Financing

Financing Everett real estate

Financing Your Everett Home

Most buyers start out with a little bit of money to put down as a down payment and start the sometimes life long process of paying a mortgage. The end can be in sight for those that get a lower term mortgage and don't continue to refinance for more equity.

Home owners may choose to upgrade eventually from their first home and this usually brings about a higher payment even though the sale from their last home brought in a nice chunk of equity for a down payment.

If you are a first time home buyer it might serve you well now and in the future to map out a general plan about where you would like your real estate venture to take you. Owning a home is a great investment but only if the equity continues to build. If you keep pulling money out for every little thing, the cycle is unending. No one wants to be paying a mortgage in their 60's. With a little planning now, you may save yourself thousands of dollars over your lifetime.

First thing to consider is the state of your current finances. Get a copy of your credit report from any of the three choices; Experian, Equifax, or Transunion. Go over it carefully  and make sure there are no mistakes or issues that can prevent a lender from considering you as a good lending choice. If you buying Everett real estate with a spouse or partner, get a copy of their report as well.

Get Pre-Approved from a lender of your choice. You can shop many options in lending. Consider Credit Unions, Banks, Private Mortgage Lenders or Mortgage Brokers. Each has their pros and cons and each can offer various rates and fees.

  • Banks - Banks are typically large corporations that have a set fee and rate. They may cost a little less in points but typically sell your loan to other even larger parties.
  • Credit Unions - These usually are a local business and keep their clients happy by providing excellent rates. Although, like a bank, they are restricted to just what they offer. The customer service may be a little better here but they are also more strict when it comes to who they lend to. They want to make sure they lend to people who can actually pay back the loan. They don't want to get into messes like large banks can.
  • Mortgage Brokers - Brokers are typically more expensive because you are paying for the service of having someone else track down the best option for you but they do just that. They have access to thousands of banks and hundreds of programs and rates. Brokers are often times a good choice because although you pay more up front, the costs associated with the loan are much cheaper over the life of the loan.
  • Private Mortgage Investors - Most home buyers won't go this route but private lenders can be a seller carry back loan or those that loan to first time homebuyers. These are typically easier to get but the interest rate alone could be doubled.

Once you choose whom you will go with, get a letter of pre-approval stating how much you can actually afford in a home. The lender will go over all your income, debt and current bills and determine a figure that your budget can comfortably hold. Once this is done, that lender will issue a letter stating you are approved for such and such an amount. This letter you will present to sellers when submitting an offer. It shows them you are a serious buyer that has done their homework ahead of time and are not planning on wasting the seller's time with a home offer the buyer really doesn't even know they can afford.

As with anything, time, preparation and education can save you the most money. If you are well aware of your finances, have a good emergency or reserve fund built up, and do your homework on where to get the best loan, you probably are going to come out light years of many home buyers today.

For more information on this and any other tips on financing your Everett homes and real estate please contact us anytime.

Other Useful Resources: 
Linda Michaud is your source for a complete Alamogordo homes site including current Alamogordo real estate listings, market analysis, buyer and seller information and all Alamogordo agent representation. For all homes in New Mexico and Holloman AFB housing contact Linda Michaud.

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