Shark Tank Barbara Corcoran is often referred to as a shrewd investor. But if there is one thing she knows well, it is real estate. As the founder of the renowned real estate firm Corcoran Group, Corcoran is a great person to turn to for home buying advice. Here are three of her best tips.
6 simple tips to secure a 1.75% mortgage rate
Safe access to The Ascent’s free guide, which explains how to get the lowest mortgage rate when buying a new home or refinancing. The rates are still at their lowest level in several decades, so take action today to make sure you don’t miss the chance.
By submitting your email address, you agree that we will send you monetary tips along with products and services that we believe may be of interest to you. You can unsubscribe at any time. Please read our Privacy statement and Terms and Conditions…
1. Know your credit rating
If your bottom line is poor, it might be worth putting off your shopping plans and working to improve them. First, pay all incoming bills on time. Then, if possible, pay off your credit card debt – using a lower balance on your balance sheet will help you score points. Finally, check your credit report for errors, as some errors (not your overdue debts, for example) can lower your score.
2. Do not spend more than 30% of your income on housing.
Corcoran and other experts believe that housing costs should not exceed 30% of the salary you receive. This way you won’t overexert yourself and are less likely to be late on bills.
In this context, “housing costs” means more than just mortgage payments. Rather, this figure should include all predictable monthly housing costs for which you are responsible.
- Property tax
- Homeowners insurance
- HOA fees (if you are buying a member home)
- Private mortgage insurance (which you pay if you take a regular mortgage and make less than 20% of the down payment on your home)
If you are not sure what you can afford, use mortgage calculator to check the numbers before looking at houses. Enter different amounts of the down payment and the value of the house to understand what type of property you can rent out.
3. Don’t forget about closing costs.
Taking out a mortgage costs money. You pay appraisal fees, registration fees (for your mortgage to become a public record), and other fees, collectively known as closing costs… Typically, closing costs range from 2% to 5% of the loan amount. If you are taking out a $ 300,000 mortgage, you can pay between $ 6,000 and $ 15,000 to get this loan.
Most lenders will allow you to include your closing expenses on the mortgage and pay them off over time, but this increases your monthly payments. You might want to bring a check for these fees at your close if you can get it done.
Buying a home is a big step that needs to be approached strategically. So follow these expert tips from Barbara Corcoran and they will help point you in the right direction.