It is commonly known that during these uncertain times, the housing market is nothing shy of murky. Economic analysts everyday are putting out new statistics, dates, and predictions, which are supposed to accurately depict when the market will turn around. Many believe the housing market has completely bottomed out and in this day and age couldn’t possibly get any lower, though others still believe there will be even more pricing drops in the future. At both ends of the spectrum these individuals feel they are correct.
What is an even more bothersome factor that plays a large role in today’s housing market is that sellers believe their houses are more than fairly priced where buyers are anticipating even lower prices. Therefore it can be asked, with the market in the condition that it is in, how can one determine what is and isn’t a fair price? Regardless of whether or not prices are going to fall even more, it is clearly a buyer’s market. There is an abundance of houses for sale and not many are selling at the current prices the owners are looking for.

With the economy in the state that it’s in, buyers hold their right to be selective when searching for a home. It is recommended that when searching for a home you declare a target price for yourself and stick to it. Sellers have realized that in order to receive an offer from a potential buyer they must greatly reduce their price expectations. Prices on an average drop ten percent within six months of originally being listed.

The most common indication of what a home will sell for can be determined by a comparative market analysis. This analysis is quite self-explanatory, either a real estate agent or an appraiser will look at similar homes in the region or neighborhoods the house is selling in and establish a basic price range. The factors that go into determining the price are the relative size, condition and amenities. How the house compares to ones similar also being sold is how one determines the appropriate value. Although, it should be known that short sales and foreclosures will be priced slightly below actual market value.

When thinking of things from a seller’s point of view, how the home is priced greatly depends on how eager they are to sell the house. Potential buyers have many other options. Buyers are usually more patient and therefore have no problem waiting for houses to drop in value or searching around for a different similar house. It is recommended to look at houses that are reduced greatly in price at once rather than little by little as a seller who cuts his price greatly appears to be more eager to sell their home.

If you’re considering purchasing a new home located in New York, Long Street Home Equity Corp. can assist you! We don’t require that you have great credit, high income, and lots of equity in your home. At Long Street Home Equity Corp., we’ll work with you if you’re strong in just one of these areas. Simply click the contact button at the top of our blog to get started.

Since the housing crash a few years back, one of the biggest changes has been in the form of the down payment. When the market was doing extraordinarily well it had seemed that down payments were almost nonexistent and if they were they were merely irrelevant to both the borrower and the lender, it seemed that almost nothing was required to be put down in order to secure a stable mortgage from a well know financier. Though nowadays, things have changed greatly, a sizable down payment is not only essential in order to get a loan with good terms but it is necessary to just get an approval for a loan in the first place.

As of now, the current benchmark for a down payment is at about twenty percent. This of course implies that one is to pay twenty percent of the worth of the property in cash, and the remaining eighty percent will be the amount paid through the mortgage. Those who can afford to make such staggering down payments are thought to be more likely to repay the mortgage. Once able to put down such a large percentage of the property, you will receive favorable terms from the lender.

It goes without saying that your primary source of funds for the down payment will more than likely come from your own savings account. In some certain cases you can also pledge securities such as stocks and bonds. Lenders also allow the borrower to borrow against your retirement account, in some cases you must first be approved by the administrator of your IRA.

In the event that the target was appraised for more than the purchase price of the house you cannot contribute the difference toward the down payment itself. The only exception of this is if and only if the seller is willing to raise the purchase price and contribute the difference themselves to assist for the down payment of the loan. This is a perfectly legal option, which is often called a seller assisted down payment. However, if the purchase price is raised too high and exceeds the assessed value of the property you could end up being rejected by your lender.

It should of course be noted that reality is not always so cut and dry. The actual importance and necessity of your down payment will depend greatly upon a number of factors which include your credit score, income, area of residence, and so on. In the end, you should seek to understand the position your lender is in and be sure you have the right idea as to what you can clearly afford to take out consider your financial standing.

If you’re considering purchasing a new home located in New York, Long Street Home Equity Corp. can assist you! We don’t require that you have great credit, high income, and lots of equity in your home. At Long Street Home Equity Corp., we’ll work with you if you’re strong in just one of these areas. Simply click the contact button at the top of our blog to get started.

Most homebuyers go about conducting their house shopping before they obtain financing. After all, it is impossible to obtain a loan for property if you have not yet purchased it. However, it is possible that you can achieve a loan guarantee from a potential lender in the beginning steps of looking for a home. This would allow you to close on the purchase of a house immediately after selecting it, in this situation you would be able to move into your new home much quicker without the average wait time it would take to be approved for a mortgage.

This process is commonly referred to as a “pre-approval”. This is a guarantee that represents commitment from a specific lender to provide a mortgage for the prospective buying of a new home. This pre-approval depends on your credit score and a few other financial characteristics, most importantly: your pertaining assets and income. The lender will then determine your maximum monthly payment that you can afford to make. Interest rates are then applied to figure in order to determine the total overall mortgage amount that fits your financial budget.

