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As housing inventories remain constrained in many markets, some buyers may face increased competition and more bidding wars heading into the spring-selling season. Bidding for a new home can get pretty fierce in today's market.  Here are three potential solutions to avoid getting outbid on your new home:

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  1. Turn in your loan paperwork BEFORE you place an offer.  In many cases, you are bidding against cash buyers who don't need to wait for financing approvals.  Look at it this way:  if you were the seller, would you prefer to do business with a buyer who needs to wait for financing approvals, or a cash buyer who can close the deal quickly?  With that in mind, it's important to be proactive and provide your mortgage lender with things like your source of down payment funds, your asset documentation, your credit report and your income documentation.  This way, you'll be in a better position to close the deal quickly and compete with those cash buyers.
  2. Pay cash, but do it right.  Keep in mind that you only have 90 days after closing to place a mortgage on a property that you bought with cash if you want to secure your tax deduction. ...

The Lowdown on Down Payments

Jan 27
2:38
PM
Category | Blog

MYTH: You need to put 20% down to purchase home.

FACT:  There are many options out there, you can qualify for a mortgage and get your new home without a 20% down payment

“There’s a lot of misconception out there about down payments,” says Steve Grossman, at NJ Lenders. “First-time homebuyers typically fall victim to this myth the most often. The fact is that there are a lot of loan programs that permit a borrower to get a mortgage without having a 20 percent down payment.” Steve continued to describe how knowing the available options can aid a buyer in the early steps of their home search process.

Let’s begin by defining what a down payment is and how it is viewed by lenders. Most lenders will want to see that you have something saved towards purchasing your home. The idea is that if you put your own money into the purchase, you have an incentive to make the mortgage payments because you want to protect your initial investment in the home. This is called a down payment, and it’s almost always calculated as a percent of the home purchase price. You make the down payment, and the lender provides the rest of the money to purchase the home.

Many lenders will offer borrowers a mortgage if they have at least 3-5% of the home purchase price. “There are four other key factors ...


Refinancing is a pretty simple concept. It means you pay off your existing mortgage and replace that loan with a different one. Many borrowers reach life-stages where changing the terms of their mortgage makes sense. For example, many older homeowners look to shorten the term of their mortgage to eliminate payments after retirement, while younger homeowners may wish to switch from an adjustable rate mortgage (ARM) to a fixed rate to ensure consistency as they settle into a new lifestyle. Families who outgrow their current homes may choose to tap their home’s equity in order to renovate or add on to their current home. Couples who divorce need to revise the mortgage terms to remove the former spouse from the obligation. Sometimes, when children are preparing to enter college, parents may choose to tap their home’s equity to help finance new educational expenses.

There are pro’s and con’s to refinancing. The key is to remember that refinancing can cost between 3-6% of the loan’s principal and it requires the same paperwork (see Refinance Checklist), fees and evaluation of the property value (appraisal) that an original mortgage does. It’s important to ask yourself some questions before considering a refinance:

1 – How long to I/we plan to live in this house?

2 – Do I need ...


Choosing a loan officer, like choosing a Realtor, is one of the most important decisions you can make when financing a home purchase. Your loan officer will be working very closely with you and sorting through a great deal of personal information, so you want to find someone who is responsive, well-versed in loan product options and trustworthy. Here are a few tips to find the right loan officer for you:

  • Find someone who is interested in what is best for you. They should be collaborative and willing to listen and work with you to understand your needs and financial situation. Make sure it’s a good personality fit. Ask for references. Compare responses.
     
  • Make sure the loan officer is established with a reputable company that has been recognized for excellence.  NJ Lenders Corp. has many many loan officers  that have achieved "5 Star Professional" and "Top 200 Mortgage Originator" status.   The company is also consistently ranked as a top mortgage company year after year by various publications. For over 24 years NJ Lenders Corp has been a trusted mortgage lender serving customers.  The company strives to make every client a "Customer For Life
      
  • Interest rate should not be ...

Demystifying the Mortgage Loan Process

Nov 29
11:05
AM
Category | Blog

There are so many moving parts to the successful purchase of a home, and getting a mortgage is a big part of that. We’re often asked “what are you doing that whole time”? Here’s a simplified overview of what we do, as the lender, to make your mortgage:

Once you have a sales contract on the property signed by both parties, we recommend that you lock in your interest rate and confirm the specific of the loan. Your INTEREST RATE/LOAN LOCK will take place fairly early on during processing so that all subsequent documents reflect the correct loan program and the interest rate(s) you are committing to.

Speaking of process, the next step is, in fact, called PROCESSING. This is where we align your loan application with the loan product and interest rate you have locked. Loan Processing is the general term used while we collect and double-check all of your information and documents. It starts with the information on your application and your real estate purchase contract. All of the supporting documents and verifications are reviewed and checked until the information you provide (the documents, bank balances, credit reports, etc) is validated to ensure you have proper documents to commit to the loan and accept ownership of and responsibility for the home. Processing also includes several checkpoints based on the ...


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