Plano Home Real Estate MortgageWhether you’re just out of college, recently married or simply haven’t jumped into the market yet, buying your first DFW home is an exciting prospect. It can also be an expensive one, which is why most people will take out a mortgage to help finance the cost.

If you are planning on engaging with a mortgage lender, you’ll need to have your finances in order. In today’s post, we’ll share a few key reasons why you’ll want to check your credit score well in advance of buying your first home.

Your Credit Score Is A Signal For Lenders

As you know, mortgage lenders have a responsibility to lend to those individuals and families who are at a low risk of default. So when a mortgage lender starts to dig into your financial background, they are looking at your credit history and credit score to help them assess that risk.

Note that having a low score doesn’t necessarily mean you have bad credit. If you’re still in your 20s and have only had a credit card, your score might be low even though you are fully capable of managing a mortgage.Plano Home Loan

Your Score Impacts Your Mortgage Interest Rate

As mentioned above, your credit score helps to signify your risk. If your credit score is in a lower range, perhaps a 640 or 660, you’re presenting a greater risk than someone with a score of 760 or 800. Because of this, the interest rate that you pay on your mortgage will in part be determined by your credit score. Those individuals who present a higher risk pay a higher rate to compensate. And vice versa, if your credit is spotless you can expect to pay a lower interest rate.

You’ll Need Time To Challenge Any Issues

Finally, you’ll need to give yourself some lead time to challenge any irregularities with your credit report. The credit reporting agencies aren’t perfect and they do make mistakes. There may be some old, retired credit card or other debt sitting on your report which is holding the score down. Even worse, there may be some incorrect delinquency or other error which ends up as a big red flag for potential mortgage lenders.

Plano mortgage ratesAs you can see, it’s worth spending the time to check your credit score. You get to check it for free once per year, so take advantage of the opportunity. And when you’re ready to discuss buying your first home, contact Warren Whitaker by phone or text at 972.523.8353 or Warren@Lendhome.com. He will share how to navigate the credit score and mortgage process so you can land the home of your dreams.

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Plano Texas real estateAre you thinking about buying a Plano house or condo? In many markets across the country, there’s never been a better time than now to become a homeowner. In this post, we’ll share a few reasons why the conditions are right to jump into the market and buy a new home.

Interest Rates Are Heading Up

If you’re like most home buyers, you’re probably looking to make use of mortgage financing to help spread out the purchase cost over a longer period of time. If so, you’ll want to make a move in 2017 so you can lock in a low interest rate. The Federal Reserve has indicated that interest rates are going to continue to rise over the next year or two. If that prediction holds true, mortgage costs will continue to grow along with rates. Buying in 2017 means that you’ll be able to secure a lower mortgage rate which in turn will save you money.

It’s A Buyer’s Market In Most Areas

Depending on the community that you’re looking to buy in, you may find that it’s a bit of a buyer’s market. There are a number of individuals looking to sell their homes to lock in the price Buyers Marketappreciation that’s taken place during the recovery since the 2008 financial crisis. More listings on the market mean that sellers will be open to negotiation as they won’t want their home sale to take weeks or months. If you’re pre-approved for your mortgage financing and are serious about buying, you may be able to convince a seller to take a lower offer than they normally would.

You’ll Start Building Real Net Worth

Of course, one of the best parts of buying a home is that it’s a significant financial investment. Properly maintained, your home should continue to increase in value over time. As you continue to invest in upgrades and renovations, you’ll build more and more equity that can be used as leverage for additional credit or just pocketed when you eventually decide to sell. Even though every market has its ups and downs, Plano home real estateowning real estate is a far greater path to prosperity than renting.

When you’re ready to get into the market and find your dream home, contact Warren Whitaker by phone or text at 972.523.8353 or Warren@Lendhome.comyour local mortgage professional to learn more.

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Plano MortgageThe decision to invest in a Plano home is a big one for many people, but if you’re making the foray into real estate the second time around, it’s even more important to be financially aware and prepared. If you’re wondering what you’ll need in order to get approved for an investment property, here are some things that you’ll want to consider before deciding a second property is in your future.

A Larger Down Payment

Due to the risk factor involved in taking on more than one loan, acquiring a second mortgage for an investment property will likely require you to put more money down up front. Because you’re already paying into your home and are taking on an additional loan, you’ll have to prove to the mortgage lender that you’re a viable choice and have the financial wherewithal to stick to your payment schedule.  Down payments for investment property ranges from 15% to 25%…

Knowledge Of The Markethome loan rates

It’s well and good to want to invest in a property so that you can find renters and turn a profit, but you’ll need to have a good place at the right price to make the investment worthwhile. Before you decide on a place, make sure that you research the neighborhood and the type of home you’re looking to buy so you can ensure there’s a viable market. A rental property is good, but you’ll need to have reliable renters in order to make it profitable.

