Linda Culotta

Market Rate Mortgages

Our Services

Full service mortgage company offering application process including ordering credit report, title, appraisal, verification of employment, evaluation of debt to income ratio and proof of all required documents for loan approval. Initiate closing date and time and all necessary information between all parties for a successful Close. Remain in close contact with clients and all parties involved in the mortgage loan transaction throughout the process.

Navigating A Market With Higher Interest Rate

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Navigating A Market With Higher Interest RateEven though interest rates have gone up significantly during the past few months, there are still opportunities for you to find a home at a great price. The high interest rate can be discouraging for some people, but as long as you know how to navigate the market, you can still put yourself in a position to be successful.

Put More Money Down

The easiest way to combat a high interest rate is to reduce the amount of money you borrow. That means that you might need to put more money down. Of course, this means that you might need longer to save up a down payment, but there are other benefits you might notice as well. For example, if you are willing to put 20 percent down or more, you no longer have to purchase private mortgage insurance, which can help you save some additional money.

Increase Your Credit Score

You may be able to secure a lower interest rate if your credit score is higher. Remember that the lender will give you a lower interest rate if you are of less risk to them. If you increase your credit score, you improve your financial health, which means that the lender may offer you a lower interest rate. You can increase your credit score by correcting mistakes on your credit report, paying down your existing debt, and reducing your credit utilization ratio.

Consider an Adjustable-Rate Mortgage

You may even want to consider going with an adjustable-rate mortgage, usually shortened to ARM. This means that the interest rate on your loan will change with the market. If you feel like the interest rates are going to go down, this may be a way to save money; however, keep in mind that you may end up owing more money if the interest rates go up.

Refinance Your Home Loan Down The Road

If you are not willing to take the risk with an ARM, keep in mind that you can refinance your home loan later if interest rates go down. You might need to pay closing expenses again, but it could save you tens of thousands of dollars over the life of the loan if you decide to refinance. 

 

Understanding Mortgage Pre-Approvals and How to Avoid Being Declined for One

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Understanding Mortgage Pre-approvals and How to Avoid Being Declined for OneThe mortgage process is a long and complicated one, with a number of similar-sounding terms that can easily confuse first-time homebuyers. A pre-approval is not the same thing as a pre-qualification, and it’s important to understand everything that goes into a pre-approval. Being declined during the pre-approval process means you’ll have a hard time getting the funds you need to buy your home, so it’s important that you know what the process is going to look like before going into it.

How does a pre-approval work, and how can you make sure you won’t be declined? Here’s what you need to know.

What Is A Mortgage Pre-Approval?

A mortgage pre-approval is a step that happens somewhere near the start of the home buying process. Being pre-approved means you have a preliminary loan commitment from a mortgage lender. Pre-approval isn’t necessarily a guarantee that you’ll get a mortgage, but rather, a statement that if all goes according to plan, your lender will most likely issue a mortgage to you.

Pre-approvals can make the mortgage process shorter and easier, but they’re not legally binding. If you later find a better mortgage through another lender, you don’t have to take out a mortgage through the lender that pre-approved you.

What Do You Need To Be Pre-Approved?

In order to be pre-approved, your lender will need to evaluate your finances and your ability to pay for your mortgage. You’ll want to meet with your lender and provide them with bank and creditor documents that clearly show your income, your assets, and your debts. You can expect your lender to run a credit check on you in order to determine your employment status and verify that you’ve accurately reported your finances.

If you meet your lender’s criteria, you’ll receive a commitment letter that states what size of a mortgage your lender is willing to give you.

Red Flags: Sure Signs That You’re Destined To Be Declined

You can be declined for a mortgage pre-approval for any number of reasons. If you have a poor credit score, a high debt-to-income ratio, or a low or unstable income, you likely won’t meet the lender’s minimum borrower requirements – and you’ll be declined. To avoid being declined for a pre-approval, you’ll want to ensure you always pay your bills on time, negotiate with your creditors to pay off your debts, or boost your income.

A mortgage pre-approval can help you to narrow your home search and access a mortgage loan. That’s why it’s important to ensure you don’t get declined during the pre-approval. Contact a mortgage professional near you to learn more about the pre-approval process.

NMLS# 213838
Licensed to work in: Florida (LO67655)

Equal Housing Lender

Our Location


Naples, Florida 34114