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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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 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.

The maximum FHA loan amount for the Plano,TX, Dallas-Ft. Worth area has increased from $310,500 to $334,650 for 1-family homes effective January 1, 2016.

2016_FHA_loan_limit

CLICK HERE to read HUD’s announcement.

The minimum down payment for a FHA loan remains the same at 3.5%.  In the Dallas – Ft. Worth area the maximum sales price with minimum down payment is $346,787.  FHA mortgage insurance, both upfront premium and monthly, remain the same.

FHA is usually used primarily by first-time home buyers since credit score requirements are less than the 660+ required for Conventional mortgages. One of the main attractions for FHA is that FHA allows documented gift funds for the down payment and closing costs from a family members or a Down Payment Assistance Program.Plano Mortgage Plano Loan

FHA is also popular for borrowers whose credit score is less than 660 since it is difficult/impossible for borrowers to obtain conventional mortgage insurance with minimum down payment and lower credit scores. Highlands Residential Mortgage FHA underwriting guidelines allow a minimum credit score of 620 and can allow scores down to 600 with extenuating circumstances.

PLANO HOME LOANS

FHA financing has fallen out of favor recently due to the increase in mortgage insurance rates.  The increase in mortgage insurance rates is due in part to the economic down-turn of the past 6 years.  Many times, the borrower is paying $100 more per month or more in mortgage insurance when compared to a similar conventional loan.  A lot of customers, with credit scores of 660 or better are now considering the option a conventional loan with a 3% down payment and using a Down Payment Assistance Program.  Generally the total out-of-pocket costs is the same, when compared to FHA, but the monthly payment can be significantly lower.  For more information about your particular situation, please call your Plano Mortgage Guy, Warren Whitaker @ 972.523.8353.

Plano home loansFHA loans are designed to help individuals take advantage of the benefits of Plano home ownership, and these loans have low down payment requirements. However, for borrowers who choose to make a down payment that is less than 20 percent of the sales price, the borrower will be required to pay a mortgage insurance premium with a monthly mortgage payment or a financed mortgage insurance premium option.

Mortgage insurance is in place to minimize the risk that the lender takes when making a low down payment (less than 20%) loan, but it does result in a higher monthly mortgage payment for the homeowner. Recently, the FHA has announced a lower rate for FHA mortgage insurance premiums, and this will help home buyers save money.

A Closer Look At The Reduced Premium

In January 2015, the FHA announced that the FHA premium rate would decline from a current level of 1.35 percent of the loan value to 0.85 percent. ThisPlano home loans has the potential to save home buyers hundreds of dollars per year in reduced mortgage payments, making home ownership more affordable. In fact, the FHA stated that it believes this reduction will help as many as 250,000 home buyers who currently do not qualify for a mortgage to purchase a home.

Calculating the Savings For You

The mortgage insurance premium is in place on low down payment loans until the home equity has accrued to at least 20 percent of the home’s value. This equity is essentially built up between principal reduction with regular monthly payments and increasing property values, but homeowners typically will need to prove that the equity is present before the mortgage insurance premium can be removed from the monthly payment.

Plano Home LoansAs a home buyer, it is important to know that you may be responsible for the mortgage insurance premium for several years or longer. Therefore, this reduced premium can result in considerable savings for you over time. You can use an online calculator to determine your actual savings and to calculate your monthly payment based on the new rate.

If you have not qualified for a mortgage in the past due to the addition of a mortgage insurance premium, you may consider contacting Warren Whitaker @ 972.523.8353 or warren@LendHome.com about your current options. The reduction in the premium rate will help many to qualify for the loan amount that they need, and you can speak with a representative about your financing needs and to request an estimate for your mortgage payment.

Plano MortgageIf you are thinking about buying a new home in the near future, you may already be searching online to get a feel for the different types of homes available in the local area. You may have reviewed your budget, and you may have a fair idea about a sales price that is comfortable for you to afford.

While you may feel as though you have taken the preliminary steps necessary to prepare yourself to buy a home, it is important that you also get a mortgage pre-approval letter for your financing before you starting hunting for that perfect new house or condo.

The Importance of a Pre-Approval LetterPlano Homes

A mortgage pre-approval letter is issued to a loan applicant after he or she has passed through a preliminary credit review process. Most of these letters state that the individual is pre-qualified for a property with a maximum sales price, and it is contingent on the loan applicant providing supporting documentation, such as tax returns and bank statements.

This letter gives you a better idea about what it will take for you to get final loan approval and what loan amount you may qualify for. The letter is also provided to a seller, and it gives the seller the confidence that comes with knowing that you are a qualified buyer. When a seller has an offer from a buyer with a letter and another offer from one without a letter, there is a good chance that the seller will opt for a buyer who is already pre-qualified for financing.

