Cedar City Real Estate Podcast Sam Dodd

If you have a student loan or you are a cosigner on one, I have some good news for you. Selling your home? Get a free home valuation Buying a home? Search all homes for sale on the MLS Fannie Mae, the nation's largest underwriter of mortgages, recently introduced three new rules that will affect those with student debt. These new rules can make it easier to get a mortgage, and they can make it easier to pay off your (or your kids’) student loans. The first change is for those on income-based repayment plans, where having a high debt-to-income ratio is the No. 1 reason for not being approved for a mortgage. Fannie Mae previously used a very conservative 1% of the total loan instead of the actual monthly payment. This can drastically lower your debt-to-income ratio and give you a much better chance of qualifying for a mortgage. Some folks are lucky enough to have their student debt paid by their parents, or even by their employer. The thing is, Fannie Mae didn't take this into account when calculating the debt-to-income ratio. That's the second new change. If you can qualify for a mortgage right now, you definitely should. If your employer or your parents have been paying off your student debt and you can show evidence of this for the past 12 months, then this debt won’t be counted in your debt-to-income ratio. This makes it more likely you will qualify for a mortgage. If you can qualify for a mortgage right now, you definitely should. Rates are still at a historic low, and lots of great houses have recently come on the (area) market. Fannie Mae also makes it possible to refinance your mortgage for more than the value of your home. Normally, there is a 0.25% fee that applies to any cash you take out in this way. The third big change is that Fannie Mae will now waive that fee when you use this cash to pay off a student loan. This applies whether the loan is yours, or you're a cosigner. If the mortgage rate is significantly lower than the student loan rate, it can make sense to refinance in this way; and, the new rule makes it cheaper to do so. If you need help understanding these new guidelines to see whether they’re right for you, or you have questions about putting them into practice, give me a call or send me an email. I’ll be glad to help.

Buying your first home can be an incredibly exciting time. However, it requires a huge commitment and a sizable investment. Selling your home? Get a free home valuation Buying a home? Search all homes for sale on the MLS I want to share my three top tips to help first-time homebuyers protect themselves during this crucial period: 1. Know what you can afford Your mortgage is only a part of what you will need to pay when you buy a home. Homeownership comes with plenty of other expenses, including closing costs, taxes, property insurance, maintenance costs, and homeowner association fees. Once you have a clear idea of how much all of these items will cost, you can compare it to your current monthly expenses. Then you can figure out the kind of home you can honestly afford without getting carried away and without getting bogged down in debt. 2. Choose your lender wisely Choosing a lender is not something you should base only on the lowest rate. A competent and trustworthy lender will offer you advice on how to improve your credit and also help you take advantage of special homebuyer programs that might benefit you. But how do you find the right lender specifically for you? It's often best to get recommendations from friends who have already worked with a lender or from a real estate agent you trust. An inspection will cost about $300, but it can save you thousands. 3. Don't overlook the details There are many details that go into buying a home, and missing any of them can be a costly mistake. I always advise buyers to get a professional inspection done on their home, separate from the appraisal. An inspection will set you back about $300, but it can save you thousands of dollars down the line, and it can even prevent you from making a decision to buy a home that you would later regret. A second example is understanding the fine print in the various contracts you will be signing. If there's anything that isn't clear to you, talk to your real estate agent and have it spelled out. The process of buying a home can be intimidating, and that's why professional real estate agents are there to help. These three quick tips are only the start of the things you need to watch out for when buying your first home. If you need more advice or you are ready to start looking for a home, give me a call or send me an email. I love working with first-time homebuyers, and I can help you get your perfect new home with minimum hassle.

