Let us be honest, we all have some itchy mortgage home loan questions that are difficult to ask. Opening up your personal life and finances can be uneasy. Borrowers may hesitate to talk on certain topics that can eventually lead to a troublesome mortgage home loan process. Read our blog ‘Are you embarrassed to ask these mortgage home loan questions?’, and elude yourself from being in an uncomfortable situation.

If you are hesitant to ask questions that you feel may put you in a compromising state, think again. Loan officers hear it all the time and they have answers to all your questions. Some of the questions are given below. 

Is It Possible To Get A Mortgage Home Loan Without A Job?

The first step to qualifying for a mortgage home loan is employment verification. Your lending institution will look at your debt-to-income ratio, W2s for the past 2 years, etch, to understand your finances. Now, the question is what happens if you lose your job during the home-buying process? Firstly, it’s important for a buyer to be honest with the loan officer and disclose every little detail. Hiding the situation will only get you in trouble and increase the risk of loan default. The loan officer, in this case, will recalculate your savings/earnings and submit a new mortgage application.

Although, you may still qualify for a smaller loan and get a house in that price range.   

How Do I Take An Ex-Off My Mortgage Post Separation?

There are usually two options available in this case

• Sell your house
• Let one spouse buy out other

Selling your house and dividing the yields is the most suitable option to resolve the issue of homeownership. Here, the spouses need to settle on a buyout figure (i.e. the home’s appraised value minus the selling price). The remaining amount will be split between the spouses. Furthermore, the spouse keeping the house may decide to employ a mortgage refinance to pay the buyout. So when you purchase back home with this option it will eventually remove the other partner from the property’s title.

What Happens To The Mortgage Loan If I File For Bankruptcy?

Keeping your home while facing bankruptcy is probably one of the biggest concerns for homeowners. Legally, a mortgage lender cannot punish you for filing a bankruptcy either way by changing your loan terms or raising your rate. Although, the cases are different keep in mind several factors and circumstances. Homeowners filing for chapter 7 bankruptcy may risk losing their homes. Whereas, homeowners filing for chapter 13 bankruptcy may keep their home and continue paying their mortgage home loan. 

Does It Matter In Case I Owe Back Child Support?

A child support arrear can be a negative sign on your credit that may lead to failure of mortgage prequalification. Additionally, back child support that has reached the judgment phase may make you appear as a risk to the lender. You may want to consider talking openly to your loan officer about the ways you’re trying to pay the debt. It may also possibly improve the odds of qualifying for loan eligibility. 

The loan officer may also ask you for a court-approved repayment plan to know how you’re managing your debt. Furthermore, paying the debt in full can also ease the toll of credit and qualify you for mortgage programs.

• I Didn’t Pay My Property Taxes And Got A Letter From The Lender. What Do I Do?

The reason homeowners pay taxes is to fund the municipal services and county. If you fail to pay the property tax bill, the local tax office will commence charging monthly interest. Additionally, you may also have to pay penalty charges for overdue payments. If this becomes a continuous thing a tax lien will be put on your property. The lien indicates you can’t sell the property until the tax bill is paid. 

If you receive a tax notice from your lender, then it’s crucial to contact the tax attorney and your loan officer. Failure of property tax payment translates into the ‘event of default’ that will put you at risk of foreclosure.

There are some options that your loan officer may guide you through

• Allowing late payments
• Seeking a tax deferral
• Creating a payment plan
• Taking out a property tax loan to pay a debt in monthly installments

• Why Is It Important To Know Where The Money Deposited In My Account Comes From?

While the mortgage approval process, large deposits of money that are apart from your earnings need an explanation. An underwriter will ask for verification of the large money deposit, to ensure it comes from an admissible source. Confirmation of the deposit also ensures if you’ve taken a new loan that potentially affects your debt-to-income ratio.

• I Am Unable To Make My Mortgage Payment, What Do I Do?

If you think foreclosure is the only way out if you default on mortgage payments, think again. There are several options available, one of which is to contact your loan officer. Your officer will ask you about the financial crisis and why you won’t be able to make payments moving forward. The objective of the officer here is to help you to keep your house and explore the possibilities. There are options like loan modification, mortgage refinance, repayment plans, forbearance, mortgage assistance programs, or short sale. These options can be a big consideration before the homeowner faces bankruptcy.

Additionally, the Consumer Financial Protection Bureau recommends a free HUD-approved housing counselor. Having a counselor by your side can aid in receiving professional guidance and saving you from foreclosure. 

Bottom Line

Having awkward questions is okay as far as you have solutions for them. Although, if you want to avoid such situations you can sell your house to Elite Properties. We buy houses as-is and offer you the authentic fair market value of your house. Call us today at 718-977-5462 and sell your house fast for cash.

In order to assess property taxes, localities usually have a home appraisal. When you sell your house or refinance it, the bank is liable to order an independent appraisal. This is done to assure it is lending against the property’s true value. The satisfaction of a home appraisal relies on if you are a seller, a prospective buyer, or a taxpayer. If you’re someone who is unhappy with their home appraisal, scroll down to read our blog ‘This Is How You Can Challenge A Low Home Appraisal’.

