Tag Archives: #Homebuyer

Home Lending Debt-to-Income Ratio Increase Could Mean More Buying Power For Homebuyers

Fannie Mae has raised the debt-to-income ratio to 50% DTI, reasoning a higher debt ratio doesn’t mean poor credit. The debt-to-income (DTI) ratio is determined based on a borrower’s total amount of debt, including credit cards, student loans, auto loans and mortgages, compared to their total income. Fannie Mae’s recent changes will hopefully allow more homeowners to enter the housing  market with new expanded debt-to-income requirements, making it easier for borrowers with good credit but higher debt to acquire a home loan.

Applicants with high DTI ratios have been told their debt is too high for home lending approval. The Washington Post printed an article outlining how those rejected on home lending applications due to high debt-to income ratios often make payments for their debts early, signaling that on time payment, or payment default isn’t the issue. Of those declined applicants, some have never actually defaulted on their credit, but were declined based on their higher debt due to raised student expenses, cost of living increases as well as other expense inflation.

Fannie Mae wants to allow more homeowners to enter the market as it increases the DTI requirements. This shift by Fannie Mae opens up the market to almost 100,000 new, responsible, homeowners, and one might even be you! If you’re interested in getting pre-qualified for your home, give a call!

Kathleen Beck – Mortgage Lender
2716 Broadway
Sacramento, CA 95818
916-722-0395

#Mortgage #MortgageLoanProcess #Debt #DebtToLoanRatio #Buying #HomeBuyer #HomeBuyingProcess #Refinance #ConventionalLoan #FHALoan #VALoan #JumboLoan #PreQualifications #PreApproval #Borrower #HomeOwnership #Sacramento #BayArea #HomeFinancing #TrustedLender

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Summer Staycation

Were in the heat of summer and as the temperature rises, many are packing their bags and hitting the road. One way to save money this summer and still vacation is to enjoy a “staycation.”

First, lets clear up what a “staycation” is… A staycation is a vacation spent at home and involving day trips to local attractions. With this type of planning, your family now has redirected unused funds that they would have spent on expensive travel, and still reap the advantages of relaxation, rest and quality family time. Sounds like a win to me!

Here are some items on my staycation list:

  • Visit the local museums
  • Go to the zoo
  • Hike a nearby trail
  • Go paint-balling or rollerskating
  • Go to the movies
  • Get a massage
  • Pay to have your house cleaned to bring hotel-level service to you
  • Grocery shop for your favorite foods
  • Create a restaurant schedule and visit local eateries
  • But your toes in the water (a pool, ocean or river)
Budgeting time to decompress and have fun with loved ones always rejuvenates my spirit. By taking a staycation you choose a thrifty alternative to an extravagant vacation. I have found myself more relaxed when it’s over because we don’t have the headache of packing, travel, itineraries and overspending.
Have you ever staycationed or are planning one?

Kathleen Beck – Mortgage Lender
2716 Broadway
Sacramento, CA 95818
916-722-0395

#Mortgage #MortgageLoanProcess #Staycation #Buying #HomeBuyer #HomeBuyingProcess #Refinance #ConventionalLoan #FHALoan #VALoan #JumboLoan #PreQualifications #PreApproval #Borrower #HomeOwnership #Sacramento #BayArea #HomeFinancing #TrustedLender

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Biggest Benefits to Your VA Loan

VA loans are beneficial for those who qualify for a VA home loan; including veterans, active duty, national guard and reserve members.  In order to apply for a VA loan, aside from your service, you must have suitable credit, sufficient income, and a valid Certificate of Eligibility (COE) to be eligible for a VA-guaranteed home loan. The home must be purchase as your personal residence.

The biggest benefits of a VA home loan:

  • No Down Payment – Rather than paying 5%-20% on a down payment, you may finance a VA Loan up to 100% of the purchase price up to the VA loan limits in your state and county.
  • No Mortgage Insurance – It is common that lenders require you to pay mortgage insurance on a purchase with less than 20% down. There is no mortgage insurance requirement on a VA loan, making it very affordable upfront and over time.
  • Government Guarantee – The Federal Government guarantees the top 20% of  a VA loan.
  • No Prepayment Penalty – Most military personnel know their time in one location may be limited as orders often change.  Regardless of if you’re a veteran or current military, there’s no prepayment penalty or early-exit fee for the VA home loan.
  • Easier To Qualify – VA loan guidelines tend to be more flexible because of the VA loan guaranty. The Dept. of Veterans Affairs wants to make it easy for our service members to buy a home or refinance a home.
  • Funding Fee Flexibility – The VA allows funding fees to be financed so that nothing is due at closing. Also, if the veteran receives disability compensation from the VA the VA Funding Fee maybe waived.
  • VA Loans are Assumable – Assumable means you may transfer your VA loan in the future to a VA eligible buyer that meets the basic VA loan requirements. Assumable loans may be a great benefit to a buyer if the interest rates have increased since the home was originally purchased.

