10 TIPS FOR FINDING THE BEST DEAL ON YOUR MORTGAGE

Be sure and call Cathy and Frank....We will help you with all your home-buying needs....

You scour the market for the perfect home, but you should be just as diligent when shopping for the right loan.

Your situation will dictate whether going directly to a bank, a mortgage lender or a broker is best.

Most people will need a mortgage to buy a home. That means that not only do you need to shop for a home, you need to shop for a home loan. But a survey of 2013 borrowers by the U.S. Consumer Financial Protection Bureau found that almost half of borrowers didn’t shop around before settling on a mortgage.

 They should. In fact, you may find more loans to choose from than you do houses.
  Definitely shop around. Don’t just go with the first option that you get. Being able to save even a little bit of money in your monthly payment definitely adds up.

You should start looking for a mortgage professional before searching for a house. You want to make sure your credit is in order because mistakes can take months to correct. You also want to know how much house you can afford. You can run calculations online, but a good mortgage professional will better help you determine which loan is the best fit for you.

Finding the best deal on a mortgage can be a challenge because fees and rates change daily, sometimes more than once a day.

Whether you’ll get the best deal from going directly to a bank, a mortgage lender or a mortgage broker often depends on your situation, the mortgage pro handling your case and what’s being offered at the time. That means talking to actual people on the phone or in person, not just filling out an online form.

You can buy a home with as little as 3 percent down – and nothing down if you’re a veteran. But if you put less than 20 percent down, you’ll need private mortgage insurance (or the Federal Housing Administration equivalent) in most cases, which can add roughly $100 to a monthly payment on a $100,000 home.

To find a mortgage professional, start by asking friends, colleagues, relatives and your real estate agent. As your agents, Frank Gleason and Cathy Louise, we always recommend getting a Good Faith estimate from several lenders. You can call Aaron Box at Hutson Mortgage. He is easily accessible.

You might also ask any finance professionals you work with, such as accountants or financial advisors. If you’re a member of a credit union, ask there. Some credit unions and local banks do their own mortgage lending and others contract with brokers. Call the banks where you have accounts.
In general, banks have the fewest options available because they offer only their own products, but they may be more flexible if they’re lending their own money – and they may make a deal if you have substantial assets.

Mortgage brokers offer the largest number of options, since they can shop your loan among many lenders. If your loan can be done, a broker, like Aaron Box, can find a place to do it. My opinion is to go to a really honest broker. Without doubt, they are going to have access to better pricing than anyone else.

While the rates and fees offered by lenders are usually comparable, lenders that see a slowdown in business may offer better pricing, and a good broker will grab those deals.


Here are a few tips for getting the best mortgage deal:
Compare apples to apples. When you get quotes from companies, don’t look at just the interest rate. Look at the rate and all the fees, including points, origination fees and any other fees charged by the lender. A “no-fee” loan just means the fees are included in the rates.
Ask to see the Good Faith Estimate worksheet, not just the GFE. Many people consider the current Good Faith Estimate, required by law, to be confusing, and it is being replaced August 1 with what consumer advocates hope will be a more useful document. Until then, ask for the complete worksheet, and make sure it itemizes all the fees.
Interview the actual person who will handle your loan. That could be a mortgage broker, a bank employee or a loan officer. Ask about experience and qualifications. Is the person licensed (required for brokers but not bank employees)? Does he or she belong to the National Association of Mortgage Professionals or your state’s mortgage professional association? Ask for references and look at reviews online. The company does not matter as much as the originator. Even good companies hire really bad people.

HOME INSPECTIONS

The Importance of Home Inspections


When it comes to selling your home, the last thing you want to do is hold up a sale because of a simple problem that could have been identified by investing in a home inspection. While it may not be the No. 1 item on your to-do list as you prepare to list your home, a home inspection is an integral piece of the puzzle. Bringing to light any problems or issues that need to be addressed, a home inspection can save you a lot of time, money and headaches.

By the same token, if you are buying a home, you definitely want to have a licensed Home Inspector look at your new home-to-be!

Frank and Cathy will take you through each step of the home-buying or home-selling process. Call us at 205-335-5554 or 205-572-2557 for all your real estate needs. They will make the process easier for you and make your Real Estate transactions a pleasant experience. Cathy and Frank take each client's needs very seriously. Our goal is to provide a higher level of customer service in this business of Real Estate. We would ask you to give us the chance to show you what customer service is all about.

Here are some of the most common problems a home inspector can unearth.

Bedroom Windows.