A thing to keep in mind is that not all homes are up for appraisals if you are a cash buyer you can opt-out. Although, this only happens when the price inclines on the steeper end of the market and the inventory is low. However, if you are planning to finance your new home appraisal is mandatory. On the other hand, according to most housing experts, if you are paying for your house in cash, it is always better to know its worth.

The Multiple Kind of Appraisals

To understand better make sure you are aware of the multiple types of appraisals.

• Online Appraisal

Many companies nowadays have started performing electronic appraisals to cut costs. Here, they do internet research on comps (comparable homes) to fix the value of your home based on comps and other factors inclusively. Although, in an online appraisal there is a high chance that information on newly renovated rooms or items can be skipped. If something like this occurs, it might impact the assessment of your house as these things are not visible online.

• County Appraisals

Drive-by appraisals are another kind of appraisal that usually takes place for counties. In drive-by appraisals, a person may take the current picture of their home and comparables, again without the need to visit the house.

• Traditional Appraisal

Lastly, the traditional appraisal occurs when the appraiser visits the house and gathers information. The appraiser further asks questions regarding improvements. Post which he/she will make a comparison to other similar houses in the area or town. Furthermore, a traditional appraisal may cost several dollars and takes place when a home is sold to the new owner.

Here’s How To Challenge A County Appraisal

The reason for conducting a county appraisal is to assess property taxes based on the current value of your home. If you aren’t thinking of moving any time soon, and when the assessment comes in lower than your expectations. A thing to consider is that your property tax bill will also be less. Additionally, if you want to sell your house in the future you can call the county auditor. There are many localities that allow you to appeal the assessment by providing proof of upgrades or improvements.

Furthermore, while evaluating the property a real estate agent researches the comps in the area. This means using the county’s assessed value may not hold as much importance.

Here’s How You Can Challenge Other Appraisals

If you’re buying a house and the appraisal comes in too low, it will result in declining your mortgage loan approval from the lender. Although, you still have multiple options to try before giving up.

First off, as the purchaser of the appraisal, you are entitled to view the appraisal. Make sure to work closely with the seller’s real estate agent and ensure all major upgrades are taken care off while the assessment. Additionally, ask the seller’s real estate agent to talk to the appraiser about the comps they examined while finalizing the selling price.

You can also request the appraiser to re-examine their results based on comparables. If there are a handful of recent sales in the neighborhood. The appraiser may have found similar homes in other neighborhoods that weren’t comparable as initially thought. If you can provide authentic information to the appraiser there is a possibility they might reconsider the assessment.

Lastly, remember to always be polite while challenging an appraisal. The appraiser may not want to admit that they’re wrong while putting in a place of defense. Make sure you challenge the assessment with absolute respect and talk it through.

Conclusion

There might be times when a low appraisal may work in your favor regardless of your status. Remember, an appraisal relies on multiple factors starting from the home’s condition, its market value, and comparables.

Furthermore, if you have strict time constraints and are planning to sell your house fast you can get in touch with Elite Properties. We buy houses for cash and make an offer based on the fair market value. Also, we offer fast closings so that you can work according to your timeline. Call us today at 718-977-5462 to know more.

The biggest perk of being a homeowner is you can build home equity over the period of repayment. As you pay the mortgage your equity in a home increases simultaneously. Additionally, a Home Equity Line Of Credit (HELOC) is a financial product enabling homeowners to borrow a chunk of that equity against their homes. If you are someone who is thinking of using HELOC apart from securing a second mortgage loan; read our blog about why avoid using your home equity line of credit. And make a decision later.

What Is Home Equity?

Home equity or also known as real property value is the unencumbered interest of a property. It is the difference between your home’s worth and the outstanding balance of all credits on the property.

Example – Your home’s worth is $300,000 and you’ve paid $25,000 of the mortgage. Additionally, you’ve put down 20% ($60,000) which signifies you have $85000 equity in the home.

What Is A Home Equity Line Of Credit?

A HELOC (Home Equity Line Of Credit) is similar to a credit card. Although the limit is purely based on the equity you have in your home, most banks offer about 80% of your equity. HELOCs often have a lower interest rate in comparison to other loans and the interest may be tax-deductible. 

As HELOCs have a lot to offer, using them for leisure and entertainment can be an indicator that you are misusing the allowance. Even if the HELOC is cheaper than a credit card, it is still a debt that must be avoided for funding a luxurious lifestyle. Given are some of the activities you must avoid while using your home equity line of credit.

Paying For A Vacation

Adding to other activities, spending your home equity line of credit on a vacation can be a bad decision. HELOCs are a source of cheaper debt in comparison to other kinds of credits, people use them for sponsoring trips. Also, the HELOC offers interest rates below 6% whereas credit cards may be on the steeper end offering 14%-25% interest rates. When you borrow from the home equity you are only aggravating the issue, as you may be risking your home while using HELOCs.

