New Year, New Goals for Homeowners and Homebuyers

Are you struggling to find a great New Year’s Resolution? As a homeowner, you may be wondering what you can do to improve your finances or keep your home safe. As a homebuyer, you may wonder what you can do to prepare yourself mentally and financially. Not to worry—CF Funding has a few ideas!

New Years Resolutions for Homeowners

One great resolution to kick off the new year is to improve and maintain your safe home habits. Check your alarm system and smoke detectors to make sure they are running properly. Reduce the risk of fire by checking for damaged appliance cords and “[Keep] clothes, curtains and other potentially combustible items at least three feet from all heaters,” according to the National Association of Home Builders. You can also implement a family emergency plan if you don’t already have one. For example, make sure contact information is easily accessible for children and an escape route is planned in case of a fire.

Another way to protect your family from disasters is to check up on your homeowners insurance. You may have purchased a great plan when you first bought a home, but if you have remodeled your home or purchased new items, you might need to expand your coverage. If your goal is to spend more time with family this year, consider taking on a home improvement project. Visit our new pinterest page at www.pinterest.com/cffunding/ for some fresh ideas.

A simple New Year’s resolution that many people overlook is to understand your credit history and credit score. Checking your credit history regularly can reduce the risk of errors, and knowing what affects your credit score both positively and negatively can help you to maintain a good score. A good score can lead to better rates on credit cards or a home refinance. If you are considering refinancing your home in the New Year, talk to a CF Funding loan specialist first. You may be able to reduce your interest rate or consolidate your debt.

Another way to save on your mortgage in the new year is to make extra mortgage payments. You could potentially cut years off your mortgage by making an extra payment each year.

New Years Resolutions for Homebuyers

One very important step in the homebuying process is to save for a substantial down payment on a home. If you have done your research or have purchased a home before, you know that down payments range from 5 to 20 percent, possibly lower if you are a veteran or qualify for an FHA loan. Saving up for a higher down payment can help to lower your interest rate and put more equity into your home from the start.

You may also want to check your credit report for inaccurate information before applying for a home loan. Understanding your credit is important for everyone, but especially for potential homebuyers. An error on your report could lead to a higher rate or denial of your application. One way to keep your credit in line is to watch your holiday spending. The holidays may be over, but the after-holiday sales are still in full swing. Opening store credit cards and raising your amount of debt for holiday spending can cause your credit score to go down and your loan rates to go up.

Attend a homeownership education course to learn more about the process of buying and maintaining your new home. There are plenty of classes available across the U.S. including seminars and online education. CF Funding also hosts classes for first-time homebuyers at local libraries. Check our

Facebook page or call 630-328-8900 for more info.

Build a great home-buying team to help you along the way. Your support team can make all the difference in the home buying process. That may include lawyers, agents, and of course our team of Loan Specialists here at CF Funding.

And finally, after moving in, Keep safety in mind by ensuring that your new home has working smoke detectors, locks, & alarm systems. Check to see that your homeowners insurance properly covers you in case of an emergency. If you don’t already have a family disaster plan, make one! You can find tools to help you at http://www.ready.gov/make-a-plan.

Do you have new years resolution ideas you would like to share with CF Funding? Visit us on Facebook at ww.facebook.com/cffundingcorp and leave us a comment!

Self-employed buyers can now Qualify using bank Statements!

Contact a CF Funding Loan Specialist for more information about this great program! Call 888-344-4080 or visit www.cffunding.com today.

Loan approval is subject to credit approval and program guidelines. Not all loan programs available in all states for all loan amounts. Interest rates and program terms subject to change without notice. Residential M ortgage Licensee # Illinois M B 0005978, California 6031932, Colorado, Tennessee 11 4055, Florida M LD1082, Virginia MC-5825, Texas. Company NM LS # 202670.

Mortgage Credit More Available, Rates Remain Low

CF Funding is pleased to share that mortgage credit is becoming more available, according to the Mortgage Credit Availability Index (MCAI). In the month of May, mortgage credit availability increased by about 1.4 percent, from 113.8 in April to 115.1. Some investors have lowered credit score requirements for FHA loans, which had an effect on the score. JUMBO loans also become slightly more available in May. 

As seen in the graph, the index benchmarked to 100 in March 2012. The Mortgage Credit Availability Index did not exist during the housing boom, but an expanded historical chart has been released which reveals credit availability scores as high as 850 in 2006. Scores quickly dropped from October 2006 to October 2008 to levels near 100, and have remained close to 100 for the past six years. CF Funding is happy to see credit availability increase, although the pace is slow.

The MCAI uses several factors to calculate credit availability, including credit scores, loan types, LTV ratios, and other factors. Underwriting data from over 85 lenders and investors are used to create the index.

In other mortgage news today, interest rates were relatively unchanged in response to the Employment Situation Report. Total nonfarm payroll employment increased by 217,000 in May, but the unemployment rate remained at 6.3 percent. Most major worker groups (adult men, adult women, whites, blacks, and Hispanics) showed little to no change in unemployment in May.  The number of long-term unemployed was nearly unchanged as well. As a response, the most prevalently quoted conforming 30-year fixed rate remained at about 4.125 to 4.25 percent, according to Mortgage News Daily. Best-execution rates for FHA/VA today are near 3.75 percent, and 15 year fixed rates are near 3.375 percent. Interest rates for a 5-year adjustable rate mortgage are about 3 to 3.5 percent, depending on the lender. These rates are calculated based on an ideal scenario and may vary based on credit scores and other factors.

Although interest rates have risen since last year, rates are still considerably low in comparison to previous years. Over the past 20 years, the rate for a 30-year fixed rate mortgage reached as high as 8.5 percent (in 2000) and 8.8 percent in 1995.

CF Funding regularly reports mortgage interest rates on the lender’s website at www.cffunding.com/index.php/mortgage-rates. Those looking to refinance and take advantage of historically low rates may contact the lender by calling 888-344-4080.