Buying a home for the first time can be a challenge. At Cressy & Everett Real Estate, our real estate agents are always there to advise you. That means not only finding you the best South Bend homes for sale, but helping you make the right choices every step of the way.
Buying a home may seem intimidating at first, but there's good news. Many buyers simply jump into the process with both feet. If it throws them a curveball, they often end up having to walk away from the home they want. By spending some time researching – like you're doing right now – you are much more likely to succeed.
Your real estate agent is there to guide you, but in the end, you make all the decisions. So, the more you know about buying a property, the easier it'll be. A little knowledge goes a long way! Here's how to beat the odds as a first-time homebuyer.
No matter your budget, Cressy & Everett Real Estate has the insight you need to get to closing day. Contact us today to learn more.
Buying a new home is exciting! You've checked out available South Bend homes for sale, figured out your down payment, and have a mortgage pre-approval letter from a lender. You finally found the perfect home and it's time to get a mortgage. You apply, get excited, start packing and then you hear the two most dreaded words in the home buying process: "Mortgage Denied."
It happens. If you've been rejected for a loan, it can be jarring, but you can turn it around. The key is understanding the reason(s) why you were turned down, and how to fix any problems.
Since 2008, banks have tightened mortgage lending requirements. It's not always as simple as being overextended on your current loans or having several accounts in collections. Often it can be small things, that can be resolved.
Here are some common reasons you could get denied for a mortgage loan.
• You just received a new credit card or applied for a personal loan.
Taking on any new debt before you apply for a mortgage can decrease the chances of getting approved. Mortgage lenders look at an indicator called your "debt-to-income ratio." DTI is calculated by adding up your monthly payments and dividing by your monthly gross income. They want to see a ratio of 43% or less.
• You've recently changed jobs.
Lenders look for stability and one way they determine it is by looking at your employment history. If you've worked for the same employer for two years or more, it can help your application. If you've recently lost or changed jobs, it can raise a red flag with lenders.
• Low Appraisal
If the property you're interested in appraises for significantly less than the purchase price it can cause the "loan-to-value ratio" (LTV) to be higher than the lender can legally approve. Work to renegotiate a lower price if the appraisal is higher than similar homes in the neighborhood. Or if you can, make a larger down payment and accept a lower loan amount.
• Bad Credit
If you have bad credit (typically below 619) you can be denied for a mortgage. If you're denied a loan, you can get a free credit report within 60 days of a denial. Go through your report to see if it is up-to-date and accurate. If there are discrepancies, the credit bureau must correct any errors.
If you are denied, there are some steps you can take.
Your realtor may be able to help you find a lender willing to work with you. Here at Cressy & Everett Real Estate, our real estate agents are ready to help. If you're ready to begin your home search, contact us today!
Getting a mortgage isn't what it once was. After the market crash of a decade ago, getting the funding for the most expensive purchase most people will make during their lifetimes has been heavily regulated and for good reason. If you're looking for South Bend homes for sale and happen to be self-employed, your journey toward a mortgage comes with some additional challenges.
Even so, our real estate agents can help you take the right path to mortgage approval.
If you have any questions about getting a mortgage while you're self-employed, then contact us to learn more about things you can do to get approved for your mortgage. Additionally, we can help you find the South Bend home of your dreams and get you started by looking through our current inventory of homes.
Student loan debt is a growing problem, and for many Americans thinking about buying their first home, the weight of that debt can be crushing. We believe that owning a home should be possible for anyone, and our real estate agents are here to help.
According to a recent report by Forbes, student loan debt is at an all-time high in 2019, with 44.7 million U.S. borrowers collectively owing $1.56 trillion in student loan debt. If you're one of them, that debt can feel like an impenetrable barrier between you and your dream of becoming a homeowner. Here's why it's not.
Student debt is especially a problem for first-time home buyers, who tend to be younger and less experienced. Many student debt holders cite their debt as a major reason for putting off buying a home, despite today's historically low mortgage rates and the variety of low to no down payment mortgage options available.
