Svetlana Sheinina

Posted by Svetlana Sheinina on 12/26/2017

If you plan to buy a house, you'll want to apply for a mortgage before you launch your house search. That way, you'll have your finances in order and can narrow your home search accordingly.

Ultimately, there are several steps that you should take prior to applying for a mortgage, and these are:

1. Check Your Credit Score

A bank or credit union likely will analyze your credit score as it reviews your mortgage application. However, you can find out your credit score free of charge before you kick off the mortgage application process.

You are eligible to receive a free copy of your credit report annually from each of the three credit reporting bureaus (Equifax, Experian and TransUnion). Submit a request for your credit report today, and you can receive comprehensive insights into your credit history.

2. Examine Your Earnings and Debt

How much you currently earn and your outstanding debt could play pivotal roles in your ability to acquire a favorable mortgage. Thus, you'll want to examine these factors closely so that you can better understand how lenders will view your mortgage application.

Also, if you have lots of outstanding debt, there is no need to worry. If you allocate the necessary time and resources to learn about your debt and pay it off, you can increase the likelihood of obtaining a favorable mortgage.

3. Establish a Budget

Although a mortgage may prove to be essential to buy a house, it is important to consider various homebuying expenses as well.

For example, you may need to pay closing costs, home inspection fees and other expenses throughout the homebuying process. If you're worried about having the necessary finances to cover these costs, you may want to start saving money for them as soon as possible.

It often helps to account for the costs associated with cable, electricity, internet and other home must-haves too. The aforementioned homeownership expenses can add up quickly, but those who plan ahead can ensure they have sufficient funds available to cover these costs.

As you prepare to search for a house, it usually is a great idea to hire a real estate agent. This housing market can help you prepare for each stage of the homebuying cycle and ensure you can achieve your homebuying goals.

Typically, a real estate agent will meet with you and find out what you want in a dream house. This housing market professional then can keep you up to date about residences that match or exceed your expectations.

Perhaps best of all, a real estate agent understands that no one should be forced to overspend to acquire their ideal residence. As such, this housing market professional will make it simple for you to discover a terrific house at a budget-friendly price.

Lastly, don't hesitate to reach out to a real estate agent for guidance before you apply for a mortgage. With a real estate agent at your side, you can learn about lenders in your area and find one that can provide you with the financing that you need to purchase your dream house.

Tags: Buying a home   Mortgage  
Categories: Uncategorized  

Posted by Svetlana Sheinina on 10/10/2017

Purchasing a home is a sign of new financial responsibility for many people. The leap into homeownership is a big and important step. Finding a home and securing a mortgage isnít easy. Getting ready to take on a mortgage can require a lot of research and education on your part. Before you get too confused, youíll need to learn the basics of a mortgage and what you should know before you apply. 

Be Prepared

This is probably the best advice for any first time homebuyer. Find some good lenders in your area. You can sit down with a lender and talk about your goals. The bank will be able to explain all of the costs and fees associated with buying a home ahead of time. This way, youíll know exactly what to expect when you head into a purchase contract without any surprises. 

Whatís Involved In A Loan? 

Each mortgage is a different situation. This is why meeting with a lender ahead of time is a good idea. Your real estate agent can suggest a mortgage lender if you donít have one in mind. No one will be happier for you than your real estate agent if you have a smooth real estate transaction. Youíll be able to walk through the mortgage process step by step with a loan officer and understand the specifics of your own scenario.

What Youíll Need For A Mortgage

Thereís a few things that youíll need to have ready before you can even begin searching for a home. 

Cash For A Down Payment

Youíll need to save up a bit of cash before you know that youíre ready to buy a home. Itís recommended that you have at least 20 percent of the purchase price of a home to put down towards your loan initially.   

A Good Working Knowledge Of Personal Finances

You should have an understanding of your own finances in order to buy a home. Not only will this help you save, but it will help you to ensure that youíre not going to overextend yourself financially after you secure the mortgage. To get your finances in order, honestly record all of your monthly expenses and spending habits, so you know exactly what you can afford.   

The Price Range Of Homes Youíre Interested In 

If you have an idea of what kind of home youíd like, it will make your entire house shopping experience a lot easier. Youíll be able to see exactly what you can afford and how much you need to save. When your wish list equates to half-million dollar homes, and you find that you can only afford around $300,000, you donít need to go into shock! Itís good to have an idea of how much house you can afford and what it will get you. When you do a little homework, youíll discover that buying a home isnít such a hard process when youíre prepared!

Posted by Svetlana Sheinina on 6/13/2017

Lower mortgage rates make it feel sensible and smart to take out a second mortgage. Doing so, gives you more equity. It enlarges your real estate footprint. Unless you rent out upscale properties, places like beachfront houses and condos in a major metropolis, taking on more housing debt could set you back.

How you might open up and live after you put your mortgage behind you

It could leave you with no other choice except to work longer hours or take on another job to cover the second mortgage. You'd gain more property, another investment that could serve you financially in ways that you don't expect.

You'd also be missing out on a lot of freedom. There's so much to gain from a mortgage free life. Check this out. Pay off your mortgage and you could:

  • Pick a spot on the map that you are excited about visiting and exploring, pack your bags and head off for that very place.
  • Visit your adult children three to four times a year. Enjoy day trips in cities that your children reside in. It's a great way to get out, meet new people and learn.
  • Return to school and get the graduate certificate, license or degree that you want.
  • Cut back on the numbers of hours that you're working. Pull back on your overtime, potentially shifting your work hours downwards from maybe as many as 80 hours a week to 40 or fewer hours a week.
  • Pursue your art. Go out and buy the art supplies that you need to launch your art career. Take to the road to tour and share your art with people who are looking for what it is that you create.
  • Build a foundation, an avenue that you can use to support and strengthen others potentially for generations.
  • Switch careers and finally start working the job that you love, the work that generates joy and peace from deep within you.
  • Support other artists, students and people who are starting out in a career or pursuing an art or dream with the money that you once used to pay your mortgage.
  • Gift friends and family with handmade items like cards, floral arrangements and decorative poetry.

