Navigating Fed Fund Rate Increases, GDM Mortgage Corp's Expert Guidance and 3-5 Loan Options to Secure the Best Mortgage Rates:
The impact of Federal Reserve's Federal Funds Rate on mortgage rates can create uncertainties for borrowers. However, GDM Mortgage Corp, a reputable mortgage company, provides expert guidance and unique advantages that go beyond what traditional lenders offer. In this article, we will explore the impact of Fed Fund Rate increases on mortgage rates and how GDM Mortgage Corp stands out by offering 3-5 loan options, ensuring borrowers secure the best mortgage rates available.
The Relationship Between Fed Fund Rates and Mortgage Rates: As the Federal Funds Rate rises, it influences banks' Prime Rate, resulting in increased fixed-rate mortgage rates. Adjustable-Rate Mortgages (ARMs) are also affected, with subsequent rate adjustments potentially leading to higher monthly payments for borrowers.
How GDM Mortgage Corp Helps:
Expert Guidance: GDM Mortgage Corp boasts a team of experienced mortgage experts well-versed in market trends. Their insights into the impact of Fed Fund Rate increases enable borrowers to make informed decisions, ensuring they secure the most competitive interest rates.
Wide Range of Mortgage Products: GDM Mortgage Corp offers a diverse selection of mortgage products tailored to individual financial goals and preferences. Whether borrowers seek stability with a fixed-rate mortgage or flexibility with an ARM, GDM provides suitable options.
Personalized Solutions: Recognizing the importance of personalization, GDM Mortgage Corp takes the time to understand borrowers' financial objectives. This approach allows them to craft tailored mortgage solutions that align perfectly with their clients' needs and budget.
Exclusive Deals: GDM Mortgage Corp's established relationships with multiple lenders grant borrowers access to exclusive deals and competitive interest rates, surpassing what traditional lenders can typically offer.
Streamlined Application Process: GDM Mortgage Corp prioritizes efficiency with a streamlined application process. Borrowers can expect a seamless journey, obtaining the funding they need without unnecessary delays.
Transparent and Honest Communication: Honesty and transparency form the foundation of GDM's values. They communicate mortgage terms, rates, and associated fees straightforwardly, empowering borrowers to make confident decisions.
GDM Mortgage Corp emerges as a reliable partner in navigating the impact of Fed Fund Rate increases on mortgage rates. Through expert guidance, personalized solutions, access to exclusive deals, and a streamlined application process, GDM ensures borrowers secure the best mortgage rates available. By offering 3-5 loan options tailored to individual needs, GDM Mortgage Corp goes above and beyond traditional lenders, empowering borrowers to achieve their homeownership dreams with confidence. When faced with fluctuating interest rates, entrust your mortgage needs to GDM Mortgage Corp, and experience the difference of working with a dedicated and customer-focused mortgage company.
Having good credit is crucial for achieving financial goals and securing favorable terms when borrowing money. Whether you're planning to buy a home, get a car loan, or simply want to enhance your financial well-being, improving your credit is a wise investment. In this blog post, we will explore some top tips to help you on your journey to better credit.
Know Your Credit Score: Start by obtaining a copy of your credit report and checking your credit score. Understanding where you stand is essential for formulating a plan to improve your credit. You can access your credit report for free from major credit bureaus once a year.
Pay Bills on Time: Consistently paying your bills on time is one of the most effective ways to boost your credit. Late payments can have a significant negative impact on your credit score, so set up reminders or automatic payments to ensure timely payments.
Reduce Credit Card Debt: High credit card balances can harm your credit utilization ratio, which compares your outstanding credit card debt to your credit limit. Aim to keep your credit utilization below 30% to demonstrate responsible credit management.
Establish a Payment Plan: If you have outstanding debts, create a payment plan to tackle them systematically. Prioritize paying off high-interest debts first, while still making minimum payments on other accounts.
