Hope Leitner, Realtor®, CRS

While you're isolating at home, there are things you can do to help buy a home now or in the near future.   Instead of spending time surfing the Internet looking at homes, do the groundwork necessary to be able to purchase the home that you find. There is a lot of documentation necessary to qualify for a mortgage and to be approved.   This part of the homebuying process can be done in advance, long before you even start looking at homes much less finding the one that you want. Assemble all documents to make a pre-approval Photo ID Two months current pay stubs Last two years' W2s Complete copies of checking and savings statements for last three months Copies of statements for IRAs, 401k, savings, CDs, money market funds, etc. Employment history for last two years with addresses and contacts Proof of commissioned or bonus income Residency history for last two years with addres...

During these unsettling times, sellers and buyers are concerned about staying healthy and virus-free as we all are.   To keep all parties safe, new procedures should be considered regarding the procedure for showing houses. Agents are reporting that they are selling homes where the buyers have not physically been in the home and base their decision on the virtual tour found online.   Some states have suspended showings because they are not considered essential services and other states have not addressed the subject. In the spirit of stepping up to do what is necessary, the following suggestions should be considered: Buyers should view the pictures online first to see if the home meets their needs.   Most listing agents upload enough pictures to get a good idea of what a home looks like. Buyers should ask their agent questions that the photos don't address.   Then, their agent can go through the listing agent to ask the seller direct. It may b...

You don't have to watch TV for long before Tom Selleck, Henry Winkler or Robert Wagner will tell you why seniors should consider a reverse mortgage.   However, there are a seniors who are resisting the conventional wisdom of having their home paid for and opting for a mortgage with payments on their home. In some cases, seniors will downsize into a smaller home and have a large amount of equity to pay cash for the new home.   In other situations, they may have their home paid for and decide to do a cash-out refinance which will require making payments. The logic behind either of these examples could be motivated by the fact that since mortgage rates are so low currently, the owners can reinvest the money at a higher yield and make money on their equity.   This will give them more money for their retirement income. A common question that is asked by owners considering such a strategy is whether they'll be able to qualify for the new mortgage since they may no longer ...

A lower rate will not only result in a lower payment, it will amortize the loan quicker.   A $250,000 mortgage at 4.5% for 30 years will have a $1,266.71 principal and interest payment.   At 4%, the same loan will have $1,193.54 payment saving $73.18 a month and the unpaid balance would be $1,776 lower at the end of five years. Mortgage lenders tend to price their mortgages based on the credit score of the borrower.   The higher the credit score, the lower the mortgage rate.   There is an inverse relationship that the lower the credit score, the higher risk and therefore, a higher rate is needed to balance the risk. In order to get a valid rate that will be available to you with your credit score, you need to be pre-approved. The process of making a loan application before you find a home, allows the lender to verify your credit, income, and ability to repay the loan.   Lenders usually only charge the cost of the credit report for this type of service. ...