first time home buyer: Can You Afford to Buy That House During This Crazy Real Estate Market? - 06/29/21 03:43 PM
The housing market has been on fire during the Covid-19 pandemic. People are looking to change locales, get more space, or just make some money owning real estate. Do not forget less than a decade ago; we were just coming out of the great recession and a major housing crisis. It is imperative that you put some thought behind where you want to live and how much house you can really afford. It may be tempting to rush and get in a bidding war during this crazy real estate market, but is this the best thing for your financial future? Or … (1 comments)

first time home buyer: Mortgage Payments Are Increasing, Despite Low Rates - 06/24/21 12:12 PM
Higher home prices are having a significant impact on housing affordability, regardless of historically low mortgage rates. Housing affordability has declined compared to a year ago in all four major regions of the U.S., according to the National Association of REALTORS®’ Housing Affordability Index.
“Incomes are coming down from recent highs, and declining incomes with higher home prices is not a good combination for a potential home buyer,” Michael Hyman, a research data specialist for NAR, writes for the association’s Economists’ Outlook blog.
To learn more read our helpful guide the SCOOP! Blog
… (0 comments)

first time home buyer: Higher Rates Causing Concern for Buyers? Take a Closer Look - 06/22/21 09:23 AM
Potential homeowners keep an eye on interest rate moves. And so do lenders. Higher rates mean borrowing power is diminished. Some become more serious ‘rate watchers’ than others. Others less so. But just reading the headlines of recent rate moves need to be looked at with a little more scrutiny. Recent Federal Reserve moves, or the lack of them, indicate inflation is not a problem. As a matter of fact, the ‘Fed’ would like this rate to move up from where it is today. 
The Federal Funds rate is the interest rate that banks charge one another so the borrowing bank can … (0 comments)

first time home buyer: How to Get a Mortgage Step by Step - 06/21/21 09:38 PM
Buying a home is a major event. If you're a first-time homebuyer, it's normal to have a lot of questions about the process. Can I qualify for a mortgage? How much can I afford? Do I need a mortgage before I look at homes? Where do I even begin?
In this article, we'll outline the steps to getting a mortgage – including how to qualify and what you can do to prepare for the financial responsibilities of homeownership.
1. Get your finances in order
Before lenders will agree to a loan, they want to know that you are financially prepared to take on the … (1 comments)

first time home buyer: Do You Need a Home Warranty? - 06/20/21 04:16 PM
When you purchase a home, even a home that isn’t new, there is a very good chance that you will be offered a home warranty as a safety net against expensive, unforeseen repairs. It may sound like a great form of financial protection—but is it really the safety net that homeowners expect? Let’s find out if home warranties are worth it.
KEY TAKEAWAYS
A home warranty reassures a homebuyer and provides the seller with a measure of protection against complaints about home defects that arise after the sale closes. The improper maintenance clause common to warranties can mean the new homeowner isn’t really … (1 comments)

first time home buyer: Bias in the Mortgage Approval Process - 06/17/21 09:02 AM
Discrimination and inequalities persist
The mortgage approval process refers to the steps related to securing a home mortgage. Estimates report that nearly two-thirds of a typical American household’s wealth comes from homeownership, making it crucial for prosperity.1
Lending is central to homeownership in the U.S., and the market is projected to grow. Fannie Mae, the government-sponsored entity that guarantees mortgages through a secondary mortgage market, estimates that home sales and purchase mortgage originations will rise by 6.2% and 14.5%, respectively, in 2021.2
Historically, homeownership has been influenced by racial, ethnic, and other prejudices. Even in the areas where it has improved, recent studies have characterized the reduction … (0 comments)

first time home buyer: Buying a House in 2021: What to Expect - 06/15/21 01:54 PM
Mortgage rates are expected to remain low, and home prices are forecast to rise more slowly than in 2020.
Buying a house is like playing a complicated sport. You need to know the rules and get in shape before hitting the field, and then nimbly maneuver through challenges to win the game.
In 2021, “winning” requires understanding how you stack up against lender qualifications, preparing to compete with other buyers and navigating a socially distanced homebuying process until vaccines end the pandemic.
Here's what buying a house in 2021 looks like and how to prepare.
To learn more read our helpful guide the SCOOP! Blog
… (0 comments)

