Robin V. Wish - Real Living Suburban Lifestyle Real Estate



Posted by Robin V. Wish on 10/22/2018

Perhaps one of the most challenging things about buying a home is saving for the downpayment. Collecting such a large sum of money can be difficult. The truth is that most buyers actually think that they need more than they actually do to buy a home. The downpayment doesnít need to be a barrier to your path to homeownership. There are so many programs that offer low and even no down payment home loans. Read on to learn more about down payments and programs that can help you. 


First, letís look at what a down payment is and how it can help you. If you put 10% down on a $200,000 home thatís $20,000. The downpayment minus the purchase price of the home is $180,000, and that's how much your home loan will be. The more money you can put down on the house, the lower your home loan will be and the lower your monthly mortgage payments will be. A large down payment can indeed save you in the long term. If youíre looking to move into a home sooner rather than later, saving a considerable sum isnít always possible.  


Low Downpayment Mortgages


You need to decide what type of home loan you need by the amount of downpayment youíre willing and able to put down. Some benefits go along with making a down payment, but there are some negatives. 


By making a substantial down payment you may despite your savings, leaving little money for emergencies. Your mortgage rate may not be affected by a large downpayment either. It can be hard to decide what type of loan to get and just how much you really can afford.  


FHA Loans


FHA loans are among the most popular type of home loans. The downpayment thatís required is just 3.5%. The requirements are simple, and you donít have to be a first-time homebuyer to qualify. 


The drawback to an FHA loan is that you cannot cancel the monthly mortgage insurance that comes along with it unless you refinance the home. Traditional mortgage insurance is canceled when you have built up 20% equity in the house, but this isnít the case with FHA loans. 


Another positive about FHA loans is that your credit score doesnít have to be stellar in order for you to qualify. Some lenders approve FHA loans with credit scores as low as 580. 


VA Home Loans


Buyers who have current or former military service status can qualify for this zero down mortgage. These loans are benefits to veterans and current members of the Armed Forces. While no downpayment is required, buyers may put down any amount they wish. The only requirements are that buyers be members of the military either currently serving for 90 days or two years of active duty service if not an active member.   


The above options are great for those who canít afford or donít wish to put down large down payments but still hope to be homeowners. 





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Posted by Robin V. Wish on 7/23/2018

Buying a home will likely be one of the largest financial decisions you will make in your lifetime. While this may seem scary at first, itís worth noting that buying a home can also be a valuable financial investment.

When it comes to preparing to buy a home, many people just wait until they run out of room in their apartment before deciding that they need to upgrade to a home. A better approach, however, would be to start planning for your first home a year or more in advance.

Saving for a down payment is a vital step to making the best long-term financial decision. A larger down payment can help you pay off your home sooner, pay thousands or tens of thousands less in interest, and start using your home equity as an asset.

But, saving for a down payment is easier said than done. So, in this post, weíre going to talk about some of the ways you can aggressively save for a down payment so that, when the time comes, you can achieve long-term financial security from your investment.

Setting your savings goals

The first thing you should be thinking about when saving for a down payment is what your goals are in a home. Setting realistic goals in this phase will make saving for your down payment more feasible and less discouraging.

Think about what you really need from a home at this point in your life and compromise where you can.

Remember that on top of your monthly mortgage payments, youíll likely also be paying for taxes, insurance, utilities, homeowners association fees, and more.

Save on a timeline

When setting your savings goal, make sure youíre aware of the timeframe youíre working with. If you want to buy a home next year, youíll need to focus on short-term savings options. However, if youíre okay with renting for the next 5 years, investing your money could be a better option.

Lock away your savings

Treat your down payment savings like an emergency fund. Open a separate account, automatically deposit a portion of your pay into the account, and never withdraw from it. To do this, you will, of course, need to already have an emergency fund with a monthís expenses in it.

However, once youíve established your emergency fund, start immediately depositing into your savings account.

Pay off credit cards

It may seem like saving for a down payment is more pressing than paying off old debt. However, the numbers will show that making interest payments on your credit cards is essentially throwing away money that could have been used toward your down payment savings.

Adjust your spending habits

While it isnít easy to start spending less once youíve built a standard of living, there are ways to spend less money and still lead a fulfilling life. Think about where your money goes each month, including bills and services you might pay for.

Now could be the best time to cut the cord and start using a service like Hulu to save $50 or more each month.

Time for a raise?

If itís been some time since your last pay raise, now could be an ideal time to speak with your employer. To improve your chances of success, donít discuss reasons outside of work that might be influencing your decision to ask for a raise (such as saving for a down payment). Rather, back up your request with evidence of your accomplishments at work.




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Posted by Robin V. Wish on 5/28/2018

Buying your first home is a huge financial accomplishment and life milestone. The process is long, and can seem complicated at times. However, if you do your research and manage your money carefully, buying a house can be an excellent financial asset that will serve you for decades to come. 

Many people who hope to own a home in the near future arenít sure of the best way to start off on their path toward homeownership. This uncertainty leads them to put off their preparations. If you want to stop renting and start building equity, this is time wasted.

In todayís post, Iím going to give you some advice on how to start planning for homeownership, regardless of your current circumstances.

Build credit responsibly

One thing that will help you on nearly all mortgage applications is a good credit score. For those of us who had a difficult time paying off bills or had loans go into default, it can seem like a daunting task to ever raise your credit score into good standing.

However, when your score is low, it is actually easier and faster to raise than if it is already in high standing.

To boost your credit score, make sure your current debt is paid on time each month. If youíre thinking about taking on a new line of credit, consider setting it to auto-pay each month for the full statement balance. This way, youíll still improve your credit score but can also avoid costly interest payments.

