Know Your Numbers

How To Calculate Your Mortgage DTI Ratios

When it comes to buying a home one of the most important numbers you need to know is your debt-to-income ratio (DTI). It’s a fairly easy calculation as long as you know how it works. First, you need to add all your liabilities (mainly accounts showing on your credit report) and divide it by your gross income, (i.e. $500 liabilities / $3000 gross income = 16.67% DTI). This is a very low DTI and most people that don’t own a house or an expensive car, boat, RV, etc., will have a low DTI. However, what most first-time homebuyers don’t know is how the math works when buying a house; they don’t realize the DTI lenders use includes the “proposed” (future) mortgage payment, including hazard insurance, mortgage insurance, property taxes and even HOA if there is one. READ MORE >>

Traditional vs Alternative (Mortgage Products)

What’s The Difference Between The Two?

Most people don’t know the difference between traditional vs alternative (niche) mortgage products when buying or refinancing their home. To some it may seem like common sense, but to others they don’t have a clue. It’s important to know however, the difference between the two if you want a steady mortgage payment for the life of the loan. Let me explain why. You see, after the housing market collapsed in 2008 a lot of people were panicking and losing their homes. They were wondering what was happening and why it happened. It took a while to come up with a few reasons, but it was clear that one thing was certain: subprime alternative and niche products were a major part of the problem. (See chart below). READ MORE >>

Do’s & Don’ts

Do You Know What To Do And Not Do When Buying A House?

A lot of people have a tendency to think that buying a house is as simple as buying a car —you go to a car dealership, find a car, get a loan and close the same day or in less than a week. That’s far from reality these days when buying a house. Lenders go through extreme measures just to make sure they are lending to the right person. They want to be certain borrowers qualify and can actually afford the monthly payment. READ MORE >>

700 Credit Score

One of the most important things prospect home buyers need to focus on is their credit score. All lenders make their decision based on how the credit score of a client is. Some lenders may have easier guidelines than others, but most lenders requires a decent credit score. With that said, here are the guidelines to keeping your credit score healthy and in the 700 range: READ MORE >>

Top Agent Magazine

It’s a great honor to be recognized as a top agent in the Top Agent Magazine. This industry is very competitive and it comes with a lot of ups and downs, but through it all we were able to overcome these tough obstacles and prevail in the face of numerous adversities. These challenges have only made us stronger and more educated on how to approach each situation we’re faced with. Our knowledge and experience in this industry is a great resource to have on hands. We hope our clients will continue to value and use our services for all their mortgage needs by utilizing this resource as a road map for their next mortgage transaction. We’re still committed as a family in providing the best possible service available in the industry so our clients may fulfill their dreams of becoming a homeowner. Feel free to contact us whenever you’re in the market to buy or refinance your current home, we are here to help. READ MORE >>

Confused about mortgage rates?

A lot of shoppers out there are always looking to find the best possible deal available on the market, and that’s fine, you’re entitled to it. As mortgage professionals our goal should be to give YOU the best rates available in the industry at all times. However, unless the interest rate is locked nothing is guaranteed. Furthermore, if the rate gets locked and the loan is not closed before the lock expires then there could be additional adjustments to the rate or additional out of pocket cost for the rate you want. Not to mention other unforeseen events that could occur before closing, which may require a rate increase. I know this can be a bit technical and confusing so let’s go over a scenario to help illustrate. There are other factors that could be worse than mortgage rates, and as a prospect buyer you shouldn’t let a small rate hike stand in the way of you buying your dream home, because after all, isn’t that the goal? READ MORE >>

Pride of Ownership

It’s clear that owning a house is much better than renting, but why you may ask? Well, it’s simple: You are paying down a mortgage (amortization) and building equity! When you sell your home, you will get all your initial down payment back plus the equity your house accumulated over the years, whatever amount that may be after all closing cost are paid. In addition, there are tax benefits and other perks that comes with owning a home. Renting on the other hand, will give you back your initial deposit and only if the house wasn’t damaged. After 5 years of renting you may end up moving with nothing to show for it. READ MORE >>