At the start of 2018 homebuyers were being highly-competitive in many US housing markets but things have changed. According to a new report from Redfin, there was competition for just 13% of offers written by its agents for buyers in January 2019, down from 53% a year earlier.
Refinancing is no longer an option for 6.5 million homeowners as rates have picked up over the summer months. Since the start of 2018 there has been a 56% decrease in the number of homeowners who have a financial incentive to refinance – just 1.86 million – according to the September Mortgage Monitor Report from the data and analytics division of Black Knight Inc.
The impact of rising mortgage rates is highlighted in a new report on the monthly cost of homeownership. The analysis by Zillow finds that higher rates are responsible for about two-thirds of the increase in buyers’ monthly mortgage payments compared with what those costs would have been a year ago had home values remained constant at their current level.
When applying for a mortgage it is good to know your credit score and how that number can impact your ability to get approved for a mortgage. Your credit score is a big factor when it come to your mortgage.
More than 5.5 million US homes are underwater, representing 10.5% of all homes with a mortgage. ATTOM Data Solutions says that while many of the hottest housing markets have seen the share of underwater homes drop, there are some markets that are still struggling to recover from the financial crisis.
Your clients may know the Do’s, but how about the Don’ts?
Your clients are probably making these mistakes thinking it will help them get approved. Share these tips with your clients, they’ll be glad you did.
1. Don’t Pay Off Collections or “Charge Offs”. If you want to pay off old accounts, do it through escrow, making sure that the debt is yours. Request a “letter of deletion” from the creditor.
2. Don’t Close Credit Card Accounts or it may appear that your debt ratio has gone up. It also affects other factors in the score, including credit history.
3. Don’t Max Out or Over Charge Credit Card Accounts. Keep your balances below 40% of their limit during the process. Pay down balances if possible.
4. Don’t Consolidate Your Debt. When you consolidate all of your debt onto one or two credit cards, it will appear that you are “maxed out” on that card and you will be penalized.
5. Don’t Do Anything That Will Cause A Red Flag To Be Raised By The Scoring System. This includes adding new accounts, co-signing on a loan or changing your name or address with the bureaus.
You can now lock your interest rate while you shop for your new home. Even without a formal offer on a property, Lock & Shop gives you rate security with 60 or 90 day rate locks. If the rates improve as you shop, you can float down to the better rate.
Along with the Lock & Shop, you can submit an approval with conditions to make your offer strong in a competitive market.
Introducing New 3% Down Program with No Income Limits.
- No income limits
- No county restrictions
- Down payment as low as 3%
- Gift funds accepted from family members
- Available on conventional fixed-rate loans
- Minimum 640 credit score
Make home ownership a reality for more of your borrowers. Check out HomeOne and all of our other low down payment options today.
An overwhelming majority of Americans (85%) have a financial regret including student loans, credit card debt, and a too large mortgage. A new survey conducted at the start of May reveals the financial decisions made by more than 1,000 people which they now wish they had done differently.