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How does credit score affect your mortgage rate?

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Businessman's hands with calculator and cost at the office and FAs we grow older, we become more focused on our finances. It is inevitable that this is going to happen since we are thinking not just for our futures but also, for the future of our loved ones. Millennials are growing families and settling down, while the baby boomers are setting themselves up for a comfortable retirement. Mortgage rate can affect both generations and unless you know the basic facts about credit scores, chances are you’ll be paying more than necessary.

What affects credit and what are the negative impacts?

If your credit rating is in the green, you have done pretty well. You have to be a pretty organized individual (unless you have had help from an accountant) to stay in control of what is going in and what is coming out of your bank every month. The darker the shade of your credit rating, such as red, the worse it is.

Let’s take a look at the things that can have an effect on your credit score:

– Making late payments

– Failure to make payments

– Taking out multiple loans/credit cards and failing to make payments.

When a lender looks at your credit score, they may dismiss your request to finance with a mortgage immediately. The reason for this is because you will look unreliable and will be untrustworthy for repaying in a timely manner. This is not to say that you will be turned down completely, but you will have to prove your borrowing capability to be reconsidered.

Advantages of Financing with a Mortgage

If you have discovered that your credit score is not so great, you can consider an alternative financing option. Whichever route you go down, you would be wise to absorb the pros before looking at the cons.

Here are the upsides associated with this mortgage financing option:

– Home ownership is made affordable.

– It is a cost-effective form of borrowing for mortgage financing.

– Take advantage of lower interest rates.

– Convert a variable loan rate to a fixed one.

Disadvantages of Financing with a Mortgage

Although there are advantages associated with financing a mortgage that you ought to be aware of, it is equally as important that you familiarize yourself with the disadvantages.

Here are the downsides associated with this mortgage financing option:

– The fees you pay for mortgage refinancing can cause your savings to reduce quite rapidly, depending on the lender and the circumstances.

– There is a chance that you will not be accepted if you do not meet the standard lender criteria.

No matter how bad your lending and credit history is, remember that there is always a solution. You can accomplish a number of new lifestyle-changing tasks that will contribute to your lending ability, such as paying back debts to overdue lenders, calculating your monthly mortgage payment, spend less, save more, and don’t bury your head in the sand.

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Tips to Get Your House Ready to Sell this Summer

Nice curb appeal of American craftsman style house.

Nice curb appeal of American craftsman style house.Is it time to relocate and begin making memories in a new house? If so, consider putting your property on the market this summer. Not only will you be able to present your home in the best possible way but competition won’t be as fierce in the warmer months. Real estate investors will see your house in a different light if it goes on the market when Mother Nature is looking her best. With better moving conditions and children out of school for the summer, there really is no better time to present your property to potential buyers.

The stages of selling property involve setting your sale price and staging the home to give it that lived-in look. The sooner your potential buyers can envision themselves settling into the place that you once called “home”, the faster you can expect to make a sale. Furthermore, you can guarantee that the offers you receive will be higher if you focus on enhancing curb appeal.

In order to accomplish this, your real estate game needs to be on point. Take a moment to enlighten yourself on the top tips to get your house ready to sell this summer:

  • Clean Entire Home – Put yourself in the shoes of a buyer and think about what you would expect when you are looking around a property of interest for the very first time. Cleanliness is a must! You can’t cut corners when it comes to dusting, sweeping, mopping, and everything in-between. Some buyers can be more particular than others, so put a bit of elbow grease into it and make your property sparkle!
  • Get Rid of Any Clutter – Not only will a de-clutter clear your mind, it will also give the illusion of a bigger space. You should leave some furniture in place to paint a picture of a “home”. Too much clutter will can distract the potential buyer and make the space feel cramped.
  • Take Care of Landscaping – The garden and grounds on which your property stands are the first thing a potential buyer will see. Maintain the area well with professional landscaping services or, if you have time, cut the lawn, remove weeds, and trim foliage to ensure your property is a sure-fire seller.
  • Fresh Air and Sweet Scents – Don’t forget about setting the mood with the right aroma. An incense stick, air freshener, or scented candle that smells of lavender or chamomile will instill a feeling of calm. The more relaxed the potential buyer is, the easier it will be for them to imagine themselves living in the property. Open the windows and scatter bowls of baking soda around the home to absorb foul smells.

