Benzinga Money is a reader-supported publication. We may earn a commission from the advertisers associated with this article. Read our Advertiser Discloser.

Surgical imaging is a key part of any operation, as it provides surgeons with internal images to get a better idea of a patient’s condition. These images, however, come at a price. Traditional 3D imaging exposes patients to high doses of radiation and can be time-consuming, whereas 2D imaging uses less radiation but provides a less precise picture. 

One medical company is looking to change that, and has already been successful in doing so at some of the nation’s top hospitals. 

nView medical is advancing surgical imaging with AI-powered image generation technology focused on precision, efficiency, and safety. The FDA-cleared nView s1 system has been used in over 500 surgeries across leading U.S. hospitals, with the goal of reducing radiation exposure and enhancing accuracy. 

The company is backed by $8.5 million in venture capital, grant, and angel investor funding, a leadership team with decades of med-tech experience, and eight granted patents. 

Providing New Imaging to Surgeons Across the U.S. 

The awareness that radiation emitted from imaging devices is a concern for doctors and patients is increasing, especially when dealing with children and with 3D imaging. Since its early days, Utah-based nView medical focused its mission to make pediatric surgeries safer, faster, and consistently accurate.   

In 2019, the FDA cleared the company’s first imaging device, the nView s1 system. It uses 5.5 times less radiation than typical 3D imaging, and eliminates the need for rotating scanners. This speeds up the process for doctors, leading to improved patient care and outcomes. 

The first pediatric spinal surgery using the system was performed in late 2020 at Children’s National Hospital in Washington DC. It’s now being used in top-tier pediatric hospitals across the US, like Stanford Children’s, Texas Scottish Rite, and St. Louis Children’s. The company  recently celebrated its 500th operation.

“I still vividly remember our first surgery using our system,” nView medical Founder Cristian Atria said after the 500th surgery performed with the nView s1. “That experience reinforced our mission to make surgeries safer for patients, and reminded me why we started this venture. Now that we have surpassed 500 surgeries with the nView s1, it feels that our mission is becoming a reality!”

After proving itself in the $250 million pediatric surgical imaging market with more than $1 million in revenue, the company announced in April 2024 its first adult spinal surgery using the technology and now plans to expand into the $6 billion U.S. adult surgical market. There’s also a potential to break into the broader $10 billion X-ray and CT medical imaging market. 

Join the AI Imaging Revolution 

Already backed by millions of dollars in grants and private funding, nView medical is now opening to everyday investors who believe in the company’s vision of transforming surgeries in operating rooms everywhere. 

“Now, for the first time, anyone can be part of this journey, helping us expand access to AI-powered low-dose 3D imaging technology,” Atria says. 

The company, which has a $30 million valuation, is looking to raise funds to accelerate its research and development and commercialization. 

nView’s cutting-edge imaging technology has already been used in over 500 successful surgeries and is backed by leading institutions like the NIH and Mayo Clinic. Now, investors with $100,000 or more in investable assets have the rare chance to get in early on this med-tech breakthrough, with a minimum investment of just $350.

Benzinga is compensated for publicizing this content. Please read 17b disclosures here.

Disclaimers

Please be advised that alternative investments carry a risk of monetary loss. Neither Benzinga nor its staff recommends that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. All information contained on this website is provided as general commentary for informative and entertainment purposes and does not constitute investment advice.

Benzinga will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on this information, whether specifically stated in the above Terms of Service or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

1 Offering is made available through StartEngine Primary, LLC via Reg CF. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and the issuer. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. Benzinga may receive monetary compensation from the issuer for publicizing the offering of the issuer’s securities. 

This content is for informational purposes only and is not intended to be investing advice.

The post This AI Imaging Technology Has Been Used in More than 500 Surgeries. Now, You Can be Part of the AI Imaging Revolution.   by Anthony O'Reilly appeared first on Benzinga. Visit Benzinga to get more great content like this.

Buying a house with no money down is often done with the assistance of a government-backed loan. 

Most people recommend saving up for a 20% down payment on a house, but many Americans struggle with saving up that much while also paying their rent and other expenses. This might lead some to ask the question, “How to buy a house with no money down?” 

“There are zero-down mortgages out there that can allow people to buy a home without a downpayment,” says Adam Hamilton, co-founder of REI HUB, an accounting software for rental property owners. “These kinds of mortgages tend to be best for those who have a great income but perhaps haven’t had the opportunity to save up over the years for a downpayment.” 

In this piece, we’ll walk you through the process of buying a house with no money down and the benefits and potential downfalls. 

How to Buy a House with No Money Down

Buying a house can be a daunting task, especially if you don’t have the money for a down payment. But there are ways to purchase a home with no money down and it all starts with understanding the requirements for a no-money-down home purchase.

1. Reevaluate Your Finances

Even if you’re looking for a no-down-payment mortgage, you’ll still need to have your finances in order to qualify for homeownership. This means having a credit score of at least 620, possibly higher depending on the lender. You also must have a stable income and enough money saved up for closing costs and other expenses associated with buying a home.

“Understand that your payments will be higher with zero-down mortgages,” Hamilton adds. 

2. Consider Your New Home Carefully

Another important consideration is the location and condition of the home you want to buy. If you’re not looking for a brand new home, you may need to consider a fixer-upper that requires renovations before you can move in. You’ll want to work with a real estate agent who can help you find the right home and navigate the purchasing process.

3. Get a Zero-Down Loan

Most zero-down loans come in the form of a government-backed loan, such as a VA loan or USDA loan. A VA loan is insured by the U.S. Department of Veterans Affairs, so you’ll need to be a retired or active-duty servicemember to qualify. A USDA loan is only available for homes in designated rural areas and comes with income limits. 

There are some lenders that offer no-down-payment loans that work like a conventional mortgage. 

4. Find Payment Assistance Programs 

There are state and federal programs designed to help home buyers with closing costs and other fees associated with the homebuying process. Do your research to see if you qualify for these programs, but note many come in the form of low-interest loans, so you’ll need to factor that into your monthly payments. 

5. Get the Lender or Seller to Pay Closing Costs 

During the closing process, ask the seller or lender if they’d be willing to cover the closing costs. You’ll likely need to repay this in the form of a loan or a higher interest rate, but it could be worth it if it helps you secure your dream home. 

The Bottom Line 

By exploring various government programs, negotiating with the seller and considering alternative financing options such as lease-to-own agreements or private mortgages, it is possible to purchase a home with little or no money upfront. However, it is essential to do your research and carefully consider the long-term financial implications before making any major decisions.

Why You Should Trust Us

Benzinga has offered investment and mortgage advice to more than one million people. Our experts include financial professionals and homeowners, such as Anthony O’Reilly, the writer of this piece. Anthony is a former journalist who’s won awards for his coverage of the New York City economy. He’s navigated tricky real estate markets in New York, Northern Virginia and North Carolina.