Your house shouldn't hold you hostage

You don't buy a house to have something expensive to keep paying on for years. You buy a house to have a reliable place to live, a comfortable place that you can payoff and enjoy living without a mortgage or rent. There's so much that you can do after you pay off your mortgage.

Instead of working to pay down your largest expense, you can use your income to travel. You can build your retirement savings or invest in your foundation. You can explore hobbies and talents that you've been putting off using since you were a kid. In a nutshell, after you pay off your mortgage, you can enjoy rewarding changes that have rich short and long term effects.

Tags: Mortgage   mortgage free  
Categories: Uncategorized  

Posted by Svetlana Sheinina on 5/9/2017

Monthly mortgage payments for first time home buyers are generally lower than they are for repeat home buyers. As a first time home buyer, you could pay $1,200 or less to own a house. If you're a seasoned home buyer or have bought two or more houses, your monthly mortgage payments might hover around $1,400 a month or higher.

Using mortgage payment savings to invest in other areas of your life

The higher monthly mortgage payments could reflect income increases, job promotions and demands of a growing family. Yet, even with a higher salary, it's smart to lower the amount of mortgage you're responsible for. There are so many things that you can use the savings for. You could use money that you shave off your monthly mortgage payments to:

  • Grow your retirement savings
  • Invest in your or your children's education
  • Fund the startup of your new business
  • Pay off student loans, credit cards and other debts
  • Cover the costs of home repairs, upgrades and general home maintenance
  • Travel internationally

Practical steps to lower monthly mortgage payments

Saving on a mortgage can yield long term rewards. It also requires discipline. Five steps that you could take to lower your monthly mortgage payments are:

  • Send in $100 or more above your required minimum monthly mortgage installment. For example, if your monthly mortgage is $1,426,send 1,526 or more. You may have to pay $100 or more a month for several months before you notice a drop in your principal. Therefore, if you take this approach, stick with it.
  • Refinance your mortgage when rates drop. An example of this is if you purchased your house when interest rates were 8%. Should rates drop to 3.6%, your monthly mortgage payments could drop significantly. There are fees associated with refinancing a mortgage. Among these fees are the mortgage application fee, loan origination fee, home appraisal fee, closing costs and documentation fees. It's advisable to refinance only if you plan on keeping a house for several years.
  • Rent out part of your house. If you're concerned about renters paying on time, rent to two people. Charge enough so that you can cover at least half of your rent with payments from one renter.
  • Move your business to your home. Instead of paying a second mortgage for a separate business location, operate your business from within your house.
  • Apply for a longer repayment term. Your overall principal won't drop, but your monthly mortgage payments should go down.
  • Put a healthy down payment on your home. Check with your lender and ensure that the lender will let you forego mortgage insurance payments if you increase your down payment.

Life changes like job layoffs, new business startups and marriages and divorces could call for you to make lower monthly mortgage payments. Despite what you might think, you have options. One or more changes could keep you in your home. The extra money could also give you the finances to invest in other parts of you and your children's futures.

Categories: Uncategorized  

Posted by Svetlana Sheinina on 3/14/2017

Do you know the difference between adjustable-rate and fixed-rate mortgages? An adjustable-rate mortgage (ARM) includes an interest rate that will change periodically based on market conditions. In many cases, homebuyers prefer fixed-rate mortgages (FRMs), as these mortgages enable homebuyers to pay the same monthly mortgage payment for the life of their loan. Conversely, an ARM may start with lower monthly payments but could rise over an extended period of time. This means that an ARM is likely to result in mortgage payments that vary over the years. Although an ARM may seem like an inferior option to its fixed-rate counterpart, there are several scenarios in which a homebuyer may prefer an ARM, including: 1. A Homebuyer Is Purchasing a Residence for the First Time. A first-time homebuyer may enter the real estate market with lofty expectations. But upon realizing there are few housing options that meet his or her needs, this buyer may settle for a house that represents a short-term residence. In this scenario, a homebuyer may be better off selecting an ARM. With an ARM, a first-time homebuyer may be able to make lower monthly payments in the first few years of homeownership. And then, when a better homeownership opportunity becomes available, this buyer may be able to work toward upgrading from his or her starter residence. 2. A Homebuyer Expects His or Her Income to Rise. The economy may fluctuate at times, but those who are assured of a higher income over the next few years may be better equipped to handle an ARM. For example, a student who is enrolled in a medical residency program may be a few years away from becoming a doctor. At the same time, this student wants a nice place that he or she can call home and may consider an ARM because it offers lower monthly payments initially. After this student completes the residency program, he or she likely will see a jump in his or her annual income as well. Thus, this homebuyer may be best served with an ARM. 3. A Homebuyer Is Facing an Empty Nest. Will your children soon be moving out of the home in the next few years? If so, now may be a great time to consider an ARM if you'd like to move into a new residence. Parents who are facing an empty nest in the next few years may be better off living in a larger residence for now, then downsizing after their children leave the nest. Therefore, with an ARM, parents may be able to buy a nicer home with lower monthly payments. And after their kids move out, these parents always can look into downsizing accordingly. Deciding which type of mortgage is right for you can be challenging for even an experienced homebuyer. Fortunately, lenders are available to answer any concerns or questions you may have, and your real estate agent may be able to offer guidance and tips as well. Explore all of the mortgage options at your disposal before you purchase a new residence. By doing so, you'll be equipped with the necessary information to make an informed decision that will serve you well both now and in the future.

Svetlana Sheinina