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Don't Make These Financial Mistakes After Applying For A Mortgage!

by The Domis Team

When you submit your mortgage application for your new Whittier CA area home, you might think your financial work is over. You have a great credit score, your savings are in order, and you are confident that you will be approved. However, even if you are approved for your loan, there are still mistakes that you can make during this time that can affect your qualifications for the loan. Avoid these financial mistakes after submitting your application so that you can enjoy life in your new home!

 

Closing Credit Accounts. Although you might think that closing accounts so you have less lines of credit makes you less risky, but really it can negatively affect your score. This is because it changes your percentage of available credit in relation to credit used. In addition, lenders want to see your length of credit history so don't close accounts at this time.

Applying For New Credit. Every time you apply for new credit, a credit check is run and your FICO score goes down. Don't open a new credit card or start an automobile loan because it could affect your eligibility.

Being A Co-Signer. Similar to the previous mistake, this one will add an additional line of credit to you, regardless of whether you are the one actually making the payment or not. Avoid co-signing anything no matter how much you might want to help another person out.

Depositing Cash. It is important that lenders can trace the source of your money and cash makes this hard to do. Talk to your loan officer before making cash deposits so they can better help you with important documentation.

Changing Bank Accounts. Your current bank accounts are used to track your assets by the lender. Do not close any accounts, open new ones, or switch banks during the mortgage process.

Making Large Purchases. Large purchases, such as vacations, vehicles, and furniture, can increase your debt and change your qualifications. Even if you can afford the item upfront, it is best to hold off on large purchases until after closing on your new home.

Job or Income Changes. Your job and annual income are very important factors that lenders base decisions off of. Career changes or alterations to your salary can keep you from being approved for your mortgage.

 

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Follow These Financial Tips To Afford A New Whittier Home Today!

by The Domis Team

Looking to Buy your dream Whittier Area home but worried about your ability to afford it? Start making steps to improve your finances today! A new home is never out of reach! Here are some helpful tips to get you financially prepared to buy!



Once you have your have started to follow these tips to afford your dream home, The Domis Team is here to help you throughout the buying process. Give our team a call today or visit our website at http://www.whittierhomes.com/.

Outsmart These Common Home Buying Misconceptions!

by The Domis Team

You've decided to buy a new home. Congrats! Home buying is an exciting but daunting task. Whether you are a new or experienced home buyer, there are a lot of common misconceptions about the process that can cause you more stress and difficulties immediately and into the future. Let us help you outsmart these misconceptions and know all the facts before you set off on your journey towards your dream home!

 

Common Misconception: The Home Search is the First Step.

Truth: Although searching for homes on the internet might have jump-started your journey towards home buying, it should not be prioritized as your first step in the process. Stop searching for homes and FIRST focus on your finances. This involves making sure your credit is in good standing to receive pre-approval for your mortgage. By focusing on your financing before searching, you can accurately know what homes on the market fit within your budget and focus your search within your parameters. There are few things worse than having your heart set on a home only to discover that there is no way you can afford it.

 

Common Misconception: Bad Credit Disqualifies You from Buying a Home.

Truth: While having good credit is obviously to your benefit during the home buying process, you still have options even if your credit is not stellar. Home buyers with bad credit have financing options, such as FHA loans, that might be available for them. It is important to take the time to research your options.

 

Common Misconception: 30-Year Mortgages Save You Money.

Truth: It all comes down to math. Regardless of whether you choose a 15-year or 30-year mortgage, you are borrowing the same amount. However, you are multiplying the amount of time that you are paying back that amount by 2. This means more interest is accruing over this additional time and you will end up paying MORE. This is not to say that a 30-year mortgage is not your best option. Just ensure that you do plenty of research on all the loan options available to you to select what best fits your financial situation now and into the future.

 

Common Misconception: The Down Payment is your ONLY Upfront Cost.

Truth: Home buyers need to budget for several costs that can quickly add up during the process. Along with the down payment, home buyers should plan for a credit report, inspection, and insurance costs. The deal you settle on with the seller could require you to pay for the closing costs as well.

 

Common Misconception: Your Down Payment Should be 20%.

