Afonso Real Estate

Posted by Afonso Real Estate on 1/31/2018

Filling out a mortgage application may prove to be a long, arduous process, particularly for those who are buying a house for the first time. Lucky for you, we're here to help you dot the I's and cross the T's on your mortgage application to ensure you can quickly and effortlessly acquire your dream house.

Now, let's take a look at three tips to help you prepare your mortgage application.

1. Be Diligent

A mortgage application may appear daunting at first. The application may include several pages of questions, and you may have only a limited amount of time to finalize your submission.

When it comes to completing a mortgage application, it generally pays to be diligent. If you answer each mortgage application question to the best of your ability, you likely will have no trouble moving forward with your home purchase.

2. Avoid Guessing

If you're uncertain about how to respond to certain mortgage application questions, there is no need to guess. Instead, search for the information that you need to provide a comprehensive response. This will help reduce the risk of encountering potential problems down the line that otherwise could slow down your home acquisition.

Remember, guessing on a mortgage application probably won't do you or your lender any favors. But if you allocate the necessary time and resources to understand mortgage application questions and provide thoughtful responses, you can minimize the risk of application errors.

3. Ask Questions

Completing a mortgage application sometimes can be tricky. Fortunately, a lender employs mortgage specialists who are happy to respond to your application concerns or questions at any time.

If you're unsure about information that is requested on a mortgage application, don't hesitate to reach out to a lender's mortgage specialists for help. These specialists possess extensive mortgage expertise and can help you complete a mortgage application.

Furthermore, mortgage specialists can offer insights into a wide array of mortgage options. These specialists can explain the differences between fixed- and adjustable-rate mortgages and enable you to select the right mortgage option based on your financial situation.

As you prepare to buy a house, you may want to consult with a real estate agent as well. In fact, with a real estate agent at your side, you can seamlessly navigate the homebuying process.

A real estate agent understands exactly what it takes to acquire a house, regardless of the finances at your disposal. This housing market professional can set up home showings, help you submit offers on houses and ensure you can purchase a residence that matches or exceeds your expectations. And if you need help getting a mortgage, a real estate agent may even be able to connect you with the top lenders in your city or town.

Ready to move forward in the homebuying journey? Use the aforementioned tips, and you can finalize a mortgage application and secure the financing that you need to acquire your ideal residence.

Tags: Mortgage   Buying a home  
Categories: Uncategorized  

Posted by Afonso Real Estate on 7/26/2017

One of the best ways to lower your monthly mortgage payment is to make a sizable down payment when you buy your new house. In fact, a significant down payment could make the difference between whether or not a bank or other mortgage lender approves you for a loan. A lot of it has to do with the past.

Time is of essence when it comes to building a mortgage down payment

Since the Great Recession, lenders have become more conservative during the loan approval process. Even if you work for a bank, you might not get approved by your employer for a mortgage. It's not just your credit rating and your salary. The amount of disposable income and down payment you have are also key.

The time that it could take you to save a mortgage down payment depend on several factors. Among these important factors are:

  • How much student loan debt you have to pay off
  • Money management habits that you have developed
  • Your income and how much job security you have (For example, did you just start your job or have you worked for your employer for five or more years?)
  • The number and amount of financial obligations you currently have
  • Location, size and amount of house you want to buy

What is a good mortgage down payment?

Even if you have been working for your employer for five or more years, don't have a lot of debt and practice healthy money management habits, it still could take you several years to save for a sizable mortgage down  payment. This is because a good mortgage down payment can start at ten thousand dollars and quickly rise. Factors that help to create a good mortgage down payment include:

  • A good down payment on a mortgage generally equals about 20% of the overall cost of the house (For example, if the house that you're buying cost $225,000, you'd put at least $22,500 toward your down payment.)
  • Rising rates could lift the amount of money that you need to put toward a down payment.
  • Your down payment is separate from other housing costs like mortgage application and homeowners association fees, title search and title application fees and closing costs.

All is right with saving for a strong mortgage down payment

You could start saving for a mortgage down payment as soon as you start working. You could also save for a mortgage down payment even if you're on the fence about buying a house. The self-discipline that you use to build the savings can help you to develop the money management skills to get out of debt, invest in your education and start building a strong retirement account.

Several years of saving for a healthy mortgage down payment helps you to develop an appreciation for your finances. It helps you to see the correlation between your hard work and how you treat the money that you work so hard for. When you get ready to buy a house, it also helps you to get a great mortgage deal, the type of deal that finds you with more money left in your wallet after you pay your monthly mortgage.

Posted by Afonso Real Estate on 7/19/2017

Thereís so much to consider when to comes to buying a new home. The first issue is that of your finances. You need to make sure that youíre preparing financially for the home search, and not just making your list of ďwantsĒ for a new home. Itís an exciting time when youíre purchasing your first home, but donít let the excitement overtake your responsibility. Hereís some tips to keep you on the financial straight and narrow path when preparing to buy a home: Be Mindful Of Your Credit Score Thereís many factors that can affect your credit score. Applying for new credit cards is one of those factors. Your credit score will drop a few points every time you have a new credit inquiry or open a new account. If you do get approved for new credit, lenders may have concerns that youíll spend up maxing out your new approved credit limit on that account and possibly default on your loan. Closing credit accounts is another factor that greatly affects your credit score. You may think that closing unused accounts is a good idea to help get yourself financially ready for becoming a homeowner. This isnít true. Closing accounts lowers your amount of overall available credit. This means that your debt-to-credit ratio is larger. This lowers your overall credit score. You can certainly make these smart financial changes after you close on your new home. Keep Records When you move your money around, make sure you have records of it. Your lender will want to know about any unusual deposits and withdrawals. Youíll need to prove where your money comes from. All of the cash that youíll be using for your home purchase should be in one account before you apply for a mortgage. Keep Up With Your Bills Donít increase your debt. This will have an affect on the very important debt-to-income ratio which is one of the most vital aspects of loan approval. Also, be sure that you donít skip your payments on bills. Your history of payments is incredibly important as well. Be sure that you continue to make full, on-time payments on all of your bills. Keep Your Job Even though a new job could mean a raise, or a better situation for you and your family, it could delay you in getting a mortgage. Youíll need to have your employment verified along with pay stubs to prove your source of income. Lenders like to see a longer employment history. Keep Saving The biggest up front costs in buying a home is that of closing costs and the down payment. Those must be paid at the time of closing. Lenders may even verify that your savings is on hand. Keep saving steadily and be sure to keep your savings in place.

