Tips For Choosing A Lender

Tips For Choosing A Lender

Choosing a lender to work with can be overwhelming but here are a few tips to help you through the process.  Lenders play an important part in the real estate transaction and picking the right one is key.  You may have seen commercials, billboards or even internet ads but which lender is right for you.

Start by having choices, I strongly recommend you interview at least three lenders.  I have lenders I work with on a regular basis and recommend for many reasons.  The key is to know you are in control and have choices, pick the one who is right for you not necessarily the first call you make.

Ask about pricing, interests rates and costs.  This by far is a buyer’s main concern and while I agree it isn’t everything either.  Find out what you need to have as far as credit, down payment, closing costs and total out of pocket.  Ask about different loan options available to you under your situation.  Keep in mind someone who just got out of college may have different choices as opposed to a move up buyer with an established career know your options.

Are they available in the evenings and weekends?  This is extremely important as that is when real estate deals are done.  Most people are shopping when they are off of work and that is when your lender should also be available.  Traditionally lenders have been a nine to five business hour work week however in a competitive market we are in that has evolved to be available through out the week to stay competitive.  Availability is key so be sure to ask so you know you can be competitive in this market.

As you can see many there are several things to think about when choosing a lender to work with.  While television commercials might make you think it is something you choose down on your phone or on an app it really is much more involved than that.  The reality is you want to have someone who is available, gives you options, is transparent with their fees and has a good reputation of getting loans closed on time.

With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate.  I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

Mortgages: Pre-Qualification vs Pre-Approval? What is the Difference?

Mortgages: Pre-Qualification vs Pre-Approval? What is the Difference?

So which is better and which should you get… pre-qualification or pre-approval?  What do they mean and what is the difference?  You often hear the two terms thrown around when talking mortgages and financials so let’s break them down.

First just know these two terms can be interchangeable to some loan officers and lenders so be sure to ask for clarification.

Pre-Qualification is considered to be the easier of the two and involves less information.  Let me explain.  First in this scenario you provide your limited information to either a loan officer or even a website and almost immediately you get a response.  Either yes you are pre-qualified and for how much or declined.  However please know that there was no verification involved and this is the key difference.  You could have lied to a computer or loan officer and based on your information they make a decision.  When you get a letter from the lender with a pre-qualification it usually is not taken as seriously due to the lack of verification.

Pre-approval on the other hand is the same except there is actual verification.  Now instead of just entering your income you will need to provide proof of your income such as bank statement, tax returns and pay check stubs.  If you have assets those will need to be verified as well as your employment.  As you can see this takes more effort however due to the verification it carries more weight in comparison to a pre-qualification.

So what does this actually mean to you when you start shopping?  A pre-qualification will have a bit less meaning than a pre-approval to a seller who receives your offer.  Knowing there has been some verification involved will make the seller more confident in a pre-approval as opposed to a pre-qualification.

Now do you want to take it up a notch and be fully approved?  This is even more verification and even involves the lender’s underwriter.  Just know at this type of approval you are fully approved meaning everything is verified and all questions the lender may have to give you a loan have been satisfied.  At that point the only thing between you and a loan is finding a home.  You can read more about fully lender credit approval here.

With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate.  I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

How Long Does It Take To Get Pre-Approved For A Mortgage?

How Long Does It Take To Get Pre-Approved For A Mortgage?

How long does it take to get pre-approved?  Getting pre-approved can be done in a few hours if not a day but it is all about being prepared.  Being prepared with all the documentation and information in hand will expedite the process for you and the loan officer.

Be sure to have all your information ready so there are no delays.  Some of the items you will need are your tax returns, pay stubs, bank statements, 401K statements, ID, and any other important financial documentation you plan on having the lender take in to consideration. 

Having those documents and information in hand will make the process much smoother.  Just know the loan officer will gather the information and make a determination as long as there are no issues.  Some will even go as far as verifying your income if there is something in question.  However most lenders will get it done the same day.  

Keep in mind the pre-approval is different than a pre-qualification.  Pre-qualification generally involves no verification so it is usually instantaneous.  Pre-approval usually means there is a form of verification, which makes it take longer to do but has so much more meaning behind it.  A seller is going to take a person who is pre-approved much more serious than one who is just pre-qualified.

