Expand Your Horizons You’ve been searching for a long time for your new home, without success. Maybe you’re looking in the wrong place. According to the Census Bureau’s 2017 American Housing Survey (AHS), 35% of people who had recently moved did so because they wanted a larger or higher-quality home – and that dream home
How long have you been searching for your new home? The latest Housing Trends Report from the National Association of Home Builders (NAHB) suggests that you’ve been looking for a while and may be getting frustrated in the process. You may be coming down with the homebuyer’s blues. Potential homebuyers are being squeezed in multiple
According to the New York Fed’s latest Quarterly Report on Household Debt and Credit, America’s student loan debt burden has reached a staggering $1.44 trillion as of September 2018. Has that burden kept younger Americans from buying homes? A new Federal Reserve study suggests that educational debt isn’t the primary reason for the homeownership decline,
When it comes to dealing with risk, America’s housing market struggles with balance. How can lenders offer affordable home mortgages for more Americans and still maintain proper safeguards? The Great Recession was driven in part by overly risky loans that were packaged as securities and sold to investors who were unaware of the underlying risk.
Are you having trouble getting a date? Could be your rap, your looks, or your excessive debt. According to a recent survey by Finder.com, 72% of respondents say they would re-think a relationship with a partner in significant debt. (That’s similar to the percentage in last year’s Finder.com survey, so don’t expect debt to
First-time homebuyers face many obstacles, but perhaps the most frustrating one is accumulating down payment money. Traditional loans require a 20% down payment. Using Zillow’s $229,800 median home sale price for November 2018, that’s over $45,000 – and in many urban markets, a 20% down payment will easily top $100,000. How long will it take
First-time homebuyers face many challenges, but the biggest task may be coming up with a suitable down payment. Consumers in the early stages of their careers often face a fresh set of bills – and in some cases, mountains of student loan debt. A National Association of Realtors survey found that over half of
The Shutdown’s Housing Market Woes It’s a great time to buy a home, and you’re ready. You’ve saved up a suitable down payment, found a home, and settled on a lender. As an added bonus, interest rates are at their lowest point in the last nine months – despite the Federal Reserve’s interest rate hikes.
Is 2019 the year you finally buy that starter home? Are you upgrading or downsizing to a new home? Are you interested in how your home value is likely to change over the next year? We offer these 2019 housing market predictions to consider as you review your housing plans for the year. Inventory Will
Your Christmas gift from the Federal Reserve is here. Surprise! It’s another 0.25% hike in the Federal Funds rate. Sure, you’ve already gotten this same gift three other times in 2018, and nine times since late 2015 – but what else would you expect to receive from the Fed? Interest rate hikes from the Fed
Do you know how your mortgage loan officer is compensated? You should if you plan to buy a home, because your loan officer’s compensation could have the potential to affect your mortgage loan – and proposed new changes could amplify the effects. At the beginning of 2014, the Consumer Financial Protection Bureau (CFPB) significantly changed
You’re never too old to learn new things – including better money management practices. The Federal Deposit Insurance Corporation (FDIC) agrees. To address financial literacy concerns, the FDIC created the Money Smart teaching program in 2001 to help educators and financial institutions increase consumer understanding of basic financial systems work and how to use them
Home sellers and their agents may be limiting their potential base of buyers by ignoring a growing pool of them. Mortgage industry software company Ellie Mae reports that loans acquired through the Veterans Affairs (VA) Department account for 10% of all primary insured home loans. It is easy to see why VA backing is preferable
Nearing the Limit The housing market has suffered from excess demand and limited supply for years, causing a sharp increase in home prices. Add continually increasing interest rates to the mix, and eventually something has to give. The turning point may have arrived. The S&P CoreLogic Case-Shiller report shows that home prices are still rising,
Is a home purchase on your to-do list over the next two years? You’ll have plenty of competition finding your new home, according to the latest PenFed Credit Union National Mortgage Survey. The survey found that 37% of American adults are planning to purchase a home within the next two years. Over half (52%) of
If you have a low credit score and want to buy a home, your odds of getting a loan have improved. A study by the Fair Isaac Corporation (FICO) shows that credit scores for new mortgage originations have been dropping, suggesting that lenders are slowly relaxing the tight credit policies imposed after the housing crisis.
