02
May
By support
Home Mortgage Tips

Honesty Is the Best Policy: Why You Need to Be Truthful on Your Mortgage Application

Honesty Is the Best Policy: Why You Need to Be Truthful on Your Mortgage ApplicationThere are few things better than finding your dream home and being able to afford it, but simply because you’ve found the perfect place doesn’t mean you should stretch the truth. It might seem tempting to polish your mortgage application a little in the hopes of making a better impression, but here are a few reasons why you should stick to the truth when signing off on your home.

Your Credit History Tells All

It can be tempting to bump up your salary or make some hefty deposits into your savings account. However, lenders will be taking a look at your financial history by way of your bank statements, credit report and paystubs so they’re likely to discover any erroneous details. If you’re not honest about your financial situation, the lender may suspect that you’re not a reliable buyer. Not only that, making false statements about your finances may give you more home than you can really afford, which can cause setbacks down the road.

Mortgage Fraud Is Still Fraud

A little white lie on your mortgage application might not seem like such a big deal, but because you are painting a picture of yourself that is not true, this can actually be considered mortgage fraud. While there are mistakes that can be made on any mortgage application given all the details required, it’s very important not to mislead the lender or home seller on purpose. It may not be common, but mortgage fraud can be punished with hefty fines or even prison time.

A Bad Way To Begin

There’s nothing like the feeling of moving into your newly-purchased home and feeling enthusiasm for all the things it entails, but being dishonest about your financial situation can sully that. A lie may just be a small detail, but mortgage lenders look at a variety of factors to ensure you’re a good fit for a loan that will stay manageable month after month. While a minor mistruth may seem insignificant, it disables lenders from being able to assess if your financial situation is right for the home you want to purchase.

It may be enticing to fudge a few details on your mortgage application, but there can be serious implications involved in not being honest about the information on your application. If you’re currently in the market for a home, contact one of our mortgage professionals for more information.

01
May
By support
Mortgage Rates

What’s Ahead For Mortgage Rates This Week – May 1, 2017

Last week’s economic news included readings on Case-Shiller Home Prices Indices, new and pending home sales. Weekly readings on new jobless claims and average mortgage rates were also released. Case-Shiller reported that home prices rose by 0.20 percent from January to February with a year-over- year growth rate of 5.80 percent.

Western cities continued to post the fastest growth rates for home prices with Seattle, Washington topping annual home price growth rates at 12.20 percent; Portland, Oregon followed with a year-over-year home price growth rate of 9.70 percent. Dallas, Texas posted the third fastest growth rate for home prices with year-over-year growth in home prices at 8.80 percent. Dallas replaced Denver, Colorado for third place in the 20-City Home Price Index. 15 of 20 cities tracked in the Case-Shiller 20-City Home Price Index posted higher year-over-year gains in February than for January 2017.

New Home Sales Rise as Pending Home Sales Dip

New home sales rose to 621,000 sales in March; analysts expected a reading of 580,000 new homes sold on a seasonally adjusted annual basis based on January’s reading of 587,000 new home sales. Sales of new homes are important due to months of high demand for homes coupled with low inventories of homes for sale. Sales of new homes can indicate future readings on builder confidence and housing starts, but there are no definite connections between new home sales, builder confidence in housing market conditions and housing starts.

Pending home sales dipped in March with a month-to-month reading of -0.80 percent as compared to February’s seasonally adjusted annual reading of 5.50 percent. Pending sales are home sales for which sales contracts are signed but have not been closed. Pending home sales are an indicator of future completed sales and can be impacted by factors including fluctuating mortgage rates and regulatory influences on mortgage lending and mortgage approval requirements.

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported higher mortgage rates last week. The average rate for a 30-year fixed rate mortgage was six basis points higher at 4.03 percent. The average rate for a 15-year fixed rate mortgage was four basis points higher at 3.27 percent. Mortgage rates for a 5/1 adjustable rate mortgage averaged 3.12 percent which was two basis points higher than for the previous week. Discount points averaged 0.50 percent for a 30-year fixed rate mortgage and averaged 0.40 percent for 15-year fixed rate mortgages and 5/1 adjustable rate mortgages

New jobless claims rose to 257,000 last week as compared to expectations of 245,000 new claims filed and the prior week’s reading of 243,000. Analysts said that the spike appeared to be localized in New York State and would likely resolve soon.

What‘s Ahead

This week’s economic readings include ADP and Non-Farm Payrolls, national unemployment rate and readings on inflation. The Federal Open Market Committee of the Fed will issue its customary post-meeting announcement on Wednesday; this announcement is expected to reveal the Fed’s next move on interest rates. Weekly readings on new jobless claims and mortgage rates will also be released.

28
Apr
By support
Home Buyer Tips

Buying a ‘Micro’ Home? Be Sure to Consider These Major Lifestyle Changes First

Buying a 'Micro' Home? Be Sure to Consider These Major Lifestyle Changes FirstWith the cost of a home on the rise and the concept of being sustainable becoming more popular, many people are considering moving to a smaller home to minimize their impact. It’s important, however, to consider what living small is really like before deciding that it’s the right move for you. If you’re curious about life on a smaller-scale, here are some things to contemplate beforehand.

Getting Rid Of The Excess

It’s just a fact that a smaller amount of space means a smaller amount of stuff, but many people don’t realize this works two ways. While you won’t be able to accumulate the same amount of stuff in a smaller home, you also won’t have the luxury of being able to take everything from a larger house with you. It may not be a big deal for you to pack things away or discard the old, but if you’re the type of person who likes stuff, you may want to re-consider micro.

Will You Miss The Space?

Many homeowners spend a lot of time outdoors or even travelling for work, so the size of their home may not matter that much. However, if you’re the kind of homeowner who loves to nest and have their space, the idea of lounging around a small home may not be for you. A micro-sized space can minimize costs and be easier to decorate, but if you like being able to spread out and luxuriate in a variety of surroundings, something undersized can be quite limiting.

Forget The Home Maintenance

Whether you live on a massive estate or in a studio apartment, there are minor things that need to be done to keep your space clean and clutter free. When it comes to smaller living though, there will be a lot less to do, and this can greatly impact your free time. It’s great if you’re the kind of person who has plenty of hobbies to keep them busy, but if you like taking care of the yard and doing an assortment of home maintenance duties, it may be a struggle to own a property that needs less tending.

It’s never been more popular to go ‘micro’ when it comes to home ownership, but it’s important to make sure small living is right for you before taking the leap. If you’re currently on the market for a ‘micro’ home, contact your trusted morgage professional for lending information.