Joe Sheehan Cornerstone Bank Homebuying Advice
1. Act Now! Every day you wait to do a mortgage it will get more expensive and harder to get approved. I know some people want to wait until they get other things figured out. “I want to pay of my car first”. “I want to get my credit score higher”. But FHA is making changes that will cost you more money. First FHA said they will raise the annual insurance premium. This will mean the monthly payment will go up. Second, FHA is going to make the Monthly Mortgage Insurance go for the life of the loan on all new case numbers after the change. This is going to cost you thousands of dollars. The good news? The date for the change has not been set, so if you act now you can be ahead of these changes at the current lower cost.
2. Low money down, or no money down. Many people still think they need to have large down payments. It’s not true. We have loan programs that require no down payment and FHA only requires 3.5% of the purchase price. Some people qualify to get help with grants to help cover the down payment. We have access to programs through ND Housing and Federal Home Loan Bank to help people, who qualify, with funds toward the down payment.
3. Should I refinance or upgrade? Work with a lender that will take the time to walk you through this question. If you will stay in the house at least 5 years, it is important to walk through benefits of refinancing. However, if you think building your dream home could be in your future, but you are not sure when it will happen. Ask your loan officer to show you a no cost refinance. Should your dream home move ahead on the calendar, you won’t have to worry about losing a lot of money on closing costs.
Contact Cornerstone Bank for all your mortgage and homebuying needs at Cornerstone Bank 2112 North 12th Street Bismarck,ND 58501 or call (701) 355-4663 or visit www.355home.com.