If one of your New Year’s resolutions for 2018 is to purchase a home, or to save for a down payment and related costs, Freddie Mac offers the following steps to help get you started. Determine how much you can afford To get a very rough estimate of your affordable home price range, multiply your annual gross income by 2.5.
Seven Home Down Payment Myths Debunked Not knowing the facts when it comes to home buying could wind up costing tens of thousands of dollars more than necessary. The National Association of Realtors recently released a snapshot of home purchases in 2017 that shows the median home purchase price was $235,000, with 88 percent of buyers using a mortgage to secure their
Compiling a list of mortgage questions to ask potential lenders is just the beginning. According to NerdWallet, already knowing the answers you’re looking for puts you ahead of the game. Which type of mortgage is best for me? This question will help you know if you’re talking to just a producer (a salesperson) or a quality advisor. When you ask about
Navigating the purchase of a home can be overwhelming for first-time buyers, with lenders requiring a wealth of documentation of before granting a loan. And, of course, they also will require a credit check. Here, Zillow explains how many times a lender is likely to pull your credit during the purchase process and why. Initial check for pre-approval In the first phase
Changing jobs can affect your loan approval, but as long as you are moving from one position to another with equal or higher income, and you are able to provide documentation of your work and income history, any changes to your loan approval chances should be minimal. The most important thing for lenders and their underwriters is ensuring you can
For many people, the most daunting part of the home-buying process can be getting a mortgage. But it doesn’t have to be a difficult endeavor, even if you have never before gotten a mortgage. Here, The Motley Fool offers some simple moves to take before you apply to help ease the process along. 1. Begin early When a lender looks
Refinancing a home loan can cut your payments, let you swap an adjustable interest rate for a fixed one and put some cash in your hand from your equity. With all those benefits, it’s no wonder so many homeowners refinance their mortgages every year. Refinancing can be time-consuming, however, and you may have to pay some fees out of pocket even if you
Financial planners don’t just help people balance their budgets or plan for retirement; they also help their clients buy homes. After all, a house usually is the largest financial investment an individual will ever make—so, it makes sense that these professionals would have some strong opinions on just how to go about it. Here, Realtor.com offers some no-nonsense tips from top finance experts. 1. Calculate closing costs
It might be simple to pay off your mortgage earlier if you can afford it. But should you? That’s a complicated question. Homeowners with low mortgage rates may be better off putting extra money in a Roth IRA or 401(k), both of which might offer a higher return than paying off the mortgage. Then there’s the college aid factor. If
Thinking about applying for a home mortgage? Make no mistake, your credit score will matter. Here, Realtor.com discusses five credit score pitfalls to avoid to ensure that you get the best possible mortgage and interest rates 1. Too many inquiries Shopping around before choosing an institution for a car loan can help you find the best rate, saving thousands of
