Chris Nooney

The Nooney Team

Buying a New Home? Here’s Why Mortgage Pre-Approval Should Be Your First Step

Buying a New Home? Here's Why Mortgage Pre-Approval Should Be Your First StepAre you thinking about buying a new house, condo or apartment? Whether you are upgrading, downsizing or investing, if you intend on borrowing the funds you’ll need to be pre-approved for a mortgage. In today’s blog post we’ll explore mortgage pre-approval and why this should be one of your first steps in buying a new home.

Pre-Approval Helps To Determine Your Budget

Do you know your budget? Mortgage lenders consider many factors when deciding how much they are willing to lend to a home buyer. While your employment status, salary, assets and credit rating are important, they are all pieces of a larger puzzle that help a lender to determine your risk. So regardless of how spotless your credit rating might be, you’ll want to get pre-approved for a mortgage before trying to figure out your total purchase budget.

The size of your down payment will also be a factor in determining your overall budget. If you still have a bit of time before you’re ready to buy a home, continue to put money aside for your down payment. The more you have, the less you’ll need to borrow.

Once Pre-Approved You Are Ready To Make An Offer

Once you’re pre-approved for your mortgage, you’re ready to submit an offer for the home. Note that you do not need to bid high just because you are approved for a large mortgage. Work with your real estate agent to determine the right asking price for the home. Submitting a bid that’s a bit lower than you’re willing to pay leaves you with a bit of room in case the seller makes a counteroffer.

Many Sellers Will Demand Pre-Approval

Finally, don’t forget that many sellers will require that you are pre-approved for mortgage financing before they’ll accept a bid or offer. Many listings end up receiving multiple offers, especially those in hot real estate markets or popular communities. So if you table an offer without pre-approval, you may find that it is rejected in favor of another buyer who is ready to go.

Once you’ve been prequalified for mortgage financing, pre-approval is the final step in the process before you’re ready to make an offer and purchase your new dream home. For more information about the pre-approval process, contact your trusted mortgage professional today.

Buying a New Home? Four Key Questions to Ask Your Mortgage Advisor

Buying a New Home? Four Key Questions to Ask Your Mortgage AdvisorAre you in the market for a new home? If you are planning on borrowing some or most of the home’s purchase price, you’ll want to prepare yourself for the mortgage process. Let’s take a look at four key questions that you will want to ask your mortgage professional when you first meet to discuss your home loan.

What’s The Best Mortgage Option For Me?

As you probably know, there is a wide variety of mortgage loan options and programs on the market today. You may qualify for a number of mortgage loans along with certain government programs or specialty mortgages. Your mortgage advisor will be able to share the pros and cons of each type of mortgage loan so you can decide which option best suits you.

What Interest Rate And Amortization Period Fit My Budget?

Next, you’ll want to determine what loan term and interest rate combine to produce a monthly payment that fits your budget. For example, in some cases, you may prefer a lower interest rate over a longer amortization period like 15 or 20 years, which can reduce the amount you pay each month. Conversely, you may decide that you want to pay the loan down faster and take a shorter term with a slightly higher interest rate.

What Fees And Closing Costs Will I Incur?

When you borrow a mortgage to buy a home, you will inevitably incur some additional costs and fees. Some are connected to the home itself, such as home inspection or home appraisal fees. Others are due to the mortgage and might include loan origination fees or discount points that you choose to buy to lower your interest rate. Your mortgage advisor will be able to give you an honest assessment of what fees you’ll need to pay and which you can potentially avoid.

What Documents And Paperwork Do I Need To Prepare?

Finally, you’ll want to get an idea of what documents and other paperwork that you’ll need to prepare. Your mortgage lender will require a number of items to verify your income, credit history and for risk assessment purposes. This might include past income tax forms, pay stubs, bank statements or other materials if you’re self-employed.

These are just a few of the talking points you’ll want to cover when you first meet your mortgage advisor. For more information about the mortgage process and to get things started, contact us today. Our mortgage team is happy to share our insight and answer any questions you might have.

Home Builder Sentiment Highest in Five Months

Component readings used for calculating Housing Market Index readings also rose in October. Builder sentiment for current market conditions gained five points for a reading of 75. The index reading for builder perception of market conditions in the next six months also rose five points to an October reading of 78.

Builder sentiment for home buyer traffic in new home developments rose one point to 48. Buyer traffic readings seldom exceed a Home Builder Index reading of 50.

NAHB Chairman Granger Mc Donald said builders were recovering from the initial shock of damage caused by hurricanes, but this was prior to numerous wildfires adding to demand for contractors and home builders.

National Disasters Add to Ongoing Materials and Labor Shortages

Factors contributing to stronger builder sentiment included an industry concentration of building homes for purchase instead of multifamily rental projects. Single-family homes have been in short supply in recent years and building more homes is the only remedy for a market skewed in favor of sellers and rapidly rising home prices fueled by high buyer demand and few choices available to buyers.

Recent hurricane damage is likely to raise materials prices and worsen labor shortages; Widespread damage caused by wildfires in California is expected to increase demand for contractors and skilled laborers as they work to repair and rebuild homes and buildings ruined in storms and fires.

Regional Readings Mixed

Three-month rolling averages of builder sentiment for regions tracked by NAHB were mixed. In the Northeast, builder sentiment rose one point to 50. The South gained two points for a reading of 68. The reading for builder sentiment in the South was unchanged at 63; the reading for the West was also unchanged at 77.

Winter weather and challenges caused by higher demand for services against rising materials costs and ongoing labor shortages can be expected to challenge builders, but the need for new housing caused by multiple national disasters will likely create many new jobs for builders.

Pursuant to the requirements of Section 157.007 of the Mortgage Banker Registration and Residential Mortgage Loan Originator License Act, Chapter 157, Texas Finance Code, you are hereby notified of the following: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. © 2021 Draper and Kramer Mortgage Corp. All Rights Reserved.
Equal Housing Lender
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Christopher James Nooney (NMLS ID # 179371 (www.nmlsconsumeraccess.org) TX:179371) Roger G Ryman Jr. (NMLS ID # 180704 TX:180704) Michele Domenico Zugheri (NMLS ID # 179379 TX:179379) are agents of Draper and Kramer Mortgage Corp. (NMLS:2551) an Illinois Residential Mortgage Licensee located at 1431 Opus Place, Suite 200, Downers Grove, IL 60515, 630-376-2100. TX: Draper and Kramer Mortgage Corp. NMLS ID 2551.

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