Do you know what the fastest-growing group of homebuyers in the country is? It’s single women. In fact, the National Association of Realtors (NAR) reported in 2006 that one in five homebuyers was a single woman. They are buying homes in greater numbers than single men: 21 percent female versus 9 percent male.
Researchers report that women want to nest earlier than men and are increasingly getting the financial power to do it. Women are narrowing the wage gap and today are much more likely to have a college degree than men. In 2005, government data shows women who were full-time wage and salary workers and median weekly earnings of $585, or 81 percent of the $722 median for their male counterparts, up from about 63 percent in 1979.
So what about married couples? They make up 60 percent of home-buyers, according to the NAR, but that figure is sliding. Current figures are down from 70 percent only twelve years ago. Those who are getting married are doing so later. The average age of marriage in 1960 was twenty-three for American men and twenty for American women. In 2005, it was twenty-seven for men, twenty-six for women.
According to a 2002 Rutgers University study, divorced women are less likely to remarry than divorced men, and if they do remarry, they tend to wait a lot longer. That gives them more time to become homeowners. And a 2003 Sears, Roebuck and Company survey showed that 92 percent of the women surveyed viewed their homes as an investment rather than a drain on their financial resources. The survey also said that 13 percent of women are buying second and vacation homes. Also rising is the number of single buying older homes, renovating them, and selling for a profit.
Anyone preparing to borrow for her first mortgage should make sure her credit reports don’t reflect incorrect data or have consistent occurrences of late or missed payments. Lenders look down on slow payers, and incorrect data could mean possible identity theft. Sites like www.homeloansfargo.com have information on the different ways that you can borrow money in order to buy a house.
The news is not good for all demographic groups. A December 2006 study by the Center of American Progress said home ownership growth slowed markedly for newer, younger homebuyers. Compared to the late 1990s, increases in homeownership rates after 2000 dropped by about three quarters in African American, by about half for whites, and by about one quarter for Hispanics. Since the end of 2004, U.S. Census Bureau data shows that ownership rates, particularly for African Americans, actually declined. The main reason was sky-high home values, which haven’t really fallen all the much – despite general slowdowns in regional housing markets. You will find more information about home loans on www.minneapolismortgagebrokers.org/
Tuesday, September 17, 2013
Monday, September 9, 2013
Doing the Credit-Score Shuffle for a Mortgage Application
The credit score is the single most important item in every individual’s financial portfolio. It means the world in terms of borrowing power, advantages for lower interest rates, and negotiating lower fees. Most people don’t have a clue about what their score is, how it was determined, and what it means.
Pay the Minimum, Pay on Time
If you’re unable to pay off credit card balances in full, at least pay the minimum due, on time, every month. Otherwise your credit score will plunge.
It’s not too late to turn the negative picture around, but it will take time. If you don’t want to make things more complicated to handle, then take notes. Start today organizing all your bills and, assuming you can pay them, begin to pay each bill on time each month.
To help create a positive attitude about money, write the words “Thank You” in the memo section and any check you write. Be thankful that you have the money to pay your bills and be thankful for the service that was provided to you. If you have a positive attitude about money, you may begin to see money flowing more easily into your life.
If you can pay more than the minimum, do so. It takes about two years to turn around a negative credit history. But it can be done. You have to be diligent and consistent. A pattern of regular, on-time payments is the key.
Along the way, put aside credit cards, especially if you have too many (more than three major cards is probably too many), and keep paying down the balance bit by bit, month by month. It will matter. Remember, credit scoring is a somewhat peculiar science. There are things you must know; don’t assume anything.
Your credit score is the single most important element in determining your ability to borrow. To lenders it is more important than the stability of your employment, the honesty in your heart, and the way you treat your mother. The credit check and your resulting score is the first step toward prequalification. Never skip a bill in your life if you can help it. You don’t want to shoot yourself in the foot; especially when it comes to home mortgages.
Pay the Minimum, Pay on Time
If you’re unable to pay off credit card balances in full, at least pay the minimum due, on time, every month. Otherwise your credit score will plunge.
It’s not too late to turn the negative picture around, but it will take time. If you don’t want to make things more complicated to handle, then take notes. Start today organizing all your bills and, assuming you can pay them, begin to pay each bill on time each month.
