Published again! Here are 5 Common Rent To Own Mistakes You Don't Want to Make courtesy of Ivestopedia

Published again! Here are 5 Common Rent To Own Mistakes You Don't Want to Make.
http://www.investopedia.com/articles/personal-finance/083115/avoid-5-most-common-renttoown-mistakes.asp

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How Can Knowing Your Mortgage Options Help You?

Rich Rosa, co-founder and co-owner of Buyers Brokers Only, LLC asks “Is a Lack of Understanding About Mortgages Holding Back Home Buyers?”

Possibly….this is one of the reasons I wrote my book. The mortgage process is confusing to say the least and whether you’ve never applied for a mortgage before or have multiple mortgages, the more you know about the process, the better. I believe that an educated consumer is our best client. An educated consumer asks better quality questions and is more comfortable discussing and exploring their loan options.

Most people don’t know how much home purchasing power they have, how much to expect for closing costs (varies by state), or how much paperwork is involved when applying for a home loan. Most people have no idea the difference between loan programs from bank to bank, lender to lender, or broker to broker— or what the differences are between the main types of residential mortgage providers. Most people have no criteria for choosing a lender, the type of loan to seek, or how much down payment is best for them. For example, are their differences between the types of property that may affect down payment?

The mortgage industry is packed with nuance, which can lead to confusion for the consumer. While trying to buy a home, you may have people from many different professions telling you what you should do and how to make decisions—who should you listen to in which situations? Your most personal financial information is critical to the mortgage process and yet do you know who you are sending it to? What about mortgage insurance? Why is it required and when?

The two questions I most often hear are: “What’s the payment?” and, “What’s the interest rate?” While these questions are important, there are several other questions that are just as critical: what is the right loan type for me; is there an up-front funding fee for this loan; what are the differences in available mortgage insurance; how will property type restrictions affect my loan; what are the pros and cons of this loan; what is the down payment requirement with this loan choice over another; what are the closing costs associated with each loan type; and, who is allowed to pay the closing costs? Successfully navigating the maze of questions, regulations, and requirements ultimately leads to a mortgage closing.

Email me at info@bestmortgagebook.com for my Free Checklist “Questions to Ask When Selecting a Lender”.

For more information on loan documents, read my #1 Best Selling Book on Amazon

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Common Questions Asked By First Time Home Buyers

Wow!  What a ride!  I cannot thank you enough for your support. My book launched on Friday and became the #1 New Release in Mortgage Books on Amazon. Amazon likes it so much they just reduced the paperback price to $8.99!  Grab your copy here: www.elysiastobbehomeloans.com
I consider it a privilege to share this information with you.

I wanted to share with you some of the questions I got yesterday at the FL Times Union Home Buyers Expo. Over 1500 people attended, it was a huge success!  I was honored to be asked to speak to their audience.

I did two presentations.  Each presentation gave a quick overview of two topics.  The first presentation was 3 Monumental Money Mistakes To Avoid & Why Shopping for the Best Interest Rate can Cost you Money. Common questions pertained to the differences in FHA and Conventional Loans and the different mortgage insurance rates for each as well as the funding fees for government loans.

The second presentation covered 7 Massive Mortgage Mistakes to Avoid & VA, FHA & Conventional Financing Highlights. A common question was, "What if I have a 640 credit score and I am a first time home buyer, can I put down only 3%?"  Yes, if you are a first time home buyer and qualify for conventional loan financing, you can put down as little as 3% with a 640 credit score. However, the monthly mortgage insurance will be more expensive due to the 640 credit score. Here are some highlights from the 2nd half of this presentation.  I hope you find this information useful.

Here are some VA Loan Highlights:

•Minimum Down Payment 3.0% for first time home buyers, otherwise 5%

•No Funding Fee

•Monthly MI varies based on down payment, credit score, type of residence, varies from 0.22%-0.74%

•MI is automatically removed at 22% equity

•Minimum Credit Score 620 with 20% down payment or 640 with 5% down payment

***Veterans, THANK YOU for your Service!!

Here are some FHA Loan Highlights:

•Minimum Down Payment 3.5%

•FHA Funding Fee of 1.75%

•Monthly MI of 0.85% with 3.5% down or .80% with 5% down payment

•MI is for the life of the loan

•Minimum Credit Score 580

Here are some Conventional Loan Highlights:

•Minimum Down Payment 3.0% for first time home buyers, otherwise 5%

•No Funding Fee

•Monthly MI varies based on down payment, credit score, type of residence, varies from 0.22%-0.74%

•MI is automatically removed at 22% equity

•Minimum Credit Score 620 with 20% down payment or 640 with 5% down payment

***Please keep in mind this is only an example for illustration purposes.  These interest rates may not be available and/or you may not qualify for this loan type.

