Mortgage Financing First Quarter Round-up

Written by Posted On Sunday, 31 March 2019 12:54

There has been some incredible home financing related content which has been shared throughout this month. Some of leading real estate industry bloggers in the country continue to write articles that provide value and knowledge for consumers during the process of purchasing or financing real estate. Check out the summaries of some of the best mortgage related content for the month of February 2019.  

Mortgage Approval Chances Depend on What?
If you’re considering buying a home ownership but not sure if you will qualify have a quick read of Gina Pogol's article about loan approval chances based on credit and down payment! She discusses the importance of your FICO credit scores, debt to income ratios, down payment percentages, and loan to value. In addition, a brief review of popular loan products you may qualify for with low credit scores, including conforming loans and FHA govt. insured loan guidelines.

States with the Lowest Mortgage Rates
If you’re selling or buying a home and need to relocate to another state or still deciding which state to move to. Cost of living certainly plays a factor for most people. If you are California dreaming, you’ll be delighted to hear that the golden state tends to have the lowest mortgage interest rates in the country. If California is not in your dream, check out the article by Aly Yale on the states with the lowest mortgage rates. By keeping your payment low, you may have opportunities to invest the savings elsewhere to have a more comfortable life towards retirement. Keep in mind rates are usually not significantly less or more from a neighboring state!

Mortgage Insurance for Home Buying
Many people want to buy a home but are told they need to have 20% down to avoid mortgage insurance. Sometimes, the down payment is not what everyone can do! Peter Miller has written an excellent post about PMI Mistakes to Avoid. You will find information about buying with 3 percent down, 5 percent, 10 percent, and 15 percent down and the corresponding PMI payment percentage.

Moreover, for conforming loans, FHA, VA, and Portfolio loans are discussed and how mortgage insurance affects each with less than 20-percet down payments. Private mortgage insurance is not for everyone, however, it is a way to get into a home and start building wealth.

FHA Loans & Millenials
Since 2017, there’s been an increasing number of home buyers aged 20-40 who are actively searching for a home to buy. Their major concern is higher interest rates and having saved enough money for a down payment. Saving for a down payment does not work for everyone especially in high-cost areas. This is a reason to finance their purchase.

Erik Martin has written an in-depth post about why
more millenials are choosing FHA loans. You will find information about buying with 3.5 percent down using an FHA loan. In addition, he informs the reader about the benefits of FHA loans and even a comparison to conventional financing that allows just 3-percent down. Towards the end of the post you’ll learn what to do well before applying for an FHA loan and if it’s even the right loan for you.

Borrower’s Allowable Income
If you’re thinking of buying or refinancing a home and feel your income is pretty strong, you may not think of getting prequalified. However, lenders have some strict rules in terms of what type of income is something they can use in your debt to income ratio calculations. A lot more people work part-time gigs and have second side jobs for additional income

To be sure if all of your income will qualify, you’ll find this post on Income by Peter Warden well worth the time. He goes over the importance of your ability to repay, debt to income ratios, sources of income, as well as the rules by Fannie Mae and Freddie Mac, FHA, and VA. In addition, you’ll learn about income you receive from a boarder, alimony, child support, bonuses, commissions, investment dividends, and so on.

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William Cook

California Real estate broker & mortgage lender with more than 10 years experence who has helped hundreds of people acquire financing for homes, rental properties, condos, and multi-family properties using conventional financing as well as specialty loans that require no tax returns. Licensed to do business in CA, CO, FL, and TX.

Providing exceptional service for home buyers and homeowners in California's major cities of Los Angeles, San Diego, Orange County, San Francisco and throughout the state.
Colorado: Denver, Boulder, Fort Collins, and Snowmass Village.
Florida; West Palm Beach, Ft. Lauderdale, Naples, Orlando, Santa Rosa Beach, and Tampa
Texas: Austin, Houston, and Dallas

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