Mortgages

The Difference Between Pre-Qualification and Pre-Approval

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When it comes to financing your new home, you’ll need to be approved for a home loan. Before that can happen, though, you need to know roughly how big of a loan you’ll most likely need. This is where the terms “pre-qualified” and “pre-approved” come into play.

Getting pre-qualified happens first and means that you’ll find out how much of a mortgage you might be approved for. This step doesn’t involve as much scrutiny as pre-approval, so you won’t be going through a credit check or be asked to provide tons of information on your financial situation. You’ll also learn about the different types of mortgages, so you can find the one that would be best for you.

Being pre-approved is more in-depth than getting pre-qualified. Your lender will go over your credit report and look closely at your finances. You’ll also need to fill out a mortgage application and provide the paperwork that the lender requests. You’ll get a specific loan amount, which you can use to negotiate the price of a home.

Getting started with the home buying process? Visit United Real Estate to find a local agent, and stop by our Facebook page.

Five Tips for Purchasing a Foreclosed Home

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Buying a foreclosure can help you save big money on a house, but it’s not always a quick or easy process. There are certain things you should be aware of before you decide whether or not to do it.

Use these tips on purchasing a foreclosure to help you determine if it’s worth the extra effort:

  • Don’t expect to do much negotiating to bring down the price. If you buy the home, you’ll be responsible for fixing it up at your own expenditure.
  • Get a pre-approval letter for a mortgage from a reputable lender. Don’t assume that the bank that owns the house will handle your financing.
  • Do your research and look into what other comparable properties have sold for. This helps you come up with a better offer that’s more likely to be accepted.
  • Gather a list of reliable repair companies, since most foreclosures will require some fixing up.
  • Bid at the highest price you’re willing to go, then work your way down from there, if possible. You can start out lower if the home has been vacant for awhile.

Ready to begin looking for foreclosed homes for saleContact United Real Estate today, and visit our Facebook page.

Three Easy Ways to Save for a Down Payment on a Home

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Offering a down payment is a normal part of the home buying process, but it’s one that many struggle with. Thankfully, you don’t necessarily have to wait several years to set aside enough money for this expense.

Here are a few simple tips on saving for down payment, so you can buy a new home in the near future:

  • Check out government programs for home buyers. Your local or state government might offer programs to help residents purchase a home. You might be able to get financial assistance as a first-time buyer or a loan to cover your down payment.
  • Cut down on regular expenses. You can save quite a bit of money by shopping around for lower insurance rates or by negotiating lower rates on cable, Internet and phone bills.
  • Use IRA money. If you’re buying your first home, you can take $10,000 or less from your IRA to use as part of your down payment. This transaction isn’t subject to early withdrawal fees.

Are you ready to start looking for your next homeVisit United Real Estate to find a local agent, and stop byour Facebook page for home buying tips.

Different Solutions for Different Buyers: Choosing PHH Mortgage

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Choosing a reliable mortgage company is a crucial step when you’re buying a home. You need to make sure you’re working with a company that has the right kind of mortgage for your situation. That’s why United Real Estate has partnered with PHH Mortgage.

This mortgage company offers the following benefits for home buyers:

  • A team of skilled loan processors, consultants and underwriters, as well as excellent customer service to ensure that the mortgage process goes smoothly for you.
  • A variety of mortgage products to choose from, including FHA loans, adjustable rate mortgages, fixed rate mortgages, jumbo loans and VA loans.
  • Outstanding guarantees, such as an interest rate reduction if your requested closing date isn’t met and an offer of $250 if your pre-approval decision takes longer than one day to process.

These benefits set PHH Mortgage apart from other mortgage companies, making them an ideal choice for your home buying needs.

Ready to begin looking for a new home and determining which type of mortgage is right for youContact United Real Estate today and stop by our Facebook page for more advice on buying a home.

 

Five Tips That Will Help You Secure a Mortgage

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Unless you’re in the rare position of being able to pay cash for a new home, you’re going to need a home loan to cover the cost. Obtaining a mortgage is more difficult now than it was before the 2008 recession hit, so it’s important to boost your chances of securing one.

