How do you get the most out of your Prescott home purchase?

From Tom Henichek, a local loan officer at Mountain Mortgage

Well, for starters we have lower prices than anytime in the recent past, great interest rates and the possibility of seller concessions.  Every product today has at least a guarantee of 3% seller concessions.  So, if the seller will or cannot lower their selling price, they may allow some concessions in order to sell their home.

This is only one of the reasons why if you are thinking of purchasing a home, you should talk over your situation with a lender.  In today’s cash poor society, your lender can assist in this process.

 After all, if you need assistance with your closing costs, your lender will be the first to advocate for you.  The best way to document this is to come up with a figure for the seller’s contributions.

The 3% is based on the loan amount and if the contract states that the amount is for closing costs, some lenders may not allow the contribution for prepaid items i.e. interest, home insurance and property taxes.  With a specific amount stated and contributed, that money can be put toward prepaid items or be used to buy down your interest rate. 

Today, the spread between interest rates is lower than at any time in the past and this option may be worth considering.

The credit system is ripe for errors and something from your past may still be lurking on your report even though you thought it was corrected.  With the number of foreclosures, credit reports are weighed heavier than at any time in our history.  Being pre-approved for a purchase will cost you nothing but time and will put your mind at ease when the time arrives for you to make your move.

For more information about the current financing market or to get pre-approved, call
Tom 928-775-9330 or email him at tomhenichek@cableone.net.

Fico Scores/Reports