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 real estateWithout a doubt, it can be both overwhelming and exciting to find your dream Plano home and be able to put the money down for it. However, there are a lot of things to know before signing on the dotted line so you can avoid buyer’s remorse. Instead of going it alone, here are a few tips to keep in mind before you decide to commit to your new home.

A Good Agent Is Important

Many homeowners want to find the right place on their own, but having an agent along to assist you in the process can go a long way towards finding your ideal home at the right price. Instead of risking it, choose an agent that comes highly recommended and has an abundance of experience in the business.

Is The Price Right?Plano Texas real estate

It’s easy to be taken in by a beautiful home, but before putting money down you’ll want to calculate your debt-to-income (DTI) ratio to make sure it’s within reach. You may feel like you can make it work, but paying a too-high mortgage will become a drain over time and may ruin the happiness of your home investment.

What’s The Potential?

When it comes to first-time buying, many potential homeowners go into it with unrealistic expectations. However, demanding too much of your investment can mean you miss out on the gems that have a lot of hidden potential. Instead of saying ‘no’ right away, consider what you can improve for little cost.

Researching The Neighborhood

The focus for many homeowners is definitely the house, but ‘location, location, location’ is a cliche; for a reason. Instead of focusing only on your home, ensure you’ll be living in a neighborhood where you can feel safe and will have access to all the amenities you need.

Plano Real EstateInvesting In An Inspector

A home inspection may feel like a formality, but it’s important to have the right inspector so they will notice maintenance items that can hugely impact your finances. While little items that need to be fixed-up are not a big deal, issues with the foundation or the roof can cause major grievances if they’re not detected.

There are a lot of things to keep in mind when it comes to buying a home, but by doing your research and being aware of your financial outlook, you’ll be well on your way to a good investment. If you’re currently in the market for a home, please 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 homesWhether you’re trying to improve the look of your home or are getting ready to put it on the market, the idea of renovations might seem like a significant financial burden to take on. Fortunately, there are a variety of easy solutions for improving the look of your home without spending a lot of money. If you’re wondering how you can spend $100 wisely, look no further than the following upgrading tips.

A Funky Light Fixture

It might seem like a cool light will cost an arm and a leg, but there are plenty of options available on the market that will instantly add a unique touch to your place. Whether you decide to go mod or classic, a fixture can draw the eye and instantly add interest to a room.

A Makeshift Curio Cabinet

In these days of smaller living, many people have to pile their stuff into closets and cabinets in order to make it all fit. Fortunately, a bookcase-cum-cabinet can be an inexpensive purchase and can house a variety of items like books, dishes and appliances for an easy, eclectic look.

Covering The CabinetsPlano Home Loan Plano Mortgage

Kitchen cabinets are often one of the first things to show age in a home, but getting out the can of paint can be a great way to instantly modernize their look. While you’ll want to go with a neutral tone that will compliment the space, the right color can add instant oomph.

Re-Upholstering A Chair

There are pieces of furniture in your home that you may be tired of looking at, but there’s an easy way to improve them without buying new: re-upholster! By trying out a new fabric on one of your favorite chairs, you might be surprised by how much it improves the room.

Plano mortgagePaint Does The Trick

Painting may be one of the least popular renovation tasks, but few things are as successful at improving the look of your home as a fresh coat of paint. Instead of going all out with a bright color, choose a neutral shade that complements the furniture for an instant brightening effect.

Home renovations may seem like an expensive endeavor, but you can easily improve the look of your home with a new light fixture or by giving your furniture some love. If you are interested in making valuable renovations to your 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 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 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 estatePurchasing a home is often considered an important step in one’s financial life, no matter what point you arrive at it, but there are things you should know about financing your home purchase before stepping into the fray. If you’re planning on buying a home soon and want to avoid some major missteps, here are a few tips that will set you up for success.

Taking The Lender You’re Offered

In the event that you’ve been pre-qualified for a certain amount, you’ll want to find a lender that will make the process towards a home purchase a little bit smoother. Instead of going with the first option that’s offered, do some research and come up with a shortlist of potential lenders that have good reviews and have been around the industry for a significant amount of time. The process will be a lot more comfortable if there’s someone on your side you know you can trust.

Keeping Your Credit History In The Darkplano home loans

Without a doubt, the lender will be looking at your financial history in order to determine the amount of financing you will receive, but it’s still important to be prepared on your end so that you know what to expect. Start by acquiring your credit report so that you can correct any inaccuracies on it and be prepared for what this score will say about your financial viability. When it comes to the financing you’ll need down the road, the right information on your credit report will make a difference in the end result.

Plano home real estateForgetting About The Loan Officer

If you’ve already established who your lender will be, it’s still important to meet with the person who will be handling your loan and make sure they’re someone you can trust. Ensure that you are aware of their qualifications and that they have enough previous experience in their back pocket to provide you with insights that may come in handy. While having a reliable lender is certainly a good start, the right individual to handle your loan will be someone who is licensed and involved with a local, professional mortgage association.

