Mortgage Fees You Should Not Pay
August 22, 2008 by Erik Folgate
Filed under Budgeting, Real Estate
My wife and I are in the process of buying a home, and I have been frustrated lately at the hidden mortgage fees that brokers try to pass off as “necessary” to close the loan. When in fact, there are so many fees that don’t need to be paid by borrowers with good credit and stable income.
Here are list of some of the negotiable fees in a closing statement:
Applying For A Mortgage: Documentation Checklist
August 15, 2008 by Erik Folgate
Filed under Real Estate
My wife and I are in the process of buying a house. We’ve owned one other piece of property in the past, but this time is much different. The market is different, the amount is much more, and we don’t have a loan from her parents for a down payment. If you are in the market for buying, you need to start collecting your financial documentation right now. Here is a somewhat comprehensive checklist for the documents that you loan processor will need to get you approved for a loan.
Make clear, legible copies of all of these documents:
5 Steps To Prepare For A Natural Disaster
August 12, 2008 by Erik Folgate
Filed under Insurance, Planning, Real Estate
The Iowa floods, the California wildfires, the earthquakes and typhoons in Asia, and the hurricanes in Florida and the Gulf make us cringe thinking about them. Mother nature is a powerful beast. She does not discriminate, and she does not give warning. We can all relate to going through a natural disaster or know someone who had to go through it. Unfortunately, there are those that do no prepare for the worst. An essential part of being financially secure is planning for the worst. The emergency fund is part of this plan, and taking steps to financially protect yourself from natural disasters is also part of that plan. Here are five steps to help you prepare for a natural disaster.
How To Qualify For An FHA Mortgage
August 7, 2008 by Erik Folgate
Filed under Real Estate
The Federal Housing Administration offers a great mortgage product for those of you that don’t have much of a down payment for a house. It’s also good for those that need to live in a more expensive area, but don’t have a 10% down payment given the home prices in the area. Conventional loan lenders have tightened up quite a bit, especially in states such as Florida, Nevada, California, New York, and Arizona that boast a huge foreclosure rate. Bank of America won’t consider anyone for a loan in Florida without a 10% down payment, because they aren’t willing to take a risk on young buyers. Not having a huge down payment doesn’t always mean that you can’t afford a mortgage. The FHA has slightly more lenient underwriting guidelines, because they believe in the American Dream, and they realize that there are still many potential homeowners looking to buy with a solid financial picture.
Congress Approves Bail Out For Homeowners, Fannie Mae, and Freddie Mac
July 24, 2008 by Erik Folgate
Filed under Consumer News, Credit and Debt, Economic Policy, Economy, Politics, Real Estate
Here is the article from the AP, via Yahoo Finance about the House sailing through a bill to bail out homeowners and the Fannie Mae/Freddie Mac institutions.
I love how Yahoo Finance titles it a “rescue” when it should be called a “bail out”. Rescue makes it sound like Congress is doing such a great, noble thing. I know that I sound negative about this, and for some families, it will help them out. There were some families who were truly tricked into a mortgage that they didn’t understand. There were others that knew exactly what they were doing, but the power of greed took over and they moved up in house by taking advantage of creative financing. Then, there’s the mortgage lenders who knew exactly what they were doing the whole time. They’ve been in the business for a long time. They knew these people couldn’t afford the houses they were financing, but they still extended the credit.
Is It Wrong To Make A Low Ball Offer?
July 21, 2008 by Erik Folgate
Filed under Real Estate
The real estate market is down. We all know that. Since real estate agents have been dying to make a sale, they’re now pitching the slogan that it’s a “buyer’s market” right now. They’re right, you can find great deals right now on newer construction and properties in pre-foreclosure. We have been looking around for houses in the Orlando, Florida area. This area was hit very hard by the housing downturn. Every other property is either in pre-foreclosure, bank-owned, or a short-sale. We found a few properties that we love. They tastefully renovated, but it appears that speculators weren’t able to flip the property quick enough. Now, they are desperate to sell, and we’re wondering how desperate.
A Calculator For How Much House You Can Afford
May 19, 2008 by Erik Folgate
Filed under Real Estate
Smart Money has a good calculator for figuring out how much money the bank will lend you based on some basic income information and factor in the down payment you can shell out to figure out how much house you can buy.
I liked the calculator, because it used a fairly conservative ratio for figuring out how much you can afford. The ratio was about 28% of your gross household income. When people ask for my opinion about this subject, i always use the 25% rule. If your gross household income is $4,000, then a conservative house payment is about $1,000 a month. Going a little over this isn’t going to kill you, but when you get in the 35 to 40% range, you’ll start falling into that “house poor” category.
My Friend’s Experience With Buying A House During The Housing Bust
May 12, 2008 by Erik Folgate
Filed under Real Estate
Recently, I asked my friend who recently bought a house just outside of Atlanta, to share her experience with buying a house as a first time homeowner during a time when people are generally scared to buy or sell their home. Here is her truthful, insightful account of buying their first house.
The Best Way To Refinance Your House
May 7, 2008 by Erik Folgate
Filed under Real Estate
If you haven’t noticed, mortgage lenders, brokers, and their agents are hurting right now. They’re looking for any business they can get. They’re not getting it from new business, because no one is buying a house right now. So, mortgage companies are looking for their business from the refinance market. That’s why you shouldn’t settle for anything less than the best refinance situation that is possible. Here are a few things you should look for when picking a lender or broker to refinance your mortgage.
Do We Always Need The Government Fixing The Economy?
April 10, 2008 by Erik Folgate
Filed under Credit and Debt, Economy, Real Estate
Fed Reserve Chairman, Ben Bernanke, made a statement today in Richmond that struck me the wrong way. He said:
“We do not have the luxury of waiting for markets to stabilize before we think about the future,”
