September 17, 2021

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Mortgage News

Here’s Barbara Corcoran’s Best Advice for Home Buyers

Shark tank Personality Barbara Corcoran is often celebrated as a shrewd investor. But if she knows one thing well, it’s real estate. As the founder of the well-known real estate company Corcoran Group, Corcoran is an excellent contact for real estate purchase advice. Here are three of their best tips.

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1. Know your credit history

What is your credit-worthiness have to do with buying a house? Much – the higher your score, the more likely it is that you will get a competitive rate for a. get hold of mortgage.

If your score isn’t good, it might be worth putting your buying plans on hold and working on improving them. First, pay all incoming invoices on time. Next, if possible, pay off any credit card debt – using less of your available balance can improve your score. Finally, check your credit report for errors as certain mistakes (like past due debts that aren’t yours) can pull your score down.

2. Do not spend more than 30% of your income on housing

Corcoran and other experts say it’s good to keep your housing costs at or below 30% of your net wage. That way, you won’t be overwhelmed and less likely to default on your bills.

In this context, “housing costs” is not only to be understood as a mortgage payment. Rather, this number should contain: Everyone predictable monthly housing costs for which you are responsible.

This includes:

  • Property taxes
  • Homeowner insurance
  • HOA fees (if you are buying a home that is part of a home owners association)
  • Private mortgage insurance (which you pay when you take out a conventional mortgage and pay less than 20% down payment on your home)

If you’re not sure what to afford, use a Mortgage calculator to run the numbers before looking at the houses. Enter different down payment and house prices to get a good feel for what type of property you can swing by.

3. Don’t forget the closing costs

It costs money to get a mortgage. You pay appraisal fees, enrollment fees (to make your mortgage public) and other fees that are collectively called. are known Closing costs. Generally, the closing costs are 2 to 5% of your loan amount. If you take out a $ 300,000 mortgage, you can pay $ 6,000 to $ 15,000 to complete this loan.

Most lenders allow you to add your closing costs to your mortgage and pay it off over time, but that will add to your monthly payments. You may want to bring a check for these fees with your graduation when you can swing it.

Buying a home is a big step that needs to be approached strategically. So, follow these expert tips from Barbara Corcoran and they can help steer you in the right direction.