Buying a home is quite possibly the largest investment you will ever make. However, before you go to a lender and start filling out an application, there are some things you need to do to make sure you’re approved for your mortgage and you can handle the payments. Here are five things to do whenever you start thinking about buying a home.

#1 – Raise Your Credit Score

If there’s one rule that stays the same in the real estate world, it’s the fact that a higher credit score will always get you a lower monthly payment. Along those same lines, a lower credit score will get you a higher interest rate, if you’re even approved for your loan at all. Pull your credit reports from all three bureaus (you’re entitled to one free report per year from each) and look for inconsistencies or things you can pay off to raise your score. Look at things like credit utilization, and keep your inquiries to a minimum. read more

Although US officials and the FBI work hand in hand to put a stop to mortgage fraud, there are still con artists out there who won’t think twice about making you their next victim. The best way to avoid mortgage fraud is to know what to look for. Here are some tips and tricks that can help keep you safe.

#1 – Never Make a False Statement on a Loan Application

Filling out loan applications can be an arduous task, especially if you’re applying through more than one lender. One of the tactics often used by mortgage fraudsters involves asking you to overstate your income or lie about where you got the money for your down payment. These are surefire signs that the lender isn’t truly vested in your best interests and just wants you to sign your name on the dotted line. If a lender asks you to falsify information on your application, do not do business with them. read more

Thanks to “Brexit”, the term the media is using to describe England’s secession from the European Union, homeowners in the United States are enjoying a financial bonus. Mortgage interest rates are dropping, which has led to a 21% increase in refinances. The number of applications to refinance has climbed by 113% in just one year.

Close to Record Lows

According to Mike Fratantoni, the chief economist for the MBA, or Mortgage Bankers Association, Brexit has brought the US back to near-record low interest rates considering the fact that jumbo rates are already at their lowest levels. The Federal Reserve has made changes to the mortgage bond market, which allows banks to offer qualified borrowers low interest rates. However, Fratantoni points out that borrowers shouldn’t wait to lock in their rates; he’s forecasting a rate of 4.8% by December 2017 – the highest since 2009 and 30% more than current rates. read more

Brexit is the hot topic in the news these days. With the UK’s decision to leave the European Union, economies all around the world are changing. In fact, the impact on mortgage rates right here in the US has been tremendous, and many experts cite that they are slated to hit all-time lows.

Understanding Brexit

The people of the United Kingdom voted to leave the European Union, or EU, on June 23, 2016. The entire world was shocked with the news that the UK would no longer be a part of the EU. More than 30 million people in that nation voted on the topic, and 52% of the country agreed that it should leave the EU. However, the processes by which the UK actually makes its exit could take some time, and until then, the UK is still bound to laws and agreements set forth by the European Union. read more

Buying your first home is certainly exciting, but it can also be nerve-wracking if you aren’t prepared. The two main things you’ll need to think about are your overall credit. Here are the steps involved in creating a financial plan to make buying your first home simple and relatively painless.

#1 – Obtain a Copy of Your Credit Report

Getting a mortgage is undeniably the most difficult part of the home-buying process. Over the last several years, lenders have become increasingly strict when it comes to extending credit, and if they have reason to believe that there is any risk at all in lending to you, you may not be able to obtain a mortgage. Anything but an “excellent” credit rating may also result in high interest rates, too. Obtain a copy of your credit reports (they’re free once per year) from Experian, Transunion, and Equifax, and review them carefully. read more

Finding the absolute best mortgage lender out there is certainly challenging. After all, you need to find someone who is willing to work for you, not the seller or the bank providing your mortgage. You’re making a decision that will affect you for the next 15 to 30 years of your life, so it is vital to make the right one. Here are some tips that will help you find a mortgage professional that keeps your best interests in mind.

Remember that Mortgage Brokers and Lenders Are Salespeople

Before you even start to find a broker or lender to work with you, remember that in the end, they are all salespeople. It is their goal to sell you a home so that they can make money off of that sale; like real estate agents, if they don’t sell homes, they can’t pay the bills. As such, keep this in the back of your mind whenever you’re speaking to a mortgage professional. Ask yourself whether this person or company is truly trying to help you get the best deal, or if they’re just trying to line their pockets. It’ll help you make better decisions along the way. read more

If you have less-than-perfect credit scores or some financial challenges in the past, you shouldn’t give up hope when it comes to buying a home. Federal Housing Administration loans, commonly called FHA loans, can help you get the home of your dreams. Here are five things you should know about FHA loans before you get apply.

#1 – It Isn’t Government Money

The most common misconception associated with FHA loans is that the money for the loan comes directly from the federal government. This is not the case. FHA loans are provided by the same lenders who offer traditional mortgages. The only difference is that the federal government essentially insures the loans, which helps the lender recoup its losses in the event you default on your loan. In fact, the lender still gets to determine all of the rates and terms associated with an FHA loan, and this is why the criteria for qualification varies so drastically. read more

The option to take out a mortgage for a home with absolutely no money down – no down payment and no closing costs – may seem too good to be true. However, there are plenty of lenders out there who appeal to first-time homeowners with this sort of offer. Here are some reasons why 100% financing might not be the best idea.

The Interest Rates Are High

When you take out a mortgage, it might be tempting to consider an offer that lets you get started with no money down. However, keep in mind that as soon as you sign your mortgage agreement, you’ve agreed to pay a certain amount of interest over the course of 15 to 30 years. That introductory offer might look fantastic, but the interest rates you will pay over the course of your mortgage are extraordinarily high. It’s better to save at least some of your down payment, if possible. This shows financial responsibility and may help you get a lower interest rate. read more