While there are many things that are out of your control in the mortgage approval process there are a few things you can do to speed it up. First off you need to be prepared. This would include getting all of your paperwork in line as well as review your credit score.
Being your mortgage lender I am always looking out for new opportunities for you to save on your home financing. In the spirit of Thanksgiving I would like to share some more money saving tips for you to consider throughout this holiday season.
When you are in the market for a mortgage loan having your finances in order is crucial. One of the areas that mortgage lenders have to pay attention to is the amount of debt a borrower has. Lenders look at the debt-to-income ratio (DTI) which compares ones total debt expenses to gross income. The lower the DTI, the better chances you will have at qualifying for a mortgage. Typically you want to keep your DTI under 40% to be considered in good financial health. By keeping your debt low you are more likely to pay off your mortgage even if you were to suffer a setback.
If you haven’t heard of the Home Affordable Refinance Program, also known as HARP, just ask one of the 2.9 million homeowners who have saved as much as $12 billion a year on their mortgage. The HARP program was first introduced in 2009 and has since made changes to help even more borrowers qualify for a refinance.
If you’re like most people you aren’t an avid follower of mortgage interest rates. If you are a rate watcher you are probably keeping tabs on the weekly economic reports as well as following treasury auctions, waiting for rates to fall. Chances are while you were waiting to see rates drop further you could have already been saving money with a refinance or building equity in a new home purchase.
A Good Faith Estimate, also known as GFE, is the document that explains the cost and terms of a mortgage. Applicants will receive a GFE within three days of an application which is required by law. This document is very important when you are doing mortgage comparisons and it will help you better understand your loan.
Last week, Thursday October 10, marked the day the Great Chicago Fire was extinguished in 1871. The fire raged for two days and left one third of the city, at that time 324,000 people, homeless. It was in the wake of the Great Fire that Draper and Kramer first opened their doors in the Chicago Loop to help rebuild and develop the city after the devastation.
Chicago real estate has had a great summer with home sales rising 24.3% year over year with the median home price rising 16.2%. If you are in the market for a new home in Chicagoland here were the top selling areas over the summer:
Lakeview: (Attached SF) Lakeview has antiquated character on the outside with all the modern amenities you could want in a new home. Along with remodeled condominiums there are also many townhomes and detached single family options as well. The average price for a one bedroom condo in this neighborhood is about $252,000.
Yesterday the U.S. government shutdown as a result of Congress’ failure to agree on a budget. The shutdown has left 800,000 government employees out of work. Some of these areas that are reducing staff and/or closing their doors may have an effect on the housing and mortgage market.