Here are a few tips for dealing with the financing your new home.
Get pre-approved. By getting pre-approved as a buyer, you can save yourself the grief of looking at houses you can’t afford. You can also put yourself in a better position to make a serious offer when you do find the right house. Unlike pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history and a necessary step to make an offer unless you are buying with cash.
Choose your mortgage carefully. Used to be the emphasis when it came to mortgages was on paying them off as soon as possible. Today with student loans as hight as they have ever been it may be easier to opt for the 30-year mortgage instead of the 15-year. Additionally, mortgage interest rates varry depending on the loan type as well as the term. Let your realtor help you find a mortgage agent who can discuss your options and give recommendations based on your credit history and individual needs. Additionally, when picking a mortgage, you usually have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for a lower interest rate. If you plan to stay in the house for a long time—and given the current real estate market, you should—taking the points will save you money, but all these numbers a mortgage agent can provide so you can make a informed decision.
Do your homework before bidding. Before you make an offer on a home, do some research on the sales trends of similar homes in the neighborhood, or better yet, ask your realtor to help you. Considerations of similar homes in the last three to six months as well as how long the property has been listed. For instance, if homes have recently sold for 5 percent less than the asking price, your opening bid should probably be about 8 to 10 percent lower than what the seller is asking. I can help you with negotiating a sale, let me help you find your dream home!