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Knowing your credit score or getting a recent copy of your credit report is one of the first steps that you can take toward knowing how ready you are to start the home buying process.

Make sure all the information listed on your report is accurate and work to correct any mistakes. The higher your credit score, the more likely you will be to receive a better interest rate for your mortgage, which will translate into more ‘home for your money.'

Many potential buyers believe that they need a 750 FICO® Score or higher to be able to purchase a home. The truth is that according to Ellie Mae's Origination Report, over 53% of loans were approved with a FICO® score under 750 last month!

Here are some tips for improving your credit score:

  • Make payments, including rent, credit cards, and car loans, on time.
  • Keep your spending to no more than 30% of your limit on credit cards.
  • Pay down high-balance credit cards to lower balances, and consider balance transfers to free up credit.
  • Check for errors on your credit report and work toward fixing them.
  • Resist the urge to sign up for those special credit card offers — too many inquiries can lower your score.
  • Work with a credit counselor or a lender to improve your score.

Once you know your score, your next step will be to speak to us about getting pre-approved for a mortgage. Doing this will ensure that you know your budget before you start looking for your dream home.


For the Week Ending November 17, 2017

Please enjoy this quick update on what happened this week in the housing and financial markets.

The Producer Price Index, which measures wholesale inflation, rose 0.4% in October. Core PPI was also up, supporting a Fed rate increase next month.
Retail sales were also improved in October, coming in stronger than expected. The increase of 0.2% signals a growing economy and could pressure rates.
Tax reform continues to make progress in both chambers of Congress. Once passed, the reform is expected to spur further economic growth.
Home builder confidence hit an 8-month high in November, despite increased costs and labor shortages. Buyer demand remains high on reduced inventory.
National mortgage delinquency rates continue to fall, down 0.6% year-over-year in August. Foreclosure inventory was also down 0.3% year-over-year.
The House passed legislation to extend the National Flood Insurance Program for 5 years. However, the Senate still must approve the bill for it to take effect. 

Please note: We will not publish The Markets in a Minute next week.
Wishing you a wonderful Thanksgiving Day!

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.

 

Get the most important economic & housing news you need – simple and fast.

For the Week Ending November 10, 2017

Please enjoy this quick update on what happened this week in the housing and financial markets.

Traders continue to drive stocks to new heights and new records. However, concerns over the new tax reform plan going through have started to surface.
The tax reform plan is expected to drive economic growth and corporate profits. If the plan doesn't go through as anticipated, it could help interest rates.
The labor market remains strong. Job openings posted by employers in September were steady from the prior month, a near record high.
Rents have been increasing far faster than the pace of inflation. However, rising homeownership numbers could curb demand, slowing the increases.
New applications for purchase mortgages increased 1% last week. That's 9% higher year-over-year, as buyers seem less concerned about rates.
The tax reform plan, as proposed, would lower the mortgage deduction on new purchases. There are lots of opinions of what effect, if any, it would have on sales.

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.

Get the most important economic & housing news you need – simple and fast.

There's a lot of hype, chatter, and noise concerning the proposed changes to the Mortgage Interest Deduction in Trump's recently released tax plan.

The tax form proposal limits the mortgage interest deduction to $500,000 (down from a million) and to primary residences only.

The National Association of Realtors and the National Association of Home Builders almost instantly came out in opposition to the plan because of two changes that will limit the deductibility of mortgage interest. NAR President Warren Brown said, "The nation's 1.3 million Realtors® cannot support a bill that takes homeownership off the table for millions of middle-class families."

Related: How many families actually own half-million dollar home

Contrary to their concerns, the housing and mortgage industry will be just fine. Let's clear up some misconceptions. 

The only way the change will really affect you is if you buy a house with a mortgage over $500,000 after the plan goes in to effect. 

At the end of the day, policy changes to the mortgage interest deduction will only impact about 2.5% of American households. As always, if you have any questions or concerns, please contact us directly at (732) 626-9827. 

 

 


Here are four great reasons to consider buying a home today, instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.7% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.0% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have hovered around 4%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You Are Paying a Mortgage 

There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

4. It's Time to Move on With Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.

If purchasing a home for you and your family is the right thing for you to do this year, buying sooner rather than later could lead to substantial savings.

Ready to get started? Click here to get prequalified today!

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