Real Estate Archives

Everything You Wanted to Know About FHA Loans

Millennials and Home Ownership - Do Millennials Need to Buy Homes?

The cost of housing is skyrocketing across the U.S., particularly for renters seeking affordable housing. While there are many benefits to renting a home, you don’t have to pay for repairs or property maintenance. Some utilities might be covered in your monthly rent, the freedom to move. But, many people still aspire to the American Dream of owning a home. But if housing prices continue to rise as mortgage lenders are still hesitant about lending in a post-recession economy, how can you possibly manage to save up the massive, 20% down payment required for most mortgage loans? Thanks to the U.S. Department of Housing and Urban Development’s FHA loan program, you might not need to save up for a huge … Read more

Buying Your First Rental Property – How to Know if You’re Ready to Invest

by Hank Coleman

If you already have a steadily growing investment portfolio of stocks, bonds, and mutual funds, then perhaps it’s time to add a new type of investment to your collection: rental property. Investing in rental properties can be an enriching venture, but it demands a lot of planning and financial involvement to be successful. Buying Your First Rental Property Are you ready to invest and buy your first rental property? Here are some things to consider while making your decision: What’s Your Current Financial Situation? To get an accurate depiction of your current financial situation, you’ll need to calculate your personal net worth. This involves assessing your debts, income, and other investments. Also, take a look at the interest rates you’re … Read more

Finding Housing During a Financial Crisis

by Guest Contributor

In today’s economy, finding housing is hard enough even when you’re flush with cash. When your financial situation is problematic, finding a place to live can feel darn near impossible. Before you panic and/or reconcile yourself to being homeless, make sure you try some of these tips and techniques to help you keep a roof over your head. Finding Housing During a Financial Crisis Put Your Pride Away In spite of what you might have heard, there is nothing wrong with applying for the Section 8 program. In fact, the Section 8 program is often a lifesaver for people whose financial situations and housing needs are dire. In many states, Section 8 is a universal tool. Landlords are not allowed … Read more

Millennials and Home Ownership – Do Millennials Need to Buy Homes?

by Hank Coleman

If you follow housing market news and know anything about the Millennial Generation, then you probably have heard from many different sources how Millennials aren’t buying homes. In many cases, this is more due to their inability to afford the expenses of homeownership, rather than an unwillingness to pursue the American Dream of owning a place of their own. But is millennials and home ownership a good idea? However, in this day and age, is home ownership really the best option for young adults who are either still in college or only joined the workforce in the last decade or so? A lot has been written on the value of homeownership, but this shouldn’t be automatically viewed as the optimal … Read more

How to Trim Down Your Dream Home’s Design If It Doesn’t Fit Your Budget

by Guest Contributor

The first phase of your home renovation project deals with a lot of budgeting and meeting with your architect to discuss the design you want. But, what if your vision costs more than you expected?

Matching your dream design and your budget is a challenge. You have two options: either increase your budget to meet your expectations or refine your visions to meet your financial capabilities.

Most homeowners choose the latter. Some feel a little disappointed because they realized they needed to let go of the home features which increase the construction costs. On the other hand, some homeowners discover that they can get the look they want for less!

How did that happen? Here’s our quick guide for you:

Step 1: Revise your dream plan with your architect

Maximize the capabilities of the architect or designer whom you hired for the project. They can do so much more than drawing your home’s pre-existing conditions and the final project plan.

Ask for their help in setting realistic costs of the building materials required for your project. If some of the materials you need to be turned out to be too expensive, inquire about possible cheaper or greener substitutes.

This is also the time to discuss the deeper and futuristic aspects of your project. Identify which parts of the renovation will need consultations from other building professionals. Discuss the possible construction costs so you can adjust your budget properly.

Financing a Home Purchase: Demystifying the Mortgage Process and Making Your Dreams Come True

by Guest Contributor

Lessons Learned from Selling My First House

You’ve decided to look for your dream home in the area of your choice, you know exactly what kind of home you need, you’ve crunched the numbers and now you’re looking for a mortgage lender. How do you know that you are getting a reliable lender that will give you the best deal? Do you know and understand the entire mortgage process? Here are a few tips and hints to help you navigate the mortgage process.

Understanding the Mortgage Process

What Credit Score Do You Need to Buy a House?

Although your credit score is by no means the only factor that will be taken into consideration by mortgage lenders, it will play an important role in determining how much interest you will pay on your loan.

Therefore, the better your credit score, the less costly your home financing will be. To date, if your credit score is at least 660, you will typically qualify for a mortgage with a decent interest rate.

You may also qualify for bad credit mortgage financing with some lenders who specialize in working with borrowers with poor credit, even if you’ve been turned down by other lenders.

What Other Factors are Important?

As well as your credit score, mortgage lenders will also take a close look at the other information on your credit report including:

Your account status – they will want to see that you have had credit or bank accounts open for at least one year, and that you do not have judgments or collections against you. If you do have outstanding collections or judgments, you will need to take care of these before you can obtain a loan (excepting outstanding medical bills).
Mortgage payments – they will want to see if you have made any other mortgage payments within the past year.

Another thing that lenders will want to see, which will not be on your credit report, but will be verified, is your rental history, to ensure that you have not made any late payments. If you have had more than one late payment within the past 12 months, you may have a hard time getting approved for a mortgage.