While buying a home is a huge decision that should entail a lot of planning and preparation, applying for a mortgage can be surprisingly easy. Just like with other lenders and creditors, a mortgage lender will want to know that letting you borrow money will be a safe investment. Applying for a mortgage is all about ensuring just that.
In today’s post, we’re going to breakdown the home loan application process to help you have the best chances at a smooth and successful mortgage approval. We’ll also define some of the common terms used in mortgages that might leave you scratching your head so you have a better idea of what your options are.
Prequalification and Preapproval
Getting prequalified and preapproved for a mortgaged can both be helpful steps toward securing your home loan. The two terms mean two entirely different things, however.
In order to be prequalified for a mortgage, you typically need to only fill out a simple form (sometimes directly through a lender’s website). On this form, you won’t need to provide specifics or official documents.
Why is this process so simple? Well, that’s because getting prequalified for a loan doesn’t ensure that you’ll actually receive one. Rather, it is simply the first step toward finding out what type of mortgage and interest rates you could receive.
The next step after prequalification is preapproval. To get preapproved, you’ll have to fill out an official mortgage application. Your lender of choice will request a few pieces of information from you, including tax returns, proof of employment for the last two years, and a list of your debts. The lender will also perform a credit check to determine your loan eligibility.
At this phase, lenders will also run your credit report. This is a type of “hard credit inquiry” that details your payment history, the number of accounts you have open, and other factors that help make up your credit score.
To secure the lowest interest rate possible, it helps to have a high credit score. So, in the years and months leading up to your mortgage application, focusing on building credit will pay off.
To increase your credit score, you’ll need to focus on paying your bills on time each month. You should also avoid opening new accounts within a few months of applying for a mortgage because this will count as a new credit inquiry. New credit inquiries--including applying for a mortgage--lower your score temporarily, so it’s best to avoid them when possible.
Additional paperwork required for mortgage applications
Not every mortgage application will be the same. Depending on the type of income you receive, you may need to provide different forms of income verification.
Each person will also have to claim different debts and assets. When buying a home with a spouse or partner, it’s important to consider your debts, assets, and credit scores to determine if it’s better to apply jointly or separately.
A recreational vehicle, which many prefer to call a 'house on the wheel' has been a dream for a lot of adventurers over the years. It is mainly for people who love to go on an adventure, camp, travel, etc. It is the ideal vehicle for shelter, fun, and entertainment. The advantages of having an RV are numerous.Follow this guide if you’re looking to buy an RV
1. Use of the vehicle
How do you intend to use this vehicle? Is it on road trips only? Will you be living on the road for months? Do you plan to boondock? Ask yourself these questions to know if the RV will suit your needs, especially in terms of the size, type, and amenities that come with it. If you plan to live inside the RV with your family, then go for one with more space and more facilities.
2. Do your homework
You need to do your homework by doing extensive research about what you plan to do with the vehicle and the general idea of what you like in an RV, in terms of size, design, brand, and features. There are many brands available, and their websites are always online. Look around and make inquiries. If you don’t know much about vehicles, joining popular forums and seeking for help could be a good option.
3. New or fairly used
Unless money isn’t your problem, an RV is a huge purchase. Can you afford to buy a brand-new RV or a used one? If you’re going for a used RV, It is best to buy from someone you know. Whenever there is an issue, there will always be someone to help you.
4. Expenses to consider
You need to know that buying an RV isn’t the end. There are some expenses which you will also need to handle such as comprehensive insurance coverage, gas, propane, and fuel, access to cable and internet, maintenance and repair cost, etc.
Buying an RV is one of those things any fun lover, adventurer, or traveler would love to do. It gives you the chance to carry your home with you anywhere in the country for as long as there is road access. So, when buying an RV, don’t be in haste. Explore discounts, negotiate properly and you will carry your new home, home. Look for a local RV dealer to do a test drive and inspection today.
A home seller may face a variety of dilemmas as he or she tries to get the best price for a residence. However, a seller who prepares for potential problems may be better equipped than others to enjoy a fast, profitable property selling experience.
Now, let's take a look at three tips to help you get ready for potential home selling dilemmas.
1. Upgrade Your Residence
You may believe your residence will sell quickly, but the housing market offers no guarantees. Fortunately, if you allocate time and resources to upgrade your residence, you could differentiate your home from comparable houses in your city or town.
Removing clutter will make it easy for you to show off the true size of your home's interior to prospective buyers. Furthermore, you should clean each room of your home. If necessary, you may want to hire a professional home cleaning company too.
Don't forget to trim the hedges, mow the front lawn, repair cracked or damaged siding and perform other home exterior upgrades, either. If your home boasts amazing curb appeal, potential buyers may fall in love with your residence as soon as they see it.
2. Establish a Competitive Initial Asking Price for Your Home
If your home's initial asking price is too high, you risk alienating potential buyers. But if you analyze the real estate market closely, you can use housing sector data to establish a competitive initial home asking price.
Take a look at the prices of recently sold houses in your city or town, as well as the prices of available residences that are comparable to your own. This information provides a glimpse into the current state of the housing market and can help you determine how to price your residence.
It may be beneficial to conduct a home appraisal as well. In fact, a home appraisal report includes a property valuation that you can use to set a competitive initial asking price for your residence.
