First Rate Financial Group, Author at Mike Pfefferman

20

Jun

Home Mortgage Tips

Legal Documents You Need When Buying a House

Legal Documents You Need When Buying a House Buying a house can be an exciting but complex process that involves many legal requirements.

You will need to provide several documents to your lender and the seller. The specific documents required may vary depending on the lender and the type of loan you are applying for, but here are some of the most common documents you may need:

Proof of Income: This may include pay stubs, W-2 forms, and tax returns from the past two years.

Bank Statements: You will need to provide bank statements for the past two to three months to show your savings and checking account balances.

Credit Report: Your lender will obtain your credit report to assess your creditworthiness and determine your interest rate.

Employment Verification: Your lender may contact your employer to verify your employment and income.

Loan Application: This is the first step in the mortgage process, and it will require you to provide detailed information about your income, assets, and debts.

Pre-approval Letter: Once you have submitted your loan application, you may receive a pre-approval letter from your lender, which will state the amount of money you are qualified to borrow.

Loan Estimate: This document provides an estimate of the closing costs associated with your mortgage, as well as the interest rate, monthly payment, and other details about the loan.

Closing Disclosure: This document is provided to you three days before closing and includes a detailed breakdown of all the costs associated with your mortgage, including the interest rate, monthly payment, and closing costs.

Identification: You will need to provide a government-issued ID, such as a driver’s license or passport.

Purchase Agreement: This is a legally binding contract between you and the seller that outlines the terms of the sale, including the purchase price, closing date, and contingencies.

Mortgage Documents: If you are financing your home purchase, you will need to sign several mortgage documents, including a promissory note and a mortgage.

Deed: The deed is a legal document that transfers ownership of the property from the seller to the buyer.

Title Report: A title report is a document that shows the history of ownership of the property and any liens or other encumbrances that may affect the title.

Homeowner’s Insurance Policy: You will need to purchase a homeowner’s insurance policy to protect your investment in the property.

It is important to compile and review these documents carefully before submitting them to your lender. It is also wise to seek the advice of a real estate attorney or other qualified professional if you have any questions or concerns.

19

Jun

By First Rate Financial Group

Financial Reports

What’s Ahead For Mortgage Rates This Week – June 19, 2023

What's Ahead For Mortgage Rates This Week - June 19, 2023 Last week’s scheduled economic reports included readings on inflation, the Fed’s Federal Open Market Committee meeting, and Fed Chair Jerome Powell’s press conference. Weekly readings on mortgage rates and jobless claims were also published.

Fed Leaves Key Rate Range Unchanged

Federal Reserve policymakers left the Fed’s current interest rate range unchanged at 5.00 to 5.25 percent; the Fed decision was announced after a scheduled meeting of the Fed’s Open Market Committee ended on Wednesday. Factors contributing to the FOMC policymakers’ decision included the cumulative effects of tightening monetary policy, lags between changing monetary policy and any impact on the economy, along with inflation and global and domestic economic developments.

The Committee reasserted its commitment to returning the inflation rate to its two-percent goal. Factors considered by FOMC Committee members include readings on labor markets, inflationary pressures and expectations, along with domestic and global economic and financial developments.

Inflation Pace Eases in May

The federal government reported slower inflation during May. The Consumer Price Index posted month-to-month inflationary growth of 0.10 percent from April to May; this reading matched expectations and was lower than April’s reading of 0.40 percent month-to-month. Core inflation, which excludes volatile food and fuel sectors, matched expectations and was unchanged from April’s month-to-month reading of 0.40 percent growth. Core inflation rose by 5.30 percent year-over-year and matched expectations but was lower than April’s year-over-year core inflation reading of 5.50 percent growth.

Mortgage Rates Fall; Weekly Jobless Claims Unchanged

Freddie Mac reported lower average mortgage rates as rates for 30-year fixed-rate mortgages fell by two basis points to 6.69 percent. Rates for 15-year fixed-rate mortgages rose by three basis points to an average rate of 6.10 percent. Jobless claims held steady with 262,000 new claims filed, which exceeded the expected reading of 245,000 initial claims and matched the previous week’s reading.

The University of Michigan’s Consumer sentiment survey improved in June with an index reading of 63.9, which surpassed the expected reading of 60.8 and May’s index reading of 59.2. Readings over 50 indicate that most consumers have a positive outlook on current economic conditions.

What’s Ahead

This week’s scheduled economic reporting includes readings on home builder confidence, housing starts, and sales of previously-owned homes. Weekly readings on mortgage rates and jobless claims will also be released.

16

Jun

By First Rate Financial Group

Mortgage

How Do You Make A Household Budget

How Do You Make A Household Budget Creating a household budget can be a helpful way to track your spending and ensure you are meeting your financial goals. You will need to examine your fixed expenses that are the same each month, such as rent or car payments and your variable expenses that change each month, such as groceries or entertainment. Dealing with debt can be challenging but incorporating it into your budgeting strategy can help you regain control of your finances. Here are some steps you can take to effectively manage your debt while budgeting:

Assess your debt: Begin by gathering all your debt information, including outstanding balances, interest rates, and minimum monthly payments. List your debts in order of priority, such as high-interest debts or those with approaching due dates.

Create a budget: Develop a comprehensive budget that covers all your income and expenses. Categorize your expenses into essential (e.g., housing, utilities, groceries) and non-essential (e.g., entertainment, dining out) categories. Make sure to allocate funds for debt repayment.

Prioritize debt payments: Allocate a portion of your budget specifically for debt repayment. While making minimum payments on all debts, focus on paying extra towards high-interest debts to reduce their impact over time. This strategy is known as the debt avalanche method. Alternatively, you can prioritize the debt with the lowest balance first (debt snowball method) for psychological motivation.

Reduce discretionary spending: Look for areas where you can cut back on non-essential expenses. This might involve reducing eating out, entertainment costs, or finding more affordable alternatives for certain services. Direct the savings towards debt repayment.

Negotiate with creditors: If you’re struggling to meet your debt obligations, contact your creditors to discuss possible alternatives. They may be willing to offer reduced interest rates, extended repayment terms, or debt consolidation options. Exploring these options can help make your debt more manageable.

Consider debt consolidation or refinancing: If you have multiple debts with high-interest rates, consolidating them into a single loan or refinancing them with a lower interest rate may be beneficial. This approach simplifies your payments and can potentially save money on interest charges.

Build an emergency fund: While dealing with debt, it’s crucial to simultaneously build an emergency fund. Having some savings set aside can prevent you from relying on credit cards or loans in case of unexpected expenses. Start with small, regular contributions until you reach your desired emergency fund amount.

Remember, managing debt takes time and discipline. Stay committed to your budgeting efforts and regularly review your progress. Over time, as you reduce your debt, you’ll regain financial stability and move closer to achieving your financial goals. It may take some time to find the right balance, but creating a household budget can be an effective way to manage your finances and achieve your financial goals.