About Home Loans and Mortgages - About Prestamos Hipotecarios - Refinanciar Hipotecas
How much mortgage you can afford. You can save yourself a lot of time, instead of spinning your wheels. Take a minute to figure out how much of a mortgage you can afford. Usually, a lender will want your monthly mortgage payment to total no more than 28 percent of your monthly gross income (income before taxes) You need to consider current loan interest rates. The lower the interest rate, the more expensive the home you'll be able to afford.
About "For Sale By Owners" Homes - The seller seeks to save the real estate commission from the sale of his/her home. A fair number to use as a real estate sales commission is between 4% to 6% of the selling price. Some homework may help you assess the asking price versus recent home sales of similar homes in the surrounding area.
What is a Home Equity Loan - Home equity loans are a great way to take advantage of all of the equity that has built up in your home. Equity is the money that exists on paper because the value of the home is greater than the principal owned on the initial mortgage.
Equity is gained in a several different ways. Initially, equity is gained because the down payment on a home creates a difference between what the house is worth and what is paid for it. If a home originally cost $450,000.00, and the buyer puts down a twenty percent down payment, it creates the first equity. In this case, the difference between the worth of the house and the money owed would be $90,000.00.
If the home buyer was able to get an exceptional deal, then the initial equity could be higher. If the home was worth $500,000.00 but the seller really needed to sell and was willing to sell if for a small profit, the equity changes. In this case, the home buyer would have $140,000.00 in equity.
- What to do in order to sell your home as quickly:
- Price It Right. A home priced too high may turn off many potential buyers, especially with so many other homes on the market.
- Clean The House. Few things turn off interested buyers more than cluttered rooms, soiled floors and messy kitchens. Keep rooms open and clean.
- Paint The House. Scuffed walls and messy paint jobs are bad. Hire a professional.
- Update. Fix / Repair damaged carpets, cracked tile and scuffed hardwood floors. Be flexible. Adjust your schedule, if necessary, to accommodate requests for showings. You don't want to lose out to another seller down the street.
Mortgage Pre Qualifications versus Pre Approvals
Pre Approvals - Getting a loan pre-approval prior to house hunting can put that buyer in a powerful position. Pre-approval is comprised of documents that certify income/s, debts, and credit history. In addition, it tells real estate professionals, home builders and the seller that the buyer/s have the ability to buy a home.
The pre-approval process is identical to the loan application process except that the buyer hasn’t identified a property. Many lending companies will process the pre-approval free of charge to the potential home buyer. Other companies charge for the credit report and some charge an application fee.