Sean Perkins - Stone Ridge Properties



Posted by Sean Perkins on 6/6/2018

If you are thinking of buying a home, you probably have been getting your finances for some time. First-time homebuyers need the right information to avoid making big mistakes when they purchase their homes. The leap into home ownership is a big one, and youíll want as much information with you along for the ride. Below, youíll find a crash course on mortgages for first-time homebuyers. 


Think Ahead


Every homebuyer needs to prepare ahead of time for the process to be smooth. Research different lenders in your area and see what their rates are. If you talk to your lender about your goals and what type of loans youíre looking for, youíll understand all of the costs that youíll face ahead of time. You donít want any surprises when it comes to signing a contract for a home.


Every Mortgage Is Different


Itís easy to think that all home loans are created equal, but they arenít. The diversity in types of home loans is why you need to research and meet with a lender ahead of time. Talk to your real estate agent and see who they suggest. Your agent is a useful resource because they want your entire transaction to go smoothly for everyone involved. There are many different kinds of mortgages, and you need to make sure youíre getting the loan thatís right for you. Be sure you understand the specifics of each loan before you sign on.       


What You Need In Order


Before you even head into the home buying process, there are a few things that youíll need including:


  • Cash for a downpayment
  • A budget
  • Knowledge of all of your finances
  • Where youíd like to look for a home
  • An idea of how much you can spend on a home
  • Information to get pre-approved including tax returns, proof of income, and bank statements


Once you have saved up cash for a downpayment, itís time to take a look at your budget. Can you afford a monthly mortgage payment in the price range that you hope to buy? How much money will you have left over each month? Should you adjust your expectations? 



Youíll need to save up a bit of cash before you know that youíre ready to buy a home. Itís recommended that you have at least 20 percent of the purchase price of a home to put down towards your loan. The more you put down, the lower your monthly payments will be on the mortgage. So saving is the next big step in securing a mortgage in the smoothest possible way.     




Categories: Uncategorized  


Posted by Sean Perkins on 2/28/2018

Buying a home is one of the more complicated purchases that youíll make in your lifetime. Itís not something that you can just open your wallet, pull out a wad of cash and buy. Thereís a warm-up period for a house hunt. You need to prepare before you even start the process of the purchase. Thereís a lot of different things that you should do to ready yourself to buy a home. Youíll need to organize your finances, find a real estate agent and ready yourself. If youíre looking to buy a home in the near future, itís time to get busy! 


Keep Your Credit Score In Check


Your credit score is so important for so many reasons. The highest your credit score can be is 850 and the lowest it can be is 300. Youíll get a really good interest rate on a home if your credit score is 740 or above. A lower interest rate can save you a lot of money over a yearís time. 

The good news is that you can spend time repairing your score. This will include paying down debt, asking for credit limits to be raised and correcting errors that may be on your credit report. You want to be sure that youíre using 30% or less of your total available credit. As always, if your bills are paid on time, it will help you to keep that score up. Also, stay away from opening new credit cards, as this can bring your score down due to frequent credit checks. 


Put Gifts To Good Use


Whenever you get a financial gift, whether it be for a wedding, a Christmas bonus, or a birthday gift, make sure that you save it for your home purchase. Youíll need quite a bit of capital between closing costs, fees and down payments. Youíll be glad you saved the money once you start the home buying process. Youíll also want to make sure that you have and emergency fund built up. You donít want to buy a home without some sort of a financial cushion behind you. 


Research Real Estate Agents 


Your real estate agent will be your right hand person when it is time to buying a home. Youíll want to know that your agent is knowledgable and can help you in this big decision. Your real estate agent is the person who will help you reach your goals, and you want to feel comfortable with them. Ask for recommendations and do your research.  


Get Preapproved


Sellers love buyers who have been preapproved. This shows that theyíre reliable and financially able to buy a home. A preapproval can be done a few months in advance of buying a home. It will take an in-depth look at your finances including:


  • Proof of mortgage or rent payments over the last year
  • W2 forms for the past 2 years
  • Paycheck stubs for the past 2 months
  • List of all debts including loans and court settlements
  • List of all assets including car titles, investment accounts and any other real estate you may own.


Buying a home is a big deal but with the right preparation, youíll be on the road to success and ready to secure a home purchase.




Categories: Uncategorized  


Posted by Sean Perkins on 11/29/2017

Purchasing a home is a sign of new financial responsibility for many people. The leap into homeownership is a big and important step. Finding a home and securing a mortgage isnít easy. Getting ready to take on a mortgage can require a lot of research and education on your part. Before you get too confused, youíll need to learn the basics of a mortgage and what you should know before you apply. 


Be Prepared


This is probably the best advice for any first time homebuyer. Find some good lenders in your area. You can sit down with a lender and talk about your goals. The bank will be able to explain all of the costs and fees associated with buying a home ahead of time. This way, youíll know exactly what to expect when you head into a purchase contract without any surprises. 


Whatís Involved In A Loan? 


Each mortgage is a different situation. This is why meeting with a lender ahead of time is a good idea. Your real estate agent can suggest a mortgage lender if you donít have one in mind. No one will be happier for you than your real estate agent if you have a smooth real estate transaction. Youíll be able to walk through the mortgage process step by step with a loan officer and understand the specifics of your own scenario.


What Youíll Need For A Mortgage


Thereís a few things that youíll need to have ready before you can even begin searching for a home. 


