Living in Chicago: The Best Decision You’ve Ever Made

Chicago is located centrally in the Midwest with access to the rest of the world by way of Chicago O’Hare, but, it has so much to offer you never have to leave. Offering everything from nature to culture to affordable Midwestern living, Chicago is a great place for anyone to call home. Anyone who is thinking about making the move could ask Chicago mortgage companies what the Midwest has to offer.

Here are some of the best things Chicago has to offer:

  1. Water –Chicago has a gorgeous, recognizable skyline, with skyscrapers proudly Living in Chicagoemphasizing the waters of Lake Michigan. Another view of the skyline is at stunning Montrose Harbor. The shore goes on so long, bordered by beautiful Lakeshore Drive, that it feels more like the city is near an ocean. The Kathy Osterman Beach is a real beach known for being peaceful, relaxing and less busy than other big city beaches. For a relaxing ride, you can pay $3 and float along the Chicago River on a water taxi from the Loop to Chinatown.
  2. Art and Culture –The Art Institute is one of the best, oldest and largest art museums in the United States, keeping such treasures as original works by Pablo Picasso, George Seurat, and Grant Wood’s American Gothic. Even the Harold Washington Library, which is the main public library, is known for both its collection and the amazing architecture of the building. Many structures and buildings in Chicago are famous for their unusual and beautiful architecture, including The John Hancock Building and Buckingham Fountain. The Sears Tower, now known as The Willis Tower, is 108 stories and allows tourists to go to the top to get a Chicago view.
  3. Science museums –These are the kinds of museums which are as interesting to an adult as to a child, and they are one of the reasons Chicago is such a terrific place to raise a family. The Chicago Nature Museum offers workshops and classes, not just exhibits to look at. Shedd Aquarium advertises 32,000 amazing animals with more hands-on activities. There are several more, but The Museum of Science and Industry is very popular and has everything from a coal mine to a model railroad to a German submarine.
  4. Sports– Do you like hockey? Check, Chicago has the Blackhawks. Do you like basketball? Check, Chicago has the Bulls. Do you like baseball? You may have heard the Chicago Cubs won the World Series last year.
  5. People – The people in the Midwest are friendly and open, like most Midwesterners. This is one of the ways you can get the advantages of a big city without sacrificing something which is more common in smaller towns. People in Chicago will have a conversation with a stranger and be happy about it.
  6. Home Affordability – Homes are more affordable than in much of the rest of the country, even though Chicago is a big city. But even though the price is smaller, you’ll still get more for your money so you’ll have room for that family you want to raise surrounded by art, culture and festivals. A Chicago loan brokercan get pre-approval for first-time home buyers to make the process convenient and easy, and offer potentially better rates.Moving to Chicago would be the best thing anyone could do. The city offers everything anyone could want, including four seasons in the year. With Online Mortgage Pre-Approval, you can prequalify for a home loan so you can get started finding the best home as soon as possible. At A and N Mortgage, we are a Chicago Mortgage Broker that can offer First-Time Home Buyer Pre-Approval. Call us to find out more about our services at 1-773-305-5626.

     

    Sources

  7. http://tourist2townie.com/culture-food/7-reasons-why-chicago-is-the-greatest-city-in-america/
  8. http://www.chicagotribune.com/tic_realestate_buying_besttime-story.html
  9. https://www.buzzfeed.com/jonmichaelpoff/reasons-chicago-is-the-greatest-city-in-the-world?utm_term=.fuDOnrGoZ#.gpNLAbowM
  10. http://grownuptravelguide.com/chicago-best-city-in-usa
  11. http://livability.com/il/chicago/attractions/11-reasons-why-chicago-is-an-amazing-place-to-live

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How to Compute Real Estate Tax Proration and Tax Credits

Tax proration refers to the allocation or dividing of certain money items in the settlement sheet for real estate property transfer. An attorney, professional real estate salesperson, or mortgage broker Chicago performs the proration calculations at the closing and determines what amount of property taxes each party (seller and buyer) is supposed to pay. The seller of the property is supposed to pay taxes from New Year’s Day up to the date of the transfer. The buyer then assumes responsibility for the tax payments from the date of the transfer onwards.

