homeownership: Can You Buy a House With Low Income - 07/22/23 01:10 PM
If you don’t have substantial earnings, it could still be possible to buy a house.
Buying a home can be challenging if you have low income, but it's an important step toward building assets and growing your net worth. Loans for low-income borrowers can make homeownership more achievable.
What Is a Low-Income Home Loan?
A low-income home loan is a mortgage that homebuyers can qualify for even if they don't have substantial earnings.
Some types of home loans set income limits. Others are open to people with higher incomes but don't exclude low-income borrowers.
Private lenders issue low-income home loans that are insured by government agencies … (2 comments)

homeownership: Complete Checklist of Documents Needed for a Mortgage - 07/19/23 05:11 PM
Ready to apply for a mortgage? This document checklist will help you find what you need.
When you're buying a home, gathering the paperwork for your mortgage before you apply can be a big task. Tracking down documents can take time but doing it before you need them could help you get to the closing table faster.
You will owe your lender a stack of documents once you apply – and during underwriting – that show you can repay the loan. A mortgage application typically requires a paper trail to verify:
Income and employment. Assets and debts. Credit history. Identity. Rental history. Other information, such … (2 comments)

homeownership: Mortgage Points May Help Homebuyers Lower Monthly Costs amid High Interest Rates. How to Know if This Strategy is Right for You - 07/17/23 02:48 PM
As interest rates have climbed, homebuyers have been confronted with higher borrowing costs.
That has led more home purchasers to opt for one strategy, purchasing mortgage points, as a way to defray higher monthly payments.
Mortgage points let buyers pay an upfront fee to lower the interest rate on their loans. In some cases, sellers will help to buy down rates to help ease transaction costs.
Almost 45% of conventional primary home borrowers bought mortgage points in 2022 to reduce their monthly mortgage payments, a trend that has continued into this year, according to recent research from Zillow.
That is up from 29.6% in 2021, when interest rates were lower.
The … (1 comments)

homeownership: How to Decide What Types of Mortgage Loans are Right for You - 07/13/23 10:29 AM
Your financial history and housing plans can determine your ideal mortgage type.
Your life and finances are different from every other home buyer, and your mortgage should be tailored to fit. There are several different types of mortgage loans. Finding the type of mortgage that meets your unique needs can save you money and help make you a homeowner sooner.
These types of mortgage loans may fit you, if……Your credit is great, and you have good savings
Conventional mortgage: This is a traditional type of mortgage loan. The mortgage lender assumes more risk than they do with a government-backed loan. Conventional loans can be fixed-rate or adjustable-rate. … (3 comments)

homeownership: What a $250,000 Home Looks Like in 25 Major Cities - 07/10/23 09:18 AM
Find out what $250K buys you across the nation.
Whether you’re simply browsing or looking to relocate, we’ve scoped out a home for sale for $250,000 in 25 major cities across the country. Revealing just how much house you can get for your money, these homes range from a 500-square-feet coop in New York City’s East Harlem neighborhood to a 3,052-square-feet single-family home in El Paso’s Northwest neighborhood.
For more information on what a $250,000 home looks visit the Scoop Blog
… (5 comments)

homeownership: What to Know Before Buying a House - 07/07/23 10:14 AM
The United States' mortgage debt totaled more than 15.5 trillion in the first quarter of 2019(Opens Overlay), making it the most substantial debt for American households. Conventional wisdom tells us mortgages are good debt because homes typically appreciate in value, but that doesn't mean you should get a mortgage without careful research. Here are things to know before buying a house.
1. Mortgage prequalification and mortgage preapproval aren't the same thing
Mortgage prequalification and mortgage preapproval are steps most people take before making an offer on a house. However, they aren't the same thing.
Being prequalified or conditionally approved for a mortgage is the best way … (2 comments)

