If you’re looking for a new house, many realtors want a pre-approval in advance. Plus its good for you to know how much you can afford and if there are any issues, you will know in advanced instead of an unexpected last minute surprise!

1. Proof of Income
This is usually W-2 statements but also includes any other sources of income like bonuses or alimony.
2. Proof of Assets
This will include bank and investment account statements. If you are receiving a money from a relative or friend you may also need a gift letter from them.
3. Credit Score
Your credit score will be an important factor on the down payment and interest rate on the loan.
4. Employment Verification
Lenders may call your employer to verify employment, or if you are self-employed you may need to supply additional paperwork.
5. You Verification
You may need to supply a copy of your drivers license and social security number as well.

Now that you know the basics, check with us to get pre-approved and see how much you can get approved for!

In today’s market of rising home prices, many people are considering buying a fixer-upper.
We’ve all seen the home make-over shows with amazing before and afters but should you do it?
Here are a few things to consider:
1. Know Your Limits How much of the work can you do. How much time do you have to put into renovations. Are you prepared to live in a work zone for a while
2. Work Out Costs In Advance Have a contractor walk through the inspection with you and get a written estimate for work he would do. If you are doing the work yourself price the costs of supplies, either way add 15% to the costs because surprises are likely.
3. Check Permitting Costs and Procedures Check with local officials to see if the work requires a permit and the permit costs.
4. Be Extra Careful with Structural Issues If the house requires structural repairs then double check the work and pricing. Hire a structural engineer to do an inspection and if structural work needs to be done make sure your bid discounts this work
5. Include Inspection Contingencies Make sure you hire professional inspectors and check for hidden issues like mold, piping issues, pest damage etc. And if things come up ask for discounts. And if too many red flags come up or the seller won’t properly discount the costs for repair then you may want walk away and keep looking!

Many first-time home buyers are looking for ways to get into a house – here are ten programs that can help!
1. FHA Loan – This is most common assistance loan and you may already be familiar with FHA loans, these are widespread and help buyers with lower credit scores and less money saved for a down payment. 2. USDA Loan – are for lower-income borrowers in rural areas (but check with us you may not realize you are in a rural area 🙂 3. VA Loan – this is a great option for those who have service in the military and their families as it allows no down payment! 4. Fannie Mae/Freddie Mac Loan – these are conventional loans that are a good option for those with good credit scores but can put down as little as three percent. 5. Good Neighbor Next Door Loan – this HUD program provide aid for first responders and teachers. 6. FHA Section 203k Loan – if you are getting a fixer-upper this is a great option as home improvement costs can be rolled into the FHA primary mortgage. 7. HomePath ReadyBuyer Program – this is program pays ups to 3% of closing cost assistance for Fannie Mae properties in foreclosure (you must complete an educational course as well) 8. Native American Direct Loan – this program is for Native American veterans on federal trust land. 9. Energy-efficient Loans – there are a few federal programs that allow for savings on homes rated as energy efficient or loans that allow the borrower to add efficiency upgrade costs into the primary mortgage. 10. Local State and City Programs – last but definitely not least there are many local options people often don’t know about that can provide assistance to first time home buyers! Check with us and we can review your situation and help you decide if any of these are a good fit!

As we enter a new year our mortgage outlook sees pressure on rates to increase. The Mortgage Bankers Association expects an increase from records lows but rates should still remain historically lower.
The fed is likely to raise rates as it faces inflationary pressure for the first time in decades. Of course things are extremely fluid and subject to change. For those looking to refinance, we recommend acting now to lock in low rates. Cash-out refinances will still be attractive for some with moderate rises in interest rates as many have seen a large rise in equity. Purchase loans will likely be an increasing portion of mortgages overall.
Check with us to see how all this affects you and we will recommend the best course of action based on your needs!