Most items are easy to prorate and assign the calculated amounts to the buyer and seller in a real estate transaction. However, property taxes sometimes pose a change in the calculations because they tend to change from one fiscal year to the other without notice. The settlement statements can be lengthy and include itemization amounts, particularly those proration amounts affecting both the buyer and seller.

Before we look at an example of how a real estate tax proration calculator or calculation is done, here are just a few steps that help summarize the whole process for easier understanding;

  1. When computing tax proration, you start by determining the real estate taxes for the property during that year. The seller should produce a copy of the tax bill.
  2. They should then determine/calculate the number of days that the seller has owned the home during the property tax year, excluding the sale date.
  3. Divide the number of days you get from step 2 with 365 (total number of days in a year) in order to get the percentage of days during which the seller still owned the home during the property tax year.
  4. Take the percentage from step 3 and multiply it with the total property tax bill. The amount you get is what the seller should have paid in property taxes. If he has not yet paid this amount, the seller must reimburse you for the difference between what he is required to pay and what he has actually paid.
  5. Subtract the figure you get in step 4 from the total property tax bill and the difference is the prorated amount you are required to pay at closing as the buyer.

Note: As a buyer if you are itemizing deductions, you can claim tax credits for all the prorated tax amount on the property even if you were not required to reimburse the seller for the property tax already paid. Also, make sure to keep the closing statement safe because it may be required in the future as evidence that you paid your share of the property taxes.

Now let’s look at how to compute real estate tax proration in Chicago;

An in important point to note before beginning this computation is that the tax collections in the State of Illinois are set back one year. This is as a result of the one year property tax holiday granted by the State of Illinois during the Great Depression of the 1930’s.

Computation example;

Let’s assume that the tax bill provided by the seller for the first half of 2015 (Jan 1, 2015 to June 30, 2015) is $2,000. Because the bill is delivered almost a year after the period when the tax was incurred, the taxpayer does not know what his tax bill will be when property tax is actually being incurred. Therefore, he can only approximate his bill based on the previous tax bills.

So how does that apply?

When you buy some residential real estate property in Chicago, maybe with the help of a mortgage company, clear title is provided and all taxes that can be paid on it are paid up on the closing day. However, because we have mentioned that tax bills come out one year later after they are due, there will be an entire year of property tax liability that is unpaid and its actual bill unknown!

Here is how to go about the calculations;

If you make an offer to purchase a home in Chicago and the offer is accepted on June 1, 2016, considering that the closing date is September 30, 2016 and the full year tax bill for 2014 is $4000;

  • We will first calculate the estimated tax liability up to the closing date;

1st half of 2015 tax bill is $2200 (must be 55% of the full bill from the prior year i.e. 55% X 4000)

2nd Half of 2015 tax bill (unknown)
1st Half of 2016 tax bill (unknown)
Partial 2nd Half of 2016 tax bill (unknown)

The contract should call for a proration premium which is typically 105% or more. In this contract, the amount is 105%.

  • We then estimate the 2015 full year tax bill by simply multiplying the 2014 bill with 105%

$4000 X 1.05 = $4200

To find the amount for 2nd half of 2015:

We take $4200 (total estimated 2015 bill) and less the $2200 already paid for a credit of $2000 to be given at closing for this half.

  • To figure out our estimated 2016 full year bill, we simply multiply the 2014 bill with 105%.

$4000 X 1.05 = $4200.

For 2016, you will be paying half of the $4200 for the period 1/1/2016 to 6/30/2016 i.e. $2100

For the period 7/1/2016 to 9/30/2016 you would pay the fraction of;

((31+31+30)/365) x $4200 =$1058.64.

  • So, our closing statement will show the following credits;

2015 taxes 1st half: Paid
2015 2nd Half Credit: $2000.00
2016 1st Half Credit: $2100.00
2016 2nd Half Credit to 9/30/2016: $1058.64.

NB: In case you do not have a full year tax bill available and must create a base tax amount from scratch, consult your mortgage broker Chicago for advice. Normally, new homes that have no tax records yet in Chicago use 2% of the purchase price for computation because it is the approximate annual maximum tax rate in the city.

There may be many Chicago mortgage companies at your choice, but none of them delivers like A and N mortgage! We offer you all the relevant advice relating to your home purchase for a smooth transaction process. Call us today for consultation at 312-793-3000 and ask any questions you may have about tax proration and tax credits.

