How to Use a Mortgage to Buy a Home After Going Through a Bankruptcy

How to Use a Mortgage to Buy a Home After Going Through a BankruptcyWhile it is sometimes the best option to get your finances repaired, the bankruptcy and following discharge period can be tough. However, while it may delay things for a couple of years, the good news is that even a bankruptcy won’t stop you from borrowing a mortgage to buy a home. In today’s article, we will share some insight into how you can get a mortgage loan after going through bankruptcy.

Step 1: Get A Professional Credit Assessment

Once your Chapter 7 or Chapter 13 bankruptcy has been discharged, you will be required to wait for at least two years before you’re able to take out a mortgage. During this time, it is a good idea to sit down with a credit professional and get an assessment. Individuals and families with a bankruptcy on their credit file are going to go through a bit of extra scrutiny when taking out future loans. So spend a bit of time working on cleaning up your credit.

Step 2: Figure Out Your Monthly Budget

As you move closer to buying a home, you will want to start living off of a monthly budget. This will help to ensure that you are always prepared for your monthly mortgage payments and aren’t left short of cash when payment time comes. A budget can be as simple as a spreadsheet listing your monthly sources of income and expenses. Alternatively, you can use iPhone or Android apps which help to make budget tracking easier.

Step 3: Get Your Down Payment Saved Up

You will also need to start saving for the down payment that you’ll place on your home. The amount that you will need depends on a variety of factors including the city you’re buying in, the size of the home and much more. If you’re unsure about this, contact us and we’ll share some insight.

Step 4: Maintain Your Spending Discipline Until It’s Buying Time

Finally, it’s worth noting that you will need to be very disciplined in the period between your bankruptcy discharge and your mortgage application. Your credit report has to stay clean so that your mortgage lender does not doubt your ability to pay.

Don’t get discouraged if you have some work ahead of you to get your credit repaired. With a little time and effort, you can put your bankruptcy behind you and move on as a happy homeowner. To learn more about the financing process and to discuss your options, contact our team of mortgage professionals today. We’re here to help.

Upgrading Your Home? 5 Great Reasons to Make the Switch to Hardwood Floors

Upgrading Your Home? 5 Great Reasons to Make the Switch to Hardwood FloorsAre you tired of scouring the internet, trying to find the secret recipe for whatever will take stains out of your carpet? And the irritating annual steam cleaning ritual where your whole home is soaking wet for a couple of days? Ugh. If your old carpet has you down, it might be time for a change. In today’s blog post we’ll share five great reasons why you’ll want to make the switch from carpet to hardwood floors.

Your Home Will Look Amazing

Let’s face it. Unless you have a serious appreciation for all things shag, hardwood floors look much better than carpet. Available in a variety of colors and grains, hardwoods add a natural element to any room. They give off a much warmer appeal than carpet as well, especially when polished.

They’re Much Easier To Keep Clean

Spill on the floor? No problem. Pet has an accident? Rest easy. Hardwood flooring is far easier to keep clean than any form of carpeting. Your floor won’t absorb liquids and solids won’t leave a mess.

They’re A Great Equity-Building Investment

Hardwood floors are an excellent investment in your home. Some studies show that up to 75 percent of the cost will be returned when the house is sold, which puts hardwoods high on the list of equity-building renovations. Also, many home buyers are specifically looking for houses with hardwood flooring. So when you do choose to sell, your home may sell that much faster.

They Last Longer Than Carpets

The next time you are over at a friend’s house, take a look at their floors. Many homes have hardwood flooring that has been around for decades, requiring only the occasional refinishing to restore its former shine. Hardwoods last much longer than carpets and won’t require a full “rip and replace.”

Your Allergies Will Thank You

Finally, if you or any of your family members suffer from allergies, hardwood floors may be the answer. Carpets collect dust, which can lead to the formation of dust mites and other allergens. And while you can vacuum them regularly, only the very best vacuums have enough suction to get deep into the carpet fiber to remove this gunk.

These are just five of the many good reasons to invest in hardwood flooring for your home. If you’re in the market for a great new home, contact your trusted mortgage professional. We will be happy to show you some great local opportunities.

