Navy Fellas Realty Group

Real Estate, Residential sales and purchase

On Time, Every Time: How Being Late on Monthly Payments Can Affect Your Mortgage

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On Time, Every Time: How Being Late on Monthly Payments Can Affect Your MortgageAre you the type of person that struggles with remembering to pay their bills on time? You’re not alone. People across the country regularly submit late monthly payments, inflicting terrible damage to their credit. Let’s take a quick look at how paying your loan or other monthly payments late can have a negative impact on your mortgage.

Your Credit Score Is At Risk

As you already know, almost all banks, credit cards, mortgage companies and other lenders rely on your credit score to help assess the risk of lending money to you. Paying any of your payments late – even something as small as your mobile phone bill or a department store credit card – can result in negative marks showing up on your credit report. If you are late enough times or fail to repay the late payment in full, then your score will start to drop.

Refinancing Can Be Affected

If you already have a mortgage, then a lower credit score can be a problem when you try to refinance. The process of refinancing involves taking out a new mortgage, in which your lender will reassess your risk using your credit score as one of the indicators. If you have been making late payments, you might end up having to settle for a higher interest rate or you may even be declined for the new mortgage.

Making A Late Payment? Contact Your Lender

If you are caught in a bind and have to make a late payment, it is best to get a call in to your lender as soon as possible. First, there may be a grace period in which you can be a few days late without any penalty. If that little bit of breathing room is all you need to get caught up, you’re set. If not, you can let them know your circumstances and discuss what options you have.

It is essential to pay your monthly payments on time, even if it means making some small sacrifices in other areas. The better your credit score looks, the more opportunities you will have to make positive financial moves in the future. To learn more about monthly mortgage payments or to take out a mortgage on a new home, contact us today. Our team of mortgage professionals is here to help you find a mortgage to buy the home of your dreams.

What Costs Can You Expect When Selling Your Home? Let’s Take a Look

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What Costs Can You Expect When Selling Your Home? Let's Take a LookFor many people, putting their home up for sale is an exciting time. With real estate on the rise, there are plenty of opportunities to see financial gains. Unfortunately, even if you’re selling your home, there are still going to be costs involved before ownership is transferred. If you want to be prepared for what to expect, here are some costs to watch out for.

Real Estate Agent Fees

As with buying a home, there will be costs involved in selling your home with an agent who will take a percentage out of the total sale of your home. Fortunately, while this will cost money, utilizing a real estate agent will probably garner you more money than you would have been able to get by putting your home on the market yourself. If you do want a better deal, it may be worth talking to your agent and seeing if they’re willing to negotiate on their percentage.

Agreed-Upon Closing Costs

It’s not uncommon nowadays for homebuyers to request their closing costs be paid by the seller in order to secure a deal, but it’s worth understanding what these fees may consist of. While there may be fees for the home appraisal, property transfer, and title insurance, there may also be maintenance costs you’ll have to take on following the home inspection. As a result, it can be important to do any home touch-ups before you’ve set a date for the open house as these can lower the offers on your home.

Moving Costs

Even if you have a big truck and a lot of heavy lifters in your family, there’s a good chance that you’re still going to require a moving company to take care of many of your items. You may be able to minimize these costs by moving in pieces and leaving the heavier items for the movers, but if your home sale is closing quickly, this work might best be left to the professionals. It will be worth getting quotes from a handful of trusted local movers to see who comes recommended at a reasonable price.

It’s easy to get caught up in the concept of selling your home, but even along with selling come many costs you’ll want to be aware of. If you’re preparing to put your home on the market, contact your local real estate professional for more information.

Four Mistakes to Avoid When Making an Offer for Your Dream Home

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Four Mistakes to Avoid When Making an Offer for Your Dream HomeYou’ve scoured the new home listings, been to all the open houses and have finally found the home of your dreams. It is now time to draft an offer and begin the negotiation process. Below we’ll share four mistakes that you will want to avoid when making an offer on your dream home.