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Received a Tax Bill and Not Sure What to Do with It?

You pick up the mail one day and, suddenly, you see it: the dreaded property tax bill. Unfortunately, taxes stress you out, and you’re not really certain what, if anything, you’re supposed to do with it. Fear not! In this post, we’ll discuss what steps you should take to resolve your confusion and get your tax bill paid on time.

Did You Escrow Your Taxes with Your Mortgage?

If you’re not familiar with the term “escrow,” it refers to the holding of funds by your Received a Tax Bill and Not Sure What to Do with Itmortgage lender specifically for the use of paying taxes and/or insurance each year. This way, rather than dealing with multiple mortgages, tax, and insurance bills, everything is rolled into one total and split across your monthly mortgage payments.

One of the benefits of this is that you don’t have to worry about paying your property taxes manually each year. Instead, your mortgage lender will automatically make a payment from your escrow account. Only if your taxes were previously underestimated will you need to pay any additional money. If it turns out that you’ve overpaid, your lender will usually send you a check for the excess.

If you did escrow your taxes, take the following steps to deal with your tax bill:

  1. Send a copy of the tax bill you received to your mortgage lender.
  2. Take a look at the escrow balance and note how much is currently in your escrow. The following month, check the balance.
  3. Confirm that new balance shows that the amount of the tax bill has been subtracted from your previous escrow balance.

If you did not escrow your taxes with your mortgage payment, there is only one step:

  1. Pay your tax bill in full per the instructions provided on the bill.

If you’re not certain whether you escrowed your taxes with your mortgage payment, take the following steps to confirm:

  1. Take a look at your last mortgage statement and look for anything showing an escrow account.
  2. If you do see an escrow account, check to see if you are escrowing for taxes and insurance.
  3. If you do not see an escrow account, it is probable that you did not escrow your taxes with your mortgage payment.
  4. If you’re still not sure after looking at your mortgage statement, call your lender and talk to one of their mortgage professionals to help you determine whether your taxes will be paid by escrow or by you separately.

Make Home Finances Easy with A and N Mortgage

Make your mortgage and escrow process a snap by borrowing with A and N Mortgage. From application to funding, all of our services are managed under one roof, making for a streamlined loan process and quick turnarounds and a great customer experience.

To learn more about our lending services and exceptional rates or to get pre-qualified for a home loan, contact our friendly staff today at (773) 305-LOAN.

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Insane (but True) Facts About Living in Chicago

Insane (but True) Facts About Living in Chicago

The “Windy City” is famous for all kinds of things: the “bean,” the “L,” former President Barack Obama … it’s a place packed with history and excitement. Still, Chicago can be pretty weird. Take a look at a few crazy facts that set the city apart from the rest.

  1. Ketchup Is Not for Hot Dogs

There is absolutely no place for ketchup on a hot dog within the city limits of Chicago. A proper hot dog has only 7 toppings: diced onions, tomato slices/wedges, pickled sport peppers, a bit of celery salt, and sweet pickle relish (which must be so bright green that it looks like it could glow in the dark). Anyone caught adding ketchup to a hot dog will be executed—at least in the minds of offended Chicagoans.

  1. Chicago’s Annual “Taste of Chicago” Food Fest Is the Largest of Its Kind

“The Taste” is not only the best outdoor food festival in the world, it’s also the biggest. This isn’t necessarily weird, but the sheer size and popularity of the thing are what classifies it as “insane.”

  1. Chicagoans Are Basically Living in the Real Gotham City

According to Batman comic artist Neal Adams, the city of Chicago seems to be the primary inspiration for the design of the famed Gotham City. Although other major locations like New York, Pittsburgh, L.A., and Detroit have had a hand in its creation, Chicago is obviously the best and most important influence.

  1. Deep Dish Pizza Is Life

If you live in Chicago, there’s no escaping the cultural importance of a true Chicago-style deep dish pizza (and no, Dominos, that’s not just a really thick regular pizza). Real deep dish involves a buttery crust and a thick layer of cheese topped with slightly sweet tomato sauce (with or without Italian sausage). Sure, you can eat pan or thin-crust pizza, but it will cost you a bit of your soul. Don’t even think about eating New York-style pizza in Chicago. That’s just wrong.

