The Best Things to Do Now to Get Your Finances Mortgage Ready

Somethings in life take a little preparation. Like going on a first date, decorating for the holidays, and applying for a mortgage. Imagine the outcome if you did zero prep work for the first two occasions? So why do so many people miss the obvious fact that applying for a mortgage has its own set of behind-the-scenes preparations? Yes, you could find a house and connect to a mortgage company on the spur of the moment act of bravado. But are you sure about what the lender will tell you? Do you already…continue reading →

11 Tips For Millennial First Time Buyers. My #CreditChat with @Experian

I was recently invited by Experian to attend their #CreditChat on Twitter to answers some of the top burning questions for the Millenial First Time Home Buyers. Here are the 11 questions and my answers. Q1: What are some important things millennials should keep in mind before they begin the homebuying process? A1: If you think your job is extremely mobile and/or your income uncertain, you shouldn't be buying a home yet.  If renting offers the flexibility like dating, home buying requires the commitment of being married. So, home buying is as much a…continue reading →

How is an FHA Loan Different From a Conventional Mortgage

Now that you've decided to jump into the home buying process, it's time to face the alphabet soup of mortgage loans. From the outside, it looks like a jumble of meaningless letters, acronyms, and silly names like FHA, VA, Fannie Mae, and Freddie Mac. What do they all mean and how do you know which one is right for you? In this blog post, I'm going to help you learn some primary differences between an FHA loan and conventional loans, which includes Fannie, Freddie, and Jumbo loans. Be prepared - many of the…continue reading →

0%-10% Downpayment Options for Your Next Home Purchase

You do the math, then check the balance in your savings account, and then do the math again. By your calculations, it'll take another three, maybe five (!) years to save enough for a 20% down payment on your first home. What's worse, home prices keep rising, and that's pushing the timeline further away. If only there was a way to make it happen sooner and use the money you've already saved. The good news is there are loan options that allow home buyers to make less than the traditional 20% down payment.…continue reading →

What Exactly Do You Get Pre-Approved For?

You're finally ready to become a homeowner, and you want to do everything right in the process. According to your research, realtor, family, and friends - the first step is getting pre-approved by a mortgage lender. The problem is, no one can explain what exactly 'pre-approved' means. A mortgage pre-approval approves you for only one number and that is NOT the purchase price. A loan pre-approval is not a loan officer doing a quick review of your information and generating a maximum purchase price that you can afford. In reality, a pre-approval is…continue reading →

Borrowing Down Payment from 401k or IRA for Home Purchase

Securing a down payment is often cited as the biggest challenge for buying a home - both for First Time Home Buyers and Move-up Buyers. To overcome these challenges, you can consider borrowing from retirement funds - 401k and IRA. Here is how it works. Borrowing Against 401k for Down Payment   How Much Can I Borrow From My 401k? You can borrow 50% of your vested balance or $50,000 whichever is lower. How Do I Pay It Back? The repayment term is usually between 5 and 15 years. The payment which includes…continue reading →
FHA Loans Insurance Premiums (MIP/PMI) – Rates + Calculator

FHA Loans Insurance Premiums (MIP/PMI) – Rates + Calculator

Ultimate guide to Upfront and Monthly Mortgage Insurance Premiums (MIP/PMI) rates for FHA purchase loans and (streamline) refinances. FHA charges both an upfront mortgage insurance premium and monthly mortgage insurance on almost all the loans it insures. On December 23, 2011, President Obama signed into law the Temporary Payroll Tax Cut Continuation Act of 2011 which required FHA to increase the annual mortgage insurance premium. However, changes were made again in January 2015 to reduce the mortgage insurance premium to make FHA loans more affordable to First Time Home Buyers. The most recent…continue reading →

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.…continue reading →

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…continue reading →

Real Cost For First Time Buyers [Infographic]

Let's be honest: the recession that hit the U.S economy only a few years ago hit us all pretty hard. This truth is especially evident for the generation of young adults who recently graduated from colleges across the country-many of whom left their schools with unimaginable amounts of debt and few jobs available to them to take advantage of. As a result of the recession, the U.S. has seen a significant increase in the amount of young adults moving back home to live with their parents after graduation. But despite these facts, very…continue reading →