Whether you're embarking on the process of obtaining a mortgage for the first time or just preparing yourself for the advances in the industry, the implementation of automated underwriting in recent years has significantly changed the application process. From the time you'll have to wait to the documentation that is required, here are some of the details on what you can expect when dealing with an automated underwriter. Reduction In Document Requirements In the past, most homebuyers submitting mortgage application documents were required to go into their backlogs to provide the paystubs for the previous 2 months pay, as well as W2's for the last 2 years. Now, with automation, most … [Continue Reading...]
If you have recently purchased a house, you have probably taken a look at your mortgage statement and noticed that the majority of your first few payments are going toward interest. You do not start paying down a significant amount of the principal until later in your mortgage cycle. If you start to make more money, you might be interested in making additional payments toward the principal of your home. Is this a smart financial move? There are a few important points to know. You Can Cancel Your PMI Sooner One of the major advantages of making additional mortgage payments toward the principal is that you can get rid of your private mortgage insurance sooner. If you put less than 20 percent … [Continue Reading...]
Inflation dominated last week’s economic readings and predictions as it hit a year-over-year growth rate of 9.10 percent in July. Inflation reached its highest year-over-year growth rate since 1981. Gasoline prices eased somewhat, but not enough to provide relief against a backdrop of high housing and food prices. Low and moderate-income consumers were disproportionately impacted as rents rose beyond near-record inflation and home prices remained out of reach for many would-be home buyers. Inflation Causing Hardship for Moderate-Income Consumers Consumers faced with rapidly growing expenses turned to credit cards for purchasing food and household items; this trend suggests that … [Continue Reading...]
A good credit rating is built on a number of financial factors including paying your bills on time and the length of your credit history, but loans can also be a source of bolstering your credit score in a positive way. While this means that loans can actually be a good thing, there are also the kinds of loans that can have a damaging impact on acquiring a mortgage. If you'll soon be pursuing your own home purchase, here are some loans that may have a negative impact. Borrowing For Education When you are young, student loans are an ideal means of paying down your debt and developing a positive credit history. However, if these loans are left to linger they can have a marked effect on your … [Continue Reading...]
If you want to purchase a house, you will probably have to take out a mortgage. There are only a few people who have enough cash to purchase a house outright, so most will go to the bank for a loan. How do you know if the bank is giving you the best possible interest rate? Unfortunately, the bank does not always give you the best interest rate because the bank is looking for a way to make money. If they can get you to accept a higher interest rate, they will make more money on your home loan. What are some of the factors that dictate interest rates on loans, and how can you say money? Bank Rates Are Dictated By Investors In a lot of cases, mortgage rates are not necessarily dictated by … [Continue Reading...]
Are you planning on updating your house? A home improvement project can be expensive, but you don't necessarily need to pay for the entire cost upfront. There are several loan options that can make it easier for you to get your home improvement project started right now. What are your options? A Personal Loan One of the most common options people use to finance a home improvement project is a personal loan. This could be a great option for you if you don't want to use your home as collateral or if you don't have enough equity in your home to use one of the other options available. The downside of this option is that you might have to pay a higher interest rate because a personal loan is not … [Continue Reading...]