  1. It Will Always Be the Sears Tower

All Chicago residents know that the famous tower overlooking the river is called the Sears Tower, and will never be recognized under that other name. It’s one of the worst rebranding tragedies since Marshall Field’s fell to The-Department-Store-That-Shall-Not-Be-Named.

  1. The River Flows Green on St. Paddy’s Day

No, it’s not the work of a magical leprechaun, nor is it the result of some sort of illegal toxic dumping. Every year around St. Patrick’s Day, city officials dye the water of the Chicago River green with dozens of pounds of vegetable dye. Sure, it’s weird, but it sure is festive! Don’t worry. Because it’s a natural vegetable-based dye, it’s harmless to the environment.

 

It’s Not Actually All that Hard to Find a Great Place in Chicago

The city has plenty of fabulous properties for sale and, with the right mortgage company, you can get the financing you need with none of the run-around. A and N Mortgage in Chicago is a mortgage lender focused on guiding you from application to funding with ease. Learn more about what A and N Mortgage can do for you by calling (773) 305-LOAN.

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Top Trends That Will Shape the Housing Market

The housing market is changing all the time. In order to make judgments regarding the market’s overall health and forecast changes to things like mortgage rates, property values, and inventory availability, real estate professionals like to keep an eye on current trends. In this post, we’ll explore five of the major trends to watch in 2017.

  1. Rising mortgage rates and decreased affordability:

As a result of rising interest rates from the Federal Reserve, mortgage rates are likely to Top Trends That Will Shape the Housing Marketrise in 2017, causing trouble for prospective buyers seeking a loan. Realtors are generally concerned about decreasing home affordability, taking over the former top concern of low inventory. Inflating home prices and slowing economic growth combine with the rise in mortgage rates to create new financial worries.

  1. Continuing growth for medium-sized cities:

For much of recent history (during the last period of economic recovery, that is), a lot of the real estate growth has occurred in the largest cities (New York City, San Francisco, etc.) due to the promise of well-paying career opportunities. However, this has also driven up property costs.

For this reason, young people have begun to turn to slightly smaller, mid-sized cities where opportunities and modern comforts are still plentiful but prices are far more affordable. This trend is expected to continue throughout 2017.

  1. Increased credit:

Because lenders’ mortgage lending standards have begun to loosen up again, somewhat, mortgage credit is expected to become more available in the coming months. This is likely to be beneficial for first-time homebuyers for whom rising mortgage rates could become an issue.

  1. Foreign buyers will continue to play a role:

In major metropolitan areas like Los Angeles and New York, large parcels of real estate have been picked up more and more by foreign buyers—particularly from China. These buyers are looking for foreign places to store wealth and earn good returns, which they can’t necessarily do back home. This influx of foreign buying is another reason real estate in those areas keeps rising in price.

  1. An increase in new homes:

In just the last couple of years, the construction of new homes has increased significantly. Between 2015 and 2016, data shows that the annual average rate of new construction rose by approximately 5%.1 This trend is expected to continue throughout the next year.

 

Finance Your Dream Home with A and N Mortgage

If you’re a prospective homebuyer looking to get a home loan with a decent rate in a good market, now is the time! A and N Mortgage is a unique mortgage lender that does everything under one roof—ours. From initial online mortgage pre-approval, all the way through to funding, we make sure you get what you need with great efficiency and customer service.

To learn more about what A and N Mortgage can do to get you into your next home, call us today at (773) 305-5626.

 

Source

 http://fortune.com/2016/12/29/real-estate-trends-2017-2/

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The Ultimate Home Buyer’s Checklist

Buying a home is one of the most important investments you will make in your life. It can seem like an overwhelming process, but going in prepared will not only allow you to find the perfect home, you will also be able to put your family in the best position moving forward. Working with a detailed checklist ensures that you consider every aspect of your purchase before making an offer.

For example, noting that the asking price does not include monthly homeowner’s association dues helps you stay within your budget. You can also keep track of details such as the number of bedrooms and bathrooms, and notes that you have about the neighborhood, such as nearby schools and other amenities.

A checklist allows you to plan out your potential mortgage payments ahead of time so you know which properties fit all of your requirements. When you are choosing between various homes that you’ve seen, being able to reference your checklist and notes is invaluable. Learn more about creating your checklist in our infographic.

