“Write it on your heart that every day is the best day in the year.” Ralph Waldo Emerson
We absolutely love Emerson’s words that every day is the best day in the year. And a new year is a fresh start! It’s a time to prioritize, reorganize, and set dreams and goals for the upcoming months. We are excited to announce a new blog series entitled New Year, New You! We will be sharing vital information over the upcoming weeks from professionals around the state. You can expect helpful hints from financial planners, professional organizers, etc.
With spring quickly approaching, many Mississippians will be looking to buy a new home! House hunting, securing mortgages, and buying a home can be a stressful, confusing process.
We reached out to Patrick Davis of The Mortgage Connection, LLC, in Madison. Today, Patrick shares his expert tips and advice for home buyers!
1. Don’t go buy anything if you are thinking of purchasing a house. The reason being if you go out and purchase a vehicle then your “buying power” slowly diminishes. I should add, don’t buy anything during the loan process!
2. Try not to go look at homes before getting prequalified. You might find yourself comparing those higher priced homes to your “buying power”. Plus, you might lose out on a house if you aren’t prequalified.
3. Have your credit report pulled by yourself or a mortgage loan officer. I would suggest letting a mortgage professional pull it so that way you all can discuss realistic goals and numbers. Once you have an understanding of your situation then you can house hunt with a clear picture.
4. You don’t have to have 20% or more to put down on a house. Most lenders have programs that will allow you to put down a minimum of 3.5%. There are programs out there that will allow you to get into a house with 100% financing. Obviously putting more money down will lower your house note and most of the time will get you a better rate.
5. You don’t want to be “married” to a house. This can be solved by understanding how much home you can afford on a monthly basis. There are a lot of rule of thumbs out there but you need to look at it from the ground – up. Most of the time you can get prequalified for more home than you want but if you aren’t comfortable with that particular mortgage payment then you don’t need to go look at that house range. If the buyers are comfortable with a $1000/mo mortgage payment, then work backwards to see what house range fits their situation. My clients find this to be very helpful.
6. Get a professional real estate agent to help you, like Emily Ferguson of Nix-Tann & Associates, Inc. This is just as important as getting the right mortgage loan officer. Having a great real estate agent will guide you through the process with ease and eliminate problems before they arise. Plus, they know the market value of every house.
7. Know what market you want to live in but also be open to other markets in the area.
8. Get a home inspection. They can point out potential problems that could require costly repairs down the road as well as items that need to be fixed now. Don’t use someone the seller has suggested either.
Thank you, Patrick, for this wonderful advice! Patrick can be reached at 601.559.5990 or [email protected]
{Photo is courtesy of Stephanie Rhea and Blog by Mitchell Walters}
We absolutely love Emerson’s words that every day is the best day in the year. And a new year is a fresh start! It’s a time to prioritize, reorganize, and set dreams and goals for the upcoming months. We are excited to announce a new blog series entitled New Year, New You! We will be sharing vital information over the upcoming weeks from professionals around the state. You can expect helpful hints from financial planners, professional organizers, etc.
With spring quickly approaching, many Mississippians will be looking to buy a new home! House hunting, securing mortgages, and buying a home can be a stressful, confusing process.
We reached out to Patrick Davis of The Mortgage Connection, LLC, in Madison. Today, Patrick shares his expert tips and advice for home buyers!
1. Don’t go buy anything if you are thinking of purchasing a house. The reason being if you go out and purchase a vehicle then your “buying power” slowly diminishes. I should add, don’t buy anything during the loan process!
2. Try not to go look at homes before getting prequalified. You might find yourself comparing those higher priced homes to your “buying power”. Plus, you might lose out on a house if you aren’t prequalified.
3. Have your credit report pulled by yourself or a mortgage loan officer. I would suggest letting a mortgage professional pull it so that way you all can discuss realistic goals and numbers. Once you have an understanding of your situation then you can house hunt with a clear picture.
4. You don’t have to have 20% or more to put down on a house. Most lenders have programs that will allow you to put down a minimum of 3.5%. There are programs out there that will allow you to get into a house with 100% financing. Obviously putting more money down will lower your house note and most of the time will get you a better rate.
5. You don’t want to be “married” to a house. This can be solved by understanding how much home you can afford on a monthly basis. There are a lot of rule of thumbs out there but you need to look at it from the ground – up. Most of the time you can get prequalified for more home than you want but if you aren’t comfortable with that particular mortgage payment then you don’t need to go look at that house range. If the buyers are comfortable with a $1000/mo mortgage payment, then work backwards to see what house range fits their situation. My clients find this to be very helpful.
6. Get a professional real estate agent to help you, like Emily Ferguson of Nix-Tann & Associates, Inc. This is just as important as getting the right mortgage loan officer. Having a great real estate agent will guide you through the process with ease and eliminate problems before they arise. Plus, they know the market value of every house.
7. Know what market you want to live in but also be open to other markets in the area.
8. Get a home inspection. They can point out potential problems that could require costly repairs down the road as well as items that need to be fixed now. Don’t use someone the seller has suggested either.
Thank you, Patrick, for this wonderful advice! Patrick can be reached at 601.559.5990 or [email protected]
{Photo is courtesy of Stephanie Rhea and Blog by Mitchell Walters}
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