first time home buyer loans: Thoughts, Panic and Fears when buying a home
- 07/15/14 03:58 AM
Even though we all know that buying your first home is a dream come true for most, it doesn’t come without some bumps in the road.
Below is a humorous list of 74 thoughts first-time home buyers have while going through the process. This list is originally from buzzfeed.com.
1. This place looks so cute!
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first time home buyer loans: Was your mortgage application turned down?
- 07/15/14 03:55 AM
If at first you don't succeed with your mortgage application, apply, apply again. Just because your loan was turned down by one bank doesn't mean it will be turned down by all of them.
Today’s topic is about not giving up. This is probably a good life rule in general, but it should definitely be applied to your mortgage transaction. The reason behind this is called "investor overlays." When your loan is being underwritten, it’s being compared to a set of standards that are specific to your loan type.
Those standards can and will vary from lender to lender.
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first time home buyer loans: Buying your First Home? Don't Act Like it!
- 07/01/14 05:46 AM
The best thing you can do for yourself, when planning on purchasing your first home, is to be as informed about the home buying process as possible.
Not only will it be an easier process for you, but you will be able to fully understand everything that having a mortgage entails as well as what’s to be expected in the future.
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first time home buyer loans: 6 Questions you should be asking your mortgage lender
- 06/30/14 07:25 AM
The home loan process today is more complicated than it has ever been. The aftermath of the housing bubble has lenders scrutinizing every loan file to make verify that each home buyer is an acceptable credit risk.
When you start shopping for a home loan it’s important to know that the best loan for you is not necessarily the one with the lowest interest rate. Everyone who is approved for a home loan these days will get a fantastic interest rate, but some will be a little better than others based on down payment amount, credit profile and property type.
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first time home buyer loans: CalHFA announces major program expansion to help California homebuyers
- 06/20/14 03:23 AM
June 16, 2014 - SACRAMENTO, CA – The California Housing Finance Agency announced today a major program expansion to help more low to moderate income California families purchase homes.
CalHFA will remove the first-time homebuyer requirement on its first mortgage programs to allow more California homebuyers to take advantage of the benefits of CalHFA's affordable financing.
For nearly 40 years, CalHFA, a self-supported State agency that doesn't rely on taxpayer dollars, has supported the needs of renters and homeowners by creating and financing progressive housing solutions so more Californians have a place to call home. CalHFA has helped more than 152,000 … (0 comments)
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first time home buyer loans: Buying a Home how to negotiate the best purchase price
- 05/28/14 05:03 AM
When purchasing a new home, the negotiation of the purchase price is a key part of the transaction. The following infographic provides a few tricks can potentially save you thousands of dollars, result in a smoother path to settlement and help you purchase the home of your dreams.
Always start the home buying process by getting pre-approved with a mortgage lender. Knowing what you can afford is paramount in the negotiation process. And, if you are debating between two different purchase prices, ask your mortgage consultant to calculate the payments on both prices. It’s surprising how much of an impact an … (2 comments)
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first time home buyer loans: Qualifying for a mortgage is easier than you think!
- 05/13/14 05:33 AM
Have you been eyeing your dream home, but fear that you won’t be approved for a mortgage? In a recent national consumer survey, 56 percent of potential homebuyers decided against purchasing a home because they were afraid of rejection by lenders. And that nearly half of the respondents did not know what the minimum FICO credit score requirement is for a mortgage loan.
Fear not friends! We’re here to clear up some concerns you may have and show you that, with the right lender, there are plenty of options for everyone.
Are you worried that your credit isn’t good enough?
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first time home buyer loans: FICO lets the cat out of the bag on how your FICO score is calculated
- 02/27/14 06:29 AM
Some time ago FICO shared basic information about how a consumer’s FICO score is calculated.
The information is presented here in order of importance according to FICO.
(Information marked with a * would be obtained from your home loan application and is not considered in your FICO score)
Related: Do you know how many FICO scores you have? 1. Major derogatory items on your report (bankruptcy, collections, foreclosure, slowpays)
2. Time at present job
3. Occupation (Professionals are given heavier weight)*
4. Time at present address
5. Ratio of balances to available credit lines (lower is better)
6. Are you a … (0 comments)
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first time home buyer loans: 5 Ways to Improve Your Credit Score to get the Best Interest Rate
- 02/24/14 06:41 AM
Good credit scores give you access to more than just today's lowest mortgage rates -- they give you access to today's best loan programs, too.
There are countless credit reporting companies. Your home loan lender will be using the Big 3 -- Equifax, Experian and TransUnion.
Related: Do you know how many credit scores you have? Each of the bureaus sells more than one "credit score" product and, for consumers on their respective websites, it can be a challenge to know exactly which "score" to review.
For home buyers, your home loan lender will be using the following scores:
For Equifax, … (0 comments)
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first time home buyer loans: Mortgage Insurance Companies make buying a home easier
- 02/21/14 02:16 AM
Down payments are required on most loans when buying a home, and documenting the source of those funds is critical to the approval of your home loan.
Private mortgage insurance is required on conventional loans with less than 20 percent down. Private mortgage insurance companies would, traditionally, require the 5 percent down payment to be the home buyer’s own funds, and not a gift.
Related: Forget diamonds, a down payment is a girl’s best friend Recently, the private mortgage insurance companies changed their requirements on purchases of one unit primary residences and now the allow a gift for the entire down … (2 comments)
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first time home buyer loans: 5 Worst Mistakes you can make when buying a home
- 02/06/14 05:41 AM
When buying a home, many consumers make the mistake of confusing pre-approval with loan approval. Until you've been handed the keys to your new home your credit and financial profile will be scrutinized by your lender.