What's the biggest obstacle to homeownership? According to a recent survey, "saving enough for a down payment" comes at the top of the list. Selling your home? Get a free home valuation Buying a home? Search all homes for sale on the MLS Down payments. A whopping 55% of prospective homebuyers cited this as their main stumbling block. And with the continuing growth of home prices, things aren't getting any easier. In fact, homeownership rates reached a 20-year low last November. It wasn't always like this. A decade ago, many lenders were offering easy, no-money-down mortgages. However, after the financial crisis, mortgage standards have become more restrictive. A typical mortgage now requires a 20% down payment. Here's the good news. If you have decent credit and a steady income, you might be qualified for a number of specialized programs that require no or very little down payment. Here are a few of the top options. First, there's the USDA loan, which is valid for homes in certain regions, such as rural and suburban areas. 55% cited the lack of a down payment as their main stumbling block. With zero money down and lenient credit requirements, the USDA loan can be a great choice for many homeowners. Second, there’s the VA loan, which you can apply for if you or your spouse served in a branch of the military. It's possibly the most generous zero-money-down mortgage because of low interest rates and low closing costs. Third, there's the FHA loan. It does require a 3.5% down payment — still drastically more achievable than the 20% required for a conventional mortgage. Finally, there are a number credit unions and first-time homebuyer programs that might apply to your particular situation. There’s one important thing you should know.  If you get one of these no-money-down mortgages, chances are good you will be required to pay private mortgage insurance, which can drive up your monthly payments. Fortunately, private mortgage insurance will disappear after your mortgage balance is under 80%. Also, the money you do pay will be tax deductible in most cases. In short, there are lots of options to make owning a home a reality for you, even if you haven't saved up tens of thousands of dollars. If you need more advice on getting a no-money-down loan, give me a call. I can put you in touch with some experienced Southern Utah area lenders who can answer your questions and help get you started.

Bryce Bishop from Citywide Home Loans is here to answer a common question I hear from buyers: “How does my credit score impact my ability to get a mortgage?” Selling your home? Get a free home valuation Buying a home? Search all homes for sale on the MLS Today, Bryce Bishop from Citywide Home Loans is here to discuss how credit scores impact your home buying ability. When you get ready to buy a home, Bryce will gather some financial and personal information. He will also pull your credit score from three different bureaus and look at the middle score. Credit scores can range anywhere from 400 to 800. If you have a score of 740 or higher, you are good to go. If your score is between 620 and 740, then your rates, financing, and down payment may all vary. It is important to have a good credit score but there are some great government loans out there for people with lower scores. These programs offer excellent interest rates and they are pretty liberal, allowing people with low scores to get a home.  “ There are great loan products available for people with lower credit scores. ”   Some of those programs include USDA and FHA loans. There is also the Utah Housing loan, which offers 100% financing to home buyers. There are also conform and conventional loans that offer 5% to 20% down payments. So, even if your credit score is a little low, there are plenty of loan products out there relative to your credit score. If you have any other questions for Bryce, you can give him a call at 435-590-3613. As always, if you have any real estate questions, please don’t hesitate to reach out to me. We would be happy to help you!

Today we're talking with a mortgage expert to discuss the most important factors that lenders look at when determining whether you qualify for a mortgage.  Selling your home? Get a free home valuation Buying a home? Search all homes for sale on the MLS Today I wanted to talk about qualifying for a mortgage, so I've brought in Bryce Bishop of Citywide Home Loans to help me explain. According to Bryce, there are three main parts when it comes to qualifying for a mortgage. Because of the downturn in the market from a few years ago, credit is the number one factor that lenders look at. It's imperative that you get with a mortgage professional who will pull your credit and have it analyzed to make sure you're credit-worthy for a mortgage. If you're not, they can help you put yourself in a position to repair your credit and qualify for a loan down the road. “ Lenders will consider three main factors to qualify for a mortgage. ”   Another key thing a lender will look at is your debt-to-income ratio. They will consider your income to make sure that you're not borrowing too much to handle. This is an easy ratio to figure out that nearly any mortgage professional can help you with, Bryce says. Additionally, they will look for a solid two-year work history and rental/mortgage history. They want to make sure you won't have 'payment shock' by going from a small payment to a much bigger one. If you have questions for Bryce or you're interested in seeking a mortgage, you can call him at 435-590-3613. If you have any real estate-related questions regarding the Southern Utah market, feel free to give me a call for send me an email. I'd be happy to help you!

Before you decide to buy a home, you need to determine a few other things. Your motivation, your location, and the market each play an integral part. Before making the decision to buy a home, there are a few questions you should be asking yourself to determine if it’s the right step: 1. Why? Why are you thinking about buying a house? Get outside of the financial and think about your motivations and what buying a home means to you. When I was renting, I hated the fact that my landlord could tell me whether or not I could paint or have a pet. Saving money over time is a common motivation these days with rising rents. “ Saving money over time is a common motivation these days. ”   2. Where? Where do you want to move? Where are home values heading? According to CoreLogic, home prices are predicted to go up by over 5% in the next year. It really is a great time to buy. 3. What’s happening with interest rates? If you talk to Fannie Mae, Freddie Mac, or any other organization that tracks these rates, they'll say that they’re bound to go up eventually. When they do go up, it makes homes more expensive. Right now, though, it is cheaper to buy a home than to rent one. If you have any questions for me, please give me a call or send me an email. I would love to hear from you!