Plano Mortgage Home LoanHow to Get Your Pre-Approval Letter

As you can see, there are several reasons why it is important to get pre-qualified for your mortgage financing. Getting a pre-approval is generally a straightforward process, but it can seem intimidating. You will need to complete a loan application, and this may be done in person or online with Warren Whitaker, your Plano Mortgage Guy. You will need to provide authorization for the lender to pull your credit report as well as providing supporting documentation – Take a look at the checklist of information you will need to provide. After taking these steps, you typically will be able to receive a pre-approval letter within an hour or two.

When you have plans to purchase a new home, you likely will need to apply for financing in order to complete your plans. Getting a pre-approval letter up-front can help you in a number of ways, and you can easily take the steps necessary to get pre-approved for your mortgage. Simply Warren Whitaker @ 972.523.8353 or warren@lendhome.com today to get started with the process.

Renting a homeRenting a home is a good option for some, but buying a home just might be the best thing for you. When you rent a home, you send money to someone else every month in exchange for knowing that you can call on your landlord when the roof leaks, an appliance stops working or your bathroom faucet breaks.

There are some big advantages to buying a house that will help you get out of your renting rut and focus more on your future.

Build EquityPlano Home Loans

Did you know that when you rent a home, you help someone else build equity? Any changes that you make with your landlord’s approval puts money back in his or her pocket. Keeping the yard clean and taking care of routine maintenance builds equity in that property. When you buy a home of your own, you have the chance to build equity of your own, which you can use to obtain a loan later.

Save On Your Taxes

When you rent a house, you cannot deduct the money you spend on your taxes. Though some states will let you make a small deduction based on the total amount you spend in rent each month, you cannot make any deductions on your federal taxes. When you buy a home, you can save with a few different types of deductions.

The federal government lets you make a deduction if your home is worth more than what you currently owe on your taxes. If you purchased your first home, you can make a deduction in regards to your property taxes. You can also deduct money that you spend on some renovations and energy saving appliances.

Plano Home Loans Warren WhitakerPut Your Personal Touch On Things

As long as you continue renting, you live in a home that belongs to someone else. Your landlord has final say over what you do and do not do. This often means that you cannot make repairs or significant changes without seeking approval first.

Renting a home lets you put your personal touch on things. You can paint the walls any colors you want, rip out the carpet to add hardwood flooring or even make significant changes outside to turn your new home into your dream home.

Now that you know more about the benefits of buying a home and how that purchase can get you out of the rental rut you’re in currently, turn to a mortgage professional for assistance.

Resources

6 Good Reasons to Buy a Home Now-Kiplinger

10 Reasons To Buy a Home

9 Reasons to Buy

Reasons to Buy a Home

Top 5 Reasons to Buy a House Right Now

7 Reasons to Own Your Home

 

 

 

 

HomeLoan5The maximum FHA loan amount for the Plano,TX, Dallas-Ft. Worth area has increased from $278,500 to $310,500 effective January 1, 2015 for 1 unit.

CLICK HERE to read HUD’s announcement.

The minimum down payment for a FHA loan remains the same at 3.5%.  In the Dallas – Ft. Worth area the maximum sales price with minimum down payment is $321,761.  FHA mortgage insurance, both upfront premium and monthly, remain the same.

FHA is usually used primarily by first-time home buyers since down payment requirements are less than the minimum 5% required for Conventional mortgages. One of the main attractions for FHA is that FHA allows documented gift funds for the down payment and closing costs from a family members Plano Home Loanand it allows closing costs to be paid by the seller. (Remember, the seller is NOT paying the closing costs, but rather, including them in the price of the home.)

FHA is also popular for borrowers whose credit score is less than 660 since it is difficult/impossible for borrowers to obtain conventional mortgage insurance with minimum down payment and lower credit scores. Highlands Residential Mortgage FHA underwriting guidelines allow a minimum credit score of 620 and can allow scores down to 600 with extenuating circumstances.

Plano Home LoanPLANO HOME LOANS

FHA financing has fallen out of favor recently due to the increase in mortgage insurance rates.  The increase in mortgage insurance rates is due in part to the economic down-turn of the past 6 years.  Many times, the borrower is paying $100 more per month or more in mortgage insurance when compared to a similar conventional loan.  A lot of customers are now considering the option of coming up with an additional 1.5% more in down payment and negotiating with the seller pay buyer’s closing costs.  Generally the total out-of-pocket costs is the same, when compared to FHA, but the monthly payment can be significantly lower.  For more information about your particular situation, please call your Plano Mortgage Guy, Warren Whitaker @ 972.523.8353.