With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate.  I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

5 Things You Need To Get Pre-Approved For A Mortgage

5 Things You Need To Get Pre-Approved For A Mortgage

Applying for a mortgage is pretty easy but what do you need to apply?  I will discuss the basic five items you generally need to apply for a loan.

  1. Proof Of Income - You will need to prove your income to the lender, which can be done by providing bank statements, pay check stubs, and tax returns.  If you have other forms of non traditional income like a side business, alimony, child support or other misc. incomes you will want to have documentation of that income available.
  2. Proof Of Assets - 401K statements, bank statements, IRA’s, investments and other similar statements.
  3. Good Credit - The lender will pull your credit and review your credit report.  You can get a free copy of your credit report by going to this website.
  4. Employment Verification - Just realize you don’t have to do much other than give your employer’s information, the rest is handled by the lender.  
  5. ID - Have your ID ready, including your social security card as well.  Make sure your identification is up to date and not expired.

Those are the five things you will generally need to get pre-approved.  Have those items ready and by your side whenever you are ready to get pre-approved for a mortgage.  I hope you found this information usual and of value.

With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate.  I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

Interest Rates In Perspective

Interest Rates In Perspective

Mortgage interest rates continue to go up and for many buyers this worries them but I wanted to take a moment to put mortgage interest rates in perspective.  Rates are important and yes an increase in a rate can make it more expensive to borrow money.  However we are still seeing low rates despite the increases when compared to the last couple of decades.

Currently as of June 2018 a mortgage interest rates are hovering around the high 4.75% range and up.  Remember rates change several times even in one day and the terms affect your rate.  Someone putting more money down and financing for 10 years could have a lower rate than someone putting 3% down over 30 years.  Terms matter but for the sake of keeping all things equal we will focus on minimum down payments and a 30 year mortgage.

If we look back just five to eight years we will see rates have been in a fantasy land.  The rates hit all time lows in the three percent range which is behind ridiculous when you take a step back.  With that kind of rate you are not far from borrowing money for free.

September 11, 2001 changed our nation and it had a negative affect on our economy.  As  a result rates were lowered to get our economy up and going again which lasted for twelve plus years.  The second major issue was the recession in the 2008 time period and several years afterward which also kept the rates low.  Since then the economy has gained strength and as a result you are starting to see those rates increase.

But let’s look at the early 2000’s, you were seeing rates in the six and seven percent range which was normal if not very good.  After September 11 is when you first start this plunge in interest rates.  The nineties were strong economic times for our country and our rates reflected that.  It wasn’t uncommon to see seven percent and up be a standard rate.  

How about the eighties?  This decade had its fair share of financial hits which are reflected by the fluctuation of rates at that time.  It is in the eighties that you saw double digit interest rates as high as eighteen percent!  How would that fly in today’s market, trying to buy a home with that type of interest rate.

I like to look back at history and remind ourselves of how lucky we really are to have such low rates.  Remember we didn’t even discuss the down payment requirements, those too are really low.  In the past a minimum of 20% or more of a down payment was not out of the ordinary.  So as you see the rates increase be sure to keep it all in perspective, it has been much worse and we are not even close to those times.  We are still living in a mortgage interest rate fantasyland in my opinion.

With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate.  I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

Would You Pay Over Appraised Value?

With increasing demand and lower inventory I continue to see multiple offer situations which inevitably leads to the concern of paying over appraised value.  Would you do it?  Should you do it?

Prices are on the way up on a record pace and driving those prices are buyers willing to pay top dollar for real estate.  Some buyers will go as far as giving the seller asking price, above asking price and even above appraised value.  This is becoming all to common, but would you do this?

I come across this issue all the time and this is the way I like to present it to my clients.  Every client is different so there is not a single solution answer.  The biggest factor to determine if you would do this is your the buyer.  Can you do this?  Do you have the funds to pay the difference between the appraised value and proposed sales price if the lender won’t pay it?

These answers are different for each buyer, especially if they are an investor or going to be using the home as their primary residence.  For investors they are more about the figures, getting a good deal and maybe getting a property below market.  Also what is their ROI?  (Return on investment)  Usually paying over appraised value may not always make sense to them, keep in mind they tend to be less emotionally tied to the property.

On the other hand a person who will actually live at the property may have a different mindset.  They are willing to pay more since they will enjoy it for many years to come.  Maybe they are in a time crunch and have to move.  Or there are other factors like schools, location, etc… that make it worth it to that individual to pay the additional funds.

