SW Michigan Real Estate Community Voice

Mortgage 101 Let's face it, the mortgage is the most important item in buying a home. Without the mortgage there is no home. Mortgages can be very confusing . The most important part is getting your Pre-qualification letter and Pre-approval letter . Without these letters sellers are not going to take you seriously. I have also blogged about down payments in the past and have added a Mortgage page to my website that covers Types of Mortgages and Down Payments. One of the most crucial items that affect your mortgage is your credit score. Your credit score affects the rate you get with your mortgage. When filling out your loan application there is a lot to understand. You will find a Loan Application Checklist on my website to help you with the mortgage process. Be careful when looking online for a lender. There are a lot of scammers out there. The Consumer Financial Protection Bureau (CFPB) has a great brochure to help you look into your lender. The National Mortgage Licens...

The National Fire Protection Association (NFPA) has come up with information on the risks of Portable Generators. I am forwarding this information onto you and your family. Portable generators are useful during power outages, however, many homeowners are unaware that the improper use of portable generators can be risky and deadly. Downed utility lines, power company blackouts, heavy snow falls or summer storms can all lead to power outages. Many people turn to a portable generator for a temporary solution without knowing the risks. The most common dangers associated with portable generators are carbon monoxide (CO) poisoning, electrical shock or electrocution, and fire hazards. Half of the generator-related deaths happened in the four coldest months of the year, November through February, and portable generators were involved in the majority of carbon monoxide deaths involving engine-driven tools. The National Fire Protection Association (NFPA) has a flyer to download Portable Generato...

Hidden Costs of Buying a Home You’ve saved and planned, and you are finally ready to buy your first home or move up to a larger one. It is easy to figure out how large a mortgage you can fit into your budget. Your real estate agent has tables and formulas that can determine the percentage of your income that’s reasonable for a home. However, be aware of the numerous other costs that must be considered, both for the home purchase and for the monthly payment. Loan Origination Fee This is the fee paid to your lender for the work involved with making the loan. It can be a large expense, depending on the lender and the size of your mortgage. Figure it will be between a half and one percent of the total mortgage. The loan origination fee must be paid to the lender up front, so budget accordingly. Inspections Your first big expense after your offer on the home is accepted will be inspections . Your lender will likely require a thorough inspection, but it will be money well spent for you to fi...

  Buyers ask me all the time what the difference is between Pre-qualification and Pre-approval. If you are considering the purchase of a new home or selling your home, you may be concerned with the issue of finance. If you are a buyer obtaining the right mortgage is a key step in the home buying process, but it does not have to be a stress inducing one. Talk to your lender before you make an offer. Most lenders offer pre-qualification, pre-approval, or both to help you know where you stand. Get Prequalified and be up front about the source of your down payment money. A good lender will explain the true costs of borrowing to you so you can comfortably afford the home you want as well as the monthly payments. Sellers should always ask if a buyer that wants to see their house is already pre-qualified. Pre-qualification: Is a preliminary estimate of how much you can afford to pay for a home based on information you provide. Because credit and employment information are not validate...

Down Payment 101 A down payment is a very important first step in buying and owning your own home. Having a down payment is a good sign that you’re ready to tackle home ownership and likely be able to handle the monthly expenses that come with home ownership; including the monthly mortgage payments, property taxes and any repairs that come up. Mortgage lenders require a down payment to help offset their risk. The larger the down payment the less they end up losing if they foreclose. If a buyer puts down less than 20% they will have to get private  mortgage insurance (PMI). This insurance repays the lender a portion of the loan if it goes into default. You will need to remember that PMI insurance will increase your monthly mortgage payments. The size of the down payment can affect your interest rate. Most mortgage lenders will offer a lower rate to buyers with larger down payments. The money for a down payment can come from several sources: From your own savings Gifts fr...