Having a full down payment ready to go can help you get the mortgage you want, secure a better interest rate, make your offer on a property more appealing to sellers, and avoid private mortgage insurance (PMI) costs. But there’s just one problem: Saving for a down payment can feel like an impossible goal, since 20% of the typical home’s purchase price is a large sum of money!
One of my favorite things to do when I travel around Southern California is drive through the neighborhoods and look at all of the unique architecture that pops up in each city. Many people think the houses in Southern California are nothing but stucco, but that is definitely not the case. Here are nine houses in Southern California that not only stand out architecturally, but most of them have a pretty interesting history as well. And because these houses are located in California, many of them have had appearances in movies and TV shows. You might even find that a few of these locations look very familiar to you.
AS she leafed through her client’s mortgage papers, the housing loan counselor just shook her head.
The numbers and interest rates and payment schedules formed such a familiar, dispiriting picture. The 32-year-old man who was sitting across the desk from her said he had been persuaded to take out an adjustable rate mortgage called an option ARM when he bought his home, the first he has owned. The terms of the loan put him in danger of joining millions of people dragged under by the mortgage crisis that has washed through towns and cities across the country.
Think you’re ready to buy a home? Congratulations! But before you start swooning over open houses, take a step back and ponder how you’re going to pay for your new digs. Odds are you’ll need to get a mortgage, and they don’t just hand them out on street corners, ya know. So what’s the secret on how to qualify for a mortgage, anyway?
To answer this, we’ve kicked off our step-by-step Stress-Free Guide to Getting a Mortgage—everything you need to know in order to make this essential, mysterious, and sometimes frustrating process work in your favor.
Fortunately, it’s gotten easier again in recent years. Conventional mortgages are now available with down payments as low as 3% thanks to programs from Fannie Mae and Freddie Mac. You’ll probably have to pay private mortgage insurance (PMI) until your loan-to-value ratio drops below 80%, but this is a good option for borrowers who qualify.
To qualify for a loan with 3% down, you’ll need a credit score of at least 660, plus six months’ worth of mortgage payments in reserve. In addition, your total monthly debt payments — including your new mortgage payment — cannot be greater than 36% of your gross income. With a higher credit score, the reserve requirements can be relaxed and the debt-to-income maximum could be as high as 45%.
With mortgage rates and home prices rising, the housing market has become more hostile to home buyers in 2016. But in the next year, major factors that influence the housing market stand to change both for the better and the worse. Read on for what people looking to settle down into a new home can expect in 2017.
Mortgage rates will soar.
Mortgage rates have been on the rise for nine weeks straight, with 30-year fixed rates reaching 4.32 percent Thursday, up from 3.47 percent at the end of October. The increase is a result of the Federal Reserve’s decision to hike its interest rate target in mid-December and the surge in U.S. Treasury yields over the past several months—both of which mortgage rates follow closely.
Shockingly, enough people still do things that can cause themselves heartache when applying for mortgages. Here’s what you need to know if you’re thinking about buying a home in 2017.
Your ability to buy a home rests on the numbers and documentation your mortgage lender has. If there is a change to any of these, your chances of buying a home can be jeopardized. This means that when there is a change to your credit, debit, income assets, or job during the escrow process, you might not be able to buy that house and you’ll risk losing your money. Here are five things to watch out for.
1. Applying for Credit
After you get a contract to buy your house, it’s best not to apply for any credit. This means not applying for car loans, credit cards, utility bills, cell phone bills or any other form of credit whatsoever. Doing so could change your credit score and impact your rate lock and/or fees associated with closing on the house.