Get your Home Purchase Pre-Approval Before you Start Shopping

Posted on February 17, 2016 by Scott Li

Many people are so excited about the prospect of buying a home that they completely forget about the fact that they need to get approved for a mortgage before they even start looking at homes. However, despite the fact that mortgage pre-approval is required by most realtors, research has shown that less than 10% of buyers are taking this crucial step beforehand.

What is a Mortgage Pre-Approval?

To get approved for a mortgage, you will need to submit a host of documents to your lender, all of which will determine how much of a mortgage you will be able to qualify for. Documents that are needed to get pre-approval include pay stubs, your W-2 documents from the past two years, your previous 2 federal tax returns, at least two months’ worth of bank statements and the most recent copy of your credit report. In cases where you are self-employed, you may find yourself having to provide at least one full years’ worth of federal tax returns so that your lender can determine what your average income has been during this time. read more

Thinking about Purchasing a New Home in the Spring? Start Putting your Wish List Together Now

Posted on February 10, 2016 by Scott Li

With interest rates being as low as they are at the moment, more and more people are considering the option of purchasing a home instead of continuing to rent at higher prices. Although the process of buying a house can leave you feeling giddy with excitement, it is imperative that you put your wish list together before considering putting any offers in.

Research Neighborhoods that you want to live in

Before purchasing a home – even in what seems to be a desirable neighborhood – it is essential to conduct intensive research. In most cases, issues such as poor or non-existent public transport routes, a lack of decent amenities, low quality schools and crime levels may only present themselves after you have moved in, and by then, you may find it close to impossible to sell up and relocate again. If a realtor gives evasive answers or seems non-committal when asked about the above mentioned issues, it will be best to purchase in a different neighborhood. read more

Now is the Time to Buy or Refinance – Mortgage Rates Drop with Stock Market

Posted on February 1, 2016 by Scott Li

Regardless of whether you are a first time home buyer or you have been a home owner for a few years already, chances are that you have heard about the recent drop in the stock market. This has resulted in an ideal opportunity being provided for anyone who is in the market to buy their first home or even refinance an existing property.

Enjoy Lower Interest Rates

According to The Mortgage Reports website, 20 and 30-year conventional fixed-rate mortgage rates are currently sitting at just under the 4% mark, and purchasing power of home buyers has increased by as much as 10% as a result. To receive the most benefit when refinancing, you will need to ensure that your refinancing costs are not going to be too high. Once you see how much you will be able to save each month, you can consider using that money to put towards other expenses. The lower interest rates will also make it easier for you to get on to the property ladder if you are a first time buyer. read more

When Doing a Cash out Refinance, Spend your Money Wisely

Posted on January 27, 2016 by Scott Li

After refinancing a mortgage by means of the cash out refinance option, you will have a lump sum of cash on hand because your new mortgage loan will be for a larger amount than the existing mortgage loan on your home. In most cases, you will be able to spend this cash lump sum in any way you choose; however, it is important to spend it wisely. Below are a few great ways to use this cash lump sum so that you will be able to get the most benefit from it.

Repay Debt

If you have any form of consumer debt, chances are that you will be paying high amounts of interest on it each month – in some cases, as much as 20-25%. Using your cash out refinance option will not only help you save thousands of dollars in interest on your debt over the long term; in most cases, repaying all of your consumer debt will also free up a large portion of your monthly pay check, which will in turn provide your budget with some much-needed breathing room. Having little to no debt will also allow you to save more money each month for future expenses that will need to be covered. read more

Why Cash out Refinancing is better than an Equity Loan for Home Improvement

Posted on January 25, 2016 by Scott Li

Home buyers who have intentions of staying in their properties for more than a few years will undoubtedly want to have renovations performed at some stage. Regardless of whether these are going to be minor, such as a coat of paint, or major, such as adding on a room or two, it will be more beneficial to make use of cash out refinancing instead of an equity loan to cover the costs.

Obtain a Larger Sum of Cash

When obtaining a cash out refinance, home buyers will be able to obtain a larger sum of cash than if they had opted for a home equity loan. This option allows home owners to obtain a new loan that will pay off the current mortgage, while also being able to take out the equity (the difference between what the home in question is worth and how much is still owed on the mortgage for it). The equity is then paid out to the home owner in the form of a lump sum of cash, which can then be used to perform any renovations that need to be done. read more

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