Financing

A shortage of homes for sale and rising home prices are making it challenging for first-time buyers, in particular, this spring. For those who want to land a home, real estate professionals are urging them to move fast.  

The price of an existing home in March was about $250,000, up nearly 6 percent from a year ago, according to the National Association of REALTORS®. Homes are selling faster too, often under contract in about a month. 

“The starter house is nearly missing in some markets,” says Jessica Lautz, NAR’s director of survey research and communication. 

In Colorado Springs, Colo., real estate pro Jay Gupta says the imbalance between the supply of homes and demand is “unprecedented” and many buyers are being priced out of some areas.

Side gigs or roomies can help shave years off your debt. Lenders like that.

There’s finally proof to what we’ve all long suspected — that student loan debt is delaying first-time home ownership. In fact, a recent study from the NATIONAL ASSOCIATION OF REALTORS® and the nonprofit American Student Assistance, reveals that this debt can delay home ownership for 7 years (or more).

Perhaps even more concerning is that more than 50% of respondents are paying off over $40,000 in balances, with some owing more than they earn in a year.

So, how can first-time homebuyers break into the market against such tough circumstances? There’s really only one answer: prioritizing student loan repayment above everything else. Not only will repaying balances save

Magic 8 ball says yes. Here’s what to know to itemize tax deductions as a homeowner.

Taxes? Gross! Who wants to think about government paperwork, especially when your hand still aches from signing the 977 forms required to buy your first house? But listen up: As a new homeowner, you can typically wave bye-bye to the 1040-EZ form and say hi to itemizing your deductions on Schedule A.

That means you can combine the thousands you’re now paying in mortgage interest and property taxes with what you’re already paying in state and local income taxes. And bam! Suddenly, you’ve got more to deduct than the $6,300 standard deduction.

For recent first-time homeowners Ben and Stephanie Liddiard, buying a rambler in Layton, Utah, led to tax savings that

You’ll save yourself thousands if you know why people mess up.

Can’t wait to cozy up in that cute Colonial, but anxious about signing up for your first mortgage?

We get it. Buying your first home is a big stinking deal. But with a little know-how, it’s easier than expected to make smart mortgage moves and save big bucks over the course of your loan.

By avoiding these mistakes, you can put your home-buying butterflies to rest.

#1 Finding Your Home Before You Find Your Mortgage

How Much It Could Cost You: Enough to send your future kid to college. Seriously, over the life of the loan, you could end up paying tens of thousands of dollars more in interest and fees than you need to.

Why People Mess This Up: If you don’t have your financing

How you manage your home ownership finances affects your credit score—and your ability to refinance later.

\Your credit score affects how much you’ll pay for a mortgage or refinance—or even if you can get one at all. Master the six ways to manage home-related spending to keep your credit score braggingly high.

1. Postpone that refinance until your credit is squeaky clean.

Even a small blemish on a credit report can cost you at closing. Money expert Denise Winston found that out firsthand: Her husband hadn’t paid a $40 pager charge. The unpaid bill was turned over to a collection agency and ended up damaging his credit score.

Because of that one small unpaid bill, the interest rate on the couple’s mortgage was 0.25% higher than if he’d had a

How to ensure you get the best possible interest rate you can.

The key is to become a better borrower. Is it possible to influence the type of deal you get? Yes, especially if you avoid these missteps.

1. Not Checking Your Credit Report

The three main credit bureaus — Equifax, Experian, and TransUnion — keep track of your credit history, including lines of credit, payments, and available credit lines, among other data. While most information collected is similar across all three bureaus, it’s possible to find differences between reports. 

When checking your credit reports, it’s most important to check for errors or misinformation. Accurate information can’t be deleted, but any information that can’t be verified or that’s inaccurate can be

BY BARBARA EISNER BAYER

You can refinance or recast your mortgage. Or you can create your own DIY mortgage restructuring plan. We compare so you can decide.

The way your mortgage is structured today doesn’t have to be the way it’s structured tomorrow. What are your goals? To free up funds, reduce your monthly nut, or pay off your loan more quickly?

These three strategies offer something for most everyone.

• Send in extra money to pay down principal.
• Recast your mortgage.
• Refinance your loan.

Send in Extra Money to Pay Down Principal

In the mid-1970s, Marc Eisenson coined the term “banker’s secret,” which promoted a cost-saving idea: Pay more than required on your monthly mortgage, and you’ll save a pile of money. Eisenson says,

Once a buyer settles on a home, they often show their commitment with an earnest-money deposit. But if they’re not careful, they could lose thousands of dollars.

Realtor.com® recently featured some of the biggest mistakes home buyers most often make with earnest-money deposits, including:

Failing to understand exactly what an earnest-money deposit is.

It is proof that a buyer is committed to completing the sale. Earnest money is used as credit toward the down payment and closing costs. It’s often a negotiable amount between the buyer and seller and usually about 1 percent to 2 percent of the purchase price, although it could be much higher.

Not offering up enough.

When a market is competitive, offering more earnest money may be one way to

Updated Servicing Rule Provides Surviving Family Members and Other Homeowners with Same Protections as Original Borrowers

Washington, D.C. (August 4, 2016) – The Consumer Financial Protection Bureau (CFPB) today finalized new measures to ensure that homeowners and struggling borrowers are treated fairly by mortgage servicers. The updated rule requires servicers to provide certain borrowers with foreclosure protections more than once over the life of the loan, clarifies borrower protections when the servicing of a loan is transferred, and provides important loan information to borrowers in bankruptcy. The changes also help ensure that surviving family members and others who inherit or receive property generally have the same protections under the

Source: HomeOwnershipMatters.realtor

Fast Fact: First and last month’s rent, plus deposit, is a significant chunk of cash. Scammers know it, and have mastered the art of stealing it.

It’s tough enough to find an affordable rental in today’s tight market, so when you see that oh-it-looks-perfect place for an even more perfect price, take a closer look. It could be a scam. To avoid being a victim, ask yourself these 5 questions.

• Does the landlord or agent say they’re unable to meet you at the property?
  Scammers often say they’re out of the country, on a mission, etc. Instead they’ll send pictures and offer to send keys if you send payment. The keys won’t let you in.
• Are they rushing you?
  Scammers try to rush you into sending them