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Don’t Make These Mistakes When You Want To Get A Home Loan

March 7, 2014 by Jeff Cost

Don't Make These Mistakes When You Want To Get A Home Loan Getting a home loan can be a challenging process, and a finicky one. Qualifying can be challenging and once a buyer gets approved, it can be surprisingly easy to derail the process. Here are some mistakes to be avoided:

Not Pre-Checking Credit

Once a borrower makes his application for a mortgage, his fate is largely sealed. One way to increase the chance of qualifying for a home loan is for a borrower to check his credit before applying. That way, he can address any issues before they become problems for the lender.

Changing Jobs

Lenders judge borrowers on their ability to repay the loan. While a borrower’s credit rating is a good indicator of past performance, his current job and income provides some assurances that he can make his payments.

Changing jobs or losing a job interrupts the income, and can make a lender decide not to lend to that borrower.

Taking On New Debt

New debt can derail a mortgage in two ways. First, adding debt can lower credit scores from the inquiry that comes as well as worry lenders. Second, new debt increases monthly payments, which lower the amount that a borrower can take out on a home loan due to the limitations imposed by the lender’s debt to income ratio.

Fudging The Numbers

Some borrowers might be tempted to tweak some of the numbers on their mortgage applications to make them more attractive to the lender, but lying on a mortgage application is a very bad idea.

First, lenders investigate what gets entered and they’re likely to catch it. Second, it is also fraud and could leave the borrower subject to prosecution.

In general, people considering a home loan should remember the Hippocratic Oath that doctors take. Its message — do no harm — is a good rule of thumb for applying for a mortgage.

Applicants that keep their financial status the same throughout the process without making any changes are more likely to emerge at the end with their new home and their original loan.

How To Add Color To Your Home Decor Without Going Overboard

March 7, 2014 by Jeff Cost

How To Add Color To Your Home Décor Without Going Overboard There is a fine line between adding color to your home décor and using too much color, so that you feel like you are living inside a rainbow.

A little bit of color will add a lot of fun and interest to your home design, but too much color can be overwhelming. How can you achieve that perfect balance?

Here Are Some Tips To Keep In Mind For Using Color In Your Home In A Subtle And Balanced Way:

Use Color Schemes

Before choosing the colors for your décor, do a little bit of research into color schemes and how they work, so you know how to combine colors harmoniously.

For example, you can choose a complementary color scheme with shades that are across each other on the color wheel – such as blue and orange or purple and yellow.

Or you could try an analogous color scheme, which is a scheme where the colors are next to each other on the colour wheel – such as blue, green and purple.

Use The 60/30/10 Rule

This is a rule that interior decorators use in order to use colors in a balanced way. Use the dominant color on 60% of the room, so that it will create a unifying look.

Then, use the secondary color on 30% of the room in order to add visual interest. Lastly, use an accent color for 10% of the room to add that little extra.

For example, you might use the dominant color for the walls and carpet, the secondary color for the upholstery and the accent color for some pillows, a wall hanging or a throw rug.

Try An Accent Wall

Perhaps you have found a gorgeous paint color, but it’s just a little too bright and overwhelming to use for all four walls of a room.

In this case, you can simply paint one wall with the color and the other walls with a neutral tone, so that you can enjoy the shade without it being overpowering.

You could also simply use the color in one aspect of the room, such as the baseboards or the door jams.

These are just a few of the ways that you can incorporate color into your home design, without it being overpowering. For more information, call your trusted mortgage professional.

Highest Year-Over-Year Increase In Home Prices Since 2005

March 5, 2014 by Jeff Cost Leave a Comment

Highest Year-Over-Year Increase In Home Prices Since 2005 Two major indicators of home price trends showed a slowing momentum for home prices in December. The S&P Case Shiller 10 and 20 city indices reported that of 20 cities tracked, home prices were lower in December than for November.

Case-Shiller’s seasonally adjusted month-to month reading showed that home prices rose by 0.8 percent as compared to 0.90 percent in November.

David Blitzer, chairman of the index committee at S&P Dow Jones Indices, said that “Gains are slowing from month-to-month and the strongest part of home price recovery may be over.” He also noted that seasonally adjusted data was showing a loss of momentum for home prices.

December home prices posted a year-over-year gain of 13.40 percent, down from November’s year-over-year reading of 13.70 percent. December’s reading reflected the highest year-over-year increase in home prices since 2005.

Analysts note that a slower pace of increasing home prices may allow more buyers to enter the market, and may also encourage more buyers to list their properties for sale.

This would increase inventories of available homes and relieve pent-up demand for homes. Although home price growth is cooling off, average home prices remain 20 percent below their pre-recession peak in 2006.

Home Prices Face Challenges In 2014

Another factor in slower growth of home prices is regional differences in the rate of economic recovery. Cities including Dallas, Texas and Denver, Colorado recently set records for escalating home prices.

Five states including Florida and Michigan accounted for almost half of foreclosures completed during 2013. Slow job growth and poor winter weather were also blamed for slower gains in home prices.

New mortgage rules and relatively strict mortgage lending standards may continue to dampen housing markets, but there is some good news as some lenders are easing credit standards.

FHFA: Home Prices Higher For 10^th Consecutive Quarter

The Federal Housing Finance Administration reported similar trends in December home price data for properties either financed or owned by Fannie Mae or Freddie Mac. Home prices rose by a seasonally adjusted rate of 0.80 percent in December as compared to November’s reading.

Home prices were 7.70 percent higher for the fourth quarter of 2013 than for the same period in 2012. Adjusted for inflation, this reading indicates an approximate year-over-year increase of 7 percent.

FHFA reported higher readings for 38 states in its fourth quarter 2013 Home Price Index, as compared with 48 states in in the third quarter of 2013. In order of home price appreciation, the top five states with highest growth in home prices were Nevada, California, Arizona, Oregon and Florida.

These calculations were seasonally adjusted and based on home purchases only.

Don’t Make These Mistakes When You Want To Get A Home Loan

How To Add Color To Your Home Decor Without Going Overboard

Highest Year-Over-Year Increase In Home Prices Since 2005

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