All rooms listed as bedrooms must have an operating window with 30 square feet of clearance for fire escape. Bedrooms must also have heat. If a home is listed with three bedrooms, and one does not meet both these requirements, it cannot legally be called a bedroom.

Furnaces and Compressors.

Rust in the heat exchange is a common problem that shows up during home inspections. Another common problem involves missing insulation where required by code at the time the house was built, or an improvement or replacement was installed.

Electrical Issues.

Common electrical code violations include electrical junctions not enclosed in a junction box, a lack of GFCI outlets in bathrooms and kitchens, or reverse-polarity on outlets. These are inexpensive things to repair, but by not doing so, it can hold up a sale.

Lifesaving Equipment.

Smoke detectors and carbon monoxide detectors are required by law in most states, and not having them will be considered a code violation.

Plumbing.

A number of plumbing issues are very common, with violations ranging from dripping faucets to loose toilets and improper drainage.

Structural Problems.

While these can be more expensive to fix, if they aren’t taken care of properly, they can prolong a sale. Violations in this area include rotten wood trim around windows and doors, rotten or cracked siding and missing flashing on roofs or above windows and doors.

Extra Rooms.

If you had your basement fixed up at some point while living in the home, or even added a sunroom, be sure you have the proper permits in place. This will need to be taken care of before any sale can go through.
Don’t put your home sale in jeopardy because of code violations that can be easily fixed. Hire an inspector, make the necessary changes and enjoy the comfort it brings when the closing comes to fruition.

CATYSOLDIT@GMAIL.COM                    CATHYSOLDIT.COM

FALL FESTIVAL FOR HOME BUYING!!

 Buyers, f you want to get a good deal, your odds are best to buy a house during the fall and winter months. Now that Halloween is over, don't be afraid to buy your new home!

Year after year, closings in January tend to show a dip in prices, suggesting that buyers who made offers in November and December got the best deals. In the summer of 2014, for example, median home prices climbed past $220,000, only to drop below $200,000 in January of 2015. Median home prices nearly hit $240,000 the following summer, only to move down again in the late fall.


Knowing this, many sellers don’t list their homes later in the year, and many pull their listings in the late fall in hopes of starting fresh in the spring. Sellers who stick with it, though, are the most motivated. 

A RealtyTrac analysis of home sales over the past 15 years pegged October as the best month to buy at a discount, 2.6% less than the fair market value at that time. Buyers who shop later in the year may be able to negotiate a better price.

Call Team Red and let us help you find your next home. If you were already thinking that you wanted to buy a new home soon, this might just be the perfect time to find your dream house and pay a little less and get your new mortgage while the interest rates are still historically low.

Home Inspections

The Importance of Home Inspections


When it comes to selling your home, the last thing you want to do is hold up a sale because of a simple problem that could have been identified by investing in a home inspection. While it may not be the No. 1 item on your to-do list as you prepare to list your home, a home inspection is an integral piece of the puzzle. Bringing to light any problems or issues that need to be addressed, a home inspection can save you a lot of time, money and headaches.

By the same token, if you are buying a home, you definitely want to have a licensed Home Inspector look at your new home-to-be!

Frank and Cathy will take you through each step of the home-buying or home-selling process. Call us at 205-335-5554 or 205-572-2557 for all your real estate needs. They will make the process easier for you and make your Real Estate transactions a pleasant experience. Cathy and Frank take each client's needs very seriously. Our goal is to provide a higher level of customer service in this business of Real Estate. We would ask you to give us the chance to show you what customer service is all about.

Here are some of the most common problems a home inspector can unearth.

Bedroom Windows.

All rooms listed as bedrooms must have an operating window with 30 square feet of clearance for fire escape. Bedrooms must also have heat. If a home is listed with three bedrooms, and one does not meet both these requirements, it cannot legally be called a bedroom.

Furnaces and Compressors.

Rust in the heat exchange is a common problem that shows up during home inspections. Another common problem involves missing insulation where required by code at the time the house was built, or an improvement or replacement was installed.

Electrical Issues.

Common electrical code violations include electrical junctions not enclosed in a junction box, a lack of GFCI outlets in bathrooms and kitchens, or reverse-polarity on outlets. These are inexpensive things to repair, but by not doing so, it can hold up a sale.

Lifesaving Equipment.

Smoke detectors and carbon monoxide detectors are required by law in most states, and not having them will be considered a code violation.

Plumbing.

A number of plumbing issues are very common, with violations ranging from dripping faucets to loose toilets and improper drainage.