Buying A Car

There was a time where HELOC rates were reasonably cheaper than auto loans. Eventually, the cheaper rates enticed people, enabling them to use HELOCs although it’s not the case anymore. Furthermore, buying a vehicle or car, in this case, is a bad idea for many reasons. When you take an auto loan with a HELOC your loan is secured by the car you purchased. If your financial condition worsens you may end up losing the car. Additionally, if you’re unable to make repayments you may also lose your house. Adding to the rest, an automobile is a depreciating asset.

Paying Off Credit Card Debt

When calculating your repayments paying off expensive debt with cheaper debt may make a lot of sense. However, in some cases, this debt transfer can skip the underlying issue, which is a lack/shortage of income or inadequacy to control spending. It is vital to understand what led you to create credit card debt in the first place. You can only pay a credit card debt if you have the discipline to pay the principal of the loan initially.

Paying For College Education

The primary reason for people using HELOCs as mentioned above is because it’s cheaper than other credits. This makes it a big reason for using it for your child’s college education, however, using HELOCs may put your house at risk. You may have to think twice before using the home equity line of credit as it may risk losing your house. Additionally, if the amount is significant and you’re unable to pay the principal within 10 years. You may carry the added burden of mortgage debt into retirement.  

Investing In Real Estate

Should I invest in real estate with HELOCs? The ultimate answer to this question is that it’s a risky proposition. There are many uncertain circumstances that may affect this decision. Reasons like sudden renovation, or a downturn in the real estate market, etc. can be a pitfall. Due to the same reason, many people have been trapped in debt, which makes repaying a tough task. 

Bottom Line

There are many other ways to fund your requisites apart from HELOCs may it be for education, getting a car, or planning a trip. It is best to avoid using the home equity line of credit and use your savings or other available credit options. Furthermore, if you want to sell your house fast you can get in touch with Elite Properties. We are a cash buying company offering fast closings and no-obligation offers. Call us today at 718-977-5462 to know more.  

The facade of real estate has changed with time and new-age processes like virtual tours, virtual staging, advertising online, etc. , are pulling the limelight. With the moving age of the internet selling and buying is as easy as a click. The dynamics of business are constantly evolving whether it’s real estate or groceries. People prefer convenient alternatives rather than the traditional home selling process. Nowadays, people are attracted to iBuying, don’t know what is it? Scroll through our blog, ‘Is iBuying Worth The Hype? What is an iBuyer?’ to know more about the topic.

What Is An iBuyer?

To put it in simple words, an iBuyer is a company with ample finances that makes an offer on your behalf based on algorithms. The term “iBuyer” is a fusion of words where I denote ‘instant’ combined with the word ‘buyer’. The company makes all the trades and makes the whole process convenient for both buyers and sellers. iBuyers try to sell your house with a profit margin and give you cash in return once sold.

iBuyers buy your house as-is which means selling your house without spending a ton of money. It enables a buyer to avoid the extra upfront costs that incur while closing. Additionally, it avoids the need for real estate agents or brokers.

How Does An iBuying Model Work?

As given above iBuyers use algorithms to determine the ideal price of a home, which are based on comps (comparables). The iBuyers provide instant offers to sellers in as few as 24 hours once you fill out the requisites in the form. A potential seller will have to go to the iBuying website and fill out a form, post which they receive an offer. For instance, if the seller accepts the offer then the sale is likely to close in just a few weeks.

How do iBuyers make profits?

iBuyers usually buy a property with a discount as-is. They add value to the property by making minor improvements to optimize the selling price post which they list on MLS. Additionally, iBuyers provide an in-house financing service to customers which helps in earning good profits. A service charge typically ranges from 5% (can be higher or lower, relies on the tenure of selling your house)

Pros And Cons Of Selling Your Home To An iBuyer

iBuying is a great way to close deals fast, although it comes with a set of pros and cons. Some of them are given below.

Pros of iBuying

• Capable of fast closings (as less as a couple of weeks)
• Avoid the hassles of legal verification, inspection, or appraisals
• Does not require walkthroughs
• Avoid paying the upfronts costs while closing deals

Cons of iBuying

• May require some amount as a listing fee, which is usually higher than a real estate commission
• Currently, only a few iBuying companies are active and providing services
• Less selling prices, usually below the fair market value
• In most iBuying models the house may have to satisfy the ideal house criteria

Is iBuying Really Worth It?

Whatever method you use to sell your house whether it’s a traditional home sale or iBuying,  will have some advantages and disadvantages. It is all about what suits you best. Although, if you choose to sell through an iBuyer, make sure to do your due diligence. Besides, it is equally important to go through all the fine print and policies including the other costs and fees if any.

Conclusion

If you are someone who wants to sell your house fast and doesn’t have enough time to wait? You can get in touch with Elite Properties. We buy houses for cash online in New York and offer you enticing deals over your as-is property. Furthermore, if you wish to learn more about a house sale then call us at 718-977-5462, we’ll be happy to help.

Staging is a way to market your property for better profits.

What is Virtual Staging?

Like traditional staging, it is an innovative marketing technique that showcases multiple features of your house. It is a method to entice prospects and convert them into buyers. If you are planning to sell your house, then you must try to impress potential buyers with virtual staging.

A virtual staging as the name says is done virtually with the help of computer software that shows various uses of spaces/rooms. It includes demonstrating the potential placement of the decor, furniture, accessories, appliances, etc., in high definition.

