Scott Miller's Blog
When you plan on getting a mortgage, you have some choices. There are conventional, FHA, VA and other options. One term you'll likely hear is a conforming or a non-conforming loan. If you aren't sure what that means, you could end up confused about the kind of loan you're actually getting for your property. To protect your investment and your finances, make sure you understand your loan type. Here's what you need to know about conforming loans.
What Are Conforming Loans?
Conforming loans are generally what most people think of as conventional or traditional loans. They're what most banks and other lenders offer to the majority of borrowers when those borrowers need a mortgage. The reason they're called conforming loans is that they meet federal guidelines for Fannie Mae and Freddie Mac. These are two agencies that buy the loans from the bank. Being able to sell the loan to one of these agencies is a benefit to the lender.
Who Can Receive a Conforming Loan?
Anyone who meets the qualifications -- and chooses a property that also qualifies -- can receive a conforming loan. Typically, to be conforming the loan has to be under a set dollar amount. For single-unit properties, for example, that limit was $484,350 as of 2019. If you want or need a mortgage bigger than that on a single-family home, you'd have to choose a nonconforming loan.
You'll also need a credit score of at least 620 (this may need to be higher based on your down payment and other factors), a debt-to-income ratio below 36 percent (or 45 percent for some loans) and private mortgage insurance if you don't have a 20 percent down payment. You'll also need to be 18 or older and have proof of income and identity.
Why Would You Choose This Loan Type?
Most people don't really choose this type of loan. It's just the one that's typically offered to them. It's the most common loan type, and it works very well for the majority of people. Lenders will often assume that this is the kind of loan you want, but there's no harm in asking them if another type of loan would be a better fit for your real estate needs.
How Can You Get This Kind of Loan?
As long as you meet the qualifications, you can get this type of loan. There aren't any special requirements, such as being a veteran or purchasing a property in a specific area of the country. Most people who apply for a conventional mortgage to buy a primary residence will have a conforming loan, because it's used most often and easier for banks to work with. Choosing this kind of loan is often easier for everyone involved.
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In a seller’s market, you shouldn’t have a home that’s simply sitting there. If a home isn’t selling and the market is hot, something must be wrong. There are many different reasons that your home isn’t selling. Below, you’ll discover some of those issues and what you can due to remedy the problems.
You Need To Adjust Your Expectations
Many people put their homes on the market expecting high results. While it’s good to have confidence, it can be detrimental to your home sale. Great expectations can lead to an overpriced home, a lack in marketing efforts, or lowering the price of the home too late. All of these situations can be detrimental to your home sale. Research and hiring a realtor to help you with the sale can keep you organized and assist ou in staying on top of the market.
You Don’t Understand Home Values
If you’re selling your home on your own, you may not have priced the property correctly especially if you have no professional experience. This is where a realtor comes in. A real estate agent can do the professional market research that finds the sweet spot for a price on a home for sale. Knowing that price is one of the best ways to sell your home fast. Without a well-valued home, it could sit idle in a good market.
Your Home Is Neglected
If you have been neglecting various projects around your home, you could find that it’s more difficult to sell your home. Buyers want the best house for the lowest possible price. Homes that have been properly maintained with the right HVAC maintenance, yard upkeep, and regular appliance services are more likely to be scooped up fast by buyers.
Before your home even goes on the market, you should do any tasks around the house that you have been neglecting. The investment of both time and money will be worth it for you in the long term when you go to sell your home.
The Photos Aren’t Professional
The marketing efforts used to sell a home are very important. On the top of this list is the photos that represent the house. Most home buyers begin their search online. This means the first impression that they get of your home is from pictures. If these are not well done, it could be very detrimental to your home sale.
For good photos, be sure that you get rid of all the clutter from your space before the pictures are taken. It’s really best to hire a professional to deal with his aspect of home marketing. If you must take the photos on your own, using a better camera than that a cell phone provides can really be a step up in the picture taking process.
Household clutter is an insidious problem in many homes because it happens gradually and you may not notice it until it actually infringes on your living space and begins degrading your quality of life. As is the case with many problems, the first step to solving it is to recognize that you need to do something about it.
Clutter can assume many different forms in your house, but the effects are always negative. Whether you need to eliminate clutter in one room or your entire house, tackling the problem always results in a feeling of relief and accomplishment. By taking it one step at a time and focusing on the benefits of reducing clutter, you'll be able to create a positive "ripple effect" in your mind, your family relationships, personal productivity, and other aspects of your life.
Improved efficiency: Everyone knows the frustration of not being able to find something you're looking for. It's problem that may happen with increasing frequency when you're surrounded by clutter. By taking the time to sort through a cluttered closet, cabinet, garage, basement, or bedroom, you'll be able to eliminate junk, regain lost storage space, and find useful things that you forgot you even owned! When you discover belongings that your family has outgrown or stopped using, you can free up valuable space by either selling, donating, or throwing away unwanted items.
Psychological benefits: A room or home that feels cramped, cluttered, or disorganized is not at all conducive to relaxation, smooth family relationships, and feelings of contentment. If you're even a little embarrassed about the way your home looks, for example, you'll be less likely to invite family and friends over to your house. One of the benefits of actually planning a family gathering or dinner party at your home is that you'll be motivated to organize, clean, and straighten up many areas of your home -- everything from your kitchen and bathrooms to your living room and family room. Also on the plus side: Having a feeling of pride about the appearance and decor of your home is not only personally satisfying, but it can also benefit your social life!
Inspiration: Once you've reorganized your furniture, where needed, and created a more spacious feeling in your home, you'll often feel more motivated to apply a fresh coat of paint to scuffed walls, organize bookshelves, or replace old draperies with new window treatments. One thing leads to another. When you see what a difference a few household improvements can make to the look and feel of your home, you'll be inspired to find more ways to enhance your living space. With any luck, other members of your family will also be inspired to help keep the house looking neat, well organized, and clutter free. While you shouldn't expect any miracles or sudden transformations, remember: Rome wasn't built in a day!