Will the New FHA Mortgage Premiums Steer More Buyers Your Way?

New FHA Mortgage Premiums“Buying a home has always been about more than owning a roof and four walls. It’s about investing in savings and building a family and planting roots in a community….Were going to start this week laying out some of the agenda for the next year. And here in Phoenix, I want to talk about helping more families afford their piece of the American dream, and that is owning their own home.”

– Barack Obama

During his speech on January 7, 2015, President Obama announced his plans to make achieving the American Dream a more reachable goal for first time buyers. In case you’ve missed the recent buzz, there will be some significant improvements to mortgage loans backed by the Federal Housing Administration in the near future. Continue reading

Mortgage Rates Hit an Unexpected Annual-Low for 2014!

Mortgage Rates Hit Unexpected Low for 2014 with Homes.comWhether you want to consider unemployment levels, international crises or even consumer spending, there are a lot of factors that can affect mortgage rates. So to say the least, it can hard task to accurately predict the teeter-tottering cost of financing a home. At the beginning of 2014, even the most experienced economists would have told you that mortgage rates were going to witness notable increases throughout the year. In fact, some predicted that we could expect to see a 30 Year Fixed mortgage hit 5% by the end of the year. Despite all the data supporting these claims, here we are at the beginning of September and mortgage rates are at the lowest level of the entire year!

According to Freddie Mac’s most recent Primary Mortgage Market Survey, expectant homebuyers will be glad to hear that 30 year fixed mortgage rates are sitting at 4.10% for the second week in a row! What may come as a surprise is that these rates are lower than the 4.12%, which marked the year’s previous low. Also, 15 year fixed rates are at 3.23% and 5 year adjustable rates are at 3.01%, both of which are the lowest of the year. Continue reading

Will Closing the Doors on Fannie Mae and Freddie Mac Impact Your Clients?

Fannie and Freddie Closing DoorsFannie Mae and Freddie Mac currently back well over half of all new mortgages, but this could be coming to an end. Last month, leaders of the Senate Banking Committee unveiled a bipartisan plan that would shut the doors on Fannie and Freddie. The plan proposes that Fannie and Freddie, who guarantee and issue mortgage-backed securities, will be replaced by a hybrid public-private finance system. Continue reading

Help First-Time Buyers Understand the Mortgage Language

handling mortgage related lingoObtaining a mortgage can be long and somewhat confusing, especially for first-time homebuyers. As a real estate professional, you’re well aware of the industry jargon that comes along with the process and it’s your job to clarify any questions these ‘first timers’ may have about it along the way. Review this list of handy key terms and share them with your clients to keep them up-to-date on everything going on during the financing process. Continue reading

Mortgage Checklist: Help First-Time Buyers Understand the Mortgage Process!

Before your clients can start hunting for their home, they must determine how much house they can afford. As a real estate professional, you know better than anyone the obstacles that many potential buyers face when trying to obtain a mortgage. This is especially true for first-time buyers who may already be overwhelmed by the idea of making the biggest financial decision of their lives. The good news is that they have you, the local expert, to navigate them through this uncharted territory. And the even better news is that  Homes.com has created a customizable mortgage checklist for you to share with these first-timers.

Helping your clients ‘prequalify’ for a loan will provide them with a better idea of how much money they have to work with and demonstrate to sellers that they’re serious about purchasing a home. There are many factors that affect how much a buyer can be prequalified for, so it’s critical they understand what these factors are and their significance.

The “First-Time Homebuyer Mortgage Checklist” identifies four key areas that are considered by creditors when evaluating a person’s financial situation: Income, Assets, Credit and Employment. To help prospective buyers get a better handle on their finances before applying for a loan, each of these key areas contain their very own checklist to ensure every base has been covered.

Here’s a sneak peek into the type of information home buyers will find in this valuable resource:

Income: Highlights what forms of income must be present to qualify for a loan

– Qualifying income, rental income, social security, etc.

Assets: Identifies what resources can be used for a down payment

– Savings/Checking accounts, stocks and bonds, employer assistance programs, etc.

Credit: Provides different types of loans and their required credit scores

– FHA Loans: can be approved with a credit score of 580

Employment: Shows what employment history is required for approval

– Employment history of at least 2 years

As you can see, this checklist provides details into areas that many first-time buyers may overlook when seeking a loan for their first home. Providing this helpful checklist to prospective buyers will demonstrate that you know the ins and outs of the home buying process, proving once again why you are the local expert!

What’s even more important is that this checklist is editable to include your own branding information, so when the day comes that your client has been pre-approved to buy their first home, they’ll remember you helped make it possible. Simply download the “First-Time Homebuyer Mortgage Checklist,” add your branding information and print or save it to email to your networks!

Looking for more valuable resources like this? From financial advice to preparing a home for the changing seasons, Homes.com offers a library of consumer resources that can help guide local buyers and sellers through every step of the home buying process or improve life in their current home.