Ideal Spaces For Virtual Staging

To begin with, virtual staging is best suited to vacant properties. If your home is occupied with furniture and other stuff you might want to opt for traditional staging. Although vacant homes, homes with obsolete furniture, and houses that have tenants are ideal spaces for staging. 

What Is Better, Virtual Staging Vs. Traditional Staging?

When it comes to staging, this staging is a lot cheaper than a traditional one. A traditional staging will cost you several hundred dollars a month although, it is completely dependent on the stager you hire. Additionally, the prices may vary depending on the type and quantity of furniture you rent and the number of rooms that require staging. On the other hand, this staging may cost you anywhere from 39-199 dollars per room. Again, this is all reliant on the contractor, the number of rooms, the location, and the spaces that require staging.

Pros And Cons Of Virtual Staging

If done right, it can be a great way to sell your house fast. You will need a professional stager and will have to work with a reputable company with a wide and fine portfolio of completed projects.

Pros of virtual staging –

• Highlight the best features of your room/house
• Cost-efficient
• Best way to entice buyers and sell properties online
• Customizable to stage the number of rooms

Cons of virtual staging –

• Can be a little expensive while remove furniture or other items from pictures
• Can be difficult if the room is occupied unless you have vacant room pictures handy
• The furniture and decor are not real and only exist in a virtual space

Pros And Cons Of Traditional Staging

­A traditional staging doesn’t always require a professional stager. Although, hiring a professional provides an eye for detail and creates a space that entices buyers. Besides, there are some pros and cons of traditional staging.

Pros of traditional staging –

• Provides a real-life perspective while walkthroughs to buyers
• Can make spaces appear larger and enable buyers to gauge the size of the space
• Does not require a professional stager

Cons of traditional staging –

• Can be on the expensive side
• Extra upfront costs for furniture and decor
• Can be an extra pile of work as the market can be uncertain in terms of selling your house

Virtual Staging Mistakes To Avoid

Hiring a virtual staging company that is not up to the mark can be a potential mistake. The virtually staged pictures must look so realistic that buyers fail to recognize it’s computer-generated. 

Other mistakes most people make are –

• Buyers tend to imagine things as they are shown virtually. It is vital to provide buyers with vacant and staged room images that offer a better perspective to their imagination.
• The second mistake is staging the house for the worse instead of making it look appealing. Remember overdoing the furniture and decor will only make the room look chaotic and not pleasing.
• Lastly, using virtual staging when it’s not needed. If your property looks fine just by shifting furniture and changing the rugs then it is advisable to avoid this type of staging.

Is It Possible To Sell Your House With Virtual Staging?

Virtual staging can be a big asset while you sell your house. Although, there are some points you might want to touch down before hiring a staging company. Avoid over or underdoing, creating a balanced look will do wonders. Virtual staging can help you sell your house fast, but if you want to avoid the hassles of hiring a stager you can sell your house as-is to Elite Properties NY. Call us today at 718-977-5462 and learn about how to sell your house for cash.

Life has become easy since technology evolved, it has changed the way people perceive things. Whether it’s grocery shopping or buying electronics. People today, have also started to look for properties over the web. If you’re planning to sell your house then read these effective tips for selling your home fast in the digital age.

There is a huge chunk of the population that buys properties online in New York, and the numbers are increasing every day. In the age of the internet and tech-savvy surfers, it is vital for a seller to know how to sell her house online. There is a lot that goes in while selling your home like planning a strategy to promote your property. A comprehensive marketing plan will bring online prospects to your doorstep.

1. Hire A Professional Photographer     

Professional photography of your property may make or break a deal. It is usually a buyer market online which means your competition as a seller is more notable. Potential buyers will scroll on the listings and look for properties that fit their requisites. The first thing a buyer will notice is the quality of your pictures additionally if it showcases every angle of your house. You’ll need a carousel of images that show every corner of your house in detail. Additionally, you’ll also have to click pictures of the exteriors like the verandah or backyard to show the surrounding area.

Working with a professional photographer will enable you to entice more buyers with excellent images. Putting up high-quality images will decide how quickly you get potential buyers from the internet to your doorstep.

2. Make Walkthrough Videos of your House

Videos can be a decisive factor when it comes to selling your home. It is a persuasive tool that enables buyers to consider the property for purchase. Sometimes images don’t justify the property you list online, videos on the other hand capture every little detail. When you combine pictures with videos it offers a realistic approach to prospects.

There might be buyers looking for property from another state or city, what’d you do then? Here, videos can be an accessible factor to know about the property as well as the neighborhood without traveling. Besides, when you make a video it offers a walkthrough experience for buyers and you save a lot of time. If you are planning to list your property online make sure you make a video of your house.

3. Promote Your Property On Social Media

Social media helps a lot when you are listing your property online. It increases the exposure of your listing and creates a platform for people to view your property. There are so many non-buyers and buyers who engage in discovering and sharing listings, which boosts your listing as well. Once you list your property over the internet, your listing can be a part of multiple campaigns. For example, your property can be a part of a Facebook “for sale” campaign which redirects to the MLS page. Here, your property will be directly linked with the post/campaign, which will give your property the needed exposure.

