Mortgage Tips For 2017

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As Yogi Berra once said, making predictions is hard, especially about the future.  And predicting mortgage rates is no exception to that.  While they were low throughout 2016, they spiked after the election, even if they’re still low.  In 2017, who knows what they’ll do?  Either way, whether you’re buying a home or refinancing, here are 10 mortgage tips for the new year, taken from an article I found online:

You can make a small down payment (or none at all): Some loan programs allow qualified people to buy homes with down payments as small as 3 or 3.5 percent, while others don’t have any down payments at all.  The Department of Veterans Affairs, US Department of Agriculture and Navy Federal Credit Union all offer zero-down mortgages.  

FHA gets you a loan, even if you have imperfect credit: One plus side of Federal Housing Administration-insured loans is that they’re available to even those with imperfect credit.  You need a credit score of 580 or higher to get an FHA-insured mortgage with a down payment as low as 3.5 percent.  

Hold onto some savings: Mortgage lenders want you to have savings “in reserve” so that you can take care of any unexpected expenses and not have to miss house payments.  Depleting your reserves is a major mistake that first-time homebuyers make.  

15-year loans allow you to save: Even if mortgage rates will most likely rise in the new year, some homeowners will want to refinance, possibly by refinancing into a 15-year loan.  These have a lower interest rate than 30-year loans, and interest is paid over a shorter period.  While the monthly payments are higher, the total interest paid over the life of the loan is less.  

Only borrow what you can repay: People who buy homes often “stretch” to make their initial monthly payments, thinking that their incomes will rise over time.  Yet it’s a much better idea to live within your means.  A good rule of thumb is that all of your monthly debt obligations shouldn’t exceed 36 percent of your income.  

Ask about no-closing-cost mortgages: Typical mortgages have thousands of dollars in fees, and paying these out of pocket often gets you the lowest interest rate you’re eligible for.  However, you might also want to accept a higher interest rate in exchange for the lender paying some or all closing costs.  No-closing-cost mortgages are generally more attractive to people that plan on selling their homes within a few years.  

Get a zero-down VA loan: About a quarter of active-duty military personnel don’t know that they’re eligible for Veteran Affairs-guaranteed loans.  They’re available to any honorably discharged veterans, those on active duty or those who have completed six or more years in the National Guard or selected Reserve units.  

Ask about cash-out refis: Cash-out refinances occur when the homeowner refinances the mortgage for more than what is owed, with the borrower pocketing the difference.  These were popular during the real estate boom of the early 2000s, although not as much after the housing bust.  Yet they’ve been making a comeback as home values have climbed.  

You might be able to refinance into a VA loan: If you’re eligible for a VA-guaranteed mortgage, you could possibly refinance from a conventional mortgage into a VA loan.  In many instances, you’ll be able to refinance for up to 100 percent of the home’s current value.  

Be patient during underwriting: Between when you apply for a mortgage and the time you close on the loan, keep your finances steady.  Yet that’s often easier said than done, especially for first-time homebuyers.  While the mortgage is going through the underwriting process, don’t charge up your credit cards or apply for new credit.  If any change occurs, it might delay your mortgage closing, and in drastic cases ruin your mortgage.  

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Giving Back This Season

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This is the season for giving, yet that often gets overshadowed by the blatant materialism that inevitably comes with this holiday.  One great way to move past that is to try and give back to the community.  I recently read a post online about several charitable activities you can do this year to spread the love.  I loved a lot of these ideas, so I thought I’d share a few of them with you:

Send cards to military servicemen and veterans: Members of the military make a huge sacrifice for their country, and sending festive cards is a great, simple way to show them how much we appreciate that sacrifice. You can send the cards through a local Red Cross chapter that participates in the Holidays for Heroes program, or check to see if the nonprofit A Million Thanks has a drop-off location near you.  

Collect donations for a food bank: Food banks distribute food to families and organizations that serve people in need, and you can help by either facilitating your own food drive or gathering cash and food donations to contribute to a food drive run by other organizations.  