A pre-approval hosts a number of advantages for a first time buyer. Initially, you can shop for a home with the confidence and knowledge that you can obtain financing for the house as long as it falls within the specifications provided to you by the lender. Another helpful advantage is that the pre-approval letter can be used as a token of negotiation between you and the seller. If two potential buyers make similar offers on the same property, the seller may be inclined to accept your offer if you hold a pre-approval as they will be able to close the sale quickly, making the deal beneficial to all.

If a lender does not offer a pre-approval they may allow you to enroll in a pre-qualification program, which is described as a less rigorous assessment of how much they borrower can afford based on unverified data. At times a pre-approval may not be eligible unless a loan application has been turned in. therefore; a pre-qualification is useful to give the borrower a rough estimate of the type of home and price range they should be looking at.

A potential buyer should ultimately be aware of the distinction between the two and be more inclined to opt for a pre-approval, as it would be greatly beneficial to both themselves and the seller. Most lenders should be willing to offer a pre-approval so be persistent and attempt to get a pre-approval as it will greatly speed up the home buying process.

If you’re considering refinancing or purchasing a home located in New York, Long Street Home Equity Corp. can assist you! We don’t require that you have great credit, high income, and lots of equity in your home. At Long Street Home Equity Corp., we’ll work with you if you’re strong in just one of these areas. Simply click the contact button at the top of our blog to get started.

Mortgage denials are becoming increasingly common, even with a steady income and twenty percent down you are likely to be denied for a loan. The mortgage banker’s association reports that over fifty percent individuals looking to refinance their mortgages have their applications are turned down. Those who are prospective home owners seem to fare a little better, when looking to buy a home the denial rate is slightly lower at around thirty percent. Denials are normally due to bad credit, low income or low appraisals.

The most common reason loan applications are turned down are because the potential borrower does not have a decent enough credit history in order to achieve approval. About thirty to forty percent of refinancing requests are turned down for this reason alone, another factor contributing to potential home buyers’ denial of a loan is an immense amount of debt.

Banks at this time are only approving those with strong credit scores and a low debt ratio. A debt ratio is calculated by the percentage of money you pay on outstanding loans every month compared to your total income. With your mortgage payment included, banks would like this ratio to be at or under 30 percent. For most a debt ratio this low is out of the question and it is difficult if not nearly impossible to go about lowering your ratio.

Before approving a loan, lenders also would like to be sure the borrower has an adequate amount of savings. They feel comfortable when the individual has enough savings in the bank to cover several payments, in case the borrower is to lose their job and be without income for some time. Generally, they would like to see at least 2 or 3 months of payments in either a savings account or an investment account. Most looking to refinance do not have this readily available.

Many people would love to refinance and take advantage of the currently low interest rates and use the extra money they save to pay off existing debt and reduce their rate even further. Though, because of these of these strict lending standards it is becoming more and more difficult to become approved. In conclusion, in order to be approved for a low rating you are going to need an outstanding credit score, steady income, decent down payment, and a low amount of debt, otherwise, like the other fifty percent, you will likely be turned down.

If you’re considering refinancing your home located in New York, Long Street Home Equity Corp. can assist you! We don’t require that you have great credit, high income, and lots of equity in your home. At Long Street Home Equity Corp., we’ll work with you if you’re strong in just one of these areas. Simply click the contact button at the top of our blog to get started.

**Everyone’s financial situation is unique so it is important to consult with a licensed mortgage specialist to discuss your specific circumstances before taking any actions.**

It may seem rational that paying off an outstanding debt would help someone qualify for a home loan; however, this is just not the case. In fact, this may have negative impacts on getting pre-approved for a mortgage!

Paying off a car loan reduces the amount of funds available for a possible down payment or any savings to have for after closing that may be required. When a automobile is paid off, that credit line is closed. Credit bureaus favor older established debts with a good payment history. Once this account is closed, believe it or not, your credit scores will most likely go down.

On the other hand, when it comes to debt-to-income (DTI) ratios, many mortgage program guidelines will not count installment debts when there are less than ten months of payments remaining on the term of the loan. If you have enough funds for your home’s down payment as well as savings reserves, you could pay down (instead of paying off) your auto loan to have only 8 payments remaining on your term. This may cause you to have the car payment considered in your DTI ratios for qualifying for a mortgage loan.

It is also important to take early pay-off penalties into consideration. Check your loan agreement to see if this is mentioned. Many auto loan lenders will charge you a percentage of the principal as a fee when you pay off your loan early. If your repayment penalty is “pre-computed” or “front-loaded,” your early repayment will cost you the same as making payments throughout the duration of the loan term.

If you’re considering buying a home located anywhere in New York, Long Street Home Equity Corp. can assist you! We have loans that fit your needs without you having to change your lifestyle in any way. We don’t require that you have great credit, high income, and lots of equity in your home. At Long Street Home Equity Corp., we’ll work with you if you’re strong in just one of these areas. Simply click the contact button at the top of our blog to get started.