Archive for the ‘Mortgage’ Category

Home Loan Details to Consider

Wednesday, February 29th, 2012

Obtaining a home loan is often a complicated endeavor. In particular, there are a number of details to consider when searching for a home loan that is right for you. Here are just a few loan details to pay close attention to when researching your home loan options:

  • Rates – A home loan rate is likely the first detail you will take into consideration when shopping for home loans.  When researching your home loan options, ask your local lender for a comprehensive list of current interest rates, and ask if the listed rate is good for the day or the week. In addition, ask whether the rate is for a fixed or adjustable-rate mortgage, and ask about the loan’s annual percentage rate (APR). The APR, unlike the interest rate, includes the rate of the loan, as well as any points or broker fees on the loan, thereby providing you with a more accurate financial picture.
  • Points – The points of a loan are often an important consideration, as they are tied into the interest rate offered by the lender. Typically, the more points you pay the lower interest rate the lender may offer.
  • Fees – A home loan isn’t just about the interest rate. Instead, home loan fees can add up, both when you apply for the loan and at closing. Just some of the fees charged by lenders include: loan origination fees, underwriting fees, broker fees, and transaction, settlement and closing costs. Some of the fees charged by the lender are negotiable; some or not. The lender should be able to provide you with a comprehensive list of loan fees so you can clearly see how much money you will pay for the loan. In addition, there are a number of lenders offering “no cost” loans, which means all those fees are rolled into the cost of the loan. As such, no cost loans typically come with higher interest rates.
  • Private mortgage insurance – Part of your home loan may include a private mortgage insurance payment. If you are unable to provide at least 20 percent of the cost of the property as a down payment, your lender may require that you pay private mortgage insurance. Although the total cost of private mortgage insurance is low when compared to your overall mortgage payment, it nevertheless should be taken into consideration when applying for a home loan.

Mortgage Tips for First Time Homebuyers

Friday, October 28th, 2011

As a first-time home buyer, you may be quite overwhelmed at the thought of obtaining a mortgage. There seems to be so many options, and the process of finding a home loan program and applying for it leaves you feeling nervous and more than stressed out!

However, the mortgage process is not so intimidating if you take it one step at a time:

  1. Consider how much money you can spend on a new home – Before you even look at your first property, consider how much of a home you can afford. It simply doesn’t make sense to waste your time and build up your hopes, only to learn that you cannot afford as much of a house as your first thought. In addition to considering a monthly housing expense, add in the cost of taxes, as well as utilities and the cost of maintaining and updating your home.
  2. Talk to a professional - In addition to carefully reviewing your finances, now is the time to sit down with a mortgage broker and get preapproved for a mortgage for a Spring Branch property. A mortgage preapproval will accomplish a number of things: it will check your credit to make sure you can be approved for a mortgage; it will allow you to understand how much of a mortgage you can be approved for; and it will give you instant credibility among home sellers and realtors.
  3. Consider how much money you need for a down payment – One of the biggest ways lenders have changed as a result of the recession and housing downturn of the last, few years is that they want to see down payments. If you want to be approved for a home loan with a competitive interest rate, you will likely need to come to the table with a down payment totaling between 15 and 20 percent of the sales price of the home.
  4. Consider what type of home loan is best for you – Although the days of “no money down” home loans are gone, there are still a number of very attractive home loan programs for first-time home buyers. It is best to look into different programs, through a number of different lenders, to see which one works best for your financial situation.

Get Out Of Debt To Get The Best Home Mortgages

Monday, September 19th, 2011

So many people are losing their homes due to foreclosures on their homes, but there are still many first time homebuyers out there trying to be approved for financing so they can start growing their family, and put down roots. The biggest problem is being approved for a home loan today. Those ninety five percent home mortgages that home builders depended on for the last decade are now gone, and financing is dealt with in a much stricter format. Many new married couples have a huge debt or financial burden before they even get started from college loans, and credit card debt that they ran up while in school.

Even though they have great paying jobs, and pay their bills on time, except for those pesky student loans, and a couple of credit card that have huge monthly minimums attached. Their credit is already destroyed before they seemingly got started on their life

Get Great DFW Home Financing Right Now

Tuesday, April 19th, 2011

The home mortgage bubble burst over three years ago, and those once ever so popular sub prime loans are completely gone. Most consumers always thought that you had had to have a great job, and superior credit history get to buy a home, but that was not the truth in the 90s, and into the mid 2000s. Now, when applying for a home loan any negative information on a credit history or a credit score of less than 750 is an automatic red flag for home lenders. People now have to do the right things in life, and be accountable for their actions financially to enjoy homeownership.