A Property Manager

If you’re planning on being the landlord and doing all the little fix-its, you may not need to worry about a property manager. However, it’s important to weigh the decision carefully beforehand and ensure what will work best for you. If you’re not prepared to do emergency work or basic property maintenance, you’ll need to look for a property manager you can trust.

Plano Loan ApprovalA Mortgage Pre-Approval

Without a doubt, a second mortgage will require you to take on more risk, so it’s important to speak with a lender about pre-approval before getting too involved. If you’ve crunched the numbers, you may already have an idea of what you can and can’t afford, but a lender will be able to give you a price range that suits your financial position and income set.

Investing in a second property can be a financially lucrative decision, but it’s important to be knowledgeable about your investment and your finances before diving in. If you’re currently getting prepared to invest in a home, contact Warren Whitaker at 972.523.8353 or Warren@Lendhome.comyour local mortgage professional to learn more.

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Plano Home LoansIt may feel like a very daunting task to consider buying a Plano home after you’ve declared bankruptcy, and there’s no doubt that it’s an uphill battle. Fortunately, while you’ll have hard work ahead, there are things you can do in order to make your dream of home ownership a possibility. Whether you’ve just declared bankruptcy or some time has passed, here are some things you should consider before getting into the market.

Wait It Out

It might not be what you want to hear, but it’s, unfortunately, the case that you’ll have to wait at least two years before you purchase a home following bankruptcy. Since lenders will not want to take the risk on someone that has proven to have poor financial habits, they will require a waiting period in order for the credit risk you pose to improve. While this may seem like a long time, take the opportunity to improve your financial habits so you can be amply prepared when the time comes.

Build Up Your CreditPlano Mortgage

In order to own a home, you’ll need to develop some solid financial habits, and that means getting on top of your finances even in times when it feels like you have no leverage. Ensure you get a copy of your credit report and, if you notice any errors, reach out to the credit bureau for corrections. It’s also a good idea to consider applying for a secured credit card and ensure that you pay all of your bills on time. While it might feel like a lengthy task, developing good habits will have a positive impact on your credit over time.

Plano mortgage ratesPrepare For Your Payment

When it comes to a poor credit history, you’ll need to pull out every stop you can to that convince lenders that you’re a solid financial bet. Instead of wasting the time, write up a budget for yourself and save a sizeable sum for your down payment each month. It’s possible that 10 or 15% down will do, but a 20% payment will help you avoid private mortgage insurance (PMI) and will go further in convincing lenders of your reliability.

It’s more than a little disheartening to have to deal with bankruptcy, but by waiting it out and developing good financial habits in the interim, you’ll be well on your way to buying a home. If you’re currently preparing to purchase, contact Warren Whitaker at 972.523.8353 or Warren@Lendhome.comyour local mortgage professional to learn more.

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Home loan infoThe mortgage application process can be fraught with a lot of stress on its own, but if you’ve experienced issues with your credit in the past it can be even more taxing. While there may be a lot of things you may not be aware of when it comes to their impact on your credit, here are some things to watch out for if you’re planning on purchasing a Plano home in the short-term future.

Applying For Extra Credit

Whether you’ve just been offered a great new deal by a department store or you’re not even thinking about itPlano home rates, new credit cards can pop up with deals that are quite enticing in the moment. Unfortunately, applying for new credit can actually signal to lenders that you’ve run out of credit on your other cards. Not only that, it will also have an adverse impact on your credit score each time you apply for new credit. If you’re considering a mortgage in the near future, it’s a good idea to hold off on any additions to your wallet.

Not Paying Your Bills

It may seem straightforward enough that not paying your bills is going to land you in hot water with your credit score, but many people think paying the minimum at any time will do. The truth is that if you want to keep your credit in line and improve your odds, it’s important to pay your minimum before the due date and always pay your bills. The only thing deferring payments will do is add marks against your credit, and this will be damaging come application time.

Plano Mortgage RatesDon’t Avoid Your Credit Report

Many people who have a poor credit history are aware of the situation, but they’re also unwilling to address it. While it may be difficult to approach your credit report if you’ve had some hiccups in the past, it’s important to know what point you’re working forward from so you can move beyond it. Instead of ignoring it, get a copy of your credit report and review the numbers. Not only will this enable you to address any errors, it means you’ll be facing your issues head on.

There are a number of factors that can adversely affect your mortgage application, but by avoiding new credit and paying your bills on time you can have a positive impact on the result. If you’re currently in the market for a new home, contact Warren Whitaker at 972.523.8353 or Warren@Lendhome.comyour local mortgage professional to learn more.

