Home Loans with Bad Credit
Posted on | April 25, 2011 | No Comments
If you have bad credit, or no credit you may feel that buying a home is completely out of your reach. While being approved for a home loan is much easier if you have good credit, obtaining a mortgage is not impossible with less than impeccable credit scores.
If you have bad credit, but have other assets like life insurance or a 401K, these may help you get approved for a home loan. Lenders will see that if you are in a situation where you can’t pay your mortgage payment, you do have assets that can cover the costs. Job stability can also help get you approved for a home loan. If you’ve been with the same company for more than five years and can prove that you have received regular raises, this will fare well with the banks. Explaining that you plan to stay in your home for ten years will also improve your chances of getting approved for a home loan, because it shows your commitment to the home, as well as to your mortgage. Lastly, by increasing your down payment you can also increase your chances of getting approved for a home loan. Instead of ten percent, try to put down twenty percent of the cost of the home as a down payment. It’s possible to get approved for a home loan with bad credit.
Foreclosure Status in America
Posted on | April 18, 2011 | No Comments
The amount of homes in foreclosure is declining in America, but that doesn’t necessarily mean the foreclosure crisis is gone for good. Recovery for our country has been a long process, and will continue to be and will continue to affect the housing market.
Foreclosures are currently down 14.8 percent this quarter, compared to statistics of last quarter. However, this may not mean the housing market is on the up and up. Currently, the demand for housing, declining prices, and lack of credit for most Americans are all affecting the housing market negatively. So, even though less houses are being foreclosed, the American economy is continuing to affect how many houses are being bought and sold in today’s real estate market. While less homes in foreclosure is a good sign for our housing market, it may not be enough to pull us out of the housing slump for good. Housing trends are affected by a variety of external factors, and it’s important for Americans to remain optimistic, yet realistic about their current financial state and the state of the housing market.
Mortgage Tax Deductions
Posted on | April 11, 2011 | No Comments
Hundreds of thousands of Americans took advantage of the homebuyers tax credit of the last three years. Many mortgage lenders feel this government sanctioned tax credit for first time homebuyers was a true success, and allowed people to purchase homes more affordably.
Unfortunately, the first time homebuyer’s tax credit has not been extended, unless you are a member of the military. The other exception is if your home is in contract to be purchased by April 30, 2011 and you have filed for an extension. If this is not the case, and you have missed out on this wonderful government program, there are still tax deductions you can take advantage of. The interest you pay on your mortgage is tax deductible, but there are limits to this tax exemption depending on whether or not you and your spouse are filing jointly. Speak with an accountant, or your trusted mortgage lender to make sure you are reaping all the benefits of the mortgage tax deduction. If you are a first time homebuyer, your best bet is to save for a sizeable down payment for the home of your dreams.
How Big of a House Can you Afford?
Posted on | April 5, 2011 | No Comments
Many first time homebuyers are confused as to how big of a house they can actually afford. It’s important to have a clear understanding of the type of home you can afford before you begin looking, so you don’t have any unrealistic expectations. You never know, the home in your budget may pleasantly surprise you.
A standard rule of thumb tells homebuyers that the type of house they can afford costs between 20-25 percent of their annual income. However, if you have been saving up a sizeable down payment, and have minimal debt, you can afford up to four times this percentage. Mortgage lenders consider the percentage of your monthly income that will go to your mortgage payment, and the percentage of your monthly income that will go to other debt obligations. Mortgage lenders typically like to keep under 28 percent of your monthly income going towards your home mortgage, and as little as 36 percent of your monthly income going towards other debt obligations. Speaking with your trusted mortgage lender will give you a better understanding of the type of home you can afford with your current income.
First Home Shopping
Posted on | March 28, 2011 | No Comments
First-time home buying is an exciting and often fun experience for many people. While you should enjoy the thrill of this process, it’s important to understand a few key points before diving into anything suddenly.
First, it’s important to know what you can afford. Analyze your finances (with the help of a financial professional) before you even look at your first home. That way, you can be realistic in the types of homes you are looking at. You should also decide how long you plan on staying in the first home you purchase. Spreading out your mortgage, by staying in your first-time house for many years, can save you many upfront costs. Getting pre-approved for a loan is also a beneficial step because it will allow you great control of the home-buying process when the seller understands you already have the money to purchase the home. Lastly, you should understand the current real estate market. Research the average price of homes in the area you’re looking for, and understand the demographic that typically purchases there. The more educated you become, the more successful your first-time home buying process will become.
