Home buying

Months ago, BBVA USA Head of Mortgage Murat Kalkan spoke on a variety of topics regarding the mortgage sector - and in part spoke about millennials and their changing patterns toward homeownership.

BBVA recently enhanced its slate of programs designed to help more people with homeownership, announcing that it is now offering additional closing cost assistance for low-to-moderate income (LMI) borrowers that qualify for FHA or VA home loans.

For many Americans, their home is their greatest source of wealth. It is for this reason — and many others — that the housing market has always been an extremely important part of the U.S. economy. What's more, studies have shown time and time again homeowners are more active in their communities, healthier and less likely to be victims of crime. Simply put, home ownership is good for our citizens, our communities and our country. Which is why over the years, the U.S. government has created programs designed to make homeownership accessible for more Americans.

Whether it’s your first home or your fourth, the whole mortgage process can be confusing and stressful… so many decisions to make, so much jargon to decipher, so many boxes to initial.

One simple word you may hear is “points”. It sounds like such a simple word, but do you really know what points are?  A point is technically one percent of your mortgage amount, or $1,000 for every $100,000 you finance.

When you’ve found the perfect house and the seller has accepted your offer, waiting to complete the home loan closing process - which can take around 40 days - can feel torturous.

Being self-employed doesn’t mean homeownership isn’t attainable. In fact, lenders are willing and able to loan money to the entrepreneurial minded. People who are self-employed and seeking to buy their own home simply need to be aware of a few more things.

Black Knight, Inc.’s latest Mortgage Monitor Report indicates that taken together, rising interest rates and home prices have affected housing affordability, resulting in a more than $100 increase in monthly payment on a 30-year mortgage used to purchase a median-priced U.S. home.

The “proptech” companies and the most innovative financial institutions are already offering services that improve the customer experience in the real estate sector.

When it comes to how much home you can afford, the answer is not always as cut and dried as the pre-qualification you receive from your lender, says BBVA Compass Director of Real Estate Originations Jose Pascual.

Pascual says that lenders do their best with what they’re given in order to pre-qualify customers for an affordable amount, but there are considerations outside their purview that borrowers should also consider.

The agreement reached with Metrovacesa Suelo y Promoción (hereinafter Metrovacesa S.A), in which BBVA holds a stake, represents a significant step forward in the bank’s real estate strategy.  BBVA participated in a non-monetary capital increase, together with the other shareholders, through which the bank will transfer high-potential land holdings intended for housing developments valued at €431 million.

Little by Little, big data is making a place for itself in day-to-day life in its use in processes that have become almost essential. One example of this is the success of the BBVA Valora tool that allows anyone to know the best price at which to buy or rent a house. Since it was launched in September, the tool has received over 500,000 hits, half of which by non-BBVA customers, which shows its widespread acceptance.

BBVA Compass volunteers fanned out in 27 cities over 24 hours this summer to spread their expertise and a message of financial empowerment.