Chris Nooney

The Nooney Team

Advice For Purchasing A House On A Single Income

Advice For Purchasing A House On A Single IncomeEven though a lot of people have two incomes they can use to purchase a house (theirs and their partner’s), this is not necessarily required. There are lots of people who want to take advantage of current interest rates to purchase a house, and some people are trying to do it on their own. Even though it can be a challenge to buy a house with only one income, it is certainly not impossible. There are several tips that can make it easier for everyone to afford a house with just a single income. 

Always Check Your Credit Score

If you want to buy a house on a single income, make sure you check your credit score first. Your credit score is a reflection of your financial health. The higher your credit score is, the better your chances of having your loan application approved. You can check your credit score for free once per year from any of the major credit bureaus. You need to know what your credit score is and you need to correct any inaccuracies on your credit report before you apply for a home loan. 

Explore Government Loan Programs

Next, if you are buying a home for the first time, you should explore government loan programs. For example, you might be able to apply for an FHA loan, which could allow you to purchase a home for as little as 3.5 percent down. That way, you do not necessarily need to save up a 20 percent down payment to buy a house. Depending on your location, there could be other government loan programs that can make it easier for you to buy a house.

Ask For a Co-Signer To Help 

Even if you plan on paying for the mortgage yourself, you may find it easier to buy a house if you have someone who can co-sign for your loan. This is particularly helpful if your credit score isn’t quite high enough to qualify for a loan. As long as your co-signer has a solid credit score, they might make it easier for you to get your loan application approved. Furthermore, you might be rewarded with a lower interest rate than you could otherwise get on your own. 

 

Case-Shiller Home Price Indices: Home Prices Grow at a Near-Record Pace

Case-Shiller Home Price Indices: Home Prices Grow at a Near-Record PaceU.S home prices grew at a near-record pace in January according to the National S&P Case-Shiller Home Price Index; year-over-year home prices rose by 19.20 percent in January as compared to December’s reading of 18.90 percent. Home prices rose 1.80 percent on a month-to-month basis from December to January.

While home prices continued to grow at near-record rates, home price growth slowed in some areas during  December but picked up in January. Craig M. Lazzara, managing director at S&P Dow Jones Indices, said: “Last fall we observed that home prices, although continuing to rise sharply, had begun to decelerate. Even that modest deceleration was on pause in January.”

The top three cities for home price growth held their places in January. Phoenix, Arizona had the highest pace of home price growth with a year-over-year gain of 32.60 percent; Tampa, Florida reported a year-over-year gain of 30.80 percent. Miami, Florida held third place with a year-over-year home price growth rate 0f 28.10 percent.

All 20 cities tracked by Case-Shiller reported record gains in year-over-year home prices while 16 of 20 cities included in the 20-City Index reported higher home price gains in January than in December.

FHFA House Price Report Shows Strong Growth

The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, reported that home prices rose by 18.20 percent year-over-year in January. December’s year-over-year growth pace was 17.70 percent for homes owned by Fannie Mae and Freddie Mac.  Home prices rose fastest in the Mountain region, which includes Arizona, Colorado, Idaho, Montana, Nevada, New Mexico Utah, and Wyoming. Year-over-year home prices rose by 23 percent or more in the Mountain region.

Will Doerner, a supervisory economist at FHFA, said: “So far, the mortgage rate growth has not dampened upward price pressure from intense buyer demand and limited supply.” Low inventories of available homes continue to drive demand for homes, but some economists expect the pace of home sales to drop by as much as 25 percent in response to rising mortgage rates. Analysts expect that low inventories of available homes will sustain rising home prices. Homebuyers can expect to compete for available homes as buyers rush to lock in lower mortgage rates; cash buyers and bidding wars can cause home prices to rise above market value in high-demand markets.

How To Transfer The Funds To Buy A House

How to Transfer Funds to Buy a HouseIf you have made an offer on a house and gotten it accepted, congratulations! This is a major step, but you might be wondering how you actually pay for a house. The days of showing up to the closing table with a personal check are in the rearview mirror, as nobody wants a check for a house to bounce after the other person has already walked away with the keys. Furthermore, even if you are buying a house with cash, you certainly do not want to show up with a briefcase full of dollar bills. Here is how you will actually pay for the house. 

Wire Transfer To The Closing Attorney

When you purchase a house, you will send the funds for the down payment and the closing costs to your closing attorney. Typically, the seller has a preferred closing attorney they want to use, and you should be contacted by the closing attorney several weeks before the closing date. They will also give you a finalized document specifying exactly how much money you need to wire to the office to cover the down payment, any fees, and the closing costs. You will also need to go to your bank to arrange the wire transfer. The bank will also verify you have enough money in the account to cover the expenses. 

Monthly Mortgage Payment Gets Drafted Automatically

If you are financing the purchase of a house through another lender, you will need to set up an automatic draft payment with the lender. Even though there are some lenders who will allow you to send a physical check every month, most will encourage you to set up an automatic draft payment out of your checking account. After the sale closes, you will typically have at least one month before you need to make your first mortgage payment. The lender will help you arrange the mortgage draft payment prior to that time. 

Make Sure To Wire The Money Prior To Closing

You should try to wire the money to the closing attorney before the closing date. That way, you will offer any hiccups along the way. If you don’t wire the money in time, the sale could fall through, which can create complications you would rather avoid.

Pursuant to the requirements of Section 157.007 of the Mortgage Banker Registration and Residential Mortgage Loan Originator License Act, Chapter 157, Texas Finance Code, you are hereby notified of the following: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. © 2021 Draper and Kramer Mortgage Corp. All Rights Reserved.
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Christopher James Nooney (NMLS ID # 179371 (www.nmlsconsumeraccess.org) TX:179371) Roger G Ryman Jr. (NMLS ID # 180704 TX:180704) Michele Domenico Zugheri (NMLS ID # 179379 TX:179379) are agents of Draper and Kramer Mortgage Corp. (NMLS:2551) an Illinois Residential Mortgage Licensee located at 1431 Opus Place, Suite 200, Downers Grove, IL 60515, 630-376-2100. TX: Draper and Kramer Mortgage Corp. NMLS ID 2551.

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