Posted by Afonso Real Estate on 5/10/2017


Two thirds of American homeowners are somewhere in the process of paying off a mortgage. It may seem like common sense that everyone should try to pay off their mortgage sooner rather than later. However, there are circumstances when it benefits a homeowner more to hold onto their mortgage longer.

In this article, weíll offer some tips on paying off your mortgage, when you should refinance, and offer some tools that will help you along the long road to debt-free homeownership. If youíre a homeowner and find yourself asking these questions, read on.

I can afford to pay more each month on my mortgage, but should I?

In many cases, paying off your home as quickly as possible saves you money in the long run. A shorter loan term means less interest applied to your loan which could save you thousands of dollars in accrued interest.

What many people donít think about is whether that money could be better spent elsewhere. If your mortgage interest rate isnít too high, you might be better off allocating that extra income toward investments or retirement funds where they could earn you more in the long run.

This technique is typically most beneficial for younger homeowners. In your 20s and 30s you stand the most to gain from long-term investments, especially tax-benefitted retirement funds. Ultimately youíll have to do the math, which is tricky because circumstances change; markets vary, our income goes up and down, etc. However, a good starting place is to determine whether you could earn more in retirement and investments than you could by paying off your mortgage sooner and therefore saving on interest. 

Iíve owned my home for a few years now, should I refinance?

Refinancing is a term that has become ubiquitous for homeowners. There are a few important things to understand about refinancing. First, lowering your monthly payments is not always ideal if it means youíll end up paying more interest in the long run. Ideally, refinancing your mortgage will help you pay the least amount in total.

One way this can be accomplished is by refinancing to a 15-year fixed-rate mortgage which often darry slightly lower interest rates. This option is designed for people who have improved their credit and increased their income since signing their first mortgage.

Math isnít my strong suit. How can I figure out my finances?

If all of the numbers and percentages associated with mortgages and refinancing seems overwhelming--youíre not alone. Fortunately, there are mortgage and refinancing calculators that will give you a good idea of where you stand if you decide to increase your payments or to attempt to refinance your loan. Here are some great tools:
  • Use this mortgage calculator for determining how much you would save by making extra payments.

  • This refinance calculator will help you understand the potential benefits of refinancing your mortgage.

  • To determine how much you could earn through investments (rather than paying more toward your mortgage) use this helpful tool.

  • You might be able to increase your savings by creating a better budget for yourself. This website will help you make a detailed budget and hold yourself accountable each month.

Tags: Mortgage   refinancing   home   finance  
Categories: Uncategorized  

Posted by Afonso Real Estate on 1/11/2017

A fixed-rate mortgage (FRM) offers one of many financing options for homebuyers. It enables homebuyers to lock in an interest rate on a home loan and pay a set amount each month for the life of a mortgage. As such, an FRM remains a popular option for homebuyers across the United States.

Ultimately, there are many benefits to choosing an FRM, including:

1. Easy Budgeting

With an FRM, your mortgage payments will always stay the same. Thus, after you get approved for an FRM, you can budget accordingly.

An FRM often serves as a great option for homeowners who struggle to maintain a budget. It ensures your mortgage payments will never rise or fall for the life of your loan, which may make it easier for you to map out a weekly, monthly or annual budget.

In addition, an FRM will stay intact regardless of market conditions. This means you won't have to worry about your mortgage costs rising even if interest rates increase nationally.

2. No Price Fluctuations

An FRM minimizes headaches for homebuyers, and for good reason. After you agree to FRM terms with your lender, you will know precisely what you'll be paying for your home.

Comparatively, an adjustable-rate mortgage (ARM) may be difficult for homebuyers to understand. This type of mortgage may fluctuate over time, which means the amount you pay in the first few years of your loan could escalate.

For example, a 5/1 ARM ensures that your interest rate will remain intact for the first five years of your loan. After the initial period, the interest rate may change annually. As a result, your monthly mortgage payments may fluctuate over the life of your loan.

3. Simple to Understand

Your lender will be able to outline the terms of an FRM with ease, as this type of mortgage ensures an interest rate is set in stone until your loan is paid in full. Plus, after you receive an FRM, you can focus on what's important Ė acquiring your dream home and enjoying this residence for years to come.

With an ARM, the interest rate for your loan may move up and down over the years. The factors that cause the interest rate to fluctuate are based on numerous market factors as well. Therefore, it can be tough to plan ahead for your monthly mortgage payments due to the fact that various factors may impact your loan's interest rate.

Determining whether an FRM is right for you can be challenging. Thankfully, banks and credit unions can define all of your home financing options and respond to any concerns and questions.

Furthermore, your real estate agent may be able to put you in touch with lenders in your area. This real estate professional also is happy to offer tips and recommendations to ensure you can get the financing you need to secure your dream house.

Examine all of your home financing options closely, and you should have no trouble obtaining a home loan that matches your budget.

Categories: Uncategorized