If you are renting but have been thinking about buying a home for awhile, here is a great article published by RISMEDIA that might help you make the right choice:
To search for homes in the Greater New Orleans Area
go to
Showing posts with label find a realtor. Show all posts
Showing posts with label find a realtor. Show all posts
Thursday, April 14, 2016
Monday, April 4, 2016
Ready to shop for a home? Know loan types!
Before
you go mortgage shopping, know loan types.Conventional
Loans:
Conventional mortgages are ideal for borrowers with good or excellent credit. Conventional mortgages follow fairly conservative guidelines for:
—Borrower credit scores.
—Minimum down payments.
—Debt-to-income ratios.
What is “Debt-to-Income Ratio”?
Percentage of monthly income that is spent on debt payments, including mortgages, student loans, auto loans, minimum credit card payments and child support.
Closing costs, down payments, mortgage insurance and points can mean that the conventional borrower has to show up at closing with a sizable sum of money out of pocket.
What’s good: Conventional mortgages generally pose fewer hurdles than Federal Housing Administration or Veterans Affairs mortgages, which may take longer to process.
What’s not as good: You’ll need excellent credit to qualify for the best interest rates.FHA Loans:
Conventional mortgages are ideal for borrowers with good or excellent credit. Conventional mortgages follow fairly conservative guidelines for:
—Borrower credit scores.
—Minimum down payments.
—Debt-to-income ratios.
What is “Debt-to-Income Ratio”?
Percentage of monthly income that is spent on debt payments, including mortgages, student loans, auto loans, minimum credit card payments and child support.
Closing costs, down payments, mortgage insurance and points can mean that the conventional borrower has to show up at closing with a sizable sum of money out of pocket.
What’s good: Conventional mortgages generally pose fewer hurdles than Federal Housing Administration or Veterans Affairs mortgages, which may take longer to process.
What’s not as good: You’ll need excellent credit to qualify for the best interest rates.FHA Loans:
Federal
Housing Administration mortgages have flexible lending standards to
benefit:
—People whose house payments will be a big chunk of take-home pay.
—Borrowers with low credit scores.
—Homebuyers with small down payments.
The Federal Housing Administration does not lend money. It insures mortgages.
The FHA allows borrowers to spend up to 56 percent or 57 percent of their income on monthly debt obligations, such as mortgage, credit cards, student loans and car loans. In contrast, conventional mortgage guidelines tend to cap debt-to-income ratios at around 45 percent and sometimes less.
For many FHA borrowers, the minimum down payment is 3.5 percent. Borrowers can qualify for FHA loans with credit scores of 580 and even lower.
Cost: Each FHA loan has 2 mortgage insurance premiums:
—An annual premium that varies from a low of 0.45 percent to a high of 0.85 percent. This premium is rolled into the monthly mortgage payment for the life of the loan. See how the premiums vary by loan term and amount of equity.
—People whose house payments will be a big chunk of take-home pay.
—Borrowers with low credit scores.
—Homebuyers with small down payments.
The Federal Housing Administration does not lend money. It insures mortgages.
The FHA allows borrowers to spend up to 56 percent or 57 percent of their income on monthly debt obligations, such as mortgage, credit cards, student loans and car loans. In contrast, conventional mortgage guidelines tend to cap debt-to-income ratios at around 45 percent and sometimes less.
For many FHA borrowers, the minimum down payment is 3.5 percent. Borrowers can qualify for FHA loans with credit scores of 580 and even lower.
Cost: Each FHA loan has 2 mortgage insurance premiums:
—An annual premium that varies from a low of 0.45 percent to a high of 0.85 percent. This premium is rolled into the monthly mortgage payment for the life of the loan. See how the premiums vary by loan term and amount of equity.
—An
upfront premium of 1.75 percent of the loan amount, paid at
closing.
What’s good: FHA loans are often the only option for borrowers with high debt-to-income ratios and low credit scores.
What’s not as good: FHA mortgage insurance premiums usually are higher than premiums for private mortgage insurance. To get rid of FHA premiums, you must refinance the loan.