All of this information can be found in much more detail in my #1 Best Selling Book on Amazon

To grab my new book, How To Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye™, click here: elysiastobbehomeloans.com

For more mortgage tips check out our website www.bestmortgagebook.info

For video mortgage tips and tools subscribe to our YouTube

Channel: https://www.youtube.com/watch?v=YsL6BuJ8b-M

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3 Monumental Mortgage Money Mistakes to Avoid

As the Spring home buying season heats up, I want to share with you 3 mistakes that can cost you BIG MONEY. I know it's natural to go house hunting, tour your dream home and then meet your realtor to write an offer. But before you embark on that american dream to home ownership with enthusiasm and your check book, be sure to plan correctly.  Here are my top 3 Monumental Mortgage Money Mistakes to Avoid that can save you thousands of dollars:

☑  Not getting pre-approved

☑  Not understanding your loan options

☑  Not planning/asking the right questions

Not Getting Pre-approved

This can easily cost you $1000 right off the bat. Ugh! Not fun for your wallet. Lets say that you go home-shopping and make an offer on a new home and you are pre-qualified, but not pre-approved. If the lender calculates your income differently than you did during the pre-qualification process, you may not be on the same page when it comes to actually closing the loan. That puts your earnest money deposit (aka binder) in jeopardy and can cost you home inspection and appraisal fees. Appraisal, home, and pest inspections can easily total $750-$1,000.

Not Understanding Your Loan Options

What down payment options do you have? Will a small difference in down payment equate to saving, or paying, tens of thousands in PMI? What about property type and foreclosure properties? There are certain loans that are for those properties and certain loans that are not for foreclosures and condos. What if you made an offer on a HomePath property, but your lender didn’t offer that type of loan? What will that cost you? Higher down payment, unnecessary appraisal costs, and, possibly higher mortgage insurance; again this can be $1,000s that you don’t have to spend! See Chapter 13 for a full discussion on Loan Programs, and Chapter 14 for a full discussion on Loan Terms.

Not Planning/Asking the Right Questions

How much seller credit can you receive for which loan types? What? Yes, certain loans allow for maximum seller help for your purchase. For example, FHA allows for 6% seller help, while a conventional loan allows for 3% for a primary residence and only 2% for an investment property. These are important discussions to have with your lender before your real estate agent writes up your contract offer to the seller. Let’s say you could have gotten 6%, but didn't know and you left $1,000’s on the table and then used your money instead of the seller’s? Bummer!

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How to Get Approved for the Best Mortgage? Get Pre-Approved for Your Mortgage!

What’s the difference between Pre-Qualification and Pre-Approval for a Mortgage?

The differences between pre-qualification and pre-approval may seem minor, but they can be huge when it comes to actually closing on your dream home. Not all lenders offer the more thorough pre-approval. If your lender only offers pre-qualification, or you choose to start with pre-qualification, make sure that you are as thorough as possible with the information that you supply. Pre-qualification is the process of determining what you may qualify to purchase with a home loan. Pre-approval is the thorough process of providing your name, address history, work history and income documents for the last two years, along with your asset statements. It may not seem like a big difference, just more documents and a few more questions to answer. However, it can save you lots of disappointment and heartache during the loan process. In my book, How to Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye (Available April 2015), I strongly recommend that you at minimum pre-qualify. Get pre-approved if it’s an option!

Mortgage Pre-Qualifying or Pre-Approval Make Home Shopping Much Easier

You should get pre-qualified to find out what price range your dream house needs to be within according to your current financial budget. Pre-qualifying allows you to find out exactly how much money a lender is willing to give you based on your income, assets, and other data. Having a pre-qualification will also give you confidence to make an offer when you find the right home. Pre-qualifying or pre-approval can empower you and take the stress out of your home search— you’ll know which homes to consider and which homes to avoid.

3 Monumental Mortgage Money Mistakes to Avoid

☐ Not getting pre-approved

☐ Not understanding your loan options

☐ Not planning/asking the right questions

I explain these mistakes in full detail in How to Get Approved for the Best Mortgage Without Sticking a Fork in Your Eye (Available April 2015). For a FREE EXCERPT from the book, go to BestMortgageBook.info.
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