NY Mortgage

The Mortgage Scoop
You are here: Home / Archives for Home Mortgage Tips

CREDIT RULE CHANGES

by

On the 8th of June, there will be changes on how your credit is reported.

Changes include:

**Collections that aren’t at least 180 days old will be rejected by the 3 major credit bureaus. You will now have time to pay them off before it is even reported.
**Medical collections will no longer show on credit reports as long as it is being paid (through either you or insurance).
**Collection accounts that have not been updated in six months or more will not be factored into scores.
**Any collection that did not result from a contract or agreement to pay by the consumer, will be removed.

This means that now is the perfect time to speak with a loan professional about how this will impact your ability to buy a home.

5 Ways Millennial Buyers Can Snag Their Dream Home In This Sellers Market

3 Reasons You Should Trust in a Mortgage Advisor Instead of Trying to Predict Rates

by

3 Reasons You Should Trust in a Mortgage Advisor Instead of Trying to Predict RatesIf the time has come to purchase a home and you’ve been perusing the real estate market, it’s possible you’ve also been considering the mortgage options that might work best for you. In the event that you’re already spending a lot of time looking at homes and trying to sell your own, here are a few reasons you may want to leave your mortgage considerations to a professional.

Qualifications You Can Count On

If you’re new to the world of home purchasing and have concerns about learning the ropes on your own, a mortgage advisor can be a great way to navigate the market and get the information you need without having to do all of the legwork. Because a mortgage advisor has to have the necessary qualifications to give you advice, they’ll be able to guide you through available options so you can find the product that is best suited for your financial situation.

A Knowledgeable Expert On Your Side

Between putting in offers on a home and dealing with lenders, it can often feel like you’re between a rock and a hard place, and getting squeezed financially. However, the ideal mortgage advisor will be someone who is there solely to assist you and provide you with viable options. Instead of a very specific set of options provided by the bank, an advisor will be able to identify products your lender might not suggest, which means you’ll have more options and a representative who will be able to recommend the best ones for you.

The Inside Scoop On The Industry

It’s the job of a mortgage advisor to be on top of the market, have a comprehensive knowledge of the products out there and be familiar with the lenders, so this means less research and a lot more expertise for you when it comes to any final mortgage decisions. Not only will they have the know-how in the industry you’re heading into, they’ll be aware of the information the lender requires and may be able to score you a better deal when the time to make a decision comes.

Finding the ideal lender for your mortgage can be a struggle in times where there are so many small details to deal with, but a mortgage advisor can work to simplify the process. If you’ll soon be applying for a mortgage and are considering your lender options, you may want to contact one of your local mortgage professionals for more information.

3 Reasons Why Buying an Investment Property Is the Best Way to Build Your Net Worth

by

3 Reasons Why Buying an Investment Property Is the Best Way to Build Your Net WorthWhether you have recently graduated from college or are getting close to retirement, it’s likely that you have given some thought as to how you can grow your net worth. You might have invested in stocks, picked up a few bonds or have a 401(k) plan set up to help fund your retirement. But have you considered buying real estate as part of your portfolio?

In today’s blog post we’ll have a look at three reasons why real estate investing is one of the most effective ways to grow your overall net worth.

Reason #1: It Generates Passive Income

One of the best reasons to hold real estate as part of your investment portfolio is that it can generate passive income in the form of rent. Whether you buy a single-family home or an apartment block, you can almost certainly find interested tenants who will live there. Part of the rent you receive each month will cover the costs of owning and operating the property. The rest of it is income which will continue to build over time.

Reason #2: It Increases In Value Over Time

Another great reason to invest in real estate is that in most cases, it increases in value over time. As long as you are maintaining the property and investing in its upkeep you have a decent shot at it being worth more in the coming years, should you decide to sell. Keep in mind that real estate is cyclical and that it’s not always going to be the right time to sell and realize your gains.

Reason #3: You Can Leverage Equity To Buy More Properties

Finally, our third reason that real estate is the best way to build your worth is your ability to use it as leverage to buy more real estate. For example, say you decide to purchase a house valued at $100,000 as an investment property. Once the mortgage on that home is paid off, you have an asset valued at $100,000 that you can then borrow against. So you can go out and acquire another $100,000 home without having to sell the first. As you can see, this can scale quite nicely over time.

