Making smart decisions when it comes to choosing a mortgage loan can save you a huge amount of money for years to come.
We talk a lot about interest rates. In most cases, the rates we’re discussing are base rates without any points or fees added by mortgage lenders. Many lenders may not want you to know this, but those points and fees may be negotiated to your best advantage.
A recent survey showed that, while 4 out of 5 Americans consider themselves bargain hunters, less than 30 percent of consumers actually look for, or ask for, better terms for their home loan.
Why is it so important to shop lenders?
There are several reasons. The main one of course would be….money! Aside from lender fees that you would pay as a lump sum at close of escrow, even negotiating your interest rate a few fractions of a percent can save you thousands of dollars over the lifetime of your loan. What’s equally important is the level of service you can expect from your mortgage lender. Finding out how easy it is to have problems resolved through their customer service branch, or even if a lender regularly sells your loan to another bank are good things to know up front. Continue reading Shopping Home Loans Can Save You Money
“Boomerang” home buyers are re-entering the marketplace, and some are able to take advantage of first time home buyer programs.
The last decade brought us a few tough years, especially for some home buyers. Real estate professionals like us were able to help many avoid foreclosure during the darkest days of what’s become known now as “The Great Recession.” In some cases, foreclosure was avoided through a short sale or other means such as deed-in-lieu. Of course, in avoiding foreclosure, the now former homeowner was once again in the position of renting the place in which they lived.
Fortunately, in most cases, distressed times are short-lived, and many were (and are) able to get back on their financial feet. Lenders made changes to their restrictions, some allowed former short sellers to qualify for a mortgage in as little as two years under certain circumstances.
For others, their wait to be able to afford another home purchase may have taken a little bit longer. However, there’s good news for them, especially when it comes to first time home owner programs. Continue reading Previous Homeowners May Qualify As First Time Buyers Once Again
“Blueprint For Access” program provides incentives to improve credit score and overall accountability.
Are you “credit shy?” Do you balk when it comes to the idea of speaking to a lender about your…<gulp> credit score?
It’s understandable, especially for those who may have some credit challenges, to be slightly intimidated at the thought of talking to a lender about your credit history, especially when it seems the best loans and rates are reserved for those with “golden” credit. Or ARE they?
The Federal Housing Administration (FHA) recently released a new program designed to help those with lower credit scores obtain mortgage loans while rewarding them for their credit accountability.
The “Blueprint For Access” program was initiated late last year, and has already helped many buyers with less-than-perfect credit obtain home loans at competitive rates. Blueprint For Access helps potential home buyers work through their accountability issues through a counseling program called “Homeowners Armed With Knowledge” (HAWK). HAWK works to educate qualified home buyers about establishing (and keeping) good credit. It also works to establish clear “rules of the road” when it comes to maintaining good credit, and finally, the program rewards borrowers who complete the counseling program with a reduction of 50 basis points off of their up front mortgage insurance Continue reading FHA Program Helps Buyers With Low Credit Scores