Tag: home purchase

Ways To Go About Lowering Your Monthly Mortgage Payment

Posted on by Creative Programs and Systems

Homeowners are always optimistic when they buy a new home. They find and fall in love with a home that may be slightly out of their reach.  They are convinced that with some decent budgeting, trimming of the fat and future increases in pay the monthly payment will be affordable.  What happens next is life.  We all know what occurs then.  Unforeseen expenses come up and the monthly payment that was barely manageable before turns into a burden.  If you find yourself in this situation keep reading.  This article covers a number of ways homeowners can reduce their mortgage payment.

Property Assessment

If the market has changed in any way a property assessment can help.  If your property’s value has decreased in any way or if you think the original assessment is inaccurate you can file a petition to have it re-evaluated.  Lower evaluations can often lead to substantial savings over the lifetime of your mortgage.

PMI

If you feel that you have more than twenty percent equity into the house you can petition the lender to cancel your private mortgage insurance otherwise known as a PMI.  This could help alleviate the extra payment associated with the monthly expense of private mortgage insurance.

Loan Modification

If you are truly having difficulties a mortgage modification could be the answer to your problems.  This process can lower your balance and make your monthly payments more affordable.  This option is not without ramifications however so before you go this route contact a home loan specialist.

Refinancing

The first few years, your monthly mortgage payment goes mostly to interest instead of the principal of the mortgage.  The effect of the interest payment is significant.  When it comes to refinancing your mortgage you will want to calculate the monthly interest savings verse how much it will costs to refinance the loan.  In theory refinancing is the process of taking out a mortgage on the existing amount owed on the home loan at a lower interest rate.    Often times you can extend the amount of time in which to repay the mortgage as well to lower the monthly payment even more.

If you need assistance with your mortgage in order to decrease the monthly payment meet with your mortgage broker.  They have insight on the lowest interest rates, loan options along with connections within the industry to help lower your monthly mortgage payment.  This in turn lowers the amount you will pay on the overall home loan as well.

Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.

Brighton Cross Country Mortgage

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Choosing A Mortgage Broker To Help You Through The Mortgage Process

Posted on by Creative Programs and Systems

An age old question that comes with buying a new home or refinancing comes with finding a mortgage broker that will find you the best rate possible.  What do you need to look for in a mortgage broker?  Is it possible to find a better rate on your own working with a credit union or bank?  In many situations a credit union or bank is perfect however getting your mortgage refinanced or a new mortgage for a new home a mortgage broker is more prepared to find a rate offer and lender that match your need.

One of the best things about using a mortgage broker is that they aren’t only in it to help you find a mortgage but also to provide you with support in your overall financial standings.   In order to do this your broker must make sure that they understand your needs, your situation and your future goals.

The first step to accomplish this is to speak with you at length.  They will ask you about your needs and will inquire about your living arrangements currently.  If you are also selling a home they will want to take that into consideration as you will have additional funds that can be used.  If the broker sees an issue with what you want or thinks that it may land you in trouble financially they will guide you in a direction that is more fitting.  They will not allow you to get in over your head with your purchase.

When meeting with a mortgage broker make sure that they are truly in it for you.  Are they speaking your language?  The conversation should only revolve around how they can help you.  While listening to you they should be engaging and asking relevant questions.  This is the sign of a broker who is looking out for you and your interests.  When working with a bank or other financial situation you may be pushed between several different employees.  Where in reality some of them may know nothing about your situation and not understanding what your needs are.  You should be working with one person who is knowledgeable about your condition and working to find you the best rate with your situation in mind.  Using a mortgage broker you have one individual who knows you and all about mortgages to guide you throughout the process.

After taking in your financial status, your earnings, investments, expenses and other things the broker will get you an optimized mortgage.  Brokers work with a variety of lenders to find you the best rate and mortgage available based upon your situation.  They will then make recommendations to help guide you throughout the process until you are the proud owners of a new mortgage.  Throughout each and every stage they will be able to answer your questions and clear your mind; this alone simplifies the process.

Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.

Brighton Cross Country Mortgage

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Applying For A Mortgage As A Recent College Graduate

Posted on by Creative Programs and Systems

Being a recent college graduate can be fairly overwhelming.  It is a time where you are paving a new path for yourself; including starting a new career path, buying your first home and taking on the payments of your more real than ever debt.  You are faced with many big decisions, some more daunting than others.   This does not have to be the case when looking to buy your first home.  Once you understand what type of home you can afford the purchase of a home can be in the grasps of most recent college graduates.