Four Mistakes to Avoid When Making an Offer for Your Dream Home

Four Mistakes to Avoid When Making an Offer for Your Dream HomeYou’ve scoured the new home listings, been to all the open houses and have finally found the home of your dreams. It is now time to draft an offer and begin the negotiation process. Below we’ll share four mistakes that you will want to avoid when making an offer on your dream home.

Mistake #1 – Not Working With A Professional

The first mistake that home buyers make is trying to buy a home without using the services of a real estate professional. Buying a home is a significant financial transaction and one where the seller and their agent are working hard to ensure they come out ahead. Having experienced representation on your side of the table ensures that you won’t be taken advantage of.

Mistake #2 – Skipping The Home Inspection

The second mistake – and one that is more common than you think – is skipping the home inspection. There are countless instances of home buyers thinking that the house looks great on the outside without realizing that there are issues with the roof, the foundation, the plumbing, inside the walls or some other area that’s tough to see. Having the house professionally inspected before tabling an offer ensures that issues are fixed up before the transaction is complete. Alternately, if you’re willing to move ahead regardless, you can ask for the price to be reduced as compensation.

Mistake #3 – Not Being Pre-Approved For Financing

The third mistake in our list is making an offer on a home without being pre-approved for the amount of mortgage financing you will need. Regardless of how good your credit is, the mortgage application process is one that can present challenges. Also, many home sellers will require evidence of financing pre-approval before accepting an offer, so it’s best to come prepared.

Mistake #4 – Taking On Other Debts

Once you’ve decided on the home you want to purchase, you will want to avoid taking on any other debts which can affect your credit score. Don’t buy a car, open any new credit cards or do anything else which will show up on your credit report. Once you are pre-approved for your mortgage, you’ll want to keep your credit as spotless as possible to ensure that nothing goes wrong.

If you’re prepared and clear-headed, the offer process will go smoothly and you’ll soon be moving into your dream home. When you’re ready to explore financing options, contact your trusted mortgage professional.

Real Estate Negotiations: 3 Tricks That You Can Use to Ensure Yours Is the Winning Bid

Real Estate Negotiations: 3 Tricks That You Can Use to Ensure Yours Is the Winning BidYou’ve toured through a number of listings, attended all the open houses and have found your potential new dream home. Now the hard part begins, especially if you’re working against other buyers who are keen on getting the same home as you. Let’s take a look at three tricks that you can use to make sure the bid you submit on a home is the one that wins.

Don’t Start With A Lowball Offer

First, it’s important to note that the offer itself needs to be a fair one. If you approach a home seller with a low offer, you’ll likely discover that they’re not too interested in accepting it. Even worse, if your offer is too low, you risk the seller feeling insulted. And that might prevent you from being able to counter with a higher price to be more competitive. Instead, consider bidding on the low end of a reasonable, fair price range as your starting bid. That way the seller knows that you’re serious and is more willing to entertain the conversation.

Let A Real Estate Agent Handle It

If you want to make an offer that a seller can’t refuse, you’ll want to work with a real estate agent. An experienced agent that has helped dozens of buyers with the purchasing process will have critical knowledge that will be useful in making the right bid. Plus, if you end up receiving a counter-offer from the seller, an agent can assist you with understanding the terms and touching up your bid to get the deal done.

Keep Your Cool And Be Ready For The Counter

Speaking of counter-offers, you’ll want to ensure that you keep an open mind when it comes to negotiating with the home seller. Unless your offer is close to or over the listing price, the seller is likely to counter your opening bid. This is normal and is a sign that they’re interested, so from here it’s your job to ensure that you sweeten the deal just enough that they’re willing to close.

These are just a few of the ways that you can ensure that the bid you make on a home is the one the seller accepts. For more tips and insight, contact your trusted mortgage professional today. We look forward to connecting!

What’s Ahead For Mortgage Rates This Week – October 2, 2017

Last week’s economic reports included Case-Shiller’s Home Price Indices, readings on new and pending home sales and Freddie Mac ‘s weekly mortgage rates report. Weekly jobless claims and reports on inflation and core inflation were also released.

CaseShiller Home Prices Rise in July; New and Pending Home Sales Lower in August

According to Case-Shiller July Index reports, national home prices rose at a rate of 5.8

90 percent on a seasonally-adjusted annual basis as compared to June’s reading of 5.80 percent. The top three cities in the 20-City Home Price Index were Seattle, Washington, Portland, Oregon and Las Vegas, Nevada.