Diversify Your Credit: Having a mix of credit types, such as credit cards, installment loans, or a mortgage, can positively impact your credit score. However, only take on new credit if it aligns with your financial goals and you can manage it responsibly.
Be Cautious with New Credit Applications: Each time you apply for new credit, it generates a hard inquiry on your credit report, which can temporarily lower your score. Minimize new credit applications unless necessary to avoid potential negative impacts. The good news is that GDM Mortgage Corp only runs your credit once and shops multiple lenders on your behalf.
Regularly Monitor Your Credit: Stay vigilant by monitoring your credit report for any errors or signs of fraudulent activity. Address any discrepancies promptly to protect your credit standing.
Seek Professional Guidance: If you're struggling to improve your credit on your own, consider seeking advice from a reputable credit counseling agency. They can provide personalized guidance and help you develop a tailored plan to achieve your credit goals.
Improving your credit is a journey that requires discipline, patience, and persistence. By implementing these tips and adopting responsible financial habits, you can steadily enhance your creditworthiness. Remember, building good credit takes time, but the long-term benefits are worth the effort. Take control of your financial future today by working towards a stronger credit profile. Your path to financial freedom starts with better credit.
Here are some updated tips for home buyers in 2023:
Establish a Budget for 2023: Take into account any changes in your financial situation this year and determine your budget accordingly. Consider factors like updated income, expenses, savings, and potential fluctuations in mortgage rates. Adjust your price range to ensure affordability based on current market conditions.
Get Pre-Approved for a Mortgage in 2023: Start your home buying journey by obtaining a pre-approval specifically for this year. This will give you an accurate understanding of your borrowing capacity and help you make competitive offers in a potentially tight market.
Work with a Knowledgeable Real Estate Agent: Partner with a real estate agent who is up-to-date on the latest market trends and conditions in 2023. They can provide valuable insights, guide you through any changes in the buying process, and help you navigate the unique dynamics of the current real estate landscape.
Prioritize Changing Lifestyle Needs: As lifestyles continue to evolve, prioritize features that accommodate your changing needs in 2023. Consider factors like dedicated home office spaces, outdoor areas for relaxation and entertainment, and access to amenities that align with your current lifestyle preferences.
Embrace Technology and Virtual Tools: Leverage virtual tours, video calls, and digital platforms to explore properties remotely and save time during your search. However, also ensure you balance virtual experiences with physical visits to gain a comprehensive understanding of potential homes.
Stay Informed about Sustainability and Energy Efficiency: In 2023, the emphasis on sustainability and energy efficiency continues to grow. Look for properties with eco-friendly features such as energy-efficient appliances, smart home technologies, and renewable energy options to reduce your carbon footprint and potentially save on long-term expenses.
Research Neighborhoods with an Eye on Future Trends: Investigate neighborhoods carefully, paying attention to any changes or trends specific to 2023. Look for areas experiencing growth, upcoming infrastructure projects, or improvements that could enhance property values in the future.
Review Contracts and Seek Legal Advice for 2023: Ensure you thoroughly review all contracts and legal documents related to your home purchase in 2023. Seek legal advice if necessary, as laws and regulations may have changed, and it's crucial to understand the terms and conditions before finalizing any agreements.
Be Flexible and Open to Opportunities: In a dynamic real estate market, be open to opportunities that may arise. Stay flexible in your search criteria and consider properties that have potential for growth or offer unique advantages, even if they don't perfectly match your initial expectations.
Trust Your Intuition in 2023: While data and research are essential, trust your instincts when making decisions. In 2023, the market may present different challenges and opportunities, so rely on your gut feeling to ensure you make choices that align with your goals and preferences.
Remember, buying a home in 2023 requires adapting to the current market conditions and being proactive in your approach. By staying informed, seeking professional guidance, and trusting your instincts, you'll be better equipped to make informed decisions and find the right home for you in this evolving real estate landscape.
