Do You Need Private Mortgage Insurance?

Do You Need Private Mortgage Insurance?

Recommendations for a Smart and Successful Home Search

by Luke Fields

In the search to find the right home, you will need to evaluate your budget, get approved for a mortgage, and have a good understanding of what you want in a house. In addition to these details, be prepared to put your ideas into practice and start shopping for a house for sale that is going to fulfill what you want and need in a home. Here are some recommendations to help you search for and buy the right home.

Get to Know the Area

The location of a home is one of the primary details about a home that you should look into. The reason for this is that the location of the home is not something you can change with renovations or refinancing your loan, so you need to take careful consideration as you evaluate the area and its actual location. Look at the neighborhood the home is in in addition to its surroundings, including local roads, freeway access, restaurants, grocery stores, and other businesses. Is the house close to your work and other places you frequent? Is there access to local public transportation? 

Take some time to evaluate the neighborhood the home is located in, including the neighboring homes in addition to the surrounding streets. It can be helpful to take a walk around the neighborhood to get a good idea of the location and the neighborhood condition. By walking you can take in more details than if you were to drive, as you are actually walking over the sidewalks and past driveways and yards. Look at the condition of the yards and their upkeep to see how neighboring property owners take care of their homes. The condition of nearby homes and properties will have a direct impact on the value of the home you are considering buying. For example, if many of the surrounding homes have run-down exteriors and neglected landscaping, it can bring down the value of your new home and its resale value. 

Evaluate the Price

Next to the condition of a home and its area, you will also want to consider the price of the home based on others in the market. When evaluating a home for its asking price, make sure you look at homes that have just recently sold and how much they sold for. This is going to give you a true indication of what the home for sale is worth because of the market trends of today.

If you are working with a realtor in your home search, they will have quick and easy access to this market information and can complete a quick search and go through their findings with you. This is important because you want to pay what a home is really worth and not what the seller thinks it is worth.


About Me

Do You Need Private Mortgage Insurance?

Welcome to my website. My name is Larry Silva, and I want to talk a bit about private mortgage insurance. You may have heard the term PMI mentioned when you were in the process of purchasing real estate. When I first heard my lender talking about PMI, I was very confused. It was my realtor who sat me down and explained what private mortgage insurance was and when someone is required to purchase it. He told me that PMI is not lifelong insurance; it can be cancelled when the mortgage principal balance reaches a certain point. Once it was explained to me, private mortgage insurance was no longer a mystery or a confusing concept. I would like to pass on what I learned and hope that you find it to be of value.