Helping Veterans and service members obtain home ownership financing is a personal goal for me.  There are many benefits to home ownership and even more if you served our country and are eligible for a VA loan.  If you want to learn more about VA Lending and how you can utilize the a VA home loan please email or call me today.

Kathleen Beck – Mortgage Lender
2716 Broadway
Sacramento, CA 95818
916-722-0395

#Mortgage #MortgageLoanProcess #NoDownPayment #Buying #HomeBuyer #HomeBuyingProcess #Refinance #ConventionalLoan #FHALoan #VALoan #JumboLoan #PreQualifications #PreApproval #Borrower #HomeOwnership #Sacramento #BayArea #HomeFinancing #TrustedLender

 

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4 Exceptions To Having More Than 1 FHA Mortgage

It is well known that the FHA will not insure more than one property as a principal residence for any Borrower.  What is missing from that information to complete the understanding of what the FHA insures, are the circumstances in which a borrower with an existing FHA-insured Mortgage for a principal residence may obtain an additional FHA-insured Mortgage on a new principal residence.

  1. RELOCATION – Borrowers may be eligible for a second FHA-insured Mortgage without being required to sell an existing property covered by an FHA-insured Mortgage if the Borrower is relocating or has relocated for an employment-related reason. Also if the borrower is establishing or has established a new principal residence in an area more than 100 miles from the borrower’s current Principal Residence.
  2. FAMILY SIZE INCREASE – Borrowers may be eligible for another house with an FHA-insured Mortgage if the borrower provides satisfactory evidence that the borrower has had an increase in legal dependents and the property now fails to meet family needs. Also when the Loan-to-Value (LTV) ratio on the current principal residence is equal to or less than 75% -OR- is paid down to that amount, based on the outstanding mortgage balance and a current residential appraisal.
  3. VACATING JOINTLY-OWNED PROPERTY – Borrowers may be eligible for another FHA-insured Mortgage if the they are vacating (with no intent to return) the principal residence which will remain occupied by an existing co-borrower.
  4. NON-OCCUPYING CO-BORROWER – A non-occupying co-borrower on an existing FHA-insured Mortgage may qualify for an FHA-insured Mortgage on a new Property to be their own principal residence.

The FHA will not insure a mortgage if it is determined that the transaction was designed to use FHA mortgage insurance as a vehicle for obtaining investment properties, even if the property to be insured will be the only one owned using FHA mortgage insurance.

Kathleen Beck – Mortgage Lender
2716 Broadway
Sacramento, CA 95818
916-722-0395

#Mortgage #MortgageLoanProcess #FHALending #FHAMortgage #Buying #HomeBuyer #HomeBuyingProcess #Refinance #ConventionalLoan #FHALoan #VALoan #JumboLoan #PreQualifications #PreApproval #Borrower #HomeOwnership #Sacramento #BayArea #HomeFinancing #TrustedLender

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Buying A Home is Easier Than You Think

The most common misconception about buying a home is that it has to be a complicated process. Obviously factors can play into the simplicity of making a home purchase but if you do your homework, you should walk out of the experience feeling empowered by the simplicity of it.
Step 1 – How Much You Can Afford?
The first thing most buyers do that sets them on the wrong path, is looking for the home, going to open house or searching the web, before finding out what they are financially qualified to buy. Now, maybe you are a “cash” buyer, meaning you are making the purchase with cash you already have on hand, but the average home buyer utilizes home financing to make the purchase so the first step should always be research and consult a trusted mortgage lender. I love Yelp and feel it is a great tool to do background on lenders. Find a great lender that has your best interest at heart and is familiar with all the different loan programs. That lender will work with your financial options to find the best loan program for you. Your lender should work directly with you, meaning you aren’t just talking to their assistant or the loan processor.
Step 2 – Find the Realtor, Find the House
Do the same homework to find the best realtor. A great realtor will know what is on the market in your price range, as well as be in the loop to what is approaching the market and should work with your lender directly to communicate all the interest you have in each property. It is very important that you understand how different elements, such as Home Owners Association Fee’s or flood or other insurance fees pertaining to each individual property can play a role in your monthly mortgage payment.
It is very important that you work with a trusted lender who always have your best interest in mind. By “best interest” that means what you as a buyer will be most comfortable living with, while you transition into home ownership. Sometimes “best interest” gets twisted into maximum you can afford. Buying a home that stretches your budget beyond what allows you to live a good life is a recipe for disaster. The home buying process should be a simple process. Work with people you trust. Communicate when you are not feeling comfortable or do not understand. Your lender and your realtor should have no problem sitting down with you and explaining and outlining how each step of the home buying process works.
If you are interested in learning how to become a homeowner and want to see what you qualify to purchase let me know. Check my Yelp or follow me on Facebook to learn more about my process.
Kathleen Beck – Mortgage Lender
2716 Broadway
Sacramento, CA 95818
916-722-0395 

