VIDEO: How to Qualify for a Mortgage – Your Questions Answered! originally appeared on House of Style Blog - Charter Homes & Neighborhoods on May 14, 2012.

Interested in buying your first home, but not sure how to qualify for a mortgage? We’re here to help. We’ve compiled a list of frequently asked questions from new home buyers just like you looking to achieve home ownership and be approved for their first mortgage.

Curious about how to qualify for a mortgage? See frequently asked questions.

How to qualify for a mortgage is by far the most frequently asked question we field from first time home buyers. Here are some basic steps that can help you understand how to qualify for a mortgage:

Do I need to check my credit?
Short answer: yes. One key step to getting your first mortgage is to understand your credit standing. By law, you can pull your credit reports from the three credit bureaus (Experian, Equifax and Transunion) for free once a year. Simply go to www.annualcreditreport.com and follow the instructions.
Once you have accessed your credit reports, you’ll know if there are any negative items that may impact your credit and your eligibility for your first mortgage. By taking steps to address any negative items on your credit report, you’re helping make yourself the best candidate for a loan you can be.

Can I afford the monthly payments on a mortgage?

When you buy your first home, you’ll want to make sure you can afford the monthly mortgage payments. As a general rule of thumb, the monthly mortgage payment for home buyers should be no more than a third of your household’s pretax income.

Your income includes:
•    Your salary/paycheck
•    Investment income
•    Alimony/Child Support you receive

When you apply for your first mortgage, your lender will look at how much income you receive versus the amount of financial obligations you have. This is called the debt-to-income ratio. The lower that ratio, the more likely it is that you can qualify for a mortgage.

Financial obligations can include:
•    Credit Card Payments
•    Car Payments
•    Alimony/Child Support
•    Student Loan Payments
•    Other Debts

Do I need to save money for a down payment?
If you are able to save money for a down payment, that’s great! Having money to put down on a house will reduce your monthly payments and expands the range of lending programs that you can qualify for.

Can’t find room in your budget to save? That’s okay too – many of our neighborhoods like Deer Run Commons, Highlands, Florin Hill and Windsor Meadows are eligible for a lending program that allows home buyers to purchase a home with no money down and $0 in closing costs!

Okay, so I think I can qualify for my first mortgage. What’s a good next step?
Now that you understand the basics of how to qualify for a mortage, visit one of our model homes! Our neighborhood sales managers can walk you through a free basic prequalification* process. At the model, you’ll discuss your general financial situation which will help you understand how your monthly income and financial obligations stack up – and how much home you can afford.

The Bottom Line…
By walking through the basic steps of how to qualify for a mortgage, you’ll understand if you can qualify for a loan. If, in the end, you can’t qualify, you’ll have a better understanding of what steps you can take to prepare yourself for home ownership – and that’s a good thing!

*Charter Homes & Neighborhoods is not a lender. Our advice concerning first mortgage eligibility should not replace the advice of a mortgage professional.

How to Qualify for a Mortgage – Questions from Home Buyers originally appeared on House of Style Blog - Charter Homes & Neighborhoods on April 23, 2012.

We’ve shared the benefits of home ownership with you before – from avoiding costly rent increases to enjoying tax benefits to locking in a record low 30 year fixed rate, home ownership is a savvy financial decision. Many first time home buyers are nervous about their ability to afford a new home and the monthly payments that come with it. However, the case for home ownership has never been stronger – see what we mean below!

#1. Borrowing has never been more affordable.

Today more than ever, the benefits of home ownership are clear: with both the 30 year fixed rate near 3% and inflation at 3%, the amount a home buyer will pay to borrow money has never been closer to zero! Think of it this way:

A 3% inflation rate means that $1.00 today buys the same amount of stuff as $1.03 one year from now.

A 3% mortgage rate means that for every $1.00 you borrow today, you’ll owe $1.03 one year from now.

Starting to see a pattern? Essentially, the 30 year fixed rate a home buyer can lock in today is so low, it’s like borrowing $1.00 today only to give back the equivalent of $1.00 in a year – the closest to “free money” we’ve seen in recent history.

Don’t take our word for it, though – there are a lot of very smart people out there who agree that the time for home ownership is now! For example, legendary investor and billionaire Warren Buffett recently shared this take on home ownership:

“If I had a way of buying a couple hundred thousand single-family homes, I would load up on them.”

The Wall Street Journal’s Smart Money blog agrees with Warren Buffett’s take:

“Two key measures now suggest it’s an excellent time to buy a house as a long-term residence…First, the nation’s ratio of house prices to yearly rents is nearly restored to its pre-bubble average, suggesting the financial advantages of home ownership once again await buyers. Second, when ultra-low mortgage rates are taken into consideration, houses are the most affordable they’ve been in four decades of data.”

#2. Rent increases mean that home ownership is much more affordable in the long term.

Rapid rent increases are occurring across the country – while purchasing a home locks in one, regular payment. In fact, a recent study by Marcus and Millichap stresses the importance of understanding the reality of the market vs. perception.

Many prospective homebuyers believe that remaining in a rental situation is a cost effective solution. However, based on this current study, they may find that the long-term cost far outweighs that of a purchase.

The study examined the significant rise seen in the cost to rent from 2009 to 2011. Marcus and Millichap also project that rental prices will continue to climb through 2013. This visual (courtesy of Better Homes and Gardens Real Estate) illustrates just how quickly rent increases have occurred in the past several years:

What’s more, the financial benefits of locking in a monthly payment with a 30 year fixed rate make home ownership an even better decision. Just look at these figures from Forbes:

“A homeowner with $1,500 monthly payments would still be writing the same check fifteen years later while prices everywhere increase around them. If rents . . . simply kept up with inflation at a 3.2% annual increase, a $1,500 rent payment would cost that renter nearly $900,000 over the next 30 years.  The same $1,500 payment made to their mortgage would be only $540,000 (because the payments don’t increase with inflation) and of course would end with a final payment.