first time home buyer: Home Appraisals: What You Need to Know - 06/14/21 09:03 AM
A home appraisal helps sellers extract maximum value and protects buyers and lenders from overpaying.
The goal of an appraisal is to provide an estimation of a property’s market value.
A home appraisal may not be top of mind when you're looking to buy, sell or refinance a home. But maybe it should be: An appraisal determines for the seller, the buyer and the lender how much a home is worth.
The purpose is to protect the buyer and the lender from paying too much.
A home appraisal isn't the most glamorous part of buying or selling a home, but it's a key step. Learn … (2 comments)

first time home buyer: What Is Escrow? - 06/13/21 10:14 AM
Escrow accounts are a key feature of real estate transactions and homeownership.
With an escrow account, the buyer's initial deposit is held until the sale moves forward.
Most people never encounter the concept of escrow until they buy a home. Escrow accounts are set up by third parties as a safe place to hold money. They are used for two main purposes when it comes to real estate: during a home purchase and afterward as an easy way for homeowners to save for property tax and insurance costs.
Here's what you need to know about escrow accounts, how they help facilitate a home purchase … (1 comments)

first time home buyer: Looking to Pay Less on Home Costs? Here are 3 Tips to Score the Lowest Mortgage Rate to Step You up for Success - 06/12/21 05:37 PM
If you're looking to get a mortgage, your goal should be to lock in the lowest interest rate possible. After all, the lower the rate, the less your loan will cost you each month. And that means you'll have less interest to pay over the life of your loan. Imagine you're taking out a 30-year $200,000 mortgage. If you lock in a mortgage rate of 3.25%, you'll pay $871 a month for principal and interest on that loan. But if you manage to lock in a rate of 3.05%, you'll pay $848 a month instead. You'll also, with that lower rate, pay a total … (2 comments)

first time home buyer: Freddie Mac Mortgage Programs: Which One is Right for You? - 06/11/21 12:59 PM
There is no one-size-fits-all solution when it comes to financing your home. Freddie Mac offers different loan programs that make it possible for borrowers in various situations to achieve their dream of homeownership.
Freddie Mac doesn't make loans. Instead, we purchase qualified loans from lenders. This provides crucial funding for the banks, so they can make more loans and keep interest rates low for borrowers like you.
Freddie Mac has a set of guidelines for the mortgages we back. Mortgages that meet these criteria are called conforming conventional loans. Conventional loans can either be fixed- or adjustable-rate and can be used to finance just … (0 comments)

first time home buyer: Saving for a Down Payment When You Live Paycheck-to-Paycheck - 06/08/21 08:36 AM
A down payment is an important component of taking a step toward homeownership. Saving for a down payment is also the biggest obstacle that you probably face when you want to buy a home.
A down payment is the cash you pay upfront when you are going to make a large purchase. If you were going to buy a $350,000 home with a 10% down payment, you would need to have $35,000 in cash.
Then, your mortgage lender provides the rest of the money to buy the home, and you pay your lender back over time. There are a few exceptions to lenders … (1 comments)

first time home buyer: A Hand Up with a Down Payment - 06/06/21 09:33 AM
James Truslow Adams, who coined the term “American dream” in 1931, defined the concept as a “better, richer, and happier life for all our citizens of every rank.” Today, the notion is now intricately tied to homeownership as a means of building wealth. Yet, as we celebrate American Housing Month this June, we must recognize that for many Americans, attaining homeownership—and by extension, the American dream—seems all but impossible. 
Purchasing a home usually requires a down payment. Prospective buyers must usually provide an initial upfront payment of 20 percent of their home’s purchase price if they want to avoid paying for private mortgage insurance. … (1 comments)