Don’t underestimate the importance of “staging” your home for a sale. Consider keeping decor simplistic, so as not to distract from the overall design of the property, from its flooring to its ceilings. Professional home staging services might come in handy if you don’t consider yourself much of an interior designer!

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How to Know Which Refinancing Option is Best for You

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Businessman's hands with calculator and cost at the office and FA medley of thoughts will cloud your mind when you are on the verge of refinancing. Since refinancing rates tend to creep up as interest rates lower, it can be a tricky task trying to refinance when interest is at its lowest. In order to accomplish this successfully, you must have your head in the game and really be aware of what is happening in the world of financing. This can be difficult without guidance, so aside from consulting with a lender, let this article be of use to you.

Why are you considering refinancing in the first place?

Everyone’s reason for refinancing will depend on their individual circumstances. Lenders will deal with myriad cases that differ somewhat. You can access the equity your home has built up if you refinance. What’s more, there is a good chance that you will be able to get a higher interest rate if you choose to refinance to a cost-effective alternative plan. Paying a reduced monthly interest rate will enable you to set aside costs for other things, such as home improvements.

Selecting a Funding Strategy to Suit Your Mortgage

If you really think that refinancing is the strategy you ought to go down, now is the time to browse and consider your funding options. Interest rates change all of the time and with these changes comes a wave of panic from many borrowers.

Stay calm and take into account the following mortgage refinancing options:

Shopping Around and Evaluating Your Offers

Do not underestimate the importance of actually shopping around and not opting fir the first offer you are presented with. Of course, lenders are going to try and lure you in some way or another, whether it is by dropping the interest rates for the first year with a flexible loan or enticing you with a fixed rate refinancing loan with an attractive interest rate. Instead of jumping at the chance to refinance your property, shop around and use the Internet to your advantage. You would be surprised at how frequently lenders update their loan options and refinancing rates. To avoid missing out on a good deal, research and review for a few weeks (at least) before making your move.

Taking Time into Account

Time is a key variable when it comes to refinancing a property. The length of time in which you wish to refinance the home will be taken into account by the lender(s) you approach. If you keep in mind the fact that mortgaging costs can be impacted greatly depending on the length of the plan you choose, it is wiser to opt for a longer loan.

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Mortgage and Fixer Uppers – Pro and Cons

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Businessman's hands with calculator and cost at the office and FPeople from all walks of life will wander into the world of real estate without the initial intention. The urge to invest in a property that you could call your home for life is hard to resist. Not only this, but more and more homebuyers are looking into what are known as “fixer-upper” projects. These projects are unique in the sense that they provide the buyer with the freedom and creativity to do what they want with the property.

Once they have fixed it up and restored it into a condition that neatly slots into the real estate market, the financial gain opportunities will begin to transpire. If you are to succeed in this type of property investment as a newbie or simply want to educate yourself more on the subject, there are a few things you ought to take note of.

Fixing Up a Home for Financial Gain

Well, why not, right? A lot of people are seeing an opportunity and grabbing it with both hands. By opportunity, we mean securing a low interest rate on a property with a fairly low net worth and capitalizing on that opportunity to restore, renovate, and reap the financial rewards. It is possible to make thousands, if not hundreds of thousands depending on the type of “fix-up”, of dollars by selling the property on when interest rates peak.

Selecting a Mortgage for a Fixer Upper Project

A project of this kind is not just like any other. There is some risk attached in the sense that you may struggle (which is highly unlikely in a market where millennials are house hunting in their millions), or that you may not rake in as much of a profit as you would have initially hoped.