4. Stage Your House 

You may click amazing pictures or make videos of your property but how will you hide the cluttered kitchen? Staging is a vital step while listing your property online or offline. Shifting furniture and decluttering your home can create wonders. You don’t need a professional stager to make your house beautiful. Fixing the drainage and HVAC units, and clearing personal stuff while clicking pictures makes your home look tidy and attractive.

5. Accurate Pricing of your House

Many home sellers miss out on this one. When you put an unrealistic price it is evident that your property will be skipped to the next. If you are pricing your home high keep in mind you’ll have to justify its price. If your home has all the amenities and features listed online, buyers will pay the price even if it is on the higher side.

Selling Your Home To Elite Properties

At Elite Properties we buy properties online New York, whether you want to sell your distressed home or want cash for homes we do it all. Selling your home online needs a lot of effort and is time-consuming. With us, you can sell your home within 3 days in any condition. Furthermore, we offer a fair market value to our clients. Call us today at 718-977-5462 to know more.

It’s hard to resist the ‘sell your house’ ads or ‘refinance house’ in your mail and also the frustration of mortgage repayments. Keeping up with monthly mortgage repayments can be a tough task. Is getting a new loan to cut down the expenses your next thought? You might want to reconsider your options.

The pandemic had a hard hit on everyone, with people losing jobs and it being tough to manage expenses. Refinancing your mortgage can shorten the life of your current mortgage and also provide lower interest rates. It can significantly lessen your monthly mortgage payment although, selling your home makes more sense if you’re unable to manage the monthly installments. If you are confused between selling your house or refinancing? Choose what is best for you by reading the blog below.

Possible Reasons To Refinance House

Refinancing is a process where you replace your existing mortgage with a new loan. People usually refinance their mortgages to get a new ones for lower interest rates and reduce monthly payments. There are many reasons for homeowners to refinance some of them are listed below.

To Lengthen Or Shorten The Mortgage Term

Refinancing can help you lengthen the mortgage term which allows you extra time to pay off your loan. It also lowers the amount you are entitled to pay every month. Refinancing also helps in shortening the mortgage term. When you increase your monthly payment you repay faster and save the running interest amount. This way you own your house faster and save thousands on interest.

To Change The Structure Of Your Loan

If you have an Adjustable Rate Mortgage (ARM) and you’re past the fixed period, your monthly interest rates may vary significantly. You can refinance the ARM to a fixed-rate loan which will make your monthly repayment and expenses predictable. Changing the structure of your loan gives you control of your monthly expenses.

To Change The Type Of Loan

Homeowners refinance their government-backed loans to a conventional loan as they build equity. If you pay 10% of the down payment for a Federal Housing Administration (FHA) loan, you are entitled to pay the mortgage insurance premium. Although, when you build a 20% equity on the conventional loan, you can get away with private mortgage insurance.

To Cash Out Your Equity

In cash-out refinance you replace your old mortgage with a new one with a higher balance. The difference between the old and new mortgage is paid in cash to the homeowner at many more favorable terms. As these mortgages have higher principal and low-interest rates they can be used for almost anything like paying off debt or getting new purchases. 

Look For Available Options

Consider refinancing as an option but want to sell your house in the coming future. So why not look at some options? Before jumping to conclusions.

Loan Modification

A loan modification is less expensive than refinancing. When you choose to modify the loan your lender agrees to make changes on mutual terms. It consists of changing your monthly repayment amount, interest rates, and your term. In rare cases, the lender might also reduce a chunk of the principal from the amount. So, if you are facing financial difficulties this might be an ideal option for you. 

No-Closing Cost Refinance

While applying for a refinance house, lenders usually offer you a no-closing-cost refinance. By picking this option you merge your closing costs in the principal of the loan. In a no-closing-cost refinance you pay a higher interest rate and pay nothing while closing.

It may sound enticing although, you’d end up paying closing costs on the term of your loan anyway.  However, if you are selling a house early you might only pay a few dollars. A no-closing-cost refinance may be beneficial when you cash out your equity. It provides financial aid if you are selling your distressed home.

Choose To Hold Off On Your Refinance

It is always better to skip a refinance house if you are not planning to stay in it for long. It makes sense to hold off on your refinance when circumstances aren’t much favorable. Calculate the time you’d be living in the house to earn the money back from closing.

How does Refinancing work for your Home?

Refinancing your house involves many of the same steps as buying a home, but the process is often less complicated. While it can be difficult to predict exactly how long your refinance will take, most refinances are completed within 30 to 45 days. During this time, you’ll work with your lender to gather necessary documents and complete any required appraisals or inspections. Ultimately, refinancing can be a great way to lower your monthly mortgage payments or access equity in your home.

Let’s take a look at the process :

Application

Before applying for a refinance, it’s important to research and compare the different types of options available to find the best fit for your financial situation. Once you’ve decided on a lender, they will ask for the same information you provided when you first bought your home, including your income, assets, debt, and credit score. 