first time home buyer: How Much House You Can Afford - 06/04/21 03:19 PM
Income and savings matter—but so does your lifestyle
Good news: Answering the question, “How much house can I afford?” does not require calculus-level math skills. You just have to start with Trulia’s housing affordability calculator, and then factor in a set of facts about your life.
The life stuff is just as important as the calculator. Things like student loans, local cost of living, childcare, and your hobbies will affect how much house you can afford. And a mortgage lender can lend you as much as you can “reasonably afford,” which could be more than you want to pay. Here’s how to set the right budget … (0 comments)

first time home buyer: What to Expect During a Home Inspection? - 06/03/21 10:31 AM
From finding an inspector to dealing with surprises — this is your guide to getting a house checked out.
The first thing you need to know about home inspection: You’ll feel all the feels.
There’s the excitement — the inspection could be the longest time you’re in the house, after the showing.
Right behind that comes … anxiety. What if the inspector finds something wrong? So wrong you can’t buy the house?
Then there’s impatience. Seriously, is this whole home-buying process over yet?
Not yet. But you’re close. So, take a deep breath. Because the most important thing to know about home inspection: It’s just too … (0 comments)

first time home buyer: When Should You Lock a Mortgage Rate? - 06/02/21 11:37 AM
When it comes to interest rates, mortgage applicants should pay close attention because every little bit of interest counts. A quarter of a percentage point doesn’t sound like much, but it can mean thousands of extra dollars in interest paid, or not paid, over the life of a typical 30-year loan.
For buyers worried that rates will rise between the time they apply and their closing date, a feature called rate lock could be the solution.
What is a mortgage rate lock?
A rate lock freezes the interest rate, usually for a fee paid when you agree to the terms of the loan. The lender guarantees (with a … (0 comments)

first time home buyer: How to Get a Mortgage with Bad Credit - 05/31/21 10:43 AM
The higher your credit score, the more likely you are to get approved for a home loan. But that doesn't mean qualifying with a lower score is impossible. Here, we'll show you how to get a mortgage with low credit.
Is it possible to get a mortgage with bad or poor credit?
Before we talk about how to get a mortgage with poor credit, let's review what that actually means. Credit scores range from a low of 300 to a perfect score of 850. Within that range, here's how FICO (the most popular scoring model) classifies different scores:
Data source: myFICO.
Can I get approved for … (1 comments)

first time home buyer: Why Are Payments Higher When You Shorten the Term? - 05/29/21 06:39 PM
Many financial advisors recommend taking out a shorter-term loan. Why? Because over the life of the loan, less interest is paid to the mortgage company. That makes sense. Less interest is always good, right? But with a shorter-term loan, there’s a tradeoff. The shorter the term, the higher the monthly payments. Why is that, exactly?
Monthly mortgage payments have three basic components. The first is the actual loan amount. The second is the interest rate on the loan. The third is how long the loan is actually amortized over. Amortization simply means how the loan is paid down and when. Most mortgage … (2 comments)

first time home buyer: Time to Refinance: Mortgage Rates Dip Back Below 3% - 05/28/21 07:18 PM
Ultra-low mortgage rates returned this week, with lenders offering home buyers and refinancers a chance once again to lock in a rate below 3%. But the National Association of REALTORS® warns that these low rates in the 2% range won’t last much longer, and mortgage rates likely will edge up soon. The 30-year fixed-rate mortgage averaged 2.95% this week, Freddie Mac reports.
“Mortgage rates are continuing to offer many homeowners the potential to refinance and increase their monthly cash flow,” says Sam Khater, Freddie Mac’s chief economist. Homeowners who refinanced their 30-year fixed-rate mortgage in 2020 saved more than $2,800 annually, Khater … (0 comments)

first time home buyer: What Are the Pros and Cons of an Online Mortgage? - 05/26/21 09:45 PM
There are online mortgage lenders that are becoming an increasingly popular way to get funding to buy a home. You can go through these online lenders and do your entire mortgage application from your computer or tablet. This is different from the traditional way of doing things, where you have to go to a bank and complete your paperwork in person.
There was a recent survey from the financial website NerdWallet that found 64% of millennials would prefer to do the entire mortgage application process digitally.
Online mortgages are incredibly convenient, but as with anything, there are potential downsides to think about too.
Pro: … (0 comments)