3 Things to Avoid at All Costs During the Home Purchase Process

January 29, 2021 by Cindy Steelman

The home buying process can be complicated, as it’s composed of a variety of factors that need to be analyzed carefully. This includes the mortgage, most commonly referred to as a home loan. Various mortgage companies are across California, all ready to provide you with services. Before saying “yes” to any of them, however, you must first understand the process.

Understanding the process allows you to enter a contract that is better for you and your resources, and it also helps you assess if a broker can cater to your needs and preferences. Learning what happens during the sales process and closing, and any risks and pitfalls that you may unknowingly wander in, will help you a lot.

Things to Avoid During Home Purchase Process

For these reasons, preparation is key. It’s the blueprint for your dream home. To help you fully plan, we’ve curated a list of some things that could potentially harm your progress. Take a look at these crucial elements to avoid at all costs:

Shopping around without a pre-approval. If you begin looking around for homes without a pre-approval, you’ll likely either end up with a less than desirable home or perhaps go over budget. The pre-approval process has been designed to help homebuyers set a budget, allowing them to adjust expectations accordingly. Falling in love with a property beyond your means is always a trap and can potentially ruin your financial security in the long run. With a pre-approved mortgage, you know exactly what to expect and gauge, ultimately helping you narrow down the path towards the right home.
Engaging in big purchases. Making big purchases, such as a new car, can drastically affect your budget means. It’s not always easy to shell out huge sums of money for investments and doing so for a car and other high ticket items can lead to undesirable consequences. You can end up accumulating more debts possibly causing you to get rejected for your mortgage. Big purchases can also affect your overall credit score and rating, leading to negative consequences. You risk your mortgage application, either reducing your chances of getting a low-interest rate, or perhaps losing the option altogether. Golden tip: If it’s truly necessary to make a large purchase before your home purchase, make sure to plan for it accordingly. You’ll want to have full control over it, particularly since you need to think of long-term expenses.
Refusing to enlist the help of experts. While it can be incredibly tempting to do so, never attempt to do everything by yourself. You may feel like it’s worth a little less to avoid any form of assistance, but this will only cost you more in the long run. In the chaos of it all, you can easily miss crucial documents, fail to respond to requests, and so much more. Such mistakes can be costly in the long run, potentially leading to you miss out on your dream home. When it comes to the real estate market, time is always of the essence. With the help of professionals, you’ll be able to enjoy a smooth and convenient process—every step of the way.

Work with the Best Mortgage Lender in Roseville

The home buying process can be complicated, but with ample research and preparation, you’ll be able to properly protect yourself against potential pitfalls. This includes financial mistakes like big purchases, failing to get pre-approved, and of course, believing you don’t need the help of experts.

To make sure that you enjoy a smooth transaction, Steelman Mortgages is ready to help. We offer you the best possible home loans in Roseville, guaranteed to bring you one step closer to your dreams. Contact us today at (916) 847-7263 to learn more.

3 Events that Affect Mortgage Interest Rates

January 20, 2021 by Cindy Steelman

Home Buying Tips in Roseville California

Given the sky-high prices of property nowadays, it’s nearly impossible to buy one without taking a home loan in Roseville. However, there are many aspects you’ll need to consider when applying for a mortgage, especially the interest rate. Although it may be a small percentage, it can often spell the difference between an affordable loan you’ll repay completely in the promised timeframe or a costly loan that almost bankrupts you. It also dictates whether you can buy a house at all. With so many details depending on interest rates, you’ll want to understand what affects this figure.

Mortgage Rates in Roseville California

Factors like your credit history and your down payment contribute to how much your interest rate will be, but other hidden elements influence it to a significant degree.

Here are three events that affect mortgage interest rates:

Presidential Elections. Uncertainty causes the stock market to fluctuate, which can affect mortgage interest rates. It also tends to follow presidential elections, as a new president from a different party can bring many changes to the economy. While elections occur every four years, the possibility of change is enough to make the stock market volatile. As such, there tends to be a drop in the stock market. Investors then start to trade in stocks for U.S. treasuries instead, causing mortgage rates to fall. Generally speaking, that’s a good time to apply for a mortgage if you’re gunning for the lowest interest rates possible, but it’s best to consult with a mortgage broker in Roseville first. When the economy recovers and does well, mortgage rates tend to increase since there are less insecurity and more confidence from investors and the general public.
Pandemics. As you have witnessed during this time, global pandemics have upset hundreds of economies and caused thousands of businesses to shutter permanently. Since uncertainty plays a crucial role in determining interest rates, it comes as no surprise that pandemics—which bring plenty of insecurity and instability to the world—also affect them. As transmission rates rise and outbreaks continue to occur in hotspots, people will feel scared and uncertain, causing rate drops. Until the situation improves and the general public has easy access to a widely available vaccine, mortgage rates are expected to stay low.
Catastrophes and Natural Disasters. When natural disasters strike, whether it’s a ravaging wildfire, a sudden earthquake, or a severe hurricane, it wreaks unspeakable damage to cities and entire states. As people spend their resources to rebuild their communities and recover their losses, it inadvertently creates an economic burden that impacts employment and many other industries. It also affects the area’s local businesses and GDP, influencing mortgage rates. A natural disaster can also interrupt normal mortgage processes, affect property sales, and disrupt the construction industry. Suppliers may no longer be able to transport construction materials. People will no longer afford new homes because of the catastrophe, and lenders may even have had to freeze loans because of the incurred damage. Any delay in funding will cost these mortgage brokers, who will be busy confirming the status of funded loans, which they cannot sell in the meantime. With so much uncertainty—which is a recurring theme—and destruction, mortgage rates are sure to drop.

Buying a Home or Refinancing with Steelman Mortgages

Uncertainty and insecurity are common factors that cause mortgage rates to decline or increase, which can be found in these notable events. If you’re hoping to get the lowest possible rates, applying for a mortgage when any of these three events occur may give you your best chance. However, it’s always best to work with a mortgage broker to make sure you’re aware of the loan’s terms and conditions! Steelman Mortgages is a mortgage broker in Roseville that makes buying a home or refinancing your mortgage a smooth, simple, and enjoyable process. We can connect you with conventional loans, FHA loans, VA loans, jumbo loans, first time home buyer loans, and many more. Find out how we can help you by contacting us at (916) 847-7263!

Important Things You Should Know About Mortgage Preapproval

January 14, 2021 by Cindy Steelman

One of the biggest purchases anyone can make is a house that will turn into a home. Chances are, however, that you will need to finance the investment with a home loan. A big advantage when hunting for a house can come in the form of mortgage preapproval; in some ways, it is practically a rite of passage that launches the long process of property purchase.

Here is what you need to know about mortgage preapprovals:

What is a Mortgage Preapproval?

A mortgage preapproval is a document or letter that declares exactly how much a lender is willing to lend you so you can pay for the house you are buying. It is a crucial step in the process of buying a home.

Whether you’re a first-time home buyer in Roseville or you have done this before, the preapproval process will be the first piece of the puzzle. Knowing how much you can afford allows you to look for properties within that price range rather than waste time with homes that are out of budget.

Once you have narrowed the list of potential properties down to a few top contenders, it will be time to extend offers. Sellers will be able to see that you have already been vetted by a lender and will thus be able to pay them for the property. That estimate can be used by real estate agents and sellers alike, in order to figure out whether or not you are indeed a serious contender for a house.

How Do Lenders Determine an Amount?

The foundation of preapproval lies directly within your financial situation. Lenders will look into your credit with a hard inquiry in order to determine just how worthy you are of credit. They will request your bank statements and retirement statements to assess how much you have in your bank account. They will request your paystubs and your federal tax returns to check on your income. These 3 items are the main requirements of getting a preapproval letter.

With the information provided, lenders will then be able to calculate a rather fair estimate as to just how much you can afford in terms of buying a house. They will then have the option of preapproving you for a loan amount based on your situation.

Being preapproved by a lender means you have been pre-underwritten and can go shopping for a property. Of course, if your financial situation drastically changes during your search for a home to buy, there is a possibility that your preapproval will get affected.

What are the Benefits of Being Preapproved?

A key benefit of preapproval is that sellers as well as real estate agents will have a clear sign that you are very serious about making a purchase. Moreover, they will be able to tell that you can actually afford the house you are trying to purchase. When you have Interest in a house that moves and you want to make an offer, the pre-approval letter makes your offer stronger than without it. The seller and the realtor will want to make sure that you can actually pay for it and follow through.

When you are able to get a clearer picture of what you can qualify for, what your monthly payment will be and what cash to close will be required; this will help you to decide what price range you can qualify for and want to stay within.

Not having a preapproval could mean that someone who has a lender and a preapproval will be favored over you.

Get Preapproved in Roseville with Steelman Mortgages

Preapproval plays a vital role in being able to buy your new house. Submit the necessary documents and go through the credit check, then go ahead and start your home buying journey! For best results, it is likely best to seek professional guidance on mortgages.

Looking for a mortgage lender in Roseville? Contact Steelman Mortgages at (916) 847-7263! We can’t wait to help you whether you’re a first-time home buyer or someone looking into reverse mortgage and other similar needs.