Read up on mortgages and fees

There are many different types of mortgages available to borrowers in the United States. Some, such as USDA and VA loans, are guaranteed by the U.S. government. This means they often have less stringent credit and down payment requirements.

Donít be afraid to shop around between lenders. You may see different interest rates from similar lenders in your area.

Finally, make sure youíre familiar with the type of closing costs and property taxes youíll be responsible for. Itís one thing to be able to afford your monthly mortgage payments, but there are other costs to consider when it comes to being a homeowner.

Budget and save

Budgeting and saving are both skills that need to be learned and developed over time. None of us are born with the knowledge of how to best budget their expenses and earnings. However, there are some free tools available in most app stores.

When it comes to saving, remember that the more you save for a down payment, the lower your interest rate can be. The difference may seem small now, but over the lifetime of your mortgage can save you tens of thousands of dollars. Wouldnít you rather that money end up in your retirement fund than in your lenderís pocket?

Before you apply for a mortgage

If youíve saved for your down payment and built credit and are ready to take the next step and get preapproved, be aware that opening new lines of credit will temporarily decrease your score.





Posted by Robin V. Wish on 1/8/2018

Finding a mortgage lender should be easy, particularly for homebuyers who want to purchase a high-quality residence without having to worry about spending too much. However, many mortgage lenders are available nationwide, and the sheer volume of lenders can make it difficult to choose the right one.

Lucky for you, we're here to help you streamline the process of selecting the ideal lender.

Now, let's take a look at three tips that homebuyers can use to accelerate the process of choosing the perfect lender.

1. Know Your Credit Score

Your mortgage interest rate may vary based on your credit score. As such, you should learn your credit score before you begin your search for the right lender. This will enable you to boost your credit score if necessary Ė something that may help you get a preferred mortgage interest rate.

You are eligible for one free copy of your credit report annually from each of the three major credit reporting agencies (Equifax, Experian and TransUnion). Request a copy of your credit report, and you can find out your credit score and map out your search for the ideal mortgage lender accordingly.

2. Meet with Several Mortgage Lenders

There is no shortage of mortgage lenders in cities and towns around the country. Therefore, you should allocate the necessary time and resources to meet with several credit unions and banks to explore all of your mortgage options.

Each lender can provide details about fixed- and adjustable-rate mortgages, how these mortgages work and other pertinent mortgage information. This information can help you make an informed decision about a mortgage.

In addition, don't hesitate to ask questions when you meet with a mortgage lender. If you obtain plenty of information from a mortgage lender, you'll be able to understand the pros and cons of various mortgage options and make the best choice possible.

3. Review a Mortgage Closely

A mortgage may enable you to secure your dream residence, but it is important to understand all of the terms and conditions associated with a mortgage before you select a lender.

For example, if you decide to purchase a condo, your mortgage might only cover the costs of your property. Meanwhile, you still may be responsible for condo homeowners' association fees that total hundreds of dollars each month, so you'll need to budget properly.

Of course, you should feel comfortable working with a mortgage lender as well. The ideal mortgage lender should be available to answer your concerns and questions at any time and help you stay on track with your monthly mortgage payments.

If you need extra assistance as you consider the mortgage lenders in your area, you can reach out to a real estate agent for additional support. This housing market professional can provide insights into mortgage interest rates and may even be able to connect you with the top local lenders.

Take the guesswork out of finding the right mortgage lender Ė use these tips, and you can move one step closer to getting the financing you need to buy your dream residence.




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Posted by Robin V. Wish on 5/22/2017

Monthly mortgage payments for first time home buyers are generally lower than they are for repeat home buyers. As a first time home buyer, you could pay $1,200 or less to own a house. If you're a seasoned home buyer or have bought two or more houses, your monthly mortgage payments might hover around $1,400 a month or higher.

Using mortgage payment savings to invest in other areas of your life

The higher monthly mortgage payments could reflect income increases, job promotions and demands of a growing family. Yet, even with a higher salary, it's smart to lower the amount of mortgage you're responsible for. There are so many things that you can use the savings for. You could use money that you shave off your monthly mortgage payments to:

  • Grow your retirement savings
  • Invest in your or your children's education
  • Fund the startup of your new business
  • Pay off student loans, credit cards and other debts
  • Cover the costs of home repairs, upgrades and general home maintenance
  • Travel internationally

Practical steps to lower monthly mortgage payments

Saving on a mortgage can yield long term rewards. It also requires discipline. Five steps that you could take to lower your monthly mortgage payments are:

  • Send in $100 or more above your required minimum monthly mortgage installment. For example, if your monthly mortgage is $1,426,send 1,526 or more. You may have to pay $100 or more a month for several months before you notice a drop in your principal. Therefore, if you take this approach, stick with it.
  • Refinance your mortgage when rates drop. An example of this is if you purchased your house when interest rates were 8%. Should rates drop to 3.6%, your monthly mortgage payments could drop significantly. There are fees associated with refinancing a mortgage. Among these fees are the mortgage application fee, loan origination fee, home appraisal fee, closing costs and documentation fees. It's advisable to refinance only if you plan on keeping a house for several years.
  • Rent out part of your house. If you're concerned about renters paying on time, rent to two people. Charge enough so that you can cover at least half of your rent with payments from one renter.
  • Move your business to your home. Instead of paying a second mortgage for a separate business location, operate your business from within your house.
  • Apply for a longer repayment term. Your overall principal won't drop, but your monthly mortgage payments should go down.
  • Put a healthy down payment on your home. Check with your lender and ensure that the lender will let you forego mortgage insurance payments if you increase your down payment.

Life changes like job layoffs, new business startups and marriages and divorces could call for you to make lower monthly mortgage payments. Despite what you might think, you have options. One or more changes could keep you in your home. The extra money could also give you the finances to invest in other parts of you and your children's futures.




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