31
Mar
By First Rate Financial Group
Mortgage Tips

Advice For Purchasing A House On A Single Income

Advice For Purchasing A House On A Single IncomeEven though a lot of people have two incomes they can use to purchase a house (theirs and their partner’s), this is not necessarily required. There are lots of people who want to take advantage of current interest rates to purchase a house, and some people are trying to do it on their own. Even though it can be a challenge to buy a house with only one income, it is certainly not impossible. There are several tips that can make it easier for everyone to afford a house with just a single income. 

Always Check Your Credit Score

If you want to buy a house on a single income, make sure you check your credit score first. Your credit score is a reflection of your financial health. The higher your credit score is, the better your chances of having your loan application approved. You can check your credit score for free once per year from any of the major credit bureaus. You need to know what your credit score is and you need to correct any inaccuracies on your credit report before you apply for a home loan. 

Explore Government Loan Programs

Next, if you are buying a home for the first time, you should explore government loan programs. For example, you might be able to apply for an FHA loan, which could allow you to purchase a home for as little as 3.5 percent down. That way, you do not necessarily need to save up a 20 percent down payment to buy a house. Depending on your location, there could be other government loan programs that can make it easier for you to buy a house.

Ask For a Co-Signer To Help 

Even if you plan on paying for the mortgage yourself, you may find it easier to buy a house if you have someone who can co-sign for your loan. This is particularly helpful if your credit score isn’t quite high enough to qualify for a loan. As long as your co-signer has a solid credit score, they might make it easier for you to get your loan application approved. Furthermore, you might be rewarded with a lower interest rate than you could otherwise get on your own. 

 

29
Mar
By First Rate Financial Group
Mortgage

How To Transfer The Funds To Buy A House

How to Transfer Funds to Buy a HouseIf you have made an offer on a house and gotten it accepted, congratulations! This is a major step, but you might be wondering how you actually pay for a house. The days of showing up to the closing table with a personal check are in the rearview mirror, as nobody wants a check for a house to bounce after the other person has already walked away with the keys. Furthermore, even if you are buying a house with cash, you certainly do not want to show up with a briefcase full of dollar bills. Here is how you will actually pay for the house. 

Wire Transfer To The Closing Attorney

When you purchase a house, you will send the funds for the down payment and the closing costs to your closing attorney. Typically, the seller has a preferred closing attorney they want to use, and you should be contacted by the closing attorney several weeks before the closing date. They will also give you a finalized document specifying exactly how much money you need to wire to the office to cover the down payment, any fees, and the closing costs. You will also need to go to your bank to arrange the wire transfer. The bank will also verify you have enough money in the account to cover the expenses. 

Monthly Mortgage Payment Gets Drafted Automatically

If you are financing the purchase of a house through another lender, you will need to set up an automatic draft payment with the lender. Even though there are some lenders who will allow you to send a physical check every month, most will encourage you to set up an automatic draft payment out of your checking account. After the sale closes, you will typically have at least one month before you need to make your first mortgage payment. The lender will help you arrange the mortgage draft payment prior to that time. 

Make Sure To Wire The Money Prior To Closing

You should try to wire the money to the closing attorney before the closing date. That way, you will offer any hiccups along the way. If you don’t wire the money in time, the sale could fall through, which can create complications you would rather avoid.

15
Mar
By First Rate Financial Group
Mortgage

What Are The Top Signs You Need To Refinance?

What Are The Top Signs You Need To Refinance?You might have heard that more people are refinancing these days. During the refinancing process, you essentially take your current home loan and replace it with a different one. You can reduce your mortgage payments, shorten the life of your loan, or withdraw cash you can use for other purposes. What are a few of the signs that indicate you should consider refinancing? 

You Can Secure A Lower Interest Rate

If you think you can secure a lower interest rate on your mortgage, it might be time to refinance. There are a number of reasons why you might be able to get a lower interest rate on your home loan. Your credit score may have improved, you may have paid off some of your other loans (which will improve your debt to income ratio), or the average home loan interest rate may have dropped. If you can get a lower interest rate on your home loan, you may want to refinance and save money. 

Your Income Has Increased Significantly

If your income has gone up significantly since you purchased your house, you might want to pay off your house more quickly. Therefore, you might want to refinance and use larger payments to pay down your home loan more quickly. The bank might also give you better terms if you are willing to make larger payments.

You Are Concerned About Your ARM Mortgage

If you have an adjustable-rate mortgage (ARM), you might be concerned that the interest rate on that mortgage could go up. Therefore, you can refinance your home and convert your ARM mortgage to a fixed-rate mortgage. If you can lock in an interest rate with a fixed-rate mortgage, you do not have to worry about your interest rate increasing in the future. This could save you thousands of dollars over the life of the loan. 

Consider Refinancing Your Home

These are just a few of the signs that you should consider refinancing your mortgage. Everyone is in a slightly different financial situation, so you should work with a professional who can figure out if this is right for you. That way, you can secure the best possible terms for your home loan.