financing: Survey Reveals Consumer Confusion about Mortgage Process - 03/08/11 11:41 AM
More than two-thirds of Americans (70.6 percent) believe access to affordable mortgages is a serious problem, according to a new survey by MortgageMatch.com. Respondents also say that the most challenging aspect of getting a mortgage is understanding the mortgage process and dealing with the lenders' requirements, ranking it more challenging (32.3 percent) than getting the mortgage itself (23 percent) and negotiating the sale price on a home (25.3 percent). More than three out of four recent homebuyers (79 percent), especially those earning more than $50,000 a year, report that getting a mortgage was more difficult than they expected.
To add to … (1 comments)

financing: The Cost of a "No-Cost" Loan - 12/02/10 10:18 AM
Some home buyers who may be concerned about paying high closing costs might be tempted by a "zero-cost" or "no-cost" loan option, which requires no cash outlay, but typically adds a half percentage point to the rate. However, some financial consultants say these loans tend to be most beneficial to buyers planning to have the loan for less than five years.
KEEP THIS IN MIND
• One of the primary differences between a no-cost loan and similar loans is that no-cost loans do not tack on closing costs to the balance, but instead increase the rate.
• With no-cost loans, third-party … (0 comments)

financing: Know Your Credit Score - 08/04/10 05:34 AM
Whether you're in the market for a new home, or applying for a loan, before you start looking at neighborhoods, you need to look at something else-your credit score.  Here are some of the key terms you should know:
Payment History-Your payment history is a significant factor in determining your credit score.  A history of late payments on current and past accounts is likely to have a nigative impact on your score.
Amounts Owed-What you owe counts significantly in the calculation of your credit score.  Maintaining large balances on your credit cards may be a signal to lenders that you have accrued … (1 comments)

financing: Locking Your Loan Rate - 04/14/10 05:03 AM
You know that when you are seeking a mortgage you should shop around for the best rate.  But because interest rates fluctuate, it is a good idea to consider locking your rate.  A rate lock, also called a "lock-in", is a lender's guarantee that you will get a specific interest rate and number of points if you purchase a home within a certain period of time.
If you do not complete your home purchase or refinancing agreement before the lock expires and interest rates happen to rise, you will pay the higher rate.  If interest rates happen to drop during the … (0 comments)

financing: Get Your Finances in Shape for 2010 - 02/01/10 03:15 AM
Key points
• The new year is a great time to reevaluate where you stand financially.
• Consider these five resolutions to reshape your finances in 2010, including tips on budgeting, estate planning and more.
• Helpful information for everyone, regardless of age or income.
It wouldn't be the new year without resolutions. But whether it's trimming your waistline or firming your financial profile, the key isn't making the list, it's sticking with it! That's particularly true now, given the recent bear market and economic downturn.
Here are five steps to get you started. You don't have to do everything at … (2 comments)

financing: 5 Ways to Improve your Credit Score - 09/10/09 05:15 AM

•1.       Pay your bills on time.  Payment history accounts for roughly 35% of your score.  So paying bills on time is the most important thing you can do.  If you're behind, get caught up and then stay current.  If you're struggling, contact your creditors to work out a payment schedule.
 
•2.      Increase the length of your credit history.  It accounts for 15% of your score.  Canceling an old card or getting a lot of new credit within a short time span can hurt your score because it lowers the average age of your accounts.
 
•3.      Keep credit card … (2 comments)

financing: A Lending Hand, FHA 203K - 08/27/09 08:52 AM
Home renovations can be daunting, but financing them doesn't need to be.  Homebuyers considering a fixer-upper and homeowners thinking about doing a major rehab work might want to consider an FHA 203K loan.
Often called rehab or renovation loans, 203K loans differ from traditional mortgage loans.  Buyers who want to purchase a home in need of repair usually have to secure a loan to buy the property, get additional financing to complete the renovation and then get a permanent mortgage to pay off the interim loans.  203K loans, however, are made based on the after-repair value and include an escrow account, … (0 comments)

financing: Reasons Not to Rent - 07/10/09 04:34 AM
The evening news is beginning to sound more and more like the children's fable, Chicken Little - who proclaims "the sky is falling!"  With unemployment on the rise and an uncertain economy, buying a house may be the last thing on your mind.  But if you've been waiting to purchase a home, now may be the perfect time.  Here's why:
* It's actually more affordable now.  According to the National Association of REALTORS, the housing affordability index, which measures home prices, mortgage interest rates and family income, is more favorable now than any other time since NAR started the index 1970.
… (0 comments)

financing: Questions for Your Lender - 06/12/09 03:01 AM
If you are purchasing a home, obtaining a loan is a big part of the process.  Before you choose a mortgage lender, you may want to talk to a few lending institutions and ask them some questions.  Then use the information you gather as a basis for comparing loans and choosing the one that's right for you.  Here are some questions to consider:
             What documents will I need to provide?  You will need to provide proof of income and assets, but the amount of necessary paperwork will vary somewhat from lender to lender.
            How much time will it take to … (0 comments)