The final step in the home mortgage processing is underwriting. This the step where a mortgage underwriter digs deep into your financials (income, taxes, savings, etc.) to make sure you can afford to borrow the money you have been preapproved for. Many deals fall apart in underwriting. Here are a few tips that’ll help you pass underwriting with flying colors.
Many home sellers think that all they have to do to sell their home is list it on Zillow and wait for the buyers to come. They’re often shocked to ultimately learn that it doesn’t quite work that way. Putting your home on Zillow doesn’t put your home on the market anymore than listing your name in a phone book. You have to actively market your home to attract buyers. Just putting it on Zillow doesn’t cut it.
When it comes time to sell your home remember this: buyers DO judge a book by its cover. Check on your home’s curb appeal before buyers see it. Does your house look warm and inviting? Or does it look like the Musters live there? These tips will help show your house in a grand light.
When you apply for a home loan you may be faced with having to pay PMI: Private Mortgage Insurance, which is basically an insurance policy the lender requires that insures that they will get paid. If you have less than 20% to put down, PMI may be in part of your monthly payment whether you like it or not.
Getting preapproved by a mortgage lender is like shopping for the home of your dreams with a check in your back pocket. You know you can afford the house you want because the mortgage lender has preapproved the funds. Being preapproved also gives you leverage when it comes time to negotiate the sales price. A preapproved buyer will always carry more weight than a buyer who has simply been prequalified or hasn’t talked to a lender at all.
According to research, homes in good to excellent condition sold sixteen days faster than other homes. They also sold for more money with fewer price reductions.
Before you start shopping for your next home you should take the time to get “prequalified” by a lender. Prequalification is the way that you learn how much home you can afford. That doesn’t mean you should but that much house, but it is a good place to start.
There are typically three (or four or five) hard lessons that every real estate buyer and seller will eventually learn during a real estate transaction. It doesn’t matter if this is their first transaction or their tenth, the lessons are always the same.
When it comes to buying a home choosing the right lender for your situation is key. In this interview I talk with mortgage broker Tom Marion of Movement Mortgage about the current state of the mortgage industry and some of the special programs Movement has to get a buyer “pre-underwritten” to close a loan in 7 to 10 days.