For this story, we worked with real estate expert Adam Hamilton, co-founder of REI Hub, an accounting software for rental property owners.

Frequently Asked Questions

Sources

• Adam Hamilton, co-founder of REI Hub

The post How to Buy a House With No Money Down by Anthony O'Reilly appeared first on Benzinga. Visit Benzinga to get more great content like this.

Buying a house for cash without a realtor can be done so long as you’ve done enough research. 

For the eager DIYer, buying a house for cash without a realtor could be the perfect passion project. And yes, it’s possible to save money when using a cash offer to purchase a property without the assistance of a realtor. While there are several benefits to this tactic, there are also some potential downfalls you should be aware of. 

In this piece, we’ll examine the potential advantages and drawbacks to understand if such a process is right for you. We’ll also explain how to buy a house for cash without a realtor and hear from a real estate expert on whether it’s a good idea for most home buyers. 

Can You Buy a House for Cash Without a Realtor?

Yes, you can buy a house for cash without a realtor. That said, just because you can do something doesn’t mean you necessarily should. 

“Yes, you can avoid paying [realtors] commission but you may end up agreeing to a higher sale price because you don’t have the same negotiating expertise that a realtor has,” says Adam Hamilton, co-founder of REI Hub, an accounting software for rental property owners. “There are also lots of steps in this process that you would have to do entirely on your own, which can be risky and confusing.”

That said, there are certain advantages, including: 

Full Ownership

When purchasing a home using cash, you’ll have the ability to fully own your home. Full ownership allows you to more easily access the equity built in your property.

No Mortgage

Buying a home without using a loan allows you to skip taking out a mortgage. Avoiding a mortgage helps you keep more money in your pocket because you can avoid interest payments. Interest payments are fees borrowers pay on the loan principal. 

No Commission

When purchasing a home in cash without a realtor, you are able to skip the commission fees. However, it’s important to keep in mind that the amount of money you will save on commission as a buyer will likely be minimal. 

In general, commission fees are paid by the seller of a home. Home sellers account for commission fees in the purchase price of their property so you might indirectly be paying for commission as a homebuyer.

Saves Time Searching for an Agent

Finding the ideal agent can take time. For example, researching and speaking with real estate agents can take days, even months before you feel like you’ve found the right fit. If you have a tight timeline, searching for an agent might add unwanted pressure to finding a home.

Potentially Save Money

As a cash home buyer without a realtor, you may be able to save money. For example, cash offers can lower closing costs when compared to offers using a mortgage loan. The reason closing costs on cash offers are lower stems from the understanding that you will not need to pay loan-related fees.

How to Buy a House for Cash Without a Realtor

Purchasing a home without a realtor for cash can feel complicated, but it doesn’t need to be. Before buying a property, examine your budget and recognize that you will likely need to spend time on research. Take your time navigating the housing market and consider working with a capable real estate attorney to ensure you are on the right path to becoming a homebuyer. 

1. Determine Your Budget

Before diving into the home search, create a reasonable budget. Analyze your finances and decide how much time and money you’re able to dedicate to purchasing a home. Have an emergency fund in place to safeguard against unforeseen events. Contemplate reworking your emergency fund as you prepare to purchase a property in cash to ensure that it can cover future shifts in your spending habits.

2. Research the Housing Market

Researching the housing market without a realtor is a crucial step in your home buying process. Have a clear understanding of larger real estate market trends as well as smaller local movements. Take your time examining the neighborhood where you intend to live and its amenities. Collect information about comparable homes in the area such as estimates and sales details. If possible, speak with people who live in the area to have a better perspective.

3.  Choose Your Property

Select a property that fits your budget as well as your goals. When picking a property, focus on key areas of interest such as the location and price point. Depending on your priorities, choosing a smaller home might make more sense.

When finding the ideal property, remember certain lenders and banks have programs designed to help you fund cash offers. For example, some mortgage lenders have cash programs that allow eligible individuals the opportunity to become cash buyers. Cash offers are often viewed as more attractive by sellers because cash offers tend to have a lower level of risk compared to financed offers. Speak with a reputable financial institution to see if such a program would help you pay for the property of your dreams.

4. Make a Bid and Negotiate with the Seller

When making a bid and negotiating with the seller, consider speaking with professionals as well as individuals who recently sold their homes in the area. Depending on the market, you might compete against other buyers after placing an offer. Making a bid and negotiating with a seller requires a combination of financial and people skills. If you have your heart set on a specific house, you could write to the seller describing how much the property means to you.

5. Make an Earnest Money Deposit

An earnest money deposit helps to show good faith. It’s used to show that you’re committed to closing the deal. An earnest money deposit can help your offer stand out against the competition. 

6. Conduct a Home Inspection

Conducting a home inspection is especially important when you are buying a house in cash without a realtor. Home inspections can point out potential structural issues in the property. According to the American Society of Home Inspectors, you can negotiate on areas of concern that were not previously obvious, such as the condition of the roof.

7. Start the Title Review Research

A title review can indicate potential problems related to the property such as liens. Work with a reputable title company or real estate attorney to expedite the process.

8. Availability of Homeowners Insurance

Research the vast array of homeowners insurance options. Homeowners insurance helps to protect your finances from unexpected accidents or theft. When buying homeowners insurance, review factors such as the relative costs of other insurance policies and third-party ratings related to each insurance company.

9. Hire a Real Estate Attorney

Hiring a real estate attorney is important when purchasing a home without a realtor. A real estate attorney reviews documents and ensures that the transfer of the property is a success. The knowledge that a lawyer possesses can be especially helpful for first-time homebuyers who want to avoid unwanted trouble down the road. 

10. Schedule a Final Walkthrough and Close the Deal 

A final walkthrough provides you with a final opportunity to inspect the property. Take your time and examine details from the appliances to the walls. The goal is to make sure that the property is in the agreed-upon condition before closing the deal.

11. Move in and Enjoy Your New Home

Congratulations! When moving to your new home, remember to change the address on legal documents and subscriptions. When applicable, avoid the hassle of missed mail by switching to online messages and updates.

The Bottom Line 

The housing market provides a vast landscape full of vibrant opportunities and varied options. When buying in cash without a realtor, place an emphasis on research and learning about the market. Decide if you want to put in the extra time. Remember, even if you don’t work with a realtor, you will likely need to use home buying resources. Your dream of homeownership could be closer than you think.  

Why You Should Trust Us

Benzinga has offered investment and mortgage advice to more than one million people. Our experts include financial professionals and homeowners, such as Anthony O’Reilly, the writer of this piece. Anthony is a former journalist who’s won awards for his coverage of the New York City economy. He’s navigated tricky real estate markets in New York, Northern Virginia and North Carolina.