Nonetheless, the prospect of having something fun to work on and more importantly, something that you are passionate about, is exciting to say the least. In the event that your funds are not exactly prime for investment purposes, there are a few things to consider mortgage-wise.

Here are the most popular financing options for property purchases of this kind:

Standard 203(k) loan - Suitable for most types of home repair and improvement.

Limited 203(k) mortgage – If your home repair project is limited to minor improvements, such as repairing gutter pipes, this type of mortgage will be best suited.

Things to Consider with Fix-Ups

Don’t let yourself fall into a financial pitfall unnecessarily. If you discuss your mortgage financing options with an expert, you can better understand if you would suit a loan that is flexible or one that has a fixed interest rate. Remember that the home improvements will be assessed by the lender to ensure everything is being dealt with fairly and professionally.

The method of “fixing and flipping” a home is one that property buyers have been gaining profit from for years. Doing it successfully requires proper financial planning. On that note, it may be worth considering your financing options to ensure your financial stability for the future.

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Successful Garden Tips for Summer

Hydrangea House

Hydrangea HouseAre you thinking about selling your property? If so, it is your job to make the residence appeal to potential buyers. The exterior of a property is the first thing that people will see when they are pursuing the real estate market and so, it is crucial that the grounds on which your property stands are well-maintained. A flawless garden will complement the facade and will indicate that you take pride in ensuring your home is in good condition, from the inside out.

While you could hire a professional gardener to water the plants, de-weed the grounds, and take care of the landscaping in general, it is not entirely necessary. By sparing a little bit of time to maintaining your garden, you can feel confident that your real estate listing will attract more buyers.

The following tips, when put into action, will not take up much time. They will, however, make a big difference to the appearance of your garden. So, let’s dig deep into the ways you can keep your grass and plants looking good throughout the summer months:

  • Water in the Morning - There are numerous benefits associated with watering plants in the morning, rather than in the middle of the day or at night. The sun is at its strongest between 12:00 pm and 3:00 pm therefore avoid watering your plants at this time. Direct sunlight absorb moisture from the soil and leaves, causing it to die. Aside from the fact that the sun will not be as strong during the morning, the water will absorb deeper into the soil if you take the time give your plants a good drink in the morning! Once absorbed into the soil, the water will make its way to the roots of the plant, which will encourage deeper rooting. As a result of this, the plant will thrive, and appear healthier and brighter, even when exposed to the sun at the hottest parts of the day.
  • Keep Potted Plants in the Shade – The main reason why you need to keep your plant out of the sun is to preserve moisture. A dry plant will not live as long a life as a moist plan, so try to find or create a shaded spot where the plant can grow and blossom with a simple watering in the morning. Of course, this depends on what type of plant you are growing (we will go into this next) however; shaded gardens require much less maintenance.
  • Research Plants to Grow – Fertilization methods differ for various plants, as well as the preparation methods and maintenance. So, how do you know what will transform your garden into a vibrant natural oasis? Well, every little helps, from reading a gardening book to researching online. Alternatively, you could participate in a gardening class and learn about plant growth, germination, and tissue culture.

Aside from the garden, dedicate some time to maintaining the paintwork on the property’s exterior, as well as the interior. Property value will soar when the home is cared for properly, therefore the time you spend preserving its appearance will be more than worthwhile. Since your buyer will be inspecting the house during the primary visit and final walk through, preparation is key to ensuring you receive the best offer.

 

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How much home can you afford?

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Businessman's hands with calculator and cost at the office and FPerhaps one of the biggest downfalls associated with being an adult is the fact that as an adult, we must be responsible for our finances. No more pocket money or asking the parents for a few funds to get you through the weekend – this is the real deal. It doesn’t have to be a stressful time however, whether you are a millennial or make up the “baby boomer” generation, however.