homeownership: How to Pay Off Your Mortgage Early - 07/05/23 01:58 PM
Some homeowners are eager to get out of their mortgage early, with reasons ranging from eliminating the psychological pressure of debt to slashing interest payments. For retirees, especially, paying off a home loan early can help increase cash flow.
Whatever your motivation, paying down your mortgage ahead of time reduces the amount of interest you’ll pay on the loan. Here are some early payoff strategies to help you achieve that goal.
Can you pay off your mortgage early?
In most cases, you can pay your mortgage off early without penalty — but there are a few things to keep in mind before you do:
Check for … (2 comments)

homeownership: How To Get Free Money or Make Easy Money for Your Down Payment - 07/02/23 03:15 PM
Want to buy a house but short on cash to get the deal done? It's a common problem that is keeping countless potential buyers on the sidelines. "Money issues often stand in the way of homeownership," said Bankrate. "A survey by rental service Apartment List found that 80 percent of millennial renters want to buy a home, but most say they can't afford to."
A recent story in Apartment Therapy titled "How I Saved $40K in 5 Years for a Down Payment" piqued our interest. Their tip: Get a side hustle and sock all that money away. Those are some impressive saving skills, but if you're saying … (4 comments)

homeownership: How Long Does a Pre-Approval for a Mortgage Last? Understanding the Timeline - 07/01/23 12:34 PM
When it comes to buying a home, obtaining a mortgage pre-approval is an essential step in the process. A mortgage pre-approval provides you with a clear idea of your budget, helps you narrow down your home search, and makes you a serious contender in the eyes of sellers. 
However, it’s important to understand how long a pre-approval for a mortgage lasts and the factors that can affect its validity. In this Redfin article, we will delve into the details of mortgage pre-approvals, their typical duration, and some key considerations.
What is a mortgage pre-approval?
A mortgage pre-approval is a lender’s valuation of your financial situation to determine the … (1 comments)

homeownership: 5 Things to Know Before Filling Out a Loan Application - 06/27/23 11:51 AM
Getting your hands on and filling out a home loan application is the first thing you’ll likely do when deciding it’s time to buy and finance a home. You can complete an application in the presence of your loan officer (preferred) or you can DIY at a lender’s website. But whenever and however you apply for a mortgage, there are a few things you need to know beforehand. Here are five of them.
First, there’s a difference between filling out a loan application for a loan approval compared to completing some basic information to receive a prequalification letter. In order to get … (2 comments)

homeownership: Why Lenders Want to See Your Bank Statements - 06/23/23 09:02 AM
This might be a bit too obvious but there are other reasons why lenders want to see copies of your bank statements besides seeing how much money you have. One of course is in fact to see how much money you have but not enough just for your down payment. There are a few loans out there that don’t ask for a down payment, but those are typically government-backed programs such as VA and USDA programs. Lenders also need to know if there are enough funds available for closing costs. That might also be a bit obvious but there are two … (1 comments)

homeownership: Understanding Common Types of Mortgage Loans - 06/21/23 09:07 AM
There are many different types of mortgage loans. It’s important that you understand your options and the different factors you’ll want to consider before deciding which mortgage is right for you.
Fixed-Rate and Adjustable-Rate Mortgages
There are two main types of mortgages: fixed-rate and adjustable-rate mortgages. Each mortgage comes with its own set of features and benefits for you to consider.
Fixed-Rate Mortgage: This mortgage type has an interest rate that stays the same for the life of the loan. If you select a fixed-rate mortgage, you’ll pay the same monthly principal and interest payments for the term of your loan. However, your monthly … (1 comments)

homeownership: Mortgage Loan Modification: What It Is and How to Get One - 06/14/23 02:56 PM
Loan modifications are a long-term financial relief option for homeowners who can’t make their mortgage payments. If approved by your lender, this option can help you avoid foreclosure by lowering your interest rate or changing the structure of your overall loan.
What is a loan modification?
A loan modification involves changing your existing mortgage so it’s easier for you to keep up with your payments. These changes can include a new interest rate or a different repayment schedule. It likely won’t reduce the amount you owe on the balance of your mortgage.
Lenders allow borrowers to modify loans because default and foreclosure are more costly to … (2 comments)

