Posts Tagged ‘first-time home buyers’

How to Find the Best Mortgage Lender with Confidence

Saturday, February 29th, 2020
Best mortgage lender
Dreaming of buying your first home? Find the best mortgage lender with confidence! Here’s how.

Finding the best mortgage lender on your journey to homeownership is important. But it can be challenging, especially if you are a first-time homebuyer. It’s a big deal because picking a lender is an important part of the home buying process. And finding the best the right mortgage is crucial. Here’s some excellent information from NerdWallet to help you navigate this part of buying a home with confidence.

5 Things You Need to Know to Help You Find the Best Mortgage Lender

NerdWallet says, “The best mortgage lenders for first-time homebuyers embrace government loans, offer low down payment options, charge reasonable fees, and help you find financial assistance programs.”

1. Know Your Credit Score and Financial History

Lenders judge you on your credit score and financial history to determine your ability to get a mortgage and the interest rate you’ll pay. So you need to know it. Knowing your credit score allows you to determine your loan options.

Credit scores of 620 are good, and the higher, the better. Scores of 740 or more will help you get the lowest interest rates. But it’s not impossible to get a mortgage with a credit score that’s in the 500s.

Find out the credit score you need to buy a house here. But keep in mind, you may be able to borrow more than what you can actually afford to pay each month. So don’t overextend yourself from the get-go!

2. Inquire About First-Time Homebuyer Programs in New York

Some lenders and state housing finance agencies partner up in order to help first-time homebuyers. Then they can help you with rate discounts, a down payment, and closing costs, or educational resources to help you get into a home. Isn’t that nice to know? So do your research on assistance first-time homebuyer programs here in New York.

Take note: Not all lenders participate. So be sure to ask.

3. Look for Lenders Who Offer Government-Backed Home Loans

Why? Because most of the time, FHA, VA, and USDA loans offer relaxed income, credit, and down payment requirements. And this allows for easier qualification. But check out this list of homebuyer loans and programs! You could rack up some big savings if you don’t rush through this process.

  • FHA loan
  • VA loan
  • USDA loan
  • Fannie and Freddie
  • State first-time homebuyer program
  • Home renovation loan
  • Good Neighbor Next Door
  • Dollar Homes

And on another note, not all lenders offer FHA, VA and USDA home loans. Their options may be limited. So, when you do your comparison shopping, always ask about availability.

4. Ask for Quotes to Compare Interest Rates

Ask several lenders for quotes (at least three), and let them compete with each other for your business. One of them will rise to the top of your list with a lower rate and lower fees. You’re looking for APRs (annual percentage rates) to get a better picture of what you’ll end up paying over the life of the loan.

You’re also looking for fees when making lender comparisons. Application, appraisal, title, and loan origination fees affect closing costs. And they vary widely depending on the lender.

Again, don’t rush through this process either. Mortgages have pages and pages of details that loan officers know how to get through quickly. Ask for clarification as needed through every step and make sure you have all the facts. Choosing a loan that matches your needs and your budget with confidence isn’t something you should feel rushed through.

5. Get Preapproved

Getting preapproved before you begin house hunting helps you in three ways:

  • Proves a lender is willing to loan you a certain amount of money
  • Signals to the seller that you are a serious buyer who they can rely on
  • Helps you look for homes within your budget

Compare preapproval options, too. Some lenders provide approval online in minutes. Others require a phone call or that you visit a local branch office to pick up your documents in person.

Be prepared. You may run into preapproval barriers. If you have a low credit score or inconsistent income, ask lenders before you apply if they’re willing to work with you on this. Some lenders will gladly help you find errors and discrepancies on your application which could get you preapproved.

Lacking Confidence in Your Search for the Best Mortgage Lender?

Are you stumped trying to find the best mortgage lender? When you’re a first-time homebuyer, shopping for a mortgage lender can get overwhelming. Just take time to compare all your options, no rushing through the process. You’ll buy a home with confidence and save money, too.

Contact me, Charles D’Alessandroyour Brooklyn Real Estate Agent with Fillmore Real Estate with questions you have about finding the best mortgage lender. I can help. Call (718) 253-9600 ext. 206 or email [email protected] today.


