The Advantages of Getting a Mortgage Preapproval

The homebuying process can be exciting, but also stressful. When there are a large number of buyers in the market for real estate, the odds of being able to purchase your desired home can be low. However, getting a mortgage preapproval prior to home shopping can dramatically increase the odds of success.

Make Mortgage Preapproval Your First Step

A mortgage preapproval should be a homebuyer's first step when purchasing a home. A borrower can choose to meet with a lender or get an initial preapproval via the Internet. The preapproval process is similar to the actual mortgage process and will, in fact, eliminate a lot of time after a home has been chosen.

When obtaining a mortgage preapproval, the borrower will complete a mortgage application and submit the necessary documentation to the lender. The lender will pull a credit report and examine the borrower's credit.

Based on all of this information, the lender will determine the amount of funds that the borrower qualifies for. The borrower will receive a Conditional Commitment, which states the amount of funds that the lender agrees to lend provided that the conditions are met. While a preapproval is an important first step, it is not the final mortgage approval.

Impress Homesellers With Your Mortgage Preapproval

One of the advantages of having a preapproval is that this letter can be shown to real estate agents and sellers when looking for a home. By doing so, both the agent and the seller know that the borrower can qualify for a certain amount of funds. It is proof of the borrower's financial standing and ability to proceed with the home purchase.

Another advantage is that some of the work that is involved in obtaining a mortgage is already done. The lender has already examined the borrower's financial situation, including credit, income and assets. During the preapproval process, the lender will also discuss the most appropriate type of mortgage program that fits the borrower's needs, whether it is a conventional loan or a government loan.

This is significant because not all sellers will accept a buyer who is using a government loan. Knowing the details of what type of loan is appropriate for the borrower, the agent can then show them homes that will fit their preapproval both for cost and type of funding.

How Mortgage Preapproval is Determined

The preapproval is determined by putting the information given to the lender through automated underwriting. In most cases, the preliminary loan file goes through a preprocessing before the preapproval is given to the borrower. Since there is an actual examination of the borrower's documentation, the borrower will also receive a list of additional information that may be needed. The borrower can then submit this information while shopping for a home.

Once a home is found and the sales contract is signed, processing the loan is faster since most of the work for the credit file has been done. The final process involves verifications, ordering and receiving the appraisal, ordering title documents, obtaining insurance, etc. The final underwriting is the last step before the loan file is sent for closing.

The preapproval process is an important part of a home purchase. Since there is a lot of information involved in obtaining a mortgage, it eliminates many last minute problems that can arise. Obtaining a mortgage preapproval helps the home purchase process go smoothly.

 

Questions about your home purchase?  Please contact us anytime, we're here to help!

 

Inside Realty

1877 Orchard Lake Road  Suite 204

Sylvan Lake  MI  48320

248-758-0022

 

 

Decoding Mortgage Terms

 

Ah, the home-buying process. It feels as if someone scooped you up and dropped you in a country where you don't speak the language. From your real estate agent to the lender, a lot of what you'll hear may sound like gibberish. Busy real estate professionals who use the acronyms and foreign-sounding terms on a daily basis forget that consumers typically have no idea what they're talking about.

Let's start with the basics: What is a mortgage?
Mortgage is a word that has been in the English language since the late 1300s and comes from the French "mort," which means "dead," and "gage," meaning "pledge." Therefore, a mortgage, in the true sense of the meaning of the word, means that the security pledged to the mortgagee for the debt will be taken from him if he fails to pay the debt, and will therefore be "dead to him upon condition." If, on the other hand, the mortgagee fulfills the obligation to pay the debt, the pledge is dead. Either way, something dies.
A dictionary definition is much simpler and tells us that a mortgage is a "temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt."

The Players

It may feel as if you need a program to keep track of all the folks who play a part in your mortgage drama, especially if this is your first experience with this type of loan. Let's take a look at just who these players are and what their roles are.
Mortgagee
More commonly known as "the lender," the mortgagee is the lending institution that provides the mortgage.
Mortgagor
The mortgagor is more commonly known as the borrower or debtor - the person who receives the mortgage loan.
Mortgage Broker
A mortgage broker is a person who acts as the middleman, brokering loans on behalf of borrowers. Like a travel agent, the mortgage broker is an intermediary who shops a number of lending institutions, pledging to obtain the best rates and terms for the borrower.
Loan Officer
If you don't use a mortgage broker, but deal directly with the lender, the loan officer is generally the first person you'll meet. She is the person who will help you obtain a loan preapproval and compile all the documents you will need to obtain a mortgage. This person is the lender's point of contact for you, your real estate agent, and the other folks involved in your home purchase.

