All the hard work you’ve done to buy a home in Philadelphia is almost over. The seller has accepted your offer, the financing is in place, and you’re in the final stretch to close the sale. Before you can cross
It’s finally happened: the seller of your dream home in Philadelphia accepted your offer and the contract has been signed. It feels like the signing should be the end of the process, especially after all you’ve gone through to get
Buying a house in Philadelphia is competitive and you need the advantage of fast underwriting, it also means taking on a large amount of debt in the form of a mortgage. Getting approved to borrow that much money requires a lender to go through your finances and credit history with a fine-tooth comb, and that takes time. Pre-qualifying for the mortgage helps reduce the amount of time it takes for approval, but it still takes weeks, sometimes months, for the lender to approve the mortgage.
The time has come for you to buy a home and put down some roots in a Philadelphia neighborhood. You've identified how much you can afford and how much you want to spend along with having an idea of what type of house you like. Why not get pre-approved and move into your dream home sooner than later? Pre-approval for a mortgage lets you know how much house you can buy makes you more attractive to a seller and increases your chances of getting the home. Here's why it's a good idea to get pre-approved for a mortgage through a Philadelphia mortgage company.
Interest rates are stable until they're not. That is to say, the Federal Reserve, aka the Fed, controls monetary policies that are designed to help the economy in various ways. For many years, interest rates were kept low to encourage a wide variety of economic activities including home building and buying. Now the Fed is tinkering with rates in order to keep the economy from overheating and that means the interest rates for mortgages are fluctuating as a result.
Mortgages are financial instruments offered by lenders that help you buy property in Philadelphia. You repay the lender that money and interest at a rate that was offered at the time you obtained your loan. When it comes to the interest, much is made about the fact that an increase in the rate affects your monthly payment along with your ability to repay the loan. While this is true to an extent, a change in the interest rate doesn't have as much impact as you may think. It's true you will pay more in interest on the money you borrowed over time, but you may still be able to afford the house of your dreams.
Mortgage insurance is something that helps homebuyers get a loan that they might not have otherwise qualified for. It's designed to protect the lender in case you default on your mortgage, but it doesn't protect you from the consequences of non-payment. Typically you get this insurance if you put less than 20 percent down on your home. The good news is that it's not something that lasts the life of the loan and you can eventually refinance to eliminate it from your mortgage.
There's a saying that gets repeated often: buying a house is the biggest purchase you'll ever make in your life. The same is true if you're buying your first home in Philadelphia or upgrading to a bigger property. In light of this fact, you'd expect to be treated well during the process as you're taking out a loan for a large sum of money. But oftentimes bankers haven't gotten this message and don't give you personalized service or pay attention to the details that are important to you.
How much money should I put as a downpayment for a Home Mortgage? There's been a prevailing mindset for decades that you need 20 percent down to buy a home in Philadelphia or the bank won't talk to you. What was rarely discussed by bankers is that you can buy a home with less than 20 percent, but the underwriting requirements are tighter and there's less room for mistakes when applying for a traditional mortgage
The thinking is, and you're probably one of them when you hear this kind of news, is that it's better to wait out the bubble and buy on the dip. This is a great strategy for the stock market, but it doesn't work as well for buying a home. A home is a long-term investment, true, but it's also the place you live. Taking the time to talk with a Philadelphia mortgage broker about the market can help you make an informed decision on buying. It's far more important to be satisfied with your living situation than it is to worry about its value in the short term.