Truth: A 20% down payment can help make you competitive among other buyers and can help you avoid paying for Private Mortgage Insurance (PMI). However, not all lenders require that amount. You may be eligible for a down payment of 5% or 10% if you are willing to pay for PMI monthly. There are also FHA loans and other down payment assistance programs that might be available to you.

 

Common Misconception: A Home Inspection is NOT a Necessity.

Truth: You should never waive the home inspection, no matter how much you want the house. Some sellers will try to negotiate this into the agreement but it is not in your interest. There is too much risk of there being something wrong with the house. You could end up having to spend a fortune in your money and time by skipping this step. Ensure that you find any potential issues with the house before you purchase it.

 

Common Misconception: Focus on Your Immediate Needs.

Truth: You should always consider what you and your family need in a home right now and into the future. Although it is impossible to know what your future holds, you want to choose a home and neighborhood that fits your needs now and indefinitely. Whether or not you have or will have children, find a home near good schools. Research has shown that homes near excellent schools have a higher resale value.

 

Common Misconception: You Must Offer the Asking Price.

Truth: Although you might fear losing your home to competition by offering a lower price, you should always try to negotiate a deal that best fits your need. Sellers are obviously hoping to get top dollar for their home but they also want to sell it quickly and easily. By showing that you have good credit, are pre-approved for a loan, and/or have your down payment ready to go, sellers will likely be willing to negotiate with you since your finances are in order. Also, the results of the home inspection can also be used to help you negotiate a lower price.

 

Common Misconception: You Can Go It Alone.

Truth: While the internet makes the search for homes arguably easier and more convenient for individuals, you should always work with an Experienced Realtor during the home buying process. There is a wealth of knowledge that only realtors can offer! We understand the local market, have years of negotiation experience, and so much more. We can help alleviate the inevitable stress that comes along with the home buying process by being by your side and always keeping your best interests at the forefront.


Ready to BUY your dream home in the Whittier area? Work with the very best! Give The Domis Team a call today or visit our website at http://www.whittierhomes.com!   

Tips For Understanding Your Mortgage Rate!

by The Domis Team

Congrats! You've decided to purchase a new home! Understanding your mortgage rate is an important step in the home buying process! Mortgage rates might seem complicated but check out this helpful information and tips to help you navigate your way through the world of mortgages.

 

10 Factors that Affect your Mortgage Rate:

  • Economy

  • Lender pipeline

  • Home location

  • Home type

  • Home use

  • Loan-to-value

  • Loan features

  • Loan amount

  • Credit score

  • Points

​​

Your unique borrower profile determines the custom mortgage quote you receive from a lender. Most people are subject to risk-based pricing adjustments on their quote, unless you have great credit and a low loan-to-value ratio.

Want to take control over your rate? There are a few factors from the list above that you can control in order to affect your mortgage rate in a positive way.

  • Property type | Consider the relative cost of financing when choosing what home to buy.

  • Loan-to-value (LTV) | Put more money down on the home to cut your loan fees and lower your mortgage insurance rate.

  • Loan features | Save interest by choosing a loan with a shorter fixed rate term.

  • Loan amount | Avoid jumbo home loans that potentially increase your expenses.

  • Credit score | Work on raising your FICO before purchasing a home.

  • Points | Pay more upfront to lower your interest rate.

​​

Another important thing to note is that mortgage rates change constantly. Your rate could change overnight. Be sure to do your research ahead of time so you know when to accept the best offer.

 

Be sure to get custom quotes from several competing mortgage lenders. Take advantage of the current low mortgage rates today!

 

 

Check out our website at Website for additional home buyers tips and resources, including mortgage calculator and rate comparison!

 

Follow These Steps To Get A Mortgage In The New Year!

by The Domis Team

There are several important steps that you need to take in order to get a mortgage. Be completely prepared for this process by understanding everything that goes into obtaining a mortgage.

1. Pre-Approval

In order to help you stand apart from the competition when buying a home, it is important to be pre-approved before you make any offers. Pre-approval means that the lender has made a commitment to give you a home loan up to a particular amount. There is a significant amount of paperwork that is required for the pre-approval process. Get the following documents ready to provide the lender: Pay Stubs, Federal Tax Returns, W-2 Forms, Statement of Assets, Residential History, and Proof of Down Payment Funds.

