My plan to get Chris Szabo & family out of renting
I am in a unique position to help you understand everything you need to know about buying & financing a home.
That is because I'm dual licensed in real estate & mortgage. The market is very favorable to home buyers right now because of how interest rates have risen over the past 2 years.
Right now the average 30 year fixed rate is at 6.25% which is better than this time last year when the average 30 year fixed rate was almost 8%! See below for a historical chart of mortgage rates.
The federal reserve reduced their benchmark rate by 50 basis points & the mortgage industry expects rates to continue down into 2025 as inflation continues to cool down. This could present a great opportunity to negotiate a good deal on a home now & refinance later as rates come down to lock in a lower payment.
Most of my clients buying homes in this market are negotiating off the price while locking in a lower than market fixed mortgage rate.
My job as your Realtor / Loan officer is to sort out the bad deals & negotiate the best deal possible that is within your budget.
Minimum Requirements to Buy A Home
In order to qualify for a mortgage (if you plan to finance the purchase) there are baseline requirements to consider. Don't worry if you do not meet all of the requirements because for most cases, I can help you get you mortgage ready with some work.
- Minimum qualifying credit score: 620 (for all people on the mortgage)
- A debt-to-income ratio (DTI) below 45% on the front end & 55% on the back end for an FHA mortgage
- Minimum 3.5% down or use a down payment assistance program or buy in a USDA eligible area
- Minimum 2 years of work history, it doesn't have to be at the same job & there can be small gaps of employment
There are other requirements & the above items are the most important.
The best way to get things started is to make a mortgage application with me at Network Funding here: https://nflp.com/loanofficer/alfonsorodriguez/
Once I have a completed application then we can start working on getting you qualified for a mortgage program & determine your affordability range.
After we've got you qualified & know your affordability range, then it becomes my job on the real estate side of things to find homes that match your criteria & negotiate a deal that is within your affordability range.
A Comparison of Buying a New Versus Used Home
Option #1: Buying a new home with a special rate incentive
4129 Brightwell Ranch Road, Georgetown TX 78628
- New home built by Lennar
- 4 bed, 2 bath, 1815 sq ft
- $358,990 sales price
- Mortgage estimate: $2,255.81 (all in)
- Principle & interest: $1,632
- Property taxes: $584
- Homeowners insurance: $100
- Mortgage insurance: $157
- See the PDF here: https://online.fliphtml5.com/dqsbu/wbzu/
- Down payment: $12,564.65
- Estimated interest rate: 3.75%
Option #2: Buying a used home (rate & closing costs negotiable)
1208 April Meadows Loop, Georgetown TX 78626
- 3 bed, 2 bath, 1714 sq ft
- $345,000 sales price
- Mortgage estimate: $2,759
- Principle & interest: $1,870
- Property taxes: $587
- Homeowners insurance: $150
- Mortgage insurance: $151
- See the PDF here: https://online.fliphtml5.com/dqsbu/xvei/
- Down payment: $12,075
- Estimated interest rate: 5.25%
You can view the latest mortgage rates here: https://bit.ly/current-mortgage-rates-news