As you likely know, there are quite a lot of people who have chosen to refinance their home this year. There is probably at least one family you know who has done it this year! We have had many people get in touch with us and ask about the refinancing process. We will give you some details to give you a peace of mind about the process! And as always, if you have any further questions, please let us know! We are here to help.

To start off with, keep in mind that it takes a little over a month from the beginning to the end…usually about fourth five days. If you are prepared (as much as you can be) ahead of time, it will take the shorter amount of time. Lucky for you, most of the refinancing work is out of your hands. There will be some paperwork that you will need to get together, but for the most part, your lender will handle it and they will be in touch with you when they need more details or paperwork signed.

As we have mentioned in the past, we would recommend you make a pro/con list to make sure refinancing is the best decision for you. One of the huge pros is that you will likely save a lot of money that can be put toward other monthly costs you may have. It also may free up some additional money that can be used for home renovations. If this is something you desire, this would be very beneficial for you.

Remember that refinancing is not free – there is cost involved. In saying that, shop around! Make sure that you find the lender with the lowest closing cost or other fees involved. For the most part, the refinancing cost is between two and five percent of the loan amount. In same cases, the cost may be more.

Stay tuned next week for some ideas and things to do to shorten the amount of time it takes to refinance your home! Today, we have just opened your eyes to the process.

With the holiday season coming up and fall breaks on the horizon for some, going out of town is something that is on the agenda for many people. We want to give you some tips and tricks for what you can do as a homeowner (or even a renter) to keep your home and belongings safe and protected! By knowing everything is safe, you will be able to enjoy your trip completely.

To start with, make sure all of your doors and windows are locked. While this may be an obvious thought, checking your windows may not be as obvious. While you are at it, make sure that all of your electronics are unplugged. There is no reason for them to be plugged in if you will not be home. This is especially important for potential fire hazards. Make sure any of your valuable items are in a very secure place, and if possible, locked away. These are all basic reminders but we want to make sure nothing slips your mind!

Something else that is a bit obvious is to make sure you utilize your security system. This is especially true for any smart home devices you may have set up but do not have the camera feature set up yet. It is time to set it up! This is especially helpful if you have the ability to access the camera while you are away and see what is going on in real-time.

A lot of people tend to post their vacation updates on social media. This is not the best idea for possible intruders if your profile is public. We would recommend you wait until you return home to post your travel photos. The least amount of people who are aware you are away, the better!

Another great idea is to have someone you trust to check on your home on occasion, especially if you plan to be away for a long period of time. This could be your neighbor, friend, or family member. Depending where you live, some local police stations will send someone out to check on your home while you are away if you give them a call and ask them to do so.

Are there any other things you do to make sure your home is safe while you travel?

The majority of homeowners have a thirty-year mortgage. However, when possible and if it makes sense for you, a fifteen-year mortgage is actually a great choice for many reasons, especially if you are able to afford higher monthly payments. By paying your mortgage off in half of the time, you have the potential to save thousands, if not tens of thousands of dollars in interest! It also decreases your amount of stress as well. If you feel like your income will be steady and reliable for the foreseeable future and you are able to afford higher monthly payments, a fifteen-year mortgage is something we would recommend you look into.

To brief you on the fifteen-year mortgage terms, while it is fairly self-explanatory, it is a fixed-rate mortgage that must be paid off in fifteen years. Also, each payment must be made on time. Since it is a fixed-rate mortgage, the interest rate and principal will stay the same for the duration of your mortgage.

Another positive is that with a fifteen-year mortgage, you also have the opportunity to gain more equity in your home quicker. This is something that would greatly benefit you in the long run. Especially since you are saving a great deal of money in the process!

Keep in mind that although this sounds nothing but positive, you have the potential to be purchasing a smaller home or purchasing a home in an area you may not find favorable, since your monthly payments will be more expensive than a thirty-year mortgage. It is possible that you may not afford the same house that you would if you were to take out a thirty-year mortgage on it, versus is being a fifteen-year mortgage.

What it really comes down to is if you can afford higher monthly payments without a shadow of a doubt for the next fifteen years. If your income is not predictable and things may change in the coming years, we would recommend you really look into whether or not a fifteen-year mortgage is the right option for you.

Due to what is going on in the world these days, many things are done virtually nowadays. This includes banking and mortgages. Digital mortgages are now something that is available for people. In the past, in order to get a mortgage, people would have to go to a bank to fill out a great deal of paperwork. Now, it is possible to do everything electronically online! No physical paperwork is involved in the process at all. There are automated systems that are out there now that prevents a potential personal bias when it comes to rejecting application decisions.