The first thing you must consider when buying your first home is the amount of money that you have coming in each month in comparison to the amount of money you have going out.  This calculation is your debt to income ratio.  Once you have a grasp on this it is time to meet with a mortgage broker.

During the initial meeting with a mortgage broker or lender a professional will discuss with you the differences between buying a home in case verse using a mortgage to purchase a home.  In order to receive a mortgage preapproval your credit history will be scrutinized.  This allows lenders to make an educated analysis on your risk.  They need to determine if you have established a history of good credit as this will help them determine an amount they can lend comfortably.  Mortgage companies want to ensure that their investments will be paid back.  This is what your credit history tells them about you.

When you are looking to buy your home, especially as a new college graduate you must consider your future both near and distant.  Are you looking to start a family soon?  Are you looking to return to graduate school?  What exactly does your future look like?  Will you be acquiring additional expenses without additional income?  These are important questions to answer before deciding in actuality what you can comfortably afford in a new home.

If you are likely to move or relocate with your company does it make sense to purchase a home right now?  A lender can discuss current market conditions while a real estate agent can help target homes within your budget that are likely to sell quickly in the future if need be.  A major consideration is if you will get your investment plus equity if you need to sell within five years of your initial purchase.

Buying your first home is an exhilarating experience.  As a recent graduate many of these firsts can be overwhelming; buying a home doesn’t have to be.  Take your time making decisions.   There is never a rush when it comes to taking on any size financial commitment.

Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.

Brighton Cross Country Mortgage

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The Difference Between Fixed Rate and Adjustable Rate Mortgages

Posted on by Creative Programs and Systems

Most individuals looking to purchase a home start preparing well before they ever meet with a real estate agent.  Buying a home is not something most people can do on a whim.  It takes time to achieve the financial preparations that come along with buying and maintaining a new home.  Most individuals begin the process by saving funds for a down payment while looking to clean up their credit score.  The higher your credit score is the better your chances at qualifying for a lower interest rate mortgage.   Mortgage preapproval is another financial preparation that needs to be secured on the road to homeownership.

A mortgage preapproval gives you a comfortable range in which to start looking for homes.  This preapproval amount is the amount that lenders feel comfortable with you borrowing given your income to debt ratio.  Just because you are preapproved for a certain amount does not mean that this is what you must spend on your new home.  If you are looking at homes more than what you are preapproved for you will need to make up the difference with a large down payment.

As a home buyer it is up to you on what you feel comfortable spending on a new home.  If you feel the amount you are preapproved for is too high consider looking for homes in a price range you feel more comfortable with.  Most sellers require a preapproval when seriously considering offers.  A preapproval is a guarantee that you will be able to secure funds to purchase their home.  Sellers looking to commit to an offer want a sense of security and an offer with a preapproval stands above those without one.

When it comes to obtaining a mortgage there are two basic options to consider: a fixed interest rate mortgage and an adjustable rate mortgage.  Your mortgage broker will be able to assist you in determining which option is best given your financial situation.

In general terms a fixed interest rate mortgage is a home loan in which the interest rate remains constant over the life span of the loan.  The payment is spilt into equal payment over the course of ten, fifteen, twenty or thirty years.  The advantage of this type of loan is that you know exactly what you owe each month.  The main disadvantage is locking in a higher rate than what is offered later on down the road.  In order to take advantage of the lower rate you would need to refinance your current mortgage which has fees associated with it.

An adjustable rate mortgage sports a variable interest rate that allows lenders to raise or lower rate as market conditions change.  Your payment will go up or down according to the changes made by the lender.  This flexibility allows you to take advantage of lower market rates without the fees involved in refinancing.  The one disadvantage of course comes into play if the market conditions take a turn and rates increase.

When looking into the financial preparations before purchasing a home it is advisable to meet with a mortgage broker.  They will help prepare you in the financial aspects of buying a home.  Mortgage brokers layout whether now is a financially good time for you to start looking to buy a home or not before you have wasted valuable time searching for a home.

Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.

Brighton Cross Country Mortgage

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The Cliff Note Version Of Obtaining A Mortgage Loan

Posted on by Creative Programs and Systems

The real estate market is currently in full bloom.  Mortgage rates had been at an all time low however recently have started to come back up.  This makes people want to buy a home sooner than later.  Everyone is looking to pay the lowest interest rate possible on a new mortgage.  With mortgage rates slowly rising many people find now is the time to buy a home.  The steps below are the cliff notes when it comes to finding a mortgage while the rates are still at record lows.