Debt to income ratios are now closely scrutinized, as well as how secure a person

Financial Reasons to Buy

Tuesday, April 12th, 2011

Setting Aside The Personal Why Of Purchasing A Home

Ever since most of us can remember the American dream has been baseball, apple pie, mom, a good job, and oh yes to be a homeowner. It is an iconic, and social mark that most all aspire to rise to in their lifetime. In recent years, people have been a little hesitant about buying a home due to the huge market modification that has played out with all the foreclosures that took place. Owning a home is still the best investment a person can make on an individual basis in the United States.

For example if you are paying twelve hundred a month for a three bedroom two bathroom apartment, and you have six thousand dollars sitting in your IRA or passbook savings account. Your net worth would be valued at the six thousand you are holding onto currently. If you owned a home according to the nations average, your personal net worth would be about one hundred and eighty six thousand dollars.

Over the last six decades, homes on the average have risen in value each year on average of 4.8%. Even when the market has a slight downward slope it has always recovered, and started it slow climb once again. Of course, California, and Georgia seem to be the worst hit during the fallout, but Texas has seemed overall immune to what is going on in the other forty nine states. This is where your return on investment comes into play, and once the mortgage is paid off, you will have usually doubled your original investment in the home.

The fact most people will never have enough money to retire on without working is another reason to own a home right now, as once you are in your golden years, and need that equity to live off of while living in a retirement community for the rest of your years. This will pay your bills way down the road, and an apartment dweller will never have that safety net in place.

Saving money on taxes to keep your housing or monthly mortgages low, is a big reason also, and some first year homeowners are receiving in the area of eight to ten thousand dollars in tax deductions from their home interest payments during that initial twelve months. There are also additional tax credits available when replacing certain products and appliances in a home with

How to Obtain the Best Dallas Mortgage

Monday, April 4th, 2011

Before you begin dreaming of owning your next home, you must consider the importance of obtaining the best mortgage. A mortgage is the groundwork of any good home purchase; find a great mortgage and you could be priming yourself for an excellent investment; lock into a not-so-great mortgage and you could be looking at years of headaches and financial problems.

There are a number of factors to consider when obtaining the best mortgage:

  • Your credit - If you want to obtain the best mortgage, take a look at your credit first. A good credit rating is vital for obtaining the best mortgage, so it is important to first order a copy of your credit report from all three credit reporting agencies. Once you have the credit report in front of you, take the time to carefully review it and make any necessary corrections. If you find any discrepancies or errors on the credit report, immediately report it to the appropriate credit reporting agency. Fixing your credit problems before you head to a lender is the easiest way to ensure you are on the right path to obtaining the best mortgage.
  • A large down payment

Getting The Best Financing

Monday, June 28th, 2010

When you decide to purchase a home, the first step to take after a careful analysis of your finances is to shop for a lender, and shop very carefully to ensure you are getting the best financing possible.

Certainly, you are anxious to meet with your Realtor and get started on the search for your new home, but not getting your financing in place first could be a costly mistake. Finding a lender with the most favorable terms in this tight credit market will assuredly take some time, so, comparison shop a number of lenders, and be patient, cautious and pay close attention to every detail of the loan terms offered.

Before you meet with a prospective financier, be absolutely sure that your credit (FICO) score is high enough to attract a lender, (750 or more) otherwise, if lower than 750, even if approved, it is likely your loan terms will be nowhere near as attractive as the terms you could have obtained with a higher score. However, besides your FICO score and employment history and income, each lender has its own additional criteria in deciding whether to grant a loan, and at what terms.

Obtain copies of your credit reports from the three major credit reporting agencies

How much Home can you Really Afford?

Thursday, May 27th, 2010

Most of us have had a crash course over the last year about foreclosures and have seen first hand the many homeowners who found themselves in over their heads in mortgages that they couldn't afford. So, now the time has come for you to purchase your first home and the question that seems to be looming in your head is: how much house can I afford?

There are many factors that you should consider when purchasing a Las Colinas home, and the first of which is your budget. Although your lender will ultimately inform you about how much home you can afford, many home buyers want to figure this amount out before they head to the lender, and rightfully so.