Another positive aspect of digital mortgages is that it does not matter where you are physically located! You are not tied to one specific location or another. With the digital aspect, you have many options to shop around with different lenders and different rates. You are also more likely to have faster access to options.

With the digital aspect, since there is no face-to-face communication between parties, the pressure for shopping for a lender decreases greatly. This eliminates some of the stress to the consumer.

The application process is similar to in-person application processes, as the requirements are the same. You will still need to be able to provide income statements, apply for a credit check, and possibly provide a debt-to-income assessment. Once you put all of the proper documentation and other required documentation, you will find out what mortgage rate you are eligible, if you are eligible at all.

The digital nature also allows more consumes to be served appropriately. You do not have to wait to make an appointment with someone as it is not necessary. However, if you do prefer to make an in-person appointment, you are certainly able to do so as long as the company you are working with has it available. Lucky for you, that is something we currently still do!

If you have a low credit score, do not let it discourage you from purchasing a home. You may still be able to qualify for a mortgage loan. Although it may be a little more difficult, it is possible! A low credit score is between 300 and 579. This is considered to be a poor credit score. A fair credit score is between 580 and 669. The most common type of home loan, which is a conforming mortgage, accepts credit scores starting at 620. Other programs require as low as 580. As you can see, it is possible! There is no magic number when it comes to a minimum credit score. It depends on the lender.

If you have a low credit score, there are some things you can do to increase your odds of purchasing the home of your dreams. One of these ways it so pay as much cash as you are able to! This cash would go toward the down payment. If you have a significant down payment, the odds of you being approved for a loan increase. You will not be classified as much of a risk with a decent down payment.

When you do get a home loan, your credit score will be increased as long as you make your payment on time and pay the correct amount. Once you have raised your credit score enough, you have the ability to refinance if that is something that would benefit you. This may help you lower both your mortgage rate and monthly payment.

If you do have a lower credit score, please realize that your mortgage interest rate will be more than someone who has a higher credit score. Make sure you budget this appropriately and keep this in mind. We are not telling you this to scare you but to be sure you are doing things to increase your credit score and plan accordingly. We want everyone to have the house of their dreams!

Do I purchase a home in 2021 or do I wait? We have heard that that is the question many of you have been pondering recently. Americans are purchasing homes right now in record numbers. Since 2006, the most amount of homes were purchased in 2020, despite there being a low supply and home prices constantly increasing.

Many people have decided that now is the time to purchase a new home because mortgage rates are at a record low. Most research indicates that rates will likely start to rise and continue to rise significantly in the near future. Purchasing a home when rates are low give you more of an opportunity to your monthly payment being affordable and possibly having the ability to purchase a bigger home than you would have normally been able to. Right now, there are many different mortgage options as well. This means you can truly cherry pick with option would be the best for you.

With the good, always comes the bad. Right now there is low inventory on homes. This can become very frustrating to someone who is desperately in need of purchasing a new home. This low inventory market has created bidding wars!  There is a lot of competition out there right now. Some people are able to compete by making cash offers. Most sellers will choose someone who has the ability to make a cash offer over someone who needs a loan. Most mortgage lenders have also made it a little more difficult to purchase a home during this time. This is due to the fact that the financial risk has increase significantly with many people losing their jobs during this tough time.

Some people have chosen to rent a home instead of purchasing a home since it is easy and more affordable. Keep in mind that this is not universal and it still might make more sense to purchase a home. If you are having a tough time deciding which to do, speak with your real estate agent of your concerns. 

Purchasing a home directly with one (or both) of your parents or your adult child (or children) is something that more and more people are seeming to do. By doing this, you make homeownership more affordable. It can also be helpful to those you may be caregiving to or supporting. This way of purchasing a home can become complicated. If this is something you plan to do, we would recommend you work directly with your mortgage broker, lender, or realtor so you are taking all the proper steps and precautions.

This way of living has become more popular in the last couple of years due to what is going on in the world lately. Many people have lost their jobs or need additional help, so living with a loved one can make things less stressful. It will offset costs that are involved.

If you are able to, purchasing a home with cash can make it easier on all parties involved. If you are selling a home as well, those funds can go right into purchasing a new home. If you are able to pool funds from the multiple parties involved, there will be a lot less “fine print” you have to deal with. Remember, you can have multiple names on a deed.

