You Can Win a Bidding War For Your New Home

It’s a Sellers’ Market! Today’s market has buyers bidding against each other for a Sellers marketlow inventory of desirable homes. As if the prospect of buying a home wasn’t stressful enough, waiting to find out if your offer was accepted can heighten the emotions and make the waiting unbearable. Luckily, there are things you can do to better your chances of winning a bidding war.

Use a Pre-approval Letter:
A Pre-Approval letter is different than being Pre-Qualified.
A Pre-Qualification is a snapshot of your credit worthiness based on the verbal information you supply to your lender.verifies your income and how much your bank might lend you based on your credit.
A Pre-Approval Letter means that your lender has essentially underwritten your application and it is simply pending an appraisal. Submitting your financing documents to your lender before making any offers will allow you to act quickly when you are ready to make an offer on a new house.

Start with Your Best Offer:
You only get one chance to make a good first impression, which is why you should submit your best offer up front if possible. By doing your research and determining the value of comparable homes in the neighborhood, you can present an accurate and competitive offer. In an extremely competitive market, most houses will sell for over the asking price, so be sure to factor that into the price of the home you are considering.

Limit Your Demands:
Sellers want clean offers; not those that come with a lot of demands or contingencies. For example, if you can avoid asking the seller to cover your closing costs, or trying to get them to make repairs as part of the negotiations, you might have a better chance of having your offer accepted. Sellers have the advantage in a multiple-bid situation and the less complicated you make yours, the more likely they are to say yes.

Give the Seller More Time:
If you can be flexible with your moving timeline, it might give you the competitive edge to offer the seller more time to move out of the home. Not only will they be selling at a price they are comfortable with, but they now have the added bonus of making their own move less stressful. You can offer to have the seller rent back the home for a period of time, or push back the closing date.

Make it Personal:
It may seem silly, but some buyers are swayed by the personal touch of a hand written letter expressing why their home is perfect for you. You can introduce yourself in the letter, tell the seller all about your family, the things you love about the house, and the memories you hope to create there. If the seller is sentimental, they might appreciate the personal touch you’ve added to your offer and feel better knowing who is going to be living in their home.

Stay in Touch:
Even if you find yourself on the losing end of a bidding war, have your realtor keep in touch. A lot of things can happen between an accepted offer and the actual closing. If your offer was in top consideration, you might win out in the end should the initial buyer have complications.

Reach out to Me to discuss your mortgage options and to take advantage of my FREE JumpStart Mortgage Pre-Approval service

https://rickcignoli.norcommortgage.com/

 

 

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5 Tips for Millennial Home Buyers

MillennialsThe Millennial generation has a considerably more challenging road to homeownership in large part to increased student debt and challenges with credit. Oftentimes, Millennials looking to buy their first home are under the impression that it’s not possible and choose to rent instead. However, by following these 5 buying tips, the Millennial generation can make the goal of owning a home a reality.

1.) Stay Within Budget
It can be easy to get caught up in a passionate bidding war when you think you’ve found your dream home. Unfortunately, this often happens to First Time Home Buyers who forget to stick to their budget. Once Pre-Approved for a mortgage and a down payment is calculated, it’s imperative to stick to those numbers and not offer more. A real estate agent can run comparables of homes in the area you are looking at and help determine a reasonable offer.

2.) Save!Family Finances
This might seem like an obvious tip, but for Millennials, it’s crucial. With surmountable student debt, high credit card bills, and the overall cost of living, saving is often easier said than done. However, by determining the cost of your potential down payment, even setting aside a small amount each month over time will help you reach your goal of owning a home within your set budget.

3.) Get the Help of Professionals
It might seem tempting to take on the home buying process on your own, perhaps with the idea of saving a little money in mind. In reality, enlisting the help of a loan officer and a real estate agent can save you a lot of headaches down the road. When it comes to any complicated closing issues, or language in contracts that might be confusing, you’ll be thankful that you have the help of people familiar with the process.

4.) Find Who You Like and Who You Know
Building off of the last tip, there are many professionals you can choose from to help you. Make sure that you are comfortable with who is helping you buy your first home. Take the time to find somebody you can trust and can communicate well with so that your needs and goals are being met throughout the entire process.