Resources

HUD: Current FHA Loan Limits

New HUD Loan Limits to Take Effect January 1st

FHA/Ginnie updates

FHA Announces New Loan Limits

 

Plano mortgage ratesIf you’re thinking about buying a new Plano home and using a mortgage to help cover some of the purchase costs, it’s a good idea to get an initial pre-approval from your lender before putting in an offer.

Today we will discuss three quick tips that can help to ensure that your mortgage pre-approval isn’t declined.

Demonstrate Your Income and Good CreditPlano Home Loan

A mortgage is a major financial transaction and one that carries a certain amount of risk for the lender. It’s your goal to help them see that you have the ability to make your monthly payments and that there is very little risk in approving your mortgage. Be ready to demonstrate all of your sources of income and that your credit rating is clean.

It may be worth paying for your credit report before starting the pre-approval process so you can clean up any black marks or false reports and so that you can see what the lender will see when they check your credit history.

Choose the Right Property at the Right Price

As the home you’re buying will be used as collateral to back the mortgage, the lender will need to see that there is enough value in the home to cover the cost of the mortgage should you fail to pay it back. The “loan to value” or LTV ratio is the amount of your mortgage divided by the value of the home. For example, if you’re borrowing $150,000 to buy a home valued at $200,000, you’ll have a LTV ratio of 75 percent. Keep in mind that each lender will have their own target LTV that they prefer to work with, so you may need to shop around a bit.

Plano Loan ApprovalStart the Process with Multiple Lenders

Finally, if you feel that your income or credit history isn’t perfect you may want to consider visiting a couple of different mortgage lenders to see what they can offer you. There are dozens of different mortgage products on the market today, and each lender has their own set of qualification criteria that they will use to assess risk and whether they feel that you can afford to pay the mortgage back. Getting a second opinion may help you to discover a more suitable mortgage or one with a better interest rate.

As you can see, there are a number of ways that you can work to ensure that your mortgage pre-approval passes without a hitch. For more information about pre-approvals and to get the process started, contact Warren Whitaker with Highlands Residential Mortgage @ 972.523.8353. After you’re approved it’s only a matter of time before you’ll be moving in to your new home.

Resources

6 Tips To Get Approved For A Mortgage

Top 10 Tips For Mortgage Borrowers In 2014

5 Tips For Getting a Mortgage in Today’s Housing Market

4 Tips to Surviving the Mortgage Approval Process

Mortgage Approval Tips

 

Plano Mortgage RateWhether you’re just starting to shop for a new home or you’ve found the perfect house and are crafting your offer, if you’re taking out a mortgage to help cover your real estate purchase you’ve likely given some thought to your down payment.

Today we’ll explore the topic of down payments and share how the amount you put down on your home will affect your Plano home mortgage.

How Your Plano Down Payment Affects Your Mortgage

As you know, your mortgage is essentially a large long-term loan that is paid back with interest over a set time period. If you put a large down payment against the purchase, you will not only reduce the amount that you’ll need to pay back, but you’ll also reduce the lender’s risk and this may allow them to provide you with lower interest rates.

Conversely, if you can’t place very much down on your home and you’re left borrowing as much as you can you may find that your mortgage comes with Plano mortgage rateshigher interest rates or that some mortgage lenders refuse your business entirely.

The Gold Standard: 20% of the Purchase Price

For the vast majority of homeowners it’s expected that they will be able to contribute at least 20 percent of the home’s purchase price. For example, if you are buying a $200,000 house you’ll need to have at least $40,000 available for your down payment. Note that the 20 percent figure isn’t a hard requirement; some mortgage lenders will be willing to approve you with less, but you may be subject to private mortgage insurance, higher interest rates and more.  Highlands Residential Mortgage minimum down payment is 0% on VA and USDA loan programs, 3.5% down on FHA, and 3% down on Conventional.  Again, anything less than 20% down will require mortgage insurance.  Please call Warren Whitaker @ 972.523.8353 for a quick consultation on qualifying.

Plano Home LoanSaving Up Your Down Payment

Depending on your financial situation and the cost of your home you may find that saving up 20 percent of the purchase price to put toward a down payment places a strain on your finances. If you still have a year or more before you’re ready to jump into the real estate market, consider putting some money aside each month that can be used for a down payment. If you receive any lump sum payments like a tax return, save this in your down payment fund as well.

As you can see, your down payment is one of the more important considerations you’ll have to make when buying your home with a mortgage. If you have questions about mortgages or down payments, be sure to call your local mortgage professional today as they’ll be able to share their guidance and expertise to help you make the best financial decision.

Resources

Watt wants to slash city homebuyers’ down payment

Real Estate Matters | How to find the best low downpayment deal

Dave Says: Without down payment, buying a house

Low Down Payments Are Coming Back

 

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