The Ultimate Home Buyer’s Checklist Infographic

Click below to embed this infographic into your website:

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Simple Tips for Saving on Property Taxes

Property taxes are an unavoidable part of home ownership. Although you can’t choose to not pay them, there are some ways you can reduce the amount of property tax you pay. Take a look at a few simple options to ensure the fairest home value and most affordable tax bill.

 

Request to View Your Property Tax Card

All the information about a property that goes into assessing its value for tax purposes (lot size, building dimensions, home fixtures, special features, home improvements, etc.) is present on what’s known as a property tax card. These cards, available from the local assessor’s office, can be requested by homeowners at the town/city hall.1

Once you obtain a copy of your property tax card, look for any possible errors in the information listed. If you find anything that doesn’t look right, bring it up to the tax assessor. He or she will then decide whether or not to simply correct the card or fully reassess your home.1

 

Don’t Build Any Additions

Adding new permanent fixtures or making major improvements to your property can raise the value of your home. Though this might sound like a good thing, a higher home value means higher property taxes. If you’re looking to save on property tax this year, it’s best to wait before making those additions.

 

Work with Your Tax Assessor to Ensure a Fair, Accurate Valuation

Although it’s not absolutely required to allow the tax assessor into your home, it may not be a good idea to prevent him or her from seeing the interior, either. If the assessor is forced to make decisions based solely on the outside of the house, your house may be given an inaccurate value.

It’s also important that you accompany the tax assessor throughout the home so that you can provide information and point out aspects of the home that may lower its value (and, with it, your property tax).

 

Compare Your Home’s Assessed Value to Those of Your Neighbors

Just as you can obtain your own property tax card from the tax assessor’s office, you can also view public information about your neighbors’ properties. Take a look at the values and details of other homes in your neighborhood and take note of any issues that you believe should lower your taxes.

If your neighbor has a similar home to yours with additional improvements (like a new deck or shed) but, somehow, has a lower value, you’ll want to bring this to the attention of the tax assessor. If deemed appropriate, he or she will conduct a reassessment.

 

Start Your Journey into Home Ownership with A and N Mortgage

Before you worry about property taxes, make sure you get the best, most affordable mortgage loan for your needs with the help of Chicago mortgage company A and N Mortgage. Our dedicated professionals will walk you through the loan process, from application all the way through escrow.

To learn more about how A and N Mortgage can help you apply for a home loan to purchase the house of your dreams, contact us today at (773) 305-LOAN.

 

Source

  1. http://www.investopedia.com/articles/pf/07/property_tax_tips.asp

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Five Predictions for the 2017 Mortgage Loan Market

Near record-low mortgage rates makes now a great time to purchase a home, but the Five Predictions for the 2017 Mortgage Loan Marketmortgage market can turn on a dime, and pressure on the Fed to raise rates and the incoming Trump administration are throwing some variables into the mix.

No one can tell the future, but years of experience have given Chicago mortgage brokers insight into historical patterns and key indicators. For the upcoming year, mortgage lending experts have identified the following trends:

  • Rates will increase – Rising wages and an improving labor market is putting pressure on the Fed to raise interest rates. Mortgage experts are predicting that average rates for 30-year mortgages will rise to 4.2 percent in 2017 and 4.6 percent in 2018.

It’s inevitable that interest rates will rise. The Great Recession saw them plunge to historic lows as the Fed used rate-cutting to prop up a moribund economy. Now that the gradual recovery that began in the late 00s is accelerating, the time has come for rates to rebound.

  • Expect privatization of Freddie Mac and Fannie Mae – With a Republican president and GOP majorities in both houses of Congress, it’s highly likely that Fannie and Freddie will be privatized, a long-held goal of Republicans who wish to reduce the government’s involvement in the housing market. Steven Mnuchin, nominated by President-Elect Trump to be Treasury Secretary, has Home prices may dropalready indicated that he will push for privatization. Privatization could cause headaches for some potential buyers, as Fannie and Freddie are the primary guarantors of 30-year mortgages, the most popular mortgage product.

