Bob Churchill
June 2022
I Represent Cape Cod Real Estate Buyers Only
Experience * Advocacy * Diligence

Is a Bigger Down Payment Always Better?
When you’re buying something major with a loan, namely a house, you likely need a down payment. A down payment covers part of the purchase price.
      Your down payment plays a role in whether you are approved for a mortgage at all. Down payments also impact your interest rate and the borrowing costs throughout the life of your loan.
      Your down payment usually comes from your savings. The down payment should be a percentage of the total purchase price, and then you pay off the rest of the loan by making installment payments.
      If you’re buying a house for $200,000 and want to make a 20% down payment, it’s $40,000.
U.S. averages as of June 2022:

30 yr. fixed: 5.1%
15 yr. fixed: 4.31%
5/1 yr. adj: 4.2%

You would pay that when you close on your home loan. Then, you’re actually only borrowing $160,000.
      There are arguments to be made both for and against
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Comparing a Pre-Approval and Pre-Underwriting
     When you’re shopping for a new home, there are a lot of steps in what can be an overwhelming and frustrating process.
      Much of that frustration comes from getting mortgage financing.
      Before you start to look for a home, you might decide to get pre-qualified or pre-approved. There’s also the option to go through pre-underwriting. When the housing market remains competitive and bidding wars are common, there are some benefits to pre-underwriting, which we detail below.
      What is Pre-Qualification? Pre-qualifying for a loan is a single step on your way to a pre-approval. Pre-qualifying is part of a process when you work with a lender, and they decide the type of guarantee they will

How to Stock Your Airbnb
     When you own a short-term rental, your ultimate goal is to increase the occupancy as much as possible, meaning more revenue. You need to build a strong reputation and have great guest reviews to do this.
      Impeccable guest reviews mean your listing is honest and transparent, so they know what to expect. You also want to go the extra mile to make their experience great.
      While an Airbnb experience is different from staying in a hotel, you still want your guests to have what they need. There’s no requirement that you have to stock a short-term rental with hotel-like amenities and supplies, but not doing so could be disappointing, and your reviews and ratings could take a hit.
      When you supply what your guests needs, it’s an upfront cost, but often not a major one, and it can easily pay for itself and then some.
      So what’s most important to the

Experience Counts...let mine work for you!

Cape Cod Real Estate market update

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How to Pay Down Debt When Preparing for a Mortgage
     Think you might have trouble qualifying for a mortgage because your current credit load is a little on the high side? You'll want to speak directly with a loan officer to get a bit more specific but if you want or need to pay down debt before applying for a mortgage, there are some things you need to know.
      There are two classifications of monthly payments lenders pay attention to. The first compares the total monthly mortgage payment with gross monthly income. The second looks at the first combined with all other monthly credit obligations such as a car or credit cards. Most loan programs like to see the front 'ratio' be around 33 percent, expressed as 33. The back ratio likes to be around 43. Both of these numbers can be a bit flexible, so make sure you don't prequalify yourself on your own. Too many times potential borrowers run their own numbers and mistakenly assume they can't qualify.
      If you do want to pay down your debt, for whatever reason, there are ways to do it. The first one is to pay down existing credit balances. That seems a bit obvious, I know, but it's also good to know how far down to pay

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Bob Churchill,Broker/Owner GRI ABR ABRM
(508) 362-6855
(800) 292-2540
Buyer Brokers of Cape Cod, Churchill Associates, Inc.
(800) 292-2540 my cell: 508-776-8686
923 Route 6A; P.O. Box 4
Yarmouth Port, Massachusetts 02675

Equal Housing Opportunity

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