Real estate agents are a dime a dozen, right? While it’s true that buyer’s agents and seller’s agents are in no short supply, a good real estate agent is something to appreciate. So how do you know if they’re good, and—even better—how do you know if they’re good for you?
Can you buy a home without a buyer’s agent? Of course you can. Just like you can sell a home without a seller’s agent. Here’s the deal, though: Those decisions tend to cost you time, energy and, most of all, money!
Naturally, having a good credit score and making a down payment of 20% or more can help you secure the best interest rate, but there’s something else you can do to lower that rate even further. It’s called a mortgage rate buydown.
It’s an age-old question, at least when it comes to mortgage interest rates: Is it better to float your rate or lock in your mortgage? There are pros and cons to each, which can vary based on the overall economy, as well as unpredictable factors that can cause rates to go up or down.
There are a few really important numbers when it’s time to obtain a home loan: your credit score, the amount you want to borrow, and the interest rate. The news is full of talk about interest rates lately. Will they go up? Will they go down? Will they stay down? When they go up, how far will they go?
A non-conforming loan is any loan that doesn’t adhere to the Fannie Mae and Freddie Mac lending guidelines. These government-sponsored enterprises (GSEs) have certain rules that loans—referred to as “conforming loans”—have to meet regarding loan amount and credit score.
It’s easy to get tunnel vision when you’re building a new home and it’s nearing completion. You can practically feel that beautiful wooden banister and picture your shoe collection in that marvelous walk-in closet. These visions keep you going when your home is being built, but before you pack up those shoes, you want to make sure you understand the loan process, especially how your permanent loan finalizes.
Building a new home can bring about a ton of questions—you may be mulling over everything from picking a builder and finding a location to deciding on the specific features you want. And that’s to say nothing of the home’s financing. Unlike an existing home with a permanent mortgage, building a home typically requires a home construction loan—at least during the construction phase. Thankfully, our construction lending team has you covered! We’ve streamlined the construction home loan process so you know exactly what you’ll be dealing with.
It’s true that credit can be an important part of qualifying for a home loan, but it’s not the end-all and be-all. There are buyers who get a home loan with little or no credit—the process just takes a few extra steps.
You know credit scores are important, but you may be wondering how they are calculated and what the big deal is. This all-important number can be looked at for a multitude of reasons: when you get a job, lease an apartment, open a new account, or apply for a loan—including a home loan.
Your credit score is an important factor when it comes to buying a home. That’s because it gives your lender a snapshot of how responsible you’ve been as a borrower through your payment history—which means they can assess how responsible you’re likely to be as a borrower going forward.
If you or your loved ones have been affected by a wildfire, our hearts go out to you. In this time of hardship and loss, we at American Pacific Mortgage send you our deepest sympathies and can only hope for a sense of calm and safety to be restored for you as soon as possible.
If you’ve owned a home over the past several years, chances are you have a great big smile on your face. That’s because you’ve probably watched your home’s value go up and up (and up). This is where all that scrimping, saving, and stressing over the homebuying process really pays off.
Equity. The word alone sounds promising, doesn’t it? It should. Equity equals value, and it’s a great strategy for building wealth.
But before you can put that equity to good use, you should first understand what home equity is.
Jumbo loans. Their name kind of hints at their function. The jumbo loan program is designed for loan amounts that exceed the conventional conforming loan limits of the Federal Housing Finance Agency (FHFA). In other words, they’re big loans. Some might even call them “jumbo.”
A large loan amount can mean something different to everyone—especially depending on where you live—which is why the FHFA carved out some guidelines on jumbo loans. Understanding them will be key to understanding when you need a jumbo loan.
With all the specialized loan programs out there—FHA, VA, etc.—it’s easy for the standard, conventional loan to get lost in the shuffle. After sifting through all these programs, you may find yourself stepping back and asking, “Wait, just what is a conventional loan?”
The word “conventional” simply means the loan is not part of a specific government program like FHA and VA loans are. Instead, they’re offered by mortgage companies, banks, and credit unions. Conventional loans that follow specific guidelines set by Fannie Mae and Freddie Mac—two federally backed companies that buy and guarantee mortgages—are known as conforming loans.
What is an FHA loan? The literal definition of an FHA loan is pretty straightforward: It’s a mortgage that’s insured by the Federal Housing Administration. But that doesn’t really tell you much.
So … let’s try again. What is an FHA loan, really? FHA home loans are geared toward borrowers who have lower down payments or credit challenges that may make it difficult to buy a home. This makes these loans particularly attractive to first-time homebuyers.
Understanding the homebuying process is one thing, but did you know you should also have a solid grasp on the mortgage process before you look to buy a new home? That’s because one typically precedes the other. Unless you’re an all-cash buyer, you’ll want to understand how the mortgage process works. Once you do, it’s a whole lot simpler to create your housing budget, make a list of your needs vs. wants, and proceed with eyes wide open.
