For RTS Orlando Faculty and Students
An Online Real Estate and Housing Resource for the Reformed Theological Seminary Community in Orlando.
Brought to you by David Gallup
An Online Real Estate and Housing Resource for the Reformed Theological Seminary Community in Orlando.
Brought to you by David Gallup
Lending regulations have tightened significantly over the past few years and the options available to the consumer have decreased. Because we are in a more restrictive lending environment, the way you shop for a mortgage as well as differences in the way you structure your financing can literally save you thousands of dollars over the life of your loan.
Whether you are about to buy your first home, or are planning to make a move to your next home, it is critical that you inform yourself about the factors involved.
Industry research has revealed that there are 6 common mistakes that most home buyers make in mortgage shopping that can have a significant impact on the outcome of this critical negotiation. If handled correctly, these issues could result in a mortgage that will cost you less.
Before you commit your hard earned dollars to monthly mortgage payments, consider these 6 issues. Effective consideration of these important areas can make your payments work much harder for you.
Pre-approval is easy, and can give you complete peace of mind when shopping for your home. Your local lending institution can provide you with written pre-approval for you at no cost and no obligation, and it can all be done quite easily over the phone. More than just a pre-qualification from your lending institution, a written pre-approval often is as good as money in the bank. It entails a completed credit application and a certificate, which guarantees you a mortgage to the specified level when you find the home of your dreams.
When discussing loan pre-approval with your lender, determine the amount for which you qualify. In addition, You need to gauge for yourself the monthly payment to which you can comfortably commit. Your current income may qualify you for payment that is higher (or lower) than an amount you would like. By working with your lender to determine your maximum monthly payment and the equivalent loan amount, you will save yourself a lot of time and emotional energy by only looking at homes that fall in your price range.
to determine the type of mortgage that will best suit your needs.
There are a number of questions to ask yourself before you commit to a certain type of mortgage. How long do you think you will own this home? What direction are interest rates expected to go and how quickly are they moving? And, is your income expected to change (up or down) in the future? and impact how much money you can afford to budget for your mortgage? The answers to these and other thought provoking questions will help you determine the most appropriate loan terms that you should be seeking.
More frequent payments (for example weekly or biweekly) can literally shave years off your mortgage. Simply by structuring your payments so that they come out more frequently will significantly lessen the amount of interest that you will be charged over the life of the loan. For the same reason, authorized pre-payment of a certain percentage of your mortgage, or an increase in the amount you pay monthly, will have a major impact on the number of years you will have to pay and will shorten your payment term considerably.
These two payment options can cut years off your mortgage, and save you thousands of dollars in interest. However, not every mortgage has these pre- payment privileges built in, so make sure you ask the proper questions.
A portable mortgage, where available, is one that you can carry with you when you buy your next home and avoid paying any discharge penalties. This means that you will not have to go through the entire mortgage process again unless you are making a move up to a much more expensive home.
An assumable mortgage is one which your buyer can take over when you wish to move to your next home. If prevailing rates move higher than your existing rate, the assumable mortgage becomes a very powerful negotiating tool making it easier and more desirable for the buyer to purchase your home.
Consider dealing only with a professional who specializes in mortgages. Enlisting their services can make a significant difference in the cost and effectiveness of the mortgage you obtain. For example, they can make the process faster and avoid costly delays.
We hope you've found this report helpful. We'd be delighted to put you in touch with a couple of lenders who our clients have found to be true consultants in determining the best loan to meet their needs.
The Hardworking Nice Guy's Team is Here for You!
I'm David Gallup, your friend in the real estate business - a very resourceful and reliable real estate consultant with RE/MAX 200 Realty. Over the past 27 remarkable years, I've confidently motivated and guided 994 clients in creating financial security for their families by successfully investing in residential property. I lead a fun loving and well trained team of very dedicated and extremely conscientious people who show up each day to serve you at our state-of-the-art facility centrally located in beautiful Winter Park, Florida.
As a result of treating our clients with extraordinary care, over 85 percent of our business comes from those who are working with us on a repeat basis or have been introduced to us by their family and friends. We greatly appreciate the opportunity to serve you.
RE/MAX 200 Realty
Each Office Independently Owned and Operated
954 S. Orlando Ave., Winter Park, FL 32789
(407) 629-6330 x215 or (800) 458-6863 x215