homeownership: What is the Home Mortgage Disclosure Act (HMDA) and why is it important - 06/06/23 06:13 PM
The Home Mortgage Disclosure Act (HMDA), which has been in place for more than four decades, requires mortgage lenders to report information about their lending practices.
Yes, it’s a behind-the-scenes, business thing. But it can be a good resource for consumers and borrowers, too. Let’s dive into the HMDA, why it’s important and how you can access HMDA data online.
What is the Home Mortgage Disclosure Act (HMDA)?
The Home Mortgage Disclosure Act (HMDA) is a federal law passed in 1975 that requires mortgage lenders to collect and report loan-level data points about their portfolios and practices.
HMDA allows regulators and the public to determine whether lenders … (3 comments)

homeownership: 5 Surprising Ways Homebuyers Can Outsmart Today’s High Mortgage Rates - 06/03/23 05:50 PM
Mortgage rates have been on a wild tear recently, reaching 20-year highs topping 7% near the end of last year and bouncing around unpredictably ever since. And since even slight fluctuations in rates end up costing homebuyers hundreds of dollars a month, it’s understandable that many are paralyzed by indecision—should we buy or wait for rates to drop?—or else scrambling for any advice on how to stay ahead of the curve and keep their costs in check.
To help, we’ve compiled a few tactics we’ve heard from real estate experts and homebuyers on how to outsmart the turbulent tides of rising rates.
While some methods might … (3 comments)

homeownership: 4 Things About Preapprovals That You Should Know - 05/27/23 06:33 PM
Getting preapproved for a mortgage is almost a requirement in today’s real estate world. In fact, many real estate agents won’t even let you into their cars to go look at houses until you’ve got your preapproval letter in your hand. And that makes perfect sense. Why would a real estate agent take some professional time showing houses if you’ve no such letter in hand. A preapproval letter lets the agent know right off the bat that you’re a serious candidate as a home buyer. Let’s look at four things you need to know about these preapproval letters.
The first thing to … (3 comments)

homeownership: Protecting Homeowners from Discriminatory Home Appraisals - 04/27/23 09:13 AM
Homeownership is one of the best paths to building intergenerational wealth, especially within communities historically shut out from fair access to the housing market. For families of all races and income levels to prosper and successfully pursue the American dream of homeownership, home appraisals must be accurate and free of bias.
The CFPB administers and enforces federal consumer financial protection laws like the Equal Credit Opportunity Act (ECOA), which is a landmark civil rights law that protects individuals against discrimination in accessing and using credit. These protections apply to every aspect of a credit transaction with a mortgage lender, including the important … (0 comments)

homeownership: How to Build Wealth by Investing Your Money - 04/26/23 07:38 AM
One of the most effective ways to build wealth is to invest your money. But how should you do it, how long should it take and when should you start?
Working is a reliable way to earn money and gradually increase your wealth over time. However, there are several ways in which you can invest the money you’ve earned to grow your wealth more quickly, ensuring you are well positioned to meet your financial goals—whether that’s buying a home, starting a business or retiring comfortably.
Before you invest, you should build an emergency fund of at least three to six months of living … (1 comments)

homeownership: How’s the Spring Housing Market Expected to Look? - 04/11/23 09:32 AM
According to the calendar, we’re officially already in spring, meaning it should be the busiest time in real estate. 2023 isn’t shaping up to be a typical year, however, so what does that mean for the housing market?
Below, we take a look at some of the things most impactful in the housing and real estate market right now and what agents, buyers, and sellers alike should all know as we emerge from the cold winter and move towards warmer weather.
Home Prices
According to most analysts, the real estate market is in a period of correction, but the National Association of Realtors said … (1 comments)

homeownership: What is a Closing Disclosure? - 04/09/23 03:35 PM
The closing disclosure is the last document you’ll receive before you close on your home loan. Review this detailed five-pager carefully to make sure all the numbers look correct before closing day.
Key takeaways
Closing disclosures are legally required and provide final details of your loan You will have a mandatory three-day period to review the closing disclosure and make any changes Errors can be corrected before closing, but the loan amount and interest rate cannot unless there is a change in circumstances What is a closing disclosure?
A closing disclosure is a legally required five-page statement of your final mortgage loan terms and closing costs. It … (1 comments)