The American Express Payment Problem

The American Express Payment Problem

Part of the mortgage qualification process includes what is called your debt to income ratio (DTI). This your gross monthly income divided by the lump sum total of your proposed housing payment and any other monthly obligations that show up on your credit report. This would include car payments, student loan payments (this links to our other post on these payments), and minimum payments on any revolving charge cards. These are typically a very small percentage of the ...

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Credit Scores – Don’t Sweat the Small Dips

Credit Scores – Don’t Sweat the Small Dips

We assist people with understanding and improving their credit scores with great regularity. One of the questions that comes up frequently is why credit scores go up and down so frequently? Credit Scores are made up of five main components.

The first is making your payments on time (35% of your score). If you make, even one late payment in the very recent past, your score will drop dramatically. The second component is called your utilization ratio (30% ...

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When Should You Start Looking for a Home?

When Should You Start Looking for a Home?

If you are thinking about purchasing a home in the next year, the sooner you start looking, the better. Why start so soon? There are a lot of moving parts to buying a home. Getting a plan in place is the key to success.

Let’s look at all the moving parts:

– Make the decision to purchase and set an ideal time to close on a home. For example, when does your lease expire?

– Look into a mortgage pre-approval. ...

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7 Strategic Moves as You Prepare to Apply for a Mortgage

7 Strategic Moves as You Prepare to Apply for a Mortgage
  1. Rent Before You Buy – It is always a good idea to get a year or so under your belt as a tenant so you can understand some of the challenges that come with homeownership. Put yourself in the shoes of your landlord. Lenders like to see a track record of making housing payments prior to application and to get you used to making a house payment prior to owning.

  2. Check Your Credit Report & Scores – ...

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Paying Cash for a Home? Beware of the 90 Day Rule

Paying Cash for a Home? Beware of the 90 Day Rule

With inventory levels low in this competitive housing environment, some people are opting to make cash offers on homes to make their purchase agreement look more attractive to potential sellers. While this may help you get your offer accepted, there is a large pitfall you must understand. The IRS gives you a 90-day window to put a mortgage on a property to gain the benefits associated with this loan being considered “acquisition indebtedness”.

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SO, YOU NEED A MORTGAGE:

SO, YOU NEED A MORTGAGE:

IS YOUR BANK THE BEST PLACE TO GO? – Part 2

Last time, we presented a few things to consider if you are thinking about financing for your new home. Specifically, should you use a local bank or a Mortgage Banker? It may seem like the logical step is to call your bank. They have your banking accounts and since the Bank has your financial information, the process will be easier. Unfortunately, this is rarely the case. ...

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The Only Constant is Change…

The Only Constant is Change…

…and as witnessed over the past 20 years, nowhere is it more evident than in the mortgage industry. Much of it, as with any business, occurs because of the rapid and ever evolving technological advances making the process easier and more efficient.

Enter Government Regulation
But, as rapidly as it happens, the most change we’ve seen in the past years has come from government regulation. Hindsight is 20/20, of course, and looking back at the events leading ...

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Divorce & Support Payments…

Divorce & Support Payments…

…When Can You Use it to Qualify for a Mortgage?

As you contemplate and work through a divorce, one of the most important factors to consider is your housing needs in the future. Will you stay in the home that your living in or sell the house and move somewhere else? We can’t overstate the importance of getting with a mortgage professional as you begin to negotiate your marital settlement agreement. There are very specific guidelines revolving around ...

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Having Trouble Getting Your Offer Accepted?

Having Trouble Getting Your Offer Accepted?

It’s no secret, it is a competitive market out there if you are a buyer. Whether you are purchasing a home and have the cash on hand for the down payment or you need to sell your existing home first to use the equity from that property for the down payment on the new home, there are challenges. The key to success is preparation. We have gone out of our way to create tools for you ...

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What to Offer on a Home?

What to Offer on a Home?

Purchasing a home can be the most major financial event in your life. Given that, you want to ensure you are doing everything you can to avoid overpaying for your dream home. It’s not that difficult, but unfortunately you do not have a long time to decide. What is the best price to offer that maximizes your value while, at the same time, makes a fair offer to the seller? If you are working with a local Real ...

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