Blog | Guardian Capital


What First Time Home Buyers Should Know

Posted on Sep 8, 2017 in Blog

What First Time Home Buyers Should Know When you are buying your first house, it is extremely exciting to know you are about to become a part of the world of ownership. There are some things you should already know when you beginning looking for a home to purchase. One of the very first items you need to identify is if it is a buyer or a seller’s market. If it is a seller’s market, like it is currently, home prices are going to be higher. Conversely, if it is a buyer’s market then home prices will be lower and you can get more for your money. Having this information will help you to know what you will be able to afford, and how much house you can get for your budget. Once you have figured out this information, there are a few more things to consider before you are ready to buy. Realistic Expectations Television shows have misled a lot of first time home buyers into thinking the process is super quick, super fun, you “find most everything you want”, and non-exhaustive. This is a complete and far stretched exaggeration of the truth. Finding your first home can be a long and extremely frustrating process due to the multiple variables. Know that it may take time to find what you are looking for. Pre-Approval It can make your search process much easier if you know how much you are actually approved for before you start looking. This will help with not wasting time on a home you cannot afford, and lessen the heartbreak if the home you love is out of your price range. Rejection When it is a seller’s market, sellers can pick and choose who they want to sell to; competition is tight, and unfortunately for first-time home buyers their first offers usually don’t get accepted. There is a lot to do to prepare yourself to purchase a home, but the most important thing you can do is arm yourself with knowledge and...

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Everything You Need To Know About A Reverse Mortgage

Posted on Aug 18, 2017 in Blog

Everything You Need To Know About A Reverse Mortgage When you buy a house, it accumulates equity depending on its location and the market factors. Usually, you will only gain access to this equity when you sell your property. A reverse mortgage is a facility from your lender that allows you to turn that equity into cash while you still live on the property. If you have any pending loan from the mortgage, you can offset it against the total amount received. This way, you will be loan-free, but you will still have other obligations as per the Federal Housing Administration (FHA). Reverse Mortgage Eligibility You will need to be 62 years or older to qualify for a reverse mortgage. You will also need to show satisfactorily that you can meet the monthly expenses for property taxes and insurance. You must own the property as your primary residence and have a plan to keep living in it. Seeing as any pending balance will be offset against the income from the reversal, your pending balance should be relatively small. The amount you will get from a reversed mortgage will depend on a few factors. It will be determined by the age of the youngest borrower living in the house at the time of the loan, or the age of an existing non-borrowing spouse. Another determinant will be the lesser amount of the home’s appraisal compared to a limit set by FHA. The last determining factor will be the current interest rates. How To Receive The Payments You can choose a number of options that the lender will use to distribute the payments. First, you can opt to get a lump sum after offsetting any pending mortgage payments. Other methods include: You can choose to receive a fixed amount of money for a specified period. Open a line of credit. Receive equal payments on a per month basis for as long as one of the borrowers lives in the property. Combine a line of credit with a fixed monthly...

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Tips on How to Stay Afloat with Your New Home Loan

Posted on Jul 12, 2017 in Blog

Tips on How to Stay Afloat with Your New Home Loan Buying a home is a nice thing, at least you own a property and have realized one of your top dreams. While finding the home is a step forward, there is the difficult part of financing it. You want to choose a home loan that you can pay and won’t create a financial burden. These tips can help you stay in line with your loan repayment plan and ensure you own your home to the end: Have a Down Payment Start to prepare for a financing option in buying your home. You can save some money for a down payment. This gives you the ability to reduce the amount you borrow. It also determines your loan term and the amount you have to pay every month. Check the Mortgage Pricing You will find that mortgages are not the same. You may have loans that attract the same interest rates, but there could be fees and other expenses that can make a home loan expensive. Get to understand the components of each mortgage. You can compare different offers to see that you get a manageable offer. Understand the Loan Options Just because your friend has opted for an adjustable-rate loan, it does not mean that is the best option for you. You can consider the 30-year fixed-rate loans, but that should depend on your financial situation. So, you need to understand the type of loan that will suit your financial needs. Watch over Your Credit One thing you need to observe is that you take care of your credit when applying for a loan. Creditors may decide to get your credit report for a second time just to see if there are changes. Anything you do that brings you credit score down may impact on your ability to get a mortgage. During that time, make sure you pay your bills and refrain from applying for new credit cards. Don’t take another big loan like a car loan until you have the home loan closed. Do you need a loan to finance your new home? You can work out things with Guardian...

