buy a house: Down Payments Reach a New High - 12/08/21 10:14 PM
The national median down payment hit its highest level since at least 2005, ATTOM Data Solutions reports. The median down payment on a single-family home purchased with financing in the third quarter was $27,500. That is up 41% from $19,502 in the third quarter of 2020.
Overall, the median down payment of $27,500 represented 8% of the national median sales price for homes purchased with financing in the third quarter, up from 6.5% a year earlier.
Down payments are higher likely because home prices are higher. The National Association of REALTORS® reports that existing-home sale prices were 13% higher in October compared to … (0 comments)

buy a house: 6 Mortgage Myths Debunked - 12/05/21 07:01 PM
We’ve all been cautioned by well-meaning friends and family. “It’s hard to qualify these days, even with a good income.” “You’ll need to put 20 percent down and have perfect credit.”
While there are plenty of mortgage misconceptions floating around these days — from how hard it may be to qualify to how much you should put down — it’s important to learn the facts and how they apply to you.
Not doing so could delay homeownership, and the benefits you would gain, by years.
What You Could Gain
If you are renting now, buying a home could be a better financial decision. Of course, that depends … (1 comments)

buy a house: Mortgage Rates Remain Stable - For Now - 12/03/21 09:09 PM
Mortgage rates held steady this week as the world awaits more information about the severity of the omicron variant of COVID-19 and ongoing supply chain issues. The 30-year fixed-rate mortgage averaged 3.11%, Freddie Mac reports.
“Mortgage rates continue to remain stable notwithstanding volatility in the financial markets,” says Sam Khater, Freddie Mac’s chief economist. “The consistency of rates in the face of changes in the economy is primarily due to the evolution of the pandemic, which lingers and continues to pose uncertainty. This low mortgage rate environment offers favorable conditions for refinancing.”
Omicron Variant Threatens More Disruption in Real Estate  
Higher Mortgage Loan Limits Set for 2022
Freddie … (3 comments)

buy a house: Higher Mortgage Loan Limits Set for 2022 - 12/02/21 10:35 AM
The Federal Housing Finance Agency announced Tuesday that conforming loan limits for mortgages backed by Fannie Mae and Freddie Mac will jump in most of the country to $647,200, an increase of $98,950 from 2021’s limit of $548,250. The higher levels are in response to rising home prices over the past year.
The FHFA’s House Price Index shows that home prices rose 18.05%, on average, between the third quarters of 2020 and 2021. The 2022 conforming loan limits are increasing by the same percentage, the FHFA reports.
However, in areas where the local median home value exceeds the baseline conforming loan limit, the … (0 comments)

buy a house: Mortgage Rates Still Low, But Home Affordability Has Declined for Many - 12/01/21 08:01 PM
Mortgage rates are still low but creeping up. The median home price is up in Southwest Louisiana, but nothing compared to the national median list price, and government programs could help first-time homebuyers.
Mortgage rates have been historically low for quite some time. Some 15-year rates have been as low as two percent, higher for 30-year loans.
“Rates will vary depending on the program, down payment, credit score, number of years, and paid discount points,” said Jennifer Spees, Louisiana Mortgage Associates. “For someone with good credit and limited to zero discount points, you may see a rate of 2.5 percent to 3.5 percent … (1 comments)

buy a house: How Homebuyers Can Battle Bias Against FHA, VA loans - 11/29/21 12:42 PM
With its record-breaking prices and sharp-elbowed bidding wars, this housing boom poses challenges even for deep-pocketed homebuyers. But for borrowers financing their purchases with mortgages backed by the Federal Housing Administration or the U.S. Department of Veterans Affairs, the hurdles are especially high.
Bidders using FHA loans and VA loans often find their offers rejected by sellers and listing agents weighing multiple offers. No official statistic tracks denials for buyers financing with FHA loans and VA loans, but real estate professionals say the reality is clear: Sellers place the highest value on cash offers, followed by bids financed with 20 percent down payments and loans that … (0 comments)

