FHFA Index Shows Decrease in Interest Rates for Home Loans in Denver

The Federal Housing Finance Agency's index showed a decrease in average contract interest rates for home loans in Denver and other areas all over the country for November. Compared to the national data for October, the November rate marked a 0.10% decrease on the composite of all mortgage loans.

As posted in an official news release by the agency on their website:

According to the Federal Housing Finance Agency (FHFA), the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 4.21 percent for loans closed in late November. The index is calculated using FHFA’s Monthly Interest Rate Survey. The contract rate on the composite of all mortgage loans was 4.22 percent, down 10 basis points from 4.32 in October.

There are several factors that affect interest rates, including demand from consumers, the Federal Reserve policy, and inflation.

http://www.thehomeloanarranger.com/fhfa-index-shows-decrease-interest-rates-home-loans-denver/

Read More

Home Loan Homework: Before You Apply

With the fate of a future dwelling on the line, making sure that you come out the winner when you apply for a home loan is crucial. In order to ensure your success at securing a home loan, use the following tips to improve your chances before you even apply:

1. Obtain a current copy of your credit report. When applying for a home loan, any decisions regarding your terms will be based on the available data. Obtaining a current copy of your credit report gives you a chance to correct information that might leave a negative impression with the lender.
2. Pay back any outstanding debts. Armed with your credit report, you should be able to find any outstanding debts that weigh down your credit score. Additionally, if you find any errors in your credit report, clear them up with the credit reporting agency to further raise your score.
3. Avoid borrowing any money or buying big-ticket items at least several months in advance of applying for your home loan. Treat the home loan as first priority while you haven’t yet closed the deal for it.
4. Make sure that long-term employment is included in your credit file. This should show the lender that you’re financially stable and will be able to pay your dues on time.

Read More

Finding The Right Mortgage Lender

Purchasing a home with cash is almost impossible for many people. However, with home loans offered by mortgage lenders, buying a home becomes financially easier. All it takes is finding a reliable mortgage lender to get the chance to secure your dream home, with an affordable upfront payment and reasonable monthly dues. The question is how do you find such a lender?

Mortgage lenders are key-players in the housing industry, and are surely easy to find in a huge city like Denver. To identify a reliable one, experts recommend sitting down with at least three of these lenders and listening to what they have to say. Generally, a reliable mortgage lender will discuss how you can get the loan while improving your credit at the same time.

Like any other business transactions, a mortgage deal comes with documents that contain jargon. If the lenders are sincere in helping you get a good loan program that suits your need, they will present the terms and conditions in ways you can easily understand. Additionally, they will set expectations upfront and not lie about the sometimes difficult process you have to go through.

As the process and the technicalities involved in finding the right lender could be very tedious and time-consuming, the better alternative would be to work with a reputable mortgage broker. With their network and extensive knowledge of real estate conditions in Denver, reliable brokers can connect you with a lender with the right loan package for your situation.

Read More

Denver Home Loans: Avoid the Labyrinth with a Trusted Mortgage Broker

"If this is your first time to take out a home mortgage, you should look at requirements besides an excellent credit rating. To get pre-qualified for any of the available Denver home loans, you have to prepare your pre-qualifying letter and all supporting documents, and submit it to the lender. Your chance to get pre-approved depends greatly on how honest and relevant the content of your claim is. Mortgage companies like The Home Loan Arranger can help you get the mortgage package suited to your paying capacity and situation. Unlike a pure real estate broker that only refers a property and closes a deal, a home loan arranger can actually do all the complicated tasks required in the home buying process. You will have a greater chance of securing the best home loans in Denver with the aid of mortgage professionals."

http://www.thehomeloanarranger.com/denver-home-loans-avoid-labyrinth-trusted-mortgage-broker/

Read More

Adjustable Rate Mortgage vs. Fixed Rate Mortgage: What You Need to Know

Buying a home in Denver for the first time is certainly exciting. You can't help but imagine the very first day you'll come home exhausted from work and walk into the front door, knowing that all the hard work you've turned in all these years have finally paid off. Before you can turn that dream into reality, however, you will need to apply for a home loan first.

The problems is that when homebuyers start shopping around for home loans, they often end up confused on which type of loan to get. An adjustable rate mortgage offers the advantage of flexibility, and if the real estate market is good, chances are, the rate will be lower. Meanwhile, a fixed rate mortgage offers the benefit of stability— you have that feeling of reassurance that no matter what happens in the real estate market, there's always a way to pay off your loan because the rate remains unchanged.

With such contrasting advantages, it is up to homebuyers like you to assess which type of loan will work best for your situation. What works for your neighbor doesn't necessarily mean that it will work for you too. What can steer you in the right direction is to think long-term; try to see yourself having problems paying off the loan, not just within a year or so but ten years down the line. If you can, you may want to try a different plan.

Read More