• You may need to provide documents such as your two most recent pay stubs, W-2s, and bank statements. 
• If you’re married and live in a community property state, your spouse’s documents may also be required. 
• Self-employed individuals may need to provide additional income documentation, and having your tax returns from the past couple of years on hand is a good idea. 

Keep in mind that you don’t have to refinance with your current lender and it’s important to shop around and compare rates and client satisfaction scores before making a decision.

Deciding Interest Rate 

When refinancing your loan, you may have the option to lock in your interest rate or float it. If you choose to lock in your rate, it means that the interest rate will remain the same until the loan closes. 

On the other hand, if you choose to float your rate, it means that the interest rate may fluctuate until the loan closes. It’s important to consider your financial goals and the current market conditions before making a decision.

Lock-In your Refinance Rates 

When refinancing your mortgage, it’s important to consider locking in your interest rates to avoid any potential market fluctuations. The length of the rate lock period can vary depending on your location, loan type, and lender, typically lasting anywhere from 15 to 60 days. 

Opting for a shorter lock period may result in a better rate, as the lender doesn’t have to hedge against market changes for as long. However, if your loan doesn’t close before the lock period ends, you may need to extend the rate lock, which could come with additional costs.

Float Your Rate before Locking In

When applying for a loan, you may have the option to float your rate instead of locking it in. This means that you don’t commit to a specific rate and instead take the risk of the rate either going up or down. 

While this may result in a lower rate, it also puts you at risk of getting a higher mortgage rate. However, some lenders may offer a float-down option that allows you to take advantage of lower rates if they become available. 

Ultimately, if you’re satisfied with the current rates, it’s generally a good idea to lock in your rate to avoid any potential rate increases.

Mortgage Underwriting

When you apply for a refinance loan, the mortgage underwriting process begins. This involves your lender verifying all of your financial information to ensure its accuracy. 

Additionally, the lender will verify details about the property, including its value, which is determined through an appraisal. The appraisal is a crucial step because it can impact the options available to you. 

For example, if you want to take cash out, the value of your home will determine how much money you can receive. If you’re trying to lower your mortgage payment, the value could impact your eligibility for certain loan options or whether you can get rid of private mortgage insurance.

Home Appraisal

When refinancing your home, it’s important to get an appraisal to determine its current value. Your lender will typically order the appraisal, which involves an appraiser visiting your property and providing an estimate of its worth. 

To ensure a favorable appraisal, it’s recommended that you tidy up your home and make any necessary repairs beforehand. Additionally, creating a list of any upgrades you’ve made to the property since purchasing it can help demonstrate its value.

After a home appraisal, your next steps will depend on the outcome. 

• If the appraisal matches or exceeds the loan amount you’re seeking for a refinance, the underwriting process is complete and your lender will provide details for closing. 
• However, if the appraisal comes back lower than expected, the loan-to-value ratio may be too high for your lender’s requirements. In this case, you can choose to decrease the amount of money you want to refinance, cancel your application, or opt for a cash-in refinance by bringing additional funds to the table to meet the terms of your current deal.

Closing On Your New Loan

After the underwriting and home appraisal are complete, the final step is to close your loan. 

• A few days before closing, your lender will provide you with a Closing Disclosure document that outlines all the final numbers for your loan. 
• The closing process for a refinance is typically faster than for a home purchase and is attended by the people on the loan and title, as well as a representative from the lender or title company. 
• During the closing, you’ll review the loan details and sign the necessary documents. Any closing costs that aren’t included in your loan will need to be paid at this time. 
• If your lender owes you money, such as in a cash-out refinance, you’ll receive the funds after closing. 

Once you’ve closed on your loan, you have a 3-day grace period before you’re locked in. If you need to cancel your refinance, you can exercise your right of rescission during this time.

Frequently asked questions about (FAQs) Refinancing

What is the cost of refinancing?

The cost of refinancing your home loan can vary depending on several factors, such as the lender you choose and the value of your property. Typically, you can expect to pay between 2% to 6% of the total loan amount. 

However, the good news is that you may not have to pay these costs upfront, especially since the adverse market refinance fee has been eliminated. Some lenders offer a no-closing-cost refinance option, which means you won’t have to pay any fees at closing. 

However, keep in mind that you may end up paying a higher interest rate over the life of the loan to cover these costs.

When should I refinance my mortgage?

Deciding when to refinance your mortgage requires careful consideration of various factors. One important factor is the current market trends, including interest rates. Your financial situation, particularly your credit score, is also crucial to consider. 

To determine if refinancing is worth it, use a mortgage refinance calculator to calculate your break-even point after accounting for refinancing expenses. It’s also important to understand how refinancing differs from other mortgage options, such as loan modification and second mortgages.

Is a second mortgage the same thing as refinancing?

It’s important to understand the difference between a second mortgage and refinancing. Refinancing involves replacing your existing mortgage with a new one, resulting in one monthly payment. 

On the other hand, a second mortgage, such as a home equity loan or HELOC, requires an additional monthly payment on top of your original mortgage. While second mortgages may have lower closing costs, they often come with higher interest rates compared to refinancing. 

It’s important to carefully consider your options and choose the financing option that works best for your individual needs.

