Looking for your new home can feel like a daunting task, especially if it’s your first time going through the home buying process.  Sometimes, all of the choices may feel overwhelming. You want to make the best decision for yourself and your family. Here’s a quick list of three common pitfalls that some home buyers experience:Choosing to Skip the InspectionA home inspection is a necessity. This is your opportunity for a professional to uncover any potential problems in a property that you cannot see. Or even something that you might not have known to check. Your new home is likely the largest financial investment in your life, so think about your home inspection as a type of safety net to prevent you from getting repair surprises right after you move into your dream home.Not Planning Ah... 05/11/2018

Many first time home buyers often wonder what factors determine their mortgage rate. Is it their credit score? Is it the type of loan chosen? Is it the size of the loan?The truth is, there are many factors at play. Mortgage interest rates are not standardized across the board, so they vary from lender to lender and from borrower to borrower.Here are 5 common factors that determine or affect your mortgage interest rate:1.    Default RiskRisk is a key consideration when determining mortgage interest rates. Banks and other lenders are in a risky business because there is always a chance of a borrower defaulting on their loan repayments. This is known as default risk. Banks and lenders therefore charge riskier borrowers higher interest rates to discourage them from borrowing, as well as to ... 05/02/2018

Last week’s economic reports included readings on builder confidence, housing starts and building permits issued. Weekly readings on mortgage rates and new jobless claims were also released.NAHB: Builder Confidence Drops by One PointThe National Association of Home Builders reported that builder confidence dipped by one point in April to an index reading of 69. While any reading over 50 indicates positive builder sentiment, NAHB noted that builder sentiment has decreased for the past four months.During the housing bubble of 2004 and 2005, builder confidence in market conditions averaged 68, but analysts said that the post bubble crash in home values was preceded by several months of decreasing builder sentiment. Builders are maintaining a steady approach to housing starts despite high d... 04/23/2018

Last week’s economic reports included readings on inflation, the minutes of the most recent meeting of the Fed’s Federal Open Market Committee and weekly reports on mortgage rates and first-time jobless claims. The University of Michigan released its Consumer Sentiment Index for April.Inflation Grows, Fed Indicates Future Rate Hikes LikelyThe minutes of the Federal Open Market Committee Meeting held March 20 and 21 indicate Fed policymakers are likely to increase the target federal funds rate at their June meeting. Economic indicators including strong labor markets and low unemployment rate were cited as contributing to expectations for federal rate hikes throughout 2018.How the Fed moves on interest rates affects private sector interest rates as financial institutions typically follow ... 04/16/2018

Whether you are hunting for a project that will pry the kids away from their phones or you just want a head start on the spring, few home projects are as rewarding as a vegetable garden.Invest a few hours in planting today, some maintenance throughout the year and soon you’ll be enjoying some delicious, home-grown veggies. Ready? Let’s get started!Selecting The Right Spot For Your GardenThe first decision you will need to make is where your garden will live. If you are new to gardening, you can start with a small patch of land in the corner of your backyard. The area needs to have full exposure to sunlight at least six to eight hours each day. Your plants will also need watering, so ensure that your hose can reach the plot or that you have another water source nearby.Having good soil is... 04/13/2018

When the chatter was at its peak on the 2018 tax law changes being proposed, one of the big areas of concern for homeowners was the elimination of the mortgage interest deduction. Right behind that issue was a similar treatment with regards to property tax deductions.As the rumors swirled and Congress moved, many feared both deductions had finally met their day and were going to be entirely eliminated, resulting in a major financial hit that many homeowners and particularly those in high real estate cost states would have felt painfully. As it turned out, there’s no reason to panic or suddenly dump titled real estate just because it has been bought with a mortgage. Yes, both issues were impacted by the 2018 tax law changes, but neither the mortgage interest deduction nor the property ta... 04/11/2018

Last week’s economic reports included readings on construction spending, mortgage rates and weekly jobless claims. Other labor-related claims included ADP payrolls, Non-Farm Payrolls and the national unemployment rate.Construction Spending Rises in FebruaryConstruction spending was higher in February according to the Commerce Department. Spending on building projects rose by 0.10 percent in February Reuters reported that construction spending rose 0.10 percent as compared to expectations of an 0.40 percent increase and January’s unchanged reading. Seasonal weather conditions typically cause lulls in building. Analysts said that residential construction spending increased by 0.10 percent to its highest level since January 2007.Real estate analysts have consistently indicated that buildin... 04/09/2018

