Author: super_admin

A lot of people don't realize that it's a good idea to watch your financial P's and Q's before closing your mortgage. Here are five common mistakes to watch out for to avoid any closing crises. 1. Making a big purchase, including furniture If you’re about to close on a house, it’s not the best time to get a new car, boat or other expensive item. Even furniture or appliances — basically anything you might pay for in installments — is best to delay until after your mortgage is finalized. Depending on your credit score and history, these transactions can lower your score, which can impact the interest rate and loan amount you receive. This could result in a higher interest rate for the next 15 or 30 years, or…

Home ownership is part of the American dream and often thought of as a step towards financial stability. For parents, the thought of helping their child set foot on this path can be both appealing and daunting. Here's an in-depth look at why and how parents can provide that initial boost. Why Consider Gifting a Down Payment? In 2022, the National Association of Realtors revealed an intriguing statistic: 22% of first-time homebuyers were aided by gift funds from family or friends. This underscores the trend of families stepping in to aid the next generation in achieving their homeownership dreams. In today's environment, skyrocketing rents, expensive homes, and the looming shadow of student debt make saving for a down payment increasingly challenging for many young people. A down payment gift is…

The dream of owning a home is a cherished one for many individuals and families across the United States. However, the soaring median existing-home price of around $400,000 can often make it seem like an unattainable goal, especially when faced with the prospect of a substantial down payment. Traditional mortgage loans typically require a 20 percent down payment, equating to a significant sum, but there is good news – down payment assistance (DPA) programs exist to help prospective homeowners bridge the financial gap. In this blog post, we will explore what DPA programs are, how they work, and the steps to access this valuable assistance. What is a Down Payment Assistance (DPA) Program? Down payment assistance programs are financial tools designed to provide aspiring homebuyers with the necessary funds to…

As we've seen large storms hit both coasts recently, it's a good idea to use the old Boy Scout motto and "be prepared." We are going to review general steps to take to prepare for something we of course never happens. Natural disasters, from hurricanes to earthquakes, wield a devastating power that leaves homeowners and entire communities grappling with significant property damage and high repair costs. The Financial Impact of Natural Disasters on Homes In 2022, the Insurance Information Institute documented nearly $100 billion in insured losses stemming from natural disasters. Here's a breakdown of the data: Severe storms: These accounted for over $29 billion. Earthquakes: About $14.7 billion per year, as per a joint study between the USGS and FEMA. Floods: 15 instances in 2022 led to $3.3 billion…

This week we saw the release of Consumer Price Index (CPI) for June 2023, which recorded a rise of 0.2 percent, a slight increase from May's 0.1 percent, according to the U.S. Bureau of Labor Statistics. Year-over-year, the all-items index experienced a 3.0 percent hike, a decrease from May's 4.0 percent, indicating a sustained deceleration in inflation for the past 12 months. With the inflation rate now standing just one percentage point above the Federal Open Market Committee's 2 percent goal, the inflation scenario, particularly its impact on the housing market, demands a closer look. The slowing of inflation, however, does not translate equally into the housing sector. The Bureau's data highlight the 'shelter' category, encompassing housing costs, as the most significant contributor to the CPI's all-items increase. However, he…

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…

We saw more activity in the market as rates dropped in a volatile business environment. Applications were up 7% and Freddie Mac reported the average rate on the average 30-year fixed mortgage was 6.60% this fell to 6.60% this week down from last weeks rate of 6.73%. In statement by Freddie Mac’s Chief Economist Sam Khater, he said “turbulence in the financial markets is putting significant downward pressure on rates, which should benefit borrowers in the short-term.” And he continued, “our research concludes that homebuyers can potentially save $600 to $1,200 annually by taking the time to shop among multiple lenders.” Check with us about your options as the market is in a period of volatility. You can use our quick analysis our website and we will auto-schedule a review…

With recent market volatility we have good news for some new home buyers. Starting in March, those who are receiving FHA financing and paying mortgage insurance will see the monthly fee reduced from 0.85% to 0.55%. This is expected to affect 850,000 borrowers this year and result in an average savings of $800 annually. The savings will vary based on the loan amount, for example a person with a $500,000 FHA loan would save $1,500 annually. If you are in the market for a new home, fill out our quick home qualifier on our website and we can help determine what loan best fits your needs and let you know how much you can pre-qualify for.

Economic reports last week gave signs that inflation may finally be slowing down. As a result, mortgage rates dropped significantly, Freddie Mac reported, the 30-year fixed-rate dropped to an average of 6.61% down from 7.08% the week before. This was the largest weekly drop in over 40 years, since 1981. Freddie Mac economist Sam Khater noted, “while the decline in mortgage rates is welcome news, inflation remains elevated, there is still a long road ahead for the housing market.” If you are considering buying, please contact us regarding pre-qualifying or a rate lock. Fill out our quick pre-qual app on our website to get started.

As we continue to see low inventory in the housing market and high rent prices, many home owners are adding ADUs (which stands for Accessory Dwelling Units). ADUs often called granny flats, are guest houses or rooms added to garages to create rental income for home owners. Home owners typically add ADUs to increase cash flow, as well as looking for their property value to appreciate. Whether ADUs are right for you, depends on a number of factors. ADUs often costs at least $100,000 to build so being in a high rent market helps to offset the initial investment. You’ll also need to make sure local ordinances allow them and what the regulations are. The old real estate adage about location stays true for ADUs as well. If you are…