If you are interested in learning more about real estate investing and how you can make use of mortgage financing to purchase properties, give our offices a call. We are happy to share our insight and expertise as well as advise you on the best mortgage products to help reach your financial goals.

The 4-Step Financial Checkup to Get Ready for a Mortgage in 2018

by

The 4-Step Financial Checkup to Get Ready for a Mortgage in 2018Are you ready to join the ranks of homeowners in our local community? Congratulations – homeownership is a big step towards building your net worth and financial freedom. However, it is also a significant transaction that will affect your finances for the foreseeable future. Let’s take a look at a quick four-step checklist that will help you to get ready to buy a home with a mortgage in 2018.

Step 1: Set Up A Monthly Budget

It might sound a little basic, but the best first step is to commit to a monthly budget. After you buy a home using a mortgage, you will be responsible for making monthly payments for a period of time. The faster you get used to working inside of a budget, the better.

Your budget doesn’t have to be extravagant. Simply list your sources of income and your expenses. If you are spending more than you are making, you are going to need to cut back a bit.

Step 2: Start Setting Aside Your Down Payment

If you haven’t already, it is an excellent time to start gathering the funds necessary to make your down payment. This is the amount of cash that you put forward against the price of the home. The remainder of the purchase cost is covered by your mortgage, which you will pay off monthly in the future.

Note that the standard down payment amount is 20 percent of the home’s purchase price. If you have less than this available, you may be required to purchase mortgage insurance. But don’t let this deter you from starting the process now, especially if you have found the house that you want to buy.

Step 3: Check Your Credit Rating

Next, you will want to check your credit rating and FICO score to find out if you have any outstanding issues. You can access a free credit report from any of the major reporting agencies up to once per year, so be sure to take advantage.

Step 4: Meet With Your Mortgage Advisor

Last, but not least, you will want to schedule a meeting with your mortgage advisor. This is your opportunity to have all your mortgage-related questions answered by a professional who has your best interests in mind. If you decide that you are ready to move forward with buying a home, you can begin the pre-approval process at your convenience. We look forward to helping guide you down the path to buying your dream home!

What Is Mortgage Insurance and How Does It Benefit Me? Let’s Take a Look

by

What Is Mortgage Insurance and How Does It Benefit Me? Let's Take a LookAre you in the market for a new home? If you are considering a mortgage, you may be curious about mortgage insurance, commonly referred to as PMI or MI. Let’s explore the topic of mortgage insurance, including how it works to reduce risk and how it benefits you as the mortgage borrower.

Mortgage Insurance = Risk Reduction

You might not know this, but the toughest part of the home buying process for many individuals and families is coming up with the required down payment. For example, if you were to buy a $200,000 home, you may want to invest $40,000 or $60,000 or more in the down payment. The remainder would be borrowed in your mortgage, which you would then pay off each month.

Most mortgage lenders require a minimum of 20 percent as a down payment. In the example above, this means having $40,000 cash on hand before you buy the home. If you can’t come up with this much, your lender may require mortgage insurance be purchased to protect them in case you default on the loan.

Mortgage Insurance Can Help You Qualify

Since mortgage insurance reduces the lender’s exposure to risk, it can help you in a number of ways during the qualification process. First, you can put less in your down payment than you had initially intended, which can increase your buying power and the size of home you can afford. Mortgages backed with a private insurance policy tend to be approved a bit faster than those that aren’t. Also, if you decide that you don’t need it later, many mortgage insurance policies can be canceled, which saves you a bit of money.

Look For Supplemental Benefits

Finally, don’t forget to ask your mortgage lender about any supplemental benefits offered with your mortgage insurance policy. Some policies protect you in the event that you lose your job or provide a partial claim advance if you can’t pay your mortgage. Note that not all policies have these benefits, so be sure to ask.

While it is true that mortgage insurance provides benefits to lenders, it also offers significant benefits to you as the borrower. To learn more about mortgage insurance or to get pre-approved for a mortgage so you can buy a home, give us a call today. Our friendly team of mortgage professionals is happy to help.