As a high-net-worth buyer in Beverly Hills, you’ll know already that taking out a mortgage will likely be one of the most significant financial commitments of your life. The good news is that luxury real estate agents like myself can offer you a few valuable pieces of information to help you secure the best deal possible. Read on for more details!
Clear any debts you may have
For motivated individuals, borrowing money can contribute to a wealth creation strategy, mainly when there are low-interest rates. However, you do need to consider avoiding debt when it comes to securing a mortgage. When submitting this type of application in the Beverly Hills area, no prospective lender will be impressed if you owe a lot of money on your credit cards or have outstanding loans. Thus, before applying for your mortgage, make every effort to decrease or clear any debts you may have, showing that you can manage your money responsibly.
Credit score
When looking into mortgages, you’ll know that your credit score really does matter, yet this is something that many buyers slip up on. To consider a luxury financing option, you generally need to secure a 720-plus credit score. In the event that your credit rating is poor, you can take a few actions to improve it. For example, as a top realtor, I can advise that simply closing down credit card accounts you don’t use anymore is a good start.
Think about mortgage types
Sometimes, luxury buyers opt for jumbo mortgages. This type of mortgage is a loan that may have high credit quality, although it is in an amount higher than conventional conforming loan limits. The standard is established by the government-sponsored enterprises, Freddie Mac and Fannie Mae, which set limits on the maximum value of any mortgage they buy from a lender. While this is a popular choice with buyers in any high-end area, including Beverly Hills, good communication with a lender is often their most critical asset, meaning you should shop around and research different mortgage types.
Know your market
When searching for the best rate, you may only consider your current bank or lender. However, don’t underestimate the likelihood of there being a better rate further afield. As a high net worth individual, you are more likely to be offered bespoke deals by other lenders. For example, look out for exclusive rates offered by banks and building societies, but you must research each prospect thoroughly. Almost always, a better deal can be found, and this is where experts can come in to help. With the property market and interest rates continuously fluctuating, you must always be aware of the present period and how you can access the best deals.
Make your home-buying process easier!
Hi, I’m Erik Brown. I constantly strive to build relationships with my clients and guide them through the tricky process of purchasing, selling, or investing in properties across the Beverly Hills area and beyond. If you want a realty experience in which your realtor gives 100% and a dash of humor to lighten the mood, this company is for you!
If this is something you are intrigued by, I’d love to hear from you!
