5 Tips For First Time Homebuyers

5 Tips For First Time HomebuyersYou’ve decided that it’s time to stop renting and jump into home ownership but there are a few things that you should do before making that leap. Some of these things need to be done well before you start traipsing through house after house.

The very first thing you should do is check your credit

Not just your credit score, but your credit reports. The “big 3”: Experian, TransUnion and Equifax, will give you a complete overview of your credit situation. If there are discrepancies, get them cleared up. This can take weeks or months. If your credit score is low, you may need months or even a year to raise it. Having a good credit score can make a huge difference in how much interest you pay on your mortgage, so it will be worth putting off looking at homes until you are ready and able to buy.

Next, save, save, save

Having a decent or better down payment can mean the difference between getting the house you want or not. 20% is a good figure to shoot for, if you can save more, it will give you a cushion in case you need to fix things in the home or pay any extra fees. Plus it helps raise that credit score too!

Get preapproved for your mortgage

Getting preapproved can and will give you a leg up over other people making offers on the same home as you are. A seller who knows that you can get financing and settle more quickly will favor you over another buyer who doesn’t. It will also mean that you stick to your budget. If you are preapproved for a mortgage that will be comfortable for you to pay each month you will be less likely to be talked into a home that is above your price range.

No large purchases until after settlement

Don’t shop for furniture, cars or make other big purchases until after you have settled on your home and the money has been paid out to all parties. If you make any large, expensive purchases, especially on credit, prior to settlement you may end up without a mortgage when you are ready to settle.

Lastly, find a reputable Realtor to help you find that new home!

Definitely pick one that loves working with first time homebuyers and who will answer all your questions! A great Realtor will help you to get through the whole process safely and find a great fir home!

Buying A Home In Denver – You HAVE to Have a Competitive Offer

If you’ve been thinking about buying a home in Denver you’ll need to be sure you can make a competitive offer on the home you find. If not you won’t be living in a Buying A Home In Denver - You HAVE to Have a Competitive Offerhome in Denver! There are a few things that you should have in place before you start looking to be sure you can make that competitive offer.

Start with your down payment

You need to be sure that you have at least 10% to put down, if not more. That takes time and a will to save. But no money down in Denver isn’t going to fly. There are too many others who have saved and will make an offer with the down money necessary to make the deal.

All cash offer

Here’s an even better idea, make an all cash offer if possible. It’s not an easy thing to do, but if you are selling your current home and you have enough equity in it that you can do just that, do it. A seller who is guaranteed to close without the hassles a mortgage application will bring is going to jump at an all cash offer.

Contingencies

Speaking of selling your current home, if you want to get that new home don’t enter into a contract for it until you have one on your current home. If you haven’t gotten a contract on your home, you’ll want a contingency that lets you out of the new contract if your home doesn’t sell. If someone else puts in an offer without any contingencies you can bet your current home on the fact that the seller will take that offer over yours.

Lastly, if you can get a conventional mortgage, get one

Many sellers will turn down an offer for a buyer who has to use an FHA or VA loan. Why? They take longer to close and require more inspections. Those inspections will mean the need for more fixes that need to be made. Why accept that when they can accept an offer that doesn’t drag out the process and cost them more money?

Be sure to get your ducks in a row if you want to buy a home in Denver!

If you would like to work with a Denver Realtor who will actually help you buy a house, give me a call today! 303-452-5853

5 Ways To Get Financing For Your Investment Property

5 Ways To Get Financing For Your Investment Property

You’ve decided to get into the investment property business and need to get financing to help you buy your first property. Here are some tips to help you get in the right shape to make your investment the best it can be.

Down payment

First, you will need to have a sizable down payment. When buying a home you can get around the down payment issue by agreeing to pay mortgage insurance for a specific period of time. For investment properties there is no option for mortgage insurance. That means that you will need at least 20% down for a traditional mortgage. Higher amounts for down payments can actually help in the long run since you may qualify for better, lower interest rates.

Credit score

You will also need to be what lenders call a strong borrower. That means a good credit score. Your credit score has the biggest impact not just on getting a loan, but also better loan terms. If your credit score is below a 740 you will be less likely to get better terms, such as interest rates.

Have money in the bank

To keep that better interest rate, you’ll probably need to pay a fee that will probably range from a quarter of a point to two points. That can be a substantial fee. A “strong borrower” also will have money in the bank besides the down payment. Money for things like personal and investment related expenses for at least six months is recommended and will be something banks will look at in their decision making process.

Use a smaller bank

Look at smaller banks as opposed to big ones, especially if your down payment isn’t quite where it should be. Smaller banks will have a bit more flexibility in lending terms and will most likely know the local markets better. They may also be happier to invest locally.

Private loan financing

Financing can also be found through private loans. Some private sources are peer-to-peer lending sites like Prosper.com and LendingClub.com, which connects investors with individual lenders. If you don’t have a long track record with investment properties prepare for some push back from these sources. Individuals may just be a bit more conservative in lending their own money and have more requirements to do so.

Investing in real estate can be a solid way to make money. Just get yourself in the best financial place in order to do so.