For this story, we worked with real estate expert Adam Hamilton, co-founder of REI Hub, an accounting software for rental property owners.

Frequently Asked Questions

Sources

• Adam Hamilton, co-founder of REI Hub

The post Buying a House for Cash Without a Realtor by Anthony O'Reilly appeared first on Benzinga. Visit Benzinga to get more great content like this.

Home sellers who hold a mortgage are essentially acting as the lender, making it easier for buyers to qualify and creating a new revenue stream for the seller. 

A holding mortgage or holding a mortgage, is a type of seller financing where the homeowner acts as the lender for future buyers. The main advantage for buyers and sellers? Convenience. It can help buyers who don’t qualify for a traditional mortgage and can be an opportunity for sellers to earn additional income through regular monthly payments. 

In this story, we’ll answer the question “What is holding a mortgage,” explain how it works and the pros and cons for both sides. 

What is Holding a Mortgage?

“A holding mortgage is when a seller is the one who provides financing for their buyer,” says real estate expert Adam Hamilton, co-founder of REI Hub, an accounting software for rental property owners. “They become the lender and until the mortgage is entirely repaid to them, they keep the title.”

These are nonconforming home loans and are sometimes called a holding mortgage agreement.

By financing the purchase, the seller can open the sale to more buyers and potentially close more quickly. For the borrower, it can be a way to qualify for a mortgage without needing to meet traditional mortgage requirements. 

Pros

• Easier qualification 
• Faster and cheaper closing process 
• Flexible down payment options 
• Creates additional income stream for sellers 

Cons

• Higher interest rates
• Seller assumes most of the risk 
• Balloon payments 

How Does Holding a Mortgage Work

In most cases, a holding mortgage is short-term, although that can vary. The buyer and seller lay out the details of the holding mortgage in a promissory note that includes all the loan terms, including the interest rate, down payment and repayment period. Holding mortgages may end with a larger single payment called a balloon payment, though this varies from state to state. 

Holding mortgages may also not be amortized. That means you’ll pay the same amount in principal and interest each month rather than paying more in interest early in the loan, as is common with traditional mortgages. 

If you decide to either offer or accept a holding mortgage contract, be sure it also outlines how costs like property taxes and homeowners insurance are paid. While these costs are typically rolled into your monthly mortgage payments, the borrower may be responsible for these expenses paid directly to the insurance company or tax office. 

Here’s an example: 

Suppose Rick and Sue are ready to retire and want to move into a smaller property. They are ready to sell their family home. They decide that with current high interest rates, they could benefit from the interest payments by acting as the lender on their property.

Peter decides to buy the home with the holding mortgage offered. They agree on a sale price of $500,000 with a 10% down payment of $50,000. The agreement outlines an 8% interest rate calculated on a 25-year loan but with a balloon payment due in 10 years for the loan balance.

Rick and Sue will get monthly payments of $3,473.17 for 10 years, with the expected balloon payment at the end of that term. This gives Peter time to build income and savings or improve his credit score before applying for a traditional mortgage.

Should I Get a Holding Mortgage? 

For sellers, a holding mortgage offers steady cash flow and the possibility of stable returns but comes with significant risk. It is best for owners who no longer have a mortgage on their home and who have other assets or income. Carefully assessing potential borrowers’ financial information can help mitigate risk.

For buyers, if you can qualify for either a conforming or nonconforming loan, you will usually get better terms and less risk than a holding mortgage. However, if you know the seller or cannot qualify for another mortgage option, a holding mortgage could be an option. Remember to do your due diligence on the property and double-check the contract. You can check our list of the best nonconforming lenders.

Why You Should Trust Us

Benzinga has offered investment and mortgage advice to more than one million people. Our experts include financial professionals and homeowners, such as Anthony O’Reilly, the writer of this piece. Anthony is a former journalist who’s won awards for his coverage of the New York City economy. He’s navigated tricky real estate markets in New York, Northern Virginia and North Carolina.

For this story, we worked with real estate expert Adam Hamilton, co-founder of REI Hub, an accounting software for rental property owners.

Frequently Asked Questions

Sources

• Adam Hamilton, co-founder of REI Hub

The post What is Holding a Mortgage? by Anthony O'Reilly appeared first on Benzinga. Visit Benzinga to get more great content like this.

Mortgage interest rates are the costs homeowners pay to borrow money for buying homes and they can be fixed or adjustable. 

You’ll often hear people talk about mortgage interest rates during the house hunting process. If you’re a first-time home buyer, you might be asking, how do mortgage interest rates work? That’s the question we’re here to answer. 

Our writers are homeowners who have bought properties in some of the most challenging real estate markets. On top of that, we spoke with Jason Lerner, a 22-year veteran of the mortgage industry, to understand how people can get the best mortgage interest rate for their needs. 

Read on to find out how mortgage interest rates work, the factors that affect them and the different types of rates available to prospective homeowners.  

What is a Mortgage Interest Rate?

A mortgage interest rate is a percentage charged on your home loan when borrowing money from a lender. The interest is part of your monthly mortgage payments, along with your principal balance (or the amount of money you were approved to borrow). Interest is one of the ways lenders make money when providing mortgages. 

Mortgage interest rates vary based on your financial situation, the real estate market, the mortgage type you’re applying for and the size of your loan. 

How Do Mortgage Interest Rates Work?

When you start paying your mortgage, most of your payment will go to the interest rather than the principal balance. As you continue paying it off, more money will go toward the principal and the amount of interest you pay will decrease (remember that it’s a percentage of the remaining loan balance). 

Factors that Affect Mortgage Rates

Several factors impact your mortgage interest rate. 

Principal

Your mortgage principal is the money you borrowed to buy your home. A portion of your monthly mortgage payment reduces the total principal that you owe. The amount you pay in interest each month depends on your principal balance. 

Term/Length

Your monthly mortgage payment is affected by the length of your loan. The more time you have to pay off your mortgage, the lower your payments will be. So, if you take out a 30-year mortgage, your monthly payments will be less than if you entered a 15-year mortgage. 

Credit Score 

Your credit score reflects how likely you are to repay debt and your creditworthiness could be the difference between paying a high or low mortgage interest rate. People with great credit, 700 or above, are likely to get lower interest rates because they’ve demonstrated that they’re not a risk for lenders. Those with lower scores are likely to be stuck with higher rates because they’re at a greater risk of defaulting on the loan. 

Lerner, however, says there are some cases in which waiting to improve your credit may not be the best strategy. “Even with a better credit score, if interest rates have increased you still might get stuck making larger payments,” he says. 

A good lender, he adds, will be able to find the best deal for your current score. 

