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10 Tips When Applying for a Mortgage Loan

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10 Tips When Applying for a Mortgage Loan

1. Do not change jobs or become self-employed.

2. Do not buy a car, truck or van unless you plan to live in it.

3. Do not use your credit cards or let your payments fall behind.

4. Do not spend the money you have saved for your downpayment.

5. Do not buy furniture before you buy your house.

6. Do not originate any new inquiries on your credit report.

7. Do not make any large deposits into your bank account.

8. Do not change bank accounts.

9. Do not co-sign for anyone.

10. Do not purchase anything until after the closing.

Home Affordability Reaches New High In Q1 2012

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Home Affordability 2005-2012Falling mortgage rates and stagnant home prices are making a positive effect on home affordability nationwide. Never before in recorded history have so many homes been affordable to households earning a moderate annual income.

Last week, the National Association of Home Builders reported the Home Opportunity Index at 77.5 — its highest reading of all-time. The index indicates that more than 3 of every 4 homes sold last quarter were affordable to households earning the national median income of $65,000.

Last quarter marks the 12th straight quarter — dating back to 2009 — in which the index surpassed 70. Prior to this run, the index had never crossed 70 even once.

That said, like most real estate statistics, the Home Affordability Index has a national purview. National data is of little value to homeowners in specific cities such as St Paul , or in specific neighborhoods.

Last quarter, home affordability varied by region.

In the Midwest, for example, affordability was highest. 7 of the top 10 most affordable markets nationwide were spread throughout Ohio, Michigan, Illinois and Indiana. The top two spots, however, went to an East Region town (Cumberland) and a Pacific Northwest Region city (Fairbanks, Alaska), respectively.

The top 5 most affordable cities for home buyers in Q1 2012 were:

  1. Cumberland, MD (99.0%)
  2. Fairbanks, AK (98.9%)
  3. Wheeling, WV (97.0%)
  4. Kokomo, IN (95.8%)
  5. Indianapolis, IN (95.8%)

At #17, the Lakeland/Winter Haven, Florida area was the top-ranked South Region city last quarter.

By contrast, the Northeast Region and Southern California ranked among the least affordable housing markets — again. Led by the New York-White Plains, NY-Wayne, NJ area, 8 of the 10 least affordable areas were in the Mid-Atlantic and California, and for the 16th consecutive quarter the New York metro area was ranked “Least Affordable”.

Just 31.5 percent of homes were affordable to households earning the area median income there, up from 25.2 percent six months ago.

The rankings for all 225 metro areas are available for download on the NAHB website.

America’s 10 Richest Counties

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America's Richest CountiesThere are 3,033 counties in the United States. Which 10 are the richest in terms of median household income? Not surprisingly, those near major economic centers rank high.

In a study based on household income estimates from the Census Bureau’s American Community Survey, Loudoun County, Virginia captures the number one spot in America’s Richest Counties.

Loudoun County is a Washington, D.C. suburb and is home to Dulles International Airport, as well as a well-educated workforce.

The complete Top 10 list of America’s Richest Counties :

  1. Loudoun County, Virginia ($115,574)
  2. Falls Church City, Virginia ($114,409)
  3. Fairfax County, Virginia ($105,416)
  4. Los Alamos County, New Mexico ($103,643)
  5. Howard County, Maryland ($103,273)
  6. Hunterdon County, New Jersey ($100,980)
  7. Douglas County, Colorado ($99,198)
  8. Fairfax City, Virginia ($97,900)
  9. Somerset County, New Jersey ($97,440)
  10. Morris County, New Jersey ($96,747)

As a region, it’s estimated that 40% of the Washington, D.C. metro area economy can be attributed to federal spending. This helps explain why Falls Church City, Virginia; Fairfax County, Virginia; and Howard County, Maryland all scored high on the list. It’s also why Los Alamos ranked 4 — the largest employer in Los Alamos is the Los Alamos National Laboratory, one of the largest science and technology institutes in the world.

The New Jersey counties are popular commuter areas for homeowners who work in New York City.

As a home buyer in Minneapolis , the wealth of particular area may matter to you, but it won’t be the sole reason you purchase. You may have interest in a quality school district, or a vibrant nightlife, or a a high walkability factor, for example. Speak to your local real estate agent about the areas that matter most to you.

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