Barbara Corcoran can be a savvy investor in everything, but if there is one thing she really knows, it is real estate. As the founder of the highly successful Corcoran Group, a real estate brokerage firm, Corcoran has extensive knowledge when it comes to obtaining a mortgage and buying a house. Here are some tips she can share, courtesy of CNBC.
6 simple tips to secure a 1.75% mortgage rate
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1. Know what you can afford to spend.
When you buy a home, the last thing you want to do is take over too much at home… This can put you in an awkward financial position, not to mention the risk of losing your home.
Most financial experts advise that housing costs do not exceed 30% of the salary you receive. And under the “cost of housing” we are not just talking about mortgage… Rather, this figure should include home ownership costs you will probably be hooked. It should be:
Corcoran says you can follow the 30% rule when doing home searches. But she also suggests that you limit the amount you spend on your home to four times your salary. She insists that you usually qualify for a mortgage. However, this formula also assumes that you will receive 20% advance payment in your house. Some mortgage lenders when you close it will take less money.
If you really want to approach your home search with confidence, use mortgage calculator to find out what monthly payments might be based on different home purchase amounts. This, combined with Corcoran’s advice, should set you on the right path.
2. Choose your area strategically.
Home can be more than just a place to live. It can also be an attachment. Corcoran says that if you buy a home in a promising area, you can potentially get a much lower price than what you would pay in a more established area. This means that you can significantly lower your mortgage costs, while tuning in to higher profits as your area becomes more popular and property values there skyrocket.
3. Get pre-approved for your mortgage.
Receiving pre-approved for mortgage can give you a solid edge in any real estate market. When you enter with pre-approval letterThis shows sellers that you are a serious buyer with the means to provide the property they want to sell. And in situations where you find yourself in bidding war Compared to other buyers, pre-approval can actually be good for you.
Another plus is that after pre-approval of the mortgage, you will see exactly how much eligibility you are eligible for. This, in turn, can help you narrow down your search.
Although you may know Barbara Corcoran as an astute Shark Tank investor, this is the property on which she really made a fortune. Be you first home buyer or seasoned, these tips are worth keeping in mind as they can motivate you to make very wise choices.