Federal Reserve 

Most banks or lenders base their interest rates on the federal funds rate set by the Federal Reserve. If the Fed increases their numbers, lenders are likely to increase their rate. Likewise, if the economy improves and the Fed decreases rates you could see a drop in mortgage interest rates nationwide, though individual factors like those listed above will still come into play. 

Different Types of Interest Rates

Just as there are different types of homes and home mortgages, there are also a variety of interest rates available to homeowners.  

Fixed-Rate Mortgages

With a fixed-rate mortgage, your interest rate remains the same over the life of the loan. Not only will your interest rate remain the same, but your monthly payment will also stay the same. Fixed-rate mortgages offer stability and protection against rising interest rates. 

Adjustable-Rate Mortgages (ARMs)

An adjustable-rate mortgage (ARM) has an interest rate that can change over time. Many times, an ARM begins with a low introductory rate. Once you pass the introductory period, your interest rate could rise or fall. As your mortgage interest rate changes under an ARM, so does your monthly payment.

An ARM may be a good option if you sell your home or refinance in a few years. This is one of the key factors to consider when debating between a fixed-rate mortgage or an adjustable rate, Lerner says. 

“If they’re going to have this mortgage for less time than the loan term, an ARM might not make sense,” he says. 

Additionally, an ARM is only beneficial if the Fed drops rates significantly. “A quarter-percent or a half-percent decrease won’t decrease your payments as much as you hoped,” Lerner adds. 

Interest-Only Mortgages

With an interest-only mortgage, you make payments toward the interest owed only. Since your monthly payment doesn’t include principal, your payments are typically lower than a traditional mortgage.

The Bottom Line 

• Mortgage interest is your cost of borrowing money to buy a house.
• You calculate mortgage interest as a percentage of the principal you haven’t repaid.
• Your credit history, down payment and other factors affect your mortgage interest rate.

Why You Should Trust Us

Benzinga has offered investment and mortgage advice to more than one million people. Our experts include financial professionals and homeowners, such as Anthony O’Reilly, the writer of this piece. Anthony is a former journalist who’s won awards for his coverage of the New York City economy. He’s navigated tricky real estate markets in New York, Northern Virginia and North Carolina.

For this story, we worked with Jason Lerner, an area manager for First Home Mortgage and a 22-year mortgage industry veteran.  

Frequently Asked Questions

Sources

• Jason Lerner, area manager for First Home Mortgage and a 22-year mortgage industry veteran

The post How Do Mortgage Interest Rates Work? by Anthony O'Reilly appeared first on Benzinga. Visit Benzinga to get more great content like this.

For a successful mortgage approval, you’ll need organized finances, a good credit score and a stable income. 

It’s not an easy time to be a prospective first-time homebuyer or any kind of homebuyer for that matter. There’s increased demand and competition in many real estate markets, meaning you’ll really need to perfect your mortgage application if you want to increase your odds of being picked by a seller. 

But it’s not like anyone wrote a guide on how to get approved for a mortgage, right?  

Actually, that’s exactly what we did. On top of offering mortgage and investment advice to more than one million people, our writers are homeowners who have gone through the same grueling mortgage process you’re about to embark on. Plus, we spoke with Jason Lerner, a 22-year veteran of the mortgage industry and area manager for First Home Mortgage. 

Lerner has helped thousands get a mortgage and has seen the market at its best and worst. 

“In today’s market, it’s much more challenging to be a consumer than a lender,” he says. 

Follow these tips to help you stand out from other prospective buyers. 

9 Steps to Get Approved for a Mortgage

Getting approved for a mortgage doesn’t have to be a daunting process. In fact, one thing that can make it easier is to get a mortgage pre-approval before you start looking at properties. 

The process of getting approved for a mortgage is broken down below.

1. Understand Your Credit

Your credit score is a number that represents your creditworthiness or how likely you are to repay debt. Mortgage lenders use this score to determine whether you’re eligible for a loan, how much you can borrow and what interest rate you can get. Knowing your credit score will help you gauge your chances of getting approved for a mortgage.

Credit scores range from 300 to 850, and the higher your score, the better your creditworthiness. A score of 700 or higher is usually considered good, while 800 or higher is excellent. If your score is lower than 700, you may still be eligible for a mortgage, but you may have to pay a higher interest rate. If you’re planning to apply for a mortgage, it’s a good idea to know your credit score and work on improving it if necessary.

Improving that score starts with getting a copy of your credit report. 

Once you have the report, check for errors and inaccuracies. If you find any, dispute them with the bureau that issued the report. Inaccurate information can hurt your credit score and reduce your chances of being approved for a mortgage.

Lerner advises people to work with a trusted financial professional when cleaning up their credit. 

“Without the guidance of a trusted professional, you may pay things off that are counterproductive or don’t have that much of an impact on your total score,” he says. 

2. Save for the Down Payment

In almost all cases, you’ll need a down payment when purchasing a property, typically ranging from 5% to 20% of the total purchase price. Having enough of a down payment will make it easier to obtain mortgage approval and can help you lock in lower interest rates. 

Many people will tell you to shoot for a 20% down payment, and while that might be advisable in some cases it’s not always what’s needed. Lerner says that number used to be important because it was the down payment needed to avoid private mortgage insurance (PMI), which was once costly but is now affordable for most qualified borrowers. 

“Some of my wealthiest clients choose to put less money down instead of depleting an asset,” Lerner says.  

3. Gather Necessary Documents

Without the right documents, lenders are unable to validate your ability to repay your loan, which can lead to you being denied a mortgage approval or a higher interest rate.

Some important documents you’ll need to provide include:

• Tax returns 
• Bank statements
• Pay stubs

Gathering these documents can take some time, so it’s important to start early. Make sure you read the lender’s requirements carefully to ensure you provide everything they need. By submitting all the necessary documents, lenders will be able to quickly and accurately assess your financial standing, ultimately leading to a smoother loan application process.

4. Keep Your Finances Consistent

Another important step toward getting approved for a mortgage is maintaining a stable work and income history. Lenders typically prefer applicants who have worked for the same employer for at least two years and have a consistent source of income. This stability shows that the borrower is financially responsible and can make the mortgage payments on time.

5. Choose the Right Mortgage

Many different types of mortgage loans are available, each with varying terms and requirements. It’s important to take the time to research and understand the differences to make an informed decision.

One of the first things to consider when choosing a mortgage is the interest rate. This will determine the amount of interest you’ll pay on your loan, which can have a significant impact on your overall monthly payment and long-term financial health. You’ll also want to evaluate loan terms, such as the length of the loan and whether it has a fixed or adjustable rate. Some loans may also have fees and closing costs that should be taken into account.

