Financing

Princeton Town Topics – Let’s Talk Real Estate – March 13, 2019

SIMPLIFYING THE HOME BUYING PROCESS INTO SIX STEPS

1. Determine your purchasing power by working with a mortgage advisor to determine your purchasing power.

2. Search for your home with a Realtor who has the knowledge of local markets and activity.  

3. Pick the right mortgage by using a team to provide competitive and versatile lending products.

4. Insure your home, family and auto with the right coverage bundled into one for a substantial discount.

5. Protect your investment with a home warranty and home protection services.

6. Close on time.  Consistent, persistence & quality service, ensures you close when you want to.

All under One Roof…

Real Estate, Mortgage, Insurance & Closing Services – Let us take you home.

Simplifying the home buying

process into Six Steps

1. Determine your purchasing power by working with a mortgage      advisor to determine your purchasing power.

2. Search for your home with a Realtor who has the knowledge of    local markets and activity.  

3. Pick the right mortgage by using a team to provide competitive      and versatile lending products.

4. Insure your home, family and auto with the right coverage bundled into one for a substantial discount.

5. Protect your investment with a home warranty and home protection services.

6. Close on time.  Consistent, persistence & quality service, ensures you close when you want to.

All under One Roof…

Real Estate, Mortgage, Insurance & Closing Services – Let us take you home.

Princeton Town Topics – Let’s Talk Real Estate – January 30, 2019

WHICH TYPE OF HOME LOAN IS RIGHT FOR YOU?

A conventional loan has lower rates for borrowers with great credit.  There are not any limits on your income, the area of your purchase, or occupancy type. It is any type of home buyer’s loan that is not offered or secured by a government entity but instead is available through or guaranteed by a private lender or the two government-sponsored enterprises, Fannie Mae and Freddie Mac.

FHA loans have some flexible guidelines and are a bit more forgiving on credit than a conventional loan and usually have a lower interest rate.  As of 2019, you can borrow up to 96.5% of the value of a home with an FHA loan (meaning you’ll need to make a down payment of only 3.5%).

USDA loans require no down payment, no private mortgage insurance is necessary and they are flexible with credit.  There are income restrictions and only certain areas are eligible for this type of loans.

VA loans require no down payment and have flexible credit guidelines.  The one requirement for this type of loan is that you must be a Veteran.  VA loans offer up to 100% financing on the value of the home.

 

Title insurance protects you and the lender from any liens or claims that may be outstanding on the property.  Unlike other insurance, this protects you from things that happened in the past.

First step in getting the insurance is a title search.  Essentially this is an investigation of the chain of title on the home.  It confirms that there are no unpaid debts, including, unpaid mortgages, unpaid taxes, forged deeds, and contractor claims to name a few. It is estimated that one third of all title searches come up with some sort of issue.  The title company works to resolve these issues prior to closing.

There are two types of policies; lender’s policy and owner’s policy.  The lender’s policy covers the lender for the amount of the loan on the home.  It decreases as the mortgage is paid down. The owner’s policy protects you by against future issues that may arise and for the full length of ownership.

 

Princeton Town Topics – Let’s Talk Real Estate – March 7, 2018

WHAT’S THE POINT OF ESCROW?

Paying a monthly mortgage payment is a reality for most homeowners. But what does that payment include? Principal and interest, yes – but it may also include escrow. Escrow is a kind of holding fund required by your lender, with funds used to pay your taxes and homeowner’s insurance. Some types of mortgages, like FHA loans, require escrow accounts. Other lenders require escrow when your down payment is below 20 percent of the home’s value (in addition to requiring private mortgage insurance or PMI).

What’s the point of escrow? Like PMI, escrow provides the lender with some assurance that required fees – taxes and insurance – are being paid, which in turn assures the home won’t go up for tax sale or be left unprotected in the event of an insurance-covered event. To some degree, having an escrow account can provide the homeowner with the peace of mind of knowing these costs will be paid from their escrow account. The trade-off: The funds in your escrow account aren’t available for investing. Like PMI, you’ll probably be able to stop escrow payments once you reach that magical 80 percent LTV figure (FHA loans are an exception). Keep an eye on your balance so you know when you can cancel and begin paying those costs directly.