The Value of Pre-Qualification

Feb 6, 2017 | First Time Homebuyers, Lenders, Mortgage, Real Estate

For most home buyers, pre-qualification is the first step to buying a house whether you are ready to buy now or as you gather info to determine when you will be ready.  Here are three steps to help get you from pre-qualified buyer to homeowner.

Step 1: Pre-Qualification 

When preparing to buy a home, it is important to know how much house you can afford. The pre-qualification process is quick and free without taking much time at all. Speaking with a lender, you can help answer all necessary questions regarding your financial situation. With this info, the lender can determine how much house you can afford and give you a better idea where you stand when it comes to determining your buying capability.  Pre-qualification can be especially useful if you’re not sure you can afford a mortgage as the lender can also answer any questions you might have, as well. This step is crucial when deciding to buy a home and the Marr Team can provide a list of our preferred lenders to get you started!

Step 2: Pre-Approval

After you’re pre-qualified, your next step is to get pre-approved, which is more of an in-depth process. Your lender could ask you to submit paperwork about your income, assets, employment history and even your residency status. Getting pre-approved is almost like applying for a real loan, but it happens before you find the home you want to buy as you must have the pre-approval before making an offer.

Step 3: Shop & Offer

Home shopping time! You can shop for homes within your budget by using your pre-approval amount as a guide. Some sellers view pre-approved buyers more favorably, so with the help of the Marr Team you can now shop with confidence. Once you find a home you want to buy, we can help you put in an offer. If your offer is accepted, based on your pre-aproval you can then officially apply for the loan through your lender. This process will be faster since you have pre-approval because the lender will have just about all of your needed documents.

Don’t Forget: Keep everything “financially” steady! Be aware that changes in your financial situation can always affect your pre-approval. Like most loans, when you’re in the process of obtaining a home loan, do not take out any new debts or make big purchases, switch jobs, or make any big life changes that could affect your financial capabilities in question. If you’re looking to change jobs or buy something expensive, wait until after closing.

These are just a few of the major steps that show you the value of pre-qualification when preparing to buy a home. In the end, when those papers are signed, you can grab your new keys to your new home. Congratulations on becoming a Homeowner!

The Marr Team is here to help you every step of the way. Be sure to ask us about our buy/sell discounts, our preferred lender list, and if it applies, our first time home buyers guide! We have extensive resources to help make the home buying experience the BEST it can be!

Mortgage Delinquencies Continue to Fall

Aug 25, 2011 | Foreclosures, Mortgage, Real Estate

Mortgage delinquenies continue to exist in high numbers, but TransUnion is reporting that we have had six consecutive quarters of decline in mortgage delinquencies.  The rate at the end of the second quarter of 2011 was 5.8% for the national average.  The rate is still about three times higher than pre-recession norms, but anytime we are moving in a positive direction it is worth talking about.  The story also mentions that unemployment and lower home values keep pressure on the delinquency rates, but that tighter lending practices will continue to help improve the rates. 

To see how the stricter guidelines are helping the numbers consider that according to the Federal Reserve Bank of Dallas, at the end of 2010 mortgage delinquency rates in Collin County were 5.9 percent for prime loans and 41.08 for subprime loans.  Luckily the number of prime loans in Collin County were 114,093 and subprime only accounted for 2,354, but the numbers are similar throughout the North Texas area as to default rates for both types of loans.  Dallas was one of the eight counties (out of 30 tracked) that had prime loans past due in the double-digit percentages at 10.19.

While Texas did not experience a drastic home appreciation and thus the region has not been into a mortgage crisis as severe as in other parts of the nation it has still changed the real estate market.  Keep in mind that this means that in general about 6 out of every 100 people you know may be facing tough times paying their mortgage.  If you or someone you know is facing foreclosure, talk to someone early in the process to help show you options whether it be loan modifications, short sale, selling, leasing or a variety of other options based on their specific circumstances.  Tina Marr, of the Marr Team, has been certified as a Short Sale and Foreclosure Resource (SFR) and has helped other homeowners avoid foreclosure.  Call today for a private, no-obligation consultation to discuss your situation.

See Mortgage Deliquencies Continue to Fall Full Article Here

Fixed Rate Mortgages: 30 Year vs. 15 Year

Jun 16, 2011 | Homeowners, Mortgage, Real Estate, Saving Money


Wise consumers are fleeing the insecurity of the adjustable rate mortgage (ARM) loan for fixed-rate loans. According to the latest mortgage application data from the Mortgage Bankers Association (MBA), borrowers are clearly choosing fixed-rate loans over adjustable rate loans – less than 7 percent of the total applications were for adjustable-rate loans. That leaves the vast majority of borrowers, whether refinancing or getting a new loan, choosing a fixed-rate loan for their purchase or refinance. Borrowers choosing fixed-rate loans will typically select a 30-year fixed-rate mortgage, but depending on your situation and needs, it could save you thousands to also “run the numbers” on a 15-year loan.

The reasons many consumers choose a 30-year mortgage is because it will give them the highest buying power because it is the lowest monthly payment. These lower payments can free up money that you can pour into savings and other investments. The disadvantages to a 30-year mortgage versus a 15-year is that equity is built at a slower pace because payments during the first several years go largely toward interest rather than principal. This may not be a problem in areas with faster appreciation or when you plan to stay in your home for 7 or more years. Over the life of the loan you will also pay thousands more in interest in a 30-year loan, but the interest you do pay can be deducted at tax time each year, thereby reducing federal income tax liabilities.A 15-year loan has the advantages of saving thousands in interest over the life of the loan and also has a lower interest rate. Traditionally, your home is a safe vehicle for building personal wealth and the quicker you build the equity the faster the wealth can grow. Because payments are qualified as a percentage of monthly income, the drawback of the 15-year loan is that the higher payment can restrict you to a less expensive house than you might be able to afford with a longer term loan with lower monthly payments. The following illustration shows how some loan options could help you whether considering a new mortgage or refinancing.

*30 Year Loan Term on $165,000 at 6.5% interest is a monthly payment of $1,042.91 with a total interest of $210,411 over the life of the loan.

*15 Year Loan Term on $165,000 at 5.99%  interest is a monthly payment of $1,391.47 with a total interest of $85,465 over the life of the loan.

Potential Saving from Refinancing

*30 Year Loan Term on $165,000 at 5.0% interest is a monthly payment of $885.76 with a total interest of $153,870 over the life of the loan.

* 15 Year Loan Term on $165,000 at 4.75% interest is a monthly payment of $1,283.42 with a total interest of $66,016 over the life of the loan.

This past month, rates have been hovering around 5. Now is an excellent time to look into refinancing your mortgage with a 30 or 15-year fixed. Depending on your monthly savings at our incredibly low interest rates it is not always true that you need to stay in your home for 2 more years to make a refinance a good idea. A mortgage advisor can analyze the amount of time you need to remain in your house to recoup the refinance charges and determine if it is the best plan for you right now.   Let me know if you need the name of a trusted mortgage advisor – I have several.

*Interest rates used in these examples are fictional and for illustration purposes only and do not indicate any advertisement of an interest rate, please contact your lender to further discuss current rate information.