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  • Writer's pictureRebecca Richardson - Mortgage Consultant

Maximizing Your Financial Position

There are dozens of things that go into evaluating and maximizing your financial position. Let’s talk about some of the most important things to consider so you can start having the right conversations.

Mortgage Planning in a Volatile Market: What’s the Best Approach?

Do you have your mortgage strategy locked down? It may still be good to dive into a dynamic market and fine-tune your plan for success.

Which One is Best for You: A Fixed or an Adjustable Rate?

With a fixed rate you get rate stability, predictable monthly payments, and are great for long-term planning. Adjustable rates tend to be lower initially, they afford you shorter terms, and there’s the potential for lower rates in the future.

If you want to try and time your rate lock, make sure you’re monitoring the market and fluctuations in rates. You should also have a target rate in mind already, with all documentation prepared early. This way, your rate lock can be as smooth as possible. No matter what you do, though, talk to your lender about this!

Conditional Approval: What Does it Mean for Your Homebuying Journey?

Closing in on the finish line? Let’s get into the nitty gritty of conditional approvals and unlock the path to homeownership.

There’s a lot that happens behind the scenes with your mortgage. One of the crucial steps is underwriting. An underwriter’s role is to review your application, assess the risks, look at the property appraisal, and check that all the above meets their compliances.

If the underwriter requires additional documentation, they may issue you a conditional approval. This means your approval is contingent on you meeting specific requirements. Some common reasons you might get a conditional approval:

  • Verification of documents

  • Income and employment

  • Assets

  • Credit

  • Property Appraisal

  • Insurance

Once all conditions have been satisfied and verified, the underwriter can issue a final approval, indicating that the loan is clear to close. This might seem like a lot, but if you stay on top of it and provide all documents promptly, it’ll be smooth sailing.

Is Homeownership Still a Smart Financial Move?

Sometimes people wonder: why even bother with homeownership? The market is crazy, you have to fix your own dishwasher when it breaks, and you have other debts to contend with. While sometimes true, this mindset may be holding you back.

Here’s the reason that the ‘finance bros’ will give you: equity. I know you’re tired of hearing it, but it is really important for your long-term wealth. As you make payments on the home, your mortgage amount goes down and your equity rises. These are forced savings that you can pull from to achieve other life goals or potentially turn a profit if you want to sell.

Now the part you’re probably waiting for: stability vs. renting.

Renting allows you to be flexible with the location and the terms of your residence, there are lower upfront costs, and you’re (usually) not responsible for fixing your broken dishwasher.

However, when you own a home, you’re not at risk for raised rent prices or landlords that want to suddenly sell and kick you to the curb. Instead, you’re building long-term wealth, gaining tax benefits, and when you pay your mortgage each month, you’re doing it for you.

Everyone’s situation is different, though! Leave a comment to share your vote on renting or buying.

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