The summer housing market is heating up. Homes are selling quickly and even at higher prices due to low inventory driving multiple bidding situations. Cheap mortgage interest rates are helping to fuel the housing market. If you don’t plan on purchasing this season you may want to consider a refinance. You may qualify for a lower rate which could save you a significant sum of money per month.
If you haven’t yet refinanced your home, chances are rates are lower since your first purchased it. If you have been maintaining your credit score you may be able to qualify for an attractive rate. Review the interest rate you currently have and contact your loan officer to get a current rate quote to determine how much you could save per month.
Another reason to refinance could be to pay off your mortgage sooner by shortening the term of your mortgage. With rates this low you might be able to go from a 30 year loan to a 15 year loan without increasing your monthly payment.
If you plan on staying in your home for the long run a refinance is a sound financial decision. If you are open to moving it may not pay to refinance as you may not recoup the costs if you do decide to leave your home.
If you are still not sure if you are ready to refinance, contact your loan officer to help you make the right decision.
During this busy house hunting season it’s easy to get caught up in the appeal of a house. Before you choose a home based on aesthetics it’s important to make sure the parts that make up the home are in good condition. You should never buy a home without a professional inspection but you can also spot potential problems yourself. Here are some red flags you should note while touring houses.
Is the whole neighborhood for sale? If several homes on the block are listed for sale this could be considered a red flag. Ask around to make sure there are no issues such as crime or loud neighbors. It’s better to be safe than stuck in a bad neighborhood.
Is the outside of the home looking neglected? An unkempt exterior could suggest that the homeowners may be neglecting the inside of the home as well. Make sure to be extra cautious when viewing the interior and check for signs of poor home maintenance.
Is the yard sloping? Walk around the entire house and check the f
oundation for cracks. Does the yard slope toward the house? If so then you can expect water to be going into the basement. Foundation problems can be costly so be aware of these issues.
Do you notice any unpleasant smells? While walking through the home have you noticed any foul odors such as mustiness or pet odors? Foul odors could bring up many red flags such as mold, water damage, etc.
Do you see stains on the walls? If you notice any staining on the
walls or the ceiling this could be water damage or mold. Ceiling stains are a big red flag as that means there are roofing problems.
Test the Windows. You will want to inspect the windows making sure there is no water damage around the frame. Make sure to check the functionality of the windows as well.
Ask if the home has been renovated. It’s important to know if a home has had work done to it to ensure that no load bearing walls have been removed and to ensure the structure of the house is in good shape.
Check the faucets. Check the faucets for water flow and hot water. Sometimes a low water flow can indicate plumbing issues which can be costly.
Check the functionality of all the doors in the home. If the doors are not closing properly this could mean there is foundation settling or framing issues.
As the real estate market heats up, house flipping is coming back into popularity. House flipping is when someone purchases a house with the intent to renovate and sell the house for a profit within a short period of time. With low inventory and rising prices, great deals on homes are hard to come by as there is a lot of competition out there. If you believe you can succeed in flipping houses here are some things you need to know.
Buying a home and getting a mortgage goes hand in hand. Once you have been pre-approved for a mortgage loan the next step is to find the right house. There are a lot of things to consider when buying a home including the price, condition of the home, and location. Here are some terms you should know while going through the house hunting process:
Even if your spouse or significant other has poor credit, it will not affect your credit rating unless you have joint accounts. Their bad credit will affect you however, when you go to apply for a loan together, including mortgages. When applying for a mortgage, lenders will look at both of your credit scores. If one of you has a low credit score this could affect the type of loan you qualify for, the amount you qualify for, as well as the interest rate you will receive.
Before you decide to enter the market to buy a house it is important to understand how much house you can afford. It is not a good idea to go into the market blindly without doing any research as this is one of the most important decisions you will ever make. Here are some tips to help you determine how much house you can afford.
- You want to keep your monthly mortgage payment no higher than 28% of your gross monthly income (before taxes are taken out). You also want to keep your total house payment which can include the mortgage, insurance, association fees, taxes, etc., no more than 32% of your gross monthly income.
- Don’t forget to take into account any other debts you may have such as student loans or auto loans as well as credit cards. All of your debts including the house payment should not exceed 40% of your gross monthly income.
For example: A couple making a combined annual income of $100,000 should keep their mortgage payments under $2,333 (28% of gross monthly income). With all taxes and fees included this couple’s house payment should also not exceed $2,666 (32% of gross monthly income). If the couple wanted the highest mortgage payment possible they could have up to $667 of other debts per month and still be able to afford the mortgage payments.
Please contact me with any questions you have regarding your future or existing mortgage. Don’t forget to get pre-approved before you begin house shopping. I am here to help!
With the large number of Americans affected by foreclosures, bankruptcies and short sales, more and more people are asking how long they need to wait until they can get a home loanagain. There are a lot of people out there who worry about their credit after a financial disaster. The following information will let you know how long you need to wait based on the type of loan you have.
If you are in the market for a new home it is very important to get a home inspection before purchasing. Buying a home is one of the largest transactions you will ever make so it is essential that you’re confident in this investment.
When shopping around for the right mortgage loan it is important to have some understanding of what all makes up a mortgage in order to make the right decision for your future.
The first step in loan shopping is figuring out what type of loan you will qualify for. The four most common loan types are Conventional, FHA, VA and Jumbo.
When going through the process of obtaining a mortgage loan, your lender will be paying close attention to your credit. If you start making large purchases or even moving money around in your bank accounts this could raise a red flag to an underwriter which will affect your ability to get your loan approved. From the time you apply for a mortgage loan until the time you close, your financial state should remain the same. Use your credit as you normally would and stay current on your existing accounts.
