Low down payment usually means more odds. While homebuyers crave for them, sellers are not that sure, with lenders equally cautious. All of these reactions are common in the real estate industry. But today, more and more are accepting the idea of buying with lower cash up front. 

Low Down Payment – The Latest Norm 
Based on a recent study, many borrowers buy with little upfront cash. On average, it is only 6% down for the first time buyers and 14% upfront for the repeat buyers. 

Many buyers are making smaller down payments, and this idea is now widely accepted in the marketplace. As per tradition, VA financing doesn’t require money up front, while FHA loans are available with 3.5% down, and borrowers financing with conventional loans are supported by private mortgage insurance which require 5% down. 

Lower Risks for the Lenders
There is logic behind all of these programs together with the rise of loan options that require little down. This is because data revealed that there is very little risk on the part of lenders if borrowers choose to finance with lesser down payments. 
A recent research discovered that defaults for the loans with 3% to 5% down were just a bit higher compared with financing with 5% to 10% down. 

It is also interesting to note that once borrowers get high credit scores and purchased with 3% to 5% down, the default rate will be lower compared to the financing with upfront of 5% to 10%. 

How to Make Low Down Payment Offers More Acceptable
If you are trying to bid for a certain property that comes with low down payment, there is a high chance that you need something more in order to make your position much stronger. 

Before anything else, you have to be pre-approved by your chosen lender before you start looking for a possible house to buy. This is not just the usual pre-qualification but a real pre-approval. It means that you will be submitting your mortgage application, supply asset and income documentation, and authorized credit report. 

The pre-approval letters can differ. See to it that your lender offers one which indicates that you have were given approval for financing. This must state that you can close provided that the property will meet the guidelines of the lender. You might also want your lender to indicate that you have a determined ability to borrow. Custom letters are much better compared to obvious form letters that lack detail. 

Next, you or your broker might have to explain to the property seller that during the closing, the owner will be receiving a check. The amount in the check coming from you is going to be the same no matter how the property is being financed, and whatever the amount of the down is. 

Although there are sellers that are a bit cautious when they buy a purchase offer with lesser down, now more than ever, this is everything they see. Take note that many purchases, first timers in particular, are making lower down payments and are still successful in buying a house.

Posted by Randy Blakeslee

It is a fact that you can paint anything. However, you have to know if you can paint everything using the same brush or paint. If you want to update your brick walls, metal door, your drywall, and much more, you should do it in the right manner and using only the right tools. Give surfaces in and around your home a new life through selecting the right methods, brushes, and paint.

Wood
The techniques for painting wood are different depending on if you are painting bare or a painted wood. Before you consider painting, if you are working with bare wood, you should sand the surface using fine sandpaper until the surface is already smooth. If the wood is painted already, use non-residue cleaner. You may also get rid of the paint using a putty knife. Fill in some dings with wood putty. Sand the surface and wipe it down.
When painting, you should use a paint brush instead of foam brush. You can use stain-blocking primer first for the bare wood and finish this with oil-based or latex paint. If you want to use more than 1 coat, sand in between the coats. For the painted woods, you would want to make use of staind-blocking primer. After that, finish it with latex paint.

Metal
The key in painting metal surface successfully is to ready everything. Before the painting process, you must use wire brush to strip the surface. Your goal is to get rid of flaking and rust. Wipe the dust away with damp cloth. Use clean, new cloth to rub the surface down thoroughly to make a spotless surface. Sand using 220-grit sandpaper until it is smooth so you may get a long life out of the paint job. Rinse it or wipe it down using damp cloth. Then, let it dry.
During the process, the first thing you have to do is to apply exterior-grade primer that’s formulated for metal. It is good to do 2 primer coats for metal. When that has dried, apply exterior-grade paint that’s formulated for metal with sprayer or brush. You will likely have to do at least 2 coats.
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Fiberglass Exterior Doors
To do a good job, it takes a little heavy lifting. However, the results are worth it. Before you start painting, you have to get rid of the door and lay it on a saw horses. Get rid of the hardware and sand in a light manner with sandpaper. There’ll be dust and you may eliminate it with a rag dampened with acetone. Let your door dry and wash it using mild detergent. After that, let it dry.
Once you start the process of painting fiberglass exterior doors, you have to prime the surface using acrylic latex primer. Let it dry and use brush to apply a coat of an exterior-grade latex paint with some smooth strokes. Sand the surface lightly when it’s dried already and apply the second coat.

One of the biggest questions of home buyers who are looking for a loan is about the best time to lock their mortgage. Those who are panicky assume that they should do it as soon as possible, while others argue that it pays off to play the waiting game. Which is right, then?

A rate lock is a must due to the fluctuations on mortgage interest rates as a result of market forces, and even the tiniest fluctuations can cost you big time. Of course, there is no crystal ball that will tell you when to lock your mortgage rate. Good thing there are several ways to know if a rate lock suits you.

Rising interest Rates
When interest rates trend upward, you might want to lock sooner instead of later before rates skyrocket. Just make sure that you check the newest mortgage rates first before taking the plunge.

You Made an Offer and There’s a Contract
In general, it makes perfect sense to lock in the rate after you made an offer that has been accepted, and you are in contract to owning a house. It means that you can expect to close in a matter of weeks, and many lenders will offer to lock in the rate for free in duration of 30 days. This is the best window of time that can bring you to the finish line. Having said this, there are cases when you might want to lock in for a longer time. Here, you might request a lock that last 90 days, 120 days, or as much as 150 days. While there is a chance that you will pay for such privilege, it will surely be worth your money when you require an extra time.

