mortgage: Barbara's Blog - Buying a Home with Cash
- 08/18/15 02:26 AM
According to Realty Trac, over 40% of home sales in the first quarter of 2014 were all-cash sales. For a seller, a cash offer may be the best bet especially with it getting harder and harder for sellers to qualify for a mortgage. But is a cash offer the best deal? Cash Appeal It is much harder for some buyers to qualify for a mortgage these days. Even being prequalified for a loan isn’t a sure thing anymore. A lender may check a buyer’s credit the day of a closing and decide they no longer meet their criteria for a loan. Or a … (1 comments)
mortgage: Barbara's Blog - PMI Insurance
- 04/07/15 03:30 AM
PMI or private mortgage insurance is basically an insurance policy on your mortgage a lender requires when the buyer does not have the typical 20% down payment. Even though the buyer pays the premiums, PMI protects the lender in cast the buyer cannot make payments and goes into default. It’s pretty much the only way a lender will agree to a conventional loan with less than 20% down.
Why the need to for PMI? It’s unfortunate but buyers with smaller down payments are considered to be more likely to default on their loan. The buyer qualifies for a loan and a lender … (0 comments)
mortgage: Barbara's Blog - Mortgage Myths
- 03/18/15 06:02 AM
The unemployment rate has seen some drops over the past year, a larger percentage of houses are reasonably priced, rental prices have increased approximately 10% over the past few years and mortgage rates are just slightly higher than the all-time record lows we’ve seen in recent months.
So why aren’t more people running to their local lender signing up for a mortgage? Possibly two mortgage myths that a buyer needs 20% down to buy a house and have to have immaculate credit to get a loan are holding people back.
Well, the good news is that neither is … (0 comments)
You may not believe this but lenders actually do want to give you a mortgage. As much as they do, they want to minimize any risk to them. They best way for them to ensure little to no risk is by using credit scores as part of their lending requirements. There are three companies that compile credit scores, Equifax, Experian, and Trans Union, each calculate scores differently with their own formulas and criteria. For example: · Equifax Beacon 5.0 Facta: scores range from 334 to 818 · Experian Fair Isaac V2: scores range from 320 to 844 · … (2 comments)
Being late with any payment affects your credit score, but being late with your mortgage has a stronger long-lasting effect on your credit score than most people know. FICO, which stands for Fair Isaac Corporation, is the credit-scoring system money lending entities use to check a person’s creditworthiness. FICO information such as debt-to-income ratio, payment history, credit inquiries, new credit accounts and many other factors to determine an actual credit score. Out of all the factors involved in tabulating your credit score, payment history accounts for 35% of your FICO score. According to the Ask Experian Team, a missed … (0 comments)
There are several reasons why you may have to sell your home fast – your company may be moving you to a new location, you may have lost your job and want to sell before a foreclosure or you may own more than the house is worth and want to get out from under a bad mortgage. Selling your home to an investor could be your best option. But how reliable is this method? Is this a legitimate company? The housing market drop has created a new business and a new way to scam desperate home owners. There are … (2 comments)
The National Association of Realtors estimates that due to the tighter lending requirements, home sales have been held back about 15% recently. This has been frustrating for both home buyers and sellers. Even some lenders with higher credit scores are finding it difficult to qualify for loans. Some are finding it hard to meet the down payment requirements as well as paying the private mortgage insurance for some government backed loans. Owner financing has become more intriguing to more potential home buyers and sellers. If both parties adhere to state regulations, use reputable sources to work through the transaction … (0 comments)
mortgage: Barbara's Blog - The Five Biggest Mortgage Mistakes You Can Make
- 09/25/14 06:04 AM
If you as a borrower spent a little more time preparing, negotiating and shopping for the best mortgage deal, you can paying far less for your loan than if you just went with the first lender you call. Here are five mistakes many borrowers make that can cost you money. 1. Believing advertised rates are reality for the majority We’ve all seen the ads boasting amazingly low interest rates that all home buyers want. But the reality is that unless you have perfect or near perfect credit, many of us will never see those low rates on our mortgage statements. You’d … (1 comments)
When talking about buying a house, have you ever said:
"I'll know when I see the right place." "I want to see what I can find on my own." "I'll only buy if I can get a fantastic deal." "I'm waiting for interest rates to go down."
If you have then you are not ready to buy a house.
There are all types of houses for sale in more areas than we can count so it should be easy to ‘find the right place’ especially with your real estate agent doing the preliminary search for you. … (0 comments)
According to Realty Trac, over 40% of home sales in the first quarter of 2014 were all-cash sales. For a seller, a cash offer may be the best bet especially with it getting harder and harder for sellers to qualify for a mortgage. But is a cash offer the best deal?
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