Volunteer at a shelter: Even if you’re on a tight budget with your money, you can still donate your time by volunteering at a homeless shelter or women and children’s shelter by doing food prep or meal service.  This can be a gratifying and rewarding experience for the entire family.  

Donate old clothes: If your family has clothes or sheets, you can donate them to Goodwill or put them in a drop-off bin.  Just make sure that the drop-off bin accepts charitable donations, otherwise they might go to a for-profit group.  

Sponsor a family: Another great way to give back is to sponsor or adopt a family for the holiday.  This is often be facilitated by local religious and charitable groups, who collect the clothing sizes and wishlists of needy families.  It might be expensive, but you can always get a group of people to chip in for one family.  

Donate to Toys for Tots: This program created by US Marines collects and distributes new, unwrapped toys to families that can’t afford gifts.  It’s fun to get your children involved by having them pick out cheap toys they think another child will enjoy.  

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How to Get a Quick Mortgage

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Picture this: you’ve found the perfect real estate, and you’re ready to buy it that moment, but then you realize there’s a fatal flaw in your plan: you don’t have a loan!

Unfortunately, most sellers only accept offers from pre-approved buyers, and that’s not going to happen in the next twenty minutes.  But fortunately, there are steps you can take so you can make sure you get a loan as quickly as possible.  Here they are:

Shop for loans:  Start by visiting a local bank and searching for mortgage providers online.  A mortgage loan officer will give you an accurate estimate of all the closing costs and interest rates so you can be sure you are in the right state to start a mortgage and will prepare you for everything to come.  Keep your credit score in mind, but don’t try to worry about it too much when you’re shopping for loans.  Every inquiry isn’t going to hurt your credit score if you go about your searching in the right ways.  FICO, the Fair Isaac Corporation, will allow you to do all your shopping without making any hole in your credit score.  They do this by giving you a fourteen-day window to shop in; following a strict timeline is key to staying on track with your home-buying process.

Get a pre-qualification letter: During your mortgage shopping, be sure to ask your lender for this letter.  This should be easy to get, and gives a rough estimate of the size of the loan you are qualified to receive. Most lenders will assess your income, debts, and down payment size in order to get an accurate estimate, so be sure to tell them the truth.  Remember, taking out a loan from the same person who gives you a pre-qualification letter is not required.

Get pre-approved: This means that the lenders will verify everything you’ve said to them.  Make sure you have all your documents ready – your identification, social security cards, proof of income, assets and employment – when you come to this step.  That way, you don’t waste any time going back and forth from the lender’s office.  Then a credit report will be pulled, given that you have stable employment and no debt, so that your pre-approval is certified.  If there are complicated factors, like if you own several houses, have had a divorce, or are in a lot of debt, this process will take more time.

Get your loan-approval finalized:  Now you’re ready to make an offer.  This appraisal is official verification that you are eligible and that the market value on the home is reasonable.  Once the appraiser makes his or her inspection and decision, the approval will come within two days.  After this, if the decision is approved and not rejected, you are finally ready to start packing up and moving into your new place!

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How to Get a Quick Mortgage

Picture this: you’ve found the perfect real estate, and you’re ready to buy it that moment, but then you realize there’s a fatal flaw in your plan: you don’t have a loan!

Unfortunately, most sellers only accept offers from pre-approved buyers, and that’s not going to happen in the next twenty minutes.  But fortunately, there are steps you can take so you can make sure you get a loan as quickly as possible.  Here they are:

Shop for loans:  Start by visiting a local bank and searching for mortgage providers online.  A mortgage loan officer will give you an accurate estimate of all the closing costs and interest rates so you can be sure you are in the right state to start a mortgage and will prepare you for everything to come.  Keep your credit score in mind, but don’t try to worry about it too much when you’re shopping for loans.  Every inquiry isn’t going to hurt your credit score if you go about your searching in the right ways.  FICO, the Fair Isaac Corporation, will allow you to do all your shopping without making any hole in your credit score.  They do this by giving you a fourteen-day window to shop in; following a strict timeline is key to staying on track with your home-buying process.