5.) Consider Doing it Yourself
It is a great idea to have an idea of what home repairs and projects you are willing to take on yourself as a new homeowner, and which you would want a professional for. In addition, which projects would give you more return on your investment should you decide to sell later on. By doing this, you’ll be sure you are submitting the best offer on the home you want and hopefully will minimize and surprise expenses down the road.

pre-approval-2As they say, “where there’s a will, there’s a way.” And today’s Millennials are proof of that. Do you have questions about buying your First Home?
Reach out to Me to discuss your mortgage options and to take advantage of my FREE JumpStart Mortgage Pre-Approval service.

https://rickcignoli.norcommortgage.com/

 

How To Buy a Home Even With Student Loan Debt

Student Loan Debt may be at all-time highs, but Millennials aren’t letting that stop them from buying a home. In fact, a recent report shows that 27 percent of all First Home Buyers have student loan debt. And First-Time Buyers? A whopping 40 percent have student loans.

Family FinancesSo how do they do it? How do they keep making monthly loan installments while saving for a down payment or paying a mortgage at the same time? Here’s how today’s buyers are making it happen.

They’re choosing the right loan programs. For buyers with student loan debt, an FHA loan can be a great option. And both Fannie Mae and Freddie Mac have made favorable changes to how student loan debt factors into the mortgage qualification.

They’re getting gifts and co-borrowing. Many buyers are choosing to use gift money from family members to pay their down payment or other costs, while others are choosing to co-borrow their mortgage with a significant other or roommate. Both of these help lower the costs of home buying at the outset.

They’re taking advantage of down payment assistance programs. Saving for a down payment is often the hardest part when you’ve got student loan debt on your shoulders. Fortunately, there are hundreds of down payment (and closing cost) assistance programs that can help cover these expenses and more. Check your state, city and county to find out if there are any you qualify for.

They’re working on their credit. A great credit score means a great mortgage rate — and less money paid monthly and over the life of the loan. Today’s buyers are boosting their scores by paying down their debts, avoiding late payments and watching their credit reports carefully.

As they say, “where there’s a will, there’s a way.” And today’s Millennials are proof of that. Do you have questions about buying a home while dealing with student loan debt?
Reach out to Me to discuss your mortgage options and to take advantage of my FREE  JumpStart Mortgage Pre-Approval service

 

Mortgage Pre-Qualification vs. Pre-Approval – They Are Not the Same

The terms used in the initial steps of getting a loan can be confusing and misleading. Understanding the difference between a Pre-Qualification and a Pre-Approval helps determine how much house you can afford, and if you are qualified to get a loan. Here’s a breakdown of the difference between two very similar and equally important terms:
Pre-Qualification:mortgage finance
The Pre-Qualification is a less involved process than the Pre-Approval and can be done over the phone or online. Mortgage Pre-Qualification is an informal snapshot of a borrower’s creditworthiness.
It is based on verbal information provided by the borrower. As the borrower, you provide the loan officer with information about your overall financial picture including debt, income, and assets. It does not involve an analysis of your credit report or a close look at your ability to purchase a home. The pre-qualification letter allows you to explore your mortgage options with a lender and ask any initial questions.
Pre-Approval:
Only a Mortgage Underwriter Can Issue a Mortgage Pre-Approval Letter.
The Pre-Approval Letter comes from the mortgage company you are working with and is essentially a commitment that you have a loan approved for a certain amount of money subject to an appraisal of the property you want to buy. This letter is supported by required documentation that you voluntarily provide including;
– Credit checkpre-approval-2
– Income/employment verification
– Analysis of your financial obligations such as   credit card balances, car loans, etc.
– Copies of W-2s, pat stubs and bank statements
– Other pertinent documentation as  required
Once you are Pre-Approved, you can move forward with looking for a home confident in knowing you have a conditional commitment for the money you need to buy a your new home.

Loan Officers can not issue a valid Mortgage Pre-Approval Letter.
A valid Mortgage Approval has been underwritten by an authorized underwriter (an underwriter is the final person that says your loan is approved). If an underwriter Pre-Approves your application upfront, issues you a valid Mortgage Pre-Approval Letter, all you have to do is find the home you want, have it inspected and appraised, and you should be able to close in less than a month. This gives you leg up on an offer from somebody who has not been pre-approved.

If you are looking to buy a new home, a Mortgage Pre-Approval Letter is the smartest way to proceed. Call Me at 860.945.9284 to discuss the right mortgage option for your family and to take advantage of my FREE Jump Start Mortgage Pre-Approval service.

https://norcommortgage.com/blog
https://mortgagemarketdigest.wordpress.com/2013/03/12/whats-the-difference-between-mortgage-pre-qualification-and-mortgage-pre-approval/

 

 

Thomaston CT Homes for Sale – Eligible for 100% USDA Financing

usda 3
Smart Home Buyers in Thomaston CT are very interested in the USDA Rural Development Guaranteed Housing Loan.