6. Shop Around for a Mortgage

Don’t settle for the first mortgage offer you receive. It’s crucial to compare rates, terms and fees from multiple lenders to ensure you’re getting the best deal possible. 

When looking for a mortgage, don’t limit yourself to traditional brick-and-mortar banks. Check out our list of the best online mortgage lenders. 

7. Find a Reputable Mortgage Lender

Look for reputable institutions that offer a range of loan products and have a strong track record of customer service. You can start your search online or ask friends and family for recommendations. Once you have a list of potential lenders, reach out to them and schedule an appointment to discuss your options.

8. Get a Mortgage Preapproval

One of the most important steps to take is to get a mortgage pre-approval. This involves a lender evaluating your creditworthiness and pre-approving you for a specific loan amount with a specific interest rate.

A mortgage pre-approval gives you an edge when shopping for a home, as it shows sellers that you are a serious buyer and have already taken steps to secure financing. It also helps you avoid the disappointment of falling in love with a home, only to find out later that you are not qualified to buy it. Additionally, a mortgage pre-approval can help speed up the mortgage process once you find the perfect home, as the lender has already reviewed your financial documents and credit history.

Keep in mind that a pre-approval is not the same as a mortgage pre-qualification. Pre-qualification is a simpler, less formal process where a lender provides an estimate of how much you may be able to borrow based on the information you provide. A mortgage pre-approval, on the other hand, requires more documentation and a more detailed credit evaluation. 

9. Finalizing Your Mortgage and Closing the Deal

Once you have found your dream home and your offer has been accepted, it’s time to finalize the deal and the closing process. This step involves completing all legal and financial requirements while also paying the down payment and closing costs. It is important to understand all the terms and conditions of the mortgage and read through all documents carefully before signing. Once all legal documents have been signed, the seller will transfer ownership of the property to you, and you will officially become a homeowner.

How Do I Get Approved for a Mortgage? 

The key to a successful mortgage approval is to ensure that your finances are in order, your credit score is in good standing and that you have a reliable source of income. Additionally, it’s important to choose a lender that suits your needs and offers competitive rates and terms. To make the process smoother, obtain a mortgage pre-approval before starting your home search.

By following these steps, you can increase your chances of getting approved for a mortgage and achieving your dream of owning a home. Remember to do your research, be honest and transparent throughout the application process and seek the guidance of a qualified mortgage professional if you need assistance.

Why You Should Trust Us

Benzinga has offered investment and mortgage advice to more than one million people. Our experts include financial professionals and homeowners, such as Anthony O’Reilly, the writer of this piece. Anthony is a former journalist who’s won awards for his coverage of the New York City economy. He’s navigated tricky real estate markets in New York, Northern Virginia and North Carolina.

For this story, we worked with Jason Lerner, an area manager for First Home Mortgage and a 22-year mortgage industry veteran.  

Frequently Asked Questions

Sources

• Jason Lerner, area manager for First Home Mortgage and a 22-year mortgage industry veteran

The post How to Get Approved for a Mortgage by Anthony O'Reilly appeared first on Benzinga. Visit Benzinga to get more great content like this.

A 100% financing mortgage allows for purchasing a home without a down payment, but other costs like inspection, appraisal and closing fees still apply.

If you’re ready to buy a home and want to immediately start building equity, a 100% financing mortgage can offer the opportunity to do so faster than traditional home buying methods. This mortgage type doesn’t require a down payment, making it easier for a wide range of homebuyers to purchase a property. 

“There are a few caveats to be aware of, so they are definitely not for everyone,” says mortgage broker Reed Letson, owner of Elevation Mortgage. “I always tell my clients that free money is never free and the entity offering up the down payment is in the business to make money off the money they are lending to you.”

While you’ll still need funds for closing costs, in some cases, 100% financing mortgages will roll those costs into the loan. Read on to understand how these mortgages work and whether they’re a good fit for you. 

What is a 100% Financing Mortgage?

A 100% financing mortgage, sometimes called a down payment assistance loan, means that you don’t have to make a down payment to purchase a home. You will, however, usually have to pay for inspection, appraisal and closing costs, which can cost more if you choose not to make a down payment.

“Down payment assistance loans will always come with a higher interest rate (on average 0.5%-1%) above current market rates, depending on credit score, as lenders deem these higher-risk loans,” Letson says. “Second, closing costs are typically higher on these loans, on average about 1%-1.5% of the loan amount higher than your standard closing costs. This is due to the origination or discount points the lender adds to your loan fees to build in additional profit”

Pros

• Allows you to buy a home quicker 
• Keeps more cash in your hands 
• Easier to qualify 

Cons

• You’ll get less equity in your home 
• Higher fees and interest rates 

How Does a 100% Financing Mortgage Work?

A no-down-payment mortgage works like a conventional mortgage, except that you aren’t required to make an initial down payment to secure the loan. The most common forms of no-down-payment loans are government-backed Veterans Affairs (VA) or U.S. Department of Agriculture (USDA) loans.

Suppose you plan to purchase a home that costs $300,000. If the loan requires a downpayment, you can expect to pay between 3% and 20% down, which means you’ll need savings of $9,000 to $60,000. With a no down payment mortgage, you could get a mortgage for the full $300,000 and pay it back over time with interest. 

Should I Get a 100% Financing Mortgage? 

While a 100% financing mortgage can open the door to more people trying to buy a home, there are some details you should be aware of. For one, you might get stuck with a higher interest rate. If your lender isn’t willing to roll closing costs into your loan, you might also have to pay more than if you put in a down payment. 

Additionally, most 100% financing mortgages are only available for government-backed loans. 

Why You Should Trust Us

Benzinga has offered investment and mortgage advice to more than one million people. Our experts include financial professionals and homeowners such as Anthony O’Reilly, the writer of this piece. Anthony is a former journalist who’s won awards for his New York City economy coverage. He’s navigated tricky real estate markets in New York, Northern Virginia and North Carolina.

For this story, we worked with Reed Letson, a mortgage broker and owner of Elevation Mortgage in Colorado. 

Frequently Asked Questions 

Sources

• Reed Letson, mortgage broker and owner of Elevation Mortgage 

The post 100% Financing Mortgage: No Down Payment Needed by Anthony O'Reilly appeared first on Benzinga. Visit Benzinga to get more great content like this.

There’s more than one way to refinance your mortgage, and the best option depends on your financial situation and goals. 

If you’re looking for a longer mortgage term, lower costs or lower interest rates, a mortgage refinance could be right for you. Choosing the right mortgage refinance option for your needs can greatly impact how much you can save with a refinance. 

Below, we’ll break down the nine most popular options to help you decide based on your current mortgage type, your home’s value or whether you plan to get rid of private mortgage insurance. 

How Does Mortgage Refinancing Work?