Charles D'Alessandro

Charles D’Alessandro
Your Brooklyn Real Estate Agent
718-253-9600 ext. 206

Want to Buy a Home in Brooklyn? Answer These 7 Key Questions First

Saturday, February 28th, 2015

buy a home in Brooklyn

First-time home buyers, answer these 7 key questions before you buy a home in Brooklyn

First-time home buyers, now is the perfect time to buy a home in Brooklyn. Interest rates are low, historically low. It makes sense to start the home-buying process now before those attractive interest rates start creeping up and before the real estate market picks up speed in the spring.

Are you lacking confidence about the home-buying process? Does taking on one of the largest, long-term purchases of your lifetime make you anxious? With a little planning, research and a solid game plan, you can be confident you’ll find the best home for the best price when you buy a home in Brooklyn.

Get answers to the following questions from your Brooklyn real estate agent, Charles D’Alessandro, for a smart home-buying process.

1. Do you know you want in a home versus what you need in a home?

Before you buy a home in Brooklyn, you must be clear on features you need in a home and which features you can live without.

Will your aging parent be living with you? Do you have a physically challenged child? If so, handicap accessibility is a must you will not compromise on.

Ever say, “Oooooo,” when thinking about granite countertops and stainless steel appliances in the kitchen? These extras are probably wants that you should be willing to compromise on.

Help yourself make logical choices over emotional ones before you begin shopping for a home. Write down your top five needs and top five wants on a wish list before you buy a home in Brooklyn.

Knowing the costs of what you want versus what you really need, will help you negotiate a better deal and help the home-buying process run smoothly.

On a side note here, if you are thinking about buying furniture, don’t. At least don’t buy it yet. Buy your furniture after you buy a home in Brooklyn. Your furniture should fit the house. The house should not have to fit your furniture.

2. Which neighborhoods do you want to live in?

Thanks to the internet, information abounds at your fingertips, and that’s a good thing when it comes time to buy a home in Brooklyn. Get online. Learn about different neighborhoods in Brooklyn.

Are commute times, schools, crime or recreational facilities a priority for you? What about noise levels? Select three to five neighborhoods you want to live in and focus on them only. Your Brooklyn real estate agent can help you identify and target Brooklyn neighborhoods based on your priorities.

Use your priority list to evaluate each property, and remember, there’s no such thing as the perfect home.

3. Have you created a budget to buy a home in Brooklyn?

You don’t want to waste time looking at houses you really cannot afford when it’s time to buy a home in Brooklyn. Creating a budget before you begin shopping for a home is part of a solid game plan.

To get an idea about what you might be able to afford, start here: If you earn $100,000, with a 30-year fixed-rate mortgage, for example, you might be able to afford a one-family Brooklyn home between $500,000 and $550,000. This figure may increase when looking at a two-family home with an income-producing unit.

Now, figure monthly expenses and debt into a monthly budget – property taxes, insurance, maintenance, utilities, student debt, car loans, HOA fees if applicable and even day care if needed. Now you will have a better idea how much of a monthly house payment you can handle each month.

Read about home affordability here: Average U.S. Family Can Afford 63% of Homes

4. How is your credit?

Lenders look at your credit report and credit score to decide whether or not to lend you money to buy a home in Brooklyn. They use your credit report and credit score to determine how much and at what interest rate to lend you money for a home.

Lenders also use the 43% rule when considering your overall debt to determine whether or not you will have trouble making monthly mortgage payments. Your monthly mortgage payments, which include your home loan, principal, interest, taxes and insurance, plus your car loans, utilities and credit cards, etc., should not exceed 43% of your gross annual income.

If your credit is bad or your credit score is low, clean it up before purchasing a home in Brooklyn. Your credit score can be improved easily by paying every bill on time and paying down high credit card debt.

By the way, think twice before getting caught up with long-term 0% financing furniture offers. This kind of financing will affect your credit rating in a poor way which will affect your ability to get a mortgage.

Order free copies of your annual credit reports from the major credit bureaus: Equifax, Experian and TransUnion. Read over them and make sure the information reported on each credit report is accurate. If you find errors, get them corrected.

5. How much should you save when you plan ahead to buy a home in Brooklyn?

Have you saved enough money to qualify for a mortgage and down payment to buy a home in Brooklyn? Saving and setting aside 20% of a home’s purchase price for down payment is ideal.

A small down payment means money in the bank for unexpected emergencies, which is comforting. Some lenders may take as little as 5% down, but the cons seem to outweigh this pro.

