First Home Purchases
Jobs Impacting Real Estate & Mortgages 09/06/2010
When discussing the real estate and mortgage markets these days, it is almost a necessity to also discuss current unemployment numbers because one of the basic qualifications a potential home buyer must meet in order to obtain a mortgage is "a consecutive twenty-four months of employment", preferably with the same employer depending on his/her overall work history. According to FHA requirements and guidelines a mortgage applicant must be able to document the most recent two years of employment regardless of whether s/he has perfect credit and a large down payment (twenty percent or more). Short-term housing - Home away from home It seems then that when an individual is laid off (fired) from the job that s/he held for a considerable period of time his/her ability to purchase a home becomes almost non-existent and therefore has a direct impact on the reporting of housing units sold in that region of the country. Housing sales for the month of July, 2010 showed a reduction of twenty seven percent (27%). This decline is most likely attributed to the continued unemployment situation that has been a constant problem throughout this recession. Short-term apartments in various US cities So we know that the economy is not good as measured by unemployment which directly affects real estate and mortgages in a negative manner; What hasn't been determined yet is how to solve (or improve) the situation. What are the answers? Get a job? A new job in which your income is similar in amount and frequency would be acceptable to the FHA and you may still qualify for the mortgage (but only after you have received your first 30 days in salary) because your work history on the previous job can be added to the first month on the new job and used to satisfy the two year requirement. Refinance.com mortgage loans What if companies are not hiring? This has become an often-repeated reason for the continued high unemployment (9.6% as of yesterday's - Friday September 3, 2010 - report) and will continue as the main reason until companies begin to hire again; But, is there perhaps another option? Is there freelance work available that does not require a company to provide all the benefits that an employer must (e.g. health care, workman's comp, paid vacations, etc.). FHA-insured mortgage programs discussed If your new freelance (independent contractor) work is comparable to the work you had done for the employer that laid you off, and you can show proof of earnings (30 days worth of pay statements or other documentation), and prospects for continued work are good or excellent, your chances of getting a FHA-insured mortgage approval may still be very good. Of course, through this process of being laid off and reapplying for jobs as well as having to settle for freelance work could have a rather negative impact on your desire to pursue a home purchase, and this is certainly understandable in these times of uncertainty. Mortgage Stories: FHA mortgage program info Borrower-friendly Loans: BK-HECM programs Buying & Selling tips from Trulia
Tips on First-time Home purchases 08/15/2010
The process involved with first time home purchases can get quite overwhelming, giving some buyers the impression that the financial decisions are rapidly spinning out of control. When it comes to real estate and real estate loans, most people don’t have a lot of experience or knowledge about the process but in all actuality, buying a home is actually a simple process. All you need to do is understand the basics and that will help to alleviate a lot of the worry about your first-time home purchase. Probably the most worrisome part for those involved in a first-time home purchase transaction is the financing of the property because there are so many different factors involved. One such factor is; How are we going to pay for this home? Or can we pay for this home? What's important for the buyers to remember is the fact that if they managed their previous housing expenses in a satisfactory manner (this is to be expected since they are now looking to purchase), then that is the point from which they can begin to eliminate things to worry about. In other words, control what is controllable first, and then go from there. We'll assume then that earnings are satisfactory. Another question which sometimes create some uncertainty is; Do I (we) have enough of a down payment to make this purchase? What if we don't have enough money? This question is important to consider by the buyers in a first time home purchase, because the general feeling about home purchases is "you never have enough of a down payment". Most of us would rather make the purchase with our own cash resources and not owe the bank a dime, but unfortunately, that is unrealistic so the next best thing is to have sufficient enough of a down payment to satisfy the lender's requirements. Since many lenders issue loans insured by the Federal Housing Administration (FHA), and the FHA requires a minimum down payment of 3.5% of the purchase price or the appraised value (whichever is less), this should be a worry that can also be eliminated simply because it is the FHA required down payment is the lowest on the market (except for VA guaranteed loans which are restricted to veterans of the Armed Services and their spouses). When prospective purchasers who have managed their household expenses in a satisfactory enough manner to believe that they