Get Your Credit Rating Ready

Your credit score is one of the biggest factors when determining if you will get approved for a home loan and if so what type of interest rate you will qualify for.  If you know you are going to be looking for a home and therefore a home loan it is important that you get a copy of your credit report and start working on improving your credit score.  Errors on your credit report, applying for more debt and several other factors can affect your credit score.  This in turn can make a huge difference when working to achieve the lowest interest rate on a new mortgage loan.  It can also be the difference between getting approved and not getting approved.

Improve Your Debt-to-Income Ratio

Take inventory of how much you have going out verse how much money you have coming in.  This is another large consideration when applying for a loan.  It is important to reduce your debt before applying for a mortgage.   This can be done by making larger payments on credit card debt, car loans and outstanding loans to help boost your ratio.

Start Saving For a Down Payment

A large down payment can save you big bucks immediately.  Without a decent down payment you most likely will end up paying a PMI amount each month with your mortgage payment.  This can add up to an extra payment that could be used towards the principal of your mortgage but instead is being wasted on mortgage insurance.   Most mortgages require a down payment that falls between five and twenty percent to get the best possible interest rate and avoid paying mortgage insurance.

Find a Mortgage Lender or Broker

When looking into buying a home an experienced mortgage lender or broker can completely transform your mortgage experience.  Shop around until you find someone you are comfortable working with.  Find someone who is willing to work closely with you and that works to help you understand the complete home loan process.  Find a lender who is straightforward and cuts through the idiosyncrasies of the process to get you the best interest rate available that you qualify for.

Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.

 

Brighton Cross Country Mortgage

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Everything there is to know in the Mortgage Process

Posted on by Creative Programs and Systems

Shopping for a mortgage and buying a home go together like peanut butter and jelly sandwiches.  It is unlikely you can enjoy the one without the other.  It is the same with buying a home; you can’t do it without shopping for a mortgage.  Shopping for a home loan is easier when you understand what you are doing.  Below are some tips to help with that process.

Know what you can afford

In order to know what you can afford you need to put together a detailed list of your income verse your expenses.  It is crucial to consider the extra costs that come with owning a home.  You are not only looking at an additional monthly mortgage payment but also an increase in utility expenses, insurance and incidentals that occur with home ownership.  Months before you start searching for a home loan it is crucial to get your credit report.  In order to get the lowest interest rate available on a mortgage a high credit score is needed.  This can be achieved by cleaning up any errors in reporting as well as making payment on time and not applying for any new debt.

Compare loan options from lenders and brokers

Shop around for a mortgage.  This is not the same as applying for them.  Shopping around takes time and energy but that is it; it is free to look into what lenders and brokers have to offer.  Not shopping around can actually end up costing you thousands of dollars.  It is essential that you understand the difference between a mortgage lender and a mortgage broker.  A broker arranges mortgage loans with lenders rather than lending money directly as a mortgage lender does.  Brokers sell you a loan from a lender.  Finding the best deal when it comes to a home loan requires work on your end.  Whether you decide in the end that the deal comes from a lender or a broker is up to you and your research.

Find trusted sources to get advice from

Mortgage loans are complicated.  When it comes to the most expensive investment you will most likely ever make it is important to gather advice from trusted sources.  This information can come from educated friends and family or from people you hire such as a real estate attorney.  Have a trusted source to help review all paperwork before you sign them.  This is important in any matters dealing with areas you are not an expert in especially ones with such large financial commitments behind them.

 Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.

Brighton Cross Country Mortgage

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Avoid These Mistakes When Securing a Mortgage

Posted on by Creative Programs and Systems

Applying for and securing a mortgage is not as simple as filling out an application, being approves and getting funds for a home.  The mortgage process is complex and a time consuming process.  Preparation is the key element for one of the most significant events of your life; securing a mortgage to secure your American dream.  Here are some pitfalls to be aware of and to avoid when applying for a mortgage for your new home or refinancing an old home.

Not Checking Your Credit Report

Long before you think of actually buying a home you need to know where you stand with your credit report.  A bad credit score will increase your mortgage rate so it is important that this step is taken long before you are actually thinking of applying for a mortgage.  Take steps to fix inaccuracies within the report with each of the three different credit bureaus.  This process can take several months.  It is important to step up and take control of your credit rankings.

Applying For More Credit While Applying For a Mortgage

 Don’t apply for more credit while you are looking to secure a mortgage.  Put off buying a new car or opening any credit cards in the months before and during your home loan search.  The more credit you look like you are trying to secure the higher the greater the credit risk you appear to be.  If you do apply for credit during this process be prepared for the backlash.