Can I reduce my monthly mortgage payment without refinancing?

If you’re looking to lower your monthly mortgage payment without going through the process of refinancing, a mortgage recast may be a good option for you. This involves making a large lump-sum payment towards your principal balance, which allows your lender to recalculate your monthly payments based on the new, lower balance. This can be a straightforward way to reduce your monthly payments and make your mortgage more manageable.

How soon after closing can I refinance?

The timing for refinancing after closing on a mortgage varies depending on the type of loan and the investor in your mortgage. Some lenders may allow you to refinance as soon as 30 days after closing, while others may require you to wait 6 months or even a year. 

The frequency of refinancing also depends on factors such as the amount of equity you have built up and your current mortgage balance. It’s important to check with your lender to determine the specific guidelines for refinancing your mortgage.

Will refinancing my home affect my credit?

Refinancing your home can have a temporary impact on your credit score. This is because the lender will need to run a credit check and perform a hard inquiry on your credit history. 

However, as long as you continue to make timely payments on your debts and avoid opening new credit accounts, your credit score should recover within a few months. So, while there may be a short-term dip in your credit score, refinancing your home should not have a significant long-term impact on your credit.

Sell Your Home For Cash  

Refinancing your home may be flexible but in some cases, it may not be an ideal option.  If you are selling your distressed home, refinancing may not be worth it. Selling your home to a cash buyer is a better deal you can sell remodeled houses to Elite Properties New York and avoid the hassles of refinancing. Elite Properties is a ‘we buy houses for cash company’, which means we buy houses in any condition. You can sell your house fast for cash in NY and close the deal in less than a week. We buy property for cash and also pay the closing costs, which allows you to move faster with your plan. Call us today at 718-977-5462 to know more.

We know businesses around the world faced a hard hit due to the COVID-19 pandemic. The real estate market was great to hit & not left behind. Initially, in 2020 the housing market in the United States started with a good strike. Although, amidst March the coronavirus outbreak came into play; everything including job losses, economic slowdown due to closed business, and uncertainty in home sales waved across the nation. With homestay orders still in the uplifting process, you can see the ‘Impact of COVID-19 on Real Estate Prices Trend’.

Situations Post Covid-19 Pandemic            

As stated in the first week of April, the statics showed one million-plus positive cases around the globe with constant additions. The crises have impacted the global economy, and the unemployment rates have risen.  According to recent claims, the unemployment rate is approximately 30 million. This becomes the justified reason for the steep economy of the states and affected Real estate Prices Trend.

Regarding the real estate sector, the existing home sales witnessed an approximate 7.2% increase from February 2019 to February 2020 (sources). Furthermore, according to the National Association of Realtors (NAR), the recorded static gain was 6.5% in January and February 2020 combined. A joint report on new home sales from the U.S. Census Bureau and the Department of Housing and Urban Development (HUD) stated; that there was a mere drop in home sales by 4.4% since January 2020 (as per the current post-Covid-19 scenario). The home sales report on a year-on-year basis (2019-2020) shows a positive growth although; it started to tumble gradually starting from January 2020.

Housing Inventory Situation

The housing inventory has been quite low. As of February 2020, it went down approximately by 10% on a year-over-year basis. This apparently dropped the supply of housing. As the stay-in-house orders are in the reliving process it is still not possible to choose a house showing or walkthrough service. Although, a great option available for new home buyers is virtual tours. Sources specify the virtual tour requests in April made up one-third of the total requests as compared to the month of March.

A Complete Home Sales Analysis

As mentioned in the previous blogs, the best time to sell a house is from March to Mid-May. The reason being winters are gone and spring blooms, which accelerates the home selling process.  The new listings, as per the pre-COVID scenario were increased by 5% on a year-over-year average. Although the current status of the newly listed properties posts 29th March -5th April has decreased by 34% and 31% on a year-over-year basis (sources).  The percentage stands to be amongst the biggest declinations of this year. If the situation is prolonged, the bar may see a fall in inventory in the coming times.

There are two predominant scenarios in home sales namely V-shaped and U-shaped scenarios. The V-shaped scenario drops in the second quarter and recovers through the summer and the recovery stretches till the end of the year. Whereas, the U-shaped scenario shows the home sales to drop gradually with constant declinations extending through the end of the year 2020.  Not leaving behind, the Coronavirus has Pushed Mortgage Rates Lower, which has also made a great impact on the housing market.

What To Expect From Home Selling Or Buying?

Home selling or buying includes multiple processes to reach the end goal including paperwork, verification process, walkthroughs, etc. As the pandemic is still stagnant in place there are many changes that one has to adapt with respect to real estate.

• If you are looking to sell your house try pushing to the late summer or fall. As per buyers, home prices usually drop in colder months, making it the best time to buy a house.
• The closing process might witness a slowdown. Although, with digital walkthroughs and remote signings are still taking place. If you are a buyer or seller proceeding with transactions can be the best option.
• Use mortgage relief programs if you are a home seller and planning to pay off your mortgage. You may also qualify for mortgage forbearance if you’re unable to repay the monthly installments.