#Mortgage #MortgageLoanProcess #Buying #HomeBuyer #HomeBuyingProcess #Refinance #ConventionalLoan #FHALoan #VALoan #JumboLoan #PreQualifications #PreApproval #Borrower #HomeOwnership #Sacramento #BayArea #HomeFinancing #TrustedLender

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Life Beyond Raising Children

As a mortgage lender and mother of two wonderful boys, Bryan (18) and Josh (14), life can become both hectic and routine, depending on the day. I enjoy working with my clients and seeing their home ownership goals become a reality just as much as I love watching our boys grow and reach new milestones. It has been fun over the years learning to balance work and my home life and I know that my family has benefitted from my commitment to both. As our boys are growing up, I have seen a shift in my time management as they need me less each year.

It is important for parents to rebalance as their children grow and find ways to take the time to nurture our own lives. Often as parents our children are the priority which is a beautiful blessing. But there comes a time when we need to refocus and make sure we are taking care of ourselves. Some people even manage to do this with young kids and I admire them greatly. I am learning more and more the importance of making myself a priority, which can be hard as a mother of two.

Find new hobbies.
Make it fun and do something you thought you would never like! What is the worst thing that happens? You hate it and never do it again? Well chances are you may actually enjoy it. I thought I would hate doing artsy things like ceramics and painting, but sure enough here I am returning to my Saturday night ceramics class, meeting new people and having a blast.

Get involved in your community.
This is one that I remained close to, even with children as they grow older I see myself finding new fun ways to participate.  Such as the Antelope CPAC (Antelope Planning and Advisory Council) and the Center Unified School District Bond Oversight Committee.  I am also active socially in the Ladies of Antelope which started about a year and a half ago so the women in our area had a place to connect and socialize with each other.  Even if you are just attending meetings or going to an outdoor community fair, making the time to do these things means that I am meeting new people and fostering fresh relationships.

Make a personal health commitment.
This is something we should all do regardless of where our lives are at. Most focus on physical health but lets not forget about emotional and mental health. Living a healthy life means less stress and more energy. For me as a mother I have found more time to make this a priority as my boys get older. I am now food prepping, finding time for myself at thy gym and also focusing on my emotional health, which has been an amazing experience. Self-love is something we assume we need to schedule. Sometimes it is a s simple as taking your coffee outside and walking around the block, or the river if you are near one. Sometimes self-love is a simple as just taking five breathes of fresh air without interruption.

As a mother this wouldn’t be fun unless I highlight my two boys. We adopted both our boys, Brian who is now 18 at 13 months and Josh who is 14 at six weeks. Brian is autistic and we have seen him grow and reach incredible milestones like teaching himself how to play guitar and also teaching all of us about the latest tech trends. His sense of humor always lifts our family and his autism has never been a something he has allowed to slow him down. Our younger boy Josh is an adventurous, gracious, empathetic and caring boy. With an autistic big brother brother, you can see how much he cares for all those around him no matter what their circumstances. His kindness makes me so proud. Josh just earned his second degree black belt in taekwondo and what makes me even more excited is his interest in helping the kids that attend his academy learn and grow.

Our boys inspire me to work harder and be a better person. I hope this sheds some light into what I am working on now that my children are growing up and also helps you think about how you can prioritize yourself in all that goes on around you. Carve out time for something fun. Be adventurous and do something you said you would “never” do. Who knows, maybe you’ll be like me and laugh at how much you love it.

