First Time Home Buyers: 5 Steps to Get Started

Are you ready to buy your first home? Buying a house is one of the largest investments you will make in your lifetime and being a first time home buyer can make the whole process daunting and confusing. Here are a few steps to get you on the right track. 

Step #1 - Check Your Credit

When you begin working with a loan officer, one of the first questions they'll ask is what your credit profile is like. The bank or lender will run a credit check to assess your level of risk as a borrower including your ratio of debt to income and decide how likely you are to make your mortgage payments on time. Since this is your first time buying a home, do your own credit check first via www.AnnualCreditReport.com to make sure there are no errors. 

Tips to Remaining Calm During the Loan Process

Stress is a buzzword these days. It seems like each month a new study comes out confirming that stress contributes to a variety of mental and physical issues such as high blood pressure, anxiety, insomnia and premature aging. Aside from the obvious "life or death" scenarios one might encounter once in a blue moon, it's everyday situations such as job interviews, sickness, family decisions or financial hardships that really "stress" us out. 

It's a common statement that buying a home is one of the biggest investments a person will ever make so it's no surprise that it is an event that often causes a great deal of stress. Add to the fact that most people need financial help via a mortgage loan and suddenly, you are not only dealing with the stress of picking the "right" home but also qualifying for financing to make it "your"  home. And just when you think the stress is over, rates drop and your in the market to refinance and go through the loan process all over again.

House Hunting Tips Part III: Getting Emotionally Ready to Buy a Home

Are you thinking about buying a home? If you've done your share of house-hunting before, you know that finding that perfect house can be an exhausting endeavor financially, physically and emotionally.

In this Part III of our Home Buying checklist series - we're going to review the emotional prep work necessary to get the most out of your house hunting.

House Hunting Tips Part II: Getting Physicially Ready to Find a Home

Are you thinking about buying a home? If you've done your share of house-hunting before, you know that finding that perfect house can be an exhausting endeavor financially, physically and emotionally.

In this Part II of our Home Buying checklist series - we're going to review the physical prep work necessary to get the most out of your house hunting.

House Hunting Tips Part I: Getting Financially Ready to Buy a Home

Are you thinking about buying a home? If you've done your share of house-hunting before, you know that finding that perfect house can be an exhausting endeavor financially, physically and emotionally.

In this Part I of our Home Buying checklist series - we're going to review the financial prep work necessary to get the most out of your house hunting.

How to Deal with A Difficult Homeowners Association

Whether you currently live in a community with a Homeowners Association (HOA) or are considering buying a home that is subject to an HOA - odds are you might have some concerns about how to best deal with a difficult homeowners association.

Understanding the Bylaws is Key

Bylaws are created upon the formation of a homeowners association to help create a standard of expectation. As a homeowner, reading the bylaws helps you know what is expected of your home and property as well as the proper course of action you should take to make changes or additions. An HOA will be far less of a nuisance if you follow the rules and procedures outlined in the Bylaws.

How is a Credit Bureau Score Calculated?

Whether you are looking to open a credit card, finance a car or buy a home...you've probably noticed that your credit score is important. A credit score is essentially used to assess how likely it is that a borrower will repay a loan. The score measures the relative degree of risk that a potential person represents to a lender or investor and is based on several areas of information (however, because of several laws against discrimination - it is not based on gender, race age or zip code.)

Credit Bureaus & Score Range

Fair, Isaac Credit Bureau scores range between 300 to 850 points - the higher the score, the less risk associated with the borrower. Below are the three national credit data repositories that contribute to your score:

• Equifax - 800-685-1111
• Trans Union - 800-888-4213
• Experian - 800-397-3742

Each of these bureaus may offer you a slightly different credit score depending on the data within their own credit profile. Keep in mind that a score is based on all credit-related data - not just negative data. 

Common Title Insurance Questions...& Answers!

If you've ever purchased a home, it's possible you've heard title insurance discussed however there is often some confusion about this vital part of the home buying process.

What Does a Title Company Do?

When you make an offer to purchase a home - how can you be sure that there are no issues or problems with the home's title? How do you know that the seller actually owns the property? A title company will run a title search on the property to answer these questions. 

Lenders require a title search to prevent fraudulent sales. A title search will ensure that the seller is the owner of the home and attempts to uncover an "encumbrances" that may be on title. Encumbrances include any liens (legal claims) against the property filed by either creditors in an attempt to collect unpaid bills or by the IRS for unpaid taxes. Contractors liens, unpaid homeowner dues and unpaid child support are all examples of other possible issues. These encumbrances must be resolved (paid) either before or at closing. 

The title professional will search the public records which involves reviewing land records that go back many years. More than one third of all title searches reveal a title problem that title professionals will need to fix before you can close. This should not only be important to lenders but also to buyers, as in many cases, encumbrances follow the property - not the owner.

4 Topics to Discuss with Your Loan Officer

You’re ready to buy or refinance – but whether this is your first or fourth loan – you may find that working with a loan officer to be confusing and difficult. Having a clear understanding of what you want and how to communicate with your mortgage professional is critical for success. To keep everything running smoothly – make sure you discuss the following topics with your loan officer.

