The process of buying a home is just that - a process. Like with any major process there are a multitude of potential missteps to avoid. Let's discuss three huge ones. Failing to Consider Your Spending Habits and Expenses Lenders qualify you for what you technically can afford based on review of income documents and debts listed on your credit report. Your monthly debt-to-income ratio is primarily calculated this way . Your disposable income - passions, hobbies, habits and vices - is not part of the equation mortgage lenders, but it definitely should…
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Home Buying Process
New Departure Residence Guidelines Helping More Buyers Qualify
During the height of the financial chaos and housing meltdown, Fannie Mae and Freddie Mac made some sweeping changes for current homeowners looking to buy a different home. Coined the “departure residence” - or “principal residence conversion - by Fannie Mae and Freddie Mac, the set of rules and guidelines put in place in early 2009 that prevented throngs of would be home buyers from making the jump. A mere 7 years later, both Fannie Mae and Freddie Mac have finally decided to ditch their “temporary” and cumbersome departure residence guidelines for…
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FHA Changes Can Help More Buyers With Student Loans To Qualify
Millennials have two things in common, other than their age, they have student loan debt and they make up the primary market of first-time homebuyers. Sometimes, they have a lot of student loan debt which affects their ability - or perceived ability - to remove their renter tag and add the homeownership badge. American students borrow twice as much as they did two decades ago and the total student debt mountain has increased fourfold over that period. In 2012, students carried a median loan amount of $26,885 versus $12,434 two decades ago. Student…
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HomeReady™ Program Will Offer 3% Down Payment On Conforming Loans
Fannie Mae Announces New Low Down Payment Mortgage Product Fannie Mae made big news this week when they announced a new mortgage product designed for low to middle income borrowers. The move officially retired the MyCommunity mortgage that had been a mainstay Fannie Mae product for years. Fannie Mae’s announcement of the HomeReady™ mortgage, an innovative lending option aimed at helping creditworthy borrowers with lower and moderate incomes, has been greeted by mortgage lenders with much anticipation and provides a viable - and possibly more affordable - alternative to low-down payment FHA financing.…
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The Best Month to Buy Your Next Home
Want a discount on your next home purchase? Now is the time to get pre-approved and start your home search if you want the best deal. According to recently released data, along with real estate agents consensus, the best month to buy is right around the corner. RealtyTrac analyzed more than 32 million sales of single family homes and condos since 2000, and we found that the month where buyers have gotten the best deal on average is October. Of the 2.7 million sales closed in October over the last 15 years, the…
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8 Blunders That Will Absolutely Spoil Your Mortgage Approval
A lot of unhappy faces project through the conference call. Would-be homebuyers, real estate agents, title & escrow and a mortgage team - they all invested something. Whether it be time, money or both; watching a home purchase explode days before closing is painful. It’s also expensive for the potential homebuyer and can be a setback that pushes a potential home purchase into next home buying season or beyond. It can almost always be avoided too. Get PreApproved For a Home Purchase It all starts with a great team. Choose your mortgage…
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[Infographic] The Art and Science of Home Appraisals
On your path to home ownership, finding your dream home is just the start. You need to make sure the loan process goes smoothly and you are able to close your escrow on time. Often, something goes awry and its not uncommon for that "something" to be appraisal. The below infographic goes into the art and science behind home appraisals. We end with giving you inputs on how you can impact the appraisal positively.
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3 Secrets about PMI Your Mortgage Lender is Not Telling You
What if knowing three simple facts could save you thousands and help you ensure your mortgage is in the hands of a true mortgage pro? Valuable info, right? Good, because by the end of this post you will know those facts and be armed with some specific questions you can ask your mortgage lender that are designed to separate a talented loan officer from run-of-the-mill paper pusher. Get a Live Mortgage Quote What is Private Mortgage Insurance? Private Mortgage Insurance (PMI), is a tool used to protect mortgage lenders' against loss on loans…
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4 Things That Will Make Home Financing More Difficult in 2014
If you thought lending environment in 2013 was tough, think again. 2014 promises to get worse. Whether you are buying a new home or refinancing your current one, getting a mortgage will be stricter and more expensive. Lets take a look at top 4 changes taking place in 2014 that promises to make life more difficult for you: Qualified Mortgage (QM) Rule - Qualified Mortgage (QM) rule, also called Ability To Repay rule is part of implementing the Dodd-Frank act. QM rule implemented by Consumer Financial Protection Bureau (CFPB), is the first ever…
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12 Ways to Secure a Down Payment for Your Mortgage
If you are a first time home buyer in California (or anywhere else in the country) one of the biggest challenges could be to accumulate the necessary down payment. I have put together the most comprehensive list of possible down payment sources. Below are listed 12 different ways to secure a down payment for your home purchase. You can use one or a combination of many. 1. Savings/Checking Account - Two most recent bank statements, may be used to verify savings and checking accounts. If there is a large increase in an account,…
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