To help create a positive attitude about money, write the words “Thank You” in the memo section and any check you write. Be thankful that you have the money to pay your bills and be thankful for the service that was provided to you. If you have a positive attitude about money, you may begin to see money flowing more easily into your life.
If you can pay more than the minimum, do so. It takes about two years to turn around a negative credit history. But it can be done. You have to be diligent and consistent. A pattern of regular, on-time payments is the key.
Along the way, put aside credit cards, especially if you have too many (more than three major cards is probably too many), and keep paying down the balance bit by bit, month by month. It will matter. Remember, credit scoring is a somewhat peculiar science. There are things you must know; don’t assume anything.
Your credit score is the single most important element in determining your ability to borrow. To lenders it is more important than the stability of your employment, the honesty in your heart, and the way you treat your mother. The credit check and your resulting score is the first step toward prequalification. Never skip a bill in your life if you can help it. You don’t want to shoot yourself in the foot; especially when it comes to home mortgages.
Thursday, September 5, 2013
RHS Loans
In 1994, the Department of Agriculture Reorganization Act created the Rural Housing Service to boost home ownership in dying rural communities around the country. Also known as Section 502 Guaranteed Rural Housing loans, the RHS program requires no down payment. Loans like debt consolidation home loan are typically amortized over thirty years.
Section 502 loans are for low-income borrowers who want to purchase homes in rural areas. Funds can be used to build, repair, renovate, or relocate a home. They can also be used to purchase and prepare sites, including typically amortized over thirty years.
Section 502 loans are for low-income borrowers who want to purchase homes in rural areas. Funds can be used to build, repair, renovate, or relocate a home. They can also be used to purchase and prepare sites, including providing water and sewage facilities.
The payments are subsidized based on a 1 percent interest rate for the lowest-income borrowers. A portion of the subsidy must be repaid if the house is solid, based on the length of time the borrower lives in the property. If the borrower’s income goes up, so does the interest rate. Loan limits vary depending on where the borrower lives.
Questions to Ask Before Participating in a Federal Loan Program
A break on a mortgage loan sounds great at first, but it’s critical to know if you’re ready to apply. Ask yourself the following questions:
• Does my income and buying power qualify me for participation in this program?
• Have I cleaned up any credit programs?
• Have two years passed since any bankruptcy was discharged?
• Am I prepared to be a responsible homeowner?
• Am I prepared to take on maintenance and renovation responsibilities to maximize the value of my property?
No matter whether you’re a first time buyer home loans or a borrower coming back into the market after a bout of bad credit, it is necessary to know how the mortgage marketplace works. Never be afraid to ask about things you don’t understand. It’s important for all potential borrowers to know the mortgage industry’s strengths and weaknesses before wading in.
Section 502 loans are for low-income borrowers who want to purchase homes in rural areas. Funds can be used to build, repair, renovate, or relocate a home. They can also be used to purchase and prepare sites, including typically amortized over thirty years.
Section 502 loans are for low-income borrowers who want to purchase homes in rural areas. Funds can be used to build, repair, renovate, or relocate a home. They can also be used to purchase and prepare sites, including providing water and sewage facilities.
The payments are subsidized based on a 1 percent interest rate for the lowest-income borrowers. A portion of the subsidy must be repaid if the house is solid, based on the length of time the borrower lives in the property. If the borrower’s income goes up, so does the interest rate. Loan limits vary depending on where the borrower lives.
Questions to Ask Before Participating in a Federal Loan Program
A break on a mortgage loan sounds great at first, but it’s critical to know if you’re ready to apply. Ask yourself the following questions:
• Does my income and buying power qualify me for participation in this program?
• Have I cleaned up any credit programs?
• Have two years passed since any bankruptcy was discharged?
• Am I prepared to be a responsible homeowner?
• Am I prepared to take on maintenance and renovation responsibilities to maximize the value of my property?
No matter whether you’re a first time buyer home loans or a borrower coming back into the market after a bout of bad credit, it is necessary to know how the mortgage marketplace works. Never be afraid to ask about things you don’t understand. It’s important for all potential borrowers to know the mortgage industry’s strengths and weaknesses before wading in.
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