2. Home Appraisal

Your lender will complete a home appraisal before issuing the loan. The home appraisal allows them to determine the value of the home. If the home is appraised at a price that is at or above what you offered the seller than you have passed this part of the process. If the home is appraised for less than your offer, you have an issue because your lender will not give you more money than the house is worth. If this happens, you have a couple of options. You can negotiate with the seller, appeal the appraisal, ask for a second appraisal, or walk away from the deal.

3. Credit Score Maintenance

It is very important that your credit score (regardless of what it is) remains stable while you are under contract for a home. A final credit check will be completed before the loan is issued at closing. Any changes in your score could greatly jeopardize you acquiring your loan. Avoid this by not opening new credit accounts, closing old ones, or missing payments while you are under contract.

4. CD Review

You will receive a Closing Disclosure (CD) from your lender just before you close. The CD outlines the fees you will pay during settlement. CDs can contain errors so it is imperative that buyers examine the document thoroughly before signing. Sit down with your realtor to review the CD with the loan estimate (which you received when you first applied for your loan) to check the following items: Name, Loan Term, Loan Type, Interest Rate, Cash to Close, Loan Amount, Total Monthly Payment, and Estimated Taxes and Insurance.

5. Underwriting

Your mortgage will go through the underwriting process before the loan is finally issued to you. During this process, an underwriter will verify all of your information to ensure that you have been truthful in your application. As long as you have remained stable in your job status, credit score, and debts, you will get through this part of the process with ease.

For other great Buying tips, check out our Website and follow us Facebook!

The Truth About Buying a Home: You DON'T Need 20% Down

by The Domis Team

The Truth About Buying a Home: You DON'T Need 20% Down

Posted: 23 Sep 2014 04:00 AM PDT

The Truth About Buying a Home: You DON'T Need 20% Down | Keeping Current Matters In a recent survey,How America Views Homeownership, it was revealed that 68% of Americans feel that now is a good time to buy a home and 95%said they want to own a home if they don’t already. Franklin Codel, head of Wells Fargohome mortgageproduction, explains:
“Although the home buying process has changed in many ways in recent years, our survey found Americans still view homeownership as an achievement to be proud of and many believe that now is a good time to buy a home.”

Confusion Creates Paralysis

However, the survey also reported that many are afraid to purchase a home because of uncertainty about“qualifying for a mortgage or navigating the home buying process”. Though 74% said they “know and understand” the financial process involved in buying a home, they also gave answers that suggest otherwise. For example:
  • 30% of respondents believe that only individuals with high incomes can obtain a mortgage
  • 64% of respondents believe they must have a “very good” credit score to buy a home
  • 44% believe that a 20% down payment is required
In actuality many of these beliefs are unfounded. Let’s look at the question of down payment: Freddie Mac, in a recent blog post addressing the issue, confirmed that there is misinformation regarding the amount necessary when determining the down payment for a home purchase:
“Did you know 40 percent of today's homebuyers using mortgage financing are making down payments that are less than 10 percent? And how about this: since 2010, the number of people putting down less than 10 percent for conventional loans has grown three fold.  So, not only are low down payment options real, they represent a significant portion of today's purchases.”
In a separate Executive Perspectives, Christina Boyle, Freddie Mac’s VP and Head of Single-Family Sales & Relationship Management explained further:
  • A person “can get a conforming, conventional mortgage with a down payment of as little as 5 percent (sometimes with as little as 3 percent coming out of their own pockets)”.
  • Qualified borrowers can further reduce the down payment coming out of their own pockets to 3 percent by lining up gifts from family, grants or loans from non-profits or public agencies.

Education is the Key

Boyle talked about the importance of educating potential buyers:
“Letting more consumers know how down payments are determined could bring more qualified borrowers off the sidelines. Depending on their credit history and other factors, many borrowers can expect to make a down payment of about 5 or 10 percent.”
Codel agreed:
“It is important for prospective homebuyers to feel empowered to ask lenders and real estate agents questions about available options, such as down payment assistance or FHA loan programs or VA loans for veterans.”