US homeowners now have over 5 trillion dollars in home equity which is a very large amount of money! So this year may be the year for a lot of cash out refinances and other home equity mortgage products. Most often, when you are purchasing a home, you are buying at or below the appraised value and you are making a down payment.The good news is this means you have “instant equity” in your home. And over time you build more equity as you make your monthly mortgage payments as well as any potential home price appreciation.This build up of equity gets some homeowners thinking about taking cash-out from your home to pay off credit card bills, purchase a car or pay for college expenses. However, it is important understand, there are rules as to what can and can’t be done.Cash out refinance, e... 03/27/2018

In recent years, building an environmentally friendly home or updating an existing home to be more energy efficient has become much more mainstream. While building an entirely green residence isn’t always fiscally possible, simple eco-friendly building techniques and upgrades will ultimately lower your water and electricity bills.These green home improvements will save you money in the long run, while also saving the planet. The following are some of the easiest ways to lower your carbon footprint when building or updating a home. Build or Purchase a Smaller HomeSmaller homes naturally have a lower impact on the environment. There is less square footage to cool and heat, which keeps energy consumption down. However, this doesn’t mean that you need to give up your dream home. Instead, cr... 03/21/2018

Last week’s economic news included readings From National Association of Home Builders, Commerce Department reports on housing starts and building permits issued Weekly readings on mortgage rates and new jobless claims were also released.NAHB Posts 3rd Consecutive Decline in Builder ConfidenceAccording to the National Association of Home Builders, builder confidence in housing market conditions dropped by one point in March to an index reading of 70. Three sub-categories of builder sentiment used to calculate the overall reading were either unchanged or lower than February readings. Confidence in current market conditions were unchanged at 72, Builder confidence in market conditions for the next six months fell two points to an index reading of 78. The index for buyer traffic in new hou... 03/19/2018

Several generations ago, lenders required home buyers to have a 20 percent down payment in order to get a mortgage. While there were a few options out there for people who couldn’t save this substantial amount, the reality was that for the majority of people, the 20 percent down was a requirement.It was the way to show that you were financially responsible enough for homeownership. And it was a strong way that the banks felt secure in making a home loan.Today, however, homebuyers have many options available to them as they shop for a new home, and those mortgage options mean that the 20 percent down payment is no longer as much of a requirement. For most buyers, especially those who do not have the equity of an existing home to help with their purchase, the 20 percent down payment is no... 03/15/2018

U.S. military veterans have opportunities to enjoy some richly-deserved benefits in other aspects of their lives, including some special options for financing their homes. VA loans may give active military personnel, retired veterans, and sometimes surviving family members of veterans the ability to purchase homes that might not prove available to them through more conventional mortgage loans.But the mere fact that you can do a thing doesn’t necessarily mean that you should. In some circumstances, military home seekers may find other types of loan options more amenable to their specific needs.If you’ve decided to pursue a mortgage loan during or following your military career, you may want to examine these considerations before leaping into a VA loan application.Loan Qualifications and ... 03/07/2018

When you are considering purchasing a home , understanding the lending guidelines regarding a down payment is important. Here are a few key tips to consider:Gifting of a Down PaymentThere are some programs that will allow you to use a gift for your home down payment. However, before you assume this, make sure you talk to your loan officer. Generally speaking, the lender will require the person making the gift to provide a letter stating the money was a gift and does not require repayment.Windfalls as a Down PaymentWhen people hit the lottery or come into money through an inheritance, one of the first things they may consider is buying a new home. However, it is important ot keep in mind that lenders will typically want to know exactly how you came up with your down payment.Borrowers sti... 02/27/2018

Whether you are purchasing a new home or you are considering applying to refinance your home, chances are the lender will require an escrow account. These accounts are often a source of confusion for homeowners. In reality, these accounts benefit the homeowner and help protect the lender.What is an escrow account?Escrow accounts are sometimes called “impound” accounts. These accounts are set up to help manage payments of property taxes and homeowner’s insurance. Depending on the individual requirements of the lender, you may be asked to pay as much as one-quarter of these upfront and they will be put into the account for the purposes of making payments.Who controls escrow accounts?Lenders have complete control over escrow accounts. However, homeowners are entitled to receive an annual s... 02/21/2018

