Mortgage Market

Maneuver Today’s Mortgage Market

Want to know how to maneuver today’s mortgage market?  Look at the recommendations below from a national mortgage loan officer that has insight into reducing your cost for your next home purchase. Whether you are a first-time home buyer or this is your next home purchase apply these recommendations and save big.

Locking Your Mortgage Rate

As long as you close before your rate lock expires, rate increases won’t affect you.  The ideal time to lock your mortgage rate is when interest rates are at their lowest, but this is hard to predict.  Your mortgage loan specialist can assist you in gauging when is the best time.  It’s worth noting that interest rates fluctuate due to market changes, and nothing is guaranteed except the actual lock itself and any fees that may be associated.

Single Family Home vs. Multi-Family Home

Single family homes are defined as 1-unit properties any 2-4 unit homes are considered multi-unit properties.  The tip here is you can use one of the units as a primary residence and rent out the other remaining.  When applying for a loan 75% of the rented units expected rental income is calculated into your monthly income thus allowing your income to be higher than it is today.  The process for applying is no different in single family vs. multi-family applicants.  There are some differences in investment properties not occupied as a primary residence, primarily down payment.  Your mortgage professional can assist you in the details.

Decreasing Your Purchase Price 

Instead of purchasing a home with the highest amount of approval.  Purchase a home that is slightly less. As an example, if your pre-approval is: $500,000.  Then search for homes that are $400,000.  The difference could save you tremendously in your monthly mortgage payment, mortgage insurance, and property taxes.  A good realtor can help you locate the right home within your budget.

Down Payment Assistance Programs

There are down payment assistance programs available by state, county, city and some lenders.  Your mortgage professional can direct you to the program that’s right for you to offset some or all of the down payment and closing cost associated with your loan.

Gifts

Did you know that you can receive a gift or grant to qualifying for a mortgage loan?  A gift or grant is something that you will not be required to pay back.  It could be a cash gift, property equity or grant. Here is a small list of allowable gifts: a co-borrower, parent, employer, institutional, local agency grant program, religious non-profit and more.  Your mortgage professional can identify what is an allowable gift for a loan.

Seller Concessions

Your realtor can help you negotiate seller concessions for the seller of the home of interest pay some of the closing cost or repairs to the home.  It’s a great bargaining tool that is often over looked when buyers get excited about the purchase.  A few thousand dollars in negotiated seller concessions can reduce your overall purchase of the home thus making an impact on your monthly mortgage.

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Contributor: LaShon Hawthorne, NMLS# 1655563

LaShon Hawthorne is a licensed Mortgage Loan Officer with American Financial Network that assist clients in achieving their dream of homeownership.  Providing mortgage loans in 50 states!

Loan Types: Traditional and Non-Traditional loans including FHA, Conventional, VA, USDA, Jumbo, Reverse, 203k rehab loans, extended rate locks, down payment assistance and more.

For More Information Visit: www.afn.corp.com/web/lashonhawthorne CALL: 1-800-441-1294