1 - Communication Style

Mortgage professionals will communicate with you in a variety of ways including by phone, email and text. Some are tech savvy and others prefer traditional methods. The point is to be clear about what YOU prefer. If you respond more quickly to text messages versus voicemail - tell your loan officer. Often times, there are time sensitive issues that arise during the loan process, so it will make everyone happy if your loan officer knows how to get questions answered, additional documentation etc. in a timely manner.

How to Hire a Reputable Moving Company

You've bought a new home and moving day is here! The truck arrives and the movers begin unloading your boxes and furniture when you realize...some items are missing. And then you notice a grease stain on your favorite chair and your grandmother's mirror is shattered. Suddenly, your dream home is filled with the nightmares associated with an unreliable moving company.

If you are planning on moving this year - the best advice we can give you is to follow these 4 key ways to ensure your experience is a happy one.

1. Start by Doing Some Research

As with any service industry, there are companies that excel at what they do and others that do the bare minimum to get by. There are also companies that stoop to scamming their customers. The most effective way to find the kind of moving company that will treat your belongings with care and respect is to educate yourself. Go online and look at several moving companies. If you find a company that you like but have questions - pick up the phone and call. Make sure you get all of your questions answered before you schedule or make a payment.

• Is their website professional? Does it answer your top questions?
• Do they ask for a deposit or full payment up front? (beware of companies that want to be paid in full before the service is completed)
• Are they clear about what their service includes? What will you need to do/provide?
• Do they display their credentials? Ask for the registration number with the U.S. Department of Transportation
• Is the crew made up of employees or sub-contractors? Do they do background checks?

What Does it Mean to Be Mortgage Assured When Buying a Home?

The Mortgage Assured program from Midwest Equity Mortgage is a unique option to give you the power to get the home you want.

How does being Mortgage Assured Appeal to Sellers?

The market has gotten competitive and with the increasing number of cash buyers making offers - it can be hard for a financed offer to compete.



When you're Mortgage Assured with Midwest Equity - you have more than just a Pre-Approval which means you'll look more serious than other financed offers.

How Does Mortgage Loan Underwriting Work?

Whether looking to buy a home or refinance, you will likely apply for a mortgage loan and encounter about the underwriting process. Lenders and loan officers might mention “underwriting” but few home-owners and buyers might actually know exactly what this step is and how it impacts their ability to secure financing.

What is Underwriting?

Underwriting is a process that allows lenders to determine if you qualify for financing based on your level of credit risk. An underwriter is a skilled in-house person who looks at every aspect of your financial profile to determine if its possible and likely that you can repay the debt. The underwriter will consider your mortgage application and verify the information you’ve submitted. This can include verifying with your employer that you are currently working. They may also compare bank statements and tax records to ensure you have substantial income to repay the loan.

How Long Does the Loan Process Take?

The time it takes to secure a home mortgage will vary based on the TYPE of mortgage, homebuyer/homeowner scenarios and each individual lender’s processing schedule. According to HomeGuides.com – it’s reasonable to assume that a typical home loan will take 4-6 weeks from application to funding. Certain loans may take longer to reach closing.

Complete An Application

A smooth process starts off with a strong start! It will be easier for your mortgage professional to estimate a closing date once you fully complete an application. This is more than just submitting a Form 1003 – you need to also submit income verification (usually two recent pay stubs and the past 2 years’ W-2 or 1099s) along with any additional documentation that you lender may require for your specific situation. Bank statements, proof of down payment funds, purchase agreements and necessary letters of explanation (LOE) may be required to formally complete your application.

5 Benefits to Becoming a Homeowner

Everyone will tell you that there are financial benefits to owning a home but it’s important not to forget other positive reasons that have nothing to do with money.

1 – Security

If you’ve been a renter before, you know that your ‘rights’ are limited and many times the possibility of moving rests on the whim of your landlord. When you buy a home – it puts you in control. As long as you make your payments, you are the master of your castle and that security can help you sleep better at night.

How Does a Home Appraisal Work?

During most real estate transactions, it will become necessary to have a home appraisal done on the subject property. This formal process of evaluation is the most effective way to determine the current value of a home not only for a buyer and seller but also for the lender who is providing financing for the purchase or refinance. While the concept might not be initially confusing, there are several misconceptions about the industry that can make the process seem complicated. Understanding what the appraiser does and how their evaluation plays a role in your financing can make the transaction easier.

The Purpose of a Home Appraisal

As you may know, home values fluctuate because of a variety of factors including supply, demand and regional influences. A home appraisal is done to determine the current market value of a property. Since this value will be used by the lender to determine equity and loan-to-value, an approved, reliable appraiser must be hired to complete the evaluation. It is important to note that he formal appraisal report that the appraiser files when financing is being sought from FHA, FNMA and Freddie Mac, will be registered with the national database and kept on file for six months.

3 Issues that Can Cause a Pre-Approved Loan to be Declined

Thinking of purchasing a home in the near future? Understanding what a lender is looking for (and avoiding) is key to enjoying a smooth process.

Getting Pre-Approved

A preliminary step to buying a home is getting pre-approved. This process involves an initial submission of your financial picture to your loan officer to see if you initially qualify for financing and obtain an estimate of how much the lender is willing to lend you. Unfortunately, many people believe that once they have been pre-approved for a mortgage – the loan is guaranteed. Nothing could be further from reality. Your loan can be denied by the lender AFTER being pre-approved and it happens often.