3 Ways Cash Can Kill Your Mortgage When Buying a Home
When buying a home, it’s important to plan ahead to avoid problems.
Jenni, Pat, and Ryan explain why cash can actually hurt your ability to buy a home in the current mortgage financing environment. Source your funds, pay your rent by check, and make sure you can document where your income is coming from. Cash deposits are a problem. So are money orders.
Cash can kill your dream of buying a home.
Learn more in today’s episode:
(click here to watch the episode on your mobile device)
Buying a home can be confusing, difficult, and full of bumps along the way. Hopefully our weekly videos help you make decisions and offer fun along the way.
If you have any questions about buying a home, down payment, sourcing deposits, documenting income, or other home purchase issues, we’d love to help answer your questions. Just post a comment here on the blog or the Insider Show Facebook wall and we’ll help you out as best as we can or point you in the right direction. You can also contact us on Twitter.
To stay informed and get future episodes, click here to subscribe for free. The upcoming months will be exciting as we bring in new faces and share more information that will help you become and stay a successful home owner.
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3 Short-Sighted Mistakes Casual Home Buyers Make
Realtors might not like it, but many people are “casual home buyers” and won’t get serious until they find the right home. This casual nature will often times prevent them from actually buying a home until they get serious. Sometimes that means a missed opportunity.
In today’s episode, Jennie and Ryan share three common mistakes that casual home buyers make along the way.
Don’t make these mistakes!
Let’s go inside!
(click here to watch the episode on your mobile device)
Here are three things to avoid, even if you are just a casual home shopper:
1. Financing new debt
If you plan to buy a house within the next year, you shouldn’t finance any big purchases. Buying a new car or getting a new credit card may ruin your credit score or your debt ratio and make it more challenging to get the home you want.
2. Renewing your lease
Management companies are more dedicated to their paperwork nowadays and they do not want renters breaking their lease. If you are approved for a home you may not be able to move into it because you are still bound to your lease. See if you can get into a month to month agreement.
3. Falling in love with a home before mortgage pre-approval
You do not know what you are qualified for before pre-approval. If you fall in love with a house you can’t afford, it can be incredibly disheartening. Many people don’t consider utilities, property taxes or insurance when shopping for their next house. When you are pre-approved, all of the guesswork is removed and you know exactly what you can afford.
Stay tuned for next week when we talk more about the real estate market and what to look for when home shopping. If you have a topic you’d like us to cover, let us know. We’ll do a whole episode on it.
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Top 3 Challenges when Buying a Luxury Vacation Condo
We were down in Miami to shoot this week’s episode!
In this economy, you can get great deals on luxury condos in warm weather spots like Florida and California. To prepare for warm-weather getaways during winter, Jennie answers one viewer’s question about the top three challenges that someone faces when trying to buy a luxury condo.
Let’s go inside!
(click here to watch the episode on your mobile device)
Here are three obstacles buyers can face when trying to buy a luxury condo in a vacation zone:
1. The condominium association – You not only have to be approved for your loan, but you also have to be approved through the condo association. The association may also place restrictions on things like how many guests you can bring or how many parking spots you have.
2. Insurance – In an exotic location, weather may be a big factor. Some companies may not even want to insure your home based on the location of the condo and the natural risks that are associated with the area, such as hurricanes or flooding. The cost of a mortgage combined with a high insurance could mean that you are no longer able to afford the high-end condo.
3. Getting a loan – Some loan options have a limit on how much they can lend out. If you don’t have a large down payment, it could be very difficult to buy a property that’s over $500,000.
Stay tuned for next week when we talk more about the real estate market and what to look for when home shopping. If you have a topic you’d like us to cover, let us know. We’ll do a whole episode on it.
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5 Great Reasons to Buy a Home Right Now
With mortgage rates near historic lows and property prices holding steady at late 1990′s levels, it may be time to revisit the “Rent vs. Buy” debate.
In today’s episode, Jennie and Ryan have fun and list five important reasons why now could be the time to buy your next home. You’re not going to want to miss this one!
Let’s go inside!
(click here to watch the episode on your mobile device)
Here are five good reasons why it may be smart to buy your next home right now:
1) Low Interest Rates – Rates hit historic lows last week (Rates in Motion reported a 3.875% with no lender fees on a 30 Year Fixed Mortgage!). Locking into a low-interest mortgage can result in long-term savings for anyone buying now.
2) Low Prices on Homes – House prices have dropped substantially in the past few years. With plenty of homes for sale, it’s a buyer’s market! There’s no guarantee that they won’t go down a bit more; however, it is almost certain that they will go up in the next several years. If you plan on staying in your current city, this could be a smart way to save money and build equity.
3) Seller Incentives – Sellers are willing to provide incentives to entice buyers. Many are even willing to pay for closing costs, appraisal fees, or home warranties.
4) Remodeling Boom – Sellers are adding things like hardwood floors and stainless steel appliances to their homes to make them more appealing. As a result, buyers are getting more for their money! Even banks are remodeling foreclosed properties to nearly new condition.
5) Sense of Ownership – There is no better feeling than buying a home. It’s part of the American dream!
