1.) Credit Tips
Not everyone has great credit. Some people have had to sell their homes in a short sale. That can reduce your credit, but there are ways to recover it quickly!
There are people who's sole job is to help other people repair their credit. They help people get qualified for homes etc...
You don't HAVE to have perfect credit to qualify for a mortgage during this time of awesome interest rates. Your rate may be higher, but the rates are so low even a little higher rate is still a good rate!
2.) Mortgage Insurance / Refinance
Do you have equity in your property but a higher interest rate? Refinance your home and lock in that lower rate and get a lower payment! Take advantage of the incredible rates
Mortgage Insurance - With an FHA loan your mortgage insurace is for the LIFE of the loan. However, with a conventional loan even if you choose to only put down the 5%, once you have paid up to a certain amount you can refinance and get your mortgage insurance removed.
3.) Upfront Underwriting
We've heard of pre-qualifying before you go purchase a home. That's when based on the information you've provided you get a certain amount you're qualified for. No credit check or verification of income etc....... It's the most basic
Then there is a pre-approval. This is when your credit scores get pulled and you send some basic information into your lender and with that information you get a pre-approval and the loan still needs to go through underwriting and there is still the possibility that the loan may not get approved.
John and Movement Mortgage do things in a way that most people would consider backwards. They under write UPFRONT!!!!! You send all of your documents to him before you even start looking for your home and your file goes through under writing FIRST!!! That means when you find the home of your dreams there is no question that you may not get it. Once under contract they can close a home in as little as 10 days!
4.) Negotiation / Next to Cash
Cash is King, be the Queen
With having your loan pre-underwritten you are now just as good as CASH offer!!! In multiple offer situations your offer stands so much stronger because now there is no question that you will be able to close.
5.) Pre-Qual vs. Pre-Approval Mythbusters
A prequalification is just as good as good as a pre-approval......
Don't know which one you have? How much information did you provide? That's the easiest way to find out. Was your credit pulled? Did you provide any income information?