Lending / Financial

Buying real estate is even more challenging for those of us whose eyes glaze over at the mere mention of decimals, percentages or anything else that even hints of mathematics.


The financial aspect of purchasing the largest investment of your lifetime, though, is the most important. Nobody wants to lose money. Nobody wants to leave money on the table.


If you're in the market for information on mortgages, credit scores and interest rates, you've come to the right place. The financial and mortgage pros here at ActiveRain even tell you how to shop for and compare lenders, how to raise your credit score, how to get a mortgage after a short sale or foreclosure and how to get pre-approved for a mortgage loan. Even Mom and Dad can't give the great advice you'll find here at ActiveRain.


Plan to spend some time here because ActiveRain's content library is massive. Lucky for you we've arranged it so that it's über user-friendly. You'll be amazed at how easy it is to put your finger on just the information you're looking for without having to surf a million other pages.

Recent blogs on Lending / Financial
By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Last week’s economic news included readings on new and pending home sales and inflation. The final monthly reading for May consumer sentiment was released along with weekly readings on mortgage rates and jobless claims. Shortage of previously-owned homes for sale directs buyers to new homesHomeowners weren’t in a hurry to sell their homes due to the low mortgage rates they obtained during the pandemic. Current mortgage rates are higher than pandemic-era rates, which influenced homeowners to stay in their homes and keep their lower existing mortgage rates. Home buyers turned to new home developments as an alternative to shopping for a home within the slim supply of available previously-owned homes.The number of pending home sales was unchanged from March as compared to the expected readi...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Home loans are available in an assortment of lending packages, but the big difference that consumers need to pay attention to at a minimum is how the interest charge is calculated. Interest is the margin that represents the profit and risk offset for a lender financing a consumer's home purchase.With loans lasting over 30 to 40 years now, the amount of money that can be made can be two or three times the purchase value of the home involved. So it's calculation method is important for the borrower.A Fixed RateA fixed rated is one where the home loan interest rate does not change. So, if a person takes out a 30-year home loan with an interest rate of 5 percent, that interest rate charge per year will not change at any time during the 30 years of repayment. It provides stability for financ...
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By Joe Jackson, Clintonville and Central Ohio Real Estate Expert
(Keller Williams Capital Partners Realty)
This is an excellent post with great information. Thanks for sharing it.Have a super fantastic week!Joe Jackson, Realtor-KWCP Today in our blog series titled the ABC's Of Real Estate, we talk about your credit score and how it impacts you as a home buyer. Understanding your credit score's role in the home buying process is not just vital; it's non-negotiable. A credit score can affect whether you're approved for a mortgage, the interest rate offered, and even the terms of the loan. What is a Credit Score? Your credit score is a number that lenders use to assess your creditworthiness. It’s based on your credit report, which lists your financial history, including total debt, number of credit lines, whether you've made payments on time, and whether you've defaulted on debts. Credit scores...
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By Jackie A. Graves, President
(ChangeMyRate.com® A Mortgage Corporation)
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 know is a preapproval is not the same as prequalification. Although the terms sound similar they’re not. Both terms apply to the mortgage industry but there are some key differences. A prequalification letter - the letter wil...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
It is unlikely that an unconventional job will hurt your mortgage approval, as long as you can demonstrate a consistent and stable income stream that meets the lender's requirements. Lenders are primarily concerned with your ability to repay the mortgage, and they will evaluate your income and employment history to determine whether you are a suitable candidate for a loan.It's also worth noting that the type of property you are seeking to purchase, as well as your credit history, debt-to-income ratio, and other financial factors, will all play a role in the lender's decision. So while an unconventional job may not be a deal-breaker, it's important to make sure your overall financial profile is strong before applying for a mortgage.How an Irregular Job Influences Your Mortgage ApprovalAn...
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By Dan Jasmer, Changing the way you look at real estate
(Fine Properties)
The short and sweet answer is, YES!  Figuring out your purchasing power, determining which loan option is best and budgeting are crucial steps in the home buying process.Getting pre-approved for a mortgage is an important and easy  step in the home-buying process. Here's a brief overview:1. Gather financial documents: Start by gathering important financial documents such as pay stubs, W-2 forms, tax returns, bank statements, and any other documents that demonstrate your income, assets, and debts.2. Research and choose a lender: Research different lenders and compare their mortgage rates, terms, and customer reviews. Choose a lender that suits your needs and preferences.3. Complete a pre-approval application: Contact your chosen lender and complete a pre-approval application. This involv...
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By Manfred Lewis Leslie Horne & Associates, Realtor Spartanburg and Greenville SC
