| The "Basics" | Penny's Tips | The "Details" | Mortgage Caclulators |
The "Basics"
| The very first step in the buying process is to find out how much money you can borrow from a lender |
| Why? When you contact me to help you find a home, I will know that we are searching in a price range you can afford. This will also prevent you from finding the home of your dreams only to find out later that you can't afford it. Or then again, you may be pleasantly surprised to find out that you can afford a much more expensive house than you ever realized. Also, many sellers request proof that you can afford their home when presenting them with an offer, so they feel comfortable taking their home off the market while you go through the loan approval process. Being pre-qualified puts you in a much better bargaining position when making an offer on a home. |
| Pre-qualifying for a loan is just a simple phone call away |
| The two most important pieces of information the lender needs are your monthly income and expenses. If you feel you may have credit problems, then I would suggest you pay to have a credit report pulled in order to find out any immediate problems this may pose with the lender. (Some lenders will pull your credit report for free.) Don't think that just because you have bad credit, you cannot get a loan. However, the interest rate may be higher or a larger down payment may be required since the loan is a higher risk to the bank. |
| I would recommend that you contact a local lender as opposed to someone from out of town |
| Since time is of the essence in a contract, your loan could get lost in cyberspace with an out-of-town lender, thus preventing your home from closing on time. At least with a local lender, you are able to meet face to face if a problem arises. If you need recommendations on lenders to call, please contact me and I will be happy to provide you with a list of lenders that have provided good service to me and other buyers in the past. |
|
Return To Top |
Penny's Tips
| Compare Interest rates |
| In order to compare interest rates equally among lenders, ask for a rate quote that does not have points or origination fees attached to it. If you want to know more about fees, and other lending info then head to "The Detailed" version below. |
| Request a good faith estimate |
| Ask your lender to send you a "good faith estimate" which will show you how much your down payment, closing cost and total monthly payments will be as well as the fees that a particular lender charges. Note: Some lenders offer lower interest rates only to make it up in higher bank fees they charge and put in to the closing cost. |
| Get pre-approved |
| If you are planning to buy a home within the next several months, I recommend that you actually take the time to fill out a complete loan application and get pre-approved from a lender. This step will save valuable time once you have contracted on your home. Also, applying for a loan and being turned down does not in any way jeopardize you when applying in the future. |
|
Return To Top |
The Details
| You asked for "The Details" and we aim to please, so click below for the following information: (Disclaimer: we are in no way responsible for boredom or dozing off while reading the detailed section below.) |
| What is a mortgage loan? |
| What are my mortgage options? |
| Home financing questions and answers |
| How much home can you afford? |
| Understand your credit |
| How much do I have to save to buy a home? |
| Calculate your income verses debt |
| Should you refinance? |
|
Return To Top |
Mortgage Calculators
| If you're the type of person who loves to fill in the blanks, then make sure you try out these calculators. (Just remember they are approximate so don't rely on them totally.) Call a lender for the specifics. |
| How much is your monthly payment? |
| How much house can you afford? |
| What monthly payment is needed for a house with a specific sales price? |
| How much house can you afford with a specific monthly payment? |
| Is now a good time to refinance? |
| True Cost Calculator |
| If you have a question that has not been answered on financing a home, then please contact Penny and she will make sure it is! |
|
Return To Top |
Phone: 850-980-0951
Fax: 850-980-5959
1596 Marion Ave,
Tallahassee, FL 32303