Bottom Line

If you are saving for either your first home or that perfect move-up dream house, make sure you know all your options. You may be pleasantly surprised. ______________________________

 

From Keeping Current Matters

Credit Report Errors Can Complicate Home Buying

by The Domis Team

According to a report by the Federal Trade Commission, up to 1 in 4 consumer credit reports contain some amount of erroneous information.

These errors may involve minor spelling mistakes in names or address, or can be more serious in nature and affect your credit score.

Errors in personal information can also be indications of credit fraud. Innocent mistakes happen when names and Social Security numbers are similar; but sometimes the coincidences are not by random chance. The FTC reports that over 9 million people have become victims of credit fraud.

Naturally, you don't want to wait until you're buying a home to discover there's a problem with your credit report. Too often, credit report errors go unnoticed and unreported until a loan denial occurs! You can avoid problems with your mortgage application by checking your credit history and addressing any errors before you apply for a mortgage. Here's what to do:

1. Get your free credit report from annualcreditreport.com.

2. Examine your report for accuracy in your personal data as well as payment record.

3. Circle any errors found on your report.

4. Prepare to back up your case with proof of payments or other supportive data.

5. File a dispute with the credit bureau that supplied the report.You can file online, or send a written dispute in the mail. Make sure your dispute is concise and contains all pertinent facts. If sending by mail, include a copy of the report with the errors clearly circled.

6. Allow up to 30 days for a response. If the bureau rules in your favor, they will supply you with a copy of your new, corrected report.

Not all credit errors affect your score, but enough of them do that it's well worth your time to stay on top of your credit report! Also remember that  mortgage lenders are extra-picky these days, and a clean credit report is worth its weight in gold!

Need home buying help? Let the Domis Team be your guide to Whittier real estate! We will be happy to refer you to a reputable mortgage lender and give you the inside scoop on the local market! Contact us for friendly, professional service!

The Domis Team
Prudential California Realty
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6 Mortgage Mistakes Whittier Home Buyers Should Avoid!

by The Domis Team

Everyone knows that getting a mortgage can be tricky nowadays, but some Whittier home buyers may not realize how tricky it is to keep your mortgage approval valid through closing! Here is what you should know!

Lenders will re-verify all of your information prior to closing, including your employment, banking info and credit file. There is no such thing as a "good change" in this data in the lender's eyes, as it changes their risk evaluation.

Even a change of employment that provides higher pay is "bad" because a new job is a worse credit risk than long-established employment!

With this logic in mind, here are the missteps to avoid, according to Realty Times:

1. Opening new credit. Your mortgage lender will assume you're about to rack up a bundle.

2. Closing any existing lines of credit. This can actually lower your credit score. It's better to leave inactive accounts alone.

3. Missing any payments. One payment past due 30 days can put your credit score into a tailspin.

4. Making a large purchase using credit. This affects your debt-to-income ratio, which is carefully calculated as part of your ability to qualify for the mortgage.

5. Making large balance transfers between bank accounts, or withdrawing or depositing large amounts of cash. Believe it or not, cash can be a problem because lenders want a paper trail of where your money is coming from, and where it's going, and why. Mortgage fraud and other criminal activities have made lenders skittish of unexplained cash.

6. Co-signing for someone else. Even though you are not the primary account holder, you could be held liable for the entire balance if the primary signer defaults. Naturally, your mortgage lender will assume the worst.

It's a good idea to keep all this in mind before you apply for your mortgage, and especially after you win your initial approval! And while it's frustrating to walk on financial eggshells, remember that this level of scrutiny is only temporary.

Want to know more about obtaining a home mortgage in Whittier? We can refer you to reliable mortgage professionals who will be happy to talk to you!

Whenever you need information about the Whittier real estate market, we're here to help you! Contact us for the latest market reports, trends in home prices and new listings! We will always provide you with the best in courteous, professional service!