All of the things involved with mortgage financing can be quite complicated, but by finding the right lender and preparing yourself for the tough financial questions, it can be a much easier experience. 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 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.

Plano rentIf you’re at the stage in life where home ownership is nearly within your reach, you’re probably wondering whether you should start looking for a Plano home or whether you should just keep renting. Renting is easier and less hassle – people say, and it gives you more mobility. But…over the long term, all that rent money can really add up – and it eventually reaches a point where buying a home is a better deal.

So why is paying a high rent a worse option than buying a house and getting a mortgage? Here’s what you need to know.

Renting Doesn’t Generate Equity

One of the single biggest sources of wealth in the United States is home equity – as you pay down your mortgage, you invest more and more of your Plano Rental Homemoney into your property, and it appreciates in value. When you eventually sell that home, you make a profit. The monthly payment is something you’d have to make anyway, whether you rent or own – but when you rent, your monthly rent money lines someone else’s pockets, while when you own, paying down your mortgage actually creates wealth for you.  In the DFW area, residential real estate has appreciated between 8% and 15% per year.  Take a look at this recent Dallas Morning News graphic.

Renting Doesn’t Give You Access To Homeowner Tax Credits And Deductions

There are all sorts of tax benefits available to homeowners that renters simply can’t access. As a homeowner, you can deduct your mortgage interest from your taxes owing, reducing your taxable income – but there’s no such deduction for renters. You can also deduct property taxes and some closing costs when you buy a home – there are no corresponding tax benefits for renters.

There are also several tax credits available to homeowners that aren’t available to renters. Things like renovations or simply buying a home for the first time can give you tax benefits that renters can’t access.

If You Can Muster Up A Down Payment, Owning Is Cheaper In The Long Run

One of the biggest hurdles keeping young people out of the real estate market is the down payment. It’s not easy, but if you can save up enough money for a down payment, you’re actually better off buying a home than continuing to rent.

Plano real estateAccording to NTREIS, the median sales price of single-family homes sold by North Texas Realtors was $204,000. That’s up 9 percent from a year earlier, while the median monthly rent for an apartment is $1,550 in North Dallas. That means renting would cost $18,600 per year, while buying a home (assuming a 20% down payment and 30-year term) would cost $15,000 per year in mortgage payments. In other words, owning is about half as expensive as renting in the long run.

Don’t Forget About Down Payment Assistance Programs

Say What?  That’s right – Down payment assistance programs are often utilized by first time buyers as the tool to get into their first home by providing up to 5% of the loan amount as down payment assistance.  The DPA is a gift/grant that never has to be repaid. Qualifications do apply for all DPA programs.

Rent vs. Buy Calculators

For more information about determining if renting or buying a Plano Home, take a look here and utilize this nifty calculator.

Renting may be a good short-term solution, but over the long haul, owning is almost always better. Call Warren Whitaker at 972.523.8353 or Warren@LendHome.com, your mortgage professional to learn more about Down Payment Assistance Programs and how to qualify.

DTIThe real estate market is rife with terminology that can make a Plano home purchase seem more than a little complicated. If you’re currently looking for a Plano home and are considering your loan options, you may have even heard the term ‘Debt to Income’ ratio. In the interest of simplifying things, here are some insights on what this term means and how it can impact your home investment.

Determining Your ‘Debt to Income’ Ratio

It’s important to consider what exactly your Debt-to-income or DTI ratio is before your home purchase as this will quickly determine how much of a home loan you can actually qualify and be approved for. To calculate this number, take your monthly debt payments – including any credit card, car loan, student loan, child support, and mortgage payments – and divide them by your monthly gross income to get a percentage. For example, your total monthly debt is $700 + your new monthly home payment is $1600 = $2300 and you make $5800 per month in gross (before taxes) income, your DTI is 40% (2300 / 5800 = .40).

 What Your DTI Means To The LenderDTI

The DTI is a very important number when it comes to a home loan because it enables the bank to determine your financial situation. A DTI of 25% leaves some wiggle room, as most Lenders will allow a DTI percentage that runs up to 43%. In the case of the above example, this means that the most debt this person could take on per month is about $1749. While banks vary on this percentage, credit history plays an important part in the DTI that will be allowed.  With excellent credit, stable income, assets and reserves in the bank after closing, Highlands Residential Mortgage could potentially allow up to 54% DTI.

DebtPaying Down Your Debt Or Purchasing A Home

In the event that you have a DTI ratio that exceeds what your bank will allow, you will need to consider your debts before moving on to investing in a home. If you’re planning on purchasing a home in the next year, it’s a good idea to tackle high-interest debt first. However, if you happen to have a chunk of money saved up that you’re planning on putting into a down payment, it’s worth considering that putting more than 20% down may slightly increase the DTI percentage your bank will accept.

There are many fancy terms that go along with the world of real estate, but it’s important to understand what they mean so you can make them work in your favor. If you’re calculating your DTI ratio and are planning a home purchase down the road, call Warren Whitaker at 972.523.8353 or Warren@LendHome.com, your trusted mortgage professionals for more information.

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