buy a house: 3 Things All Mortgage Applicants Need to Know - 11/28/21 11:34 AM
Getting a home loan? Here's some important information.
Most people who want to buy a home need to finance it, and that's where mortgages come in. If you're planning to apply for a mortgage, here are a few essential things every mortgage applicant should know.
1. Your credit score makes a huge difference in getting approved 
Of the different factors mortgage lenders look at when approving home loan candidates, credit scores carry a lot of weight. That's because your credit score speaks to how reliable a borrower you are. If your score is high, it sends lenders the message that you pay your bills on time … (3 comments)

buy a house: First-time Homebuyer Guide - 11/26/21 11:09 AM
So, you’re in the market to buy a home. Whether it’s your first foray into the exciting home-buying process or you’ve been through it before but forgotten the details, this guide provides first-time homebuyer tips to prepare you for what’s ahead.
What is a first-time homebuyer?
A first-time homebuyer might refer to someone who has never purchased a home before, but in some contexts, the definition is actually much broader. Homebuyers who don’t have a substantial down payment could be eligible for down payment assistance through first-time homebuyer grants and loan programs, even if it isn’t their actual first time buying a home. To qualify for many of these programs, buyers must … (1 comments)

buy a house: Zero Down Mortgages: Are They Right For You? - 11/24/21 07:56 PM
What is a Zero Down Payment Mortgage?
A zero down payment mortgage is exactly what it sounds like: a mortgage that requires no money down at closing. Buying a home and putting no money down to do it sounds appealing to many, but in reality, it’s hard to get a zero down payment mortgage in this climate, as banks no longer offer them to most consumers. Hard, however, doesn’t mean impossible. Here’s how you can score a zero down payment mortgage — and the pros and cons of getting one.
Can I Buy a House with No Money Down?
Not everyone will qualify for … (0 comments)

buy a house: 6 Steps to Expect During the Mortgage Process - 11/23/21 12:50 PM
So you’ve decided to buy a new home — congratulations!
You’re probably feeling a lot of emotions right now. Elation. Anxiety. And possibly confusion. You may wonder what’s going to happen next. Or worry that if you forget to send a document or make a call, you’ll derail the process.
First of all, relax. Most likely, you’re surrounded by professionals who’ve been through this before. But just in case you’re looking for backup, we’ve assembled the steps you can typically expect and what you’ll need to do. Whether you’re at the start of this journey, or nearing its end, we hope this guide … (1 comments)

buy a house: Mortgage Broker Vs. Loan Officer Vs. Mortgage Banker - 11/22/21 01:33 PM
When you need to get a mortgage, there are so many options that it might feel overwhelming. Your choice can have a big impact on how much time you spend shopping for a mortgage and how much you end up paying. By learning about the basic differences among three types of mortgage professionals—mortgage brokers, loan officers and mortgage bankers—you can figure out who can save you the most time and money.
Mortgage Broker
Mortgage brokers will shop around for mortgages on your behalf. They can save you time and money by looking for the best available deals for someone with your financial profile—assuming they’re … (0 comments)

buy a house: Proof of Funds Letter for a Real Estate Purchase: Why Home Buyers Need It, Bad - 11/21/21 05:30 PM
Is your realtor asking for proof of funds? What is proof of funds in real estate anyway? A proof of funds letter is a document that proves that a home buyer has enough liquid cash to purchase a home. It’s essential paperwork that all home sellers will want to see, so home buyers shouldn’t feel prepared to make an offer without one.
“Sellers won’t want to take their property off the market without knowing that the buyers are truly able to afford it,” says Linda Walters, a real estate agent at Sage Realty LLC in Wayne, PA. Here’s what buyers need to know about how to get a … (2 comments)

buy a house: Is The Housing Market About to Crash? Here's What the Experts Say - 11/20/21 02:53 PM
The U.S. housing market is on fire. Double-digit appreciation is the rule. Giddy sellers are sifting through multiple offers. Frantic buyers are forced to pay more than asking prices — sometimes by $100,000 or more.
The real estate party is in full swing. The National Association of Realtors said this spring that prices of existing homes soared a record 17 percent from March 2020 to March 2021 — a pace that eclipsed even the eye-popping appreciation of the last boom. Appreciation has cooled since then, but only a little — prices rose 13 percent from September 2020 to September 2021.
The last time the U.S. … (2 comments)