Know your Credit Score when Buying a Home
Posted on | March 21, 2011 | No Comments
You should be well versed in every aspect of your finances if you’re looking into purchasing a home. From your overall financial value to how much debt you actually have, these are important factors in determining whether or not you will qualify for a home mortgage or refinancing option. More importantly, you should also be aware of your credit score.
Many Americans do not know their credit score, and this lack of knowledge can hurt them. The more information you have about your credit score, the better prepared you are to improve or maintain the score in order to qualify for a first-time mortgage, or to refinance your existing mortgage. To improve your credit score, pay your bills on time, and don’t overdraft your banking accounts. Maintain your credit score by not incurring too much debt and by not allowing yourself too many credit cards. Your credit score directly affects the type of home loan you will qualify for, so find out your credit score as soon as possible to qualify for the best home loan today.
Plan for a House
Posted on | March 14, 2011 | No Comments
We’ve done a lot of discussing about how necessary it is to plan to purchase a house. While life throws us unexpected circumstances that force us to relocate unrepentantly, it’s so necessary to build up a sizable savings to prepare for unexpected moves.
If you don’t have at least four months of income saved up, and have no additional funds for a down payment on a house, it’s not the right time to purchase. Rather, devote a lot of your earnings to saving up for a house, and building an emergency fund. Doing so will put you in a much better position to purchase a home. On the other hand, if your job is asking you to relocate, or your family is quickly expanding, it may be necessary to move without notice. If this is the case, speak with your trusted mortgage lender to discuss your options. Mortgage rates could be at a low, allowing you to move without much financial strain. There are also a lot of foreclosed homes on the market that are selling at very low prices. It’s always best to plan to buy a house, but if this is not possible talk with your lender today.
When does Refinancing Make Sense?
Posted on | March 9, 2011 | No Comments
Knowing when to refinance your home loan leaves many homeowners with a lot of questions. The best time to refinance is a sensitive thing, and depends not only on when, but also on your specific situation.
Refinancing is smart when interest rates are low, because this is the time when you are likely to get the best deal. Beyond this, an adjustable rate mortgage will allow your mortgage rates to change with current trends – which can be to your benefit. If you have a fixed rate mortgage, you can refinance to lock in a great rate that won’t change no matter the real estate climate. If your specific financial situation has increasing debt, you can refinance your home in order to get a handle on your debt. This is a realistic solution for many people who experience difficult financial times throughout a specific time of the year, or who may be between jobs. There are so many reasons to refinance, and depending on the time and your specific situation, the best time (and best rate) could be waiting for you.
Mortgage Rates are Always Changing
Posted on | February 28, 2011 | No Comments
The real estate market is in constant flux. Homes are incredibly affordable one day, and skyrocketed beyond belief the next. Because of this, mortgage rates are always changing too. When you’re ready to buy a home, it’s important to shop around, and not settle for the first rate you are offered.
One of the reasons mortgage rates change so dramatically is a simple case of supply and demand. If homes are being sold rapidly, then mortgage rates are lowered. On the other hand, if the housing market is in a slump, many banks will increase their rates. In other words, more buyers give lenders flexibility when adjusting their rates. Inflation also affects mortgage rates. When the economy grows at a rapid rate, often times the Federal Reserve will increase rates to slow it down and prevent inflation. These instances are highly complicated, and often not black and white. Speak with a qualified mortgage lender you trust to discuss your lending options. Communicate your financial situation and figure out the best rate that will fit in your budget.
Foreclosure
Posted on | February 21, 2011 | No Comments
Foreclosure is a serious situation that is all too common in today’s economy. Unfortunately, more and more families are learning the hardship of foreclosure, and are left to make the tough decision to move out of their homes because they cannot afford to pay their mortgage.
If you are in danger of foreclosing on your home, don’t be ashamed. Financial hardships happen to most families, and there is help out there. Speak with your bank or mortgage lender to see if there are any refinancing options for you that will allow you to stay in your home. If there are no other options, and you are forced to foreclose on your home, there are plenty of affordable rental properties available for families of any size. Foreclosure isn’t pretty, and affects way too many Americans. Mortgage companies can take a lot of responsibility for giving loans to people that can’t afford to pay them. No matter whose fault it is, foreclosing on a home is an unpleasant experience that should be avoided. Take the necessary steps to protect yourself against foreclosure.