Stay tuned for next week when we talk more about the real estate market and what to look for when home shopping. If you have a topic you’d like us to cover, let us know. We’ll do a whole episode on it.
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3 Challenges When Buying a Foreclosed Home
Buying a foreclosed home can save money and be a great way to build equity. Unfortunately, with all the homes being foreclosed, banks are overwhelmed and it’s causing a lot of issues.
Today Ryan and Jennie take a field trip to a foreclosed property to look at three of the biggest issues facing people who are trying to buy and finance a mortgage on a home that was in foreclosure and is now owned by the bank.
Despite these challenges, buying a bank owned property is still a good option for many. Hopefully this information in today’s episode helps you navigate over this very rocky road.
Let’s go inside!
(click here to watch the episode on your mobile device)
Stay tuned for next week when we talk more about the real estate market and what to look for when home shopping. If you have a topic you’d like us to cover, let us know. We’ll do a whole episode on it.
Stay tuned!
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3 Underwriting Issues Loan Officers Cannot Fight
When getting a mortgage to buy your home, it can seem like loan underwriters are always causing delays and asking for more information. It may get frustrating when the loan officer doesn’t seem to be able to fight for you. Since some things are out of your loan officer’s control, we wanted to share the three things that your loan officer can’t fight:
1) Requests for additional documentation
2) Issues with the appraisal on the home
3) Verifications of Employments, Rental History, Deposits, etc.
With the way market conditions are now, underwriters have the power to ask you for anything they want in order to close your loan. This information will help you prepare for these issues and get you to the closing as soon as possible.
Let’s go inside!
(click here to watch the episode on your mobile device)
Stay tuned for next week when we talk more about the real estate market and what to look for when home shopping. If you have a topic you’d like us to cover, let us know. We’ll do a whole episode on it.
Stay tuned!
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5 Ways to Buy a Home Without a Downpayment
Would you like the benefits of home ownership, but don’t have a down payment? Since the financial crash, most 100% mortgage options are gone. However, there are at least 5 ways to still get a mortgage loan without a down payment.
Pat, Jennie, and Ryan talk about these five options:
- FHA – 3.5% down payment required, but gifts/grants allowed allowed from family
- Local Grants – Some states offer down payment help along with loan programs like FHA
- VA – 100% financing for veterans
- Rent to Own – Nice program if you have a reputable seller, be careful of scams
- USDA – 100% financing in rural areas
Learn more in today’s episode:
(click here to watch the episode on your mobile device)
Next week we’ll be covering another real estate topic. If you have a question, let us know. We’ll dedicate an entire episode to your question.
Stay tuned!
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What are the Costs of Buying a Home? (Episode 8)
Today Jennie meets with Kurt Clements (a licensed mortgage consultant) and asks him the question many new home buyers are wondering.
Besides down payment, what are the costs of buying a home?
- Application Fee (includes appraisal):
- Home Inspection:
- Homeowner’s Insurance:
- Mortgage Closing Fees (can be paid by lender):
Ranges from $300-500. Includes cost of the appraisal to the lender.
Determines the quality of the construction of the home
You have to pay the first year premium before closing, but the mortgage company will pay the next premium that is due.
If you agree on a higher rate, the mortgage company may pay your closing fees.
He provides more insight in today’s episode:
(click here to watch the episode on your mobile device)
Next week we’ll be covering the topic of down payments and what to do if you don’t have money saved up to buy a home.
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How to Finance a Million Dollar Home (Episode 7)
One of our viewers asked about financing a jumbo mortgage, so we went on a field trip to the open house of a million dollar home in the area. Ryan gets a little distracted by some of the amenities, but they finally get together and discuss the following requirements to get a mortgage on a home this size.
1) High income If you don’t have a high enough income, you aren’t going to be able to make the monthly payments on your home.
2) Big down payment: Right now the U.S. government continues to support higher income homes by keeping interest rates low, but the government is going to quit backing these types of loans in the future.
3) Sizable financial reserves Banks are going to be less willing to lend large loans to individuals if they are not supported by the United States government.
In the future, buyers looking to purchase a million dollar home may have to turn to private financing. It can be more difficult to finance, because they may require more than a 20% down payment, and a solid financial situation before you can be approved.
Check it out!
(click here to watch the episode on your mobile device)
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3 Ways to Ruin Your Home Purchase Transaction (Episode 6)
Today Jennie and Pat discuss the top three ways that you can ruin your purchase transaction:
1) Lack of commitment: Before Realtors can be dedicated to you, they need to be certain that you are committed to buying a home.
2) Setting expectations too high: While home buyers may hear some “suburban legends” about amazing homes for low prices, they need to realize these bargains are quite rare. Real estate is about buyers and sellers working together to create a market, and if the buyer has unreasonable expectations, it is hard for both sides to reach an agreement.
3) Withholding information from your lender and Realtor: If you give your real estate agent misleading information, they are not able to provide you with a house that is within your needs, and everyone’s time is wasted. Entering into a loan with untrue information can also lead to being charged with loan fraud.
Here’s more!
(click here to watch the episode on your mobile device)
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