Structural Problems.

While these can be more expensive to fix, if they aren’t taken care of properly, they can prolong a sale. Violations in this area include rotten wood trim around windows and doors, rotten or cracked siding and missing flashing on roofs or above windows and doors.

Extra Rooms.

If you had your basement fixed up at some point while living in the home, or even added a sunroom, be sure you have the proper permits in place. This will need to be taken care of before any sale can go through.
Don’t put your home sale in jeopardy because of code violations that can be easily fixed. Hire an inspector, make the necessary changes and enjoy the comfort it brings when the closing comes to fruition.

CATYSOLDIT@GMAIL.COM                    CATHYSOLDIT.COM

10 TIPS FOR FINDING THE BEST DEAL ON YOUR MORTGAGE

Be sure and call Cathy and Frank....We will help you with all your home-buying needs....

You scour the market for the perfect home, but you should be just as diligent when shopping for the right loan.

Your situation will dictate whether going directly to a bank, a mortgage lender or a broker is best.

Most people will need a mortgage to buy a home. That means that not only do you need to shop for a home, you need to shop for a home loan. But a survey of 2013 borrowers by the U.S. Consumer Financial Protection Bureau found that almost half of borrowers didn’t shop around before settling on a mortgage.

 They should. In fact, you may find more loans to choose from than you do houses.
  Definitely shop around. Don’t just go with the first option that you get. Being able to save even a little bit of money in your monthly payment definitely adds up.

You should start looking for a mortgage professional before searching for a house. You want to make sure your credit is in order because mistakes can take months to correct. You also want to know how much house you can afford. You can run calculations online, but a good mortgage professional will better help you determine which loan is the best fit for you.

Finding the best deal on a mortgage can be a challenge because fees and rates change daily, sometimes more than once a day.

Whether you’ll get the best deal from going directly to a bank, a mortgage lender or a mortgage broker often depends on your situation, the mortgage pro handling your case and what’s being offered at the time. That means talking to actual people on the phone or in person, not just filling out an online form.

You can buy a home with as little as 3 percent down – and nothing down if you’re a veteran. But if you put less than 20 percent down, you’ll need private mortgage insurance (or the Federal Housing Administration equivalent) in most cases, which can add roughly $100 to a monthly payment on a $100,000 home.

To find a mortgage professional, start by asking friends, colleagues, relatives and your real estate agent. As your agents, Frank Gleason and Cathy Louise, we always recommend getting a Good Faith estimate from several lenders. You can call Aaron Box at Hutson Mortgage. He is easily accessible.

You might also ask any finance professionals you work with, such as accountants or financial advisors. If you’re a member of a credit union, ask there. Some credit unions and local banks do their own mortgage lending and others contract with brokers. Call the banks where you have accounts.
In general, banks have the fewest options available because they offer only their own products, but they may be more flexible if they’re lending their own money – and they may make a deal if you have substantial assets.

Mortgage brokers offer the largest number of options, since they can shop your loan among many lenders. If your loan can be done, a broker, like Aaron Box, can find a place to do it. My opinion is to go to a really honest broker. Without doubt, they are going to have access to better pricing than anyone else.

While the rates and fees offered by lenders are usually comparable, lenders that see a slowdown in business may offer better pricing, and a good broker will grab those deals.


Here are a few tips for getting the best mortgage deal:
Compare apples to apples. When you get quotes from companies, don’t look at just the interest rate. Look at the rate and all the fees, including points, origination fees and any other fees charged by the lender. A “no-fee” loan just means the fees are included in the rates.
Ask to see the Good Faith Estimate worksheet, not just the GFE. Many people consider the current Good Faith Estimate, required by law, to be confusing, and it is being replaced August 1 with what consumer advocates hope will be a more useful document. Until then, ask for the complete worksheet, and make sure it itemizes all the fees.
Interview the actual person who will handle your loan. That could be a mortgage broker, a bank employee or a loan officer. Ask about experience and qualifications. Is the person licensed (required for brokers but not bank employees)? Does he or she belong to the National Association of Mortgage Professionals or your state’s mortgage professional association? Ask for references and look at reviews online. The company does not matter as much as the originator. Even good companies hire really bad people.

HOMEOWNERSHIP INCREASES AMONG UNDER 35 AGE GROUP

The biggest homeownership gain in the U.S. between July and September happened in the under 35 year old demographic--the first time ownership has increased for that group since 2004.