Mistake #1 – Not Working With A Professional

The first mistake that home buyers make is trying to buy a home without using the services of a real estate professional. Buying a home is a significant financial transaction and one where the seller and their agent are working hard to ensure they come out ahead. Having experienced representation on your side of the table ensures that you won’t be taken advantage of.

Mistake #2 – Skipping The Home Inspection

The second mistake – and one that is more common than you think – is skipping the home inspection. There are countless instances of home buyers thinking that the house looks great on the outside without realizing that there are issues with the roof, the foundation, the plumbing, inside the walls or some other area that’s tough to see. Having the house professionally inspected before tabling an offer ensures that issues are fixed up before the transaction is complete. Alternately, if you’re willing to move ahead regardless, you can ask for the price to be reduced as compensation.

Mistake #3 – Not Being Pre-Approved For Financing

The third mistake in our list is making an offer on a home without being pre-approved for the amount of mortgage financing you will need. Regardless of how good your credit is, the mortgage application process is one that can present challenges. Also, many home sellers will require evidence of financing pre-approval before accepting an offer, so it’s best to come prepared.

Mistake #4 – Taking On Other Debts

Once you’ve decided on the home you want to purchase, you will want to avoid taking on any other debts which can affect your credit score. Don’t buy a car, open any new credit cards or do anything else which will show up on your credit report. Once you are pre-approved for your mortgage, you’ll want to keep your credit as spotless as possible to ensure that nothing goes wrong.

If you’re prepared and clear-headed, the offer process will go smoothly and you’ll soon be moving into your dream home. When you’re ready to explore local real estate options, contact your trusted real estate professional.

Selling Your Home? Here’s 3 Reasons Why You Won’t Want to Handle the Sale Yourself

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Selling Your Home? Here's 3 Reasons Why You Won't Want to Handle the Sale YourselfAre you thinking about selling your home? If so, you may be weighing the pros and cons of working with a professional real estate agent. Let’s take a quick look at three great reasons why you won’t want to handle the sale yourself.

You Won’t Save As Much As You Think

Let’s start with the most common and obvious reason that homeowners try to handle their home sale: the cost. It’s true that selling your home using the services of a real estate professional isn’t going to be free. Depending on the value of your home, their commission might range from two to four or five percent of the final sale price. However, the entire reason you’re paying commission is that you’re contracting with a professional to do a job. Your real estate agent is there to both share their experience and handle all of the tasks and responsibilities with your sale. Without them, you’ll be responsible for everything from creating an online listing for your property to figuring out how to host an open house.

So while you may believe you are saving money by not paying commission, you’re going to be burning a lot of your time. If you’re already busy in your career or as a parent, that may end up costing you more in the long run.

A Professional And Objective Eye Is A Huge Plus

Objectivity is another great reason to work with a real estate professional when selling your home. If you had to answer right now, would you say your home is better than your neighbor’s? Better than all the houses on your street, even? The majority of home sellers do believe their home is “above average,” which is of course statistically impossible.

When someone has been the one painting, renovating and putting love into her home for so long, it is no surprise that she becomes attached to it. A real estate agent’s objective eye can offer a nice dose of reality and help to keep the sale moving.

Many Buyers Will Automatically Avoid Owner Sales

Are you a professional salesperson? If not, do you have experience dealing with the public? Selling your home is a significant financial transaction in which you’re going to have to meet with buyers. Moreover, from their perspective, it’s likely that your home is not the only one they’re viewing. Many homebuyers will prefer to work with a seller agent as they know the process will be smooth and professional rather than trying to negotiate directly with an owner.

These are just a few of the reasons you won’t want to go it alone when you sell your home. For more information about local home sales, contact your local real estate professional today.

Ready to Buy Your First Home? Don’t Forget to Check Your Credit Score – Here’s Why

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Ready to Buy Your First Home? Don't Forget to Check Your Credit Score – Here's WhyWhether you’re just out of college, recently married or simply haven’t jumped into the market yet, buying your first home is an exciting prospect. It can also be an expensive one, which is why most people will take out a mortgage to help finance the cost.