Additionally, to elude the lengthy home selling process you can get in touch with Elite Properties which will help in easy home selling. Also, we buy houses in an as-is condition which avoids the hassles of upkeep and repair without taking into consideration of Real estate Prices Trend. In such tight circumstances the most feasible option is to sell the home for cash with a cash buying company, call us today at 7189775462.

Selling a home is a daunting process, it is said to be a very exhausting period in a homeowner’s life. You need to know how to sell your house fast. The home selling process involves a lot of legal procedures and paperwork, which causes havoc. The whole phase is a combination of financial, physical, and mental concerns that an individual goes through.

In this catastrophic situation, we would like you to find out the 5 do’s and don’ts of selling your house fast.

Significant Do’s and Don’ts of How to Sell Your House Fast

Scroll down below to see the top 5 important do’s and don’ts that will accelerate the home selling process.

1. Repay Debts, Keep Legal Documents In Place

Do’s –

Firstly, it is important to keep your documents in order for the legal processes that will take place in the future. You will need documents like the sale deed, mother deed, and other mandatory documents required for selling the home. Additionally, it is highly advised to repay the outstanding encumbrances, which will help in building trust with the potential buyer.

Don’ts –

If you miss any important document while preparing to sell your house, you might be in big trouble. A missing document will prolong the sale and you won’t receive hefty profits on the property. If you misplace a deed the buyer will propose a lowballed price for your home, which is a big loss. Similarly, if you have any remaining debts, you must clear them off beforehand to obtain a decent credit score.

2. Preparing Your House For Sale

Do’s –

Shabby conditions are not acceptable, you must make the required improvements to convince buyers. There are multiple prerequisites that should be satisfied before you list your house for sale. Basic things like moving the furniture and spacing out the area will do the trick. Decluttering unwanted items will make your home look voluminous and airy, which eventually entices buyers.

Don’ts –

If you are carrying out improvements, you should keep in mind; that overdoing thing will not help. As repairs need a substantial amount of money, it also requires an ample amount of time. It is suggested not to overdo unnecessary repairs or improvements, as it will cost you a handsome amount of money.

3. Market And List Your Home

Do’s –

Marketing can create wonders. If you market a product rightly, it could lead to the right audience. Similarly, as is the case with real estate, if you do appropriate property marketing, it will reach potential buyers. To market, the property start clicking good pictures and writing a realistic description of the house, neighborhood, and nearby places. Furthermore, you can print flyers, post free advertisements online, print advertisements in newspapers, etc. By promoting your house, you are creating a community of buyers that would be interested in buying your property. Stress on promoting your property over the web, around 80% of home searches begin with surfing on the internet, so why not be a part of the digitalization?

Don’ts –

Marketing is to promote a product’s features and make people utilize it. While all this is true, people think fake assembly of descriptions and pictures would entice buyers. Absolutely not, by writing fake descriptions and staging your home, you are creating a fuss for the future. Fraudulent sales are subjected as crime, it is better to portray what is actually yours and keep yourself safe.

While calculating the value of your home, it is essential to set a realistic price for listing. Overpricing your home will lead to a loss and also it won’t lure buyers. Furthermore, do not trust the myth that selling your home in spring is the only option to acquire bigger profits. A potential buyer will buy your house in any condition if he or she likes it.

4. Get In Touch With A Real Estate Agent

Do’s –

Hire a real estate agent who knows the tricks of the trade. Make sure he knows about the locality, neighborhood, recreational areas, comparable properties, etc. A real estate agent will help in evaluating the actual price of your home and make your ship sail smoothly.

Don’ts –

A major mistake that most homeowners make is, that they rely on real estate agents very much. Although trusting isn’t wrong, the blind trust that people put in them could be scary. It is indispensable to conduct simultaneous online research to verify your real estate agent’s evaluations.

A Checklist To Look At, How to Sell Your House Fast

Apart from the given, there are many other aspects that are equally important as the dos and don’ts. We would like to provide you with a checklist that will help you in selling your home fast.

• Take suggestions and feedback from the real estate agent positively
• Calculate the fair market value of your property and then calculate the property’s worth
• Provide walkthroughs for potential buyers
• Do not hand over the original documents before registration
• Consult with companies that buy houses for cash for faster and more profitable deals
• Don’t keep on rescheduling appointments with buyers, they lose interest in the deal
• Repair sewage tanks and pipes
• Light scented candles and put flowers around the corners of your home, as curb appeal is important
• Take care of little things while providing a walkthrough, like keeping your pets out of sight from the buyers. Apparently, everyone is not a pet lover
• Put bright lights in your home so nothing goes unseen or unnoticed
• Don’t let the emotional roller coaster hamper your home sale

Our Concluding Words

While selling your house fast is a strenuous task, the above do’s and don’ts will make the process easier for how to sell your house fast. Keep the mentioned points in mind, rest assured you will close the deal positively. If you are living in New York and suffering from the same problem, get in touch with ‘Elite Properties‘. They moreover help you with other real estate crises and provide precise solutions. If you want to sell your house fast, inherit a home or get in touch with a real estate agent, call on this number 718-977-5462 and get your queries sorted.