3. Collaborate with a Real Estate Agent
A real estate agent understands what it takes to sell a home in any housing sector, at any time. As such, he or she can offer expert guidance to help you identify and overcome home selling dilemmas.
Oftentimes, a real estate agent will meet with you, find out why you want to sell your house and craft a personalized home selling strategy for you. He or she next will list your residence and promote it to prospective buyers. And if you receive an offer to purchase your house, a real estate agent will help you determine how to proceed with this proposal.
A real estate agent also is ready to provide immediate responses to your home selling concerns and questions. That way, you can receive plenty of support as you navigate the home selling journey.
Ready to add your house to the real estate market? Use the aforementioned tips, and you should have no trouble addressing potential home selling dilemmas and enjoying a seamless property selling experience.
Putting your home on the market is not for the faint-hearted! As many people discover along the way, the road to selling a home can be rather bumpy -- especially if you attempt to sell it on your own.
Fortunately, there are several things you can do, right away, to make the journey shorter, smoother, and more rewarding. Here are three strategies that will greatly increase your chances of success.
Find a seasoned real estate agent. An experienced real estate agent will not only help you navigate state and federal regulations, negotiate with buyers, and get a handle on paperwork, but they'll also schedule showings of your home and provide continuous marketing help.
Enhance your curb appeal: When it comes to finding prospective buyers and setting up appointments, your real estate agent will do the lion's share of the work. However, it's mostly up to you to make sure your house looks its best and that the appearance of your property catches the eye of house hunters.
Once your home is listed online and a "for sale" sign is planted in your front yard, potential buyers are going to immediately take notice of how your house looks from the outside. Sometimes people browse listed houses from their cars, so it can really pay to make a great first impression from the street.
Some of the things that matter the most are a meticulous-looking yard, a clutter-free property, and a house that looks like it's well maintained. Adding a fresh coat of paint, displaying some colorful potted flowers, and taking care of unsightly weeds and overgrown bushes are a few things you can do to make your property look a lot more inviting.
Stage your home's interior: Once you've cleared the first big hurdle (curb appeal), your next priority -- or perhaps a simultaneous priority -- is to make the interior of your home look inviting and appealing. As is the case with boosting curb appeal, your real estate agent can provide you with cost-effective advice on how to get the most mileage from your efforts.
Some of the tried-and-proven methods of staging a home include reducing clutter, arranging living room furniture in "conversational groups" to depict a cozy, intimate environment, and letting plenty of natural light stream in to make your home appear as cheerful and bright as possible.
Fresh coats of neutral-colored paint should be applied to walls and ceilings on an as-needed basis, and all floors, tables, and counter tops should be kept immaculate. Home staging consultants often recommend removing (or toning down) certain decorating themes -- such as sports, religion, or even too many family photographs -- which may alienate some potential buyers.
The overall objective is to make it easy for house hunters to imagine themselves owning and living in your home. If there's anything about the appearance, decor, or smell of your home that makes people feel in any way uncomfortable, that could make it more difficult to find a committed buyer -- which, of course, is your ultimate goal!
Trying to understand what that home description is all about? Whether you're new to the housing market or newly returned, you'll find terms used to describe homes that you might not recognize. Or, you may not understand what they truly mean in context. The word walkable, for instance, shouldn't apply to a home at all, should it? After all, houses can't just get up and walk away.
Defining the real [estate] meaning
In real estate and urban parlance, a walkable neighborhood might refer to a community where services such as grocery and other shops, restaurants, bars, parks, and other recreation areas are reachable on foot within a 10-to-15 minute timeframe.
In another area, walkable might mean that public transportation to urban areas is within walking distance. In this case, the neighborhood itself may not hold the services but does support its being in reach via bus or train access.
Still, other definitions of walkable mean that the community has lighted footpaths, sidewalks, urban (or suburban) trails and other means by which residents may walk for exercise or recreation. Or, that the community provides opportunities and programs for residents to walk.
Breaking down “walkable” themes
With all the various definitions in use, a Harvard study published these themes as most important to walkability.
Environmental dimensions adding to walkability:
- Traversable: environments with the physical conditions—sidewalks, trails, footpaths—to allow traverse from one place to another without difficulty.
- Compact: where the distance between places is relatively short.
- Safe: lower crime rates, lighted pathways, marked and controlled crosswalks, and additional safety features add to the safe walkability of a neighborhood.
- Physically enticing: settings with full accessibility to pedestrians that include landscaping, signage, benches, shade trees, pathways, street lights, and views.
Outcome dimensions of walkability
- Social: a location with lively shopping and dining areas, typically mixed-use live/work situations and the friendly people that live, work, or visit there.
- Transportation: is the perception that both social equality (age, income, disability) and environmental preservation are sustainable via public transit.
- Exercise-inducing: forced exercise due to proximity to work, transportation, or services, or the lack of suitable parking that goes with living in a more urban area.
Designing for walkability
- Measurable: the neighborhood design or redevelopment includes walkability as a quantifiable outcome based on specific indicators.
- Holistic: in this case, walkability references communities of improved urban living with slower pace built in, scaled for human health and happiness, devised to promote interaction.
None of these is definitive, but if you’re looking for a neighborhood that defines “walkable” for you, check the walk score website, which measures over 100 aspects of walkability, and talk to your local real estate professional about what works for you.