Get a pre-qualification letter: During your mortgage shopping, be sure to ask your lender for this letter.  This should be easy to get, and gives a rough estimate of the size of the loan you are qualified to receive. Most lenders will assess your income, debts, and down payment size in order to get an accurate estimate, so be sure to tell them the truth.  Remember, taking out a loan from the same person who gives you a pre-qualification letter is not required.

Get pre-approved: This means that the lenders will verify everything you’ve said to them.  Make sure you have all your documents ready – your identification, social security cards, proof of income, assets and employment – when you come to this step.  That way, you don’t waste any time going back and forth from the lender’s office.  Then a credit report will be pulled, given that you have stable employment and no debt, so that your pre-approval is certified.  If there are complicated factors, like if you own several houses, have had a divorce, or are in a lot of debt, this process will take more time.

Get your loan-approval finalized:  Now you’re ready to make an offer.  This appraisal is official verification that you are eligible and that the market value on the home is reasonable.  Once the appraiser makes his or her inspection and decision, the approval will come within two days.  After this, if the decision is approved and not rejected, you are finally ready to start packing up and moving into your new place!

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Essential Mortgage Facts

Many people are blindsided by their mortgage loans’ terminology.  This is the reason millions of people were in debt after the severe housing bust a few years ago.  Yet still, buyers are not aware of everything they should know about financing a home, including the terms used in documentation.

A recent study by Zillow surveyed homeowners about their knowledge on mortgages.  The results revealed that many of these homebuyers did not know the answer to the most simple mortgage questions.  To make sure you know your basics, and do not fall into the rut that the majority of homeowners are in, here are some extremely important facts that you should know about your own mortgage:

Mortgage rates are always rapidly changing: A common misconception is that these mortgage rates are consistently stable – this couldn’t be any farther from the truth.  Just like bonds, stocks, and other financial investments that rise and fall throughout time, mortgage rates are included within a similar market force.  This results in daily change, from afternoon to evening.

APR measures mortgage costs: Along with interest, you must upfront origination fees, closing costs, and other mortgage points you have encountered in order to get an accurate estimate in the cost of your loan.  The APR gives you a better idea about which comparisons to make between lenders.  Remember, APR means “annual percentage rate.”  Costs of a mortgage loan is usually more complicated than people anticipate.

Refinancing is a possibility even if you’re in a financial crisis: Generally, during crises, homeowners find themselves owing more money on their mortgages than their homes were originally worth.  This often leads to finding it very difficult to take advantage of interest rates and refinancing their homes.  Fortunately, through the Home Affordable Refinance Program, many people have successfully found ways to refinance their mortgages and profit financially even when times are rough.  Of course, this varies on the situation, but always know that refinancing is an option.

Different lenders charge various rates and fees: This means you should do some lender shopping before letting someone handle your mortgage loans.  It’s important to note that there is no federal regulation that requires lenders to offer the same rates on mortgages, you should be aware of price tags and chargers, especially if they seem out of the ballpark.

Keep in mind that low-down-payment loans are available: Most people struggle when it comes to putting twenty percent toward a down payment, but certain loan programs are there to help you get financing with little to no money down.  If you ever find yourself in a tight-budget situation when it comes to down-payments, know that low-down-payment loans are there to help you.

Most importantly, for any homebuyer to be knowledgeable about their own mortgage, you must keep your eyes open and your ears peeled.  Being aware is vital, and knowing these five facts will help you understand many of the simple things that homebuyers don’t usually pay attention to.

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Essential Mortgage Facts

Check out Joe Raquiza’s newest blog post!

Many people are blindsided by their mortgage loans’ terminology.  This is the reason millions of people were in debt after the severe housing bust a few years ago.  Yet still, buyers are not aware of everything they should know about financing a home, including the terms used in documentation.

