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.
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.
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With so many changes taking place as we transition into this New Year, the Federal Housing Administration (FHA), Fannie Mae, Freddie Mac and VA increased loan limits for the first time since 2006! Two large changes that have helped create this shift are the steady rise in property values and the housing market continuing to recover. The new limits will be considered for borrowers looking for lending on or after January 1, 2017, and will remain in place through the end of the year.
The maximum loan limits have increased across the board, mainly being seen through one-unit properties as well as in high cost areas and FHA-insured Home Equity Conversion Mortgages (or reverse mortgages).
Maximum loan limits:
These increases mark a rising confidence in borrowers ability to repay their loans and have lead to more options for buyers when it comes time to choose a home due to a wider variety of financial lending options.
It is important to understand that lenders still work diligently to get borrowers approved and the documentation requirements have not changed. These increasing lending limits have allowed me to create a competitive landscape for my clients, focused on providing more financial lending options.
For more information regarding these lending limits shifting and the requirements for buyers to make a home purchase, I am always available to help my clients, friends and family and look forward to the new opportunities these increased loan limits will create for buyers in 2017.
#Mortgages #LoanLimit #Market #RealEstate #Lending #HomeOwnership #Jumbo #FHA #VA #Conventional #Refinance #Millennials #BabyBoomers #2017 #Sacramento #BayArea #HomeBuyer #CreditScore #KathleenBeck #TrustedMortgageLender
By: Kathleen Beck, Mortgage Lender
CA BRE #01058848 | NMLS #243181
It doesn’t take much reflecting on 2016 to understand that 2017 will find creative ways to surprise us. Knowing the complexity of the market I want to break down what we can expect to see shape our buyers market for 2017 and also combine that with what Realtor.com annual market study to draw a picture of the key housing trends to come.
According to Jonathon Smoke, Chief Economists of Realtor.com, “The pace of growth is still strong and, for pricing, still represents an above-average level of appreciation.”
Key 2017 Predictions:
The West Will Lead the Way
Realtor.com expects metropolitan markets in the West to see price increase of up to 5.8% and sales increase of 4.7%. The Western markets also are dominating the 2017 Realtor.com Top Housing Markets, including Sacramento, Los Angeles, Tuscan and Portland.
Millennials and Baby-Boomers Will Move Markets
Both millennials and baby boomers are approaching life stages that naturally motivate people to change their living experiences such as, getting married, buying a home, having children, empty nesting and retiring. Jonathon Smoke predicts that millennials will make up 33% of buyers in 2017.
Slowing Down Price Appreciation
Home price increases are forecasted to slow from what was forecasted at 4.9% in 2016 to 3.9%. “Prices are still likely to go up at an above-average pace as long as supply remains so tight,” Smoke says.
Fast Markets with Fewer Homes
The average time it takes a home to move from “listed” to “sold”, is currently 68 days in the top 100 metropolitan areas. That average age of inventory (68 days) is 11 days faster than the national average. The conditions limiting home supply are not expected to change in 2017.
The number one thing I recommend for all my clients is to get your documents in order and lets talk about what the market is doing and when would be best for them to buy. Everyone’s timeline is different and making sure you feel comfortable with both what the market is doing and also what you want your financial future to looks like are always my top two priorities.
#Mortgages #Market #RealEstate #Lending #HomeOwnership #PriceAppreciation #Jumbo #FHA #VA #Conventional #Refinance #Millennials #BabyBoomers #2017 #Sacramento #BayArea #HomeBuyer #CreditScore #KathleenBeck #TrustedMortgageLender
Over the past few decades the housing market has gone through a boom and a bust, followed by an insane decade of home-price escalation, wide-scale under-financing, and subprime lending. Today, many homebuyers are stepping into the real estate arena for the first time and they are wondering where they fall in the home buying “market” cycle.
Many clients ask me what advise or “rules” I give buyers based on my experience of the ever-changing market. Here are some rules for homebuyers looking to make the transition to homeowner.
I am always available to help interested homebuyers learn more about where they stand financially and how they can transition smoothly into home ownership.
As the temperature drops and we all brace for the winter, there are major advantages to finding the home of your dreams during the cold season.
During the warmer seasons there tends to be an increase in inventory on the market but with that increase comes a hefty increase in price and contract competition. More buyers are looking and when it comes time to put an offer in, chances are you are not the only buyer interested.
Research has found that by home hunting during the colder months, buyers are more likely to find that prices have dropped and competition has also lowered.
When discussing winter buyers, Jonathan Smoke, Chief Economist of Realtor.com outlined “You have 50%-60% more inventory relative to the number of buyers, so there’s basically more options per buyer, and that translates into less competition.”
We found that NerdWallet backed up Smoke’s statements with data on how home prices usually bottom out in the winter months, providing an opportunity to save money.
The main advantages of less competition translates into lower home prices allowing buyers the opportunity for a lower down payment. During traditional market peak months, there tends to be more inventory on the market but with that inventory, buyers pay a higher premium.
We find that buying a home really depends on when you as a buyer are comfortable and prepared and that time is different for every buyer. When the numbers are crunched, winter statistically is the best opportunity for buyers as competition tends to fall away.
The best thing for all interested in purchasing a home is to connect with an experienced Loan Officer and discuss the home buying process. Every buyer has different needs and sitting down and discussing your home buying goals are is the best first step.
For the last three years I have been telling clients that if underwriting loans was pendulum we would be far over to the right or on the conservative side of things and that as the lending pendulum swings back and forth so will the underwriting guidelines. In the last three or four months I have seen the lending pendulum moving more towards the middle starting with FHA’s loosening of their guidelines and credit score requirements.
If you have been turned down for a mortgage loan because your credit score was too low or you have a collection on your credit report it may be time to revisit your home loan qualifications.
Call or email me today me today for a loan consultation.