But does that mean buying a home right now is a bad idea? Should they wait until prices and interest rates drop? Continue reading
Is Now a Good Time to Buy a House? Questions Your Clients Should Be Asking Before Making a Decision
Credit Scores
Keep Your Clients (and Yourself) Busy While They Wait to Buy a Home
Learn How 203(k) Home Improvement Loans Can Help Your Clients Create Their Dream Home
Did you know there are particular mortgage loans, like the FHA 203k Home Improvement loan, explicitly designed to help your clients afford home improvements while building equity? Understanding how these loans work will allow you to offer an important solution for clients who might be struggling to find the perfect home. Continue reading
Help Clients Improve Their Credit Score Before It Weighs Them Down
The same is true for your clients’ credit scores. The numbers matter. They especially carry weight when it’s time to apply for mortgage loans. The credit score can make or break applicants’ chances of being approved for a mortgage loan. Continue reading
Many Factors Determine Monthly Mortgage Payment
Whenever our team works with a client, maybe one of the most frequently asked questions is, “How much will this house cost me every month?” It’s an understandable and necessary question. Continue reading
Help Your Clients Avoid These 5 Credit Mistakes During the Mortgage Loan Process
As a real estate agent, you already understand that credit plays a significant role in the mortgage loan process and can ultimately go a long way in determining if your client is approved for a mortgage loan. Continue reading
What Drives a Lending Decision?
But what is your “price range,” really? Do you know what that corner dream house with the covered patio and finished basement will cost you each month? The truth is, the sticker price in the homebuyers guide is just a part of the total housing cost and doesn’t take into account all the other costs and criteria that a lender will be considering when you apply for a mortgage loan.
There are distinct questions a lender has to answer before they can determine what a mortgage payment is going to look like. We’ll discuss these elements over the next couple installments, but for now… we will start at the beginning.
8 Tips for Improving Your Credit Score to Become Mortgage Ready
Homes are in short supply, which has made the local market very competitive. As such, it’s imperative that homebuyers, especially first-time homebuyers, do everything they can to improve their ability to get a loan. One of the biggest pieces of the puzzle is your credit score.
Your credit score can make or break your chances of being approved for a mortgage loan. And when you find a house you want, you need to be able to move fast in this market. Here are eight ways you can improve your credit score to have a better chance at getting approved quickly.
Payment Ratios – Funds to Close
Whenever my team works with a client, maybe the most frequently asked question is, “How much will this house cost me every month?” It’s understandable….a necessary question. Buying a home is a huge financial investment. Not to mention one of the most important financial decisions a person will make. I find many clients are under informed about what home ownership truly costs.
The mortgage loan is simply one variable in the grand scheme of things. Instilling confidence by providing “how to” details is important…with financial clarity comes less anxiety.
All Eyes on Proposed Home Loan Fee Increases
If you’re a prospective homebuyer/homeowner seeking mortgage financing using ‘conventional loans’, you could end up paying more come April 2014.
‘Conventional loans’ = Fannie Mae and Freddie Mac, aka Government-sponsored enterprise (GSE) loans.
Earlier this month, the Federal Housing Finance Agency ordered Fannie Mae and Freddie Mac to increase charges called “guarantee fees,” or g-fees, that are embedded in the cost of home loans to protect investors from losses. Theoretically, raising these fees would bring private capital back into the mortgage market and better reflect a borrower’s credit risk.
For loan officers, this will likely make it more difficult to determine whether a borrower is a better candidate for a GSE loan or a loan through the Federal Housing Administration (FHA). But for borrowers, the potential impact is much more significant: adding thousands of dollars to closing costs.
Starting March 2014, the Loan-Level Price Adjustment fees, or LLPA fees, of GSE loans may be raised for borrowers with credit scores above 660 and a down payment of less than 30%. Borrowers with scores between 680 and 760 who are making a 5% to 10% down payment could see an interest rate that is 3/8 of a percent higher.
