Posts Tagged ‘Lenders’

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.

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Tips for Financing a Luxury Home in Tarrant County

Monday, March 15th, 2010

Tarrant County home sales activity has been quite brisk as of late, thereby bringing a collective sigh of relief to many real estate analysts across this region.

In fact, January brought a flurry of activity for luxury homes in Tarrant County, thereby bringing a much-needed boost for Tarrant County home sales activity.

Some of the hot spots for Tarrant County home sales activity were Colleyville and Southlake. Colleyville, for example, saw a 125 percent increase in homes sales last month compared to the same time in 2009. Luxury homes in Southlake saw a nice increase of 88 percent from a year ago. The median price for a home in this region was $592,500, which is an eight percent increase from January 2009.

With the impressive increases in home sales activity in Tarrant County, particularly among luxury homes, it is clear that more homeowners are able to secure luxury home loans, otherwise known as jumbo loans.

Although sales activity for Tarrant County’s luxury homes has been appreciated, it is still important to point out that financing challenges still exist when it comes to luxury homes.

If you have your mind set on a luxury home in Tarrant County, there are a few tips you should consider beforehand:

  • Today’s tight lending restrictions have affected every buyer, from the first-time homebuyer to the luxury home buyer. Although most large lenders still offer jumbo loans, they also require a larger down payment, often between 35 to 50 percent, versus 15 to 20 percent for a more modest home.
  • Be prepared to prove your finances and income, as most luxury sellers will require that only qualified buyers be brought to luxury home showings. A mortgage pre-qualification may involve showing your income, your assets and your ability to provide a hefty down payment.
  • Consider getting a pre-approval letter instead of a pre-qualification letter. In order to pre-qualify you must prove your ability to purchase the home; however, a pre-approval letter shows that you have already obtained your financing approval. A pre-approval letter can often allow you to better negotiate with a seller, as it shows you are both interested and able to purchase the luxury home.

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Why it Pays to be Preapproved

Friday, January 30th, 2009

Obtaining a mortgage loan is drastically different than it was even a couple of years ago. Banks and lending institutions are becoming increasingly hesitant to lend money due to the financial crisis gripping the nation and the only thing that less-than-perfect credit will get you is a rejection letter.

If, however, you have done your part by maintaining an exemplary credit rating and have pinched and saved for a substantial down payment (think 20 percent), then you may be well on your way to purchasing your first Dallas County home.

First Step: Preapproval!

An important first step in obtaining a mortgage loan is getting preapproved for a loan by a lender. For any first-time home buyer, this should precede any other moves you make, including looking for homes. A preapproval letter from a lending institution should act as your guiding light, so to speak.

A preapproval letter will not only show sellers that you are credit worthy and are serious about purchasing a home, but will also give you a clear picture of what size loan you can realistically afford. For example, let’s assume that Couple A and Couple B both want to purchase a home.

Couple A immediately heads to the financial institution of their choice and obtains a preapproval letter. Couple B skips this important first step and instead heads out to search for their dream Dallas County property.

Both couples end up falling in love with the same property, and both couples put in an offer.

Who do you think will get the house?

If you guessed couple A, you’re right. It is unlikely that a seller will accept the offer from Couple B because of the uncertainty of whether they can afford the home or even get approved for a mortgage.

Couple A, on the other hand, was prepared to make an offer, and the seller was comfortable accepting their offer because they were prepared and ready to own their first home.

The bottom line: make getting preapproved your first priority!

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Are you Ready to Buy a Home?

Monday, January 5th, 2009

Everyone tells you to stop renting and purchase a home. It’s a sound, financial decision, they tell you. It’s a great investment, they cry. Wanting to buy a home and being prepared to buy a home are completely independent of one another, however.

Your desire to purchase a piece of Irving real estate can easily become overshadowed by your inability to purchase one. Before calling a real estate agent, there are a few, important questions to ask yourself:

  • Do I have a steady job? This is one of the first things a lender will want to know when you apply for a mortgage. Keeping a job for at least two years, or staying in a similar field for the same length of time, shows a lender that you are a good credit risk and that you’ll be able to pay your bills with a steady source of income.

Bottom line: if you’re in the market to purchase a home, now is not the time to change jobs. And if you haven’t achieved a steady work history, you’ll need to work on that before applying for a mortgage.

  • How is my history of paying bills? A good credit history is a must when applying for a mortgage, as a lender needs to see a steady history of paying bills. And that doesn’t just mean your car and credit card payments. What about utility bills? Medical bills? Student loan bills? If any of these have fallen by the waist side, immediately get them up to date and establish at least six months worth of on-time payments before applying for a mortgage.
  • How much debt am I carrying? Although you may be managing your debt and paying your bills on time, a lender will look at your “debt ratio,” which is essentially the ratio of money going out on loans and credit cards and money coming in through your salary. If your debt ratio exceeds a certain percentage (lenders vary on this), you’ll need to pay down some of your debt before applying for a mortgage.
  • Do I have enough money saved for a down payment? Gone are the days of no-money-down mortgages. With the current credit crisis, most lenders require at least 10 to 20 percent down. Once again, if you haven’t achieved this, take another six months or so and continue to save money toward a healthy down payment.

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Home Buyer Tips: Preparing to Buy Your First Home

Friday, October 31st, 2008

Congratulations! You’ve finally decided to make the leap from a renter to a home buyer! This time in your life can be exciting – and for good reason. Owning a piece of Highland Park real estate is one of the best financial decisions you can make.

In order to ensure that the process of purchasing your first home goes smoothly, and that you are prepared – both financially and mentally – for the process, there are a few steps you should take before attending your first open house:

  1. Contact a lender – Ask friends, family or your real estate agent for referrals, and research the interest rates for lenders in your area. Once you have chosen a lender, you can then begin by researching your options. This usually includes getting a copy of your credit report and clearing up any problems.

A lender will then help you figure out how much money you can afford to spend on a home. They will ask for information regarding your income, debts and savings, and will use this information to give you a clear idea regarding on how much home you can afford.

  1. Once your finances are in order, a lender will then “pre-approve” you for a mortgage. This will allow you to search for homes in your price range, and will also give you leverage with the seller when submitting an offer for a home. In other words, if two offers are submitted, and one buyer has been preapproved, they will likely accept this offer over one that does not have a preapproval letter from their lender.
  2. Narrow down your choices. Decide what you want in a home and then focus on homes which meet those criteria. Looking at homes which are either out of your price range or do not meet your criteria will simply exhaust you and prolong the process of finding your perfect home.

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Exploring Fort Worth

Wednesday, October 22nd, 2008

The City of Fort Worth has many homeownership programs which are designed to turn homeownership into a reality for many qualified buyers. First-time buyers can take advantage of the several housing assistance programs, which are made possible through federal, state and local funds.

Fort Worth Homeownership Programs include:

  • Closing Cost Assistance/Down Payment Assistance

First-time homebuyers – or those who have not owned a home in the last three years – may be eligible for

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Pre-Qualify before you Buy!

Wednesday, May 21st, 2008

The term

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