Failure to Look At the Total Housing Amount

A common mistake that is made when applying for a mortgage is the failure to look at the total picture.  Not only do you need to consider the mortgage payment but also the interest, the taxes and the insurance.  Also it is important to take into the consideration the amount that your household bills will increase.  Look at your debt to income ratio.  Make sure that you are comfortable with the amount of money coming in verse coming out.  Are you still going to be able to be comfortable with the payment on the home considering all the extra costs that are incurred with homeownership?

Not Seasoning Assets

Another aspect people often forget is that mortgage lenders are looking to see what type of assets are behind the payment.  Having assets in the bank, back up funds is important when trying to secure a mortgage.

Job Hopping

Starting a new job when applying for a new mortgage is not the end all of end alls however showing a steady source of employment and income needs to be accomplished.  Getting a new job in the same field may not be a problem but changing careers all together may be a deal breaker, especially if looking to become self employed.

Not Getting Pre-Approved

If you don’t secure pre-approval you may end up falling in love with a home that is out of your reach.  You never want to start looking for a home without first being pre-approved.  An experienced real estate agent will guide you in this process so that you have a basic understanding of a price point to consider.  It is crucial to remember that just because you are approved for a certain amount doesn’t mean you have to purchase a home at the highest point of pre-approval.  You may not feel comfortable with making that payment along with keeping up with your current lifestyle.

Whether you are buying a home or refinancing an existing mortgage take your time to find a home loan that works best for you.  Find a lender or mortgage broker that will help you through the process making it as easy as possible for you to secure the best possible mortgage.

Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.

Brighton Cross Country Mortgage

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Preparations In Applying For Mortgage

Posted on by Creative Programs and Systems

When it comes to buying a home and applying for a mortgage a lot of preparation is required.  It is simple not something that is done on a whim.  Mortgage rates are ever fluctuating and as of recent months we have seen some of the lowest rates in a long time; this leads new home owners to pursue their option in refinancing and sparks the interest of first time home buyers.  If you are new to the mortgage industry it is important that you have a basic understanding of what you are embarking on.  The process of securing a mortgage does not happen overnight and requires hands on approach from both the home buyer and the lender.

The first step involved in refinancing or securing a mortgage for a new home purchase is to determine your current credit score.   In order to get the best rate available on a mortgage you need a stellar credit rating.  You want to personally review your credit report and look for areas of inaccuracy.  Make sure your score is where you want it to be before you seek lending.

If upon reviewing your credit report you see inaccuracies it is important that you report them and get them updated.  Disputes need to be addressed with all three credit rating bureaus.  This process may take some time but is a crucial step to assure your credit report accurately reflects your financial situation.  Now is the time to evaluate your debt to income ratio as well.

Your mortgage payment will be one of the main sources of debt that you will acquire in your lifetime.  It is important to research the different home loans, rates and lenders available.  Depending on your situation you may be able to qualify for special financing.  Examples of special financing options available are for veterans, first time home buyers and self employed individuals to name a few.  Before you sign anything or commit to anyone research your entire lending options as well.  You may choose to work with an individual lender or a mortgage broker.  These options are up to you and are a matter of personal preference.

Being pre-approved and knowing what you comfortably can afford are two very different things.  Be realistic in your desire for the American dream.  You may be pre approved for a loan of up to two hundred thousand dollars however might not be comfortable with the monthly payment that comes along with it.  If you not only want to own a home but want to travel and have a life outside of your home take those financial commitments into account when budgeting for a mortgage.

There are several options in regards to the terms of financing available for new home loans and refinancing.  Research your options and determine if you are going to look into a fifteen or thirty year mortgage.  Are you looking for a fixed rate or an adjustable rate?  If you are looking for security and a guaranteed payment a fixed mortgage is your best option where if you believe rates could fluctuate and you want flexibility you may consider an adjustable rate mortgage.

Homeownership is a big step.  Financing it is an even bigger step that is often overlooked.  Be sure you take time to understand the steps involved and ask questions to clarify any and all matters before ever signing on the dotted line.  When working with a reputable lender or mortgage broker this shouldn’t ever be an issue.

Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.

Brighton Cross Country Mortgage

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Securing a Mortgage for Your Dream Home

Posted on by Creative Programs and Systems

There are no accidents when it comes to finding your dream home and securing a great mortgage.  The home buying process is a journey, one that can be made smoother when you take the right approach.  The tips below can ensure success in finding a mortgage and buying a home.

