Obtaining a pre-approval for a mortgage is an important step when you're planning to buy a home. It gives you an idea of how much you can afford, helps streamline the home-buying process, and strengthens your position as a serious buyer. However, many people worry that the pre-approval process might negatively impact their credit score. In this blog post, we'll dive into the details to determine whether or not a pre-approval for a mortgage will hurt your credit. Understanding Credit Inquiries To understand how pre-approval affects your credit, we need to discuss credit inquiries. When you apply for credit, such as a loan or credit card, the lender typically pulls your credit report to … [Read more...]
Will Pre-Approval for a Mortgage Hurt My Credit Score?
Obtaining a pre-approval for a mortgage is an important step when you're planning to buy a home. It gives you an idea of how much you can afford, helps streamline the home-buying process, and strengthens your position as a serious buyer. However, many people worry that the pre-approval process might negatively impact their credit score. In this blog post, we'll dive into the details to determine whether or not a pre-approval for a mortgage will hurt your credit. Understanding Credit Inquiries To understand how pre-approval affects your credit, we need to discuss credit inquiries. When you apply for credit, such as a loan or credit card, the lender typically pulls your credit report to assess … [Read more...]
Buying in a New Community: How to Meet and Make Friends with Your New Neighbors
One of the stresses of moving to a new area is giving up the familiarity that you have with your old neighbors and starting from scratch. Whether you've just moved to a different locale or you're planning to relocate in the near future, there are some easy ways that you can make a home of your new neighborhood right from the start. Stand Up and Smile While there are neighborhoods where people are definitely friendlier than others, by making your presence positively known you can make an instant impression on those that live around you. When you're walking around the neighborhood, make sure you use it as an opportunity to engage with your fellow dwellers by throwing a smile in their … [Read more...]
What You Need To Know About Your Home Appraisal And Your Mortgage
When buying a home, there are certain steps a buyer should go through before the home sale is official. First the buyer makes the offer, then the offer is accepted. Next the buyer schedules the inspection and home appraisal. Finally, everyone is ready for closing. It’s easy to overlook the impact of some of these steps, but when it comes to a mortgage, the home appraisal is actually quite important. Banks want to see that they are lending money for an investment that is worthwhile, so that appraisal is a crucial step to getting financing. Here is what buyers need to know about how the appraisal could affect their mortgages. Understanding The Home Appraisal Process The home appraisal … [Read more...]
Most Renters Are Paying Far More Than Their Landlord’s Mortgage
It is not uncommon for renters to pay more in rent than their landlord's mortgage payment. This is because landlords are typically looking to make a profit on their rental properties, and they will often set their rent prices based on market rates rather than the cost of their mortgage. There are several reasons why renters often pay more than a mortgage payment: Renters are not building equity: When you make a mortgage payment, you are building equity in your home. Equity is the value of your home that you actually own. As you pay down your mortgage, you own more and more of your home. Renters, on the other hand, are not building equity in their homes. They are simply paying for the use of … [Read more...]
What’s Ahead For Mortgage Rates This Week – June 5, 2023
Last week’s economic reporting included readings from S&P Case-Shiller Home Price Indices on home prices, reports on U.S. jobs growth, and the national unemployment rate. Weekly readings on mortgage rates and jobless claims were also released. S&P Case-Shiller: Limited Supply of Available Homes Boosts Prices in March Limited supplies of homes for sale drove home prices up in March. Home prices rose by 0.40 percent month-to-month as compared to 0.70 percent year-over-year. Cities with the highest rates of home price growth were Miami, Florida, where home prices rose 7.70 percent year-over-year, Tampa, Florida with a year-over-year pace of 4.80 percent home price growth, … [Read more...]
S&P Case-Shiller Home Price Indices Show Mixed Readings in March
March readings for the S&P Case-Shiller National Home Price Index showed that month-to-month home prices rose by 0.40 percent in March. The 20-City Home Price Index, which is considered a benchmark indicator by U.S. real estate professionals, rose by 0.50 percent month-to-month in March but posted a negative reading of -1.10 percent year-over-year. Analysts said that the slim supply of homes for sale drove up prices as demand for homes exceeded available inventory. Homeowners took a “wait and see” position as mortgage rates rose and concerns over the economy persisted. Those who refinanced their mortgages to low rates during the pandemic weren’t looking to buy new … [Read more...]
Does My Current Debt Affect Getting A New Mortgage?
When you apply for a new mortgage, the lender will evaluate your creditworthiness to determine whether to approve your application and what terms and interest rate to offer you. Your existing debt can affect your creditworthiness in several ways: Debt-to-income ratio (DTI): Your DTI ratio is the percentage of your monthly income that goes towards paying off debt. Lenders typically want to see a DTI ratio of 43% or less, meaning your debt payments don't exceed 43% of your gross monthly income. If your existing debt is high, your DTI ratio will be high, and lenders may view you as a riskier borrower. This can make it more difficult to qualify for a new mortgage or result in a higher interest … [Read more...]
An Overview Of Mortgage Points
Mortgage points, also known as discount points or origination points, are fees paid by borrowers at closing to reduce the interest rate on their mortgage loan. Each point typically costs 1% of the total loan amount and can lower the interest rate by anywhere from 0.125% to 0.25%. There are two types of mortgage points: discount points and origination points. Discount points are used to buy down the interest rate on the loan, while origination points are used to cover the lender's administrative costs. Borrowers may choose to pay mortgage points in order to lower their monthly mortgage payments or to reduce the overall amount of interest paid over the life of the loan. However, paying points … [Read more...]
What’s Ahead For Mortgage Rates This Week – May 30, 2023
Last week’s economic news included readings on new and pending home sales and inflation. The final monthly reading for May consumer sentiment was released along with weekly readings on mortgage rates and jobless claims. Shortage of previously-owned homes for sale directs buyers to new homes Homeowners weren’t in a hurry to sell their homes due to the low mortgage rates they obtained during the pandemic. Current mortgage rates are higher than pandemic-era rates, which influenced homeowners to stay in their homes and keep their lower existing mortgage rates. Home buyers turned to new home developments as an alternative to shopping for a home within the slim supply of available … [Read more...]
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