Are you looking for a mortgage that features a low down payment but can’t find a suitable conventional loan because of various restrictions?The Federal Housing Administration (FHA) offers loan products with down payments of just 3.5% for borrowers with FICO credit scores as low as 580 – an attractive combination for potential homebuyers with lesser
A Stressful Experience What’s the most stressful event you’ve had in your life? Applying for college? Going on a job interview? Hosting Thanksgiving dinner for your entire family? According to a recent survey by Homes.com, buying a home tops all of those events as “the most stressful event in modern life.” One-third
Small Changes, Big Impact Sometimes a seemingly small difference can have a large effect, like the straw that broke the proverbial camel’s back. According to a recent study by the credit bureau Experian, that same principle applies to millennials and their borrowing behaviors. With a small change in financial habits, more millennials could significantly shift
Your credit score is one of the primary items that lenders check when they consider loaning you money. A lower score means greater risk, and lenders will charge you a higher interest rate because of that difference – but how much could it cost you over the lifetime of a loan? According to a new
Waiting to Buy According to a new study by the Urban Institute, millennials are waiting longer than previous generations to enter the housing market. Approximately 8% fewer millennials of ages 25-34 own homes as compared to baby boomers and generation Xers at the same point in their lives. Why are millennials late to homeownership? The
Are you having trouble getting a home loan because you have no suitable credit history? Has your credit activity been dormant for a long enough time that lenders can’t properly evaluate your risk? The FICO credit-scoring standard used by Fannie Mae and Freddie Mac requires that potential borrowers have a credit account
Have you been denied a mortgage loan recently? Rejections usually don’t come down to a single reason, because lenders look at your overall financial status. However, some factors increase your risk of rejection. According to NerdWallet’s 2018 Home Buyer Report, three issues stand out as primary reasons for mortgage denials based on the most recent
Who wants simpler taxes? Most of us do, assuming we also keep more money in the process. Starting in 2018, homeowners are more likely to have simpler tax returns – but they may need to make similar tax calculations to ensure a lower tax bill. Tax simplification was part of the pitch to sell the
You probably comparison-shop for most of your purchases, especially the high-dollar ones. If you’re going to spend money on a new appliance or an automobile, you want to review options to make sure you’re getting the best deal. According to the Consumer Financial Protection Bureau (CFPB), there’s a big exception to this rule – mortgages.
You want to know exactly what you are getting when you make any large purchase, especially when you are buying a home – the largest purchase that many Americans will ever make in their life. That’s why a real estate disclosure statement is a fundamental part of any real estate transaction. By law, home sellers
Living the Dream Homeownership is one of the classic measures of “the American Dream.” According to a recent Bank of the West Millennial Study, over half of respondents (58%) say they’ve either attained the American Dream or that the American Dream is still attainable. A similar percentage (59%) says that owning a home is a
You want to buy a home and have the income to support a decent monthly payment – but you can’t save up enough money for a significant down payment. With home prices and interest rates rising, you’re afraid that you’ll be priced out of the market before you can save up a full down payment.
Homeownership remains a goal for most Americans. According to NerdWallet’s 2018 Home Buyer Report, 91% of respondents want to own at least one home during their lifetime. However, that same report shows eight concerns renters have regarding that goal. If you haven’t bought a home yet, see if they match your concerns. 1. Purchase Cost
How badly do you want to own a home? What would you be willing to give up to achieve the American dream? Discover what sacrifices recent homebuyers made to purchase their homes, and whether they see the acquisition as a worthwhile investment. Your credit history is an important factor in getting your mortgage approved.