Way to Go!!!

graduacion2 copyCongratulations recent Grads! Earning your  diploma is the beginning of an  important milestone. It is also Next up in your journey  Homeownership!

First, you need to establish a good credit.

Why? Because a good credit history is an important factor in reaching additional goals  in your life like buying a house.

According to Zillow , here are 5 things you need to know in establishing a good credit history.
1.    Find out where you stand
2.    Build a credit history
3.    Research credit card options
4.    Use credit responsibly
5.    Chip away at student loans                                      Wishing you only the Best Grads!   Thumbs UP!

 

 

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Mortgage Rates slightly higher

Mortgage Rates slightly higher

Finding-a-refinance-rate-for-your-homeMortgage rates are higher today, leaving September as one of only 3 months this year with noticeable upward movement.

And today was an exception to that recent trend, but it’s tempered by the fact that yesterday’s gains were the best of the month.

The only downside is that the most prevalently-quoted conforming 30yr fixed rate for top tier borrowers remains 4.25% whereas it would have likely moved to 4.125% if rate went the other direction today.

These movement considerations may be small scale compared to what lies ahead.  Several big tickets events are coming up in the second half of this week and they stand a good chance to increase the level of volatility.

Mortgage Rates and Terms Beware!

Mortgage Rates and Terms Beware!

Mortgage rates haven’t moved much this year, and the good news is they’ve been stuck at historically low levels. However, mortgage rates are expected to move higher as we head through the fall. While various groups report national mortgage rate averages each week, the rates you get can vary dramatically from that average, depending on what product you choose and how you shop.

One of the biggest mistakes home buyers make is to take a 30 year, fixed-rate mortgage when they don’t really need it. The 30-year fixed is the most expensive of all mortgage products because the rate is the highest and you’re paying for the longest time.imprevistos

It is better to consider a product that matches how long you expect to be in your home, and make some changes later. Points are an upfront payment of interest in exchange for a lower rate. This boosts your closing costs and makes the rate appear to be artificially low.

Also, a great rate can turn into a bad one if your rate lock expires and you have to pay for an extension. Get your financials ready and provide them when asked, the sooner the better so it won’t interfere with the possibility of losing your rate lock. Documentation requirements can be arduous these days, and financial institutions are not going to waive them.

Beware of hidden fees and loan level pricing adjustments. Be sure to review a full breakdown of closing costs before committing to a lender. You can shop by rate or shop by fees, but you can’t shop for both at the same time.

Be aware about the Zero-closing cost mortgages that are sometimes available for as little as 12.5 basis points (0.125 percent) added to your mortgage rate. Your payment might raise $30-50 per month, but you’ll eliminate $4,000 in closing costs or more.

And finally, don’t let multiple lenders run your credit score. This can actually damage your score.

 

 

Fannie Mae reduces waiting period for distressed borrowers

Fannie Mae reduces waiting period for distressed borrowers

A recent report revising the waiting periods for distressed borrowers with a derogatory credit event such as a foreclosure, bankruptcy, short sale, or deed-in-lieu of foreclosure on their credit history to obtain a new loan has been released by Fannie Mae. This revised statement reduces the waiting period up to two years for borrowers with a short sale or deed-in-lieu of foreclosure on their record if there are extenuating circumstances that borrowers can prove. FannieMae

According to Fannie Mae, extenuating circumstances are defined as “nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.”

If a borrower has a foreclosure on his or her credit record, the new minimum waiting period is seven years. Under extenuating circumstances, that period is shortened to three years with some additional requirements for up to seven years. For those with a bankruptcy the waiting period is four years but two years with extenuating circumstances from the discharge date.

Fannie Mae said in the report that it is “focused on helping lenders to provide access to mortgages for creditworthy borrowers while supporting sustainable homeownership” and that the new policy “provides opportunities for borrowers to obtain a loan to Fannie Mae’s maximum LTV (loan-to-value) sooner after the Pre-foreclosure, Short Sale or DIL.”