The process of selling or buying a home is both emotionally and physically exhausting. When you come across a property or house that you intend to purchase, you are putting down roots for a long period of time. Similarly when a person decides to sell their home and relocate, they are uprooting from a particular place to which they may have a strong emotional attachment.Both these processes become significantly easier and hassle free if the real estate agent understands what is ultimately required.
Everyone dreams of living in a nice, spacious house, located within a safe and friendly neighborhood. However, most times, reality does not match the fantasy. This is why it is important for sellers and buyers to opt for brokers who are helpful and ensure a smooth transition. In case of buying, a good broker can do wonders for you.
Once you have decided to purchase a property or home in a location of your choice, you can proceed to look at the prices within that neighborhood. You will need to come up with a moderate offer if you decide upon buying a house that meets your requirements. Budgeting and financing is imperative to making a favorable deal.
The most important aspect of buying a home is financing. It is a huge decision that can shape a person’s future for the time to come. Hence, one has to deliberate upon it extensively and ensure that they are able to obtain the adequate funding. The first step to it is looking into mortgages that are not an obstacle in your journey to the dream house. HARP is one such option for people looking to finance their new housing. It is known as the Home Affordable Refinance Program and enables borrowers into acquiring affordable mortgages.
Basically, HARP is for people who are currently all borrowed out on their mortgages and have very less equity. Once, a person owes more on their property than it is worth, they become a credit risk for lenders. This means that refinancing will not be easy. It was introduced during 2009 and brought a ray of hope to borrowers who were struggling with their mortgage. Through HARP, all such people can opt for refinancing without having to take out additional mortgages.
The only condition it entails is that these borrowers should be current on their mortgage payments. Just a few years after its introduction, significant changes were made to this program. HARP waived a few property appraisal requirements, warranties and even eliminated risk fees for certain borrowers who opted for shorter periods of payment. It does not implement any underwater limits or underwriting on loans.
With this program, borrowers do not require a minimum score of credit and can benefit from low interest rates as well. It even allows people to change their mortgages for adjustable to fixed rate. One of the best stipulations of HARP is its less paperwork requirement. Lenders do not need as much paperwork for the verification of annual income. The borrower can qualify for refinance if they provide documentation stating that payments of at least 12 months can be made.