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"Mortgage Terminology"
You might think it’s silly for me to dedicate an edition of Diction-Carrie to a term that basically means “payment,” but there’s a significant amount of confusion around this – especially for those who shop for home loaans and homes online without the assistance of real estate and mortgage professionals. Most people know what the term [...]
In this video testimonial, Amy tells her story about working with Carrie Guarrero and Cornerstone Mortgage Company when she and her husband bought their home this summer using an FHA 203K.
Why on earth would I be taking time to explain something that most everyone knows the definition of? Because there’s so much more to this “thing” that most of us have had some experience with – like buying cars or other items on credit.
Many clients ask me about how to pay off their mortgages early for different reasons…perhaps they just want to save on interest over the long term of their loan or they want the peace of mind of knowing they don’t owe anything on their property. My team and I take these concerns seriously and talk at length with our clients about what their goals are to arm them with the information they need to reach them. Which is why this month’s Diction-Carrie focuses on “Amortization.”
Time for another edition of the “Diction-Carrie” – my forum for simplifying the terms associated with mortgage and real estate transactions and helping consumers understand what they truly mean to them. I thought I’d tackle a term this month that nobody likes to hear, discuss or deal with: Closing Costs.
The words don’t mean to be confusing, but when they are taken from the normal usage in daily language and applied to the specific arenas of mortgage and real estate, they can be misleading if you’re trying to make sense of them based on their normal meaning. Two terms that are particularly important for anyone getting a mortgage (buying a home, refinancing) are PRE-QUALIFICATION and PRE-APPROVAL.
This blog title looks like a chemistry notation or the name of something that will afflict our computers on a specific calendar date, but it refers to something that’s becoming an absolutely indispensable element in today’s real estate mix. I’m making a bit of a play on words with a subject that I think is vitally important to certain segments of the Twin Cities metro area real estate market and beyond; but I’m so passionate about the possibilities this creates that I’m willing to be glib to draw attention to it. It’s an FHA 203K home loan program.
The FHA 203K Program is a great solution for first time home buyers and move-up home buyers in today’s Minnesota real estate market. Inventory levels are down and much of the inventory is bank owned or what we call “lender mediated” where there is a short sale or bank involved in the sale. What this means to you is that potentially, the seller or bank will not be able or willing to make repairs to a home that you desire to buy.
Solution? FHA 203K Loan to buy and fix up the home that you’re looking to purchase.
FHA 203k loans are most definitely a big deal – from New York City to the Minnesota neighborhood you want to live in and everywhere in between that interested, qualified buyers may dwell. The media so often features the most negative and sensational stories and I was happy to see this FHA 203K program given time on the national stage. Now that you know not all the housing and mortgage news is negative, let me and my team help you find out what options are out there for you!
It won’t seem strange to most to know that we will be assessing your income situation when you apply for a home loan. The average person believes that it makes sense that we know you have the capacity to repay a long-term monthly obligation like a mortgage with reasonable amount of verifiable monthly income. There are however, a number of different things that most home buyers don’t understand about income qualifying for a mortgage. There are things we count and things we don’t count when considering your income and a few of them may surprise you!
Watch this video for information on the upcoming First Time Home Buyer Class
MN First Time Home Buyer Class
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