Home prices are responding to high demand for homes and limited inventories of homes for sale. Although this trend has persisted in the last few years, lower readings for sales of new homes and pending home sales were lower in August. Analysts said this could indicate that home prices are topping out due to affordability and few homes for sale.

New home sales fell to 560,000 on a seasonally-adjusted annual basis in August as compared to July’s reading of 580,000 sales. While real estate pros and economists look to pending home sales as an indicator for future closings and mortgage originations, August’s reading slipped lower into negative territory with a reading of – 2.60 percent. July’s reading for pending home sales was – 0.80 percent.

Mortgage Rates Stay Flat, New Jobless Claims Rise

Freddie Mac reported no change in average fixed mortgage rates. 30-year fixed rate mortgages had an average rate of 3.83 percent and 15-year fixed rate mortgage rates held steady at an average of 3.13 percent. The average rate for a 5/1 adjustable rate mortgage rose by three basis points to 3.20 percent. Discount points averaged 0.60 percent for 30-year fixed rate mortgages and 0.50 percent for 15-year fixed rate and 5/1 adjustable rate mortgages.

First-time jobless claims rose by 12,000 to 272,000 claims. Analysts expected 270,000 new jobless claims; 260,000 new claims were filed the prior week.

Inflation rose by 0.10 percent in August, which matched expectations and was lower than July’s growth rate of 0.30 percent. Core inflation, which excludes volatile food and energy sectors, was unchanged at 0.10 percent and fell short of expectations of 0.20 percent growth in August.

Consumer sentiment fell to an index reading of 95.10 percent and met analysts’ expectations based on August’s reading of 95.30

Whats Ahead

Next week’s scheduled economic reports include readings on construction spending and labor-sector reports from ADP Payrolls, Non-Farm payrolls and the national unemployment rate for September. Weekly readings on mortgage rates and new jobless claims will also be released. 

5 Key Maintenance Tasks to Prepare Your Home for the Winter

5 Key Maintenance Tasks to Prepare Your Home for the WinterThe days are getting shorter, the temperature is dropping and the kids are heading back to school. The approach of autumn means that winter is just around the corner. The question is – is your home ready? Break out your checklist and let’s run through five key maintenance tasks that will get your home prepared to face the winter.

Pack Up And Protect Your Outdoor Furniture

Unfortunately, the arrival of winter means that the patio has to be closed up for the season. It’s time to get chairs, tables and other furniture covered up or stored if you have space. The BBQ will also need to be covered or moved off to the shed or another dry area.

Get Your Windows Ready For Cold Weather

Next, take some time to inspect your windows for drafts, leaks and other issues. This can be as easy as shutting them tight on a windy day and using your senses to determine if any air is leaking in. Depending on where you live in the country, you might need to do some additional work on your windows to get them prepared for the cold.

Turn Down Your Garden, Plants And Flower Beds

Unless you have a garden full of robust, cold-loving plants, it’s likely that you will see most of them die off as we move from autumn into winter. Spend some time turning down your gardens and other areas. This can help to move nutrients into the soil where they’ll be ready to nourish new plants in the spring.

Check Your Furnace And Heating Ducts

If you haven’t used it in a few months, now is the time to fire up the furnace and check the home’s heating system. The last thing you want is to discover that your home isn’t heating on the first cold night!

Consider Giving The Roof And Gutters A Quick Inspection

Last but not least, don’t forget to check your roof for any damage or areas that might be prone to leaking. You will also want to check the gutters to ensure they are clear of debris. Keep in mind that this does involve climbing up a ladder and physically inspecting these areas. If you’re not good with heights or don’t own the proper equipment, don’t sweat it. Give a professional roofing team a call and have them handle the inspection instead.

The better your home is prepared for winter, the less likely you are to have a nasty surprise waiting for you in the spring. If you would rather upgrade or check out a newer home than try to winterize yours, contact your local real mortgage professional to get started.

Pay Your Mortgage Off Faster With These Money-Smart Strategies

Pay Your Mortgage Off Faster With These Money-Smart StrategiesAs with any loan or line of credit, there are benefits to getting your mortgage paid down. You’ll pay less in interest, potentially saving thousands over the repayment period. Moreover, you’ll own your home outright that much quicker.

