Mortgage Applications Increasing in Texas

Posted on May 17, 2012 by Brian

For those who are considering buying a home, right now is the time to do it. Home interest rates are as low as they have ever been, and this is going to reduce your monthly payments, and make your property a great investment. The amount of mortgages that are being awarded is gradually increasing, which means that the housing market is turning around. If you want to get a home loan, you can start the process by filling out a Texas lending application with your bank, or with a home mortgage provider in the area.

There are many things that you’re going to need to include with the application for your home purchase loan. The lender is going to want verification of all of your different sources of income, and also your social security number. You will submit your W’2s, driver’s license and social security card commonly to be copied. The lender is going to look at your credit and income to determine what the best rate is for you, and what amount of money you’ll be able to responsibly pay back each month. There are also a few things that you can do before you fill out your mortgage application that can help you get approved. Continue reading →

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CoreLogic Home Prices Show First Increase in 10 Months

Posted on May 14, 2012 by Brian

CoreLogic’s Home Price Index, which was launched recently this March, suggests significant increase in house prices on a monthly basis for the first time ever in almost a year. The Home Price Index that estimates home prices, such as sales of distressed homes, have increased by a 0.6 percentage from the month of February that is recorded as the first significant improvement since July of 2011. However, the Index was down by a similar statistic from the Index on March of 2011. When distressed sales and purchases, composing of short sales and lender-owned property sales, are excepted, the monthly digits recorded was up for the third progressive month and was 0.9% greater as compared with the corresponding digits derived on March of 2011.

The national Home Price Index encompassing distressed sales have lowered down by up to 33.7% from its average number in April of 2006 up till present date. When distressed property purchases are removed from the equation, the average up till current alteration in the Home Price Index was -25%. Continue reading →

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Was Your Mortgage Denied? Re-Apply With A Different Lender

Posted on May 7, 2012 by Brian

Frustrated Texans who were recently denied a home loan can take heart, as several opportunities exist to gain approval of their mortgage application. The simplest alternatives involves simply re-applying with a good alternative lender or Texas mortgage company, while others involve researching the mistakes made on the borrower’s original application that cause them to fall short of the mortgage standards that would have led to a loan approval.

Re-applying with an alternative lending source can make it easier for the prospective borrower to avoid major pitfalls that caused the original application to be denied. Mortgage brokers tell applicants all the time about what those mortgage standards are, and this professional consultation usually results in improving the borrower’s profile upon resubmitting an application for loan approval. Very often, a bank denies the mortgage because the household applying is in the middle of a divorce, or has an unstable career history (less than a two year work history, or recent layoff). Continue reading →

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What is a Mortgage Guaranty Fee?

Posted on April 30, 2012 by Brian

A mortgage guaranty fee is a form of protection placed upon some types of mortgages. In the United States many mortgages are not held by the issuing bank. Instead, many banks will sell their mortgages to a new party. A mortgage guaranty fee is placed upon mortgages that are guaranteed by the federal government. By guaranteeing mortgage payments, the government is able support the mortgage markets. The mortgage markets are a large part of the American bond market. By guaranteeing these loans a sense of stability and trust is given to investors, allowing them to invest and help develop the American economy. After the crash of the housing market in 2007 this guaranty has been crucial in helping to restore confidence in the markets.

When a mortgage is created, the property owner agrees to pay a certain rate of interest. The loans states that within a given period of time, the interest and loan balance will be paid off. In order to increase competition and decrease the final cost of a loan, the U.S. government decided to created Fanny Mae and Freddie Mac. These two government agencies buy up mortgages from banks and keep them on the government balance sheet. Also, these government agencies function as a buyer of last resort. The government states that in the event that a given individual declares bankruptcy and stops the mortgage payments, the government will repay the loan. Corporations need a stable and secure environment in order to make projections and investments. Banks need stable interest payments to operate profitably. Continue reading →

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Owning A Home is Almost Always Better than Renting

Posted on April 26, 2012 by Brian

One of the biggest financial decisions a person will ever face is whether to buy a home or rent one. It is understandable that this is a huge decision as rent or mortgage payments are typically the largest single monthly expense a person has. Most every financial expert recommends buying a home. In fact, with record-low mortgage rates, more now than ever are recommending, if a person has the means, to buy a home. Very often paying a mortgage and applicable property taxes is cheaper than renting.

