Foreclosures in U.S. Decline 4%, FHFA
When looking at foreclosures in April 2010 vs. 2011 we noticed at 4% decline in foreclosures.
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Successful Steps for Obtaining a Mortgage
There are a variety of factors which will determine whether or not you qualify for a mortgage. It is important to starting thinking of these factors as early as possible as they are all within your control.
1. Improve your credit score
The lender needs to know how likely you are to make the mortgage payments every month. Usually, the lower your credit score, the higher your interest rate will be (for increased risk). Some suggest, if your credit score is below 620, you will be considered subprime and will have difficulty getting a loan. On the other hand, generally if you have a credit score above 800, you may be easily be able to get the best interest rate available (also known as the par rate).
2. Sufficient and stable Income for size of the loan
It is important to have a stable job at which you can support the loan and monthly payments. Lenders generally like to see a steady employment history and it helps if you stay within the same line of work or industry. Overall lenders are looking for you to have long-term income stability rather than short term fixes.
3. Saving for the down payment
This is very important as the larger the down payment the smaller the loan you will need. You should also be aware you may have to reach a certain down payment like 10% or 20% in order to qualify.
4. Reduce your debt
When lenders are looking at your debt they aren’t necessarily looking at an overall number but rather the total monthly debt payments. The lenders need to know that even with your total monthly debts you will be able to consistently afford your mortgage payments as well. Decreasing your debt is one of the fastest and effective things you can do you increase the size of the loan you’re eligible for.
On the flip side, perhaps now is not the right time me for you to invest in a mortgage. Michele Lerner, Investopedia.com, highlights Nine Signs You Aren’t Ready for a Mortgage. There may be a few adjustments need to take if you’re living paycheck to paycheck, and living beyond your means with no future financial planning. Managing financial issues can be quite stressful, however there are solutions to help you get back on the right track. It would be wise to talk to a financial planner or your mortgage broker about different options and a mortgage plan.
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Market Updates:
- TSX -30.32 to 13,389.42 (Reuters) came in a little lower as commodity prices clawed back some of the big losses after prices for oil and metals fell further in response to another move by China to have most of its banks (for the 5th time this year) increase the amount of money they hold in reserves to curb inflation after higher than expected price increases in April.
- DOW +65.89 to 12,695.92 Improving commodity prices also pushed New York markets higher
- Dollar -.13c to 103.92c USD
The Canadian dollar was also well off early lows, as the U.S. dollar lost some strength.
- Oil +$.76 to $98.97USD per barrel
Commodity prices have been dropping for more than a week amid higher margin requirements and worries about weakening global economic conditions. Oil had plunged as low as US$95.25 following a warning from the International Energy Agency that higher crude prices are hurting demand in the United States. Preliminary March data suggest near zero annual growth in global oil demand for the first time since the summer of 2009 and could cause an anaemic U.S. driving season.
- Gold +$5.40 to $1506.80 per ounce
- Canadian 5 yr bond yields markets +.01bps to 2.55. The spread (based on the NEW MERIX 5 yr rate published rate of 4.19%) is closer to the comfort zone at 1.64. At the other end, the spread on the new 5yr Unpublished special of 3.89% is 1.34, well below the comfort zone.