Here are the 5 worst things you can do when buying a home 1. Go Credit-Crazy
It’s almost become cliché in the mortgage industry, but the warning still bears repeating: Don’t buy a truckload of furniture until after your loan closes. The prohibition goes beyond sofas and settees — avoid obtaining credit for any major expense, such as a car, a boat or, yes, a … (4 comments)
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first time home buyer loans: If I do a "credit freeze" how will it affect buying my next home?
- 01/28/14 05:44 AM
As most of you know, I work in the mortgage industry. And with all the publicity given the recent data breach at Target and many other retailers, I've been asked a buncha (it's a word) times lately what to do about it, and should they do a credit freeze.
Please understand that I know exactly how fearful identity theft can make us. Been there, suffered that. Read my next post, comment, pm me if you have personal questions, and take the precautions I outline.
I hate to be the bearer of bad news regarding Credit Freezing (the latest spin to … (4 comments)
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first time home buyer loans: Getting your next home loan will be more complicated
- 01/15/14 06:07 AM
Did you feel the earth move? In California the ground moving is such a regular occurrence we seldom notice it unless it’s a real tremblor. In case you missed it, on January 10, 2014 homebuyers experienced a tremblor that changed the way they will purchase their next home.
Under the new Ability-to-Repay (ATR) rule, lenders will have to determine the consumer’s ability to pay back both the principal and the interest over the long term. Lenders can no longer offer no-doc, low doc loans that were popular during the last housing run-up.
Related: 3 Things to do now to buy … (0 comments)
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first time home buyer loans: Buying a Home in 2014? 3 People You Need to Know
- 01/08/14 06:43 AM
If buying a home is on your 2014 “bucket list”, there are changes coming and these three people will have a huge impact on how much you end up paying for it.
The housing pendulum has clearly swung from one side to the other. Demand for rental housing is causing shortages and rising rental rates, particularly in urban markets with stronger employment, which will increase the number of renters who are sick and tired of making a mortgage payment that’s not their own.
Related: Will it be cheaper to own than rent in 2014? So who are these people we should be … (0 comments)
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first time home buyer loans: Buying a home in 2014? 3 New Year's resolutions you should be working on now
- 01/06/14 05:45 AM
If buying a home in 2014 is on your list of New Year’s resolutions then here are three things you should be doing now to make sure that when you look back on 2014 you’ll be doing it from the living room of YOUR own home.
1. Save or find money for down payment January will see the implementation of the Qualified Mortgage (QM) rules and “ability to repay” (ATR) is the cornerstone of QM. The more “skin in the game” you have the higher your ATR rating will be.
If you are a Veteran there are still zero down payment … (0 comments)
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first time home buyer loans: Why Higher Credit Scores Take Longer to Recover
- 01/03/14 02:56 AM
If you're a home buyer who has seen their credit scores drop due to a foreclosure, bankruptcy or short sale, here's an explanation why your credit scores are taking longer to recover.
Thanks to my business partners at Dedicated Credit Repair for providing the explanation.
Question: I am confused about your recent article about a person who did a short sale and questioned its effect on her credit. You said that if she started with a score of 680, it would take about three years for her FICO numbers to return to normal. You then said, “If your scores were high, say 780, it … (0 comments)
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first time home buyer loans: 4 Mortgage Changes in 2014 Home Buyers Need to Know
- 12/19/13 05:42 AM
The new year is almost upon us and the mortgage industry will be experiencing a number of changes that will affect home buyers and how they are approved for their home loan.
Since 2009 the housing industry has been working to establish standards that will minimize the risk of another housing bubble. The changes for 2014 are an example how mortgage professionals are taking extra caution with each customer.
4 Mortgage Changes in 2014 You Need to Know Ability to Repay - The Consumer Finance Protection Bureau (CFPB) established ATR as the “gold standard” to insure every borrower is a qualified borrower. … (2 comments)
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first time home buyer loans: Just in time for Christmas..FHA makes home buying a little easier
- 12/12/13 03:22 AM
This may come as a surprise for many first time home buyers but The Federal Housing Administration (FHA) has relaxed some of its underwriting guidelines to help make 2014 your year of homeownership.
These changes apply to loans that are “manually underwritten”. A manual underwrite occurs when a borrower’s debt to income ratios exceed 31/43.
Related: FHA loans with a 580 credit score Among the announced changes were:
For borrowers with credit scores above 580 (reduced from 620 previously), FHA will allow maximum housing/debt ratios of 37 and 47 percent To qualify for the higher ratios the borrower must have “verified and … (0 comments)
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first time home buyer loans: First Time Home Buyers get an FHA loan with a 580 credit score
- 12/11/13 06:24 AM
First time home buyers who are worried their credit might not be good enough to qualify for a home loan, we have a solution.
Most lenders will tell you that in order to get an FHA loan, you need a credit score of at least 620 to 640. That’s not the FHA’s rule. That’s the lender’s rule. In the mortgage business that’s referred to as an “overlay”. Overlays vary from lender to lender, so shop around and find a lender whose overlays match your credit profile.
Related: How do I get approved for a first time home buyer loan? As a direct … (2 comments)
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first time home buyer loans: Fannie Mae now allows gift funds on 5% down payment home loans
- 12/09/13 04:29 AM
The number one obstacle between first time home buyers and homeownership is usually lack of funds for a down payment.
Since 1934 FHA has allowed qualified home buyers to receive gift funds from a relative. friend. Fannie Mae on the other hand has required that to qualify for a guaranteed loan, the home buyer had to have some “skin in the game” a investment of at least 5% of their own funds. After the initial 5%, gift funds from qualified family members were allowed.
Related: How do I qualify for a home loan? If you talk to most lenders today you’re liable … (0 comments)
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Even though we all know that buying your first home is a dream come true for most, it doesn’t come without some bumps in the road.
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