There are many reasons why purchasing a home is advised over renting. For starters, when a person rents a home they are spending money they will never see again. While that money disappears from the renter’s life forever it is being used to increase the net worth of the homeowner from whom they are renting. It is important to understand a home is an investment. For many people owning a home is the only investment they will make in their lifetime. The sooner a home is purchased the sooner that investment will grow. It is safe to say gaining equity in a home as its value increases is the single most important reason to buy versus rent. Continue reading →

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30-Year Mortgage Rate Rises Above Record Low

Posted on April 23, 2012 by Brian

Those who are looking to purchase a home may find their dream a little easier to obtain. The 30-year fixed mortgage rate rose to a new level of 3.95%. With recent lows and interest rates coming in at 3.5%, it left many wondering if the housing market would ever recover. Last week, these rates increased for the first time since May of 2010. The interest rates have been fluctuating and have hit all-time lows, but with the increase it leaves hope that things are financially improving, as far as the housing market is concerned.

When the mortgage rates are so low, lenders are less likely to mortgage those who have a score below a 640. The lenders can also be increasingly picky for those who are in the 600 range, because they need to know that this loan will not be another casualty of the housing market. In a good market, those with a 580 and above could purchase a home with no problems, even if it was with subprime lending. Rising rates are promising as it shows that recovery is beginning to take place. Continue reading →

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The FHA Has Programs for Homeowners in Need — But Will They Work?

Posted on April 19, 2012 by Brian

Ever since it was first created in 1934 to help homeowners hit by the Great Depression, the Federal Housing Administration has vastly expanded its services. For instance, after World War II the FHA helped veterans to pay for their homes. A large part of its work involves insuring mortgages, both for homes and for multifamily projects. Sine 1964, it has been under the authority of the Department of Housing band Urban Development. One of the FHA’s recent programs is the REO- to- Rental project designed to help non- FHA borrowers who have gone “underwater”— meaning that the FHA will refinance the mortgage, no matter how much the borrowers have lost, as long as they keep up their payments. (REO stands for “real estate owned” and refers to property which, as a consequence of a foreclosure or forfeiture, has passed into the hands of a lender.)

But will this and other programs actually work? After all, those who will be implementing and running them have a very rough task indeed ahead of them, and thus many industry professionals and legislators are not sure if the FHA is really up to such a huge challenge. The costs will be huge. Continue reading →

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FHA Loans Will Cost More

Posted on April 16, 2012 by Brian

As the housing market stabilizes, many more people are looking to FHA to get a loan. Unfortunately, FHA mortgages will become more expensive. This is based on a recent announcement by FHA that mortgage insurance premiums will increase. Changes are expected to go into effect on April 18th for new mortgages.

Annual FHA loan insurance premiums are expected to rise to 1.1 or 1.15 percent for 30-year mortgages. FHA loan mortgage premiums will rise to .5 percent for 15-year mortgages. Currently these same annual 30-year premiums are hovering at .85 or .9 percent. Annual 15-year loan premiums are at .25 percent. FHA mortgage insurance is required for any home buyer who offers a down payment worth less than 20 percent of the home’s purchase price. This will, therefore, affect the majority of FHA mortgage loans.

If a home owner is considering re-financing, he or she should do it quickly to lock in current rate schedules. The increase might account for $300 or more on a loan over the course of a year. The FHA accounts for about 20 percent of all residential mortgages; therefore, many people may be eligible to re-finance at the lower rate. Those with an FHA or other mortgage should find out more to make sure they don’t miss out on what it is sure to be the best deal available for some time. Continue reading →

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A New Home For Newlyweds

Posted on April 12, 2012 by Brian

When a person first gets married, naturally the next step would be to buy a home. In this economy, it is hard to know what to buy and how much to pay for it. The process of buying a home can be rough, but can be one of the most rewarding experiences a person ever goes through. One can ease the process by going into the whole thing knowing what to expect ahead of time.

There are so many companies out there to scam a first-time home buyer. Before a person decides on the realtor or mortgage lender, they must do some background checking. Most people do not go through the phone book and call the first listing they see. They talk to family, friends, and professionals they respect to get advice on finding the right people to work with. Having the right professionals backing a person up can make all the difference in the world when it comes to buying a home.

When a couple goes into purchasing a home, the financing is very important. This can be a rocky time as couples are just learning to combine their finances. Continue reading →

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The VA loan is a great opportunity for all veterans

Posted on April 9, 2012 by Brian

There is excellent news for people who qualify for a loan through the VA. These popular loans provide an excellent opportunity for military members to become homeowners. The VA loan was developed to help service men after world war two buy their first home. In 1944 President Roosevelt signed the GI bill and over the years many veterans have been able to buy a home. Each veteran can only use this option once and the property must be for their own personal use. No rentals or investment properties. The loans are made by private banks or mortgage companies with a guarantee that the loan will be covered by the VA through the GI bill if the veteran lets the property go into foreclosure.

In Texas these popular loans are flourishing. There has been a large increase in VA loans in the past year. Not only do they have a lower interest rate they require little or no down payment. This is excellent news for all the veterans that are returning from Middle East and wanted to get established by buying a first home. Over the next few years there will be many veterans using this loan option and it will help to boost the slow housing market. Continue reading →

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