Every scenario is different but you have to evaluate where you stand, can you do it and also be sure to draw a line in the sand as well.  Set a limit because the last thing you want to do is have regrets after the sale.

With the heart of a teacher I strive to educate my clients so they can be better informed.  I strongly believe an informed consumer makes better decisions and are less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

How Rising Interest Rates Affect You | Luis Cuevas Realtor® | RE/MAX Cross Country

Rising interest rates are becoming a reality but how do the rise in interest rates affect you if you are buying a home?  The reality is the economy is strong, unemployment is low and consumer confidence in their jobs is high, which equals a strong buyer demand for housing and mortgages.  Add the fact interest rates have been at historical lows for several years now and you can only expect to see rates begin to rise.

So what does that actually mean to you when you are thinking about purchasing a home?  Lets start with the basics, what are interest rates?  Interest rates are essentially the cost to borrow money.  The higher the rate the more expensive it is to borrow money.  When things are more expensive, in this case money to buy a home, then you can afford less.

Higher interest rates equal higher cost to borrow funds which ends up affecting the amount you can borrow.  For those consumers who may be maxed out at borrowing a certain amount, in this example lets say $300,000.  If the rates go up the amount the person could borrow would go down, lets say $290,000.

The higher interest rates caused the expense of borrowing to be lower which means a higher payment, however in order to stay under a certain payment the amount borrowed had to be adjusted downward.  This lower amount borrowed equals a lower sales price a consumer can qualify for.

Expect interest rates to continue to rise as the economy continues to be strong.  I just don’t see rates going down at all.  So if you have been thinking about buying a home just realize now may be the time to buy while rates continue to be low.

With the heart of a teacher I strive to educate my clients so they can be better informed.  I strongly believe an informed consumer makes better decisions and are less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

How To Get Started Buying A Home

Many people are interested in purchasing a home but don’t know how to get started.  Who do you call?  Where do you go?  Online?  In person?  

When you are ready to move forward with buying a home your first step should be to either contact a loan officer or real estate agent.  Let’s start with a loan officer, the reason you would want to meet them is to get qualified.  When meeting with a loan officer they will either get you approved or denied for a home loan.

If you are approved they will outline the details such as the loan amount you qualify for, closing cost, down payment requirements, terms and other important details.  You will also receive a pre-approval letter stating you are approved, it is this letter that you will need to start looking at homes.

What if you are denied, what should you do or expect?  The reality is many people get denied and that is perfectly okay.  The loan officer will give you an evaluation as well as a plan on what to do to be able to qualify in the future.  Figure out that plan and execute it, this will insure you are headed in the right direction to be able to qualify in the future.

Next it is a good idea to meet with a Realtor®, I suggest this for several reasons.  Regardless if you are mortgage approved or not it is a good idea to know the process of actually searching for a home, making an offer but more importantly learning the market.  I like to show buyers what the market is doing in the price point and area they are interested in.  This gives buyers a realistic idea and expectation of the market so they are clear on what to expect.

The key to starting your process is to be prepared.  Be ready to apply for a mortgage, learn what the market is like and what it will take to be a successful buyer.  Being prepared is key in my opinion and leads to a better buying experience.

With the heart of a teacher I strive to educate my clients so they can be better informed.  I strongly believe an informed consumer makes better decisions and are less likely to be taken advantage of.

Have questions about this or other topics, don not hesitate to contact me.

Don’t forget to “LIKE” this video and be sure to Subscribe to my YouTube Channel as well.

Luis Cuevas, Realtor®

RE/MAX Cross Country

1990 Justin Road

Highland Village, Texas 75077

(214) 783-0535

Luis@MakeNorthTexasHome.com

Check out my website for more helpful tips:

http://MakeNorthTexasHome.com

Subscribe to my YouTube Channel:

http://Youtube.com/MakeNorthTexasHome

Follow me on Facebook:

http://Facebook.com/MakeNorthTexasHome

How To Choose A Mortgage Lender

How To Choose A Mortgage Lender

Are all mortgage lenders created equal?  What else besides the interest rate and fees should you be looking for?

Mortgage lenders play a very important part in the real estate transaction, they make it happen!  So what are some of the important things to keep in mind when choosing a mortgage lender to work with?

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