You are on the Bridge of Qualifying or Not Qualifying for the Loan
If you are borrowing close to the limits of what your current financial profile allows, it is smart to lock in since it can keep rate fluctuations to an unwanted surprise once you close. Why? Usually, house payment must not go more than 28% of your gross monthly income. If you make $6,000 every month before taxes, it means house payment of not over $1,680. When higher interest rate pushes this payment more than the 28% threshold, your lender can balk at loaning cash to you, which can cause the entire deal to fall through.
With an early rate lock, it means there will be no hidden surprise along the way. After all, the last thing you would want are last minute surprises after you have exerted all your effort and time into buying a house.

Volatile Interest Rates
It is one thing if the interest rates are going down or up, but if they vacillate both ways in a wild manner, this is another reason for you to crave for a rate lock’s stability. Today’s rates tend to be very volatile as they make big moves up and down within short spans of time. This is why prudent borrowers choose to lock their rates at the earliest point in the process. 

Posted by Randy Blakeslee

Are you ready to rest easy in your beautiful master bedroom? If you find your master bedroom boring, there are master bedroom makeovers you can consider. Whether you want a colorful oasis or serene retreat, you will find lots of inspiration for your master bedroom. Consider these remodeling ideas to make a perfect space in no time:

Add A Beautiful Balcony
If your master bedroom faces the mountains or sea or any view that touches your soul, why not consider adding a beautiful balcony with floor-to-ceiling curtains and sliding glass doors, which fit your selected color scheme. If you are lucky enough to have your house facing in the right direction, hiring a remodeling contractor that can put a balcony you have always wanted so you can enjoy the view beyond from the comfort and privacy of your own bed will definitely benefit you in a lot of ways.

Redo Your Décor
Update your master bedroom’s color scheme with new patterns and colors and combined them with new bedding, blankets, bedspreads, and pillows. Surround your room with your favorite textures and colors so you can feel the benefits of your private and comfortable sanctuary while you sleep.

Add Your Own Master Bathroom
Master bathrooms may take some forms, so you have the freedom to experiment. You can consider putting sinks outside your bathroom proper that will provide you more room to wash or put your makeup on. You might also want to have both a bathtub and shower rather than having the need to choose one or other. You may also install a Jacuzzi. This will surely increase your home’s value. Aside from that, a Jacuzzi in your own master bedroom will provide you years of pleasure and relaxation. Imagine coming home to a good hot soak after a busy day at your work.

Put Some Walk-in Closets
If you want everything to be organized, why not put some walk-in closets. With this remodeling idea, you don’t have to press up your shoes against each other. You don’t even need to pile up some of your things somewhere just because you don’t have much space. You can consider hiring a remodeler, draw up plans, and visit your remodeler’s office.
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Create a Personalized Headboard
While your hired remodeler is busy doing bigger stuff, you may enjoy a simple carpentry project with your loved one or on your own. You may also make your design complex or simple. You may also keep the wood material bare or you may pad it for additional comfort. If you are searching for something sophisticated, finding a licensed carpenter who can help you is never a bad idea. Then, enjoy new personalized headboard whether you are reading a book or watching your favorite TV show.
There are other ways on how you can do master bedroom makeovers. Those ideas are just some from the numerous remodeling styles you can take for consideration. Play with your creativity or imagination and hire the best professionals to do the job for you.

We spend our lives trying to save money on the different purchases that we make. We either buy used books, secondhand clothing, and even pre-owned cars. So, how come can't we do the same with used mortgages?
 
The truth is that you can. However, in order to be able to do it, you need to find a home that already has an assumable FHA mortgage.
 
When you are about to buy a home, you're probably not even thinking about what you will do when it is time to sell it. The reality is that every step that you take to buy a new home have an impact on the moment of the sale. And this is particularly important if you're trying to get an FHA financing.
 
When you choose to have an FHA financing, you're making sure that, in the worst case scenario, you'll sell your house at a good price. However, in the best case scenario, you can not only sell it faster as you can make more money with the sale.
 
 How Do Assumable FHA Mortgages Work?
 
Assumable FHA mortgages are directly related to the current mortgage rates. Let's say that you're trying to sell your home and that the current market mortgage rate is decreasing. In this case, you won't have any special benefit for having an assumable FHA mortgage. However, if the current market mortgage rates are increasing, you can have a serious advantage. After all, someone who is looking to buy a home is always looking for the best deal, where he can pay less mortgage. And this is exactly what the buyer gets. And to make sure that he gets this huge benefit, you can even put your home for sale for a higher price.
 
Simply put, an assumable FHA mortgage will allow the buyer to assume the current mortgage conditions of the seller. This includes the current principal balance, the rate, the repayment period, and all the other terms of the mortgage contract of the seller. This process is not only quicker, as it is easier and simpler than applying for a new mortgage.
 
 How Will The Buyer Assume The FHA Mortgage Of The Seller?
 
While before December 1, 1986, all FHA mortgages could be assumed without any qualifications or requirements, this is no longer the case.
 
In order to transfer the assumable FHA mortgage from the seller to the buyer, the lender needs to approve. In case he doesn't, there can't be any assuming. In case the lender agrees, he will need to fill out some specific forms. The first one, to release you from your loan, and the second one should be seen as a formal release of liability.
 
As soon as the lender approves the assuming buyer, all parties should be free from any liability. ​

Posted by Randy Blakeslee