Mortgage refinancing works by replacing your original home loan with a new one, often with more favorable terms. In most cases, the new mortgage will be for more than what you owe, so it can pay off the first mortgage. Then, you’ll start making payments on the new loan. 

Mortgage Refinance Options

Here are the nine most popular options to refinance your mortgage and some key considerations from mortgage experts. 

1. Rate-and-Term Refinance

You can consider a rate-and-term refinance when adjusting the interest rate or term without advancing additional cash. You might choose a rate-and-term refinance if mortgage interest rates have decreased or if your credit has increased significantly.

Daniel Cabrera, owner of Sell My House Fast SA Texas, says homeowners should know that this refinance type still requires closing costs. “These closing costs can be expensive, eliminating the savings since you won’t be there long enough,” he says. 

2. Cash-Out Refinance 

With a cash-out refinance, you can access some of the equity you’ve built up in the home. With this refinancing option, you’ll take a new loan higher than your existing mortgage and get the difference in cash. You might consider a cash-out refinance if you need to make home repairs, if interest rates have dropped or to pay off high-interest debt. 

Tim Gordon, a San Diego-based real estate investor and financial expert at Gordon Buys Homes, adds, “This option can result in a lower interest rate, but it also extends your mortgage term.” In other words, if you have 10 years left on a 15-year mortgage, your home loan could be pushed back five years or up to 30, depending on your refinancing terms. 

3. Cash-In Refinance

A cash-in refinance is the opposite of a cash-out refinance. You’ll take a new loan, but you’ll pay additional cash into the loan, increasing your equity in the home. With a cash-in refinance, you could potentially drop private mortgage insurance (if you surpass 20% equity) or qualify for lower interest rates. You might choose a cash-in refinance if you’ve recently received an inheritance, bonus or other financial windfall. 

Reed Letson, owner of Elevation Mortgage, says homeowners should not do a cash-in refinance if interest rates are higher than when they first got their mortgage. “For example, if you currently have a 3% interest rate and you want to look at a cash-in refinance, but current market rates are 6%, a cash-in refinance may not benefit you enough to make it worthwhile,” he says. 

4. No-Closing–Cost Refinance

With a no-closing-cost refinance, you’ll roll the closing costs into your new mortgage. By moving these expenses into the loan’s principal or for a higher interest rate, you’ll still pay the costs (and possibly more) but won’t need additional cash at closing. A no-closing-cost refinance can make sense for families short of savings who need to refinance for a longer mortgage term or because interest rates have dropped substantially. 

“Lenders typically charge a higher interest rate on no-closing-cost refinances to cover the costs they are absorbing,” says Jose Garcia, president and CEO of Northwest Community Credit Union. “Alternatively, the closing costs may be added to your loan balance, which means you’ll be paying interest on these costs over the life of the loan. While you save money upfront, you may end up paying more over the life of the loan due to the higher interest rate or increased loan balance.”

5. Reverse Mortgage

A reverse mortgage allows older homeowners to tap into some of the equity in their homes to cover retirement expenses. Unlike a standard home loan in which you pay the lender a monthly mortgage payment, a reverse mortgage pays you a monthly sum from the equity in your home. 

“It allows them to pull money from their home’s value, but it also reduces home equity over time,” says Ryan Fitzgerald, owner of Raleigh Realty. 

Of course, there are pros and cons to a reverse mortgage, as you’ll be taking away equity and could risk losing your home. On the other hand, you can qualify over a certain age and only need to repay the reverse mortgage when you sell the home or move out. Before choosing this option, you can find the best reverse mortgage lenders to compare offers. 

6. Short Refinance

With a short refinance, the lender issues a new loan and forgives the difference between what you owe on the original mortgage and the new loan amount. This is commonly used to help a borrower avoid foreclosure. It is more time- and cost-effective for the lender than a foreclosure proceeding. A short refinance could be a good option for a borrower struggling to make monthly mortgage payments. 

7. FHA Streamline Refinance 

An FHA Streamline Refinance allows you to refinance your current FHA-backed mortgage. You can choose between credit-qualifying and non-credit-qualifying options based on your credit score and refinancing needs. An FHA Streamline Refinance is usually the best option for low-income borrowers who meet the FHA qualifications and already have an FHA loan.

“If you are doing an FHA loan, remember the upfront MIP rate is 1.75% of the base loan amount,” Letson says. 

8. USDA Streamline Refinance

Like an FHA Streamline Refinance, a USDA Streamline Refinance is often the best option for borrowers with a USDA loan. The property will need to be in a USDA-qualified area. You could choose this option for a better interest rate or terms to lower your monthly payment. You can choose between a streamline-assist or standard streamline refinance to save even more. 

9. VA Streamline Refinance

A VA Streamline Refinance, called a VA IRRRL, pronounced as “VA earl,” is a mortgage refinance option for borrowers with an existing VA loan. This option allows homeowners to convert an existing VA loan to a new VA loan with a lower interest rate or convert a VA loan from an adjustable to a fixed rate. 

This can be a good option for qualifying veterans or service members and their families to take advantage of lower interest rates or to secure a fixed rate. 

How to Refinance Your Mortgage

To refinance your mortgage, you must be approved for a new loan that takes over your primary mortgage. Here’s a step-by-step guide: 

• Research your options and find the best refinancing type for your needs 
• Shop around for lenders, making sure to read the fine print 
• Make sure you meet your lender’s mortgage refinance qualifications on things like your credit score, debt-to-income ratio and more 
• Submit the application 
• Go through the underwriting process
• Get a home appraisal (may not be needed for some refinancing types) 
• Continue making payments on your original home loan 
• Close on your new mortgage 

What to Know About Your Mortgage Refinance Options 

• You can choose from various mortgage refinance options based on your financial needs and current mortgage, from a USDA Streamline Refinance to a rate and term refinance.
• While most mortgage refinancing will require you to pay closing costs of 2% to 5% of the loan, some lenders will let you roll these costs into the loan.
• Before applying for any mortgage refinance, consider your financial strengths and current home loan to determine whether it is wise for you.

Why You Should Trust Us

Benzinga has offered investment and mortgage advice to more than one million people. Our experts include financial professionals and homeowners, such as Anthony O’Reilly, the writer of this piece. Anthony is a former journalist who’s won awards for his New York City economy coverage. He’s navigated tricky real estate markets in New York, Northern Virginia and North Carolina.

For this story, we worked with Daniel Cabrera, owner of Sell My House Fast SA Texas; Tim Gordon, a San Diego-based real estate investor and financial expert at Gordon Buys Homes; Reed Letson, owner of Elevation Mortgage; Jose Garcia, president and CEO of Northwest Community Credit Union; and Ryan Fitzgerald, owner of Raleigh Realty.

