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Christopher Manavi On Acquiring Your First Mortgage

Written by Posted On Monday, 04 September 2017 16:04
Christopher Manavi Christopher Manavi

Christopher Manavi recently sat down with me after his seminar in Sacremento, CA. He shed some light on tips for first time home buyers with respect to acquiring a mortgage. The number one thing he says it to start saving for a down payment as early as possible. While it's common to put 20% down, lenders now permit much less, in fact some first-time homebuyer programs permit as little as 3%.

Your credit must also be in check so start monitoring it early and making sure it is as well kept as possible. Pay for any oustanding debts and contest anything that needs to be dealt with. Also, with regards to credit, Christopher Manavi stresses to pause any new credit activity. Any time you open a new credit card account the lender runs something called a hard inquiry which can temporarily ding your credit score down a notch. If you'll be applying for a mortgage soon you'll want to definitely avoid opening any new credit accounts. 

Nex, Christopher Manavi stresses you must determine how much you can really afford comfortably without putting extra stress on yourself. Remember, nobody enjoys being house poor. You'll need to budget for closing costs. In addition to saving for a down payment, you will budget for the money required to close your mortgage, which can be significant. Closing costs generally run between 2% and 5% of your loan amount. You can shop around and compare prices for certain closing expenses, such as homeowners insurance, home inspections and title searches. You can also defray costs by asking the seller to pay for a portion of your closing costs or negotiating your real estate agent’s commission.

Christopher Manavi also suggests to know the limits of a home inspection. This can cause mayhem at the time where you don't need it. Once your offer is accepted, you’ll pay for a home inspection to examine the property’s condition inside and out. But not all inspections test for things like radon, mold or pests, so be sure you know what’s included. Make sure the inspector can access every part of the home, such as the roof and any crawl spaces. Attend the inspection and pay close attention. Don’t be afraid to ask your inspector to take a look — or a closer look — at something and ask questions. No inspector will answer the question, “Should I buy this house?”, so you’ll have to make this decision after reviewing the reports and seeing what the seller is willing to fix.

The last thing Christopher Manavi said is to decide if paying points makes sense for you and your family. Lenders often allow you to buy discount points, which means prepaying interest upfront to secure a lower interest rate. There may also be an option for negative points, in which the lender pays some of your closing costs in exchange for a higher interest rate. How long you plan to stay in the house is one of the key factors in whether buying points makes sense. You’ll need to do some calculations or speak to a mortgage broker or loan officer to help you decide if buying points is worth it for you.

 

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