Why Buy a Home Now?

Because of our military veteran's service, they've earned the right to take out a VA Home Loan.  With roughly $15,000 in cash, a Veteran could buy a $450,000 home with $10,000 a year taxes and $1,500 annual home insurance.  Not bad right?

Even if you are not a Veteran, you 3 amazing options.

#1 -  Mortgage loans are still historically cheap.  Right with good credit, they're about 4% for a 30 year fixed loan.  If you are in a 33% tax bracket - which most of us are - the effective mortgage rate drops under 3%.

#2 - The 203(K) Renovation Loan finances big ticket home improvements (kitchen, baths additions etc.) The FHA 203(k) Renovation Loan allows us to borrow the purchase price of the home minus your down payment, plus money for renovations. And a single loan and closing.


#3 - The FHA loan is the easiest loan to qualify for.  It offers super low down payments or 95% financing.  Also, low closing costs and much easier standards for credit qualifying.  It's ideal for first time home buyers. It is also "assumable" meaning, you can transfer it when you sell the home to the buyer.    They 'll get the same great rate that you were paying.  

Home Loan Pre-Approval-First Time Home Buyer

So you decided you want to purchase a house and would like to start looking for that dream home, however you are unsure how to start the process. As a first time home buyer the excitement of owning a home has led you to start looking on the internet and you found 

a few houses you wouldn’t mind checking out over the weekend. You decide to make plans to contact a Realtor to begin the shopping process. Upon contacting a Realtor regarding the listings you would like to view, she begins asking questions like, “Do you have a home to sell? Are you renting? What is your time-frame? And last of all, do you have a home loan pre-approval?” No, so now what do we do? What follows are 3 very valuable tips to getting the home search off on the “right foot”.

3 Valuable Tips The First Time Home Buyer Should Follow

1. Don’t Waste Your Realtor’s Time – When you contact a Realtor, be upfront about where you are in the home buying process. The reality is before you are shown homes by a Realtor, they will want to know whether or not you can not only afford the home, but more importantly will you qualify for a home loan. You can’t blame them as their time is valuable!

2. Contact CHL Mortgage and set up an appointment with a Loan Officer (in person or over the phone) and begin the home loan pre-approval process. By going through the pre-approval process, you will gain an understanding of your:

Credit history and profile – is your credit score sufficient to qualify for a mortgage and if so, you will be advised of the best mortgage options and home loan programs available to you. Should you have some issues with your credit, your Loan Officer may be able to make recommendations on how to possibly improve your credit.

Income Documentation – based on your income, down payment availability and credit scores, determine how much of a home loan will you qualify for and most importantly, what is the estimated monthly payment including your property taxes and homeowner’s insurance premium. Knowing what your estimated monthly housing payment will be will help guide you in searching for homes in your “affordability” range.

Some of the questions and information you will need for the pre-approval is listed by clicking on the image to the right →

3. Have Your Home Loan Pre-Approval Letter In Hand – By having obtained home loan pre-approval from a reputable home loan lender, CHL Mortgage, you automatically demonstrate that you are a serious buyer and the Realtor will work diligently on your behalf to assist you in finding your dream home. With a home loan pre-approval letter, should you want to make an offer on a home, your Realtor will present the offer to the home seller. Without a home loan pre-approval letter, chances are your offer will NOT be presented.

First Time Home Buying Seminar

Here are some of the highlights of a home buyer seminar that I attended last night given by Bruce Silva, EVP at CHL Mortgage in Melville, NY.  

• First Time Home Buyers - 3% Down payment!
• 5% Down Min for all owner occupied
• Requires PMI (Private Mortgage Insurance) 
• 700 FICO score Minimum w/ 5% down 
• PMI can be paid as a single premium
• Rates are approximately 3.875% today

Upfront Mortgage Insurance Premium (UFMIP) - Chooses to pay PMI as a one time fee.

• This premium is added to the base loan amount and therefore financed over the term of the loan The UFMIP is 1.75% of the mortgage amount

Monthly Mortgage Insurance Premium (MMP) 

• This premium is paid monthly and is added to the normal monthly mortgage payment.  This is .85% REDUCED from 1.35% of the loan amount and will last the life of the loan. 

There has never been a better time to buy a hone than right now.

Email me at ranastasio@signaturepremier.com