(Leslie Horne &Associates )
Saving a little every month will help create a rainy day fund to use when your home needs repairs and maintenance. Every bit you put aside regularly will help you when the unexpected happens. #thehelpfulagent #home #houseexpert #house #happyhomeowners #listreports #smartmoney #finances #realestate #realestateagent #happyhome 
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By Joe Jackson, Clintonville and Central Ohio Real Estate Expert
(Keller Williams Capital Partners Realty)
This is an excellent post with great information. Thanks for sharing it.Have a super fantastic week!Joe Jackson, Realtor-KWCP Recently, many of the world’s stock exchanges have either been volatile, or underperformed. The Fed has hiked interest rates several times. And the price of basics such as food keeps on rising.   Economic uncertainty is affecting individuals and businesses. People are nervous about buying homes due to high mortgage rates. Business owners are concerned about a recession. Investors are unsure where to put their money.   However, regardless of market volatility, people must still prepare for retirement. One possible way to avoid economic uncertainty is to invest in precious metals. Using gold IRA companies to prepare for the long-term future is a tactic becoming inc...
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By Melissa Thompson, I'm a real estate agent helping buyers and sellers
(Thompson Real Estate)
Recently, many of the world’s stock exchanges have either been volatile, or underperformed. The Fed has hiked interest rates several times. And the price of basics such as food keeps on rising. Economic uncertainty is affecting individuals and businesses. People are nervous about buying homes due to high mortgage rates. Business owners are concerned about a recession. Investors are unsure where to put their money. However, regardless of market volatility, people must still prepare for retirement. One possible way to avoid economic uncertainty is to invest in precious metals. Using gold IRA companies to prepare for the long-term future is a tactic becoming increasingly popular. And gold is less affected by inflation and market volatility than some other commodities.Are you preparing prop...
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By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
The 30-year fixed-rate mortgage has remained under 6.5% for the last few weeks, offering buyers more stability.Mortgage rates are mostly holding steady despite ongoing economic headwinds. The 30-year fixed-rate mortgage averaged 6.39% this week, Freddie Mac reports. It’s a rate home buyers are getting used to. Click to Read and be sure to ShareMy Home own search!How to get a Mortgage and FREE Credit Report   We can help you relocate, find a job, and a daycare, and great places to eat, shop, and play along the gulf coast. It all starts by clicking here. Put our over 28-plus years to work in your best interest. We are ambassadors to the Gulf Coast of Florida got a question email us or text us. Hello, Our family of licensed agents can show you ANY home on the market or many that may be Com...
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By Joseph Lorenzo, Your Law And Order Realtor
(Frank Rubi Real Estate LLC)
Today in our blog series titled the ABC's Of Real Estate, we talk about your credit score and how it impacts you as a home buyer. Understanding your credit score's role in the home buying process is not just vital; it's non-negotiable. A credit score can affect whether you're approved for a mortgage, the interest rate offered, and even the terms of the loan.What is a Credit Score?Your credit score is a number that lenders use to assess your creditworthiness. It’s based on your credit report, which lists your financial history, including total debt, number of credit lines, whether you've made payments on time, and whether you've defaulted on debts. Credit scores generally range from 300-850, with higher scores being more favorable.How Your Credit Score Affects Your Home LoanThe higher yo...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Last week’s economic reporting included readings on U.S. housing markets, sales of previously-owned homes, housing starts, and building permits issued. Weekly readings on mortgage rates and jobless claims were also released. NAHB: U.S. Home Builder Confidence Rises in MayThe National Association of Home Builders reported a five-point gain in home builder confidence in current housing market conditions in May. The index reading for May rose to 50 in May as compared to April’s reading of 45. Analysts expected a reading of 45 for May. Readings above 50 indicate a majority of home builders are positive about current housing market conditions. Component readings of the home builder index also rose as the gauge for current market conditions rose by five points to 50; the reading for market co...
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By Brian Kidder, MyEListing.com Analyst and Writer
(MyEListing.com)
CRE Mortgage Originations Are Falling. What Does This Mean for Multifamily Investments?Thanks to the Fed’s extraordinarily hawkish fight against inflation, lenders have recently begun tightening their criteria and requirements for mortgage lending, leading to a decline in CRE mortgage originations.  A decline in commercial real estate (CRE) mortgage originations can have implications for the multifamily sector: In Q1 2023, commercial and multifamily mortgage originations were down by 56% compared to the previous year.  It's important to note that factors beyond CRE mortgage originations, such as overall economic conditions, population growth, and local market dynamics, can influence the multifamily market. While a decline in mortgage originations may present challenges, it's essential t...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
