Mortgage News

Qualifying for a Mortgage Loan – 3 Tips

If you’re interested in buying a home (especially for the first time), chances are you aren’t going to be paying the full price in cash. That means you’ll need a mortgage.

Before you start the home buying process, there are a few things you can and should be doing to maximize the chances you’ll qualify for a mortgage loan.

Here are 3 tips to get you started…

  1. Monitor and improve your credit score. A good credit score is important when it comes to home loans, so be sure you’re monitoring your score, clearing up any issues and staying up on payments for your current loans!
  2. Be able to show a steady income. It’s important to obtain regular and consistent paychecks to qualify for a home loan. This shows lenders that you have a reliable source of income and that there is a high probability that you’ll be able to make the proper payments on schedule.
  3. Improve your Debt to Income ratio. “The borrower writes down all monthly payments that extend beyond 11 months into the future. These can be installment loans, car loans, credit card payments, etc. The resulting number in the first step should be multiplied by .35. Total monthly debt should not exceed the resulting number.” – source: http://www.mortgagecalculator.org/helpful-advice/mortgage-qualifications.php

 

Looking for more info? Visit our website and give us a call if you’re in the South Florida and check out other resources like this one from BankRate for more info on pre-qualification.

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Can’t Get a Loan? We Offer Private Lending Options!

Bad Credit?

If you have money to put down, we can secure a loan for you! Although private lending carries with it a higher interested rate of 9.9 %, it IS an option for those of you have been denied a loan based on bad credit history.

Interested in a private loan for your mortgage? Give us a call at (561) 478-4780 or visit http://www.palmbeachmortgagegroup.com/contactUs.php

Benefits of Using a Mortgage Broker

Looking into purchasing a home? Wondering if you should use a mortgage broker? Let us help you decide by outlining the benefits you may see from choosing to use a mortgage broker!

Benefits of Using a Mortgage Broker include…

We save you time

Since we have established relationships with lenders, we able to save you a major headache! You aren’t stuck doing the leg work to line up your loan. We’ll take that on for you.

More options

We have dozens of options available to you and will help you find the most optimal loan for your specific needs.

Save money

Using a broker can save you different types of fees like origination fees, application fees and more.

If you’re interested in using a mortgage broker for your home loan, give us a call! We’d love to discuss your individual situation in more detail.

Give the team at Palm Beach Mortgage Group, Inc. a call today! We treat each customer as an individual, not a number. We don’t place you into a loan profile formula created by the banking industry. We use “common sense” and will help you obtain the best loan possible. We represent a wide range of “A” rated lenders with first quality rates to private “hardship” lenders.

(561) 478-4780

South Florida Home Prices on the Rise

August was a month that saw the prices of single-family homes in South Florida jump 20.5 percent. The average home in Miami-Dade went from $195,000 in August of 2012 to $235,000 in August of 2013. In Palm Beach, median home prices rose 16 percent to nearly $260,000. With the increases in home prices, the results have shown that fewer homes in the area being sold at loss. In Broward County only 29% of homes sold for loss, unlike a year ago which saw 47% of homes selling for a loss. In this past year 94% of homes have sold at, or above their list price, which is up 4%

The time that a home stays on the market before selling has decreased, while inventory has increased. Even though it wasn’t the incredible spike of 65% that we saw towards the end of December 2012, in June-August the amount of homes on the market rose around 15% to over 4,100 from 3,500 in May. This rise has helped to dilute the shortage of houses, which has been this summer’s trend. June only made up 1.2% of that rise.

While many homeowners are still “underwater” in their mortgage, the rise in prices over the summer has helped restore lost equity, presenting the opportunity for some home owners to finally sell. With interest rates still low, this provides sellers the opportunity to refinance now that they may have equity in their home. If you are looking to refinance please give us a call!

 

http://sflproperties.info/florida-real-estate-market-trends/home-inventory-up

http://www.miamiherald.com/2013/09/19/3636882/broward-existing-home-prices-rose.html

http://articles.sun-sentinel.com/2013-09-24/business/sfl-case-shiller-july-link-20130924_1_case-shiller-index-local-realtor-board-data-greater-fort-lauderdale-realtors

http://articles.sun-sentinel.com/2013-07-23/business/sfl-pb-county-home-prices-link-20130723_1_pb-county-home-prices-median-sales-increase

The 30 Year Mortgage is Here to Stay

A recent article featured on CBSnews.com discusses why the 30 year mortgage is here to stay. Currently two different bills making their way through the U.S. congress could theoretically put an end to the 30 year mortgage, but experts say it is extremely unlikely.

Here are the reasons why…

  • The 30 mortgage increased home ownership in the United States from 40% of the population all the way up to 60% where it stands today
  • These mortgage loans are made available by lenders because Fannie Mae and Freddie Mac back those loans with the full faith and credit of the U.S. government
  • Public demand will continue to make the 30 year mortgage an option for homeowners

Although there is a push to remove government backing of private home loans, expert Bob Davis (executive vice president of the American Bankers Association) believes that public demand will force the 30 year option to remain regardless of any potential legislative moves.

If you need help determining what loan is best for you, give the team at Palm Beach Mortgage Group a call today!

Early Evidence of Rates Hitting Home Sales More Than Prices

A perennial frontrunner of housing market trends, California’s data speaks to recent assertions that rising rates will affect sales more than values.  Home sales volume was slightly lower in June, the result of rising interest rates as well as the ongoing tight supply of inventory. Home prices, howevercontinued to climb with another double-digit year-over-year increase. The state’s median price remained above $400,000 for the third straight month.

(Read More: Rate Increases More Likely to Impact Sales than Home Prices)

The California Association of Realtors® (C.A.R.) reports that sales of existing single-family detached units were at a seasonally adjusted annual rate of 414,950 in June, down 3.8 percent from a revised rate of 431,490 in May and 3.7 percent from the estimate of 430,960 in June 2012.

“The June decline in home sales was attributed partially to the hike in interest rates in recent months.  The average 30-year fixed rate had been stabilizing at around 3.5 percent since the beginning of the year, until it jumped more than 50 basis points in June to reach above the 4 percent mark for the first time in more than a year and a half,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “This rate increase portends a somewhat higher rate environment going forward as the Fed mulls over the start of its tapering off program in response to positive signs from the economy.”

(Read MoreTaper Talk Hurts, But Not Enough to Stall Recovery – Freddie Mac)

The statewide median price of an existing single-family detached home rose 2.7 percent from May’s median price of $417,350 to $428,510. This was 33.5 percent above the median price in June 2012 of $320,990. Last month was the 16th consecutive one in which year-over-year prices were up and the 12th month when those increases were in the double digits.

Continue at http://www.mortgagenewsdaily.com/07162013_california_real_estate.asp