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Plano HomeSo you’ve been pre-approved for a Plano Home mortgage – great! You’ve taken the first step toward becoming a Plano Homeowner. But before you start picking out china patterns, you’ll want to keep in mind that a pre-approval isn’t the same thing as a mortgage agreement. There’s still no guarantee that you’ll actually get a mortgage.

But why would a lender deny a mortgage after pre-approving a borrower? Here’s what you need to know.

Sudden Changes In Income Or Employment HistoryPlano Home Loan

A number of mortgages will require borrowers to have consistent employment for a certain length of time. If you apply for an FHA mortgage, for instance, you’ll be obligated to have an employment history dating back at least two years. Any gaps in your employment history will require a written explanation that your underwriter will need to approve.

If you switch career fields while in the process of buying a home and it has a significant impact on your income, your lender may deny your mortgage.

Credit Mismanagement After Pre-Approval

Lenders like to see consistency – so if your credit score suddenly drops after you’ve been pre-approved for a mortgage, it sends up a red flag. Even something as minor as a late payment on a cell phone bill could affect your credit score just enough to cause your lender to deny you. Pay extra attention to your bills throughout the home buying process, and make sure nothing slips past you.

Plano Real EstateTaking On More Debt In The Interim

A number of buyers will take on more debt after they’ve been pre-approved for a mortgage. Although it may be tempting to get a new car to go with your new house, getting a car loan will change your debt-to-income ratio and cause your lender to think twice about how responsible you are. If you’re in the process of buying a home, hold off on any other major purchases until after the deal has closed.

An Unsatisfactory Bank Appraisal

Sometimes, your mortgage can be denied for reasons that have nothing to do with you. Some lenders will only Plano Real Estateissue a mortgage if the property value of the house in question is appraised above a certain level. Others will deny a mortgage if the home requires roof repairs, electrical work, or a new heating system.

You’ll want to check with your lender to see what home conditions could be cause for denying your mortgage application.

Getting approved for a mortgage is a convoluted process at best, but a mortgage advisor can help you to navigate the approval process with ease. Contact Warren Whitaker at 972.523.8353 or Warren@Lendhome.comyour local mortgage professional for more information and for more tips on how to ensure you get approved.

Plano home loansThere is so much to know when it comes to Plano home ownership that even wading into all of the information can seem overwhelming, but if there’s one thing you need when the time comes to purchasing a home, it’s to be prepared. Here are a few ways that you can ensure you’re ready for what a mortgage entails so that buying your dream home will be a positive experience you won’t regret.

Consider All Of Your Options

Instead of accepting the mortgage that your bank is offering you, it’s very important to do some research and determine what some of the best options out there are for you. While it’s entirely possible that the option pushed forward by your bank will work out, in the days of so much information online it’s silly to go into your biggest purchase blindfolded. Take some time out and read about the products available so that, when the time comes, you can make an educated decision.

Know Your Credit Historyplano home loans

Lenders will most definitely be digging through your finances and credit history for anything that might make them leery of your financial state, but you’ll want to be aware of your own standing so that you can be prepared for what this might entail. By getting your credit report and score before going through the process of acquiring a mortgage, you can fix any errors that might be on your credit report so that you’ll be prepared for the result when the time comes for pre-approval.

Plano Home LoansPlan For The Future Possibilities

If the mortgage amount you are planning on paying seems feasible on a month-to-month basis, it’s certainly a good place to start, but with the ever-fluctuating state of interest rates, you’ll need to prepare for this reality at the same time. It’s important to base the amount you’ll be spending each month off of the income and expenditures that you’ve worked out in a budget, but you’ll want to add in some wiggle room so that a jump in the rates won’t sink your dream of home ownership.

There are many things to be aware of when starting the process of purchasing a home, but delving into your credit history and doing the necessary background research can make for a smoother experience. If you’re looking for advice on purchasing a home,contact Warren Whitaker at 972.523.8353 or Warren@Lendhome.comyour local mortgage professional for more information.

Plano home loanA monthly mortgage can seem like enough of a financial responsibility on its own, but there are many factors involved in Plano home ownership that affect its fiscal feasibility. If you’re in the market for a house in Plano, and are wondering how your income will stack up against the rest of your expenses, here’s how to determine a home cost that’s reasonable for you.

Determine Your Down Payment

Before you start with anything else, you’ll want to determine the amount of money you can put down so you can estimate your monthly payments. The traditional amount for a down payment is 3.5% to 20% of the home’s purchase price, so if you don’t have anything close to this amount it might be worth waiting a little longer so you can minimize your payments and the amount of interest or mortgage insurance you’ll be paying in the long run. Each person’s situation is different, and there may be programs available with less than 20% down and Down Payment Assistance. This is an excellent question to pose to your trusted mortgage advisor.