 

  • Home loans may decrease – It stands to reason that higher rates will make some potential home buyers leery of pulling the trigger on taking out a mortgage. A recent rise in rates has already had a negative impact on loan originations and refinancing. A recent report from the Kroll Bond Rating Agency predicts that origination volume will drop by 20 percent in 2017.

 

  • Home prices may drop – The silver lining to higher rates and fewer loans for home buyers may be lower prices for homes. If rates increase appreciably and fewer people are in the market for loans, sellers may have to reduce prices to sell their homes. As of November 2016, the median home price – the price that half of all home prices are above and half of all prices are below – was $234,900.

Right now could be the best time to purchase a home before various changes bake into the mortgage market. Your individual financial situation will likely be the deciding factor on whether now is the right time to apply for a home loan.

Chicago mortgage brokers with A and N Mortgage can help prospective home buyers find the best mortgage programs for their individual financial situations. A and N Mortgage will take an in-depth look at your finances and offer expert guidance for navigating the confusing world of mortgage loans. In addition to these services, the company also provides real estate buying and selling assistance to clients.

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10 Reasons the Amish Are Right About Mortgages

Financial savvy is hardly the first thing that most of us think about when we think of the Amish. Known for their rejection of technology and their simple, down-to-earth lifestyle, 10 Reasons the Amish Are Right About Mortgagesmany may find it hard to believe that their philosophy on making and handling money could make them experts on something as complex as getting a mortgage.

On the contrary, their practical approach to managing finances has resulted in financial success for a number of Amish – and even Amish millionaires are not unheard of. It only stands to reason that if Amish businesses don’t fail, they probably don’t have problems obtaining and paying off mortgages, either.

Following are ten reasons that the Amish get it right when they do turn to mortgages to finance their homes.

  1. Debt Is a Tool, Not a Crutch – According to Get Rich Slowly, there are some Amish who do use credit cards as a convenience to pay for the things that they need, and not as a means to purchase things they couldn’t otherwise afford. Having a credit history can help them when they apply for a mortgage. The right mortgage lender will offer loans to accommodate the needs of a variety of clients.
  2. Debt Is a Motivator to Succeed – Even the hardworking Amish may need a Debt Is a Motivator to Succeedlittle extra incentive to get out of bed in the morning. When they know they must work to make money and pay the installments on their mortgage, it gives them the incentive to work harder.
  3. To Buy the Family Farm(s) – Farming is a popular type of business for the Amish, and often one that parents pass on to their children. With an average of six children per family, according to Exploring Amish Country, it is easy to see why the majority of each generation will have to determine how to purchase the farm and land to carry on the tradition.
  4. They Approach Spending Money According to the LongTerm – The Amish don’t believe in spending money on items that are unnecessary or which aren’t valuable. A mortgage is a long-term loan, and it has the lowest interest rates of any type of loan you can get. What’s more, the purchase of a home is an investment that will last forever and be valuable to the next generations.
  5. They Have the Savings Needed to Make a Significant Down Payment – Unlike the average American who only manages to sock away 6% of their overall income, it isn’t unusual for the Amish to save more than three times that much. When they go to a mortgage company to take out a mortgage for their new home and/or farm, they have enough to make a significant down payment that will make their payments more manageable.
  6. They Are Credit-Worthy – Generally speaking, the Amish don’t like to be in debt, and they are willing to work hard to make their payments. They are more likely to take on an extra part-time job to make ends meet than turn to other methods of credit to compensate for the amount of income going toward their payments. Rarely will an Amish person fail to pay back a debt.
  7. No Worries over Job Loss – Nothing is more devastating than making a large purchase and then losing your job. Thanks to the skills of the Amish to perform a wide range of trades, they never have to worry about getting a pink slip in their mailbox. They are very resourceful, and their crafts are in high demand.
  8. The Amish Have Fewer Financial Obligations for Necessities – Hand-me-downs are common among the Amish, with many new purchases coming from thrift stores or bought at garage sales. Clothing items that can no longer be worn are recycled into something else, such as quilts or rugs. They have less money going out for items that we buy on a regular basis, making their loan payments less of a burden.
  9. They Don’t Spend Money on Fast Food and Dining Out – Nasdaq explains that Americans spent more than $52.5 billion at bars and restaurants from 2015 to 2016. Not only do the Amish usually eat home-prepared meals, but they are largely made from organically grown foods they have grown themselves.
  10. They Don’t Turn to the Government – Many Amish live on an income that is below poverty guidelines, but they are not likely to turn to government programs for assistance. As a result, they have an exemption from paying into Social Security. Combined with the frugality that they use in every area of life, they end up with a bigger net income than most of us who make twice as much.