Tired of rent increases? Want to lock in an incredibly affordable monthly payment at today’s record low 30 year fixed rate? Give us a call today at 800-325-3030 to find out how to take the next steps toward home ownership.

Home Ownership – Why It’s Time to Take the Plunge originally appeared on House of Style Blog - Charter Homes & Neighborhoods on March 16, 2012.

You’ve heard it from us, and you’ve heard it from a recent homebuyer at Walden Crossroads:

There has never been a better time to buy a home.

Now, hear it straight from the mouths of two Realtors who just sold Charter Homes!

Chuck Gilmore, Realtor with Howard Hanna: Chuck just helped a couple purchase the final home at Bella Vista. Here’s what he has to say about why now is the time to buy: “I’ve been around almost 40 years and when you compare the affordable prices, this buyer’s market and the low interest rates, you’ve just never seen them all combined at once. Historically, we’ve never had such a great combination of affordable homes and interest rates. It’s almost like free money.”

Chuck just helped a couple purchase the final home at Bella Vista!

We couldn’t have said it better ourselves! To find out how you can take advantage of this great opportunity to own a home, contact us at 800-325-3030.

Realtors Agree: Now is the Time to Buy a Home! originally appeared on House of Style Blog - Charter Homes & Neighborhoods on August 25, 2011.

We are excited to welcome first time home buyer Audrey H. to our Walden Crossroads community. Rather than tell you why we think that it’s a great time to buy a new home (and we do!), here’s Audrey’s perspective as a new, first time home buyer:

Audrey H. shares why it's a great time to buy a home!

Why is now the right time to buy a home?

“Interest rate and affordable payments were a huge deal for me – it has made purchasing a home very affordable. Plus, it’s much nicer to own your home than to rent something. There’s also great tax advantages – and you can make it your own place and it feels like home. No more worrying about nail holes in the walls from hanging pictures!”

Why did you choose to purchase from Charter Homes?

“I think that Charter’s communities are nicer looking than other builders, and I really like the quaint feeling – it feels more like a community than other neighborhoods that I’ve seen. I enjoy the details Charter puts in – I really noticed the small details in the neighborhoods, like the cobblestone curbing.

“I enjoy the details Charter puts in – I really
noticed the small details in the neighborhoods,
like the cobblestone curbing.”

I also loved the location of Walden Crossroads – it was so close to my new job in Camp Hill. I really love the TerraPark – I think it’s very cute and I am excited to use the fitness center. I love being able to walk around the neighborhood and have a great view of something other than just homes and buildings.”

Why did you decide to purchase a new home rather than a resale?

“I didn’t want to have to do any remodeling or updating – it’s a hassle. It was the satisfaction of owning a nice home and knowing I won’t have to put money into remodeling, combined with interest rates that made it the right time to buy a new home.”

If you’re looking to take advantage of today’s great mortgage rates and find your new home, call us at 800-325-3030 or contact us here.

Our Home Buyers Share: Why It’s Time to Buy a Home originally appeared on House of Style Blog - Charter Homes & Neighborhoods on August 25, 2011.

You’ve heard us say that there’s never been a better time to purchase a new home due to incredibly low mortgage rates and great home prices. We’re not the only ones who think so – just check out the excerpts below!

CNN Money

“It’s now cheaper to buy a two-bedroom home than to rent one
in most major U.S. cities . . . rock-bottom interest rates
have added a lot of weight to the buy side of the scale”

via CNN Money

National Housing Survey via Keeping Current Matters

“Top Reasons People are Buying a Home:

• It means having a good place to raise children and provide them with a good education
• You have a physical structure where you and your family feel safe
• It allows you to have more space for your family
• It gives you control of what you do with your living space (renovations and updates)”

via Keeping Current Matters

Mortgage Bankers Association

Mortgage Applications are up this week due to the historically low interest rates:

“Mortgage applications increased 21.7 percent from one week earlier…”

via MBAA

Fox Business

“Mortgage interest rates are currently at historic lows, and home prices have been low lately as well. If you’re in the market for a new home, it’s a smart idea to take advantage of the best mortgage rates and low home prices.”

via Fox Business

We couldn’t have said it better!

To find out more about this great opportunity, call us at 800-325-3030 or explore our neighborhoods at charterhomes.com/neighborhoods.

The Good News Keeps On Coming! originally appeared on House of Style Blog - Charter Homes & Neighborhoods on August 16, 2011.

A recent article by John Burns Real Estate Consulting highlights an important fact for homebuyers:

Buyers who are waiting to buy a home are risking being “priced out” of the market.

Rising mortgage rates and tightening mortgage standards will make it more expensive for home buyers to purchase a home – even if “purchase prices” go down.

The Lowdown:

Currently, monthly payments for your new home purchase are at fantastic lows – but rising mortgage rates mean these lows will be short lived!

Just think: if mortgage rates go up by only 2%, your monthly payment on a $200,000 home will increase by 25%. Take a look:

Are you pricing yourself out of the market by waiting for the “perfect time” to buy? Find out more about great financing opportunities by visiting our preferred lender, Eaton Mortgage.

It’s About Payment, Not Price! originally appeared on House of Style Blog - Charter Homes & Neighborhoods on August 3, 2011.