Prequalification and preapproval are two forms of mortgage approvals that, at their most fundamental level, refer to the processes a lender takes to confirm that a client can afford a mortgage.

A pre-qualification is a quick and simple approach to determining the maximum amount you might be able to borrow for a mortgage. You can acquire your estimated price range online in a matter of minutes by providing your lender with some basic financial data, such as your projected household income and debt..
A mortgage preapproval, on the other hand, is a more formal procedure that calls for the lender to confirm your financial data and credit history. Paystubs, tax returns, and even your Social Security card may be needed as pre-approval documentation.

This means that a preapproval is a more reliable indicator of your ability to pay and lends more weight to your offer than a prequalification. This will enable you to prove to sellers that your finances have been examined and that you can afford a mortgage by providing a preapproval letter. To be sure, though, confirm with your lender.

Today we are going to discuss two common mortgage loan products, and the pros and cons of both: FHA versus Conventional Loans.
Many people are familiar with the 20% down, good credit 30 year fixed conventional loan scenario. FHA loans are designed for people who have difficulty qualifying for a conventional loan to buy a house.
FHA Loans offer down payments as low as 3.5% and are more lenient on credit scores and past financial issues. Borrowers can qualify for FHA loans with as low as 580 credit scores.
One of the downsides of FHA loans are mortgage insurance requirements, if you put down less than 10% you will be required to pay monthly insurance for the duration of the loan, as well paying Upfront Mortgage Insurance Premium.
The best choice for you? Give us a call or apply online and we will analysis what programs suits your needs 😊

If you are shopping for a new home and looking for some good market news, there is some in the increase of housing supply. After dealing with monthly price increases and bidding wars, because demand was far higher than supply, we are looking a somewhat more balanced market (but still a seller’s market in most areas). According to the National Association of Realtors the stockpile of homes in months of supply has dropped from a record low of just 1.6 month in January and has slowly ticked up to 3.3 months in July.
So while it is still a seller’s market conditions are moving towards more balance – if you are looking, go to our website and fill out our pre-qual analysis to see how much you can qualify for and we can analyze what best fits your situation.

A lot of young Americans went to college, studied hard but in addition to getting a diploma, they also graduated with debt. Having loans is not a deal breaker but it will factor into the important debt-to-income (or DTI) ratio, and mortgage underwriters are primarily looking at the numbers so having it be student loan debt isn’t different from a car loan in the math.

Strategies to get approved with student loan debt
Pay it down – this maybe easier said than done but if you have extra money or got a raise then try to pay down the debt
Consolidate it – if you can consolidate your debt and lower your monthly payment (even not the overall loan amount) this will help your monthly DTI ratio
Co-sign – this can be a delicate process but its one to consider if you have a trustworthy, reliable family member or friend

Programs and Assistance
Sometimes a conventional mortgage might not be possible but there are options!
FHA, VA, and USDA loans offer a lot more flexibility and lower down payments than traditional mortgages
Grants and Programs – there are a number of grants and programs out there from the federal to local level that you may qualify for
If you’re interested in qualifying for a loan but worried about your student debt give us a call or apply online and we can see what best fits your needs!

You don’t have to be a news hound to know about inflation these days. You may have also heard about the Federal Reserve aggressively raising its main borrower rate to help combat inflation.
As we previously noted, long term mortgage rates are not directly tied to the Fed rate. So while home loan rates have gone up from their historic lows of a year ago, this week rates actually dropped significantly for 30 year mortgages. According to Freddie Mac the 30-year rate fell considerably to 4.99% down from 5.3% last week.

The average long-term US mortgage rate fell below 5% for the first time in four months, days after the Federal Reserve jacked up its main borrowing rate in an aggressive effort to get inflation under control.

The 30-year rate tumbled to 4.99% from 5.3% last week, mortgage buyer Freddie Mac reported Thursday. A year ago, the rate was 2.77%.

Rates are definitely violatile as there are mixed signals on recession (and its potential depth) as Freddie Mac’s economist Sam Khater noted, “mortgage rates remained volatile due to the tug of war between inflationary pressures and a clear slowdown in economic growth, high uncertainty surrounding inflation and other factors will likely cause rates to remain variable, especially as the Federal Reserve attempts to navigate the current economic environment.”

Definitely check in with us about current rates and we can see what program best fits your needs, just schedule a consultation or fill out our qualify wizard on our website.

You can lock in a mortgage rate after you’ve made an offer on a house and have a signed purchase agreement. The mortgage rate lock, means that you have a specific mortgage rate “locked in” for a period of time (typically 30 or 60 days). This rate lock means you’ll get that rate even if rates move higher or lower during the time your loan is being processed. Rate locks do expire and can cost a fee (basis points) depending on the rate and period. With today’s rates fluctuating you may want a rate lock but a keen eye on closing dates is important as well. Give us a call or schedule a meeting on our site and we can review your situation and see what best fits your needs!