Recent tallies show a third of U.S. credit scores fall below 649. While not impossible, acquiring a mortgage loan will likely be more difficult and more expensive at this level than with higher scores. READ THE FULL POST HERE
First Time Homebuyers
There are many things to think about prior to starting the home-buying process
Following are several tips that may help in building a plan:
1. If you are not really planning on staying in the same place for at least a few years, then this most likely isn’t a good time for you to invest in a home. The transaction costs involved in the transfer of property are certainly not cheap, therefore the less time you own your home, the greater you risk losing profits should you sell. This may happen even during a rising market, and is a lot more possible in a regressing market.
2. Before you start shopping for residences, get pre-approved. That will keep you from considering residences you can’t afford, and definately will put you in a situation to be able to take action once you discover a house that is perfect for you. Do not confuse pre-approval with pre-qualification, as this is mainly based on a less-thorough look at your circumstances. A loan provider pre-approval is determined by your real income, financial debt and credit. Your mortgage company will also be able to help you with the following 4 guidelines listed below.
First off…what does the term “pre-approval” mean?
Pre-approval means that the lender is confident that you can make the necessary down payment and that your income is sufficient to cover the mortgage payments. At this stage, only one concern remains. The lender needs to make certain that the property’s value offers sufficient collateral in relation to the loan amount. In other words, the home must be appraised for an amount more than, or equal to, the purchase price.
When you’re ready to make a purchase offer, both your real estate agent and the seller will most likely want to see a pre-approval letter. This proves that you’re likely to be able to make the purchase and, therefore, you can be taken seriously. In a competitive housing market, sellers prefer a pre-approved buyer to those who, for all anyone knows, might be unable to close the deal. READ THE FULL POST HERE
The following was announced by Secretary Julián Castro, Department of Housing and Urban Development:
When my tenure as Secretary is over, I won’t judge my time by how many initiatives my Department has launched, or how many press releases we’ve put out. I’ll judge my tenure by the results — by how we were able to make opportunity real for families across America.
I’m proud to be serving under a President who shares the same commitment to policies that put everyday Americans first. President Obama has guided our nation out of a historic crisis and into an economy that’s picking up momentum. In just six years — thanks in large part to his actions — millions of Americans have been able to stay in their homes, and home sales are up by nearly 50 percent.
Buying a home has the obvious benefit of providing shelter you and your family. There are other benefits as well:
When compared to other investments, few can generate the healthy and long lasting tax breaks that home ownership does. When you become a homeowner, there may be tax breaks that you can take advantage of the renters and non-homeowners cannot, the mortgage interest deduction being just one of them. In addition, the deduction of your real estate tax on your federal income tax return is a common practice. Some homeowners choose to use their homes equity to obtain Home Equity Lines of Credit (HELOC) or home equity loans. Interest on these loans may also be tax deductible. With proper planning you may receive tax advantages that last a lifetime. As always, consult with your own tax advisor as to the specific benefits of home ownership that apply to you.
A home is an investment that can, and usually does, increase in value over time. In some markets, home values have been rising dramatically in recent years (California, Florida, Nevada, etc.). In other markets the rise has been more slow and steady.
First of all, “Dodd-Frank” isn’t one person… it is 2 guys! Named after its Democratic sponsors in Congress, Senator Chris Dodd and Representative Barney Frank, the law aimed at preventing a repeat of the 2008 financial crisis.
In short, by definition:
The Dodd-Frank Act (fully known as the Dodd-Frank Wall Street Reform and Consumer Protection Act) is a United States federal law that places regulation of the financial industry in the hands of the government. The legislation, enacted in July 2010, aims to prevent another significant financial crisis by creating new financial regulatory processes that enforce transparency and accountability while implementing rules for consumer protection.