Financing Your Minneapolis St. Paul Home

Almost nobody can buy a home today without financing at least part of the purchase price. That means you’ll need to work with a lender to obtain a loan for all or part of the purchase price. If you currently have a mortgage on your home, and you’re looking for a new home, it can all get pretty complicated. If you’re a first-time homebuyer, you need a professional to help guide you through this confusing process. One of the most important ways a qualified and experienced Real Estate company like REMAX Advantage Plus can help with any real estate transaction is to help coordinate financing for your new home.

The home financing marketplace has changed dramatically in the past few years. The economy of this country is still in the midst of a crisis that was created, in large part, by poor performance of certain mortgages issued during the recent real estate boom. That means that lenders are more hesitant to lend today. The creative and poorly executed mortgages issued in the heat of the boom almost brought our economy down.

Even so, well-qualified homebuyers with good credit histories have no difficulty in obtaining financing for home purchases. Interest rates are still at some of the lowest levels in memory, and plenty of money is available for home loans. Here are some of the considerations to keep in mind when thinking about home financing:

Income – Lenders want you to have a good, solid income history. The more secure your job is and the longer you have worked at your current job, the better.
Credit Score – The interest rate for mortgages depends on your credit report and credit score. If you have issues in these areas, correcting them is a high priority.
Financing Percentage – The percentage of a home’s value that can be financed today is not as high as it once was. The days of 100% financing may never return.
Home Condition – With lending standards tightly controlled, lenders are less willing than previously to lend money on older homes and homes that need extensive rehabilitation.
Home Appraisal Value – In the past, homes were often over-appraised, with values set higher than they should have been. This often led lenders to loan more than the home was actually worth. Today, lenders are very picky about appraisals.
Pre-Qualification and Pre-Approval – If you obtain a pre-qualification or pre-approval for a mortgage loan from your lender, you’ll have a powerful negotiating tool when it comes time to negotiate the price of the home you want.
FHA and VA Loans – If you qualify for these government-guaranteed loans, they may be your very best bet.
Bank Mortgages – If you have a strong relationship with your current bank, check with them for home financing. Know, though, that they are still feeling the effects of the recent crisis, and insist on high creditworthiness standards.
Savings and Loan Mortgages – As another good source for home financing, your good credit report will stand you in good stead here. Like the banks, though, they suffered during the past crisis and are using high standards for borrowers.
Other Financing Options – Your Real Estate professional can tell you about many other ways to finance a home purchase, and may have a relationship with a lender. Ask about your options.

REMAX Advantage Plus Can Help With Home Financing

If you have questions about financing a home purchase, REMAX Advantage Plus can help. Through our association with Bell Mortgage, we can help you obtain financing for your home purchase. We can also help you understand the current mortgage market so you’ll be better equipped to work with any mortgage lender. Finally, we can help coordinate the entire process.

If you’re in the market for a home, contact REMAX Advantage Plus first. Our staff of experienced, talented, and motivated agents will be happy to work with you from the very beginning until the day you move into your new home. Our professionalism and code of ethics assures you that trusting REMAX Advantage Plus to help with your real estate transaction is your best choice. Buying a home is a huge decision. You need the very best and most professional advice and assistance available. Contact us today with your questions. We have the answers you need.