As we have mentioned before, you can have multiple names listed on a mortgage application. The co-borrower does not necessarily even have to plan to live in the home moving forward. Having multiple people on the application make it easier for someone to qualify for a loan. You are pooling multiple sources of income together. If you do not want to have a co-borrower, you can have a co-signer. A co-signer will not have any rights to the home being purchased but they will be responsible for making payments.

A cash gift is also an option. The gift can be applied toward anything related to purchasing a home.

Multi-generational homes can be a great idea for many different circumstances!

We have more tips for you as to how you can decrease your costs when purchasing a new home! We love that some of you even contacted us with what you did to prepare for purchasing a new one. Please keep the communication coming in – we love hearing form you.

Last week, we reminded you of the important of shopping around for your mortgage and negotiating any fees that are involved in purchasing a new home.

Some of you may not be aware, but there are some options out there that give home buyers assistance with either their down payment, closing cost, or something even both! Every state has different options available. We would recommend you ask either your loan officer or who you are working with as a realtor for a list of options that may be available in your state.

Although this may be common sense, we want to make sure we do not forget to at least mention it! Improving your credit score can help you to get a lower mortgage rate when applying for a mortgage. As soon as you have the idea in your head that you want to purchase a new home, or even before it, start working on improving your credit! This does not have to be something that is difficult or scary to do. To start, begin paying any debts off that you may have. If you have any accounts with overdue or late payments, we would recommend you get those settled and taken care of right away as well.

Purchasing a home that may need some improvements or needs to be fixed will help you purchase a new home easily, too. These types of homes will be less expensive than other homes. Although you will need to put money into getting the house fixed, if you are a hand person or have handy people in your family, this will not be an issue.

Something else to keep in mind is that the cost of homes is seasonal. During the spring and summer time, homes are usually more expensive. If you can wait, try to wait until the winter to purchase a home. December, statistically speaking, is the best month to purchase a new home.

We would love to help you on a more personal level, or point you in the right direction of someone else who can! Purchasing a new home is a very exciting time.

Some reports are showing that homes in today’s market are significantly less affordable than in the past…by sixty one percent by some reports! We do not tell you this to discourage you by any means. We just want to make sure you are aware and share some tips with you. If you plan ahead and are financially smart, the affordability nature of buying a home is there for you.

To start, make sure you know what to expect when it comes to buying a home! This includes a down payment, closing costs, and earnest money. On average, your down payment will be three to twenty percent of the sale price. As you can see, this can vary significantly. On average the closing cost can be two to five percent of the loan. We have talked about this subject extensively in the past. The closing cost seems to come as a surprise to some people for some reason – especially what the cost can be. Earnest money, on average, can be one to three percent of the purchase price of the home. The earnest money is paid when you make an offer on a home and gets applied to the down payment. As the buyer, you actually have control over the costs. Especially by researching all of your options and what all of the lenders require. Doing this type of research can save you quite a lot of money.

Some people forget that you also have the ability to negotiate any fees that may be associated with your mortgage. This can help you to lower closing costs and save all kinds of money. The loan origination fees is something that a lender has the ability to decrease. As with anything in life it never hurts to ask.

Next week we will give you more ideas to you as to how you can lower the cost of buying a home!

A jumbo loan sounds kinda cool, does it not? We think so! A jumbo loan is needed when you are looking to borrow more money than normally allowed. In most areas, this number is around $548,250. There are also new programs available where you do not need twenty or thirty percent down to get a jumbo loan anymore. This is great news for those of you wanting to purchase an expensive home!

Since a jumbo loan is considered to be a non-confirming loan, the requirements are different than other loans. Depending on the lender, the minimum credit score, minimum down payment, maximum debt-to-income ratio, and other criteria will be a little different for each lender. Since the requirements truly do vary based on the lender, we recommend you do your research and look at all of your options. These types of requirements not only differ and vary, but so do interest rates and other fees as well. When you do your research, be sure to look at all aspects of the lender you want to use. We cannot encourage you enough to be sure you shop around!

This may come as a surprise to you, but the mortgage rates of a jumbo loan can be similar to regular loans. As use, there are many factors that are involved when it comes to the mortgage rate.

If this has you thinking about getting a more expensive home now, be sure you would feel comfortable with what your monthly mortgage payment may potential be. You will need to make sure you have a steady and good income coming in every month in order to be comfortable in this. This is especially true if you do not plan to make a significant down payment.

We cannot encourage you enough to be sure you do your homework and look at all of your options in choosing who to work with your jumbo loan!