Granted, most of us don’t live the frugal lifestyle of the Amish, but we can do more to improve our finances that will make us better candidates when we decide to apply for a mortgage. To get your free quote, call A and N Mortgage today!

Sources

  1. http://www.getrichslowly.org/blog/2010/05/06/three-things-the-amish-taught-me-about-money/
  2. http://www.exploring-amish-country.com/amish-family.html
  3. http://www.nasdaq.com/article/heres-what-the-average-american-spends-on-restaurants-and-takeout-cm728270

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12 Myths About Mortgages Everyone Thinks Are True

First-time home buyers often get their information second-hand from others who have already been in their shoes. Unfortunately, recycled information often gets passed along that is as much myth as it is factual.

When it comes to getting a mortgage, there is no room for error. Even a seasoned homeowner who has been paying off their first mortgage for years may find that many of the facts that applied to their first mortgage are no longer true, especially following the housing crash a few years back.

Before you start doing the paperwork with a mortgage company you don’t know, take some time to separate fact from fiction so that you get the terms you expect from your mortgage. Buying a house is too big of an investment not to have the facts going in.

Myth vs. Fact

  1. “It’s a Bad Market for Buying” – Buying a house is kind of like the decision to have kids; if you wait for the perfect time, it will never happen. The factors surrounding the house and your situation are what determine whether it’s a bad time to buy or not.
  2. “Zillow Home Value Estimates Are Accurate” – The reality is that while you can get a reasonable estimate based on the neighborhood and other data regarding the home, it isn’t as accurate as a valuation.
  3. “I Need 20% of the Overall Value as a Down Payment” – You can get mortgages for less, and even those that require no down payment. The fact to keep in mind is that the less you pay down, the more interest you will have to pay. To get this translated into numbers, use the A and N Mortgage company calculators to estimate your payments and see how much down payment you really need.
  4. “Mortgage Rates Are Too High” – Maybe, but they are also on the rise. Wait, and you can expect to pay more.
  5. “There Are No New Homes Being Built” – If you can’t find a new home being constructed in your area, talk to a realtor about the areas where builders are focused on new construction.
  6. “Homes Are Highly Overpriced in Today’s Market” – Some potential home buyers believe they can’t afford mortgage payments on their budget. The fact is that low-interest rates and home prices that have remained steady for the last few years have made buying a home affordable for most people in the middle-income range.
  7. “I Can’t Get a Mortgage with Poor Credit” – Mortgages aren’t a One-Size-Fits-All solution. Imperfect Credit Programs provide mortgages that help re-establish credit. They aren’t right for every person or situation, but they may be ideal for some.
  8. “No Credit Score Means No Negative Credit Report” – Just as too much debt can hurt you, not having any credit can do the same. If you have never needed to use credit before, you may need help proving your creditworthiness to a mortgage lender.
  9. “My Debt Ratio Is Based on the Amount of Money I Bring Home” – Actually, it is based on your gross income before deductions. Make sure the mortgage payment you get is one that really fits into your overall budget.
  10. “Paying Off a Previous Mortgage Early Will Improve Your Chances of Approval” – Mortgages are meant to be long-term loans. Paying off the balance early won’t help your chances of getting approved for a new mortgage – but it won’t hurt your chances, either.
  11. “Unsettled Debts Will Keep Me from Being Approved” – The fact is that – most of the time, unless the debt is excessive – you can probably get away with a few old collections as long as you have a decent credit score. Underwriters don’t usually worry about medical debts that have gone unpaid since most people will do what is necessary to get well.
  12. “Other Purchases Won’t Interfere with My Mortgage Application” – Many borrowers don’t realize that their credit will get pulled again prior to closing. Any other purchases you have made will be included, and they can go against the final decision.

The key to having a positive house-buying experience is to get the mortgage that is right for you and your circumstances. To learn more about your financing options or to get a free quote, call A and N Mortgage at 773-305-LOAN.

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