5 Things to Avoid When Buying a Home!

5 Things to Avoid When Buying a Home
1) Large deposits and Cash deposits
2) Charging on credit cards, opening new credit accounts
3) Paying old collections
4) Co-signing for someone
5) Keeping balances at the 30% balance to limit ratio

Reach out if we can help!
Aundrea

Did you know saving for the down payment is the biggest obstacle for homebuyers?

Renters who want to buy in the future may feel like they have the cards stack against them. We know the big issues: lack of starter home inventory, rising interest rates, student loan debt and the hurdle of saving for a down payment. In fact, according to a survey, saving for a down payment was a barrier for 70 percent of renters, topping other hurdles such as job security and qualifying for a mortgage. 

Saving for a low down payment remains challenging. Sixty-five percent surveyed said they think it will be moderately to extremely difficult to save for a down payment. 

Education important for future homebuyers 
Today’s buyers are more eager to take homebuying education into their own hands. In fact, 72 percent of the respondents said they plan to complete an online or in-person homebuyer education course. And more than 50 percent have already researched down payment programs. They also want valuable information from experts. A whopping 92 percent want information on down payment programs from their agent or lender. 

Would-be buyers are also interested in information about mortgage options and the homebuying process. In a separate Down Payment Resource survey of 100 recent homebuyers, 63 percent said they wished their agent or lender had provided information about down payment programs during the homebuying process, ranking the higher than any other category. 

How can lenders help future homebuyers? 
When it comes to new homebuyers, more information is better. We encourage you to do your own research. By opening the gate to information including down payment help and mortgage choices, we strive to build buyer trust. We are going to hand hold and educate  throughout the whole process.

Let us know how we can help you with your homebuying goals!
www.iLendLasVegas.com 

Refinancing? Do you know your break even point?

Refinancing Means More Than Monthly Savings

You refinance to a lower rate, and you get a lower payment. But the opportunities don’t stop there.

Reduce your balance faster. With a lower interest rate, you pay more principal with each payment, especially in the first years of the loan. Example: After five years of payments on a 30-year loan of $200,000 at 4%, you would pay $19,706 in principal vs. $17,105 on the same loan at 5%. That's an extra $2,601 in benefit on top of the $7,052 of interest savings. Total advantage = $9,653

Own Free and Clear Sooner. There are two ways to make this happen:

     • Pay extra principal. Apply your monthly savings toward principal to shorten your loan term by several years. Example: Using the same loan terms from above, pay your $118/month savings as extra toward principal and cut the loan from 30 to 24.33 years.
     • Refinance for a shorter term. Rates on 15-year loans are typically lower than 30-year loans, so a payment on a shorter term may still be within a comfortable range for you.

Maximize Your Rate of Return Through Investments. If you deposit the $118 monthly savings from the example above into a tax deferred account earning 6% over time, it will grow to $81,852 in 25 years. If you use the savings to increase your 401K contribution with a 50% employer match, that figure would equal $122,782. Earning 6% on your money may be tough right now, yet historically, returns on a properly balanced and diversified portfolio are 7% or better. Always consult with a properly licensed financial advisor when making investment decisions.

Tap Into Your Equity. If you need to make repairs or improvements, you may be surprised at how much cash you might be able to free up without increasing your monthly payment. The same can be said for financing college educations or purchasing a second home or investment property.

Enjoy Peace of Mind. There’s comfort in making a prudent decision and putting a plan into action.

We're here to review your options and help you decide what might be right for you.

www.iLendLasVegas.com