Rebecca: Homebuyers & Mortgage
🏡How to Buy a Home • Real Estate Info🏡 NMLS 91445 let's get started👇🏻
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First Time Homebuyers
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Fact or Fake
🚨Paying off debt to raise your credit score could be a massive mistake!
Here’s how to avoid this scenario ⬇️
It’s not the best idea to drain your savings to pay off debt. Instead, work with your lender to pull a credit report and run a simulator to compare your options. Even better advice is to start looking for a home early so that you understand what you want and what your options are.
I get asked a lot about when homebuyers need to have their money ready to pay closing costs. The short answer is to have the money ready for closing day, which is usually about 30 days after the offer is accepted.
Make sure to let your lender know when and from where you are getting the money so there are no last-minute surprises that could slow down the process. If you have any other home-buying questions, drop them in the comments below ⬇️
1️⃣ Lack of Independence: It can feel like the lender, appraiser, and title company have a vested interest in pleasing the builder. This might lead to less independent assessments of the property's value and potential issues.
2️⃣ Potentially Inflated Costs: In some cases, builders may charge higher prices for new construction homes. When everyone in the process is connected to the builder, it may be harder to negotiate a fair price.
3️⃣ Limited Room for Negotiation: With everyone seemingly on the builder's side, negotiations on terms, upgrades, or repairs can be more challenging. You may have less leverage to get what you want.
4️⃣ Construction Quality: Sometimes, builders prioritize speed over quality. With the various parties connected to the builder, there might be less scrutiny on construction quality.
5️⃣ Conflicts of Interest: Conflicts of interest could arise when the builder is a major client of the lender, appraiser, or title company. This can lead to biased decisions.
To navigate these challenges, it's crucial to do your due diligence, get an independent inspection, and work with professionals who prioritize your interests. Remember, it's about finding the balance between your dream home and sound financial decisions.
Can you buy a home before starting a job? The answer is yes, but it’s not very simple.
You need to meet a few different qualifications to apply for a loan in this scenario including the start date being within 60-90 days, must be a salaried job without fluctuations and the employer cannot be a family member.
If you’re getting a new job, making a big move or you’re doing both, reach out - I’m here to help make the homebuying process clear and drama-free.
Did you know that a home that ISN’T in perfect condition can still get an FHA loan? That’s right! As long as the home doesn’t have sinkholes, rodent infestation, holes in the roof no septic system, and a few other no-brainers, it can qualify for a conventional loan!
Are you looking to buy a home? Let’s connect!
For me, a loan isn’t just a transaction. I create a relationship with every client I work with, and their mortgage becomes personal to me. Buying a home is the biggest financial decision anyone could make, and I want to be there to support my clients 100% of the way… while getting the loan closed, of course! #RelationshipsNotTransactions
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Pro Tip: Be honest with your loan officer!
If you recently had a big life change that affects your finances like a job change, it is important to let your loan officer know so that problems with your loan don’t arise down the road.
In the end, your loan officer is trying to close your loan as soon as possible and can’t do this without the most accurate and up-to-date information.
Here’s something you may not know 🚨 Don’t pay off your debt before getting a mortgage! Here’s why…
When you work with an experienced lender, they will compare what you need to buy against what you qualify for. If the lender thinks you need to pay off your debt, or some of your debt, we will let you know!
This process can be confusing, so if you have questions, let me know. I’m here to help!
Guess what?! You’re first home, doesn’t have to be your forever home!
Ideally, you should stay in your home 3-5 years before selling to avoid any capital gains taxes and build equity. If you’re stressed about finding your forever home as a first-time homebuyer, don’t worry! Take advantage of the benefits of homeownership and know that the right house will come along!
The lowest rate likely isn’t the best deal and here’s why!
Lower rates come with higher closing costs which usually outweigh any savings you may have had over the life of the loan. Of course, this depends on your unique loan scenario so connect with me for more information on what you can do to get the best deal!
In today’s market, it’s tough to buy a home, BUT it’s not impossible! Here are some assumptions to set aside during the home-buying process ⬇️
Don’t obsess over the current interest rate
A longer “average time on the market” for a home can be a good thing
Be realistic about your monthly payment
It’s okay if an all-cash payment isn’t in the cards for you
If you have more questions about what to expect in the home-buying process, reach out to me or my team!
Here are a few hard truths…
1. Home prices will continue to increase
2. The home that is a “smart buy” likely won’t look like or have everything you want
So, here’s what you can do! Get creative with a Homestyle Renovation Loan which is a 30-year fixed conventional loan that allows for repairs and improvements financed into the loan. If you’re looking to get a Homestyle Renovation Loan, let’s talk!
Contrary to popular belief, if you’re looking to buy a home, an FHA loan might be for you! Many homebuyers think FHA loans are just for first-time homebuyers, but this isn’t necessarily true. Here are a few scenarios where an FHA loan would work for you…
🏠 Have a lower rate or lower mortgage insurance
🏠 Buy a 2-4 unit property with a low down payment
🏠 Have the option to refi without an appraisal in the future
🏠 And more!
Let’s clear up some mortgage misconceptions!
1️⃣ Loan programs have different guidelines around the minimum credit score needed.
2️⃣ When it comes to minimum scores it can vary quite from what you may read online
3️⃣ When it comes to your actual credit history, two key things are your payment history and any negative marks
For more information on how your credit score impacts the home-buying process, give me a follow!
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The CFPB's outlined proposals include:
1. **Removing Medical Bills**: Consumer reporting companies would be prohibited from including medical debts and collections in reports used for underwriting decisions.
2. **Restricting Creditor Reliance**: Creditors would no longer be allowed to consider medical bills when evaluating credit applications.
3. **Ending Coercive Practices**: Debt collectors would no longer use credit reports as leverage to pressure consumers into paying questionable debts, as unpaid medical bills wouldn't appear on these reports.
This initiative is the CFPB's response to a 2022 report indicating that around 20% of Americans have medical debt. Yet, research highlights that medical billing data doesn't reliably predict future repayment and is often riddled with inaccuracies. By addressing these issues, the CFPB aims to empower individuals facing medical debt and ensure fair and accurate credit reporting.
#MedicalDebt #CreditReports #Homebuyertips #CFPB #tiktokpartner #lifeontiktok #greenscreen
Found a home that’s a little rough around the edges but has great bones? There is a loan option for you! An FHA 203k is a specialized FHA loan that allows you to renovate the home and finance the repairs back into the home.
These types of homes can take a little longer to close, but the payoff is worth it, and working with a knowledgeable loan officer will make the process smoother. If you’re interested in learning more, reach out – I’d love to connect!