What’s Your Interest Rate?

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Tough question– As you may know, rates change daily and are affected by property type, credit score, loan type, and more. Most mortgage companies that give an exact quote usually advertise the rate for joint applicants with credit scores over 800, 25% to put down on their first home, and with 2-3 “points” paid.
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Depending on the home being purchased and the client’s unique situation, the rate can vary by quite a bit. To complicate things more, a lot of mortgage companies allow for their clients to pay for “points.”
This means if a home buyer pays 1% of the purchase price as a fee at closing, they can lower their interest rate by an eighth to a quarter of a percent. Clients can pay for as many points as they’d like, essentially getting whatever interest rate they desire if they have the funds at closing.
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Keep in mind, at some point the fee that you pay at closing and the money you’re paying monthly in the higher interest rate are definitely going to “break even.” If you loan officer is quality, they can run a break even analysis to find out if paying the fee for points is even worth the cash up front.
Simply put, I’ve helped on loans with rates anywhere between 3.25% – 4.5% this week. Mortgage companies that advertise one rate are usually being deceptive, and don’t take into mind your actual situation.
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Want to learn more or talk specifics? Give me a call at 615-292-9696 x23

It Gets Ugly When Competing For The Win

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Like the presidential race, Nashville’s real estate market is incredibly competitive right now. You’ll always have an edge with the proper planning– whether you’re on the buyer’s or seller’s side. All this action means floating around without a plan will likely leave you behind… please clap.cc925c43a2165c901ae125287e5e77bdAs you know, Nashville’s last 24 months of growth has been astounding. People moving here in mass, cranes in the sky everywhere, and real estate prices going up! I’m constantly finding myself answering the question, “Is Nashville nuts right now?” My answer is… yes for some and no for others.

 

I answer no because there is serious demand due to our population growth and our housing shortage. Simply, supply cannot keep up with demand.

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It’s yes because of some of the insane density projects (multiple houses on small tracts of land). Outsider money is paying seemingly outrageous amounts for development deals.

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As always, I feel that each client’s needs and wants are individual and every real estate deal in Nashville right now needs to be carefully considered. If you or a friend needs some advice on buying a home, give me a call at 615-292-9696 x23.

-V

Real Estate Terms – From Easements to Good Title

When buying or selling a property, it always helps to have a basic understanding of real estate terms. In this on going series of articles, we take a look at definitions starting with “easements.”&…

Source: Real Estate Terms – From Easements to Good Title

How to Avoid Being Turned Down for a Mortgage

If you’re trying to buy a house, there is nothing worse than finding your dream home only to be turned down for a mortgage. But that won’t happen if you do your mortgage shopping the ri…

Source: How to Avoid Being Turned Down for a Mortgage

What Every First Time Buyer Should Know

Every homeowner was once a first time home buyer. It can be a very scary experience but I assure you it is so exciting and rewarding in the end! Common questions such as “How do we know we ar…

Source: What Every First Time Buyer Should Know

Words Written In A Nashville House Fulfilled More Than A Century Later

These words from the 1880s were written by a man who lived in this Nashville house. They describe John Berry McFerrin’s experience with a non-traditional style church meeting as a young man i…

Source: Words Written In A Nashville House Fulfilled More Than A Century Later

Run-Of-The Mill Insurance Agents vs. SUPER AGENTS!

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How do you judge a good Homeowners Insurance agent? By and large, you should look for the following when trying to distinguish between a so-so agent and a GREAT agent:

  • Conducts an “Accurate and Honest Needs” assessment
  • Willing to discuss your situation
  • Reviews all of your insurance options and recommends the best fit for your needs
  • Helps you achieve your financial goals
  • Educates you about insurance and allows you to make an informed decision
  • Handles policy changes, questions, and claims professionally and timely
  • Keeps you informed of industry and policy changes

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All items above boil down to one thing: COMMUNICATION!

People usually prefer different levels of communication–look for an agent on your wavelength, and make it clear what level of communication you expect.

Happy home buying!

-V.

 

What’s the Beef with Homeowners Insurance?

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A homeowners insurance policy is required when buying your home. Often times, if you do not already have a homeowners insurance agent because you currently rent, your lender will have a few recommendations from your area. Even if you DO already have a provider, it doesn’t hurt to check that you’re still getting the best possible terms when buying a new home.

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You should know that the home insurance world is a self-regulated industry. This means that each company sets their own standards, which are then monitored by the state. Integrity, service, standards, and quality varies by agent and company.

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Insurance policies can also differ greatly. There are “Cash Value” policies and “Replacement Cost” policies. The former policy is less expensive month-to-month, but if your home experiences unexpected storms, theft, or alien invasion, you will be at a loss. Replacement Cost policies offer better protection, and will ensure you and your home valuables are covered. You should always check with your agent what level of coverage is best for where you live.

There are a lot of decisions to make when buying a home, and I hope this helped!

All my best,

V.


 

P.S. THBC official site is looking so great, I cant wait to share!

 

 

Common Credit Misconceptions

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Unfortunately, a lot of misinformation is spreading around about your credit score. Considering the quality of your credit score could impact whether you are able to qualify for a mortgage and buy a home, ensuring your score is healthy should be at the front of everyone’s minds. The following are a few common credit myths:

My credit score is ONLY impacted by the loans I’ve taken out.

FALSE! If you have bills in your name, such as from major utility companies, phone companies, etc, delinquent payments can be reported to the Credit Bureau and put a big ding in your credit score.

I paid back my delinquent payments to get my score back to where it was.

NOT POSSIBLE! Your credit score is a measurement of how well you’ve paid debts on time. Even if you’ve paid off a late payment, the damage has been done. The only way to raise it back up is to make many more payments in full on time in the future… It takes time.

"Maybe we'd better airbrush this credit report before applying for a loan."

Having a zero balance on my credit card every statement helps raise my credit score.

NOT HOW IT WORKS! Unfortunately, you need to use credit to get credit. A safe bet to raise your credit score is to have about 20% of your total credit limit charged on your credit card, while ALSO paying your monthly payment on time.

The more credit cards, the better!

NOT REALLY. Unless you have AMAZING credit already, sending out a ton of credit card applications will actually hurt your score. Each application and denial counts against your score. Try and have a credit card from a major company, like Visa, American Express, Discover, or Mastercard after you are confident you’ll be approved.

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Also, I should note that places that give you free credit scores often use their own, made up index to give you an inflated score so that you have a more positive relationship with their services… If they are offering you a service for free, they will be selling your information so that they can make a profit. Stick with AnnualCreditReport.com to get your score from the three biggest US Credit reporting agencies–the median of these three scores are what ALL mortgage lenders use to qualify you for a loan.

Smart spending,

-V.


The Home Buyer Class is open for early registration!

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Earnest/Trust Money

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When you find a home you want to buy, you usually need to coordinate with your lender, buyer’s agent, seller, and the seller’s agent to complete your offer. In the meantime, if there is a delay between any of these entities, it is possible for YOUR dream house to get sold to someone else!

So how do you prevent this? Something called earnest money. Earnest money is money paid to confirm a contract. This needs to be a written agreement, as verbal agreements are not legally binding.

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In the Earnest Money agreement, all terms are specified. Typically, there is an initial offer and a final offer. Buyer’s agents will have the necessary forms.

Don’t worry about the deposit costing you extra! The money deposit is held until the offer becomes a contract. The check will be deposited at that time, AND the money is credited to the closing costs!

 

-V


The Home Buyer Class is open for early registration!

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