Licensed Real Estate Broker

Understanding Mortgages

Finding the right mortgage is almost as important as choosing the right property. If you’re thinking of buying, read on to learn some of the basics.

Before you start looking, be sure to know what you can afford. Even if you don’t keep a budget, it can be helpful to track your expenses for a month and factor in annual costs to determine how much you can afford to spend on a home.

We highly recommend getting pre-qualified for a loan when you start looking. This way you will know what your budget is from the outset. Pre-qualification will let you know approximately how much financing you can get. To be pre-approved for a loan, a lender will check your credit, and verify your financial and employment information. Having pre-approval is a strong mark in your favor when making an offer.

How can you get the best mortgage? By improving your credit score, increasing your income, save for a large down-payment, reduce your debt, and make sure you’re not paying more than the property is appraised for. Shop around for your mortgage – compare costs, interest rates, and discount points.

Are you afraid that you don’t qualify for a mortgage? There are a number of ways to deal with that.

  • Share the mortgage with your spouse or another person who will be living with you;
  • Have a trusted friend or family member co-sign, even if they don’t live with you;
  • See if the lender will make an exception to their requirements;
  • Find a property that is less expensive, so you will require a smaller loan;
  • Remember that lenders have different requirements, so one may reject your application while another will approve your loan.

People who are self-employed report having a hard time finding loans. Don’t give up! Know what to expect and get guidance on how to find a lender.

Investopedia gives us information on 5 Risky Mortgage Types to Avoid.

New York City is unique because of the number of co-ops on the market. Even if you’ve bought property before, understanding the advantages and disadvantages of co-ops can be confusing.

There are some financing options that are often overlooked. These include borrowing from your life insurance policy or IRA and using seller financing.

After the closing, remember to keep receipts for home improvements! The cost of improvements can lower your basis in the home and will lower your taxable income when you eventually sell the home. Another important thing to remember is getting your home properly insured.

We have a selection of trusted mortgage brokers and other professionals that we rely on. Remember, we’re here to guide you every step of the way.

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