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5 Reasons to Buy a Home in the next 5 Months

clock July 24, 2014 06:50 by author MyTitleDirect
by Hal M. Bundrick courtesy of Yahoo Homes : July 21st, 2014       A combination of market factors may make you think you're getting priced out of the home market. But one observer believes first-time homebuyers might want to consider making a move.  "I know it's hard to face rising interest rates and rising home prices at the same time," says Ilyce Glink, real estate expert and managing editor of the Equifax finance blog. "The good news is there's still plenty of runway if you want to buy a house this year." Glink believes first-time homebuyers should consider these five good reasons to buy a house before the end of the year: Home prices are still off their highs Yes, home prices are rising from the lows seen during the housing crash of 2008, but they're still nearly 20% off their mid-2006 peak. According to the S&P/Case-Shiller Home Price Index, average U.S. home prices are currently at summer 2004 levels. In markets that are still recovering, first-time homebuyers could see significant appreciation over the next few years, if they buy now. Interest rates are expected to keep rising Interest rates are slowly climbing, and as the Federal Reserve concludes its economic stimulus plan, rates are expected to continue to rise. Some experts believe mortgage interest rates could hit 5% by the end of 2014 or the first quarter of 2015, according to Glink. And even a small bump in interest rates can mean a significant jump in your monthly note. "If you're offered a 4.2% interest rate on a $400,000 mortgage, for example, your monthly payment will be $1,961, and you'll pay more than $300,000 in interest over the loan's 30-year term," Glink says. "If your interest rate were 4.9%, your monthly payment would jump to $2,115, and the total interest paid over the life of the loan would exceed $360,000." Rental rates are rising There is always an argument to be made regarding whether to buy or rent. It's all a matter of your particular situation – as well as the status of your local housing market. If you need to be mobile -- prepared for job transfers or out-of-state promotions -- or are continuing to search for "the perfect place," renting is probably right for you. However, if you would like to put down some roots, and rents are high in your hometown – it might be cheaper to buy. "Divide the list price of the home you're interested in by the annual rental rate of a comparable property to determine the price-rent ratio," Glink advises. "If it's below 20, chances are it's a good time to buy." Of course, buying a home means more than a mortgage. Remember to consider the other built-in expenses: maintenance, insurance, taxes and utilities. Consider your buying power Americans have been steadily reducing their debt load. Maybe you have, too. The lower your debt, the higher your buying power. Creditors will consider your debt-to-income ratio – how much debt you have, compared to your gross (before-tax) income. "Experts generally agree that you can spend between 28% and 36% of your gross income in total debt service -- that's your housing expenses plus your other debt payments," says Glink. With lower debt comes a higher score As you pay off student loans, credit cards and consumer debt, your credit scorewill improve. And that's one of the biggest factors mortgage lenders consider when determining the interest rate and terms of your loan. "You should definitely consider buying this year, because it's unlikely the housing market will look much rosier next year, when interest rates and home prices could be even higher," Glink says.


Final Loan Approval: Underwriting Explained

clock June 5, 2014 09:30 by author MyTitleDirect
Now that your lender has received your appraisal report, they can begin underwriting your file. The underwriter will make the ultimate decision of whether or not the loan is accepted or denied. They will verify all documentation submitted by the processing department and make sure the information meets the loan program guidelines. If there are any deficiencies, they will ask for additional documentation to remedy them. Once they’re comfortable that all guidelines and criteria have been met, a final commitment will be issued along with the final rate-locked Good Faith Estimate. Signing the Commitment It is now time to sign the final commitment. The commitment is a contract that is usually sent to all parties involved in the transaction including realtors and attorneys. Once you sign the commitment, you have accepted the conditions in the contract and your mortgage has been completed. At this point, both you and the bank are obligated to fulfill all the terms of the mortgage and failing to do so will put your down payment and other prepaid fees at risk. Now that the commitment is signed and executed, all parties are notified and you are now ready to work on closing.   Download the article on Buyhomeapp.com


Title Insurance Series: The Good Faith Estimate (GFE) Why You Order Your Own Title Insurance Part 4 of 8

clock July 18, 2013 11:27 by author MyTitleDirect

We will be beginning Part 4 discussing one of the most important of the sections on page 1 of the Good Faith Estimate (GFE): the SUMMARY OF YOUR LOAN. We will discuss this sections and how they relate to a purchase and a refinance transaction.


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Title Insurance Series: The Good Faith Estimate (GFE) Why You Order Your Own Title Part 3 of 8

clock July 16, 2013 08:52 by author MyTitleDirect

We will be beginning Part 3 discussing some of the sections on page 1 of the Good Faith Estimate (GFE): PURPOSE, SHOPPING FOR YOUR LOAN, and IMPORTANT DATES. We will discuss these sections and how they relate to a purchase and a refinance transaction.
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Good Faith Estimate (GFE): Why You Should Order Your Own Title Insurance On a Purchase or Refinance Part 2 of 8

clock July 8, 2013 12:10 by author MyTitleDirect

In this article, we will be discussing what a Good Faith Estimate is (GFE), who provides it and what it means. The average person does not know what a GFE is and too often think that they are “mandatory” charges by the bank. If you look at a GFE, you will see there are also Title Insurance charges on it. These charges, unlike popular belief, are not mandatory charges. In fact, nearly almost every charge on your GFE are all estimates, hence the name Good Faith Estimate.


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Title Insurance Series: Why you Should Order your Own Title Insurance Part I of VIII

clock June 26, 2013 10:15 by author MyTitleDirect

Shopping for title insurance may seem like a tricky and complicated subject. It is not all that hard though. In fact, Title insurance shopping can be compared to grocery shopping. You want to find the best product for the lowest amount. Now just because a place like Costco, Sam’s club or even BJ’s might have a cheaper product does not mean the quality of the product has been compromised. In fact, the product has all the same packaging, information, writing and even the same quality product inside; the only difference is the price and quality of how the customer is treated.


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