Author: super_admin

When it comes to the decision between buying or renting a home, in today’s market, we have to look at number of market and individual factors. With rapidly increasing housing prices and a significant inventory shortage, the thought of purchasing a home may seem daunting with the US Census Bureau and the US Department of Housing and Urban Development reported the median sales price of $436,800 for homes at the start of 2023. Buying a home brings with it a set of unique advantages. The possibility of building equity, the tax benefits, and the freedom to customize your living space are all compelling reasons to consider homeownership. However, these benefits are balanced by potential drawbacks such as variable monthly payments, maintenance responsibilities, decreased flexibility, and the risk of your home's…

For first-time homebuyers, purchasing a home is a huge financial commitment and in today's pricing environment its also a considerable financial challenge for many Americans. However, homebuyer grants can significantly lighten the financial load, grants aren't available to all home buyers and are usually aimed at lower income buyers. Understanding Grant Eligibility Requirements vary between programs, several common elements are worth noting: • Income limits: Many programs consider households that earn 80 percent or less of the area median income (AMI) as “low-income.” Therefore, access to these programs is restricted to those within this income range. Moreover, the income limits adjust depending on the number of household occupants. • Home price limits: Certain programs may restrict your spending to a specific range of residence prices. These limits are largely dependent…

Finding a skilled loan officer who is attuned to your needs and can assist you through the process is essential. Here are five questions you might want to ask your home mortgage lender. What are my home loan options? This question will help gauge the loan officer's expertise and understanding of your specific situation. You may need to share some personal financial information, but a credit check shouldn't be necessary at this stage. Could you explain the mortgage process? A competent loan officer should be able to outline the steps from application submission to loan approval. They should also provide insights into legal and real estate aspects or direct you to your real estate agent for further information. What do I need to provide for loan approval? Before submitting any…

There are numerous benefits to being self-employed - you're your own boss. However, when it comes to securing a mortgage, the process deviates slightly from traditional mortgages. It often involves additional requirements and more administrative procedures. Here are some tips to help you get organized and approved if you're self-employed. Apply for a mortgage when your income is high. We understand this is easier said than done, but lenders will focus most on your income from the last two years. If your income fluctuates, it's best to apply in a high-income year. This strategy can help you qualify for a larger loan amount and a lower interest rate. Lower your DTI. Your debt-to-income ratio is one of the critical factors in getting approved. Therefore, it's beneficial to pay down both…

With summer around the corner, a lot of people are asking if a swimming pool will add value to their home (to be clear, we are talking about in-ground pools here). The answer is, it depends. Studies show that it can add 5% or more to the value of your home, but these studies pre-date Covid. If you are in a warmer climate like Texas or Florida, pools can add more value and may be more desirable. In fact, if your home is in a high-end area where most homes have pools, lacking one can actually lower your home's value. Of course, you have to take into account the building and maintenance costs, as well as whether your yard has enough space to accommodate a pool while still leaving ample…

We all know that interest rates are higher than they were a year ago (and we all hope they don't stay that way). A product that is becoming more popular is a 2-1 buydown, which provides a lower interest rate for the first year of the loan, then increases in the second year, and the third and subsequent years will have the full interest rate. To compensate for the lower payments, a fee is charged. A buydown can be financed by either the homebuyer or the home seller. This payment can take the form of mortgage points or a one-time sum placed in an escrow account managed by the lender, which is then used to subsidize the borrower's reduced monthly payments. Often, sellers, including home builders, utilize 2-1 buydowns as…

When you apply for a mortgage you have to provide a lot of documentation, like bank statements, tax returns, and pay stubs. But sometimes, lenders also require a letter of explanation to better understand your financial situation. This letter can be essential in securing loan approval and should be treated as a requirement. It helps fill gaps in your financial picture and provides a deeper understanding of your ability to repay the mortgage. A letter of explanation is typically requested when specific information in your application raises a red flag for the lender. For example, it may be needed to explain a job change, past credit issues, new credit card applications, large bank transactions, or unsteady income sources. Proactively submitting a letter of explanation can be beneficial if you are…

If you are going to be getting a loan funded Fannie Mae or Freddie Mac there are new few changes coming on May 1. Upfront loan fees will be changed due to alterations in Loan Level Price Adjustments (LLPAs), which are fees that differ for each borrower based on factors such as credit scores, down payments, property types, and more. These adjustments are connected to credit scores and the size of down payments. In certain instances, individuals with higher credit scores might end up paying more, while those with lower credit scores could pay less. What do the fee modifications entail? The entire fee matrix, based on credit score and down payment, has been revised. Although having an excellent credit score still results in lower fees compared to a poor…

If you are ready to purchase a house – you are probably going to be excite and maybe a little nervous. Here are 5 important things to do on a walkthrough to help lower any anxiety or future surprises. 1. Look For Wet Spots Check the ceilings for wet spots (rings or circles) and discoloration around windows. They can cause issues down the road and be hard to fix! 2. Check The Wiring Turn on the switches, dimmers, check the doorbell, garage door, basically check it all. If things are not working right, there could be an overall wiring issue. 3. Inspect the Bathroom Again look for water damage around toilets, showers and tubs. Also make sure everything is working properly, flush the toilets, check the showers and faucets to…

If you're fortunate enough to be considering buying a second home, but not sure about using it as a vacation house or as an investment property to generate income, understanding the differences between the two types of property is important to determine how much you'll pay to finance and own it. A second home is a vacation home, while an investment property is rented out with the goal of generating income. If you're considering renting out the property occasionally, defining it depends on how much time you spend in it. If you use the property for 14 days or less during a year, it would be considered a rental property and the income earned would be taxable, but you would also deduct the expenses associated with the property. The distinction…