Loan Processor
After you fill out all the paperwork, the loan officer sends it to the loan processor who then follows your mortgage from preapproval to closing. He checks all your information for accuracy and verifies your credit and income. He then inputs your information into their in-house system, and packages everything for the underwriter.
Underwriter
The underwriter is the one you would wine and dine if you knew who she was. She is the person who determines the lender's risk in lending to you. She'll analyze your income to determine if you can pay for the loan. She will look at your payment history to figure out if you're the type of person who meets his financial obligations. Finally, the underwriter will evaluate the home you want to purchase to ensure that it's worth the amount you are borrowing.
Appraiser
The appraiser is the underwriter's tool to determine how much the house is worth. All lenders subcontract or employ licensed appraisers who use a number of methods to determine the home's market value.
Escrow Company
The escrow company's primary duty is to receive and disburse funds based on what is mandated in the contract. Escrow companies are independent third parties and can do nothing unless both parties to the transaction are in agreement.
Title Company
Title companies check the chain of title on the home. This is a list of everyone who has ever owned the home - the historical transfers of title. The title officer checks to ensure that the person who is selling the home actually owns it and whether or not there are liens on the property. The title company also orders the survey and reviews it for any problems, verifies that property taxes and HOA fees have been paid, and prepares the title insurance policy.
Now that you're familiar with the players, let's take a look at some of the more common mortgage terms you may hear during your home purchase.

The Loan

Amortization - The amount of time you hold the loan, amortization is sometimes called the repayment period.
Principal - The amount you originally borrow.
PITI - An acronym for principal, interest, taxes and insurance. This is your monthly mortgage payment.

The Disclosures

Good Faith Estimate - Also known as the GFE, the "good faith estimate" is a form that the lender is required to provide to borrowers. It itemizes all of the loan fees and miscellaneous charges to make it easier for the borrower to compare different lenders' offers.
HUD-1 Settlement Statement - An itemized list of services and fees charged to the borrower by the lender. By law, the borrower is given at least 24 hours before closing to inspect the HUD-1.

The Fees

Closing Costs - Expenses incurred in financing the home. Closing costs vary and some are negotiable.
Point - What the lender charges for originating the loan. One point equals 1 percent of the loan amount.
Escrow Impounds - You will be asked to prepay taxes and insurance when escrow closes. This money goes into an escrow account and is used to ensure the timely payment of these bills. The lender may require up to two months of payments to be impounded.
Private Mortgage Insurance - Called PMI for short, this is an insurance policy that the borrower pays for, but it benefits the lender in the event the borrower defaults on the loan. Lenders typically require PMI when the loan-to-value ratio exceeds 80 percent.

 

 

Questions?

 

Have additional questions regarding your home sale or purchase?  Please call Inside Realty anytime at 248-758-0022!

 

We are experts, here to help guide you through the home buying process.

 

 

 

Need To Know Tips Before Buying A Home

Need To Know Tips Before Buying A Home

• Make sure you are ready for the commitment.

 

• Know if you should build a home or buy a home, depending on where you want to live.

• Find the location that you want to live in.

• Get approved for a mortgage unless you are going to pay in cash for a home.

• Weigh the cost of owning a home to whatever you are doing now.

 

• If you are going to pay in cash, then make sure you have enough for the area and/or home of your dreams.
• Find a real estate professional that you like and want to work with through the process of buying a home.
• Make sure to have an inspection done on the home that you want before purchasing it.

 

• Get a full disclosure from the inspector and from the agent on what the home needs to have fixed.
• Meet with a professional tax consultant to learn about property taxes and any other taxes that come with buying a specific home or a home in a specific area.
• Get a copy of the entire process in paperwork from start to finish when going to buy a home.
• After you purchase the home, make sure to change the locks first before doing anything else.
• This is to prevent any past residents or other agents and their potential buyers from being able to get into your home.

Buy Again! New FHA Guidelines Make it Easier Than Ever to Own a Home

Senior Housing

Senior Housing

As more people consider retirement, they might also be looking to downscale their living arrangements. The following shows a list for Oakland County and a list of Macomb County senior housing to help with the transition.

 

·       Oakland County

 

 

 

 

o   American House West Bloomfield Senior Living

§  www.americanhouse.com/senior_living

§  5859 W Maple Road

§  West Bloomfield Township

§  248-254-6943

o   Regent Street West Bloomfield

§  www.regentstreetwestbloomfield.com

§  4460 Orchard Lake Road

§  West Bloomfield Township

§  248-636-1130

o   Canterbury-On-The-Lake

§  www.canterburyonthelake.com

§  5601 Hatchery Road

§  Waterford Township

§  248-674-9292

o   St Anne’s Mead Retirement Home

§  www.stannesmead.org

§  16106 W 12 Mile Road

§  Southfield

§  248-557-1221

o   Halsted Place Apartments

§  www.halstedplace.com

§  29451 Halsted Road

§  Farmington Hills

§  248-489-8988

o   Clare Bridge of Farmington Hills I & II

§  www.brookdaleliving.com/clare-bridge

§  27950 Drake Road

§  Farmington Hills

§  1-877-712-9780

o   Boulevard Health Center

§  www.boulevardsubacute.com

§  3500 South Boulevard West

§  Rochester Hills

§  248-852-7800

·       Macomb County

o   Village of East Harbor

§  www.pvm.org/index

§  33875 Kiely Drive

§  Chesterfield

§  586-725-6030

o   Church of Christ Care Center

§  www.cofccc.org

§  23575 15 Mile Road

§  Clinton Township

§  586-285-7122

o   Northpoint Village of Utica

§  www.npointvillage.com

§  45201 Northpointe Boulevard

§  Utica

§  586-739-9545

o   Shelby Nursing Center

§  www.beaumonthospitals.com

§  46100 Schoenherr Road

§  Shelby Township

§  586-566-1100

 