For every home purchase, most loan programs require a down payment. It all depends on which program you can qualify for.
Lets go over each program:
1. FHA: Minimum Down Payment Requirement 3.5% of Purchase Price
2. Conventional: Minimum Down Payment Required: 5% of Purchase Price
3. HomeReady/HomePossible: Minimum Down Payment Required: 3% of Purchase Price.
1. Lets go over the FHA program and who, in my opinion, is ideal for. This loan is ideal for borrowers who have higher debt and lower credit scores. Most lenders will accept a credit score of 580. There is a one time funding fee of 1.75% of the loan amount either added to your loan or you may pay it out of pocket. The mortgage insurance factor is always 0.85% of the initial loan amount, no matter what credit score. The downside, currently, you are not allowed to remove the mortgage insurance without refinancing to a conventional loan. There is also a maximum loan amount that FHA allows per county, so please make sure what is the limit in your county. I recently read an article stating FHA is trying to pass a rule to allow borrowers to remove the mortgage insurance, but as of today's blog, there is no certainty if it will pass. If you believe your credit score is less than average but more than 580 and/or your monthly debt is more than 50% but no more than about 57% then this may be your loan.
2. For the Conventional Program, this is your standard Fannie/Freddie Loan with a minimum 5% down payment. Most lenders require a minimum of a 620 credit score. Your mortgage insurance rate is based on your credit score, so the higher the score, the lower the mortgage insurance. Most lenders allow up to 50% DTI (Debt to Income) Ratio also depends on your credit score. You are allowed to remove the mortgage insurance once you surpass 22% equity either by paying down the principal or appreciation of value. This will be determined by your lender/investor. There are also maximum loan limits per county, so please make sure what is the maximum before the loan turns into a Jumbo Loan.
3. HomeReady/HomePossible: These are conventional programs created by Fannie/Freddie to compete with FHA. The minimum down payment for these loans is 3%. Most lenders require a minimum of a 620 credit score. There are income limits per area so please visit the HomeReady website, (https://homeready- eligibility.fanniemae.com/homeready/). Input the address of the property you are purchasing/refinancing and see what the income limits are. Before, there were some areas with no income limits, but both companies have removed the "No-Limits" as of the end of July of 2019. Once you have the income limit for your home, you can proceed if you fit their income limit. The mortgage insurance is also dependent on your credit score, so if you credit is in the lower range, prepare to pay. You are allowed to remove the mortgage insurance once you surpass 22% equity either by paying down the principal or appreciation of value. This will be determined by your lender/investor.
I have not mentioned this program as this will only qualify if you are in a designated rural zone. I am talking about the USDA program. This program is 0% down....yes you read it correctly....0% down. Most lenders require a credit score of 620 with a monthly DTI of 45%. There is also an income limit for each zone, so please visit the USDA website and input the address of the subject property. There is a funding fee of 1% and a monthly insurance factor of 0.35%.
Please contact us with any questions about these loans and other loans we offer here at GDM Mortgage Corp. (407) 930-4490
Lets Achieve Grand Results!!!
Many clients ask me if they have a new job, can they qualify for a new home?
The clear answer is yes and no....;)
Yes: If you have a full 2 year work history with minimal gaps. So, if you were working at your previous employment for lets say 1 year and 10 months and you are at your current employment for 2 months, then that will equal the 2 year employment.
Let's say you have 5 years on your previous employment @ $15 per hour and only 1 week for your current employment @ $20 per hour....the answer is yes you can use the current income for your employment to qualify.
Other exceptions is if you were attending college of a technical college for 2 years, and now found a job for about 30 days, then you would qualify with your new employment, since you were in school for 2 years.
No: If you started your employment but do not have a 2 year history with any employer.
These scenarios are for employees and not self-employed borrowers. That will be discussed on our next blog. Stay tuned!
If you still have questions, please call us, and we can advise you on how to proceed.
Thank you! :)