Let’s explore four money-smart strategies that will help you to pay your mortgage off faster.

Start With The Obvious And Increase Your Payments

It won’t come as a surprise that one of the easiest ways to get your mortgage paid off is to increase the amount you put towards your monthly payments. Most lenders will allow you to place any extra funds directly against the outstanding loan amount or “principal.” This is very efficient as it avoids having to commit any additional funds to interest.

One trick that many families use is to round the payment amount up to the nearest hundred-dollar figure. For example, if your mortgage payment is $652.32, you would pay $700 instead. This might be an easy burden on your wallet but still amounts to an extra seven percent of your payment.

Accelerate Your Payment Schedule

Another way to get your mortgage paid off as quickly as possible is to accelerate how frequently you make payments. For example, if you are currently making payments on a monthly basis, you can switch to bi-weekly payments instead. This means that instead of 12 large payments per year, you’re making 26 smaller payments. However, your interest will still compound on a monthly basis which means that over time you’ll end up paying less in interest. Not all mortgage products support this, so it is best to check with your mortgage professional to ensure it is an option open to you.

Dedicate Your Tax Refund To Your Mortgage

If you receive a tax refund or other large sum of money, consider using it to pay your mortgage down further. This is an excellent use for a spare block of cash as it gets you one step closer to owning your home, free and clear.

Refinance Your Mortgage To A Shorter Term

Finally, one last strategy is to look at a shorter term for your mortgage. For example, if you started with a 30-year amortization, you can refinance down to a 15-year loan instead. This will require having access to significantly more money to place against your payment, so be sure to carefully budget for this additional cost.

These are just four of the many ways that you can get your mortgage loan paid off faster. For more information or to inquire about a mortgage for your next home, contact us today. Our professional team is happy to share additional strategies that can have you owning your dream home in no time.

Case-Shiller: Home Prices Higher in July, Home Prices May Have Peaked

Case-Shiller reported higher sales of new homes for July; the national reading for new home sales increased by 0.10 percent to a seasonally-adjusted annual rate of 5.90 percent. The 20-City Home Price Index rose by 0.20 percent to 5.80 percent on a seasonally adjusted annual basis.

Seattle Washington held the top spot in the 20-City Index with a growth of 13.50 percent year-over-year. Seattle home prices are growing faster than home prices in Portland Oregon, which reported a year-over-home price growth rate of 7,60 percent. Dallas, Texas lost its third-place standing in the 20-City Index to Las Vegas, Nevada, which reported 7.40 year-over-year growth in home prices. Dallas, Texas and Detroit, Michigan tied for fourth position with 7.30 percent home price growth.

David M. Blitzer, managing director and chair of the S&P Case Shiller Home Price Index Committee, said that the Pacific Northwest largely drove July home prices,12 of 20 cities surveyed reported higher home prices in July. Home prices rose to their highest level since May 2009 but were selling for less than half of what new homes sold for in 2009.

Home Prices Rise, Falling Sales Suggest Prices May Have Peaked

High demand for a limited number of available homes continued to cause home prices to rise, but home sales fell in July. Three of four regions reported lower sales with the Midwestern region sales volume unchanged. Low inventories of homes for sale have increased competition among homebuyers; this creates bidding wars that cause artificially high home prices in high-demand markets.

In related news, The Commerce Department reported that new home sales fell by 3.40 percent in August. The inventory of homes on the market rose from a 5.70month supply to a 6.10month supply of homes for sale. Real estate pros consider a six-month supply of homes for sale a good balance between homes on the market and active home buyers. Increasing inventories of homes for sale suggests that home prices could be peaking as home buyers face strict mortgage rules and affordability concerns.  

Hurricanes Harvey and Irma impacted 14 percent of building permits issued in 2016. While building permits issued may increase, ongoing concerns over labor shortages and building materials costs could become more pronounced as rebuilding in the hurricane zones progresses.

Did You Know: Your Choice of Community Will Impact Your Mortgage – Here’s How

Did You Know: Your Choice of Community Will Impact Your Mortgage – Here's HowIf you are in the market for a new home, you’ve probably begun the process of choosing the neighborhood or community in which you want to live. The perfect spot to call home will depend on your age, the size and composition of your family, your working life and other factors. However, one thing you may not know is that the community you choose to live in can also impact your mortgage. In today’s post, we’ll explore how the local area in which you live can affect your mortgage financing and interest rate.

