3 Tips for Smart Home Financing

Beth Sterner
Beth Sterner
Published on July 24, 2016

As we move forward from the recent housing market crash, we need to remember the tremendous financial undertaking of purchasing a new home. Here are 3 tips for dealing with financing to help you close on your next home. Pre-Approval Is Important. The first and most important thing to know is the difference between pre-approval and pre-qualification. If you as a buyer are pre-qualified for an amount of money, this means you “may be” qualified to loan x amount of money passed on a superficial look at your finances. When you are pre-approved, the lender has taken a more in-depth look at your actual income, credit history and debt. The pre-approval information allows you to have a realistic price point for a house you can afford and prevent getting in over your head with a house you cannot afford. Mortgage Selection. In this category it is best to consult a professional mortgage lender. Depending on your situation (credit card debt, student loans, etc.) you may opt for the 30-year mortgage to lower your monthly payment. If you are financial sound and have minimal debt, you will likely decide to go with a 15-year or 20-year mortgage to lower the interest rate and ultimately pay of your house in a shorter amount of time. A few bullet points to consider when choosing the mortgage that best fits your situation.

  • APR (Annual Percentage Rate)
  • Interest rate
  • Monthly payment
  • Lender fees
  • Loan type, such as an Adjustable Rate Mortgage (ARM) or 30-year fixed mortgage rate
  • Lender’s reviews and ratings
  • Lowest cost over an amount of time

Research the Home You Want. It does not cost anything for a buyer to use a local real estate professional to assist with their search. A realtor can perform what is known as a Comparative Market Analysis (CMA) to help you decide what is a fair price for the home you want. If homes in the neighborhood have sold for 5% less than asking price, you should start your offer about 8-10% below the sellers asking price.   Beth Sterner is a Real Estate Agent and Realtor® in Mooresville, North Carolina. Beth practices real estate in Mooresville, Troutman, DavidsonCornelius, Huntersville, Denver, Sherrills Ford, TerrellCharlotte and the surrounding areas.

Beth Sterner can help you with all of your Real Estate Needs! Give me a call! 980-228-1051 [email protected] BethSternerRealEstate.com  


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