 

They find this mortgage particularly attractive because:
• No Down Payment is required
• Have the ability to finance 100% of the home’s appraised value
• Lower mortgage insurance than conventional or FHA loans
• More lenient credit score requirements than for conventional loans
• Unlike VA loans, there is no military service requirement
• The only zero-down loan on the market besides the VA mortgage

OVERVIEW
The USDA Rural Development Guaranteed Housing Loan program offers many benefits to qualified buyers
• Up to 100% Financing of the home’s Appraised Value – No Down Payment is required on eligible homes
• Ability to finance Closing Costs when the Appraised Value is higher than the contract sales price of eligible properties
• One 30 year fixed rate mortgage at today’s low-interest rates
• Buyers with <20% down payment can afford higher priced listings because Monthly MI is cheaper than premiums associated with conventional and FHA mortgages
• No Pre-Payment Penalty. No Re-Capture Tax like CHFA
• No limit on Seller Contributions. No limit on Gift Funds
• No Cash Contribution required from buyer
• Credit Scores down to 620.

CAVEATS
The USDA Rural Development Guaranteed Housing Loan program does have a few restrictions:
• The home must be in USDA “designated rural areas” like Thomaston, CT
• Adjusted household income cannot exceed established income limits
• Available to First Home Buyers and Repeat Buyers purchasing a single family home as their primary residence in a USDA eligible area
> Cannot own any other type of residential property at time of closing

My expertise with the USDA Rural Development Guaranteed Housing Loan expands my ability to provide clients with the right home financing solution. Get Pre-Approved
Call Me to discuss your mortgage options and to take advantage of my FREE  Jump Start Mortgage Pre-Approval service.
You just might be able to move into your new home in Terryville, CT with little or no out-of-pocket money and low affordable monthly payments.

43 Beach Avenue Terryville CT For Sale – Eligible for 100% USDA Mortgage

Fully remodeled home with brand new kitchen, 3 bedrooms and 2 baths
Priced right for Millennial First Home Buyers!

And … It’s Eligible for Up to 100% USDA Financing.

The USDA Guaranteed Rural Housing Development Loan offers many benefits to qualified Millennial Home Buyers.usda 3
• No Down Payment Required! Finance up to 100% of the home’s appraised value.
• Ability to Finance the Closing Costs into the loan when the appraised value is greater than the negotiated sales price.
• One 30 year fixed rate mortgage at today’s low interest rates.
• Reduced Mortgage Insurance. Beats FHA any day.

43 Beach Ave Terryville (2)
https://www.realtor.com/realestateandhomes-detail/43-Beach-Ave_Terryville_CT_06786_M30883-42301

Reach out to Rick Cignoli to find out if the USDA Guaranteed Rural Housing Development Loan is the right mortgage option for you and to take advantage of his FREE Jump Start Mortgage Pre-Approval service.

Then call Janet Laviero at Select Realty Associates, LLC 860.583.9977
to schedule a showing and be ready to make an offer.

24 Benedict St. Terryville, CT For Sale – Eligible for 100% USDA Mortgage

Fully remodeled home with brand new kitchen and 4 bedrooms
Ideal for Millennial First Home Buyers!
And … It’s Eligible for Up to 100% USDA Financing.

The  USDA Guaranteed Rural Housing Development Loan offers many benefits to qualified Millennial Home Buyers.usda 3
• No Down Payment Required! Up to 100% Financing of the home’s appraised value.
• Ability to Finance the Closing Costs into the loan when the appraised value is greater than the negotiated sales price.
• One 30 year fixed rate mortgage at today’s low interest rates.
• Reduced Mortgage Insurance. Beats FHA any day.

24 Benedict Terryville CT

https://www.realtor.com/realestateandhomes-detail/24-Benedict-St_Terryville_CT_06786_M30277-85144

Reach out to Rick Cignoli to find out if the USDA Guaranteed Rural Housing Development Loan is the right mortgage option for you.
Take advantage of his  FREE Jump Start Mortgage Pre-Approval service.
Then call John Petraroia at Property Partners Real Estate 203.217.8658 to schedule a showing and be ready to make an offer.