The biggest question to focus on is how your student loan debt will impact your ability to get approved for a mortgage. It's important to understand how lenders will look at your debt so you can determine how to move forward.
Credit scores are a big factor, but in most cases, having student loan debt won't drag down your credit score unless you've been missing payments. Just as important is your debt-to-income (DTI) ratio, which reflects the percentage of your monthly income necessary to repay your debts.
No matter how much student loan debt you may have, buying a home is not outside the realm of possibility. Here's what you can start doing today to improve your ability to get approved for a home loan, and buy your first home:
If you don't want your student loan debt to stand between you and your dream home, contact us. Our team of dedicated real estate agents is here to help every step of the way.
Our real estate agents often hear from our new clients that the process of getting a mortgage is intimidating. That's understandable!
Having an experienced real estate agent on your side does a lot to make applying for a home mortgage manageable.
Even so, it's important to know a few things about the process. Once you learn more, you'll see exactly what you need to do to make things easier.
That can be just what it takes to make your worries evaporate. The truth is, most people learn getting a mortgage is quite a bit easier than they imagined. It just takes some preparation.
These four steps will make it easier:
We help buyers with many different financing needs to achieve the dream of homeownership. To find out more, contact Cressy & Everett Real Estate.
When you commit to the idea of buying a new home, you'll probably want to jump right into it. You'll want to search online listings, check open house schedules and track For Sale signs in your neighborhood of choice. These activities will play an important role in buying a house, but it's important to obtain a mortgage pre-approval as your first step.
Our REALTORS® have helped many new homeowners in their home buying efforts. Experience has taught us that the mortgage pre-approval letter is important, but the approval process itself is an efficient way to address the financial aspects of buying a house. It can also help you make key decisions about your future home. Here's why the mortgage approval process is so important.
When you seek pre-approval, you subject your finances to ruthless inspection. You ask a mortgage company to evaluate you financially to determine if you are capable of paying back a substantial longterm loan. It's a big step that requires you to document your income, assets, savings, credit rating, proposed down payment, and other financial details. You must produce formal records.
A mortgage company will pre-approve you if they believe you're capable of paying back a loan based on your projected home purchase amount. If they can't finance you for the original amount you requested, the original mortgage company or another mortgage company might consider approval at a lower amount. Of course, the back and forth effort can be frustrating. If there's an application fee, it can also be costly.
To eliminate this problem, you should understand ahead of time what your monthly payment might be and if you can afford it. An online mortgage calculator can help. You input the cost of the home, the down payment, and the interest rate. It projects your monthly payment based on the amount financed. If you know you can't afford to pay the monthly amount it suggests, you can downgrade your expectations on home pricing before you seek pre-approval.
Your REALTOR® will gladly commit time, effort, and energy to help you find a home that meets your needs. Before an agency goes to work for you, they'll want to know that you're willing to make an equally strong commitment. A pre-approval letter tells both a buyer's realtor and a seller's realtor that you're serious about buying a home and you're ready to get started.
In a seller's market, a homeowner may have a number of prospects interested in their home. With a list of potential buyers from which to choose, a seller has more than one selling option. They won't feel pressed to consider any offer you make without proof that a mortgage company is ready and willing to finance the deal.
Our real estate professionals have the knowledge and experience to guide you through your home-buying quest. Contact us when you're ready to buy or sell your home. We can provide you with more information about the pre-approval process.
A home mortgage is a commitment that affects your financial picture for a good portion of your life. It's a big ambition, but paying off your home mortgage even a little bit early can save you thousands of dollars over time. Our real estate agents have put together this list of ways to pay your home off early.
Savvy budgeting and a commitment to "stick to the plan" will serve you well in your quest to pay your home loan off early. When it comes to any big goal like this, adopting a number of small, helpful habits is your best bet. By chipping away at your mortgage payment every month, you'll get closer to your goal.