Wednesday, April 25, 2012

Tips for Home Buyers

So we are going down the real estate highway which by the way is the biggest purchase most of you will ever make in your lives, so here are a few tips to make it has painless as possible. A) Get a pre-approved mortgage before hiring a realtor, that way your not wasting yours and the agents time looking for a home above your means B) Get your finances in order, first examine your credit report ( scores range from 220-800 of course the higher the better and easier to qualify for a mortgage) and be prepared for the down payment on the mortgage to your lender of choice (5-10%) and also closing costs which is an additional 5% + of the amount paid for your abode ( legal fees, deed transfer tax, fuel adjustment, moving costs, power hookup, tax adjustment, fire/homeowners insurance, maybe water quality/septic field testing and so on....lets not forget about appliances and curtains etc   C)  Do your homework on what you want in a home;
features from how many bedrooms/bathrooms, size of yard, age of home, etc. D) Don't become "Mortgage Poor" and take on too much as you don't want to be living on the edge each month and have nothing left to enjoy life. E) Know your move in date, also when your lease ends or if you can sublet till your home is ready.  F) Get a professional house inspection and if possible a warranty from the builder/seller to cover any defects for the first few years. G) Be realistic as you may never find your perfect home. Good Luck!

Friday, April 6, 2012

Self Employed and to get a Mortgage

So you want to be a home owner, but working for yourself its tough to convince lenders your business is a good as you claim it is (lol). They will use the average income of the last 2yrs to determine the amount you can borrow and equally important the interest rate which the loan will be at.  What to do you ask?...first is to give up some of your deductions, perhaps forward them to a following year like your depreciation of equipment, travel expenses, medical etc. This will bring your income up and get that debt to service ratio in the right direction but on the down side your tax bill will be higher, but hey something got to give hahaha. Ask others in your type of business who they use for a mortgage broker, a person that would know your industry and its quirks. A savvy agent can get around roadblocks that some banks put up or maybe even use private lenders. Finally, having more than the minimum down payment will make any lender take notice plus your eliminate
the high mortgage insurance fees.               Happy House Hunting!!