Palm State Mortgage opened this topic in last week’s blog. You might want to read or review that Part One before continuing today on Part Two.
Although we hope you will read Part One again, we will quickly review how to save stress with our 7 Home Buying Steps, Part One:
1.Save Stress! In the number one spot was the idea that if you are entertaining the thought of buying a house at this time, it is good to talk to your spouse or partner, make compromises, and a plan to find one you would like to live in for a few years at least. This is not a good market for short sales.
2.Save Time! In second place, we advised you to sharpen up your credit scores, even before you go house hunting. We gave you some steps to help you do that
3. Save Money! In this step we told you how to save on stress, time and money by learning a formula to discover just how much you should spend when you do hunt for that special house.
4. In step four we discussed a savings plan for your anticipated down payment and your closing costs.
Introducing Your New Step Number 5
Now give you step number five, which asks, “What if you just cannot accomplish step four in regards to your down payment? First of all, analyze, “Why not?”
Is your inability to save a matter of cash flow, or are you just not using enough discipline? The need for saving this money causes a lot of buyers to become habitual renters, and prevents many homes from selling.
Save Some Time, But Be Cautious!
Sometimes, in certain locations, or in the case of first-time buyers, you can obtain reasonable down payment assistance programs. Use your city, and county to search for such programs and the search term “down payment assistance to determine your qualifications.
Your New Step Number 6: Save for Closing Costs
Depending on your location and financial situation, in a typical buyer’s market, did you know you can negotiate to have the seller pay a part of the closing costs? Discover some powerful tips about this special money-saving Step at an article by the Money Crashers.
For example they have stated that you could consider paying the full asking price. “In some cases, the seller doesn’t expect to get the original asking price. But if you were to offer the full asking price and request closing costs assistance, there’s a good chance the seller will jump at your offer and comply with your request for closing assistance.” Our advice is to do the math carefully before you consider this recourse.
Your Final New Step Number 7: Save Stress With Prequalification and Preapproval
We really hate to tell you this, but if you are simply living from paycheck to paycheck, a potential lender will find this out, and they won’t like it.
Lenders would most like to see that you have a few months’ worth of the mortgage payment in your savings account. This does not include the money you have ear-marked for closing or down payment.
Experts have said, “If you have 3 to 5 months’ worth of mortgage payments set aside, that makes you a much better loan candidate. And some lenders and backers, like the FHA, will give you a little more latitude on other factors if they see that you have a cash cushion.”
Congratulate yourself at this point because you found ways to save time, money and stress. You are ready for a house!
Likewise you can now put all your financial ducks in a row. Start your house hunting and get prequalification for a loan up to a certain amount.
Experts confide, “Preapproval takes prequalification one step further. The lender will contact your employer, your bank and others to verify your income, assets, debts and credit history, and then issue you a letter stating that your mortgage is approved for a certain amount within a certain time.
Dick Gaylord, broker with Re/Max Real Estate Specialists in Long Beach, California, and former president of the National Association of Realtors, stated, “The No. 1 thing is they better have everything in order,” says Dick Gaylord, “That means that, before the real home shopping begins, you want to get financing in place.”
That concludes your seven steps. Your prequalification, and then your preapproval will mean quite a bit of documentation. Palm State Mortgage Company reassures you that it will be invaluable to your success as a buyer. You see, lenders and sellers will be eager for your business because preapproval means you virtually have money in your hands.
Don’t worry. With your preapproval, Palm State Mortgage will help you shop for the best lender available. We specialize in helping people save time, stress and money on their way to home ownership.
A Palm State Mortgage Company Special Wish!
The loan professionals at Palm State Mortgage hope you have a Blessed and Happy Week. Mother’s Day is not long enough! We think Moms deserve to be honored all week long! Happy Mother’s Day–and Week!
