When dealing with the prospect of buying a home, assets can be one of the most important pieces of the puzzle. Not only do assets come into play when determining whether you can afford a loan, they also play a large role in determining whether you’ll be able to get the mortgage you need.
Mortgage lenders dissect the entire credit history of a potential client, and assets play a big role in the process since they’re a reflection of a borrower’s fiscal strength. Taking this one step further, a borrower’s ability to save and properly budget could be a significant indicator to their future paying habits. Simply put, when mortgage lenders examine your worth, they look at the amount of money needed for the down payment and closing costs, prepaids such as insurance and taxes, escrow and money that would be available in reserve in case of an emergency.
Common assets considered in a mortgage loan application include stocks, bonds, mutual funds, 401k and retirement accounts, life insurance, cars, boats, antiques, jewelry and other real estate. When an asset is referred to as being “liquid,” it has cash value, or can easily be converted to cash. Liquidity is important in cases of financial emergency. Liabilities can be listed from the borrower's credit report. Alimony and child support payments also must be disclosed, so the lender can evaluate the borrower's financial obligations.
The source of where your assets came from is also ...
After making the costly investment in a new home, the last thing you want to do is spend a penny more than necessary getting all your stuff into it. So, we sought out some expert advice on the subject to help ensure your move goes as economically as possible.
The key to not breaking the bank with you move is proper research and planning.
Here are 5 cost-saving tips.
As you’re preparing to pack and move to a new space, now’s the time to take stock of everything you have and decide if it’s truly necessary to bring to your new home. You shouldn’t go into the process thinking that you need to fill every nook and cranny of your new home with “stuff”. While deciding to get rid of possessions may be overwhelming, taking the time to do it before you move will be worth it in the long-run. Once you’ve decided that it’s time to go through your stuff and get rid of anything you no longer need, the best and easiest way to accomplish this goal is to hold a garage sale. Not only will this allow you to start getting things out of your house while you’re packing, it’ll also help generate a little money in the process. You can then use this money to buy new stuff for your home—or to help offset the cost of the movers you hired to help with the transition.
You might think it's easier and more cost-efficient to have your family and friends help with your next ...
Buying a home for the first time can seem daunting. One way to alleviate the process is to organize your finances before embarking on the house hunt. Unsure how to get yours in order? Remember A + B + C + D + E:
Ask + Budget + Check + Differentiate + Estimate
Before you start searching for a home, there are 2 professionals you should seek out and ask for assistance. First, contact an experienced Loan Originator and “Ask” them to help you get pre-approved. Next, contact a REALTOR for guidance in searching for a new home based on your pre-approval.. He or she will have expertise related not only to amplify your affordability, but also to negotiating a deal in your favor.
Next, set a budget that takes into account your down payment, your anticipated monthly mortgage payment (with interest), and your closing costs. These figures are all important considerations in the home-buying process. Your Loan Originator can help you set your budget as well and evaluate your current debt.
Prior to house-hunting, check your credit report and score. Your credit is a determining factor in a lender’s approval or denial of your mortgage loan application, as well as your mortgage interest rate. Take steps to correct any errors on your report, or improve your score, if necessary.
Review various loan programs with your loan originator to differentiate between loan ...
Average fixed mortgage rates moved slightly lower for the week. helping to spur ongoing refinance activity, according to Freddie Mac's recently released Primary Mortgage Market Survey® (PMMS®).
The 30-year fixed-rate mortgage (FRM) averaged 3.44 percent with an average 0.6 point for the week ending September 8, 2016, down from last week when it averaged 3.46 percent. A year ago at this time, the 30-year FRM averaged 3.90 percent.
The 15-year FRM this week averaged 2.76 percent with an average 0.5 point, down from last week when it averaged 2.77 percent. A year ago at this time, the 15-year FRM averaged 3.10 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.81 percent this week with an average 0.4 point, down from last week when it averaged 2.83 percent. A year ago, the 5-year ARM averaged 2.91 percent.
"The 30-year fixed-rate mortgage fell 2 basis points to 3.44 percent this week,” says Sean Becketti, chief economist, Freddie Mac. “As mortgage rates continue to range between 3.41 and 3.48 percent, many are taking advantage of the historically low rates by refinancing. Since the Brexit vote, the refinance share of mortgage activity has remained above 60 percent."
With the start of September, summer is nearing its end and Fall is fast approaching. With the beginning of the Autumn Season comes the need for home maintenance. As a new homeowner, doing this maintenance now can save you big headaches later on in the year. According to DIYNetwork.com, the most important home tasks for late summer are:
Painting the Exterior
Lower humidity and cooler temperatures make late summer and early fall ideal times to paint the exterior of the home.
Cleaning Gutters and Downspouts
Clear all drainage areas of leaves and debris, and consider installing gutter guards.
Inspecting the Roof
Hire a licensed professional to examine the roof for wear and tear. (If the shingles are buckling, cracking or curling, it is time to replace them.) Be sure the professional assesses the flashing around chimneys, pipes, and/or skylights.
Turning Off Hose Valves
Turn off the valves to exterior hose bibs to prevent water pipes from bursting when the weather dips below freezing. Wrap pipes that run along exterior walls with heating tape.
Replace the filter in the furnace or heating system. Consider consulting with a licensed heating contractor to inspect and service the unit before the season turns.
Check the insulation in the attic to ...