Home Values in the US are Increasing – Why the Time to Buy Is Now

Posted on December 17, 2016 by Scott Li

The decision to buy a home is a hard one to make, especially when the real estate market never seems to stay steady long enough to make the right choice. However, if you’ve been on the fence, now is undeniably the right time to buy a home. You’ll certainly be glad you didn’t wait.

Home Prices are Leveling Out

Although home prices have been on the rise throughout 2016, experts believe that things will shift in 2017. Interest rates are starting to climb in the last quarter of 2016, and as they continue to climb, home prices should start to level out, if not fall somewhat. If you’ve been waiting for the rising prices to slow down, now is the perfect time to bid on your dream home and make things happen. The flood of buyers can’t make up for the numbers of unsold homes, and because so many have been on the market for so long, sellers are ready to start making deals. read more

What Goes into Mortgage Preapproval?

Posted on December 1, 2016 by Scott Li

Mortgage Preapproval

In today’s competitive real estate market, mortgage preapproval is very important. The mortgage preapproval process can (and usually does) take some time, but once you have it, sellers will take you more seriously. Here, you’ll learn about the process and what you’ll need to get preapproved for your new home.

Prequalification vs. Preapproval

Although these two things may seem the same, they aren’t. A prequalification doesn’t require a credit check. In fact, a loan officer will simply ask you about your credit score, your income, your debt, your assets, and the amount of down payment you’ll have, then tells you whether you qualify for a mortgage – and for how much. Because there’s no credit check involved, sellers don’t often take prequalification seriously. Preapproval, on the other hand, is far more involved. When you receive a preapproval amount from a lender, you can feel confident that you will qualify for that mortgage once you’ve chosen a home. read more

Need a Loan for a Tougher to Approve Property?

Posted on November 30, 2016 by Scott Li

Mortgage Approval

If you want to buy a traditional single-family home, getting a loan isn’t too difficult if you have good credit. However, if you want to buy a condo or townhome, things are a little different. These properties present challenges for those who want to buy them, but there are some tips and tricks for getting your mortgage approved.

Why Lenders Don’t Approve

Before you can set out to win over a lender and get the mortgage you need to buy a condo or townhome, it’s important to fully understand why so many banks simply won’t provide the funds. In some cases, the building may be under construction. In others, the bank might feel that one person owns too many of the units, or that too many of the units are being rented. What’s more, if there is inadequate insurance, or even if too many people are behind on their monthly dues, banks typically avoid these properties. Fortunately, there are some things you can do. read more

How to Get Out of Mortgage Debt Faster

Posted on November 29, 2016 by Scott Li

Your mortgage is very likely the largest debt you’ll ever have. Getting out from under that debt quickly can save you tens of thousands of dollars in interest charges, too. Here are a few tips and tricks for paying off your mortgage more quickly so you can reap the benefits of owning your home outright.

#1 – Make Extra Payments

The best way to get out from under your mortgage debt quickly is to make extra payments on your loan. Although one extra mortgage payment per year can knock down the principal significantly, it’s even better if you can make one extra payment each quarter. By making four extra payments a year, you can drastically reduce the length of your loan term and save thousands on interest. What’s more, you’ll own your home far more quickly. read more

Are Credit Guidelines Starting to Loosen Up?

Posted on November 18, 2016 by Scott Li

are-credit-guidelines-starting-to-loosen-up

According to senior loan officers across the country who were surveyed by the Federal Reserve, the standards used to help lenders determine who qualifies for mortgages are loosening. This is especially true when it comes to residential loans, but just about everyone who is interested in buying a home can benefit in some way.

Slow but Steady Changes

When it comes to standard GSE-eligible residential mortgages – which are the most common credit mortgages – 88.9% of lenders reported that there were no real changes in credit requirements over the last three months. However, 11.1% of lenders said that credit requirements have eased somewhat, allowing them to provide loans to people who may not have qualified only a couple of months previously. Government residential mortgage credit standards remained relatively the same, as did QM jumbo loans. In fact, some providers of jumbo loans (1.6% of banks) reported some tightening of credit guidelines. read more

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