8 Tools That Make It Easier To Buy a Home

8 Tools That Make It Easier To Buy a Home

8 Tools That Make It Easier To Buy a Home

1. You can now lock an interest rate while you shop for your new home. Even without a formal offer on a property, I can help you lock an interest rate for 60 or 90 days. If interest rates improve as you shop for your new home, you can float down to the better rate. This ability can be a big help in a market like today’s, where interest rates are not only rising, but expected to continue rising.

2. Lenders are competing for all borrowers, including borrowers with lower down payments (less than 20% of the purchase price).  Some lenders have mortgage insurance rates considerably lower than others.  Consider the example of one particular young couple I recently assisted.  They had saved enough money for a small down payment on a home and were quoted a monthly mortgage insurance rate of $232.  With a little research, we were able to find and close the purchase of the home with 1) a loan at slightly lower interest rate, and 2) a monthly mortgage insurance payment of just $167.  Plus, they were able to qualify for larger a payment and increase their purchase price offers.  Not an earth shattering difference at first glance, but worth the additional effort and money saved on future payments.

 3. Lower rates are available on higher balance loans (up to $679,750).  Some lenders are now offering significantly lower interest rates for mortgages that were once considered to be jumbo mortgages, which typically require higher interest rates. This can save borrowers hundreds of dollars per month, allow them more room to qualify, and give them the ability to make higher purchase offers.

4. Appraisal waivers are becoming more readily available to borrowers with larger down payments and higher credit scores. This can amount to a savings of up to $500 or more.

5. Mortgage application and qualifying documentation can be gathered without the need for paper documents.  I recently closed a loan where the application was e-signed and the income, assets and tax returns were verified independently by the lender without the need for the borrower to produce any of the documents.  In addition, we closed in 15 days.

6. By the end of 2018 if not sooner, borrowers will be able to close virtually (if they so choose) with the help of an e-closing agent. This agent will verify the borrower’s ID, using a notary through a video chat, and without wet-signing a single document.  Federal and state regulators are in the process of reviewing and approving this method of closing.

7. For self-employed borrowers and investors, bank statements, asset statements, and/or property leases can be used in place of tax returns to qualify for a mortgage. This greatly simplifies the qualifying process and the need for extensive documentation.

8. For some, a reverse mortgage might be a useful strategy to purchase a home.  If a borrower is over 62 years of age and would rather not have the worry or trouble of a monthly mortgage payment and/or the need to spend down investments, a reverse mortgage can be a solution.  As long as the borrower has the ability to make a significant down payment, a reverse mortgage could be a good fit.

Chris Rosner

Renaissance Lending Group, LLC

License # 180251 & 181263



[email protected]

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