Calculate Your Monthly BudgetDown Payment Assistance

If your mortgage cost already seems high, it will definitely be worth carefully calculating your monthly expenditures. Instead of a wild guess, take the time to sit down and calculate what your costs are including food, utilities, transportation and any other monthly necessities. Once you do this, it’s also very important to add any debt repayments you’re making to the mix. The total amount of your estimated mortgage costs, debt payments and living expenses should give you a pretty good sense of if your mortgage is viable in the long term.

Don’t Forget About The Extras

Plano real estateWhen it comes to purchasing a home, many people envision that they will be eating and sleeping their new home so don’t pay attention to all of the additional costs that can arise with living life. A new home is certainly an exciting, worthwhile financial venture, but ensure you’re realistic about what it entails. If you’re planning to go back to school or have children in the future, you’ll want to add a little bit of extra cushion in your budget so that you don’t have to put your other dreams on hold for the sake of your ideal home.

It can be very exciting to find a home you feel good about, but it’s important before making an offer to realize the amount of house you can afford so you don’t find yourself in a hole down the road. If you’re starting to consider your options for a home purchase, you may want to contact Warren Whitaker at 972.523.8353 or Warren@Lendhome.com, one of our local mortgage professionals for more information.

Plano real estateThe real estate market and all the things involved in selling a home can seem complicated, and it can be very hard to know which tips to trust. While there’s plenty of great advice to go around from many knowledgeable sources, here are some of the best tips from home sellers who have made a successful sale.

Research Your Local Agents

When considering an agent that will meet your home-selling needs, it can be tempting to go with someone familiar or recommended through a friend who seems like a safe bet. However, it’s important to do your research and find an agent who has a number of “Sold” homes under their belt. Create a list of agents you’re impressed by and take note of their sales and agent fees, and keep in mind that you may want to lean towards an agent who has expertise in your neighborhood.

Get A Second Opinion On PricePlano real estate

Before you have an agent appraise the value of your home, it’s worthwhile doing some research on your end to determine the approximate value of your property. Once you’ve arrived at a figure, bring in the agents you’ve selected to appraise the value of your property. If one price is significantly higher than the other, it may be a red flag that an agent is trying to win over your business, regardless of whether the sale price is reasonable. In this case, you will want to choose the agent that provides the most appropriate appraisal.

Be House Ready At All Times

Plano real estateHaving potential buyers view your home will certainly make the idea of selling it real, so make sure that it is ready for viewing at any time. If a potential buyer cannot view your property or has to work around your schedule constantly to arrange viewings, there’s a pretty good chance that you may lose out on some good home offers. Instead of missing out, provide a set of keys to your real estate agent so they can show people around your home when you’re not around. This should automatically increase the likelihood of an offer on your home.

Heading into the real estate market can be a matter of trepidation if you’re not sure what to do, but by researching your agents and being prepared you’ll increase your chances of success. If you’re almost ready to put your home on the market, you may want to contact Warren Whitaker at 972.523.8353 or warren@lendhome.com for more information.

Plano home loanWhen delving into the realities of home ownership in Plano, TX, there can be many factors involved that make it difficult to determine what you need to know and what can wait until later. If you happen to be a first-time buyer who’s looking for the best tips for purchasing a home, look no further than the following three pointers to set you on the right path

Number 1 – Get Familiar With Your Credit Score

If you haven’t looked at your credit report for a long time, it can be a daunting task to request this information. Fortunately, your credit report is free from AnnualCreditReport.com and it will prepare you for what lenders are going to see. By taking this important step, you will be able to determine any delinquent accounts or balances owing that have gone to collections, and hopefully have these cleaned up before they can become a problem for your mortgage.  Be aware that the credit report from AnnualCreditReport.com WILL NOT include your mortgage credit score.

Number 2 – Determine The Price You Can or Want To PayPlano Home Loan

While you may have a price in mind for what you’re willing to pay for a home, it’s important to determine your debt-to-income ratio before putting in an offer. Your DTI ratio can be determined by taking your total monthly costs, adding it to what you would be paying for a home and dividing it by your monthly gross income. If it’s a housing price that will work for you, this amount should equate to less than 45%.

Number 3 – Organize Your Housing and Work History

If you have a good history as a tenant, the next step will probably be the easiest of all, but it’s very important in order to prove you’re a responsible candidate for home ownership. A lender will need a 2 year history of your home addresses plus a 2 year history of your employment address.  A lender will use your Gross Monthly Income (income before taxes) to determine your DTI.

Plano Home LoansThere are a lot of things to know when it comes to buying a home, but if you’re a first time buyer the most important thing is to ensure that your finances are organized and that you’re not diving into more house than you can be approved for. By taking the time to determine your debt-to-income ratio and looking into your credit, you can ensure a positive first-time buying experience. If you’re wondering about homes for sale in your area, you may want to contact Warren Whitaker at 972.523.8353 or warren@lendhome.com, your trusted real estate professionals for more information.

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