PghRealtorMom Tip of the Month:
Tuesday, January 28, 2014
Congratulations, you’re engaged… married… relocating… moving up or down-sizing! Wherever your life has taken you, if you are reading this, you may be contemplating buying or selling your home. Before you begin your home search, it's important to understand your purchasing power. How much home can you afford? Do you need to sell before you buy? What is your monthly budget?
“Few experiences are more frustrating than falling in love with a home that’s for sale and then discovering you can’t afford to buy it… a consultation with a mortgage lender is a crucial step in the home-buying process because you need to understand your purchasing power before you begin to look at homes.”
Step 3 - A Pre-Qualification* Letter will state the amount a lender believes you can borrow based on your income and your FICO credit score. This letter will give you peace of mind when shopping for a home and when submitted with your offer to purchase your new home, will assure the seller that you are a qualified buyer. If you are selling, insist that your Realtor gathers this for you before accepting any offer.
Another very important step is to review a Cost Estimate with your Realtor, which provides your estimated closing costs, mortgage, home-owner’s insurance and real estate tax payments calculated on your offer for a specific home. Be sure you are comfortable with the numbers before you make the commitment to purchase the home by signing the Agreement of Sale. You may be eligible for various programs or loan products that would make your payments more favorable.
10-Step Guide to Buying a House: http://www.realtor.com/advice/10-step-guide-to-buying-a-house/
Definitions:
Closing Costs: fees for final property transfer not included in the price of the property. Typical closing costs include charges for the mortgage loan such as origination fees, discount points, appraisal fee, survey, title insurance, legal fees, real estate professional fees, prepayment of taxes and insurance, and real estate transfer taxes. A common estimate of a Buyer's closing costs is 2 to 4 percent of the purchase price of the home. A common estimate for Seller's closing costs is 3 to 9 percent.
FICO Score: FICO is an abbreviation for Fair Isaac Corporation and refers to a person's credit score based on credit history. Lenders and credit card companies use the number to decide if the person is likely to pay his or her bills. A credit score is evaluated using information from the three major credit bureaus and is usually between 300 and 850.
Offer: indication by a potential buyer of a willingness to purchase a home at a specific price; generally put forth in writing.
Pre-Qualification* vs. Pre-Approval
Pre-Qualification: a lender informally determines the maximum amount an individual is eligible to borrow. This is not a guaranty of a loan.
Pre-Approval: a lender commits to lend to a potential borrower a fixed loan amount based on a completed loan application, credit reports, debt, savings and has been reviewed by an underwriter. The commitment remains as long as the borrower still meets the qualification requirements at the time of purchase. This does not guaranty a loan until the property has passed inspections underwriting guidelines.
More Definitions at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/buying/glossary
PghRealtorMom Needs:
(If your home fits any of the below descriptions and you are thinking of selling, please contact me immediately.)
· Mid-Century Modern design surrounded by private green space or with an attractive view / any area ok
· Victorian-Style 3+ bedroom with potential for 1st floor master / Fox Chapel Area School District
· Maintenance-Free 3+ bedroom in secure “lock & leave” community with private outdoor space / North Hills area
· Ranch 3+ bedroom fixer-upper with basement on large, private lot / North Hills area
· 3+ bedroom, move-in ready with open kitchen/family area, finished basement and large 2+ garage / Plum, Kiski or Franklin Regional SD
· Maintenance-Free 4+ bedroom, single-family with yard / Fox Chapel area
· Large move-in ready, 4+ bedroom with finished basement in secure neighborhood in Pine Richland or Hampton School Districts
PghRealtorMom Current Mortgage Rates:
| 30 Year Fixed | 15 Year Fixed | 5 Year ARM | FHA |
01/24/2014 | 4.375% | 3.50% |
| 3.75% |
01/28/2014 | 4.375% | 3.375% | 2.99% |
|
*rates deemed to be reliable, but must be verified.
Know your home financing options. There are lending limits for some loan products. It is important to speak with a mortgage professional to fully understand what mortgage program is best for you.
Fixed-Rate Mortgage: a mortgage with payments that remain the same throughout the life of the loan because the interest rate and other terms are fixed and do not change.
Adjustable-Rate Mortgage (ARM): a mortgage loan subject to changes in interest rates; when rates change, ARM monthly payments increase or decrease at intervals determined by the lender; the change in monthly payment amount, however, is usually subject to a cap.
Conventional Loan: a loan secured by investors, but neither insured by the FHA nor guaranteed by VA. Both fixed rate and adjustable rate loans are available with conventional financing.
Federal Housing Administration (FHA) Financing: is a government, mortgage insurance backed loan which is provided by a FHA-approved lender; this product enables lenders to make loans to borrowers who may not qualify for conventional mortgages.
203(k) Financing: this FHA mortgage insurance program enables homebuyers to finance both the purchase of a house and the cost of its rehabilitation through a single mortgage loan.
VA Financing: a loan guaranteed by the Veterans Administration (VA) to a qualified veteran and made by an authorized lender on an approved property. Fixed and adjustable rates are available with VA loans. The VA charges borrowers a funding fee.
Who is PghRealtorMom?
I am a hard-working Pittsburgh Mom with a background deeply rooted in Real Estate. I began my career in real estate finance, moving into my current role as I worked with a real estate developer then entered exclusively into the sales aspect of the business in the spring of 2010. Since then, I have formed strategic relationships with agents around the region to match qualified buyers to the right homes.
Find Me Online at:
LinkedIn: www.linkedin.com/pub/lisa-rutkowski/85/b35/619
Facebook: www.facebook.com/pghrealtormom
Twitter: www.twitter.com/pghrealtormom
Pinterest: www.pinterest.com/pghrealtormom
Instagram: www.instagram.com/pghrealtormom
5-Star Zillow Rating: http://www.zillow.com/profile/Lisa-Rutkowski/
I am proud to be listed in The Pittsburgh Mom-Owned Business Directory; a collective effort to support Pittsburgh’s working mothers: http://pittsburghmommyblog.com/pittsburgh-mom-owned-business-directory/wpbdp_category/real-estate/
Why Choose PghRealtorMom For Your Residential Real Estate Needs in Pittsburgh?
Choosing a real estate agent who has the tools, skills and experience to make your dreams come true can be as challenging as the home buying/selling process itself. Let me make it simple for you! I am a Full-Time, Licensed Residential Realtor with Howard Hanna's award winning Fox Chapel Office, a member of the National Association of Realtors® and have earned a strong, professional reputation that you can trust. It will be my pleasure to answer questions throughout this process and provide information so that you have realistic expectations about the future sale of your property.
In addition to yard signs, newspaper ads, details/photos on the MLS and televising your house, there are thousands of ways to advertise your home. With a combination of traditional and modern sales tools, I will work hard to be sure that your listing reaches the global and regional network of real estate agents and consumers to find the right, qualified-buyer looking for a home like yours!
Good communication is the cornerstone of any successful relationship. You can count on me to provide you with the information you need on a schedule and manner that suits you best. You will also have access to statistical Listing Activity Reports providing every opportunity to track my success in finding your buyer.
For professional, courteous "concierge-style" service, customized to fit your lifestyle and needs…
| Please contact me with any questions or to schedule an appointment. Lisa Rutkowski, Realtor (412) 491-2453, Cell | (412) 963-6301, x218, Office | (412) 252-2945, Fax lisarutkowski@howardhanna.com, Email www.PghRealtorMom.com, Website |
