Thomas Murphy - Pine Shores Real Estate



Posted by Thomas Murphy on 6/22/2014

If you are thinking about buying a new home you are probably hoping to get the best value for your money on a house, but what about your home loan? The rate and terms of your mortgage can have a big impact on your wallet. This is why it is so important to shop for just the right home loan. There are two main factors to consider when shopping for a loan: the type of loan and the terms of the loan. Do your homework before looking at home loans. Even one half of a percentage point makes a big difference over the full term of the loan. A 30 year loan of $200,000 at a 5% fixed-rate, will cost you about $22,000 more in interest than if the interest rate was set at 4.5%. Other things to look at when shopping for a home loan are closing costs. Mortgage companies charge additional fees such as origination fees, title charges, appraisals and even credit checks. Make sure to consider these additional expenses when shopping for a home loan. You can also save money by not maxing out your budget. Just because you are pre-qualified for a loan doesn't mean you should spend the maximum loan amount on a home. Don't allow your total house payment (principal, interest, taxes and insurance) to exceed 28% of your gross monthly income.





Posted by Thomas Murphy on 12/29/2013

If you are looking to buy a home you may be wondering how you will be able to come up with the down payment. One way that many buyers come up with down payment money is from gifts.  If you are planning on using gift money to help buy a home there are some guidelines you will need to follow. Here are some simple rules: 1. Get a Gift Letter If you are getting gift money to help you buy a house you will need a gift letter. The letter has a few requirements:

  • Have the letter hand-signed by you and the gift-giver
  • State the relationship between the buyer and the gift-giver.
  • State the amount of the gift.
  • State the address of the home being purchased.
  • A statement that the money is a gift and not a loan that must be paid back.
  • A statement that says: “Will wire the gift directly to escrow at time of closing.”
2. Document a paper trail Mortgage underwriters want proof of where the money came from and where it went. Get copies of transactions showing the withdrawals and deposits. You will also need to make sure that the transaction is for the exact amount of the gift. Following these simple guidelines will get you to the closing table hassle free.