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How to Improve Your Credit Score

Posted on Jun 23, 2017 in Blog

If you are struggling to bring up your poor credit score, it can be easier than you think. It might take some time to get your credit score to where you would like it to be, but there are steps to take to get you there. Here are a few tips on how to improve your credit score. Try some of these tips and you will reach your credit score goals in no time. Don’t Use All of Your Available Credit One sure way you can improve your credit score is to be sure you aren’t using the entire allotted amount of credit available. Most credit cards will offer you a high line of credit, but that doesn’t mean you should use it. It is recommended that you use no more than thirty percent of the credit limit that is available to you in order to improve or maintain a good credit score. Pay off Your Debts Another way you can improve your credit score is to pay off all of your debts as soon as you can, particularly your credit card debt.  Your score will improve if you only have one or two cards with balances rather than having several cards with small balances. This is because part of your credit score is contingent upon how many credit cards you have. It just makes more sense you have one or two cards that you can use rather than several cards with so many balances to pay off. Consider paying some of the smaller amounts off or transferring the balances onto one card. Always Pay Your Bills on Time   You can also improve your credit score by paying your bills on time. This shows that you are reliable and on time with your...

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Tips for Finding the Best Interest Rates

Posted on May 12, 2017 in Blog

Tips for Finding the Best Interest Rates It is not always easy to find the best interest rates. They can fluctuate dramatically within a short period of time. However, there are some tips you can use to find the best rates in the market. Have Reserves Your lender needs you to have emergency funds or assets that can be sold quickly. This is to guard from having unexpected expenses that could force you to defer your house payments. You need a minimum amount of reserves to qualify for a mortgage. You need to have enough reserves to avoid complications that could be triggered by your lender’s requirements. You may be forced to start from scratch if your lenders reserve requirements cannot be complied with. Down Payment Most people believe that you have to place a down payment. This depends on the program or the lender. You can get a mortgage with a down payment that is as low as 3 percent and in some cases no down payment at all. The Department of Veteran Affairs has loan guarantees that require no down payments. The Navy Federal Credit Union offers loans with no down payments for qualified members who are looking to buy a primary home. Also the Department of Agriculture has 100 percent financing for first time buyers in eligible areas. Live Within your Means Ensure that monthly payments are within what you can afford to comfortably pay. Avoid stretching it to the limit with the hope that your income will increase in the next few years. You can calculate your monthly debt obligations including your house payment, if exceeds 36% of your income you may be going beyond your limits. Use the Internet You can get better rates by shopping for lenders online. It is more competitive online and you are more likely to get a better rate than with a brick and mortar...

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Things You Need to Know Before You Sign Up for Refinancing

Posted on Apr 23, 2017 in Blog

Mortgage refinancing can be a useful facility that you can use to improve your financial situation. You can potentially save hundreds of dollars a year simply by choosing mortgage refinancing. However, there are things you need to consider before you go for this option. Hidden Fees and Penalties Some refinancing packages may penalize you and charge you hidden fees that you were not aware of. Some financiers can penalize you for using your home equity credit. Take time to read the fine print before you sign any refinancing agreements. Breaking Even Refinancing allows you to pay lower monthly payments for your mortgage. One of the most important considerations you need to make is how soon you’ll regain the cost of refinancing with the new monthly payments. Often the new loan will have a longer term that your previous one. There is no set rule as to how long it should extend. However, experts advise people seeking refinancing to ensure it remains within a 36 months period. Find a Specialist Many people see a financial or legal specialist as an additional cost. Indeed there are many situations including those that are related to refinancing that do not require the services of an expert. However, when you are looking at options for refinancing you may want to consult an expert. Most people do not know and are not made informed by the bank of the many refinancing options available in the market. Professional Assistance An expert can help you Identify specific issues that tend to plague refinancing. Such issues include hidden fees and penalties. A professional who is conversant with this type of financing can identify some of the pitfalls and avoid them. Additionally, if you do not understand the financial and legal lingo in some of the documents you may sign up for something that you’ll regret...

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