Strengthen your credit. Your credit score, loan-to-value ratio, and debt-to-income ratio are all considered by the lender. It’s easiest to look at it this way:

• The higher your credit score, the better.
• The larger your down payment, the better.
• The lower your monthly debt payments, the better.

The lowest interest rates are awarded to borrowers who have the very best credit, and the lowest risk profile. Mortgage underwriting is complicated, and involves more than the items above – but this gives you a good start!

Pay attention to rates. Each week, Freddie Mac publishes the Primary Mortgage Market Survey (PMMS), which shows the national average for mortgage interest rates. This snapshot includes three main mortgage types. It includes the average points, if any, lenders are charging to issue those rates. As of November 21, 2018, the PMMS looked like this:

30-year fixed-rate mortgage = 4.81% with 0.4 points

15-year fixed-rate mortgage = 4.24% with 0.5 points

5/1 adjustable-rate mortgage = 4.09% with 0.3 points

These rates are subject to change daily, and are for example purposes only.

Consider your mortgage loan options. While the 30-year, fixed-rate mortgage is popular, you’ll enjoy a lower rate, and pay less interest overall with a 15-year mortgage. Keep in mind, the shorter term will mean a larger monthly payment.

You can consider adjustable-rate mortgages, which offer low introductory rates. In the example above, the 5/1 ARM means your interest rate stays the same for the first five years. Afterwards, it will adjust every year for the remainder of the mortgage.

Do the math on mortgage points. A point equals one percent of the principal amount borrowed. When you pay points, you’re basically paying interest in advance. In return for this up-front money, the lender grants you a somewhat lower mortgage rate. As you saw in our PMMS rate examples above, points may be shown in any fractional amount.

Points are paid at closing with other out-of-pocket costs. If you wish, you can opt to “roll” your points into the mortgage loan with other closing costs. Remember that paying points at all is completely optional!

Lock the rate. A rate lock means your lender promises to honor the offered rate for a specific amount of time. This protects you from the daily changes in rates that happen in the financial markets. Generally, the rate lock gives you enough time to get through the closing process.

When you’re happy with the mortgage offer, and you don’t want to gamble with the future rate environment, lock it in! But if you think rates might be heading lower, you can opt to wait a bit, or try shopping rates with another lender. (Remember, your personal creditworthiness plays a large role in the rates you’ll be offered.)

Educate yourself! Our free e-book explains these matters in detail! Obtain your copy of “How to Buy a Home like a Pro” by clicking here. There’s no charge, no obligation, and we never share your email address with anyone else.

As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services, www.buyershome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

The post Mortgage Strategies for Columbus Home Buyers appeared first on Columbus Ohio Real Estate | Buyer's Resource Realty Services.

The average amount over-spent by respondents was $16,510. When the results were broken down by generation, Millennials over-spent the most, compared to their older cohorts:

• 40% of Millennials went over budget by an average of $24,545
• 34% of Generation X went over budget by an average of $13,996
• 19% of Baby Boomers went over budget by an average of $8,024

Perhaps the most telling element of the survey, is how each age group made their home buying decisions. The survey found that the Millennial respondents were the most reliant on the advice of their real estate agents! About 1 in 5 Millennial respondents, or 19%, admitted to being “indecisive at times.” They also said they “relied on their agent to tell them what homes they should be considering and touring.”

Since the vast majority of real estate agents serve the best interests of the home seller, and usually promote the listings of their own brokerages first, it’s easy to see how buyer over-spending can occur. This is because a typical agency has no fiduciary obligation to the home buyer, and does not protect the buyer’s best interests whatsoever!

There is nothing to stop such agents from steering you towards listings that represent their best interests and biggest commissions. Such agents are also prone to dispending bad “home buying advice” that serves every advantage of the seller.

Only an Exclusive Buyer Agent or Exclusive Buyer Broker provides you with 100% buyer loyalty and fiduciary representation, 100% of the time! Since we never represent sellers or accept listings, we have no vested interest in what home you choose to buy. We can show you homes For Sale by Owner and homes for sale directly by builders, as well as home listed through the Columbus Regional Multiple Listing Service. We also “tell it like it is” when it comes to home condition and the market value of the property!

Our Buyer-Clients are not encouraged to become “house poor”, or told to waive protective contingencies that provide critical legal protections! Buying smart is the best way to obtain the long-term benefits of successful home ownership. Learn more buy getting our free e-book, “How to Buy a Home like a Pro!”

As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Broker, CEBA-M, CNE, CSP, PSA, e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services, www.buyershome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

The post Too Many Americans Busting Budgets to Buy a Home appeared first on Columbus Ohio Real Estate | Buyer's Resource Realty Services.