Happy New Year! Each year offers different challenges to both buyers and sellers. If you’re thinking about either buying or selling a home, educating yourself about home mortgages is imperative. Take a look at what you need to know about buying and selling the property so that the process is smooth and streamlined.
Buying or Selling a Home: What You Need to Know About Mortgages
Almost everyone has been either a renter and homeowner at different points in life. Each property has starkly different costs. Before you bid on any property, understand the costs involved with obtaining mortgages and making a home purchase. These fees typically include:
- Property taxes
- Homeowner’s association fees
- Mortgage insurance, also know as PMI Insurance
Owning real estate will cost more than your average rental charge. However, you’re investing in your future. For the most part, properties grow in value as you pay down the mortgage.
Consider your current costs for rent. Work with your real-estate agent to calculate those additional costs. Some budgeting refinement may be all that’s necessary to fit your finances with a home purchase.
Pull Those Documents
Buying a home is a huge purchase. I had to search for all of my financial documents to qualify for a loan. Be proactive by organizing your paperwork before applying for a home mortgage. You’ll need pay stubs, tax returns and other documents that prove your assets versus liabilities.
You should take advantage of this organization period by also checking your credit history. If there was an incorrect item or dispute over a claim within the past, you should have this resolved before applying for a loan. Your credit will determine the loan’s amount, which equates to the type of home that you’ll ultimately afford.
Lock in a Rate Now
In the past few years, we’ve seen loan rates bottom out at 3 percent. These values aren’t extremely generous anymore, however. As soon as you can, lock in an interest rate with your lender. By the end of 2018, rates may rise (therefore decreasing the amount you can borrow).
If you already own a home, refinancing might be an option. Obtain a certified appraisal of your property. Buying and selling property also includes refinancing to gain a better monthly payment.
Take Your Time During Open Houses
The Dallas/Ft Worth real estate market is hot, we’ve seen inventory shortages in the past where either home sold quickly or the bids were sky-high for the smallest properties. You’re in luck during 2018 because more homes are becoming available at a record pace. With this fact in mind, take your time with each open house. Be picky about your choices. From flooring types to estimated property taxes, these details should be mulled over with a lot of thought. You’ll end up with a dream home for less money than you ever thought before.
When Dealing With Mortgages, Honesty Is The Best Policy
Avoid a dispute by being honest and transparent as either a buyer or seller. Work with fair bids that benefit both parties because the transaction will move rapidly through escrow as a result. Everyone wants that dream home, and I know you can be successful in 2018 with a little knowledge and courtesy towards others.