A bridge loan, also known as interim financing, is a short-term loan used to provide temporary financing until a borrower secures long-term financing or sells an asset. Bridge loans are commonly used in real estate transactions, such as when a buyer needs to close on a new home before selling their current home. Bridge loans are typically secured by the borrower's current property, which serves as collateral. The amount of the loan is determined by the equity in the borrower's property and the value of the property they are purchasing. The loan is intended to bridge the gap between the purchase of a new property and the sale of the existing property.Bridge loans often have higher interest rates and fees than traditional loans, due to their short-term nature and the increased risk associ...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
When buying a home, there are certain steps a buyer should go through before the home sale is official. First the buyer makes the offer, then the offer is accepted.Next the buyer schedules the inspection and home appraisal. Finally, everyone is ready for closing.It’s easy to overlook the impact of some of these steps, but when it comes to a mortgage, the home appraisal is actually quite important. Banks want to see that they are lending money for an investment that is worthwhile, so that appraisal is a crucial step to getting financing. Here is what buyers need to know about how the appraisal could affect their mortgages.Understanding The Home Appraisal ProcessThe home appraisal gives a home valuation expert the chance to evaluate the home a buyer’s considering to determine its market v...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
When deciding whether to buy a home with cash or to obtain a low-interest rate mortgage, there are several factors to consider. A cash offer can be very competitive in a real estate market, as it can give the buyer a significant advantage over buyers who need to obtain financing through a mortgage.Here are additional advantages and disadvantages of both.Advantages of buying a home with cash: You own the property outright, which means no mortgage payments are necessary. You may be able to negotiate a lower purchase price if you're able to pay in cash. You avoid interest charges and fees associated with a mortgage. Disadvantages of buying a home with cash: You may tie up a significant amount of your liquid assets in the property. If you need cash for emergencies or investments, it may be ...
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By Shayne Stone, "Your Rock Solid Choice Realtor"
(HomeSmart)
The Impact of Inflation on Mortgage RatesIf you're reading headlines about inflation or mortgage rates, you may see something about the recent decision from the Federal Reserve (the Fed). But what does it mean for you, the housing market, and your plans to buy a home? Here's what you need to know.Inflation and the Housing MarketWhile the Feds working hard to lower inflation, the latest data shows that, while the number has improved some, the inflation rate is still higher than the target (2%). That played a role in the Fed's decision to raise the Federal Funds Rate last week. As Bankrate explains:  Keeping its inflation-fighting streak alive, the Federal Reserve has raised interest rates for the 10th time in 10 meetings . . . The hikes aimed to cool an economy that was on fire after reb...
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By Manfred Lewis Leslie Horne & Associates, Realtor Spartanburg and Greenville SC
(Leslie Horne &Associates )
Starting the process by "just browsing" could set you up for heartbreak. Before you go looking for (and falling in love with) a home, you need a realistic idea of what you can afford, make sure your credit is in good shape, and, most importantly, get pre-approved for a mortgage. If you're unsure where to start, you're in luck! I know some of the best loan officers around, and working with me means my connections are your connections! #thehelpfulagent #home #houseexpert #house #listreports #homeowner #househunting #realestate #realtor #realestateagent #themoreyouknow #mortgage #investment #happyhomeowners #icanhelp #realtornearme #realtorspartanburg #realtorboilingsprings #realtorspartanburgsc #realtorboilingspringsc
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By Jerry Newman, Texas REALTOR, San Antonio Military Relocation
(Brown Realty, 210-789-4216,)
If you are interested in buying a home in Texas, and don't have enough for your down payment, Texas State Affordable Housing Corporation (TSAHC) maybe able to help with the funds you need. There are eligibility requirements that have to be met. Your interest rate may be slightly higher since you are borrowing these funds. Keep in mind that down payment amounts will vary depending on the type of loan, FHA or Conventional. Your lender will help you figure out which TSAHC assistance option to choose and how much you need to put down on your house.  To see more about these available programs, and which ones are right for you, see home buyers down payment assistance programs offered in Texas. Be sure to check out those programs for professional educators, police officers, firefighters, corre...
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By Dave Jones, Broker/Owner - e-PRO Dave Jones Realty llc Prospec
(Dave Jones Realty, llc.)
Homeowners Have Incredible Equity To Leverage Right Now In ConnecticutEven though home prices have moderated over the last year, many homeowners still have an incredible amount of equity. But what is equity? In the simplest terms, equity is the difference between the market value of your home and the amount you owe on your mortgage. The National Association of Realtors (NAR) explains how your equity grows over time:“Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.”How Your Equity Can Help You Achieve Your GoalsThe equity you build up over the years can be used to your advantage when you sell your current house and buy your next home. If you no longer have the space you need, it might be time to move into a larger hom...
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