Lender Pricing Varies By State

As you might imagine, the mortgage market is subject to a variety of legal rules and regulations. These laws vary from state-to-state, which means that they affect mortgages differently depending on where you live. All lenders have slight differences in their pricing depending on where you’re going to live.

Also, if you are looking to buy in a rural area which isn’t close to a major city, that can affect your mortgage as well. Some lenders might not service rural areas in your state, so you won’t be able to access their mortgage products. Price is another factor that can change your mortgage. If you are buying a home in a popular or luxurious community, that will drive the price up.

Is The Local Market Hot Or Cold?

Don’t forget that the pace of the local housing market may impact your mortgage as well. For example, if fewer new homes are being built or added to the local inventory, you may find that scarcity is causing prices to increase. Conversely, if no new homes are being built because there is no demand, prices are likely to be trending downward. 

In closing, it is important to remember that the community you choose to live in is one where you could find yourself situated for decades. Your mortgage interest rate should be less of a concern than ensuring you have access to great amenities, quality schools, and a safe environment. To learn more about mortgage costs in your community of choice, contact our professional team and we’d be happy to help.

What’s Ahead For Mortgage Rates This Week – September 25th, 2017

Last week’s economic news included readings on housing starts, building permits issued and sales of pre-owned homes. The Fed’s Federal Open Market Committee issued its customary post-meeting statement and Fed Chair Janet Yellen gave a press conference. Weekly readings on mortgage rates and new jobless claims were also released.

Housing Starts Lower, but Building Permits Increase

August saw fewer housing starts with 1.18 million starts on a seasonally-adjusted annual basis. July’s reading was upwardly adjusted to 1.19 million starts; analysts expected 1.175 million starts annually in August. Building permits rose in August, which suggested builder confidence was strong regardless of fewer starts.

Recent hurricanes had little effect on August building permits, but building permits will likely increase as rebuilding gets under way in affected areas. 1.30 million building permits were issued on an annual basis as compared to July’s reading of 1.23 million permits issued. August’s reading for permits issued was the second highest since 2007.

Analysts noted that more permits were issued for single-family residences than for multi-family complexes. This is likely a response to high demand for single-family homes caused by persistent shortages of homes for sale. Multi-family permits issued fell by 5.80 percent in August with 323,000 permits reported. August’s reading for multi-family housing permits was 23 percent lower year-over-year.

PreOwned Home Sales Dip, Fed Holds Steady on Federal Funds Rate

Sales of previously-owned homes fell to a seasonally-adjusted annual rate of 5.35 million sales in August. Analysts expected a reading of 5.44 million sales, which matched July’s seasonally-adjusted annual reading of 5.44 million sales of previously-owned homes. High demand and very low inventories of homes for sale has caused sales to fall although very low unemployment rates and relatively low mortgage rates were positive indicators for would-be home buyers.

The Federal Reserve’s Federal Open Market Committee announced it did not raise the current federal funds rate of 1.00 to 1,25 percent. Fed Chair Janet Yellen remarked that “the basic message here is U.S. economic performance has been good.” The Fed was puzzled by sluggish inflation and revised its long-term inflation goal from 3.00 percent to 2.80 percent. The Fed is expected to raise its target federal funds rate one more time in 2017 and twice in 2018; this prediction may change if economic forecasts and world events change significantly.

Mortgage Rates Rise, New Jobless Claims Fall

Mortgage rates rose last week in response to the 10-year Treasury rate rising by seven basis points. The average rate for a 30-year mortgage rate rose five basis points to 3.83 percent; the average rate for a 15-year fixed rate mortgage rose five basis points to 3.13 percent. The average rate for a 5/1 adjustable rate mortgage rose four basis points to 3.17 percent. Discount points averaged 0.50 percent for fixed-rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

New jobless claims were lower with 259,000 new claims filed. Analysts expected a reading of 302,000 new jobless claims based on the prior week’s reading of 282,000 new jobless claims filed.

Whats Ahead

This week’s scheduled economic reports include readings on new and pending home sales, personal income, and inflation. Weekly readings on mortgage rates and new jobless claims are scheduled along with a monthly reading on consumer sentiment.