home purchase - house buying - home mortgage

 

What You Need To Know About Buying A Home And Your Next Home Purchase

Attn: Special Rates Available Until For Residents Of Virginia & Neighboring States!
 

At Peak Home Loans, we will tailor a home purchase loan just for you. Whether you are interested in the lowest rate home loan, lowest up-front loan cost or lowest APR we have a home purchase loan package to fit your needs.  We even offer zero down loans for home buyers - up to 95% of your home's value.  Please note that Peak Home Loans are experts at getting our clients the hassle-free, low cost, easy approval on the home purchase loan they desire.  Another thing to remember, most people have better credit than they think, usually Fair Credit or better, keep this in mind while filling out our online form.

We Offer All Types of Home Purchase Loans

You will not know the price range of the home you want to purchase until after you get an idea of how much you can borrow fro the bank and how much your closing costs will be.   Maybe you already have your dream home picked out.  Maybe you want to live in a certain neighborhood.  Maybe you just need more room for your family.

However, even knowing exactly the house you are looking for, the home purchase process can be daunting, says HUD.gov.  And it will take some time for some people; others just know the house they want.

A Home Purchase Just For You

You have decided to take the plunge and buy a home.   Good for you.  Whether you join in or believe the debate on a housing bubble, the basic rules for deciding on a home purchase, according to Realtor.com, and the way to purchase it remain the same.  Peak Home Loans can help you find the home purchase loan package that fits your needs, and your budget.


Home Purchase - House Hunting

You have to know what you want, what you can afford, and what you are looking for.  Sounds easy, doesn’t it?  But that is not always the case.  Here is what you need to think about:

  • What are your needs?  Identify those items that are bare minimums in the home you choose - number of bedrooms for instance.
  • What are your wants? This is the list you can turn to if the price is too high - or maybe you can afford a little more home and get some of these too.  If you want a pool, make a note, but be ready to give it up if you cannot find a home with all your needs at the price you need to meet this want.
  • Look at a few neighborhoods, not the whole city.  Determine what you are looking for in neighbors, and in neighborhoods, such as school quality.  This will help narrow down where you will search, and save you time.
  • Get an agent.  Or get a realtor.  But get an expert to help you look, go through the offer process, and work with you through closing.  You will not regret the help they can give you through their experience.
  • Compare the homes you like to narrow down to one.  Do not just pick the first house that meets your needs and a few of your wants in your price range.  If there is one, there is bound to be more.  This could be a lifetime purchase - make it a good one.
  • Hit and miss.  In the homes you compare, make a list of what you would miss and what you would get with each one.  Do an objective comparison.  Nothing is worse than buying a home - and wishing you would have bought the other one.

home purchase

Tips For The House Hunt

These Are Some Simple, Yet Effective, Things You Can Do And Think About That Will Aid In Decision Making While You Search For A Home...

  • Take pictures, inside and out.
  • Bring someone with you, a friend or family member.  You and your spouse should house hunt together.
  • Make sure you can afford the price.
  • Ask about the costs that go with the home, like utilities or maintenance.
  • Think about how long it would take you to get to work and if it would increase those costs.
  • Compare the needs and the wants.  How many of each does the house meet?
  • If the home needs repairs or a renovation - are those costs something you can absorb in your budget?
  • Do not go with your gut feeling.  Eventually you might, but don't do so the first minute the first time you are in a home.   Gain some objectivity and evaluate.

Avoid The Top Five Mistakes

Home Buyers Make Mistakes All The Time - Mort Of Them Are Avoidable...

  • Do not house hunt before you have a pre-approval.  You need to know how much house you can afford to purchase, and if you have a pre-approval letter, you are in a better bargaining position when you make an offer.
  • Choose a home loan lender for the right reason.  Home buyers get sucked in my realtor recommendations or the lowest rate. In the long run, you may not be getting the best total package.  Consider every option of lenders you like before choosing one.
  • Be careful using the seller's agent.  They do work for the seller and are going to try to get the best deal for them, not you.   One person cannot represent both sides properly.  Get your own agent to talk to their agent.
  • Get it in writing.  Too many agree to verbal deals that are not reflected in the closing paperwork and then are stuck with no recourse.  Do not let that happen to you - all agreements and terms should be in writing.  Read and review before you sign.
  • Get advice of the professional kind.  Parents mean well, but may not be the most informed.  Check with your insurance agent, your accountant, your lawyer.  It never hurts to get a contractor to check out the property and let you know if they see any problems.  This is your home so you call the shots.   Make an informed decision based on others experiences and education.

