At a time when a lot of young adults are postponing marriage, the number of Americans buying a house on a single income is substantial. According to the Millennial home buyers last year were unmarried. Because single mortgage applicants rely on one salary and one credit profile in order to secure a loan, getting through the underwriting process can be a bit trickier. However, the more you understand about what the process entails, the better your odds will be of getting a lender to say “yes.” Here are four crucial things that can help;
Check Your Credit: When you apply for a mortgage on your own, lenders will be looking at just one credit profile: yours. Needless to say, it has to be in great shape. It’s always a good idea to review your credit
Want to purchase a home? Even with the housing market pretty much back from the doldrums of the 2008 Great Recession, real estate experts say there’s still plenty of room to the upside if you purchase a home now. But many first-time home buyers underestimate the amount of money they will need up front to buy their dream home. As a rough estimate, FHA loan, for lower income earners. However, those loans are harder to get than one at 5% down.
On a $200,000 home, you will need around $16,000 when you close. This amount is the bare minimum, according to realtor.com. Next question: If you don’t have it, how will you save for it?
Waiting a year or more gives you many more options for assembling the down payment and cash for other
1. GET EDUCATED ABOUT THE DETAILS OF THE APPRAISAL VALUE DETERMINATION PROCESS TO KNOW WHAT THE EXPERTS CONDUCTING THE EVALUATION PAY ATTENTION TO
This article’s purpose is not to give an exhaustive description of the appraisal procedure, but rather provide the sellers with a few pieces of advice on how to improve its results. But, we’re going to base the further info considering these most important facts about house appraisal:
its real purpose is to figure out whether the home’s value expressed in the monetary equivalent (the selling price)coincides with the average prices of similar local properties, which have been recently sold or which are currently available on the market;
You may be sitting on a goldmine. Or a small fortune. Or at least a little chunk of cash. Rising home prices across the country means homeowners have some equity. So what can you do with it? More importantly, what should you do with it? If you've got money in your house, you've got some options.
"Done wisely, you can use the lower-interest debt secured by your house to pay off debts with high interest rates, like credit cards," said houselogic. "It's also a good choice if you know exactly how much you need to borrow for a big expenditure like a new kitchen."
Historically low interest rates have ignited "a surge in demand for home equity loans this year," said HOUSINGWIRE. James Chessen, chief economist for the American Bankers Association, told
The major credit reporting agencies have a big change in the works that could bolster a lot of people’s credit scores.
As part of its National Consumer Assistance Plan (the result of a settlement brokered with 31 state attorneys general back in 2015), Equifax, Experian, and TransUnion are planning to significantly reduce the amount of tax-lien and civil-judgment information found in consumer credit files.
Details have yet to be finalized, but “there will be less of that type of data in credit reports moving forward,” Stuart K. Pratt, president and CEO of the Consumer Data Industry Association, a trade association that represents the credit bureaus, confirmed to Credit.com. Testing is currently underway and a final plan regarding the information
For most buyers, the mortgage is the largest monthly expense they will have. Yet most borrowers will do little to no preparation, negotiation, or shopping to get the best deal. And they end up paying much more for their loans than they need to. You? You're smarter than that, or you wouldn't be reading this article. Here are five of the biggest mistakes that can cost you real money.
1. Believing advertised rates are what you'll pay
Unless you have perfect or near-perfect credit, most advertised rates are out of your league. To get boasting rights on a rate that good, you have to pay part of a point (one percent of the loan amount) a point, or more to get the best rates.
Your lender will go over your credit with a fine-tooth comb to find
Shopping for a mortgage became easier in early October when the Consumer Financial Protection Bureau began mandating that lenders provide a new, simplified disclosure form to help consumers compare home loans. This disclosure (see below) is most useful after you've found the home you want and need a solid estimate of borrowing costs from a variety of lenders. But before you get to that stage, you'll need to prove to a seller that a bank will lend you what you need to close on the deal. To avoid miscommunication snarls, you have to understand the difference among lender guarantees.
A prequalification is really just to get you started, so you have a ballpark idea of how big a mortgage you can afford. When a bank prequalifies you,
Refinancing a mortgage means paying off an existing loan and replacing it with a new one. There are many common reasons why homeowners refinance: The opportunity to obtain a lower interest rate; the chance to shorten the term of their mortgage; the desire to convert from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or vice versa; the opportunity to tap a home's equity in order to finance a large purchase; and the desire to consolidate debt.
Some of these motivations have benefits and pitfalls. And because refinancing can cost between 3% and 6% of the loan's principal and - like taking out the original mortgage - requires appraisal, title search and application fees, it's important for a homeowner to determine whether his or her reason
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You? Buy a home? If that prospect sounds as unlikely as your becoming the next U.S. president—well, this campaign season has shown us that anything can happen.
Sure, amassing the funds and slogging through the necessary paperwork for your own piece of the real estate pie can be daunting, especially if you’re a less-than-stellar loan candidate. Still, if you just assume there’s no way you could buy a home, without doing any research, you could be missing out.
Here are some oft-cited reasons people don’t buy a home, and the reality checks showing why they shouldn’t give up hope.
Reason No. 1: ‘I don’t have enough money for a down payment’
This is probably the most common justification for not making the leap into homeownership.