13
Oct
By Fred Gruber
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Mortgage

The LTV Ratio How Loan to Value Works and Why You Need to Understand This Ratio

Are you in the market for a new home? If you plan on using mortgage financing to buy your next home you’ve likely heard the phrase “loan-to-value” or the acronym “LTV” before. Let’s take a quick look at the loan-to-value ratio including why it’s important, how to calculate it, and how it can affect your mortgage.

What is the Loan-to-Value or LTV Ratio?
In short, the LTV ratio is a number that compares how much money you owe against your home with its resale value in the marketplace. A low LTV ratio indicates that you have far more equity in your home than you owe in mortgage payments; conversely, a high LTV ratio indicates that you owe almost as much as your home is worth.

Why is the LTV Ratio Important?
Your LTV ratio is important for a number of reasons. First, your mortgage lender will use this figure as part of their risk calculation when they assess your financial suitability for your mortgage. If you’re only putting 5 percent of the purchase price in as a down payment you’ll have an LTV ratio of 95 percent, which is a more risky loan than one with an LTV ratio of 30 percent and thus will almost certainly come with a higher interest rate.

While the LTV ratio might seem simple, this number can affect your mortgage in a variety of ways. Contact your local mortgage advisor today to learn more about the LTV ratio and to have your questions answered by an experienced professional.

05
Oct
By First Rate Financial Group
Mortgage

Simple Tips for a Stunning First Impression

Simple Tips for a Stunning First ImpressionThey say, “you never get a second chance to make a good impression”, and when it comes to your home, curb appeal is the key to making a lasting one. Enhancing the exterior of your house not only adds value but also creates a warm and inviting atmosphere for both you and your guests.

Here are some simple yet effective tips that will help transform your home’s exterior and make it the envy of the neighborhood.

Begin with a Welcoming Entrance: The front door is the gateway to your home, and a fresh coat of paint can do wonders to revitalize its appearance. Consider selecting a color that complements your home’s style and personality. Don’t shy away from bold choices that create a statement.

Revitalize the Exterior: The exterior walls of your house may benefit from a thorough cleaning or a fresh coat of paint. Pressure washing can remove dirt, grime, and stains, making your home look instantly refreshed. If you’re painting, choose a color scheme that harmonizes with the surroundings while accentuating architectural features. Take the time to inspect your home’s siding or brickwork for any necessary repairs, as addressing these issues promptly prevents further deterioration.

Beautiful Landscaping: A well-maintained and thoughtfully designed landscape can make a significant difference in your home’s curb appeal. Start by trimming overgrown shrubs and trees, removing weeds, and adding fresh mulch to flower beds. Incorporate a variety of plants that thrive in your climate, ensuring year-round color and texture. Consider planting flowers, installing window boxes, or hanging baskets to bring vibrancy to your windows and walls.

Upgrade Outdoor Lighting: Outdoor lighting not only enhances safety but also creates an inviting ambiance. Illuminate your pathways, porch, and landscaping with stylish light fixtures that match the architectural style of your home. Consider installing solar-powered lights to save energy and reduce maintenance. Strategically placed lighting can highlight focal points, such as trees or architectural details.

Pay Attention to Small Details: Don’t underestimate the impact of small details when it comes to enhancing your home’s curb appeal. Replace worn-out house numbers, doorbells, and mailbox to give your home a polished look. Upgrade your front porch furniture or add decorative elements like outdoor artwork or a porch swing to create an inviting space. Ensure that your gutters and downspouts are clean and in good condition, and consider adding window shutters or freshening up their paint.

Remember, the key to improving curb appeal is to create a visually appealing and well-maintained exterior. By implementing these tips and putting in some effort, you can significantly enhance the curb appeal of your property.

21
Sep
By First Rate Financial Group
Mortgage

Best Things To Do Now To Get Your Finances Mortgage Ready

Best Things To Do Now To Get Your Finances Mortgage ReadyYou probably already know that qualifying for a mortgage can be the biggest hurdle — aside from actually finding that dream property — along the path to home ownership.

Rather than agonizing about it, however, there are some positive actions you can take in advance to help you realize your dream.

Take A Close Look At Your Budget

If you don’t currently operate with a comprehensive household budget, get started now to analyze your income and monitor your spending habits. There’s no better way to prepare for home ownership than by being realistic about how you spend your money. If you don’t have a regular savings program, or if you’re constantly short on cash prior to the next payday, take steps to remedy the problem. Plan for the future by getting the present in check.

Gather Employment And Earnings Records

Mortgage lenders want to see stability and commitment. Finding and organize your employment records to show a consistent earnings pattern and, hopefully, a record of growth, both in terms of income and responsibility. Simplify the task of gathering required documents by collecting all records in a binder or notebook that can easily be copies when it’s time to submit them to a lender. It’s a confidence-building step as well.

Organize Your Banking Records

Lenders will not only want to see employment records, but they will require copies of all bank and investment accounts as well. Again, by being organized and getting a handle on your dollar inflow and outflow, you’ll gain insights into your individual spending habits and make the job easier for a mortgage specialist.

Make Copies Of Your Tax Returns

Tax returns confirm and validate all the other financial information that you will be required to supply. Typically, returns for the past two or three years will be required. If you own a small business or have income in addition to that from paid employment, make copies of those records as well.

Put A Halt To Spending

Perhaps the best way to demonstrate your serious intent to purchase — and pay for — a new home is by curtailing your spending on impulse purchases and expensive entertainment. This is not the time to buy a new car, book an exotic vacation, purchase major electronics or even home furnishings, or commit to time payments of any sort. Frugality should become your mantra in the months leading up to loan qualification.

Monitor Your Credit Cards

If your credit rating is within acceptable limits, do what you can to make all payments on time, pay down balances, minimize new purchases and demonstrate your continuing ability to “live within your means.” Do not apply for new credit cards, no matter how tempting the offers, because increased account activity can adversely affect your FICO score. In addition, if you have a blip on your credit report, do what you can to repair it prior to making a mortgage loan application, or be prepared to explain the circumstances, in detail and in writing.

Applying for a loan need not be scary; understanding the financial reality, however, is a great benefit.

Contact your trusted home mortgage professional who will be able to assist you in organizing your documents and aligning you with your best financing options.