Posts tagged: mortgage

Hey there, home buyers! If you’re in the market for a new home,

you’ve probably realized that financing can be a bit

overwhelming. There are so many options out there, from

traditional mortgages to government-backed loans to alternative

financing. So, let’s take a closer look at some of the most

popular financing options and find the one that’s right for you!

1. Traditional Mortgages: Let’s start with the most common

financing option – the traditional mortgage. With a traditional

mortgage, you’ll put down a certain amount of money as a

down payment, and then make monthly payments over a

set period of time. These loans can have fixed or adjustable

interest rates, and the terms can range from 10 to 30 years.

2. FHA Loans: If you’re a first-time home buyer or have a

lower credit score, an FHA loan might be a good option for

you. These loans are backed by the Federal Housing

Administration and often have lower down payment

requirements and more flexible credit score requirements.

3. VA Loans: If you’re a veteran or active-duty service

member, you may qualify for a VA loan. These loans are

backed by the Department of Veterans Affairs and often

have lower interest rates and no down payment

requirements.

4. USDA Loans: If you’re looking to buy a home in a rural area,

a USDA loan might be a good fit. These loans are backed by

the U.S. Department of Agriculture and often have low

interest rates and no down payment requirements.

5. Alternative Financing: If none of the traditional options

work for you, there are a variety of alternative financing

options out there, including private lenders, crowdfunding,

and even seller financing. Just be sure to do your research

and understand the risks involved with these options.

Hey there, fellow money-makers and future landlords! Welcome
to another fun, chatty, and enlightening blog post. Today, we’re
diving deep into the rollercoaster world of investing in rental
properties. If you’ve ever wondered whether it’s a worthwhile
endeavor, buckle up! We’re about to spill the tea on the pros and
cons you need to consider before taking the plunge.

🏡 Pro #1: Passive Income, Baby!
Who wouldn’t want to kick back and watch the dough roll in
while someone else pays off your mortgage? Rental properties
are a great source of passive income, and as long as you have
tenants, you’ll be enjoying that sweet, sweet cash flow.

🌪 Con #1: Oh, the Maintenance!
Just like owning any property, rental homes come with a side of
wear and tear. It’s important to budget for maintenance and
repairs, as well as the time and effort you’ll need to invest in
keeping your rental property in tip-top shape. Because let’s face
it, not all tenants will treat your property like their own.

📈 Pro #2: Appreciation Appreciation!
Here’s a fun fact: real estate tends to appreciate over time. So,
while you’re raking in the rent, the value of your property may
also be going up, up, up! In the long run, you could be sitting on
a goldmine when you decide to sell.

🚪 Con #2: Knock, Knock. It’s Tenant Turnover.
Finding great tenants can feel like trying to find a needle in a
haystack. Tenant turnover can be a major headache and a drain
on your wallet. Prepping your property for new renters and
dealing with vacancies can add stress to your landlord life.

💰 Pro #3: Tax Benefits Galore!
Rental property owners, rejoice! You can potentially benefit from
tax deductions for things like mortgage interest, property taxes,
insurance, and depreciation. Cha-ching! Of course, always
consult a tax professional for advice tailored to your situation.

🔍 Con #3: Market Research Required
Investing in rental property isn’t as simple as buying a house and
renting it out. You’ll need to do your homework on the local
market, property values, and rental rates. This can be time consuming,
but it’s essential for success.

🏠 Pro #4: You’re the Boss!
Being a landlord means you’re in control. You make the decisions
about your property, from setting the rent to choosing the
tenants. It’s a great opportunity to flex your entrepreneurial
muscles and build something you’re proud of.

🕰 Con #4: Time Investment
While rental properties can be a fantastic source of passive
income, they do require a substantial time investment. From
finding and managing tenants to dealing with emergencies and
keeping up with legal requirements, being a landlord is not
always a walk in the park.

So, there you have it, folks! The pros and cons of investing in
rental property. As with any investment, it’s important to do your
research and weigh the potential risks and rewards before diving
in. If you have the time, resources, and patience to manage a
rental property, it can be a great way to generate passive income
and build long-term wealth. But if you’re not up for the challenge,
there are plenty of other investment options out there. Happy
investing!

Your mortgage isn’t a ‘sure thing’ until you sign the closing papers. Until that point, anything can
happen, which is why it’s so important to keep your financial and employment situation status
quo.

If you’re thinking about buying a home or are in the middle of the process, here are five things
that could make you lose your loan approval.

Changing Jobs
When lenders approve you for a mortgage, they do so based on your employment and income.
They assume your employment will remain the same, even though we all know that’s not
always the case.

While changing jobs after you close on your loan isn’t a big deal, changing jobs mid-loan process
could cause a delay in processing or even cause you to lose your loan approval.

Hurting your Credit Score
Lenders pull your credit when you apply for a mortgage and again before you close. If your score
changes drastically during that time (for the worse), you could lose your loan approval. Once
pre-approved, try keeping your credit the same by not opening new accounts, missing
payments, or racking up too much credit card debt.

Making Large Purchases
After you apply for (and are approved) for a loan, hold off on any large purchases until after you
close your loan. Making large purchases, especially on credit, can cause you to lose your loan
approval.

Here’s why.

If you bought on credit, you either opened a new credit account or increased the debt on an
existing account. This can hurt your credit score and increase your debt-to-income ratio, which
can hurt your chances of approval.

Making Large Deposits or Withdrawals in your Bank Account
Large deposits or withdrawals in your bank account are red flags to lenders. A large withdrawal
means you spent money and might have more debt or less money to put down on the home
than you were approved for.

Large deposits could signify that you borrowed money from someone or took out a loan. A new
loan (even if from friends or family) is a debt that affects your debt-to-income ratio. Therefore, if
you increase your DTI, you could lose your loan approval.

Not Providing Requested Documentation
Even if you’re pre-approved for a mortgage, underwriters always need more information. If they
ask for documentation you can’t or don’t provide, they won’t be able to clear your loan
conditions. This could cause them to decline your loan.

Final Thoughts
Mortgage approval isn’t official until you close on your loan. In the meantime, it’s crucial to keep
your information as stable as possible. If you can help it, make sure your credit score doesn’t
change, your bank account stays the same, and you don’t change jobs or income.

With everything status quo, you have a better chance of qualifying for and closing your loan. If
you have questions about what might affect your loan or are ready to look at homes, contact
me today.