FAQ

Sources

• Daniel Cabrera, owner of Sell My House Fast SA Texas
• Tim Gordon, San Diego-based real estate investor and financial expert at Gordon Buys Homes 
• Reed Letson, owner of Elevation Mortgage
• Jose Garcia, president and CEO of Northwest Community Credit Union
• Ryan Fitzgerald, owner of Raleigh Realty

The post Mortgage Refinance Options: Which One is Right for You? by Anthony O'Reilly appeared first on Benzinga. Visit Benzinga to get more great content like this.

To get the best interest rates and loan terms, start shopping for mortgage rates early in the home buying process. 

Learning how to shop for mortgage rates may seem complicated, but ultimately, it comes down to careful planning and making sure you read the fine print. Some advertised deals on low interest rates don’t disclose that those numbers are for the ideal borrower with a high credit score, low debt-to-income ratio and enough savings for a down payment of 20% or more. 

Additionally, a lower interest rate doesn’t always equal a better deal. “Some rates may be lower, but you may end up paying more in fees than if you were to get a slightly higher rate,” says Kylee Gladwell, a mortgage loan officer at Wasatch Peaks Credit Union. 

Read on to find out how to find the best mortgage rates based on your financial situation and what you should know before beginning your home buying process. 

How to Shop for Mortgage Rates

You should begin shopping for mortgage rates before you’ve even identified a dream home, according to Gladwell. Follow these steps to get the lowest mortgage rate possible. 

1. Conduct Research on Available Mortgage Options

Start by reviewing the websites of financial institutions or banks to understand mortgage rates and options. 

“Many lenders will allow you to not only shop the rate but also fees and loan programs,” Gladwell adds. “When comparing interest rates on mortgages, it’s best practice to get a copy of the loan estimate. In order to compare each deal, the loan estimate will show all fees broken down as well as if there are any points being charged to get the rate you were quoted.”

Additionally, look up information about mortgage market trends to see where interest rates stand and what you can expect. Remember that stated rates usually won’t be your final rate. 

Then, check with local real estate agents who can provide recommendations and advice. 

2. Review Your Credit Score and Debt-to-Income Ratio

Your credit score and debt-to-income ratio are significant factors in approving mortgage applications. A lower credit score or higher debt-to-income ratio may result in higher mortgage interest rates. 

“To set yourself up for the best rates possible, be sure to keep all credit card debt at a close to zero or zero balance, keeping your debt to income at a minimum and saving money for a down payment to help lower your loan to value,” Gladwell says.

Be sure to check that all information is accurate and up to date.

To calculate your debt-to-income ratio, add up all your monthly debt obligations, including student loans, car payments, medical debt, housing payments and credit card debt. Divide this number by your total income. If you have a partner, you can calculate the debt-to-income ratio individually or for your household together. 

3. Shop for Rates and Compare Offers

Now is the time to request mortgage quotes from different lenders. Request a mortgage quote from at least three to 10 mortgage lenders, then compare mortgage rates, fees, terms and conditions. Remember that if it seems too good to be true, it probably is. Be wary of interest rates that seem too good to be true and check additional fees or terms. You can also check government-backed mortgage assistance programs.  

4. Understand the Different Types of Mortgage Rates

Adjustable-rate mortgages (ARMs) and fixed-rate mortgages (FRMs) are the two main types of mortgage rates. An ARM or variable rate mortgage, may offer a lower interest rate than an FRM but may potentially increase after an agreed-upon period. For that reason, most borrowers prefer a fixed-rate mortgage so you know your mortgage payment obligation won’t change over the loan’s lifetime. 

5. Get Preapproved for a Mortgage

Before shopping for final mortgage rates, you can get preapproved with one or more lenders. 

“Getting pre-qualified is an excellent way to make sure you are locking in the best rate available,” Gladwell says. 

For preapproval, you’ll need the same documents as final mortgage approval, including proof of income, bank statements, tax returns, credit score and government-issued ID. To get preapproved, you’ll want to pay off as much debt as possible to lower your debt-to-income ratio and work to improve your credit score. 

6. Negotiate for Better Rates and Terms

Be willing to negotiate for better mortgage rates to get the most favorable terms and possibly seal a better deal. You can use a proposed mortgage and quotes from other lenders for leverage during negotiations. Remember, it can’t hurt to ask.

7. Read and Understand the Fine Print

Before accepting any mortgage offers, understand all the terms and conditions. Some agreements may have hidden fees or extra charges that can add up over time. If you’re uncomfortable reading legal documents, ask for the help of a trusted lawyer or real estate agent familiar with mortgage terms.

8. Seal the Deal and Lock In Your Rate

Once you’re sure you’ve secured the best mortgage rate for your situation, inform the lender and request a lock-in. This locks in the mortgage rate for a specified time to prevent interest rate fluctuations.

How to Get the Best Mortgage Rate 

Getting the lowest mortgage rate comes down to factors you can control in a fluctuating lending market. Before applying for a mortgage, work to lower debt, increase income and improve your credit score. You can also research lenders offering lower interest rates or low-fee mortgages to lock in better rates. The best way to shop for mortgage rates comes down to planning, research and timing to get the best interest opportunities and most favorable loan amounts.

Why You Should Trust Us

Benzinga has offered investment and mortgage advice to more than one million people. Our experts include financial professionals and homeowners, such as Anthony O’Reilly, the writer of this piece. Anthony is a former journalist who’s won awards for his New York City economy coverage. He’s navigated tricky real estate markets in New York, Northern Virginia and North Carolina.

For this story, we worked with Kylee Gladwell, a mortgage loan officer at Wasatch Peaks Credit Union. 

Frequently Asked Questions

Sources

• Kylee Gladwell, mortgage loan officer at Wasatch Peaks Credit Union. 

The post How to Shop For Mortgage Rates by Anthony O'Reilly appeared first on Benzinga. Visit Benzinga to get more great content like this.

Things to look for when buying a house include the property’s condition, nearby amenities, resale value, and the school district. 

Intro: Once you embark on the journey of home ownership, it brings up the question of what to look for when buying a house. Whether you’re a first-time buyer or upgrading to your dream home, it’s important to have a checklist when touring properties. Things like the home’s location, school district, nearby amenities and more may affect your decision to put in an offer. 

In this guide, we’ll discuss the top things to look out for when buying a home. Follow these tips to avoid buyer’s remorse and ensure you’re comfortable and happy in your new home.

How Does Buying a House Work?

The process of buying a house differs depending on the type of home you’re buying and the mortgage type you’re using to buy it. Generally speaking, you’ll put an offer on a house, apply for a mortgage to cover the asking price, close on the house and then begin making monthly payments to the lender supplying your mortgage. 