If you are planning on engaging with a mortgage lender, you’ll need to have your finances in order. In today’s post, we’ll share a few key reasons why you’ll want to check your credit score well in advance of buying your first home.

Your Credit Score Is A Signal For Lenders

As you know, mortgage lenders have a responsibility to lend to those individuals and families who are at a low risk of default. So when a mortgage lender starts to dig into your financial background, they are looking at your credit history and credit score to help them assess that risk.

Note that having a low score doesn’t necessarily mean you have bad credit. If you’re still in your 20s and have only had a credit card, your score might be low even though you are fully capable of managing a mortgage.

Your Score Impacts Your Mortgage Interest Rate

As mentioned above, your credit score helps to signify your risk. If your credit score is in a lower range, perhaps a 640 or 660, you’re presenting a greater risk than someone with a score of 760 or 800. Because of this, the interest rate that you pay on your mortgage will in part be determined by your credit score. Those individuals who present a higher risk pay a higher rate to compensate. And vice versa, if your credit is spotless you can expect to pay a lower interest rate.

You’ll Need Time To Challenge Any Issues

Finally, you’ll need to give yourself some lead time to challenge any irregularities with your credit report. The credit reporting agencies aren’t perfect and they do make mistakes. There may be some old, retired credit card or other debt sitting on your report which is holding the score down. Even worse, there may be some incorrect delinquency or other error which ends up as a big red flag for potential mortgage lenders.

As you can see, it’s worth spending the time to check your credit score. You get to check it for free once per year, so take advantage of the opportunity. And when you’re ready to discuss buying your first home, contact your trusted mortgage professional. We’ll share how to navigate the credit score and mortgage process so you can land the home of your dreams.

The Five Most Common Overlooked Expenses When Selling a House

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The Five Most Common Overlooked Expenses When Selling a HouseMost homeowners are so enthusiastic about putting their home on the market and getting the price they’re hoping for that the expenses involved in selling a home are forgotten. However, it’s often said that one has to spend money to make money, and selling a home is no exception! If you’re wondering what kinds of overlooked expenses will cut into your home sale, here are some costs to consider.

Minor Renovations

There are always a few things to fix-up when it comes time to sell your home, but by establishing what will best increase your home’s value, you can make it a good investment. Instead of going it blind, create a renovation budget so any cost you incur will pay for itself.

Staging Your Home

It’s possible you may be able to get away with minimal costs when it comes to home staging, but adding a few small details can improve the overall impression of your home. Instead of spending an abundance on dressing up your home, put your time into cleaning and de-cluttering for ample effect.

Closing Costs

It goes without saying that closing costs can add up to a lot of money at the end of the day, but many people forget they’re part of the transaction. Closing costs can include anything from transfer tax to title insurance to escrow fees so it may be worth talking to your agent to see if they can give you a deal.

Real Estate Commission

It’s easy to forget, but using a real estate agent to sell your home will require you to pay a portion of your home’s sale to them. While you may be able to negotiate this percentage with your agent, it’s worth realizing that an agent will help you garner a higher price and will do a lot of the leg work for you.

The Moving Van

It might be too soon to think about, but if you have a lot of stuff and don’t want to take on the task yourself, you’ll need to hire a moving company to help you relocate. Instead of leaving this to the last minute, contact a few popular movers to get pricing, and don’t wait until the last minute to schedule your move. If you’re desperate, you’re likely to pay more.

Selling a home can be a financial boon, but there are many expenses that can come along with it. If you’re currently preparing to put your home on the market, contact your local real estate professional for more information.

Avoiding Becoming House Poor: A Path to Financial Security and Balance

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Avoiding Becoming House Poor: A Path to Financial Security and BalanceAs the housing market continues to evolve, it becomes increasingly crucial for aspiring homeowners to tread carefully and avoid falling into the trap of being house poor. The dream of owning a home should not come at the expense of financial stability and overall well-being. Here are some essential tips to steer clear of this precarious situation:

Setting a Sensible Budget:

Before even considering purchasing a house, it’s imperative to create a comprehensive budget that includes all your income, expenses, and financial goals. Be honest with yourself about what you can afford, considering not only the mortgage but also property taxes, insurance, utilities, and maintenance.

