Archive for the ‘How To Buy A Home’ Category

  • Assets Can Be Used For Qualifying Income

    Much of the housing news reported focuses on inventory and credit guidelines.  In case you haven’t noticed housing inventory is low and credit guidelines are tight.  These two headlines show up all the time and for good reason.  In many markets they are both true. With interest rates still low and home prices rising in a majority of markets many homeowners appear to be hanging on to their homes.  This could be to try and time the sale of their home to coincide with a market peak or they realize that if they do sell their home for top dollar they will be turning around to buy in a market with scarce homes available and paying top dollar as well. The gap between income and home affordability can be a hard one to bridge and for many potential home buyers it is out of reach due to increasing prices and a tight credit market. One story I don’t see reported much is that lending volume is down considerably in 2017 and lenders are looking for ways to increase loan applications while not taking on too much risk.  That line is not an easy one to draw so instead of re-writing guidelines or coming up with something altogether new lenders will typically enhance an existing guideline to cast a wider net in an effort to capture more potential borrowers. Whenever

  • 40-Year Fixed & Interest Only

    Yes, you read that right.  We have loan terms fixed for 40 years and the first 10 years can be interest only.  And here is best part:  The range of loan amount is $100k to $2.5 million. While our residential lending world looks to find it’s footing in this new market place lending volume is down and banks are looking to expand lending guidelines to appeal to a wider variety of consumer.  For those of you who recall what the lending world looked like ten years ago this may feel nostalgic and for those of you new to the home buyer market this may be your big opportunity. As with every loan program the devil is in the details and I think this is where this program shines because the barrier to entry is very reasonable.  For example, do you have a bankruptcy on your record?  It it’s been 2 years since the discharge date you are eligible for this loan.  Do you have a 600+ Fico score?  You are eligible.  Even the reserve requirement and debt-to-income ratio are better than most lending programs out there and they even allow non-occupant co-borrowers.     Basically, the only thing keeping you from qualifying for this loan is not taking action.  Want to spend a few minutes of your time finding out what your purchase power looks like using this incredible opportunity

  • Expect Mortgage Rates To Keep Rising This Year, Says Freddie

    Mar 24, 17 • Huggy • How To Buy A Home, Mortgage RatesNo CommentsRead More »

    by Ryan Smith | 17 Mar 2017 Mortgage Professional America | www.mpamag.com Mortgage rates were up for the second consecutive week this week – and originators should expect that upward trajectory to continue as the Fed keeps raising the benchmark rate, according to Freddie Mac. The Federal Reserve fulfilled market expectations by raising the federal funds rate by a quarter of a percent this week – only the third time in a decade the rate has been raised. However, Fed officials had signaled their intentions leading up to the agency’s meeting this week – so clearly, in fact, that market expectations of a March rate hike shot from only around 30% to 80% in advance of the meeting. Those expectations drove mortgage rates up even before the Fed made its benchmark rate hike official, according to Sean Becketti, chief economist for Freddie Mac. “As expected, the FOMC announced its first rate hike of 2017 and hinted at additional increases throughout the remainder of the year,” Becketti said. “Although our survey was conducted prior to the Fed’s decision, the release of the February jobs report all but guaranteed a rate hike and boosted the 30-year mortgage rate nine basis points to 4.30% this week.” The 15-year fixed-rate mortgage also rose this week, with its average rate spiking to 3.50% from last week’s 3.42%. And the 5-year Treasury-indexed hybrid adjustable-rate mortgage rose from 3.23%

  • Beware of Poor Home Flips! Lurking in the Kitchen

    Beware of Poor Home Flips!  Lurking in the Kitchen

  • House Flipping…The Good vs. The Bad!

    House Flipping…The Good vs. The Bad!  

  • What Happens To Home Buying Power As Rates Rise?

    By Eric J Martin of The Mortgage Reports Originally posted on November 21, 2016   Mortgage Rates’ Profound Effect On Affordability The mortgage interest rate you find plays a large part in how much money your lender will let you borrow. That affects how much home you can buy. That begs the question: how does your purchasing power change if rates creep up a half a point or even one full percentage point? Much more than you might think, which is why it pays to shop for a home now, and lock in a favorable fixed rate at historical lows. Many home buyers realize that rising home prices can limit their ability to buy. However, rising interest rates can alter home-buying plans even more. The current rate environment is likely a narrow window of opportunity in which to claim a low rate and a still-reasonable home price. Housing agency Freddie Mac recently predicted that mortgage rates will rise to 4.0% in 2017. That’s more than 50 basis points (0.50%) higher than the current mortgage rate average. Today’s rates maximize your ability to buy a better home with affordable payments. Click to see today’s rates (Feb 13th, 2017) The Cost Of Rising Rates Today’s lenders qualify home buyers based on several factors, not the least of which is something called a debt-to-income ratio (DTI). A low DTI demonstrates that you have a healthy balance between income and debt. Lenders generally cap the allowable DTI at