Homeowners insurance and title insurance may not be the only kinds of insurance you need when you buy a home. Many buyers also have to purchase mortgage insurance, which lenders require for mortgages with a down payment of less than 20 percent. Take the time to understand what you’re buying and how long it will affect you.Mortgage Insurance Protects the LenderMost types of insurance will pay you if you make a claim. Mortgage insurance, though, is solely for the lender. If you were to stop making payments and the lender foreclosed on your home, the mortgage insurance would pay the lender the difference between the profit from selling your home and the amount you still owed on your mortgage.Types of Mortgage InsuranceWhen you have a mortgage with a traditional lender, you get private mort... 02/14/2018

Are you thinking of buying a new home this spring or summer? If so, you’re not alone. Many thousands of individuals and families alike will become homeowners this year. Whether you’re a first-time buyer or a seasoned veteran of the housing market, you probably know there are significant choices to make. One of the big decisions you will have to ponder is how much you want to invest in your down payment.With that in mind, let’s try to answer the question of whether or not it is worth it to put more than 20 percent of the home’s price in your down payment.Ask Yourself: How Liquid Are You?Before you can decide how much to put down, you first need to determine how liquid your finances are. That is, how much cash do you have access to? For example, if you are considering a $300,000 home, a 2... 02/09/2018

Last week’s economic releases included readings on pending home sales, Case-Shiller Home Price Indices and construction spending. The Federal Open Market Committee of the Federal Reserve released its monthly statement and weekly readings on mortgage rates and new jobless claims were released. Last week’s economic readings wrapped with a report on consumer confidence.Case-Shiller: Home Prices Rise in NovemberHome prices rose an average of 0.70 percent monthly and 6.20 percent year-over-year according to Case-Shiller’s national home price index for November. Seattle, Washington posted the highest year-over-year home price growth rate at 12.70 percent. Las Vegas, Nevada posted year-over-year home price growth of 10.60 percent and San Francisco, California posted a home price growth rate of... 02/05/2018

Do you have an empty basement or separated suite in your home? If you have a suite sitting empty, you are missing out on collecting some extra monthly income in the form of rent. Let’s take a look at a quick four-step process that will help you find the perfect tenant to rent out your basement suite.Step 1: Play By The RulesIs this your first time renting out a home or suite to a tenant? If so, you will want to do a bit of research first. Read up on Fair Housing Rules and other regulations as these will inform you of your responsibilities as a landlord. Keep in mind that you cannot discriminate in any way when it comes to race, religion, gender, family status or disability. Anyone who applies must be given a fair chance.Step 2: Be Specific In Your AdvertisingWhen you place a rental list... 02/01/2018

Last week’s economic news included releases on new and existing home sales along with weekly readings on mortgage rates and first-time jobless claims.Home Sales Fall Due to Slim Supply of HomesDecember sales of previously-owned homes dipped to an 18-year low with a reading of 5.57 million sales on a seasonally-adjusted annual basis. Pre-owned home sales were expected to reach 5.73 million homes based on November’s downwardly- revised reading of 5.78 million sales. December sales were 3.6 percent lower month-to-month, but were 1.10 percent higher year-over-year.Analysts credited the shortage of sales to tight inventories of homes for sale. Low inventories of homes for sale have worsened, a situation that sidelines would-be buyers due to the slim selection of homes, rapidly rising prices ... 01/29/2018

If you are a homeowner who has had their mortgage for a few years, you may be starting to wonder about refinancing. In essence, this is the process of retiring your current mortgage and taking out a new one because the terms are more favorable to you. Below we will share three reasons why you might want to look at refinancing your mortgage this year. Let’s get started.Can You Use Some Extra Cash?Ask yourself: if you had some extra money on hand, how would you use it? Many homeowners refinance to pull out some of the equity value that they have built up in their home over time. You might use this cash for a major renovation, or to upgrade your furnishings, or even just for a nice vacation.Of course, you should keep in mind that you are borrowing a brand-new mortgage loan that will replac... 01/26/2018