The Mortgage Corner with GreenState Credit Union: The Process of Buying & Selling a Home at the Same Time
Buying or selling a home can be stressful. It's not just about finding the perfect property to move into or finding the right buyer for your current home; it's about timing it right, qualifying for loans, and managing finances. And when these two significant life events happen simultaneously, the stress can be overwhelming. But don't fret. With the right preparation and guidance, you can navigate through this process smoothly. Here are a few tips to think about as you consider your next home purchase.
Getting Your Finances in Order
The first step in this journey is to get your finances in order. This includes understanding your current
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The Mortgage Corner with GreenState Credit Union: October is Financial Planning Month!
Did you know that October is Financial Planning Month? If you haven’t taken stock of your finances lately — specifically your household budget — it’s the perfect time to do so. A good household budget can help you better manage spending and save for your financial goals, like buying a home, paying off debts, or even just taking a much-needed vacation.
Are you ready to update your household budget this month? Take these steps:
Know your after-tax income. Before you can create a smart budget, you need to know how much money you’re bringing in each month after taxes. This will, of course, include your salary, but any extra income should be considered as
The 3 Biggest Non-Financial Benefits of Owning a Home
Source: KCM
Buying and owning your own home can have a big impact on your life. While there are financial reasons to become a homeowner, it’s essential to think about the non-financial benefits that make a home more than just a place to live.
Here are three of the top non-financial reasons to buy a home.
According to Fannie Mae, 94% of survey respondents say “Having Control Over What You Do with Your Living Space” is a top reason to own.
Your home is truly your own space. If you own a home, unless there are specific homeowner association requirements, you can decorate and change it the way you like. That means you can make small changes or even do big renovations to make your home
When you live in a home for such a significant amount of time, it’s natural for you to experience changes in your life while you’re in that house. As those life changes and milestones happen, your needs may change. And if your current home no longer meets them, you may have better options waiting for you.
Consider the Equity You’ve Gained
And, if you’ve been in your home for more than a few years, you’ve likely built-up substantial equity that can fuel your next move. That’s because you gain equity as you pay down your loan and as home prices appreciate. And, the longer you’ve been in your home, the more you may have gained.
Data from the Federal Housing Finance Agency (FHFA)
The Mortgage Corner With GreenState Credit Union: What is an Escrow Analysis?
To understand what an escrow analysis is, we must first understand what an escrow account is.
An escrow account is an account established at the time of mortgage closing to hold the property taxes and insurance premiums. When an escrow account is established the monthly payment due from the borrower will include the actual loan principal and interest, plus the monthly equivalent of the property taxes and insurance premium for the home. When the taxes and insurance items are due, they are paid by the mortgage lender from the homeowners’ escrow account.
Now that we have that understanding, let’s walk through what an escrow account analysis is.
It is that time of year when everyone in the Cedar Valley will be receiving their tax bill in the mail. Did you know that your tax "bill" is a bill that doesn't necessarily need to be paid? More times than not your property taxes are tied into your monthly mortgage payment, known as escrow. Before sending in any payment make sure to check with your lender to see if you have this tied into your mortgage payment.
Want to save a little money on your property taxes? Then you need to apply for a Homestead Tax Credit! A Homestead Tax Credit could grant you up to $200 a year that can be put toward property taxes. This can be done online or by going to your county assessor's office. This is only applicable
If you’re thinking about buying a home, you should know your credit score’s a critical piece of the puzzle when it comes to qualifying for a home loan. Lenders review your credit to assess your ability to make payments on time, to pay back debts, and more. It’s also a factor that helps determine your mortgage rate. An article from Bankrate explains:
“Your credit score is one of the most important factors lenders consider when you apply for a mortgage. Not just to qualify for the loan itself, but for the conditions: Typically, the higher your score, the lower the interest rates and better terms you’ll qualify for.”
Today’s higher mortgage rates, inflationary pressures, and concerns about a potential recession have some people questioning: should I still buy a home this year? While it’s true this year has unique challenges for homebuyers, it’s important to think about the long-term benefits of homeownership when making your decision.
Consider this: if you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. Why is that? The reason is tied to how home values grow with time and how, by extension, that grows your own wealth. That may be why, in a recent Fannie Mae survey, 70% of respondents say they believe
The Mortgage Corner with Greenstate Credit Union - 5 Factors that Determine Your Credit Score
When it comes to buying a home, your mortgage is an integral step in the process. Your credit score has a direct impact on the interest rate you can obtain, which then determines your monthly payment. Are you curious what impacts your credit score?
There are 5 categories that make up your score, with some weighted more heavily than others.
1. Payment History: Your account payment information, including delinquencies and public records
2. Credit Usage: How much you own on your accounts
3. Credit Age: How long your credit accounts have been established
4. Account Mix: What types of credit accounts do you have, such as revolving and