  • Renters! 2017 Is Your Big Opportunity

    I was talking to a property manager this past weekend who has been managing rentals in San Diego for 30 years.  I asked him what he is seeing for 2017 and he said all of his properties are seeing on average 4% rent increases this year. This is true for the rest of the country as well.  Rent was up nationwide in 2016 so will that trend continue in 2017? So far the answer looks to be yes.  Here’s a better question for all the renters.  What is your pain tolerance for another rent increase in 2017?  And here’s an even better question.  With home value increasing how much equity did you earn last year by paying rent? If you are paying $2,500/mo in rent and you see a 4% increase that calculates to $100 more rent per month.  Right now with mortgage interest rates where they are that $100 = $20,000 in home price.  Another current fact is that mortgage applications are down and lenders are looking for ways to increase loan volume which means they have enhanced credit guidelines so that borrowing money is easier. Click here To Find Out How Much Your Rent Translates To Home Purchase Power.   By David Hughson Mortgage Planner / Turning Renters Into Homeowners

  • Will & Chelsea, “3rd Time Working w/ The GHG & They Always Blow It Out Of The Park!” | Testimonial

    Will & Chelsea, “3rd Time Working w/ The GHG & They Always Blow It Out Of The Park!” | Testimonial http://www.TheGreenHouseGroupInc.com And THATS what we love to do: meet great people, and help co-create great things, and leave them better than how we found them. If you are wondering whether now is the right time to own a home of your own, and want to make sure that you get the right team to help you get there, perhaps this sounds like something you might want to talk to us about. If so, feel comfortable contacting us at 858-863-0261. This was done with the help of Jesse Ibanez, Craig Sutliff as REALTORS, all from The GreenHouse Group in San Diego,

  • What Are The 3 Biggest Homebuyer Mistakes?

    Posted on December 5 on DownPaymentResource.com Are you making these classic homebuyer mistakes?  It’s true you often learn from your mistakes, but what if you could avoid as many as possible? Buying a home will likely be your biggest financial purchase in your lifetime so it’s important to get it right. Even though you may start your home search online, more than 90 percent of you will end up using a real estate agent to help you navigate your purchase. Inman News polled its agent readers about homebuyer mistakes they see buyers make. 1. Not talking to a lender first As they say, success is 90 percent preparation. It’s no different when it comes to home buying. Unless you are paying cash for a home, you will need a home loan and a lender. Instead of finding your dream home online and scrambling to make an offer, start talking to lenders early. Shop your loan. Plan to interview at least three lenders to find the right one. Check out our 5 essential mortgage lender questions to brush up on what you should ask. Get pre-qualified to better understand your home search price range and loans that may fit your situation. If you haven’t looked for a loan in a few years things have changed–there are now more low down payment options available. Ask your lender about homeownership programs that could

  • The Election and Down Payments

    By Rob Chrane – CEO of Down Payment Resource The election has left Republicans in control of the House, Senate and White House for the first time in over a decade. The new alignment provides a viable path to far-reaching changes in federal housing policies affecting housing finance and housing markets. Increasing homeownership is at the top of the agenda for the new Congress and Administration. Changes may be in store for the Dodd-Frank Act, including restructuring or terminating the Consumer Financial Protection Bureau and raising the threshold for tougher bank regulation above its current $50 billion asset level. President-elect Trump has promised to reduce regulations, across the board, and financial institutions are likely to embrace his deregulatory stance. In housing finance, policy-makers may focus on reducing risk. Programs like FHA may see major changes and the role of GSEs will continue to evolve. The role of government in housing markets and housing finance could change dramatically. If so, it will take at least a couple of years, but it’s too early to tell because this wasn’t addressed in detail during the campaign. Only by increasing the numbers of first-time buyers can we reverse the multi-year decline in homeownership. Saving for a down payment continues to be the greatest single barrier keeping first-time buyers from becoming homeowners. Low down payment programs and down payment assistance are effective and critical strategies

The GreenHouse Group, Inc. | Real Estate Consulting & Mortgage Planning. "Moving People With Purpose."

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