Prioritizing Emergency Savings:

Building a robust emergency fund should be a top priority. Life is unpredictable, and unexpected expenses can arise at any moment. Having a safety net of three to six months’ worth of living expenses can prevent you from becoming overwhelmed by financial burdens if an unforeseen situation occurs.

Saving for a Substantial Down Payment:

While it may be tempting to put down a smaller down payment to secure a house quickly, it’s wiser to save for a more substantial down payment. A larger down payment means borrowing less money and having lower mortgage payments, which can significantly reduce the risk of being house poor.

Consider All Costs:

Beyond the mortgage, homeownership involves additional expenses such as property taxes, insurance, utilities, and maintenance. Renters must consider renter’s insurance, utilities, and other costs.

Maintaining a Healthy Debt-to-Income Ratio:

Lenders often look at your debt-to-income ratio when considering your eligibility for a mortgage. Aim to keep this ratio as low as possible by paying off existing debts before taking on a mortgage.

Living Below Your Means:

It’s crucial to resist the temptation of purchasing the most expensive house you can qualify for. Instead, opt for a more affordable home that aligns with your budget and long-term financial objectives.

Anticipate Future Expenses:

Plan for the future and anticipate upcoming financial commitments such as career changes, education costs, and family planning. Being prepared for these events will ensure that your housing costs remain manageable even as your life circumstances change.

Shop Around for Mortgages or Rent:

If you’re in the market for a new home, don’t settle for the first mortgage offer you receive. Shop around and compare rates and terms from different lenders to secure the most favorable deal.

Avoid Making Big Financial Decisions:

Focus on stabilizing your housing situation first before taking on additional financial responsibilities.

Seek Professional Guidance:

If you’re uncertain about the process or worried about becoming house poor, consider seeking advice from a financial advisor or a reputable real estate professional..

Achieving the goal of homeownership or finding a suitable rental property should not come at the cost of your financial security and overall happiness. Remember, it’s not just about the house you live in; it’s about building a fulfilling life within your means.

The Impact of Your Employment History on Mortgage Approval

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The Impact of Your Employment History on Mortgage ApprovalWhen it comes to applying for a mortgage, lenders take various factors into account to determine your eligibility. One crucial aspect they consider is your employment history. Your employment history provides lenders with valuable insights into your financial stability, income consistency, and ability to repay the loan.

Lenders evaluate your income consistency to ensure that you have a reliable source of funds to cover your mortgage payments. They typically request pay stubs, W-2 forms, and tax returns to verify your income. If you have been in the same job or industry for a considerable period and have a consistent or increasing income, it strengthens your mortgage application. However, if you recently started a new job or have irregular income due to freelancing or self-employment, it may require additional documentation and thorough evaluation by the lender.

Self-Employment Considerations:

If you are self-employed, the mortgage approval process may be slightly different. Self-employed individuals often face more scrutiny as their income can be less predictable compared to those with traditional employment. Lenders typically review your business financial statements, tax returns, and bank statements to assess your income stability and the overall financial health of your business. Providing a history of consistent income, strong financial statements, and a healthy credit score can improve your chances of mortgage approval.

Employment Gaps:

Extended gaps in employment can be a concern for lenders, as they may question your ability to meet your financial obligations. However, not all gaps are viewed negatively. Lenders may be more understanding if you can provide a reasonable explanation for the gap, such as furthering your education, caring for a family member, or recovering from an illness. It’s crucial to provide supporting documentation and demonstrate how you managed your finances during the gap period.