Budget Wisely:  As you are looking for a home and mortgage you need to take into consideration what you can afford.  This means making a budget that is realistic and allows you to not only pay your mortgage but outside expenses as well.  Create a budget using an online mortgage calculator helping to determine a ballpark monthly mortgage payment.

From there consider other monthly debts, estimate your living expenses with the new home and add your total expenses all together.  From here you can take your monthly income and subtract your monthly debts to see where you stand.  To avoid a financial crunch most advisors will tell you to avoid a mortgage payment over forty three percent of your monthly income.  You must be comfortable with the amount of money coming in as well as coming out when considering buying a home.

Find a Broker/Lender to Work With:  When finding a home loan there are two types of ways to go about it: dealing with a lender directly or through a mortgage broker who will deal with several lenders to find you the best mortgage.  Unless you are ultra familiar with how mortgages work and the ins and outs of paperwork it works better to work with a mortgage broker.  The process of finding a home loan on top of a new home can be a bit daunting especially if you have to go from lender to lender.

Check Your Credit:  Now is the time to check your credit.  Look for blemishes and correct them.  You can obtain one credit report per year for free.  It is crucial that you start fixing your credit ratings as soon as possible once you realize that you are getting serious about purchasing a home.  If something doesn’t look correct the time to fix that is before you look for a mortgage.

Get Your Paperwork Together:  Your financial situation will be under a microscope so you will need to back up your numbers, especially your incoming funds.  You will need to verify your income time and time again throughout securing a home loan.

Get Pre-Approved:  In order to get sellers to commit to offers it is important to get pre-approved.  A pre-approval basically states that you have the qualifications to obtain a loan if everything stays the same.  This also gives you an idea of how much you can afford and a price point to look within.

Once the finances are in order it is time to get a move on finding your dream loan.  The process of finding a home is made easier with the help of a qualified, local real estate agent just as a home loan is simplified using a mortgage broker.

Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.

Brighton Cross Country Mortgage

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Buying Your First Home

Posted on by Creative Programs and Systems

After years and years of renting apartments the thought of buying your first home can be exciting and a bit terrifying.  Though the process itself can be a bit challenging the satisfaction at the end is a feeling that nothing in your life will ever compare to.  Buying a home, your first real estate transaction, is an exhilarating experience.  Your first home purchase will be the biggest investment you make up to this point in your life.  It is crucial to be wise and employ the best approach possible to ensure you are making an intelligent investment.

Hire an agent

The first piece of advice all first time home buyers should consider is to hire an agent that specializes in the location you are looking to move.  Having an experienced, certified realtor will help to ensure you have the widest selection of homes to view.  Knowledge and experience are two key characteristics that are must haves when selecting a buyer’s agent.   They must offer an extensive familiarity with the location you are looking to find a home.  This allows them to view listings and evaluate if they are over or under priced for the area, saving you both time.  Looking at homes that are a solid investment with room to build equity is especially important when buying a first home.

The agent you hire must also have experience and connections within the industry.  These connections are what help agent’s scope out listings before they are even advertised.  Having first dibs on a home is a terrific advantage in a competitive real estate market.  This is especially important when you have exhausted the available options within your criteria and are feeling hopeless about finding a home.  The process of buying a home can be long and tedious which is why it is crucial you hire an agent with both experience and knowledge.

Get Pre-Approved

Once you have found an agent that you are comfortable working with it is time to get a concrete idea of exactly what you can afford.  Many real estate professionals can help you find a company to work with in getting pre-approval.  Once that number is established getting a seller to accept your offer is better.  Sellers like to commit to buyers who are going to be able to get home loans.  Sellers do not want to commit to a buyer only later to learn that they do not qualify for the amount that was offered.  This is a waste of valuable time in selling their home.

With pre-approval a buyer is guaranteeing that they have met the qualifications lenders need to secure a home loan.  It means that your criterion, income verse debt, matches the needs of a mortgage lender thus you can commit to the purchase of a home.  Without pre-approval sellers are gambling on you and cannot be positive that you will be able to secure a loan for the required amount.

Starting out looking for your first home can be a bit tricky.  With a pre-approval in hand, a knowledgeable and experienced agent at your side the process is simplified significantly.

Lady of the Lakes Real Estate is Livingston County’s premiere realtor; out of Pinckney, Michigan helping buyers buy and sellers sell homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Brighton, Howell, Pinckney and the surrounding area.  More information can be found at http://www.ladyofthelakes.com.

C21 Lady of the Lakes

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