How to manage stress during the house hunt?

Buying a home can be extremely stressful, even if you aren’t looking to buy “right now”. The process can be tough. Here are a few tips to take into consideration and manage your stress during the house hunt.

Know what you want

Before you start looking take some time to think of what you want it a home. We suggest making a list, perhaps creating a pros and cons list! This way you can communicate with your realtor and set the guidelines before the search begins.

Start looking in advance

Give yourself enough time to look at houses and settle the idea of potentially calling a place your new home. Don’t wait till you NEED to find a home. This little step will remove a large portion of the stress and will also help avoid any “impulse” decision making.

Get pre-approved

We suggest getting pre-approved for your mortgage loan in advance. This will save time and ensure you are good to go! If you don’t manage to get pre-approved this will give you some time to clean up your credit score and finalize what kind of budget you have when looking for your new home.

Be a note taker

After checking out homes and going to a few open houses you may start to forget what interested you on a specific property. We recommend taking notes at every property to help you compare and contrast when making the decision. Note down key selling points, location, surrounding areas, and things that you did not like.

Don’t get attached

Don’t fall to hard when you think you found the home for you. Keep the sentiments out during this process; avoid planning out furniture, baby bedrooms and such for now. There is a chance that someone may purchase the house before you or have a better offer. We suggest keeping a casual attitude and keeping your options open.

New Year, New Homeowner Tips

Welcome the new year with a new home! As one of the biggest investments many of us will make is buying a home, mistakes can be costly. In order to help new homeowners here are some useful tips that will help you begin the home buying process.

Determine how much home you can afford and what you would like your payments to be – Before you start looking for a place to call home, strategically think about your price range.

Check your credit – This can determine your interest rate and loan terms, check to see if there are any errors that may be bringing your score down. You can also take a look at what opportunities you have to improve your credit, such as paying any large outstanding debts. You can also avoid opening any new credit accounts during the mortgage process to keep you score up.

Know that there will be closing costs – In addition to saving for a down payment, you should budget for an additional 2% and 5% of your loan amount. These costs can be lowered by negotiating with the seller or your real estate agent’s commission.

Money for after move-in day- Set aside a buffer to pay for what will fill you home; furnishings, appliances, rugs, updated fixtures, new paint amongst other things.

Consider HOA- decide what type of property you are looking to purchase, be sure to research and ask if there are any homeowners associate fees (HOA) on the home.

Pick the right neighborhood- take a look at local safety and crime statistics, proximity of the nearest hospital, pharmacy, grocery store and other amenities you will frequently use. It is recommended to also research local schools, even if you don’t have kids as this affects the home’s value. You may also drive through the neighborhood on various days at different time to see how traffic, noise and activity levels are.

Be prepared to compromise- nothing is perfect, think carefully as to what you are willing to compromise and what you wouldn’t.

Schedule your Purpose Funding consultation- take some time to speak with one of our mortgage experts and learn about the different options that fit your needs. Our Mortgage Experts can look at your situation and structure the loan to your specific needs and situation.

The Differences Between the 15-year Fixed Rate VS. 30-year Fixed Rate

When it comes to Mortgage loans, rates, and terms, there are many options. Today, we will discuss the two most common loan options; The 15-year fixed rate and the 30-year fixed rate.

In the United States, the 30- year fixed rate is usually the most preferred type of mortgage loan. According to a report by the Mortgage Bankers Association, most people that seek mortgage loans tend to apply for the 30- year fixed rate over the 15-year term loan because of the difference in the monthly payment amount. The 15 year will yield a higher monthly payment, which makes it seem less affordable on a monthly basis and thus, is less preferred.

When it comes to discussing which of these two mortgage loan options are better, it is of great importance to fully have a grasp of the differences between these two and understanding the stability of your income. While the monthly payment amount may be one significant difference, there are other considerations which highlight their differences from another perspective.

Although the monthly payment on a 30-year term loan is considerably less as compared to a 15 year, in actuality, the shorter term of a 15-year makes the loan cheaper on several fronts.  Over the full life of a loan, a 30-year-mortgage will end up costing more than double the 15-year option. Generally speaking, interest rates are also lower on 15-year term loans. So, the savings are compounded – lower interest rate over a shorter period. When it comes to the payment plan for a 15-year fixed rate, the mortgage isn’t “stretched out” in comparison to the 30-year mortgage. With a 15-year fixed rate mortgage, loan payments are heavy on principle, light on interest, and finished in 180 months. Overall, a 15-year is a great option for clients with higher, and more stable income.

The 30 year fixed rate is a mortgage payment option that allows an individual to spread the payment over a 30 year period. This loan allows the client to pay a lower monthly fee but comes at a higher interest rate, over a longer period of time. This option will help you maximize your home purchasing budget.

While we may not choose one mortgage term over the other, it is important for you to weigh the options carefully and discuss it with a mortgage expert before deciding on which to opt in for. If you’re in the market for a home loan or are interested in seeing if you can refinance to a lower rate, please reach out via our contact form below, or call to speak with one of our mortgage experts now (877) 922-3863.