buy a house: How to Stay Competitive Using a VA Loan in a Sizzling Housing Market - 11/18/21 08:49 PM
KEY POINTS
In a sizzling housing market, some military families with VA loans struggle to compete with other buyers and get offers accepted. However, VA loan buyers may stand out by working with a specialized lender, making a down payment or a stronger offer, real estate experts say. In a sizzling housing market, some military families using VA loans are struggling to buy homes, real estate experts say.
VA loans, mortgages partly guaranteed by the U.S. Department of Veterans Affairs financed 14% of home purchases from July 2019 to June 2020, according to the National Association of Realtors. The loans generally have … (1 comments)

buy a house: Ask Yourself These 3 Questions Before Choosing a Home Mortgage - 11/17/21 09:30 AM
Some home buyers may think getting a loan for a new home is complicated. In reality, it’s not! It is the same loan you would get for an existing home. Not all mortgage products are created equal, so finding the right one is important. The good news is there are many types of loans available in the market so homebuyers can find the perfect fit.
What makes the perfect home loan?
1. How long will you live there?
It’s vital that you ask yourself one crucial question: How long do you plan on staying in the home?
In general, loan terms are set at 30, … (2 comments)

buy a house: 6 Questions Every Unmarried Couple Should Ask Before Buying a House - 11/11/21 08:41 PM
Not ready to get married, but ready to buy a home? You and your partner aren’t alone. Unmarried couples made up 9 percent of homebuyers in 2020, according to the National Association of Realtors. That number seems likely to increase, too, as couples reconsider the financial implications of saying “I do” in the wake of the pandemic.
While buying a house with your partner can feel like an exciting new chapter, it’s important to recognize that it doesn’t necessarily look that way in the eyes of a court.
“With married couples, you’ve got the domestic relations courts that have a framework of rules. Those … (2 comments)

buy a house: Mortgage Rates Drop Below 3% Yet Again - 11/10/21 06:41 PM
A year ago, at this time, the average 30-year fixed-rate mortgage averaged 2.84%
Mortgage rates fell below 3% in the week ending November 10, according to the latest Freddie Mac PMMS mortgage report.
The 30-year fixed-rate mortgage declined to 2.98% last week, falling 11 basis points from 3.09% the week prior. A year ago, at this time, the average 30-year fixed-rate loan averaged 2.84%.
“Despite the re-acceleration of economic growth, the recent bond rally drove mortgage rates down for the second consecutive week,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “These low mortgage rates, combined with the tailwind of first-time homebuyers entering the market, … (0 comments)

buy a house: Understanding VA Home Loans - 11/09/21 09:24 PM
The path to homeownership can be challenging for military families, whose sacrifices include moves, deployments, and other uncertainties. With VA loans, the U.S. Department of Veterans Affairs (VA) is helping make housing affordable for eligible veterans.
If you are a current service member or veteran, keep reading to learn more about VA home loans and the process for buying a home using a VA home loan.
What Is a VA Home Loan?
The U.S. Department of Veterans Affairs guarantees VA loans to make housing affordable to eligible U.S. veterans.
You can apply for a VA loan with any mortgage lender that participates in the VA Home … (1 comments)

buy a house: 6 First-Time Homebuyer Hopes and Dreams That Are Completely Delusional Today - 11/08/21 07:59 PM
Every house hunt starts with a dream, one that can easily escalate into pure fantasy. Homebuyers, particularly first-timers, often harbor visions of purchasing the perfect house, in a great neighborhood, for a bargain price.
All that might have been achievable—with some luck—in the past. But in today’s hot seller’s market, once buyers move beyond mooning over listings to making an actual offer, things can get jarringly real all too fast.
As a real estate agent, I see this wake-up call regularly. So do my colleagues.
Peter Cantine, a real estate agent in the Catskills where I live, says many of his clients want “a house … (1 comments)

buy a house: Understanding Your Appraisal - 11/06/21 06:07 PM
What you think your home is worth may not be what your lender thinks your home is worth. Rather, what the appraiser tells your lender what it’s worth. The final word comes straight from the appraisal, not the lender. The lender simply reports to you what the appraiser determined. Here’s how to interpret how the appraiser arrived at the value that it did. You can get the final appraised value but it’s also important to know how the final value turned out the way it did.
First, there are different types of appraisals. There’s a desk appraisal, a drive-by and a full … (2 comments)