VA Loans:
Who they’re for: Most active-duty military and veterans qualify for Veterans Affairs mortgages. Many reservists and National Guard members are eligible. Spouses of military members who died while on active duty or as a result of a service-connected disability may also apply.
How they work: No down payment is required from qualified borrowers buying primary residences. The VA does not lend money but guarantees loans made by private lenders.
Cost: The VA charges an upfront VA funding fee, which can be rolled into the loan or paid by the seller. The funding fee varies from 1.25 percent to 3.3 percent of the loan amount.
The VA allows sellers to pay closing costs but doesn’t require them to. So the buyer might need money for closing costs. Borrowers may also need money for the earnest-money deposit.
What’s good: VA borrowers can qualify for 100 percent financing. Veterans do not have to be first-time buyers and may reuse their benefit.
What’s not as good: There are limits on loan amounts. The limits vary by county.
For more useful information or To Search for Homes go to http://www.homesalesneworleans.com/
What’s good: FHA loans are often the only option for borrowers with high debt-to-income ratios and low credit scores.
What’s not as good: FHA mortgage insurance premiums usually are higher than premiums for private mortgage insurance. To get rid of FHA premiums, you must refinance the loan.
VA Loans:
Who they’re for: Most active-duty military and veterans qualify for Veterans Affairs mortgages. Many reservists and National Guard members are eligible. Spouses of military members who died while on active duty or as a result of a service-connected disability may also apply.
How they work: No down payment is required from qualified borrowers buying primary residences. The VA does not lend money but guarantees loans made by private lenders.
Cost: The VA charges an upfront VA funding fee, which can be rolled into the loan or paid by the seller. The funding fee varies from 1.25 percent to 3.3 percent of the loan amount.
The VA allows sellers to pay closing costs but doesn’t require them to. So the buyer might need money for closing costs. Borrowers may also need money for the earnest-money deposit.
What’s good: VA borrowers can qualify for 100 percent financing. Veterans do not have to be first-time buyers and may reuse their benefit.
What’s not as good: There are limits on loan amounts. The limits vary by county.
For more useful information or To Search for Homes go to http://www.homesalesneworleans.com/
Tuesday, April 21, 2015
What Attracts Millennials When Buying a Home
Social
spaces
Entertaining friends is very important to millennials, the more places in the home that are conducive to socializing, the more attractive it is to younger buyers. Put taller than usual table with bar chairs in the kitchen to give the impression of being a good place for a crowd to place their drinks during a cocktail party. If there is a balcony, try to fit a grill out there if it is allowed, it represents freedom and adulthood more than most other pieces of furniture.
Millennial-preferred amenities
Access to superior technology is important to this demographic, so take the time to research options available for those in your home. Millennials want a place to charge all of their gadgets, so build in shelves right next to electrical outlets as designated charging stations.
Showcase storage
Many millennials in urban areas don’t want to own a car, so their biggest burden is what to do with their bike. In small condos there isn't usually room to store them so they end up taking up space in the living room. One of the solutions is to mount a bike vertically in the wall space behind the entry door.
Entertaining friends is very important to millennials, the more places in the home that are conducive to socializing, the more attractive it is to younger buyers. Put taller than usual table with bar chairs in the kitchen to give the impression of being a good place for a crowd to place their drinks during a cocktail party. If there is a balcony, try to fit a grill out there if it is allowed, it represents freedom and adulthood more than most other pieces of furniture.
Millennial-preferred amenities
Access to superior technology is important to this demographic, so take the time to research options available for those in your home. Millennials want a place to charge all of their gadgets, so build in shelves right next to electrical outlets as designated charging stations.
Showcase storage
Many millennials in urban areas don’t want to own a car, so their biggest burden is what to do with their bike. In small condos there isn't usually room to store them so they end up taking up space in the living room. One of the solutions is to mount a bike vertically in the wall space behind the entry door.
For more staging tips go to http://findneworleansproperties.gardnerrealtors.com/
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