If you find a home you want to buy that is currently financed with a VA Loan, you might want to consider an assumption.
This old "creative" technique for buying real estate is going to re-emerge due to rising mortgage interest rates, and could very well save some buyers tens of thousands of dollars over time.
Why You Should Assume A VA Mortgage Loan
For people who weren't buying homes 20+ years ago, you likely will not remember the process of assuming a loan.
Back in the old days, there were many assumable loan products, and some of them did not require any kind of qualifications...
If you saw our recent article announcing our first-ever Facebook Live Open House, then you might wonder, are open houses making a comeback?
Our long-time readers know sellers have less than a one percent chance of selling their home through an open house, so what gives?
Open House On Facebook Live
We weren't so much testing the effectiveness of an open house, rather we were testing the impact of a Facebook Live event for selling a home.
As a reminder, we had a brand new listing "go live" on Facebook Live Saturday at 2:00 p.m.
We chose a Saturday afternoon (which...
With mortgage interest rates moving higher over the past few months, are you wondering whether or not to lock in your mortgage interest rate?
Well, are you in the window?
What Is A Rate Lock?
Some lenders offer the ability of locking in mortgage interest rates to buyers for a period of time. These periods range from weeks to several months.
Here's how it basically works. You meet with a reputable lender, complete a loan application and discuss different loan programs and options, and then you start shopping for a...
What if there were a way to grab an additional $25,000 per year, after taxes, and put it away for your retirement?
Well, there is if you take advantage of these government programs that are available for everybody willing to use them.
Little Known Secret You Can Use To Speed Up Retirement
Anybody who has ever taken out a mortgage to purchase a home has likely been introduced to the concept of government sponsored entities in the home loan business. Organizations such as Fannie Mae, Freddie Max, The Federal Housing Administration (FHA), and even the Department of Veterans...
So many Americans lost their homes to short sale or foreclosure after the housing market collapse in 2006, yet many of them have already bought another home and have restored their credit.
If you thought a financial setback means that you can never again buy a home, then this article should serve to give you reason to believe that home ownership is within the reach of anybody who makes it a priority.
Problems With Damaged Credit
This article serves to deliver two key points.
When it comes to buying a home, the greatest issue for the majority of buyers is from where to get the money.
Roughly 1 in 4 can pay cash, so that means the remaining 75% of homebuyers need another source of capital.
Many banks and mortgage companies exist solely for the purpose of making home loans, but not all "bank" loans are the same.
We can figure out where homebuyers in 2017 will get their money with a close examination of where buyers in the past were able to find theirs.
Where Buyers Get Their Money
Our first graph shows that in 2016, 97% of homebuyers obtained the money they needed to buy a home from either cash, conventional financing, FHA financing, or through a VA loan. When you throw in USDA loans and owner financing, 99% of all purchases have been accounted for according...
Anybody who tells you they know what will happen with mortgage interest rates due to Donald Trump being elected President is taking great liberties with their ability to predict the future.
Nevertheless (and taking great liberties), I think there are some signs that assure us that mortgage interest rates will continue to rise beyond what we have already seen.
Three Reasons A Trump Presidency Means Higher Mortgage Interest Rates
- The first one is easy. Mortgage interest rates need to move higher. We have been hovering near historical lows for several years and long-term cycle analysis strongly...
A recent article showed what it takes to buy a house in different markets across the US, and (of course) it did not include Tallahassee, Florida.
One down-side to having a great quality of life and relatively zero traffic is that Tallahassee never shows up in these types of national reports, as our population is not sufficiently large to catch their attention.
Despair not, we'll do our own brief article on what it takes to buy a house in Tallahassee.
First of all, take a look at the cool graphic as seen on hsh.com (modified by me to include Tallahassee).
The collapse of the housing market in 2006 drove many people to short sales, foreclosures and bankruptcy, causing them to lose their homes as well as their ability to borrow for the next home.
Many of these borrowers had excellent credit histories prior to that time, yet they still cannot borrow again until certain time parameters are met. This article identifies those parameters as well as the requirements from loan underwriting groups for borrowers who are now emerging with repaired credit.
A big "thank you" goes out to ...
If you are working with a Realtor to buy a home in Tallahassee, then it's likely that she has recommended you work with a certain lender or two.
Equally important, she's probably warned you not to work with a certain type of lender too. Do you want to know why?
First of all, seventy percent of people who will buy a home in Tallahassee this year will borrow the majority of the money they need for the purchase. Unfortunately, most will not consider choosing the lender to be a big deal, and they will treat the loan as an after-thought after they have begun looking at homes.
Because of this, they will be targeted by online lenders...