could begin to look for a home of their own, it is reasonable to assume that they have considered the down payment requirement and as such may have saved or have access to the FHA minimum required down payment. Assuming that there is enough of a down payment, this worry can be eliminated from the list. Let us make a few additional assumptions here; Based upon the first qualification (satisfactory household expense management) which encompasses payment of all expenses associated with managing a household, e.g. rent, utilities, phone, cable, insurance (auto, personal and life), kids (if any), credit cards, auto loans, etc.; It is not a far reach to assume also that the credit report will reflect positively enough to be approved by a lender, so the buyers in our first time home purchase transaction, having demonstrated thus far that they have met certain responsibilities in a satisfactory manner, the credit report may be another item of worry that can be eliminated from the list. Although there is no way of knowing what's going to show up on the lender's credit report, you can feel pretty confident that it won't be an issue, especially if our buyers had previously requested their free copies fro the credit bureaus. This is something we would expect them to do based on prior satisfactory actions. The thre most important requirements of buyers in a home purchase transaction, whether it is a first time home purchase or not are sufficient enough earnings to support the repayment of the mortgage loan, enough of a down payment to satisfy the lender's Loan-to-Value (LTV) ratio requirements, and a good enough credit profile to support the lender's trustworthiness (that a buyer will voluntarily repay the loan in accordance with the mortgage terms) requirements. These are areas that can be controlled by the buyers. When the transactions are first time home purchases, buyers' qualifications are documented a little more thoroughly simply because there is no track record (experience) of they having dealt with the expenses or the maintenance, repairs, or utilities in a complete house as opposed to just a rental. Having said that, the buyers in a first time home purchase transaction must always be aware of what the lender will expect of them and the lenders must certainly know what the buyers expect of them, because the lender will be responsible to take care of everything about the transaction that the buyer cannot control, e.g. property evaluation, loan terms, market rates, title reports and surveys (in many states outside of NY), process, underwrite, approve and close the loan. Being aware of the responsibilities of the respective parties to each other helps to alleviate most of the worry in first time home purchases transactions.
FHA Mortgage Loan 05/31/2010
FHA Mortgage Loan Free eBook Download! All you need to start making money! In past decades, it was believed that a FHA mortgage loan was a FHA mortgage loan no matter what type was chosen, because they weren't many options available. But that is not true anymore because of the many FHA mortgage loan products available today. So before choosing a FHA mortgage loan, it is very important to decide which one is right for you. If you haven't heard of the "spreadsheet of spreadsheets" Take a look! Finding the right FHA mortgage loan means balancing your mortgage options with your housing requirements and financial picture, now and in the future. Also the right FHA mortgage is not just having the lowest interest rate but much more than that;. And this “much more” will be determined by your personal financial picture. Whether or not your financial picture reflects an ability to pay FHA mortgage payments on a monthly basis can be evaluated by answering the following questions:
The answers to these questions will provide basic information which may help you to better determine your financial picture and home buying ability. Your next step is to decide on two key options:
The length of a FHA mortgage loan is generally a minimum 15 years; but can be 20, 25, or a maximum 30 years (some lenders have offered 40 and 45 year terms, but they weren't, and still aren't very popular). While selecting a fixed or adjustable interest rate you should be aware of certain facts. 1) The adjustable interest rate on a FHA mortgage is more risky because the rate will change. 2) The fixed-rate loan offers more stability because it is locked-in after closing. Prime Mortgages blog. A source for FHA mortgage information! Although you will be able to pay off a shorter-term loan more quickly, you must be sure that you can comfortably afford to pay the higher monthly payments before opting for the 15 year term. Long-term fixed-rate loans are popular because they offer certainty, and many people find that the payments are easier to fit into their budgets. Although, in the long run 30 year loans will cost you more in interest, you will have more available capital during the loan term when you need it, and you will be less likely to default on the loan should an emergency arise. Buy and sell Real Estate from Home! In view of the above mentioned considerations, it is clear that the key to selecting the right FHA mortgage loan is how the new debt fits into your overall financial picture. Having payments fit comfortably within your budget is most important when taking on a big-ticket item expense such as a FHA mortgage loan. Sell your hard-to-sell home with this program! The FHA-Insured Loan 05/21/2010
