No one takes the purchase of a new home lightly. Many homebuyers spend months or even years searching for that perfect new property. If one shops around for the perfect home, then why not shop for the perfect mortgage? You could be spending the next several years paying off a home loan. Finding an affordable interest rate could save you hundreds, even thousands of dollars over the lifetime of your loan.
For these reasons, the experts at Premier Mortgage Lending advocate shopping around for the best loan “price.” Some real estate agents may steer you toward certain lenders or banks. Just remember, it’s your purchase and you’re the boss. Their lender may not always offer the best rates.
It will be to your advantage to find the right mortgage lender early in the home buying process. This will allow you to get your loan application rolling by getting pre-approved. If you happen to find your dream home, you’ll be able to put in a serious offer right away. This could mean all the difference in closing the deal before another well-prepared home shopper.
When searching for the best loan, don’t just look at the interest rates. While the loans may seem similar across the board, there could be major differences in final costs and fees. If there are tiny differences in rates, these could mean big money over time.
According to the Consumer Financial Protection Bureau, approximately 50 percent of mortgage borrowers don’t shop around when they buy a home. We at Premier Mortgage Lending agree that this practice could be a major thorn in the side of homeowners.
With the new year, comes new Federal regulations on home loans. The word “regulation” strikes fear into the mind of most Americans, especially potential homeowners with limited income. However, these new rules, unveiled by the Federal Housing Finance Agency at the end of January, are designed to improve the mortgage landscape for homebuyers. Naturally, there has been a lot of debate about these regulations and what they can mean for the public. In short, the new requirements are for non bank lenders and are designed to reduce risk at mortgage-finance companies Fannie Mae and Freddie Mac. For more information, check out this article from the Wall Street Journal.
While it’s too early to determine the long-term ramifications of these rules, one thing is for sure: it is still a great time to apply for a low-interest home loan. Rates are remaining at historically low rates. Don’t be scared away from your new home search by the new rules, which are meant to help homeowners, not hurt them.
At Premier Mortgage Lending, we still offer low-risk loan options that are perfect for first-time buyers. Current regulations allow us to charge no fees on our loans. Owner Rick Piette recently described the benefits as such: “…lenders can now offer traditional mortgage products while charging absolutely no lender fees. We at Premier Mortgage Lending charge no points, no origination fees, and no junk fees. With us, you only pay for the appraisal and a credit report, which can lead to substantial savings.”
With Lincoln’s birthday tomorrow, Feb. 12, and Washington’s birthday coming the following Monday, we’ve been getting into a patriotic mood. The United States is a country that likes to celebrate its history. Part of that history has been the evolution of the home owning middle class. To this day, most of our country’s residents still consider owning a home part of achieving the “American Dream.”
So what exactly is the American Dream? For some it’s the idea that every U.S. citizen should have an equal opportunity to achieve success through hard work and determination. Others say it’s all about giving our children a better place to live than what we had. However you define it, 70% of homeowners say that having their own home has helped them reach the American Dream. Baby Boomers formed many of the ideas we still have about owning a house. Homeownership skyrocketed after World War II, reaching 62% in 1960 and remaining near that level ever since.
Today, some pundits out there say that the dream of owning a home is vanishing from minds of Millennials and young families. According to the U.S. Census, the number of homeowners age 35 and younger are at historic lows. At Premier Home Lending, we are striving to keep the dream of homeownership alive. Owning a home begins with obtaining a low rate loan, and now is the best time to act. Our economy has been improving steadily since the worst of the recession and many people are ready to give owning a home a second chance.
So you’re lucky enough to be your own boss, work your own schedule and make your own tax deductions. Self-employment has a lot of benefits. Unfortunately, obtaining a loan for a new house is not always included on that list. True, mortgage applications tend to be tailored to those who qualify for a W-2. But with a little bit of background knowledge, the self-employed can also get a great loan. Consider the following.
1. Be realistic about your income: While self-employed individuals tend to earn more on average, this is not always the case. The improving economy has helped raise income levels for the self-employed; however, you should be as realistic as possible about your finances when you decide on a home.
2. Prepare all your tax documents: Self-employed workers will have more paperwork to fill out than salaried employees. This is just to give the lender an accurate picture of your income. You will need to provide income tax information for the past two years. Your mortgage qualification will be based on your income.
3. Reduce your debt: This tip is important for all borrowers, but especially for the self-employed. Your debt-to-income ratio will be very important for your application. Lower common debts such as car loans and student loans as much as possible before you apply for a loan. Your front-end housing debt payments should not exceed more than 28 percent of your yearly income. Your other debts should not exceed 36 percent of your income.
Follow these tips, and you’ll be on your way to an affordable mortgage loan. Contact Premier Mortgage Lending at 702-485-6600 and we can help you on your way toward home ownership. Also, be sure to check out the latest article by our owner Rick Peitte in the Real Estate section of the Las Vegas Review Journal on Saturday, Jan. 31. The article discusses new regulations in the mortgage lending industry.