Kathleen Beck – Mortgage Lender
2716 Broadway
Sacramento, CA 95818
916-722-0395
#LifeBeyondRaisingChildren #RaisingChildren #Children #Life #Hobbies #WorkLife #WorkLifeBalance #Balance #Harmony #Fitness #CommunityInvolvement #PersonalHealthCommitment #PersonalHealth #Health #Community #Involvement #HomeFinancing #TrustedLender #Mortgage #MortgageLoanProcess #Buying #HomeBuyer #Refinance #ConventionalLoan #FHALoan #VALoan #JumboLoan #PreQualifications #PreApproval #Borrower #HomeOwnership #Sacramento #BayArea #California #Mom #Mother
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Understanding the Mortgage Loan Process

 

By: Kathleen Beck – Mortgage Lender
West Coast Mortgage Group
NMLS #243181  |  BRE #01058848

There are four important steps in buying or refinancing a home. Before you get started it is important to organize your documents from the “Needs List” (see prior blog for complete “Needs List”) to ensure your loan or refinance is processed in a timely manner without unanticipated hurdles.

In order to simplify the loan process I have summarized the timeline into four simple steps to better understand the process.

  1. Needs List and Pre-Qualification:
  • Your mortgage professional receives your loan application and documents needed to verify your application (see blog on “Mortgage Needs List”) from you.
  • Buyer: Your mortgage professional will process your application and issue you a Pre-Approval letter for you and your realtor to use to verify your loan pre-approval for the offers you present to the seller. You can now view homes, make offers and enter into contract with a seller.
  • Refinance: Your mortgage professional should process your application and issue you a Pre-Approval letter based on your qualifications and interest rates currently available.

2. Offer Time:

  • You made an offer, it was accepted and you are in contract!
  • You will receive a Loan Disclosures within 5 days of receiving your complete purchase contract.
  • Your appraisal will be ordered and scheduled with your realtor.
  • Additional documents may be required at this time to further prepare your file for underwriting of your loan.

3. Underwriting (UW):

  • Your loan package is submitted to underwriting for approval.
  • The underwriter will send out a Conditional Loan Approval.
  • You will work together with your mortgage professional to complete your “Prior To Doc Conditions” from underwriting so your file is cleared to close.

4. Closing:

  • Your “Prior-To Doc Conditions” are completed and signed off by the underwriter.
  • Once underwriting has signed off you receive a clear to close (CTC).
  • Your “Closing Disclosure” (CD) is issued.
  • You acknowledge your “CD” and your 3-day waiting period begins before you can sign your final loan documents.
  • 48 to 72 Hours after you sign the final loan documents, the title company will receive funds from your mortgage lender and records your Deed of Trust (special circumstances apply with holidays and weekends).

The entire loan and refinance process takes approximately 30-45 days and mortgage loan officers work to make this as simple and stress-free as possible for borrowers. If you have questions about the loan process or are interested in learning more about refinancing your home direct message me and lets get you moving towards your home ownership goals.

#Mortgage #MortgageLoanProcess #Buying #HomeBuyer #Refinance #NeedsList #ConventionalLoan #FHALoan #VALoan #JumboLoan #PreQualifications #PreApproval #OfferTime #Underwriting #Closing #Borrower #HomeOwnership #Sacramento #BayArea #HomeFinancing

 

 

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Understanding Mortgage Insurance Q&A

By: Kathleen Beck, Mortgage Lender

West Coast Mortgage Group

NMLS #243181 | BRE #01058848

Mortgage insurance is an important element of the loan process if you have a low down payment, yet many first time borrowers aren’t very familiar with what it is and how it works. Mortgage insurance helps borrowers lower the risk they are placing on lenders for qualifying them for a loan with a low down payment. There are two types of mortgage insurance, “Borrower Paid” and “Lender Paid.” Understanding the difference between borrower and lender paid, and why utilizing this insurance option could benefit the buyer as well as the lender.

Here are some great questions and answers that I have provided my clients that all borrowers may also find useful.

  • Q – Who needs mortgage insurance?
    • A – Most borrowers making down payments fewer than twenty percent of the purchase price need to obtain mortgage insurance.
  • Q – What is the purpose of mortgage insurance?
    • A – Mortgage insurance lowers the risk the lender making a loan to you holds, so you can qualify for a loan.
  • Q – What is Borrower Paid Mortgage Insurance (BPMI)?
    • A – BPMI is insurance on your loan for the lender when a borrower has a low down payment and a lender is looking for assurance that the loan will be paid in full and on time. If a borrower decided to utilize BPMI, the lender charges a yearly premium paid in monthly installments.
  • Q – What is the average a borrower will pay a lender for their BPMI?
    • A – On average, BPMI premiums costs between 0.3 and 1.15 percent of the total loan amount.
  • Q – What is Lender Paid Mortgage Insurance (LPMI)?
    • A – LPMI is mortgage insurance that the lender pays for the insurance premium instead of the borrower. The cost of the LPMI is reflected in a higher interest to the borrower.
  • Q – Does mortgage insurance increase your monthly payment?
    • A – Mortgage insurance does increases the cost of your loan.
  • Q – Will the mortgage insurance payment be included on my monthly payment statement?
    • A – Yes, mortgage insurance will be included in your total monthly payment.
  • Q – If I default on my payments and the insurance kicks in, what will happen to my credit and my home?
    • A – If you fall behind on your monthly payments, your credit score may suffer and there is a possibility your home could foreclosure.