“When you are ready to purchase a home, be sure to make a list of all the needs and wants that you would like in your new home,” says Kylee Gladwell, a mortgage loan officer at Wasatch Peaks Credit Union. “Some of the biggest factors could be location of the home as well as having a yard or the layout of the home. Many people tend to get hung up on the aesthetics of the home but there are plenty of loan products available to help you remodel those features you dislike, making your house more of a home.”

What to Look for When Buying a House

As you shop for an ideal living situation, consider these things before purchasing the home.

Price

Sit down and look at your budget. Evaluate what you can afford to pay for your monthly mortgage. Know that mortgages aren’t just the principal and interest. You’ll also be paying your homeowners insurance and property taxes within that payment.

Another major factor is the mortgage interest rate. Shop around and apply to banks that offer the best mortgage for first-time homebuyers or that specialize in your unique income and credit situation. 

When you apply for a mortgage, the lender will include information about the maximum loan you qualify for. Ensure that you can afford the down payment and that you’ve left enough in your budget to keep up with maintenance and upgrades on the home.

House Condition

Consider the state of the following and whether you might need to update them immediately or if you have time to replenish your nest egg that you just spent on the down payment.

Cosmetic updates that you can put off until you have the funds include:

• Flooring
• Paint
• Kitchen appliances that don’t have your preferred features

More expensive things to consider when reviewing the home’s condition include:

• The age and health of the roof
• The HVAC system
• Hot water heater
• Siding
• Exterior doors that help secure the home
• Windows (are they leaking air and moisture into the home?)

It’s hard to predict when a hot water heater or old HVAC system will go out. Some last far longer than the average life expectancy, but if they’ve been operating for more than 15-20 years, you should look into upgrading them sooner rather than later.

Location

Consider how close the home is to where you work and the activities you regularly take part in. Think about where you’ll shop, the schools your children might attend and what entertainment venues are nearby.

Evaluate the noise level. If it’s in a busy city, you might not be able to relax on the back deck or front patio. It might impact your ability to host social gatherings if street parking is always in use, or you might not care for how the neighbors keep up their homes.

Make a list of amenities that matter to you and then rank homes as they come on the market to see if they’ll fit in with your lifestyle.

House Size or Layout

Before you get too deep into your house shopping experience, make a list of rooms and features you want the home to have. Do you want the garage to flow right into your kitchen? How many bedrooms do you need? Will you be working from home and need an office? If so, what floor would you prefer the office to be located on?

Nearby Amenities

Some homes put you right in the middle of everything you need to live, such as walking trails, grocery stores and home improvement stores. Others have a long drive to these amenities.

Look at how you live and what you need nearby. Consider whether you prefer to use your car minimally and walk or bike to major shopping locations or if you’re comfortable needing to start up your car to get anywhere.

If you have a fitness club you love, look at the proximity of the closest one. Or if it’s important to you to be close to a church or other religious organization, look at your options and see how they fit your preferences.

Homeowners Association Rules

Some homeowners associations (HOAs) are strict about what you’re permitted to do with the exterior of your home. The HOA might dictate whether you can put an addition on the home, change the exterior colors or where to store your garbage bin.

Read the HOA requirements before signing on the title for a new home. This will tell you if you’ll be able to update the home to meet your preferences and if there are any monthly HOA fees you’ll have to pay. 

Look to see what structures you can put up, animals you can have or easements you should be aware of.

Home Inspection Report

Once you put an offer on a house and the seller chooses your offer as the winner, you’ll get a chance to go through the home with a licensed inspector, unless you waive that right to help make your offer more attractive.

Try not to get emotionally involved with the house just yet until you’ve completed the home inspection. The inspector might find serious issues, such as signs of termites or mold, that would make you decide this isn’t the home for you.

Review the report to see what you’re comfortable taking on. You have a chance to go back to the seller and ask that they fix things before transferring ownership unless you waived that right as part of your offer.

Commute Time

Look at how long it will take for you to get to work or your child’s school. Test-drive the commute during rush hour to see not just how far but how long it will take to navigate to your office.

Some homeowners prefer to use public transportation to get to and from school and work. If so, look at the nearby stops or carpooling parking locations near the home.

School District 

If you have children or hope to welcome children into your family while living in the home, look at the quality of schools. Don’t just look at the school district as a whole but check the specific schools your home is assigned to.

As you look at school ratings, consider teacher-to-student ratios, test scores and online reviews from parents and students to learn more about their experience at the school.

Parking Options

Check whether the home has a garage and if it attaches to the house. Look at how much street parking is available and if you’ll have a driveway to park when you use the garage for something else.

Some homeowners need a place to park an RV, boat or other recreational vehicle. If you plan to have these vehicles, make sure there is ample space for them and that the HOA does not restrict your ability to have them

Property Taxes

Each city, township and municipality has varying property tax rates. Ensure that you can pay the property taxes. Going from one city to another could impact your mortgage payment by as much as a few hundred dollars per month. 

Even once you pay off your mortgage, you’ll continue paying property taxes throughout the time you own the home. Consider whether the payments will be realistic and know that the taxes will likely increase as the area grows and your home appreciates in value.

Crime Rate

Check the crime reports for the neighborhood and surrounding area. See if there are frequent break-ins or violence. You don’t want to feel uneasy in your home or like you can’t take a walk through your neighborhood at night.

Resale Value

Evaluate whether the area is on its way up or down to see how well the property will hold its value or appreciate with time. If you hope to add onto the home or adjust it in some way, look to see whether you’d be pricing yourself out of your neighborhood, meaning you won’t come close to getting the money back out of those improvements.

What Should I Look for When Buying a House? 

On the surface, some homes look ideal, but when you look closer you might notice some red flags. Do your due diligence before purchasing a home to ensure you’re truly buying your dream home and not a money pit that will give you major buyer’s remorse.

• Check for any disrepair or parts of the house that may be deteriorating 
• Check the location, and note the parking situation and what your daily commute may look like 
• Consider nearby amenities like parks, museums and other things to do 
• Look into the school district to see if it’s a good match for your child’s needs 

Why You Should Trust Us

Benzinga has offered investment and mortgage advice to more than one million people. Our experts include financial professionals and homeowners, such as Anthony O’Reilly, the writer of this piece. Anthony is a former journalist who’s won awards for his coverage of the New York City economy. He’s navigated tricky real estate markets in New York, Northern Virginia and North Carolina.

For this story, we worked with Kylee Gladwell, a mortgage loan officer at Wasatch Peaks Credit Union.

Frequently Asked Questions 

Sources

• Kylee Gladwell, mortgage loan officer at Wasatch Peaks Credit Union

The post What to Look for When Buying a House? by Anthony O'Reilly appeared first on Benzinga. Visit Benzinga to get more great content like this.