loans

Kids Helping Mom and Dad With the Mortgage

Julia

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After years of getting help from mom and dad, some adult children are returning the favor and buying their parents a house.

Not all lenders will allow adult children to co-sign for their parents on jumbo loans-those that exceed $417,000 in most areas and $625,500 in some high-priced places, says John Walsh, CEO of Milford, Conn.-based Total Mortgage. However, enough lenders allow it that most children who want to help home-buying parents, whether working or retired, should be able to co-borrow, Mr. Walsh says.

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Basic Steps for Buying a Home

Julia

home-for-sale-sign

Note: Your agent and lender will help you through all these steps!

Step 1: Start Searching Early—Homes frequently appear very different in person than they do on line.

Step 2:  Find the right real estate agent and lender: We can help at LDSAgents.com

Step 3: Determine how much you can afford by getting “Prequalified” for a home loan. See our video on “Prequalification”

Step 4: Shop for your home with your agent – This is the fun part!

Step 5: Get an Inspection – Your agent will help select a local inspector.

Step 6: Work with your lender to select the best loan for you. See our video on “Conventional, FHA, and VA loans”

Step 7: Have the Home Appraised—Your lender will normally take care of this (the appraised value must exceed the loan amount by certain criteria).

Step 8: Wait for funding to be approved by the “underwriter”.

Step 9: Meet with the title company or with the closing agent (depending on your state) to close the loan and the purchase. We recommend that you watch our video on “Closing Costs”

 

 

What is a Short Sale?

Julia

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A Short Sale may be an alternative when you can’t pay your mortgage.

It is called a short sale because you do put your home up for sale, but the mortgage bank agrees to accept a buyer that will not be paying the full loan amount, an amount “short” of what is owed on the loan. The bank is “shorted” After the sale the Seller is usually able to walk away from the home without owing the bank the difference.

There are occasions where the bank will seek a deficiency judgment against the former owner, so be sure to have this discussion with your agent and work to include language in your closing that protects you against deficiency judgments.

Why would you opt for a “Short Sale” versus a “Foreclosure”?
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Drawbacks of a Reverse Mortgage

Julia

Watch out for these drawbacks of using a reverse mortgage to fund retirement.

The truth about reverse mortgages are far from ideal. In fact, there are a few reasons to avoid getting a reverse mortgage as part of your retirement plan. Most of these reasons revolve around the fact that this type of income stream is actually a loan against your home’s equity that has to be paid back.

Here are five reasons to think twice about getting a reverse mortgage: Read more →

How to Check Your Credit

Julia

CreditScoreReportHistoryMake sure everything lines up!

 Your credit score impacts a lot in your life, from buying a car to buying a house and even, sometimes, to getting a job. (Believe it or not, some employers check your credit report.) You owe it to yourself to know exactly what your credit score is, and how you can go about making it better. Here’s a quick rundown of the big things you need to know. Read more →

Student Debt Can Torpedo Your Chances for a Home Loan

Julia

Student debt can adversely affect getting your first loan.

At LDSAgents.com we frequently encounter young clients who cannot qualify for a home loan due to high student debt.

“As students graduate with more debt than ever, those with student loans are getting worse credit scores and taking out fewer mortgages. At the same time home ownership rates among younger Americans sink to historic lows. College students who took out loans will graduate this year with an average of $33,000 in student debt, Read more →