What Is A Mortgage?

  • A mortgage represents a loan or lien on a property / house that has to be paid over a specified period of time. The loan is securitized via real estate property through a note, called a mortgage note.  Think of it as your personal guarantee that you will repay the money you have borrowed to buy your home or you give back the money.  A home buyer can obtain a loan from a bank either to purchase or secure against their property.   Please note that Peak Home Loans are experts at getting our clients the hassle-free, low cost, easy approval on the home mortgage loan they desire.  Another thing to remember, most people have better credit than they think, usually Fair Credit or better, keep this in mind while filling out our online form.
  • A home mortgage, according to WellsFargo.com, is loan that helps you purchase a home with choices in interest rate, length of time for repayment and other terms.   Mortgages come in many different shapes and sizes, each with its own advantages and disadvantages.
  • Make sure you select the mortgage that is right for you, your future plans, and your financial picture.  Peak Home Loans can help to mortgage or refinance your home with excellent credit, good credit, average credit, below average credit, or just poor credit.
  • There are many choices in the types of home mortgages to pursue, says USbank.com; and you could qualify for many different types.  It is important to do your research and know what you are looking for, what you can afford, and how to maximize your purchasing opportunities through that knowledge.
  • Getting a mortgage is considered a good use of debt because you get something of value out of it at the end.  It can appreciate over time, unlike something like a car, which depreciates quickly.  Interest on mortgages is usually tax deductible, so you can immediate benefit from your purchase.

Getting Ready For A Home Mortgage

There Are Certain Things You Need To Do As You Prepare To Purchase A Home:

  • Determine what you can afford.  Lenders will use the general formula of your annual gross income, multiplied by two or three.   Your projected payment can be no more than thirty six percent of your monthly income, especially if you have other debit, like credit cards.   The bank will want to be sure you can afford what you choose to purchase.   If you plan for within those guidelines, you should not be disappointed.
  • Save a down payment.  Almost all mortgage loans require a down payment of some type (VA loans excluded), but a down payment can lower your interest rate, lower your monthly payments and provide a solid foundation for your relationship with your lender.  You will need earnest money when you submit an offer anyway. Aim for twenty percent of the purchase price.
  • Be wise and on a budget.  Other costs associated with a home purchase can run as much as five percent of the loan amount so be prepared.

home mortgage

Financing Options

  • Fixed rate loans give you a guaranteed interest rate over the length of your loan.  This is nice for budgeting, but you may end up paying more if the interest rate goes down.
  • With an adjustable rate loan, you will pay whatever the interest rate is at your time of payment.  This makes budgeting more difficult but you will not pay more interest than the going rate at any time during your loan.  But you may also be subject to dealing with quick rises of the rate, so consider this option carefully.
  • Conventional loans are loans that don't have additional guarantees.   They usually carry lower fees and can get a lower interest rate.
  • Non-conventional loans do as they are obtained with the help of the FHA, VA or HUD.  Those agencies offer insurance, guarantees or private insurance to help reassure lenders that they will get loan repayment.  The price of a non-conventional loan lies in higher rates and greater fees.

Tips On Choosing The Right Mortgage

It can be difficult to sort out all of the possibilities. Prime considerations should be:

  • Calculate the good and bad of fixed-rate mortgages.
  • Thoroughly understand all the portions of adjustable rate mortgages.
  • Research balloon mortgages and reset mortgages.

Peak Home Loans can help you sort through the maze of home mortgage options, we can customize your home loan just for you and your family..  We can assist in finding the best rates and the best terms for anyone with fair, good or excellent credit, and can offer nothing down loans for home buyers.   Contact us today - Peak Home Loans is here to help.