There are many factors that play a role in determining whether you're able to qualify for a mortgage. Credit standards are one of them. But unlike your income or debts, they aren't as easy to keep up with. They are important, though, so here's what you need to know. Credit standards refer to the requirements lenders use to determine whether or not you qualify for a loan. When credit standards are tight – as they were following the financial crisis and housing crash – potential buyers have to reach a higher … [Read more...]

Affordability is the top concern for potential home buyers entering the summer season. That's not a surprise. With prices and mortgage rates up, it's natural that Americans who are hoping to buy might be leery when seeing news of rising housing costs. But, though affordability conditions are challenging in some markets, buyers may have some misconceptions that are adding unnecessary stress and anxiety. For example, according to the results of one recent survey, potential home buyers see saving for a down payment as … [Read more...]

There are a lot of things you need to set money aside for when you're getting ready to buy a house. You have to have money for a down payment, closing costs, and moving expenses but you also need to consider how much you'll need for any future home maintenance. Buying a home means you're on the hook for any repairs and renovations you need along the way – and you will inevitably run into issues at some point, whether it's a clogged toilet or a leaky faucet. When it happens, you can pay someone else to fix it or try … [Read more...]

Depending on your plans, the fact that home prices have been increasing lately could be good or bad. After all, current homeowners who are looking to sell a house will feel much differently about higher prices than a first-time buyer who has to save for a down payment. This reality is reflected in the most recent Home Purchase Sentiment Index from Fannie Mae. The index – which measures Americans' perception of the housing market and economy – reached a new all-time high in May, backed by spiking confidence among … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell last week across all loan categories, bringing rates to their lowest level in six weeks. Rates were down for 30-year fixed-rate loans with conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate mortgages. The drop brings some relief to spring home buyers, who have been contending with higher prices and rising rates since the start of the season. Once again this … [Read more...]

First-time home buyers are an important demographic when it comes to the health of the housing market. Because they've historically accounted for about 40 percent of home sales, they garner a lot of attention from experts, economists, and analysts hoping to gauge how the market is doing and where it's headed. In recent years, first-time buyers have been less active than usual. The financial crash and recession led to a long period where Americans of typical home-buying age did not have the economic stability or job … [Read more...]

There are a lot of neighborhood attributes that can affect the value of a particular house. For example, a house with a view of the water may fetch a higher price than a similar house without the view. But among neighborhood amenities, owning a home near quality schools is among the most commonly cited as being good for your home's value. Well, a recent study by Collateral Analytics, looked at this question in an attempt to – not only determine whether or not it's true that homes near quality schools sell for … [Read more...]

Between the time an offer is accepted and the deal is closed, a home's sale is typically referred to as pending. That's because, there's a chance, during this period, that the sale won't go through, as there are a number of hurdles yet to clear. The buyer's loan and financing have to be finalized and steps like the home inspection and appraisal can also alter the terms of the deal or end it altogether. In short, buying a home is a major transaction and there's usually a few weeks between the contract signing and … [Read more...]

When you buy a house, you're also buying the surrounding neighborhood. And, depending on your lifestyle and wishlist, the neighborhood may be even more important to you than the actual home you're buying. After all, most of your life happens outside your home. So your proximity to schools, shopping, healthcare, recreation, and nature will have a large effect on how much you enjoy living in a particular house. In short, finding your dream house in the wrong neighborhood could make it a nightmare. Unconvinced? Well, … [Read more...]

Home buyers looking to buy a home this spring have their eye on two things: home prices and mortgage rates. Lately, both have been rising but the latest numbers from the Mortgage Bankers Association's Weekly Applications Survey offers some potential relief. That's because the survey – which has been conducted every week since 1990 and covers 75 percent of all retail residential mortgage applications – found average mortgage rates were down last week across all loan categories, including 30-year fixed-rate mortgages … [Read more...]