Hello, Understanding the Process The Prime Mortgages blog! A FHA-insured loan is what many people use to buy their homes. FHA-insured loans have been instrumental in bringing joy to families by making that unaffordable house into affordable home. Some business owners who occupy the mixed-use properties in which their businesses are housed also make use of FHA-insured loans for buying those properties. However, a FHA-insured loan is not free money and anyone who buys real estate or plans to buy real estate using a FHA-insured loan must understand the concept of FHA-insured loans very clearly. They must understand that FHA is not the lender, it only insures the loans This Free ebook is an online income producer! FHA-insured loans (also known as mortgages) is money that you borrow from a financial institution, i.e. a mortgage lender, for the purpose of buying a property. The FHA-insured loan generally covers a part of your purchase price and the remaining portion has to be paid out-of-pocket for down payment and closing costs. The amount that you have to pay as down payment is dependent on a number of factors, including the FHA required minimum down payment which is currently 3.5%. Whatever you borrow from the mortgage lender as a FHA-insured loan needs to be paid back to the mortgage lender over a period of time (and of course, you will also need to pay appropriate interest on that FHA-insured loan). Learn more about the FHA-Insured 203k Rehab Loan The tenure of your FHA-insured loan and the prevailing market rate will determine the amount of interest you pay on your FHA-insured loan. Generally, you are required to pay back the FHA-insured loan in the form of monthly installments which are composed of both interest and principal portions of the loan. Also, there are various types of these loans, e.g. fixed interest rate loans and adjustable interest rate loans. So depending on what type of FHA-insured loan you have opted for, your monthly payments might either remain constant (fixed rate) for the full tenure of the loan or may be adjusted periodically (adjustable rate) on the basis of a financial index. The REO list every agent should have! Besides that, some other costs associated with FHA-insured loan are closing costs, inspection costs and attorneys fees, among other costs and fees. Also, in case the property needs some repairs, there will be costs associated with that too (in which case you can opt for the FHA-insured 203k loan which will allow for the work to be completed per separate estimates and agreements). There is stamp tax and other taxes that you will need to pay, but understanding the concept of a FHA-insured loan and the related costs will make the home-buying process a lot smoother. And the process is really not that tough to understand if you invest a little time reading up on it. The Real Estate Contract software used by the professionals. FHA Home Loans! 05/17/2010
FHA Home Loans FHA home loans make the process of buying a new home more affordable than ever. As you may already know, these types of loans give you many opportunities that wouldn’t be possible without them. When you buy a home, you should understand as much as you can about the process, as well as the questions you will be answering. This way, you’ll be familiar with how things work and you’ll find the entire process to go much smoother. Get the free eBook that makes you money! When you look towards a home purchase loan - FHA or otherwise - you’ll need to fully understand the interest rates. They are never the same and will vary among the different financial institutions. In many cases, interest rates on home loans can change on a frequently, with little to no notice. When you buy a home, it is very important that you keep up with economic news. Any change in interest rates for a home loan will have a direct impact on the amount you pay back. Learn to master effective article marketing methods! When getting a FHA home loan, you’ll also need to understand the terms and the length of the loan. Almost all financial institutions and lenders have a variety of different plans and periods for you to choose from. If you choose a longer period, in most cases your monthly payment will be reduced. You can find this out yourself by using a mortgage calculator, which will help you determine how much your mortgage payment will be before you decide on the terms offered. Create huge traffic streams to your website. Start here! As you probably already know, your ability to repay the loan is very important. Some lenders require that you to pay a penalty for early payoff, while others may provide you with the option to pay it off any time you wish without a penalty. FHA Home loans requires no penalty for early payoff of your home loan, this way you won't end up being penalized if you need to relocate. In addition, If you are able to pay your loan off several years early you’ll save a lot of money in the long run. Get started making money as an affiliate. getting paid is fun! For the potential home buyer, FHA home loans offer several different opportunities. Before you rush out and get a home loan, you should always know what you are agreeing to. You should also check out the company you are thinking of getting the loan from as well, so that you can better prepare yourself when you go through their process of getting your FHA home loan. Power networking cuts your work and increases your earnings! |
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