  • The smaller the down payment, the higher the mortgage you’ll need to qualify for.
  • If you do qualify with a down payment of less than 20% and a higher mortgage, your monthly payments will be higher.
  • A larger down payment can influence your interest rate and the type of loan you can get.
  • With a down payment of less than 20% of the purchase price, you’ll be required to purchase private mortgage insurance (PMI). PMI can add hundreds to your monthly payment depending on the size of your loan. If you’re a first-time home buyer, check with the state of New York and our local government for mortgage and down payment assistance programs.

6. Are there other costs involved?

Meet with your lender while interest rates are low. But before you begin shopping for a home, you’ll want to know what it will really cost you. Ask your lender:

  • How much house can I afford?
  • What will my rates be?
  • What will my monthly payment be for different home price amounts?

Then ask your Brooklyn real estate agent:

  • How much will home inspections cost?
  • Will there be any attorneys’ fees?
  • What about transfer fees?
  • And taxes?

Be aware of the costs of extras you’ll want to buy once you move-in such as window coverings, patio furniture, a lawn mower, garden hoses, etc.

7. Should you get pre-qualified or pre-approved before you buy a home in Brooklyn?

Sellers want to know that buyers are approved when they buy a home in Brooklyn. Plan ahead here. Get a mortgage and get pre-approved before you buy a home in Brooklyn. By the way, getting pre-approved is more important than getting pre-qualified. Know the difference.

mortgage pre-qualification is simply a determination that may be obtained through calling the lender. It states whether or not you will qualify for a loan within the lender’s current programs and standards. It states the amount of the loan for which you will qualify.

A mortgage pre-approval carries a little more weight. To obtain pre-approval, fill out an application with the lender, verify employment and income with W-2 forms, pay stubs and 2 to 4 months of bank statements. If you are self-employed, verify employment and income with your current profit and loss statement, a current balance sheet and personal and business income tax returns for the last 2 years. The lender will run your credit report after gathering this information about your employment and run your application through an automated underwriting process.

Being financially prepared could make the difference between being able to buy a home in Brooklyn or not, but buying or selling in Brooklyn does not have to be stressful. Visit Michael Reinhardt Brooklyn Attorney at http://brooklynattorney.com/free-e-books/ for a free booklet regarding the process of home ownership.

If you’re first-time home buyers who want to buy a home in Brooklyn without anxiety, call Charles D’Alessandro Your Brooklyn real estate agent with Fillmore Real Estate. Call (718) 253-9600 ext 206 or email [email protected] today. With over 27 years of experience and expertise in Brooklyn, you can be confident about the home-buying process with Charles.

Resources:

rismedia.com

houselogic.com

houselogic.com-mortgage tips

What You Need to Know About First-Time Buyers Before Selling Your Brooklyn Real Estate

Thursday, December 22nd, 2011

Should you be marketing to first-time home buyers in order to sell your Brooklyn real estate? The 2011 National Association of REALTORS® Profile of Home Buyers and Sellers has a wealth of information on first-time home buyers and will help you figure out if you should market to this large and important group of buyers.

Here are the stats (courtesy of AgBeat.com) you need to know about first-time home buyers before selling your Brooklyn real estate:

  • Long-term survey averages show that 4 out of 10 buyers are typically first-time buyers. This segment is critical to a housing recovery because they help existing home owners sell and make a trade.
    • The median age of first-time buyers was 31 and the median income was $62,400, up from $59,900 in the 2010 study.
    • The typical first-time buyer purchased a 1,570 square foot home costing $155,000.
    • First-time buyers who financed their purchase used a variety of resources for the down payment: 79 percent tapped into savings; 26 percent received a gift from a friend or relative, typically from their parents; and 7 percent received a loan from a relative or friend. Nine percent sold stocks or bonds and 8 percent tapped into a 401(k) fund.
    • Ninety-four percent of entry-level buyers chose a fixed-rate mortgage. Fifty-four percent of first-time buyers financed with a low down payment FHA mortgage, and 6 percent used the VA loan program which requires no down payment.

What this Information Means to You

If you’re selling an existing, entry-level home, you’ll most likely be selling to a first-time home buyer with a median age of 31 and a median income of $62,400. First-time home buyers are most likely to get a fixed-rate, FHA mortgage. Gear your marketing toward that buyer to have more success.

If you’re ready to sell your Brooklyn real estate, whether it appeals to first-time buyers or other types of buyers, I’ll market it to get it sold quickly and for as much as possible. Give me a call  Charles D’Alessandro Your Brooklyn real estate agent with Fillmore Real Estate for more information. at 718/253-9600 ext 206 or email me at [email protected]