We continue to see young people and families buying homes in many of our growing neighborhoods around Birmingham and over the mountain. Each month we have seen an increase in our inventory and sales here in Birmingham, which is really exciting to see. Young buyers are being attracted to the downtown lifestyle and settling in neighborhoods like Avondale and Crestwood as those communities continue to see growth in commercial developments.

Homeownership among under 35's rose to 35.8 percent in the third quarter from 34.8 percent. While it's a modest gain, the increase still represents the first positive movement since the second quarter of 2004.

Sponsored by

Overall, the homeownership rate increased to 63.7 percent in the third quarter, up from 63.4 percent in the second quarter.

How Much House Can You REALLY Afford?

Ultimately it's up to you to determine what mortgage payment you can comfortably afford.

Just because a lender approves you for a mortgage doesn’t mean you can comfortably afford it.

  . . . .

 

 

 

 

It doesn’t matter if you’re searching homes for sale in Gardendale, AL or FRANKSOLDIT.COM. You can type “how much house can I afford” into a Google search and you’ll come up with a number of online tools and mortgage calculators to help you figure the answer to your query. You might also see rules of thumb that state things like “your mortgage payment shouldn’t take up more than 35% of your monthly income.”

Also, if you are looking for a home in North Jefferson County, a local lender, like Aaron Box at Hutson Mortgage in Gardendale, would be glad to go over these numbers with you and help you to know, for sure, how much house you can afford to buy. He does this FREE, over the phone, for all our clients. Always be sure that you ask for a "Good Faith Estimate" from each lender so that you can compare dollar-for-dollar what the lender is REALLY charging you for a home mortgage.

 It’s important to make sure you understand how the pieces all fit together, and that you take your personal financial situation into account. Here’s why.

Financial rules of thumb may not apply to you
Every person’s finances are just as individual as they are. So while it may be a good reference point to know that your mortgage payment shouldn’t be more than 35% of your monthly income, that figure could vary a lot depending on things such as debt and other monthly payment obligations, not to mention how much you’ve saved for a down payment.
Online mortgage calculators such as this one from Trulia are great at giving you a clearer starting point for mortgage shopping. You’ll get a much better sense of what your price range might be instead of a blanket rule of thumb. But they’re only as accurate as the information you provide, so if you forget to add regular budget line items such as food, day care, or gas costs, you won’t get          a complete picture.

Your lender may approve you for more than you can realistically afford
Lenders are now legally required to ensure borrowers can “reasonably afford” to repay a loan before they approve a new mortgage. But there’s a difference between being able to reasonably afford something and being able to realistically afford something.
When looking at what’s reasonable, lenders can account for your income and any current debts that you need to repay each month. If you make $5,000 per month after taxes and need to pay $500 toward your car loan each month, a mortgage payment of $1,500 may seem perfectly reasonable.
In this (extremely simplified) example, you’d have about $3,000 per month left over to handle all your other expenses. And perhaps you can afford your living expenses on this budget. But what about the other goals you want to achieve? What about saving for retirement or investing for your future?
If you commit to a large monthly mortgage payment, you may find yourself squeezed to make your remaining money cover your living expenses, plus monthly bills and loan repayments. While a lender can give you a mortgage you can reasonably afford, it comes with the consequence of not being able to handle other financial priorities. In short: Even though you may qualify for a large mortgage, that doesn’t mean you should max out your house budget.

You’re the only one who can determine what’s comfortable
Only you can examine your life and your values to determine what you might be willing to give up to make room in your budget for a mortgage — and what you’re not.
You might be perfectly happy to take on a larger monthly mortgage payment in exchange for reducing meals out, cutting back on luxury vacations, or sticking with your old phone instead of going for the upgrades just because you can. Or you may decide that renting makes more sense for you because you can mitigate costs, take on less financial responsibility, and enjoy more flexibility.
Either way, you need to determine what you feel comfortable with. You need to decide what works within both your budget and your long-term plans to reach goals that matter to you.

Consider these factors to decide how much house you can really afford
Once you set your financial priorities, here’s where you’ll need to do the math:

• What’s your current income? What are your basic living expenses? What are your fixed costs?
• How much do you want to put away each month into savings or investments?
• How much will it cost to maintain your new home?
• What kind of down payment will you have? (The more you put down, the smaller your monthly mortgage payment will be.)

Now you can factor a mortgage into all of the above, and see how much you can really afford. When doing so, don’t forget to count both the mortgage principal and interest — along with property taxes, homeowners’ insurance, and other extras such as HOA fees.




By Cathy Louise and Kali Hawlk