Pushing through the financial force field can be difficult if you don’t know much about financing for home buying. On that note, let’s discover more about how a mortgage approval could steer you in the right direction for real estate success.

Financial Factors to Consider

Before you can start searching for the perfect home, the financial aspect must be put in the spotlight. Sit down (preferably with a financial advisor or lending expert) to figure out how your financial situation is looking. Take the following financial factors into account to ease the house-hunting process:

Down Payment – This is the initial payment you will put down on your property. It will depend on your credit score and ability to make regular payments. Down payments for any loan are contingent upon personal applicants qualifications.

Monthly Expenses - Do not start looking at properties until you know precisely how much money is outgoing every month. Monthly expenses include car payments, credit card payments, and alimony.

Flexible or Fixed Loans? – This is a tricky one. If you want to start off with minimal expenditure, but risk paying a higher interest rate in future, go flexible. Fixed loans are more secure, in the sense that the monthly interest rate does not change.

Reasons to Consider Financing for Home Buying

While some people are in a position to afford the cost of buying a home outright or even affording a high interest rate, others are unfortunately not. This is particularly true for millennials aged around 30. With poorer credit scores and less financing experience, securing a mortgage can be tough. Financing for home buying is beneficial, because it means you have control over your cash for the mortgage lifetime. It also makes becoming a homebuyer possible.

Finding the Best Rates in 2017

Interest rates are changing all of the time and if you are to find the best rates before someone else beats you to it, or before rate fluctuation occurs, there are a few things you need to do. Aside from shining up that unattractive credit score and thinking about how long you intend on living in/working in the property, you can do more to find the best mortgage rates in 2017. First things first, use the Internet to research mortgage rate comparisons on a daily basis or at the very least, a few times per week. This will keep you in the loop about what’s a good deal and what’s not. Your knowledge on the current rate climate will help you to determine whether or not now is the time to act.

Tips for Securing a Mortgage

Keep in mind that certain lifestyle factors will have an impact on mortgage interest rates, not to mention your chance to secure a financing deal at all. Speaking with a financial advisor will relieve you of any concerns or quandaries that might be boggling your brain ahead of purchasing a home. Consider all of your options and do not overload yourself financially.

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What Closing Costs does the Buyer and Seller Pay?

Couple meeting financial advisor

Couple meeting financial advisorThe real estate market provides huge profit potential for sellers, as long as the seller takes the right approach. According to the 2016 National Association of REALTORS Profile of Home Buyers and Sellers, 51% of homebuyers will use the Internet to find their ideal home, whereas 34% will use the services of a real estate agent. The remaining percentage of buyers will make an investment move after seeing a yard sign, hearing about the real estate listing from a family/neighbor/relative, or will know the seller directly.

No matter how you intend on attracting a buyer (if you are a seller) or searching for the ideal home (if you are a buyer), it is important that you are aware of the fees involved once a selling price has been determined. Unless you understand what the typical closing cost includes, there is a chance you may be left surprised with unexpected costs.

Familiarize yourself with the process of closing a real estate transaction to eliminate surprise once the home ownership is shifted from the seller to the buyer.

Typical Buyer’s Closing Costs

  • The Down Payment - This is the initial payment a buyer will make to reserve the home. A larger down payment means reduced loan interest, so aim to put down as much as possible.
  • Loan Fees – A lender will assess your credit score and charge a fee to process the loan application.
  • Prepaid Interest - When daily interest builds on your loan, this must be paid at the time of closing. Once again, the amount depends on your credit report and financial situation.
  • Inspection Fees – A property inspector will charge this fee to assess the condition of the property. This service is valuable since it aids the buyer in making a final decision.
  • Appraisal - The fee charged by a qualified appraiser to determine a property’s market value.
  • Mortgage Insurance – Should a mortgage loan default, mortgage insurance will cover it.
  • Hazard Insurance – Damage caused by Mother Nature, vandalism, theft, or unintentional circumstances can be repaired, with costs covered by this insurance policy.
  • Title Insurance – A kind of indemnity insurance that shields a buyer and lender if the seller is unable to transfer home ownership.
  • Documentary Stamps - Documents that transfer real estate interest must be stamped, so that the excise tax can be imposed properly.

