Refinancing

How Soon Can I Buy a House After a Foreclosure?

In my last article, we discussed how soon you can buy a home after a bankruptcy or short sale, and the standard time frames in which you must wait before re-applying for a home loan. Today we will go over deed-in-lieu of foreclosure and foreclosures, and your waiting periods in their wake. Buying After Deed in Lieu of Foreclosure A Deed-in-Lieu of Foreclosure may happen when a homeowner realizes they aren’t financially stable enough to keep their house, and subsequently offers to deed their property to the lender. If the lender accepts, they in return forgive the homeowner’s debt and waive the right to pursue them for further payments. This situation is rare, but not unheard of. If you find yourself in this way, and would like to apply for a conventional home loan, you will need to wait four to seven years depending on your specific case. You may find…

Read More

How Soon Can I Buy a House After a Bankruptcy or Short sale?

Since the financial crisis of 2007, it seems like everyone knows at least one person who’s pocketbook was hit hard resulting in the loss of their house, or the need to file for bankruptcy. Maybe that person is you. You’ve been through some tough times lately; You’re not alone. Now that you are getting back on your feet, you may be asking yourself, “When can I buy a house again?” Let’s discuss your options for buying a new home after bankruptcy or short sale. Buying a New Home After a Bankruptcy The definition of filing for bankruptcy is the legal proceeding in which an individual is unable to pay their outstanding debts. There are two types of bankruptcy; Chapter 7 and Chapter 13. Chapter 7 bankruptcy occurs when an individual files a petition, their assets are evaluated and used to pay back some of his or her outstanding debt, and…

Read More

Some Things to Avoid Before Closing on a Mortgage

Once you’ve been pre-approved, you are ready to buy as long as there are no major changes in your financial situation. These are some things you need to avoid before you’ve closed on your new home. Don’t buy or lease a car – Unless you have to, it’s better to put off any big purchases until after you’ve closed on your new home. A large increase in your debt-to-income ratio could be a problem. If you have to buy something, call your loan officer before making any major purchase so they can see how this will affect your mortgage approval. Don’t move assets from one bank account to another – If you do, we will need to have a paper trail to document the source of funds for each new account or large deposit. If you want to consolidate accounts, it’s better to wait until after you have closed. Either…

Read More

Qualifying for a Mortgage: A Look At Assets

Assets Qualifying:  This is the third major area we look at, and here we mostly want to make sure you have enough money for your down payment and closing costs, and in some cases, money in reserve. Again, we get back to the idea of risk. The lender as a rule wants you to have your own money invested in the property you’re buying. The thought behind this is that if you have your own money at stake, you’re more likely to take care of the property and make sure you make your payments on time. It used to be that in order to get a mortgage, you needed to have 20% of the purchase price as a down payment. That’s not the case anymore. There are loan programs that let you buy with low down payments, or in some cases no money out of your own pocket at all….

Read More

What Is Happening To Mortgage Rates?

Over the last month mortgage rates have moved steadily higher, and over the last week rates have spiked to the highest point in the last 2 years. For most of the last year rates have been stable and hovering around 3.5% (before pricing adjustments). This has been a result of the Fed’s program to buy mortgage backed securities (which determine mortgage interest rates) as a way to stimulate the economy by driving down mortgage rates. The concern has always been:  What will happen when the Fed pulls out of the market? The experts have expected that rates will go up over time, but that the rise would be gradual. Rates moved higher over the last month when the Fed indicated that the economy was growing at a good pace, and they expected to start tapering off of the stimulus program by the end of the year. This last Wednesday, Fed…

Read More

Economic Trends – Chicago Illinois Mortgage Rates Week in Review for the Week Ending 05/03/2013

While we have seen rate increases in the early part of 2013, the end of April showed record lows for the year so far. Finance reporters and rate strategists watch the economic trends, they are discussing a casino-like scenario where buyers are gambling to hold out for a better rate or lock in the current ones. To further assist the market, new mortgage delinquencies are at 6 year lows which should help to gently apply the brakes to the foreclosure situation that has kept home values at bay; although the effects will take a while to ripple through the system. There is still a major foreclosure buying opportunity in the marketplace. Estimates still have foreclosures representing over 40% of home sales here in the Chicagoland area, but the number is heading downward. Factors that cause light volatility in mortgage interest rates will continue for the near future. The jobless numbers…

Read More

Chicago Area Mortgage Refinance – Articles of Interest

Chicago Mortgage Refinance Taking Time to Clear Several financial institutions are facing stockpiles of mortgage applications as Chicago homeowners take advantage of low interest rates and the Home Affordable Refinance Program.  According to a Mortgage Bankers Association survey released Wednesday, nearly 80 percent of all mortgage applications are for refinancing.  For mortgage applicants not taking advantage of HARP, experts recommend borrowing from a community bank as the waiting times for approval are not as long. FHA Streamline Refinance to Help Chicago Homeowners In June, the FHA began a new program that will help from owners with FHA mortgages save a lot of money. The new FHA program will allow borrowers who currently have an FHA mortgage to refinance with today’s record low rates, and keep their mortgage insurance at the same rate they started with even though the FHA mortgage insurance premium now is much higher. The catch is, this…

Read More

FHA Streamline Refinance – New Program Will Help Some Chicago Area Home Owners Save Money

Starting in June, FHA will begin a new program that will help some home owners with FHA mortgages save a lot of money, but many other wise qualified homeowners won’t be able to take advantage of this new program. The new FHA program will allow borrowers who currently have an FHA mortgage to refinance with today’s record low rates, and keep their mortgage insurance at the same rate they started with even though the FHA mortgage insurance premium now is much higher. The catch is, this program only applies to those borrowers who took on the mortgage (either from a purchase or a refinance) before June 1st 2009. This means that if you bought your home or refinanced with an FHA mortgage in the last 3 years, you are out of luck, at least for now. With the new FHA streamline refinance the Upfront mortgage insurance is reduced to .01%…

Read More

Chicago Area Mortgage Refinance – Take Advantage of the Lowest Rates Ever

** This is a re-post of a previous article, but it is applicable now. We live in interesting times. Over the last several years we have seen a series of refinance booms as rates dropped to what had previously been unthinkable rates. Each time rates dropped we were sure they couldn’t go any lower. But here we are again, and mortgage rates are the lowest they have been since they’ve been keeping track of mortgage rates. The reason for the drop in rates is due to fear of softness in the economy, and this isn’t good news. But when you , if you can save money by refinancing your mortgage this could help by lowering your monthly payment or cutting years off your loan and paying your house off early. Why should you consider refinancing? You can lower your interest rate and payments. You can shorten your loan term and…

Read More

Mortgage Rates Are at the Lowest Point for 2011 – Is There a Refinance in Your Future?

Did you miss out on refinancing last year when mortgage rates dropped to their lowest point in our life times? Last Fall, right before the Fed announced their last round of the Quantitative easing policy, mortgage rates dropped to as low as 4.00% (for the best qualified conventional loans). The consensus at the time was that the economy needed more juice to keep it growing, and that rates were likely to drop even lower still. If you had considered refinancing at the time and missed the boat back then, you know what happened next. The Fed started the Quantitative easing program which pumped more money into the economy. The financial markets switched on a dime and while the big fear before was that the economy was growing too slowly and unemployment was too high, the new fear was that with all this money washing through the system, inflation was about…

Read More