Here are a few factors that you should consider when determining how much home you can afford:

  • Income - Your income - in particular, your annual income - will play a big role when determining how much home you can afford. A good rule of thumb is to multiply your annual gross income by two and a half to find your home price limit. Although this number, of course, is simply a starting point, it can provide you with a good deal of insight when considering how much home you can afford.
  • Debt-to-Income Ratio - Many lenders, when determining how much home you can afford, will take into account your debt-to-income ratio, which essentially is the amount of debt you have versus the amount of your income. Student loans, credit card debt and car loans are just a few of the things that can raise your debt-to-income ratio, thereby lowering your overall home loan approval number. A good rule of thumb is to pay down as much debt as possible (and not to accrue any new debt) before applying for a home loan.
  • Housing Expense Ratio - Most lenders will make an assumption that your monthly housing expenses should not exceed 25 to 30 percent of your gross monthly income.
  • Other Factors - Other factors that you may want to consider when deciding how much home you can afford are interest rates, closing costs and home loan types. For example, just a percentage point either way on a $200,000 loan can mean hundreds of dollars a month in interest fees.

Is a Mortgage Possible without Perfect Credit?

Monday, April 5th, 2010

Can you really obtain a mortgage if you don't have perfect credit, given today's credit climate?

Although the government keeps promising otherwise, most homeowners are still finding it decidedly difficult to secure a mortgage in the Allen real estate market unless they have spotless credit. The reality is that there are still plenty of qualified buyers out there who want to own a home and there are just as many homebuyers who are having a difficult time qualifying for low mortgage interest rates.

So, we've concluded that getting a mortgage with a competitive interest rate in today's economic climate may be challenging, but it is important to point out that there are still a variety of attractive home loans for those home buyers with less-than-perfect credit and even for homeowners with little equity in their homes.

Where do I go from here?

If you are one of those home buyers who desperately want a home in the Allen real estate market but you're lacking that perfect credit score, you may be wondering how you go about negotiating the landscape of today's home loans.

One factor that is important to remember is that you will have more wiggle room if you have more money down or more equity in your home. Most lenders will require less down if you have a higher credit score and more money down if your credit score falls below 630.

If you are trying to refinance your home with average credit, but the equity in your home is quite small, then you may have to pay more in points. Most experts agree that you will likely have to give up at least a point or more above the published rates if you have little equity. Some lenders, like Freddie Mac, have refinancing programs for mortgages up to 105 percent of their appraised value, and Fannie Mae's loans can loan up to 95 percent of their appraised value.

Where should I turn?

The bottom line is that there is no substitute for doing your homework. There is simply no better way to explore your options than to seek information from several sources, including your current home loan provider, you local bank, and your mortgage broker.

Don't ever underestimate the value of a good mortgage broker, as this type of professional will help you find the best rate possible for your particular situation.

New Home Buyers: Should you use the Builder

Tuesday, March 16th, 2010

You may be looking at some of the fantastic Allen new home communities and wondering if they are right for you. From outstanding home amenities and features to beautiful communities with plenty of recreational amenities, Allen new home communities are quite attractive to today's home buyers.

Because of the tight lending standards of many lenders, securing financing may be a bit more of a challenge. You may be tempted to take advantage of the builder's preferred lender to simplify the process, but is this always the right move?

  • Allen new home communities often come with their own lender. Many times, builders will offer special incentives for buyers if they use the builder's lender. From upgraded carpeting and cabinetry to landscape packages, many of the incentives offered by the builder are meant to tempt buyers into using their lenders. Often times, the builder's lender has the best deal, but many times the best deal is with an outside lender. In short, don't let a few upgrades or incentives sway your decision to secure the best financing.
  • You may be able to secure financing faster through a builder's lender than through an outside lender, as they lenders are expected to get buyers pre-approved in a timely fashion. Therefore, many builders will likely push their own lender because they can hasten the entire house buying process and save themselves thousands of dollars in holding costs.
  • Do your homework and decide upon the best time to lock in a good interest rate, either through the builder's lender or an outside lender. Don't expect the builder or the builder's lender to advise you on the best time to lock in the lowest interest rate; you must do this yourself.
  • Regardless of whom you choose to help you finance your purchase, make it a point to educate yourself on the home loan process so you can be sure you are getting the best financing terms. Weigh the benefits of interest rates, points and incentives between lenders and make a decision based on money, not on convenience.