Use the following tips to help you get the home loan you need:

  • Get rid of debt. Pay off credit cards, if possible, to reduce your debt-to-income ratio. Aim to keep this ratio lower than 36 percent.
  • Don’t apply for credit cards. Applying for new credit will lower your credit score, which can hurt your chances of getting a mortgage.
  • Fix your credit score. Make sure there are no errors on your credit report, and immediately correct any errors that you might find.
  • Offer a higher down payment. Make an offer of 20 percent or more, if you can afford to. This is a big help if your credit score isn’t high.
  • Take your time. Give yourself at least six months to financially prepare to apply for a mortgage.

Need more professional advice on obtaining a mortgage? Speak to a United Real Estate agent, and check out our Facebook page.

Bad Credit? Why Mortgages Aren’t Out of the Question

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Having poor credit doesn’t mean you’ll be stuck renting for several years. It’s possible to get a mortgage although it will take some extra effort to do so.

Expect to pay more if your credit’s bad. You might need to offer a higher down payment, and your monthly payment and interest rate may be higher than they would be for someone with better credit. You should focus on working with a lender who has experience helping people with poor credit get mortgages. Your lender will want to know why your credit is in its current shape. If you ran into sudden and unavoidable financial hardship, such as job loss, medical bills or a death in the family, you stand a better chance of being approved for a loan. If your credit is bad due to missed payments or late payments, this will lower your chance of getting a mortgage. Your lender might be able to help you find ways to boost your credit before applying for a loan.

Need help getting a mortgage with bad credit score? Visit United Real Estate to find an agent, and stop by our Facebook page for more loan tips.

Financial Considerations: Four Things Not to Do After a Loan Preapproval

A loan pre-approval is an important step in the home buying process. It shows how much of a loan you can realistically afford, based on your credit rating, income and expenses.

Keep in mind that there are certain things to do after a loan pre-approval to boost your chances of getting a final approval. These include:

  • Don’t apply for new credit: Since your lender will do another credit check before approving your loan, don’t do anything that will negatively affect your credit rating. Applying for new credit means that your score will take a hit.
  • Don’t pay off all your debt: You could be using up money that you might need for your new house. Also, closing credit cards can lower your credit score.
  • Don’t co-sign loans: These factor into your debt-to-income ratio and affect your credit score. Avoid co-signing any loans, including car and student loans.
  • Don’t change jobs: This can cause delays with the lender because they’ll need to verify your employment.

Now that you know a few things to do after a loan pre-approval, are you ready to get started with the home buying processVisit United Real Estate and our Facebook page to locate an agent.

Buying Your First House? Get an Official Free Credit Report

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Having enough money for a down payment set aside is just one of the financial concerns involved in buying your first house. You’ll also need to make sure your credit is in good shape to boost your chances of getting approved for a mortgage.

You can check your credit by ordering a free credit report once a year from each of the three major credit reporting companies, which are Experian, Equifax and TransUnion. The report shows your address, how much you owe on different debts and if you’ve filed for bankruptcy or been sued by a creditor. When you apply for a home loan, the lender will use this information to determine if your loan should be approved. Order your free report from the credit reporting companies online at annualcreditreport.com. This is the only legitimate website to place orders through for your free annual report. Avoid going to other sites that claim to offer the same thing because they often turn out to be scams.

Once you’ve checked your credit, we can help you get started on buying your first house. Visit United Real Estate and stop by our Facebook page to learn more.

PHH Mortgage Now United Real Estate’s Preferred Provider

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When it’s time to apply for a mortgage, finding a reputable lender is crucial. This is usually a time-consuming process, but United Real Estate has just made it much easier for buyers to findmortgage services.

We’re happy to announce that we’ve partnered with PHH Mortgage, which is among the top 10 originators of retail residential mortgages in the US.

PHH Mortgage has been in business for more than 20 years and offers a variety of mortgage options, including fixed rates, adjustable rates, FHA loans, jumbo loans and VA loans. They operate in all 50 states, and each location features a team of highly skilled employees that specialize in mortgage consultation, underwriting services and loan processing.

When you rely on PHH for your mortgage services, you’ll enjoy several advantages, including a same-day pre-approval decision and a guaranteed pledge to meet your requested closing date. PHH is dedicated to helping buyers find the right mortgage for their situation, so you won’t have to worry about ending up with a loan that you can’t afford.

Ready to start the home buying process? Visit United Real Estate and stop by our Facebook page!