o   Harborchase – Sterling Heights

§  www.harborchase.com

§  13400 19 Mile Road

§  Sterling Heights

§  586-254-5716

o   Arden Courts of Sterling Heights

§  www.hcr-manorcare.com

§  11095 E 14 Mile Road

§  Sterling Heights

§  586-795-0998

o   Sunrise of Shelby

§  www.sunriseshleby.com

§  46471 Hayes Road

§  Shelby Township

§  586-532-9559

 

 

 

Thinking of Selling Your Home?

Take the first step by finding out what your house is worth. We are happy to provide you with a FREE, No obligation Comparative Market Analysis. 

 

Call Inside Realty today at 248-758-0022

 

Or visit our website at http://www.insiderealty.com/sell/

 

 

 

 

Ways To Decorate Your First Home

Ways To Decorate Your First Home

Clean and go through everything you have before or as you move in. Get rid of everything and anything that you don’t need or want or haven’t used in years.

Once you are moved in, make sure that you go through the rooms again to make sure that you like everything and you aren’t storing anything that you will never need or use.

 

Don’t buy anything until you are completely moved in.

Before buying anything, ask yourself if you really need it or if you just want it. If you just want it, don’t buy it just yet. Buy your necessities first.

Don’t match everything in your house. Each room can match itself but do not match your living room with your bedroom with your kitchen.

 

With that being said, don’t drastically change colors throughout your house so that it ends up looking like Peewee Herman’s house.

You can always reupholster something if the color doesn’t go along with the rest of the living room.

Try the simple and inexpensive ways before going out and buying things to just decorate with.

Again, always remember not to just go out and buy. Realize what your needs are first and buy those to be comfortable in your first new home.

 

 

 

Selling Your Home - Fast Fixes for Home Showing / Staging

Whether we choose to professionally stage your house or not, here are some simple practices that will help keep your home looking open and appealing.

  

☼ If it’s smaller than a grapefruit it needs to be put away. Anything nonessential should be put away during showings.

☼ Limit the number of items on any surface to 3 or less.

☼ Beware of odors: especially bad ones and strong ones. Any smell that is strong should be eliminated. Check garbage cans, disposals, sinks, and bathtubs. Do not rely on air fresheners to mask smells, these can often be just as offensive to some buyers. Instead, clean or remove the source of the odor, and keep windows open when possible to allow fresh air inside.

☼ The only exception to the smell rule is chocolate. Baking chocolate before a showing can help a buyer envision living in your home.

☼ Remove pictures of your family—it may seem counter intuitive—but it helps buyers see themselves in the home.

☼ Remove personal items like trophies, pictures of names, or school flags. Buyer’s can’t see themselves in a home when they are constantly reminded that it is someone else’s.

☼ Put away unsightly laundry or cleaning products.

☼ Try to position furniture to make rooms look larger and more appealing.

☼ Stage the outside of the home. Never underestimate the power of “curb appeal.” Buyers want to be proud of the home they are buying, and its place in the community they are moving to.

Getting Your Home in Showing Shape

Quality of Life

All About Pontiac

Pontiac

With quick access to I-75, M-59, M-24, Woodward Avenue and Telegraph Road, Pontiac is an ideal location for business, shopping and housing.

 

 

Pinegrove Historical Museum is located in Pontiac. It is located on Cesar E Chavez Avenue. This museum is a tribute to the early Pioneer Settlers of Oakland County. The collection at the museum includes their tools that they made themselves.

The Creative Arts Center has been in Pontiac for more than 40 years. It’s main goal is to teach Pontiac to learn and enjoy art. It has classes for adults and children who are interested in dance, drama, arts and crafts, water color and oil painting, drawing, and African drums.

The following is a list of parks in Pontiac where you can do many different activities:

1.    Galloway Lake Park – Perry Street at Giddings Road

2.    Hawthorne Park – Telegraph Road and Hawthorne Park Drive

3.    Jaycee Park – Joslyn Avenue and Walton Boulevard

4.    Oakland Park – Montcalm, Glenwood Avenue, and Hammond Street

5.    Beaudette Park – Orchard Lake Road and Sylvan Court

6.    Murphy Park – Martin Luther King Jr. Boulevard and Osmun Street

7.    North Kiwanis Park – Stanley Avenue and Kinney Road

8.    Aaron Perry Park I and II (North Side and South Side) – Edison Street and Marquette Street