There are multiple loan options available to borrowers with low down payments. I enjoy working with my clients to help them find the down payment and loan that best fits their financial needs and I always recommend that they ask questions and maintain communication throughout the lifecycle of their loan. The last tip I would like to leave you with is, once the loan is paid down some, you may be eligible to cancel your mortgage insurance. If you are able to cancel, you won’t have to continuing to pay the monthly insurance expense.

#Mortgage #MortgageInsurance #LPMI #BPMI #LenderPaidMortgageInsurance #BorrowerPaidMortgageInsurance #Market #RealEstate #Lending #HomeOwnership #Jumbo #FHA #VA #Conventional #Sacramento #BayArea #HomeBuyer #CreditScore #DownPayment #KathleenBeck #TrustedMortgageLender

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Great Down Payment Assistance Program Available in Sacramento, Placer and Yolo Counties.

Ever feel as though you just do not fit the mold for Down Payment Assistance Programs?

Unfortunately, many home buyers do not qualify for Down Payment
Assistance Programs because they have too much annual income. lying couple on grass and dream three cloud houses collage
Lack of a down payment for a home, even though you can afford the monthly payment can be very frustrating because it is difficult to save money for a down payment.
Great news, the Purchase Advantage Loan (PAL) may just be the perfect solution for you. PAL is a fully amortizing second loan for down payment assistance and closing costs and when paired with a conventional first loan there are no income limits. The minimum loan is $10,000 and the maximum loan is $15,000 at 5.5% fixed rate/6.574 APR for 10 years with monthly payments.
The PAL is an owner-occupied loan only. The minimum FICO score is 650 and all collection accounts must be paid in full before closing. The buyer’s minimum investment is 1% of the sales price. At close of escrow the buyer cannot own any other real estate. Also, the buyer must attend an eight hour homebuyer education course provided by NeighborWorks.
Email or Call Kathleen Beck-Mortgage Lender today to find out more about this great program. Kathleen@BeckHomeLoanPro.com or 916-722-0395.

Please call or email me with any questions… Let me help make your dream of home ownership come true. I specialize in finding you the right loan that meets your specific needs and financial goals. With mortgage rates still near historic lows, make this year the year to make your home ownership dream come true. Please email me today Kathleen@BeckHomeLoanPro.com or call 916-722-0395 to get started on your dream of home ownership. Kathleen Beck A person you can count on. West Coast Mortgage Group 2716 Broadway Sacramento, CA 95818 NMLS#243181, BRE#01058848.

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Real Estate in Sacramento, Hot or Not?

hot-real-estate-market1 (1)I have been asked if the real Estate market in Sacramento is still Hot, meaning low inventory and rising home prices.  My answer to the question is yes and no.

 

Yes, if you want to buy a home now with less competition from all cash investment buyers.  The Real Estate market in the Sacramento Area has stabilized to a more normal market where actual families have a good shot at buying a home.  No, if you want to buy a home and see double digit appreciation.  Since the first of the year the home prices in the Sacramento Area has increased at a normal rate of appreciation.

 

A normal market means the playing field for both the buyer and seller is more level.  The buyer is not competing against 10 to 20 other offers when they present an offer to the seller.  Likewise, the seller does not have to decrease the sales price and pay the buyer’s closing costs just to seem attractive to potential buyers.

 

Home prices are stabilizing and selling well if they are price correctly for this market. As always it is very important to make sure you are prequalified by a local lender before you start to look at homes to purchase.

 

Please call or email me with any questions… Let me help make your dream of homeownership come true. I specialize in finding you the right loan that meets your specific needs and financial goals. With mortgage rates still near historic lows, make this year the year to make your homeownership dream come true. Please email me today Kathleen@BeckHomeLoanPro.com or call 916-722-0395 to get started on your dream of home ownership. Kathleen Beck A person you can count on. West Coast Mortgage Group 2716 Broadway Sacramento, CA 95818 NMLS#243181, BRE#01058848.

 

 

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