Typical Seller’s Closing Costs

  • Broker’s Commission – Every realtor will charge a different percentage of commission on the final property sale value. This will be deducted at the time of purchase.
  • Transfer Taxes – Consider this a transaction fee for transferring home ownership from you to the buyer.
  • Documentary Stamps on the Deed - This is a tax on documents detailing the transfer, sale, acceptance, or loan agreement for a property.
  • Title insurance – Indemnity insurance is equally as important for the seller to pay, as it is for the buyer.
  • Property Taxes – Property expenses must be divided fairly to ensure the buyer is only paying from the moment he/she claims home ownership. This is guaranteed when property taxes (a proration) are paid.

Calculating the closing costs prior to making a property purchase or agreeing to a sale will ensure you are satisfied with the outcome. Use the Internet to your advantage at this time, by estimating the costs with an online calculator. A few influential factors include the condition of the house, its size, and the features (interior and exterior).

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Evolution of Online Mortgages

Young people move into a new apartment.

Young people move into a new apartment.No longer are people spending months upon months trying to find a mortgage that suits them. With the rise of the Internet and its billions of active worldwide users, the capabilities for mortgage hunters is increasing. Now, we are in the age of millennials, when people in their 30’s are making the decision to find a place where they can settle down, raise a family, and feel comfortable in their surroundings.

Homeownership is not only about finding somewhere to call “home” though. For many, it presents an opportunity to invest in their future and broaden their business horizons. Whatever the reason(s) you might have for wanting to take out a mortgage and start living like an adult, let’s consider the growth in online mortgages for a moment.

How have home loans changed over the years?

In the past, making a down payment was a difficult part of the process. Typically, this down payment would be a significant chunk of the total property price. Millennials are confused and believe that renting could relieve them from financial burden. As a matter of fact, loans nowadays have changed in the following ways:

– Interest rates have fallen and making a low down payment has become easier.

– A normal pattern in lending seems to have re-emerged since the last economic downfall.

– Although the strictness of lending terms has not eased, down payments have.

– The lower of two people’s credit scores is considered for a home purchase, nowadays.

– Investors are opting for single-family homes as opposed to obtaining finance for larger property purchases.

As inflation and deflation rates fluctuate and since the property market is unsteady at times, it is inevitable that online mortgage trends will continuously adjust, in some way or another. Staying in the loop will ensure you make the right financing decision.

How has the online mortgage process changed?

These days, the process will start with a loan estimate and credit report check. Unlike in previous times when technology was not so advanced, the process is actually much more straightforward. All it requires is an Internet connection, some in-depth research and most importantly, patience. Seeking out the best deal requires patience and it is imperative that you compare interest rates if you want to spend less in the long-run.

What affects mortgage approval today?

Whether you want to face facts or not, mortgage approval has changed and will continue to do so. Lenders focus on patterns in repayment and base them on a set of criteria. This criteria will determine if you are approved for home financing or not and it is as follows:

The debt-to-income ratio - A few finances that count towards the debt-to-income ratio include car loan payments, student loan payments, child support, etc.

Credit scores and spending history/habits - Repay some outstanding debts and lenders are more likely to approve you for an online mortgage.

Job stability – If you cannot hold down a job and lack regular income, your approval rate will be low.

Within the space of a few minutes, you can search for the financing and remortgaging options that suit you. Thanks to the World Wide Web (WWW) and the fact that it can be accessed on the move, and on a variety of devices, mortgage hunters can check the updated rates. Furthermore, they can make themselves aware of rate fluctuations.

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