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11
Feb
By Fred Gruber
Home Mortgage Tips

Avoid These Costly Mortgage Mistakes

Buying a home is one of the biggest financial decisions you’ll ever make. While it’s an exciting milestone, the mortgage process can be complex, and simple mistakes can cost you thousands of dollars or even derail your homeownership dreams. To ensure a smooth home-buying journey, here are some of the most common mortgage pitfalls—and how to avoid them.

1. Overextending Your Budget

It’s tempting to fall in love with a home that stretches your budget, but committing to a mortgage that’s beyond your financial comfort zone can lead to long-term stress. Lenders may approve you for a higher loan amount than you expected, but that doesn’t mean you should max out your budget.

2. Neglecting to Shop Around for a Mortgage

Not all mortgage lenders offer the same interest rates, fees, and loan terms. Many homebuyers make the mistake of accepting the first mortgage offer they receive, potentially overpaying in interest over the life of the loan.

3. Making Major Financial Changes Before Closing

Lenders carefully assess your financial situation before approving your mortgage. Any major financial moves—such as changing jobs, taking on new debt, or making large purchases—can impact your loan approval..

4. Skipping the Mortgage Pre-Approval Process

Some buyers jump into house hunting before securing mortgage pre-approval, only to find out later that they don’t qualify for the home they want. Without pre-approval, sellers may not take your offer seriously, especially in a competitive market.

5. Failing to Factor in All Homeownership Costs

Your monthly mortgage payment is just one part of homeownership expenses. Some buyers overlook costs like property taxes, homeowners insurance, HOA fees, and maintenance, which can add up quickly.

6. Ignoring Your Credit Score

Your credit score plays a crucial role in determining your mortgage rate and loan approval. Some buyers assume their credit is good enough, only to face higher rates or unexpected loan denials due to errors or unresolved issues..

Work With a Trusted Mortgage Professional

Avoiding these common mortgage mistakes can make your home-buying experience smoother and more affordable. The best way to navigate the mortgage process is to work with a knowledgeable mortgage professional who can guide you every step of the way.

If you’re ready to start your homeownership journey, contact me today. Let’s ensure you make informed decisions that set you up for long-term success!

10
Feb
By Fred Gruber
Financial Reports

What’s Ahead For Mortgage Rates This Week – February 10th, 2025

Last week’s reports were plentiful, but few had a greater impact on the lending and broader markets. The most significant among them were the Nonfarm Payrolls, Consumer Credit, and Consumer Sentiment reports. 

Currently, considerable movement within the government administration is contributing to widespread uncertainty and instability across various markets. Additionally, the recent outbreak of Avian Flu has driven poultry prices sharply higher, further adding to consumer unease. This uncertainty is reflected in the Consumer Sentiment reports, which have seen their most significant decline since July, as inflation concerns intensify.

Meanwhile, Consumer Credit data came in worse than expected, while job reports exceeded expectations. Given these factors, we should anticipate continued uncertainty in the weeks ahead.

Consumer Credit

Total consumer credit rose $40.8 billion in December, after a $5.4 billion decline in the prior month, the Federal Reserve said Friday. In percentage terms, it is the biggest gain since June 2022. Revolving credit (typically credit-card debt) made up most of the increase, rising at a 20.2% annual rate. That follows a 12.1% drop in the prior month.

Consumer Sentiment

Consumer sentiment drops sharply in February as inflation worries soar. Sentiment gauge falls to 67.8, the lowest reading since July. The University of Michigan’s gauge of consumer sentiment fell to 67.8 in a preliminary February reading, down from 71.1 in the prior month and the lowest reading since July.

Unemployment

Turns out the U.S. labor market really did perk up toward the end of 2024, a fresh government update shows. And that means Federal Reserve rate cuts are likely far off. The number of new jobs created in December was raised to 307,000 from a previous 256,000. And November’s employment increase was lifted to 261,000 from 212,000.

Primary Mortgage Market Survey Index

• 15-Yr FRM rates saw a decrease of -0.07% with the current rate at 6.05%
• 30-Yr FRM rates saw a decrease of -0.06% with the current rate at 6.89%

MND Rate Index

• 30-Yr FHA rates saw a decrease of -0.07% for this week. Current rates at 6.39%
• 30-Yr VA rates saw a decrease of -0.07% for this week. Current rates at 6.41%

Jobless Claims

Initial Claims were reported to be 219,000 compared to the expected claims of 214,000. The prior week landed at 208,000.

What’s Ahead

Next week, the CPI and PPI reports will be released once again. With inflation expectations on the rise, there is even some speculation about a potential rate increase.

10
Feb
By Fred Gruber
Financial Reports

What’s Ahead For Mortgage Rates This Week – February 10th, 2025

Last week’s reports were plentiful, but few had a greater impact on the lending and broader markets. The most significant among them were the Nonfarm Payrolls, Consumer Credit, and Consumer Sentiment reports. 

Currently, considerable movement within the government administration is contributing to widespread uncertainty and instability across various markets. Additionally, the recent outbreak of Avian Flu has driven poultry prices sharply higher, further adding to consumer unease. This uncertainty is reflected in the Consumer Sentiment reports, which have seen their most significant decline since July, as inflation concerns intensify.

Meanwhile, Consumer Credit data came in worse than expected, while job reports exceeded expectations. Given these factors, we should anticipate continued uncertainty in the weeks ahead.

Consumer Credit

Total consumer credit rose $40.8 billion in December, after a $5.4 billion decline in the prior month, the Federal Reserve said Friday. In percentage terms, it is the biggest gain since June 2022. Revolving credit (typically credit-card debt) made up most of the increase, rising at a 20.2% annual rate. That follows a 12.1% drop in the prior month.

Consumer Sentiment

Consumer sentiment drops sharply in February as inflation worries soar. Sentiment gauge falls to 67.8, the lowest reading since July. The University of Michigan’s gauge of consumer sentiment fell to 67.8 in a preliminary February reading, down from 71.1 in the prior month and the lowest reading since July.

Unemployment

Turns out the U.S. labor market really did perk up toward the end of 2024, a fresh government update shows. And that means Federal Reserve rate cuts are likely far off. The number of new jobs created in December was raised to 307,000 from a previous 256,000. And November’s employment increase was lifted to 261,000 from 212,000.

Primary Mortgage Market Survey Index

• 15-Yr FRM rates saw a decrease of -0.07% with the current rate at 6.05%
• 30-Yr FRM rates saw a decrease of -0.06% with the current rate at 6.89%

MND Rate Index

• 30-Yr FHA rates saw a decrease of -0.07% for this week. Current rates at 6.39%
• 30-Yr VA rates saw a decrease of -0.07% for this week. Current rates at 6.41%

Jobless Claims

Initial Claims were reported to be 219,000 compared to the expected claims of 214,000. The prior week landed at 208,000.

What’s Ahead

Next week, the CPI and PPI reports will be released once again. With inflation expectations on the rise, there is even some speculation about a potential rate increase.

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