Month: July 2022

You can lock in a mortgage rate after you’ve made an offer on a house and have a signed purchase agreement. The mortgage rate lock, means that you have a specific mortgage rate “locked in” for a period of time (typically 30 or 60 days). This rate lock means you’ll get that rate even if rates move higher or lower during the time your loan is being processed. Rate locks do expire and can cost a fee (basis points) depending on the rate and period. With today’s rates fluctuating you may want a rate lock but a keen eye on closing dates is important as well. Give us a call or schedule a meeting on our site and we can review your situation and see what best fits your needs!

PMI is private mortgage insurance. If you’re getting a conventional loan and are making of down payment of less than 20% of the purchase price, you generally need to purchase PMI. This insurance is designed to protect the lender in case of default on the loan and it also allows the borrower to buy a house when they can’t afford to make the traditional 20% down payment. PMI is provided by a third party, requirements and rates will be provided before the closing. Once you reach 20% equity in the home – either through mortgage payments or rising home values, the PMI will be terminated. PMI rates are generally between 0.5 percent and 1.8 percent of the original loan amount. According to Freddie Mac, it estimates that most borrowers pay…

The housing market is making affordability a big issue for many would be buyers. This can make buying a fixer-upper a lot more tempting. 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.…

Here is a top ten list of questions you should ask before buying a home 1. What is my budget? We mean total budget, not just the sales price. Remember to include property taxes, insurance, any HOA fees, renovations costs and ongoing maintenance. 2. Did I get preapproved? Most realtors want to see that your pre-approved (many won’t even talk to you until you are!). So get preapproved to show you mean business. And we can help! Contact us today for a preapproval letter! 3. Why is the seller moving? This can be useful in seeing how motivated the seller is and can help in negotiating the price. 4. What comes with the sale? Make sure you get in writing what is included in advanced – the washing machine, stove,…