Tips On How to Deal with the Stress of Buying Real Estate In Spokane, WA
Synergy Properties has already helped many home buyers to find Real Estate, Spokane, WA properties, and homes in areas outside of Spokane as well.
Buying a new home can become a very stressful process. At most times, first time buyers encounter the same problems over and over again. Thus, you need to prepare to face these issues and concerns.
What we can do for you is to determine how much you can afford and we can also handle the negotiations with the seller. But, we always encourage our clients to collaborate with our agents to make the experience more fun and a whole lot easier. We have an expert team that can guide you in every step of buying a new home. Yet, this doesn’t mean that you won’t encounter some problems along the way. So to prepare you, here are some of the common scenarios and tips from our experts for buying real estate around Spokane, WA.
Problem: How do I get financing?
Most people need to get a mortgage loan to buy a new home. Loans usually require a down payment. So, before deciding to get a home, you should settle financing matters so that the process will be smooth sailing. The two common types of mortgages that our clients get are FHA loans and conventional loans. Both of these require low down payments such as 5% to 10% of the sales price. There are even options for zero down loans, if you meet the requirements.
Problem: I don’t know what my credit score is?
This problem is somewhat related to the first. Most people do not qualify for a mortgage because their FICO Score is below the minimum requirement. So, if you want to qualify for a mortgage, you should maintain a credit score of 620 for FHA and 720 for conventional loans. How can you find what your score is? Well it’s easy; this is done by pulling your credit report. You may get this from your lender who will get it from the 3 main credit reporting agencies. After pulling your credit, your lender will let you know if you qualify for a mortgage, and how much you have been approved for.
Once you are approved you can go looking for your new piece of dream real estate in Spokane, WA, or any of its surrounding areas.
Problem: Dealing with Lender Ratios
A front-end ratio is usually expected to have a maximum of 33%. This is composed of your mortgage payment, plus taxes and insurance (PITI). This lender ratio means that your total payment is not higher than 33% of your monthly income. For example, if you are earning $5000 a month, your PITI should be $1,650.
On the other hand, if we talk about back-end ratios, it is adding your PITI payment with all monthly revolving debt payments. Your monthly income should be between the range of 41% and 50%. In some cases, this is dependent on your lender, and should be discussed prior to shopping for a home.
Once your lender has gathered all of your information, they should be able to give you an estimated maximum purchase price, so that you are prepared to shop within your budget.
Problem: Underwriting rejection
Going through underwriting can be very unnerving. You may be facing a lot of demands such as complete work history documentation, minimum bank account balance requirements, and a lot more. For example if your ex-spouse had a home that was foreclosed upon, then you could be disqualified. So, the best way to deal with underwriting is to disclose everything about yourself upfront, whether you have changed your surname or have remarried. You need to have a good reputation in terms of taking out a loan to become approved. So, make sure to tell your lender, in advance, about anything that you think may keep you from getting a loan. This way they can have time to work around, or find a solution to the problem, before your go looking for your dream real estate around Spokane, WA.
These are just some of the problems that you may encounter along the way. We at Synergy Properties know the ins and outs of home financing, and can help you deal with financial and loan problems. Feel free to contact us anytime with questions or concerns.
If you are ready to see if you qualify for a home loan, you can contact New Global Home Mortgage, or get started here.