A recent study by Zillow surveyed homeowners about their knowledge on mortgages.  The results revealed that many of these homebuyers did not know the answer to the most simple mortgage questions.  To make sure you know your basics, and do not fall into the rut that the majority of homeowners are in, here are some extremely important facts that you should know about your own mortgage:

Mortgage rates are always rapidly changing: A common misconception is that these mortgage rates are consistently stable – this couldn’t be any farther from the truth.  Just like bonds, stocks, and other financial investments that rise and fall throughout time, mortgage rates are included within a similar market force.  This results in daily change, from afternoon to evening.

APR measures mortgage costs: Along with interest, you must upfront origination fees, closing costs, and other mortgage points you have encountered in order to get an accurate estimate in the cost of your loan.  The APR gives you a better idea about which comparisons to make between lenders.  Remember, APR means “annual percentage rate.”  Costs of a mortgage loan is usually more complicated than people anticipate.

Refinancing is a possibility even if you’re in a financial crisis: Generally, during crises, homeowners find themselves owing more money on their mortgages than their homes were originally worth.  This often leads to finding it very difficult to take advantage of interest rates and refinancing their homes.  Fortunately, through the Home Affordable Refinance Program, many people have successfully found ways to refinance their mortgages and profit financially even when times are rough.  Of course, this varies on the situation, but always know that refinancing is an option.

Different lenders charge various rates and fees: This means you should do some lender shopping before letting someone handle your mortgage loans.  It’s important to note that there is no federal regulation that requires lenders to offer the same rates on mortgages, you should be aware of price tags and chargers, especially if they seem out of the ballpark.

Keep in mind that low-down-payment loans are available: Most people struggle when it comes to putting twenty percent toward a down payment, but certain loan programs are there to help you get financing with little to no money down.  If you ever find yourself in a tight-budget situation when it comes to down-payments, know that low-down-payment loans are there to help you.

Most importantly, for any homebuyer to be knowledgeable about their own mortgage, you must keep your eyes open and your ears peeled.  Being aware is vital, and knowing these five facts will help you understand many of the simple things that homebuyers don’t usually pay attention to.

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Getting Involved in Your Community

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Getting involved in your local community is beneficial both to yourself and the community you’re serving.  It offers a sense of connection, solidarity and strength as you participate in an event that directly involves your neighborhood.  Here are seven way that you can get involved in your community, taken from an article that I found online:

Look for local events: Pay attention to local news announcements.  Whether it’s a music and arts festival, a local dance performance or a special presentation, keep your eyes open.

Volunteer your time: There are all sorts of ways for you to volunteer your time.  You could, for example, volunteer as a dog walker for your local animal shelter, volunteer to read to the elderly at a retirement home, the opportunities are endless.  Simply reach out to an organization you like and ask them what you can do.  

Donate your resources: If you’re too busy to volunteer, then you can still donate.  You don’t have to donate money, you can donate clothes, food, bed linens, books, cleaning supplies and household goods, among other things.  Your local Goodwill, homeless shelter, food bank, library or animal shelter will all appreciate the donations.

Shop locally: Buy from local vendors whenever you can.  This is a small way to contribute to local businesses and stimulate the economy.  

Join a class or group: By joining a class or group, you get a chance to meet like-minded people you may never otherwise meet.  Most towns have plenty of groups for runners, bikers and other outdoor activities.  Not only is it a great way to meet people, but also to stay in shape!

Support your local sports teams: I can tell you from experience that this is particularly rewarding.  You might not know how many sports teams are around.  Whether it’s Little League, high school and college sports teams or a Minor League team, chances are it’s a lot cheaper and intimate than going to a Mariners or Seahawks game.  Players play because they love the game, and seeing fans supporting them in the stands makes a huge difference.

Organize your own event: Even if you don’t feel qualified enough to host a music and arts festival, you can still team up with some friends and organize a fun event.  Maybe a special kids’ event or a car wash to raise funds.  

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Joe Raquiza’s latest blog post!

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Welcome!

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Hello, and welcome to Joe Raquiza’s mortgage lending blog!  Stay tuned, because there’s plenty more to come!

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