Changing Industries:

Switching careers or industries can be seen as a risk by lenders, as it may imply a learning curve or potential income instability. However, this doesn’t mean that changing industries will automatically disqualify you from getting a mortgage. If you can demonstrate that the change has resulted in an increase in income, improved job prospects, or enhanced skill sets, it can work in your favor. Strong references from your previous and current employers can also help alleviate concerns about the industry switch.

By maintaining a stable employment record, providing proof of consistent income, and addressing any gaps or career changes with supporting documentation, you can strengthen your mortgage application and improve your chances of approval. Remember to consult with a mortgage professional who can guide you through the process and provide personalized advice based on your specific situation.

Six Key Reasons You’ll Want to Work With a Real Estate Agent When Pricing Your Home

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Six Key Reasons You'll Want to Work With a Real Estate Agent When Pricing Your HomeWhether you know a little bit about the market or you’ve sold a home before, you may be considering pricing your own home to avoid the assistance of a real estate agent. However, there are a number of benefits associated with consulting an agent when selling your home. Before making a final decision, consider the following tips.

They Know The Neighborhood

It’s great if you have familiarity with market prices, but knowing a neighborhood is key when it comes to determining price. The right agent will be able to help you arrive at a price that is good for your home and practical for the area you’re selling in.

Is The Market Hot?

The price may be right, but if the market has cooled off, you may have to make a compromise in order to sell it. Instead of trying to arrive at this on your own, an agent will be able to provide insights into the best strategy.

They’ve Sold In The Area

A local agent may have sold properties in your area recently and may be well aware of the price potential. With this added expertise, they can walk the line between your ideal price and what you can get.

Preparing A Plan B

An agent may agree to go with a higher selling pricing if you’re committed to it, but they will also help you make another plan if the price doesn’t work out. It’s disappointing to not get what you’re asking for, but it’s better to have a plan just in case.

Saving On Stress

It’s one thing to decide on the price of your home, but it’s quite another to deal with all the stress if it lingers on the market without an offer. If an agent assists you in determining your price, they’ll also be there to shoulder some of the stress.

When It Comes To Negotiating

The negotiation following a home offer is make-or-break for selling your home, so having an agent is a great benefit. While they won’t be able to make the decision for you, they can serve as a helpful guide in determining an appropriate counter offer.

Many homeowners want to embark on selling their home on their own, but a real estate agent can be very helpful in determining a purchase price and assisting with the negotiations. If you’re currently getting prepared to sell your home, contact one of our real estate professionals for more information.

How to Run a Quick Financial Health Check Before You Apply for a Mortgage

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How to Run a Quick Financial Health Check Before You Apply for a MortgageAre you planning on using a mortgage to help cover the cost of a new home? If so, you will want to prepare your finances and figure out how you will manage all those wallet-draining monthly expenses. Let’s take a look at how to run a quick financial health check to ensure you are ready to apply for a mortgage.

Update (Or Start) Your Monthly Budget

First, it is essential to get the basics out of the way. If you haven’t already, it’s time to start a monthly budget to keep track of your income and expenses. Once you have a mortgage, it will be important to prioritize your monthly payments so that you don’t end up falling behind.

Starting a budget is easy and can be done with mobile apps, software, a spreadsheet or a pen and paper. List all sources of income so that you know exactly how much cash you are working with. Then, list out every one of your expenses. It can be tough to remember them all, so consider using debit and credit card statements from the past few months as a reminder.

Get A Copy Of Your Credit Report

Next, you will want to get a copy of your credit report so you can see what potential mortgage lenders will see when assessing your financial history. This is a free service that you can request once per year, so be sure to take advantage. Note that you will want to use government-approved websites for requesting your credit report. Be wary of scams.

Do You Have A Down Payment?

A down payment is not required for every home purchase, but having one saved up can make the buying process easier. The amount you will want to have saved up will depend on the cost of your home, whether you plan on carrying private mortgage insurance and a variety of other factors. If possible, try to save up an amount close to (or more than) twenty percent of the home’s purchase price.

Ready? Chat With A Professional

Now that you have run a quick financial health check, it is time to meet with a mortgage professional to discuss your options.