial Group
Mortgage

The Top Things To Know When Refinancing Your Home

The Top Things to Know Whne RefinancingIf you are thinking about refinancing your home in the near future, you probably know that this is a great way to shorten the term of your mortgage while also saving money. At the same time, refinancing your home does not come without risks. Take a look at some of the top things you should do and what to avoid before you go through the refinancing process.

Do Check Your Credit Score

Always check your credit score before you begin the refinancing process. A surprising number of credit reports contain errors, and you need to correct any errors on your credit report before you apply for a new home loan. If you do not correct the mistakes ahead of time, you could end up with a higher interest rate on your new home loan than you should.

Don’t Forget To Think About Closing Costs

You need to consider closing costs before you apply for a home refinance. Just because interest rates have gone down doesn’t necessarily mean you will save money. In general, if you can get a home loan that is at least a half of a percentage point lower, you should save money when compared to the closing costs you will owe; however, you should always do the math to calculate your break-even point. 

Do Think About The Equity You Will Have Left

If you complete a cash-out refinance, you need to calculate the amount of equity you will have left after the refinancing process is complete. While you might want to conduct a cash-out refinance to cover a major home repair or renovation, you do not necessarily want to completely deplete the equity in your home. You could end up with a very high-interest rate if you do so.

Don’t Forget To Talk To Your Lender About All the Options

When you refinance your home, you have multiple options available. You can tap into the equity in your home, reduce the size of your mortgage payments, or shorten the term of your loan. You should think about your goals and decide which option is best for your needs. Always talk to an expert before completing the refinance process.

23
Jun
By First Rate Financial Group
Mortgage

A Home Loan For an AirBnB Property: What To Know

A Home Loan For an AirBnB Property: What To KnowIf you are looking for a way to diversify your investments, you might be thinking about buying a rental property. One of the most common rental options is AirBnB. Given the number of people who use AirBnB, this could be a great way to generate a steady stream of short-term renters. On the other hand, can you take out a loan to buy an AirBnB property?

There Are No Mortgages Specifically For AirBnB Properties

First, understand that there are no home loans available specifically for AirBnB or VRBO properties. If you go to a lender and ask for an AirBnB loan, they will direct you to a traditional investment property mortgage. Regardless of whether you want to do short-term loans through AirBnB or a long-term loan that you handle on your own (or through a formal property management company), the mortgage you will apply for is the same. What are the options you have available?

Options For An AirBnB Property

If you want to rent out an AirBnB space, you have a few options. First, you could always consider renting out a room in your primary residence. This could be a less expensive way for you to start generating some income through AirBnB.

Or, you can apply for a traditional investment property loan through a mortgage company. This loan uses the value of the investment property as collateral. The process of applying for this new mortgage will be similar to the process of applying for your first mortgage, but the lender may require you to put more money down. 

Finally, you could also move and buy a multi-family property, such as a duplex. Then, you could live in one of the units while renting out the others. This could be a nice middle ground between the other options.

Consider Using AirBnB To Generate Rental Income With Your Own Rental Property

These are a few of the top options available if you want to use AirBnB to generate rental income. It is one of the most popular rental apps, and the process of applying for a loan for an AirBnB property is the same as applying for a loan for any other type of investment property.