Articles Published in: 2023

December 7, 2023

The 2024 Housing Market

Real estate agencies and finance blogs get into the prediction business at the end of each year, with many publishing articles comparing their expectations for the new year with what happened in the current year. 2024 is no different. One such company, Redfin, predicts that the new year could be a great time to reconsider buying a home as the housing market enters into recovery mode. The End Of The Seller’s Market? Redfin makes a prediction for 2024 many really want to hear. “Home prices will fall because supply will rise more than demand.” The lack of supply caused the seller’s market of 2022, and more housing inventory will begin leveling the playing field, so to speak, between buyers and sellers. In a seller’s market, as the name implies, the | more...

December 5, 2023

How Long It Takes To Be Approved For A Mortgage

By Joe Wallace

Getting approved for a home loan can take a few weeks or months, depending on the borrower and the circumstances surrounding the loan. Receiving the FHA loan funds may take between four weeks and 90 days from start to finish, and there are milestones along the way, such as the appraisal process, which must be passed before loan funds can be released. Here is what you need to know about the time it takes to be approved for a mortgage. A Process With Multiple Stages Your FHA loan has more than one milestone to pass before you reach closing day and accept your keys. There’s the pre-approval stage, the appraisal, any required compliance inspections (where applicable) and getting the loan itself approved. Did you know your lender may check your | more...

December 4, 2023

Home Loans and Your Credit Scores

By Joe Wallace

FHA mortgages (including purchase loans, One-Time Close construction loans, and FHA condo loans) have more forgiving credit score requirements for loan approval than some conventional mortgages, but you still need to work on your credit at least 12 months ahead of your home loan application for best results. But some aren’t sure what scores to aspire to. Many finance blogs have varying advice on what to do about your FICO scores if they aren’t in the good or excellent range. But what do the major credit reporting agencies like TransUnion or Equifax say about “good” FICO scores? How do the bureaus interpret the numbers? Experian’s Good FICO Scores Experian notes, “To increase your odds of approval and qualify for a lower-rate mortgage, you should aim to have a credit score | more...

December 1, 2023

Home Loans And Your Credit Scores

By Joe Wallace

What can borrowers expect from an American economy trying which is STILL in the process of recovering from the negative financial effects of COVID-19? Some experts are currently talking about the minor gains in mortgage rates and interest rates falling overall but are quick to point out that those with FICO scores below the lender’s typical approval range are experiencing more costly loans. Some house hunters may find it harder to qualify even as rates seem to be cooling somewhat. And certain types of home loans such as cash-out refinances aren’t even on the table for some borrowers until rates cool off even more. What does all this mean for a borrower who isn’t even ready to get pre-qualified yet? The future promises to be unpredictable, financially speaking. We are | more...

November 30, 2023

Avoiding Foreclosure in 2024

By Bruce Reichstein

Do you want to buy or build a home with an FHA loan? When planning and saving, consider what happens after closing day once you accept the keys, schedule the movers, and take possession of your new house. What’s the big issue to remember here? Future borrowers in the budgeting and planning stages must choose how much cash to pay at closing time. And so far out from that first mortgage payment it may feel tempting to save a bit on your out-of-pocket expenses and finance certain closing costs like the FHA loan upfront mortgage premium. There is an issue called “cost creep” that some borrowers may experience. Financing one closing cost might not hurt your bottom line too much. And from there some justify adding even more to the | more...

November 29, 2023

FHA Loan Limits For 2024

By Joe Wallace

In the last week of November 2023, new FHA loan limits were issued for 2024. Those new limits (see below) are for forward mortgages approved under the FHA Single Family Home Loan program. Higher FHA Loan Limits In 2024 FHA loan limits increase for a large number of applicants in 2024. HUD.gov says the limits will increase for most of the country, and a HUD press release says that FHA loan limits are increasing at least in part due to increases in property values in 2023. That’s according to Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon. The changes to FHA loan limits are meant to help buyers to find affordable homes, “at a time when a lack of affordability threatens to shut well qualified borrowers out of | more...

November 27, 2023

Home Loan Interest Rates Back Away From 8%

By Joe Wallace

In November 2023, mortgage loan rates came uncomfortably close to the 8% range. Since then rates seem to have backed away, with incremental improvement. Is this the time for some house hunters to make their move? The short-term gains mentioned above may benefit anyone ready to make a deal. But what about those who need more time? In such cases, you should not read too much into these rate adjustments until there’s a longer history of consistently lower rates. FHA Home Loan Mortgage Rate Trends Day to day or week to week, home loan rates can alternate between trends moving suddenly higher or lower, but over the long term, such moves won’t mean indicate much until there is a consistency in the rates over a longer period of time. For | more...

November 22, 2023

Planning A Mortgage: Credit Resources You Need

By Bruce Reichstein

Are you planning a home loan? Are you in the budgeting and saving stages of your home loan journey? If so, there are some necessary resources you should explore before you apply for an FHA mortgage. It’s important to give yourself enough time to plan and save for your home loan and that includes paying more attention to and working on your credit. Credit resources can be a huge help in this regard–don’t pass on the chance to improve your FICO scores, get your payment history into good shape, and prevent identity theft or other problems from stopping your mortgage loan in its tracks. The first resource you should consider is the offer made by the FHA and HUD to give free referrals to a HUD-approved housing counselor. You can | more...

November 21, 2023

Before You Apply For Your Home Loan

By Joe Wallace

First-time homebuyers are often encouraged to start planning and saving for an FHA loan at least 12 months ahead. And it’s good advice. Within those 12 months, you’ll want to concentrate on a few important areas. There are moves to make and moves to avoid in the 12 months before your home loan application. 12 months is just a baseline. Some prefer to take 18 months or longer to prepare for a mortgage application. Take as much time as you need for best results. Don’t Make Big Career Changes Too Close To Application Time For the purposes of this article, pay raises, promotions, or other upwardly mobile moves within the company you currently work for are not the issue. Switching to a freelance career, transitioning from full-time to contract work, or | more...

November 20, 2023

Home Loan Interest Rates In 2024: Higher or Lower?

By Joe Wallace

Financial pundits are noting that home loan interest rates are unlikely to fall as low as in July of 2020 when the rates moved below 3%. Is it smart to wait to buy a home until well into the new year? Should we expect more of the same higher rates in the new year as we saw last year? FHA Mortgage Rate Predictions For 2024 Business Insider repeats the Fannie Mae prediction for 2024 that rates may reside between 6.4% and 7.1% for 30-year fixed-rate conventional mortgages. FHA and VA mortgage rates are likely to be at or slightly below these numbers. The National Association of Realtors takes a less conservative approach, predicting rates could fall as low as 6.1% in 2024. These are predictions only, and various factors, including | more...