The Domis Team
Prudential California Realty
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New Year's Resolution Debt Reduction Tips for Whittier, CA!

by The Domis Team

The holidays are the most wonderful time of the year, but they can also be the most expensive time of the year! Credit cards make it easy to be generous when buying gifts or hosting parties, but paying off the debt can be difficult.

High balances on your credit cards can hurt your ability to be approved for a mortgage, and can adversely affect your credit score. Here are tips on how to tackle your credit card debt:

1. If you are struggling with your bills, seek help through the National Foundation for Credit Counseling. They can help you form a budget, and they may be able to negotiate solutions with your creditors.

2. Pull a copy of your credit history from annualcreditreport.com and verify the accuracy of the data.

3. Organize your debts according to the highest balance and highest interest rate.

4. Tackle the credit card with the highest outstanding balance and highest rate first. This is the account doing the most damage in interest charges. Make the minimum payments on other debts in the meantime.

5. Once the most expensive card is paid off, re-direct the monthly payment towards the next largest account, and so on.

6. If necessary, consider borrowing against your 401k in order to pay off large credit cards. This strategy must be used with caution. If you do not have the discipline to stop using your credit cards, you could end up increasing your total debt and have less cash flow to deal with it. There are also tax repercussions if you fail to repay a 401k loan.

On the plus side, borrowing against your 401k can help you remove toxic debts and quickly improve your monthly cash flow. Crunch the numbers and be honest about your abilities.

7. Be aware that closing your accounts can actually hurt your credit score. Paying them off is ok; but going the formal route of closing them can cost you points. It's better to simply cut up the cards or put them away to avoid temptation.

By creating a budget and acting upon a debt reduction strategy, you can take control of your finances during 2013! This could enable you to buy a Whittier home and accomplish other long-term goals.

When you are ready to buy or sell a home, turn to us! At the Domis Team, we have the local expertise and the friendly, professional service you can count on. Whether you need a comparative market analysis to find your home value, or you'd like to visit Whittier homes for sale, we are here to help you! Contact us today for the Whittier real estate guidance you can trust!

The Domis Team
Prudential California Realty
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New "CoreScore" Could Affect Whittier Home Buyers

by The Domis Team

Whether you are buying a new home, financing a car or consolidating debt, you might be surprised by what your credit report can unearth these days. And while it’s no secret that lending practices have become cautious, you may not realize how much of your financial history is under scrutiny.

Several months ago, the data mining company CoreLogic  announced that it would partner with credit tabulator FICO to create a new consumer score. The product of the joint effort, called a “CoreScore,” does not replace the traditional credit histories available through Equifax, TransUnion and Experian. Instead, it supplements them, using transaction histories not previously amassed. 

Here is what your CoreScore may include:

  • Rent payment and eviction history
  • Child support judgments
  • Utility payment history
  • Record of payday loans
  • History of property tax and HOA payments
  • Record of all real estate property owned
  • Record of property owned with negative equity

The CoreScore became available to lenders, employers and insurance companies as of March 30, 2012. While the CoreScore may make credit more accessible to those lacking traditional credit histories, it may also cause lenders to ask more questions about your financial past.

As a Whittier home buyer, should you be worried about your CoreScore? Unless you have negative events in these histories, you probably don’t need to worry. Even then, remember that the CoreScore is not replacing normal credit reporting; instead, it adds another layer of data to your consumer profile. 

You will able to pull your CoreScore report later in 2012, through annualcreditreport.com. You can file disputes and request corrections on your CoreScore report, just as you can with your traditional credit history.

We want you to be prepared for your home purchase and we hope this information helps you! If you are thinking of buying a home, there are wonderful homes for sale in Whittier and we’d love to show them to you! We also have information about mortgage financing to help you prepare for a successful home purchase.

Contact us for the latest Whittier market information, and for the best in friendly, professional service

The Domis Team
Prudential California Realty

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Photo of Linda & Ryan Domis - The Domis Team Real Estate
Linda & Ryan Domis - The Domis Team
Keller Williams Realty
16310 E. Whittier Blvd. Suite F
Whittier CA 90603
Cell: 562-884-5373
Cell:562-458-6947
Fax: 562.902.5158
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