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Why Using one of the Online All Digital Mortgage Methods Rather than a Professional Banker is Not a Good Idea

Posted on August 30, 2017 by Scott Li

More and more financial services are being offered online these days. One that has recently seen a surge in popularity is digital mortgages. Although online home loans are convenient, there is an inherent risk involved. Here are just a few reasons why an Internet broker (or E-Broker) might not be best.

Not Really Applying

Many people believe that by filling out a mortgage application online, they are actually applying for a loan. That’s not necessarily the case, as you could be entering your information into a database instead. From there, your data might be disseminated to an unlimited number of companies, who would then begin flooding you with offers that may or may not be legitimate. read more

Want to Buy a Home? It’s Important to Stay Calm During the Loan Process

Posted on August 28, 2017 by Scott Li

New homeowners cannot wait to take possession of their new property. Even so, it is easy to lose sight of your goal when you are bogged down with getting a mortgage. The loan process can be frustrating, but it is important to stay calm regardless-here’s why.

#1. The Unexpected Can (and Usually Does) Happen

No matter how carefully you plan, situations can arise at any point from the initial application to the closing. A good number of them are out of your control, such as when you discover that your home appraises for less than what you have offered. If you become stressed, you will not be able to focus on finding a workaround for your problem. read more

How the Greater Philly Area Real Estate Market has Changed

Posted on August 24, 2017 by Scott Li

Philadelphia has long had a high rate of home ownership, largely due to mortgage prices that are much lower than rent. However, there is some indication that the gap between rent and mortgage payments is narrowing somewhat. What is causing the change, and how has it affected the real estate market? Here is an overview of recent market fluctuations.

Philadelphia’s Current Housing Market

The number of single-family homes on the market is currently at an all-time low. In late July 2017, there were only 3,883 homes being offered for sale. This is the first time since 2001 that the figure was lower than 4,000. Housing inventory in Philly has steadily declined in recent months, and is now 32 percent lower than it was five years ago. read more

How Philadelphia’s Mortgage Lending is Being Impacted

Posted on August 17, 2017 by Scott Li

Under the Community Reinvestment Act (CRA), Federal Reserve banks can earn credits for home loans made in low and middle-income neighborhoods. A 2014 change to this law is now affecting many communities in Philadelphia. Here are just a few effects that have been noticed thus far.

Drawing New Boundary Lines

Changes to the CRA generally come as a result of Census Bureau information. In 2014, the Office of Management and Budget (OMB) used 2010 census data to divide Montgomery, Bucks, and Chester counties from Philadelphia and Delaware counties. read more

Banks Realize Millennials are the Key to Growth

Posted on July 30, 2017 by Scott Li

The housing market crash forced lenders everywhere to tighten up their standards. That resulted in a number of consumers, particularly young people, to become ineligible for a mortgage. Realizing that millennials are the key to growth in the housing market, many lenders such as Fannie Mae are now loosening up their standards a bit. Here is an overview of some upcoming changes, as well as their anticipated effects.

Debt-to-Income Ratio Changes

The homeownership rate for those under 35 is at its lowest level in decades. One reason is that millennials in particular are often plagued with student loan debt that can prevent them from becoming qualified for a mortgage. This is one reason Fannie Mae plans to increase the Debt-To-Income (DTI) ratio from 45% to 50%. A person’s DTI ratio is his or her debt payments divided by monthly income, and includes all types of debt including student loans. read more

Lenders are Easing up on Getting a Mortgage

Posted on July 27, 2017 by Scott Li

Mortgage lenders have tightened their criteria in recent years, leaving many people unable to qualify for a loan. Faced with a decreasing pool of applicants, lenders are now loosening some criteria to make it easier for people to become approved. The three major credit bureaus are getting in on the action as well, revising some of their information to make it more favorable to the consumer. If you have previously been unable to obtain a mortgage, now might be the time to reconsider-here are just a few reasons why. read more

Mortgage Applications are Up-That’s a Good Thing!

Posted on July 24, 2017 by Scott Li

The number of people applying for a mortgage has increased, leaving many economists excited about the future of real estate. What is driving this increase and how long will it last? Here’s what the latest data is showing.

Data from July 2017

Figures from the first week of July 2017 show us that interest rates had their biggest five-day increase since just after the 2016 presidential election. During that week, the average interest rate for a 30-year, fixed-rate mortgage of $424,100 or less was 4.20%. This figure was up from the previous 4.13%, and was the highest interest rate in a two-month period. At the same time, points (including the origination fee) dropped from 0.32 to 0.31. read more

Why the 20% Down Payment Might Soon be Gone

Posted on July 20, 2017 by Scott Li

When it comes to buying a home, one thing that stops many people is coming up with a 20% down payment. While at one time putting 20% down was standard practice, there has been a shift away from doing so in recent years. A traditional down payment of 20% is no longer the norm, and could soon be a thing of the past. What is driving this trend, and is it a good thing or a bad thing? Let’s take a look at what is happening in the mortgage industry.

Trend Toward Less Money Down

Lenders often quote a 20% down payment as the “gold standard” among home buyers. Even so, the majority of people have a down payment that is far less than that amount. According to the National Association of Realtors (NAR), 70% of first-time home buyers and 54% of all other purchasers put down less than 20% during the past five years. In addition, 60% of first-time home buyers had a down payment that was only 6% or lower. read more

When Going to Open Houses, Examine These Parts of the Home First

Posted on June 29, 2017 by Scott Li

Attending open houses is a fun, casual way to find your dream home. The downside is that the laid-back atmosphere often prevents people from looking too deeply at a home. During any open house, it is important to remember why you are there, and make it a point to examine these parts of the home first.

Neighborhood and Neighbors

Your examination should begin long before reaching your destination. On the way there, check out the neighborhood, particularly other houses on the same block to see how well they are maintained. Pay attention to the type of activity that seems to be taking place. Notice how much traffic there is and whether or not the streets are well maintained. If you are uncomfortable with what you see, you may as well turn around and go home because chances are you will not enjoy living there anyway. read more

Ways to Know you Can Trust your Mortgage Office

Posted on June 25, 2017 by Scott Li

Taking out a home loan is a big deal, as you will be tied to your mortgage for quite some time. You only have one chance to get it right, which is why finding the perfect broker is so important. How do you know if you can trust your mortgage office? Here are some things to look for.

Mortgage Brokers

When applying for a loan, you have two options: a mortgage broker or a lender. A mortgage broker is someone who “shops” various financial institutions to find rates and terms that are most favorable for you. By using a mortgage broker, you can avoid a great deal of comparison shopping; however, you will want to know answers to the following questions: read more

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