Cash For A Down Payment


Youíll need to save up a bit of cash before you know that youíre ready to buy a home. Itís recommended that you have at least 20 percent of the purchase price of a home to put down towards your loan initially.   



A Good Working Knowledge Of Personal Finances


You should have an understanding of your own finances in order to buy a home. Not only will this help you save, but it will help you to ensure that youíre not going to overextend yourself financially after you secure the mortgage. To get your finances in order, honestly record all of your monthly expenses and spending habits, so you know exactly what you can afford.   


The Price Range Of Homes Youíre Interested In 


If you have an idea of what kind of home youíd like, it will make your entire house shopping experience a lot easier. Youíll be able to see exactly what you can afford and how much you need to save. When your wish list equates to half-million dollar homes, and you find that you can only afford around $300,000, you donít need to go into shock! Itís good to have an idea of how much house you can afford and what it will get you. When you do a little homework, youíll discover that buying a home isnít such a hard process when youíre prepared!





Posted by Sean Perkins on 9/20/2017

There are so many factors that go into finding and securing the financing to buy a home.   While lenders require quite a bit of information for you to get a loan, you still need to be aware of your own financial picture. Even if youíre pre-approved for a certain amount of money to buy a home, you still need to dig into your finances a bit deeper than a lender would. The bottom line is that you can't rely solely on a lender to tell you how much you can afford for a monthly payment on a home. Even if youíre approved to borrow the maximum amount of money for your finances to buy a home, it doesnít mean that you actually should use that amount. There are so many other real world things that you need to consider outside of the basic numbers that are plugged into a mortgage formula.   


Run Your Own Numbers


Itís important to sit down and do your own budget when youíre getting ready to buy a home. You have plenty of monthly expenses including student loan debt, car payments, utility bills, and more. Donít forget that you need to eat too! Think about what your lifestyle is like. How much do you spend on food? Do you go out to the movies often or spend a regular amount of cash on clothing? Even if you plan to make adjustments to these habits when buying a home, youíll want to think honestly about all of your needs and spending habits before signing on to buy a home. 


Now, youíll know what your true monthly costs are. Be sure to include things like home insurance, property taxes, monthly utilities, and any other personal monthly expenses in this budget. If you plan to put down a lower amount on the home, youíll also need to include additional insurance costs like private mortgage insurance (PMI).


The magic number that you should remember when it comes to housing costs is 30%. This is the percentage of your monthly income that you should plan to spend on housing. Realistically, this could make your budget tight so this is often thought of as a maximum percentage. By law, a lender canít approve a mortgage that would take up more than 35% of your monthly income. Some lenders have even stricter requirements such as not allowing a borrower to have a mortgage that would be more than 28% of monthly income. This is where the debt-to-income ratio comes into play.


As you can see, itís important to take an earnest look at your finances to avoid larger money issues when you buy a home.  





Categories: Uncategorized  


Posted by Sean Perkins on 4/12/2017

At a glance, buying a home seems like a daunting and complicated process. If it's your first time buying a home you're probably hearing a lot of terms that don't mean much to you like "rate commitment," "prequalify," and an array of acronyms that no one has ever really explained like APR and ARM. What many first time homebuyers don't realize is that the mortgage application process is relatively straightforward. It's a way for lenders to determine if they will lend money to the homebuyer. The lender will require some documentation on your part and you'll want to do your homework when it comes to choosing the right mortgage for you, but if you're confused about where to begin, here's everything you need to know about the home mortgage application process.

Gather your documents

Each lender will be slightly different when it comes to what records and documents they require from you. In general, lenders will require two years of work history, proof of income, and tax papers. They†will also ask for your permission to run a credit check.†Some things you should bring when applying for a mortgage include:
  • Your most recent pay stubs (at least two)
  • Your most recent W-2 forms
  • Completed tax returns
  • Bank statements
  • Gift letters
  • Debt - credit cards, student loans, etc.

Filling out the application

The actual application for the mortgage is pretty simple. Be expected to provide your personal and marital information, as well as your social security number. When you apply for a loan you'll also be determining if you're applying singly or with another person, such as a spouse. Some people apply jointly to seek a higher loan amount. However, you should be aware that if this is your plan of action the lender will require income and credit information from both of you. Keep in mind that it isn't easy to remove one person from a home loan once the contract is signed, so you should make certain of this decision before applying jointly.

Locked-in interest rates

It won't come as a surprise to you that, like in other industries, interest rates on mortgages fluctuate. For this reason, many home buyers attempt to "lock-in" their interest rate, meaning the lender is no longer allowed to change the interest rate after signing. The benefit of locking in your interest is that it can avoid having your interest rate raised before you sign on the home. The disadvantage is that since rates fluctuate, you could miss out on a lower one. This is also the difference between APR (annual percentage rating) and ARM (adjustable rate mortgage). With an APR, the cost of borrowing money (interest) is fixed. For an ARM, the interest rate can increase, decrease, or stay the same at different points in the repayment process.

Refinancing

Your financial situation is bound to fluctuate throughout your life, hopefully for the better. At some point down the road, it might make sense to refinance on your mortgage. Essentially this means you are agreeing to change the details†of the mortgage to either accept a different interest rate or to alter the length of the loan term. Refinancing usually involves fees, however, so you don't want to rely on it too heavily as a fallback.