Can you believe that approximately 76% of veterans are not using their VA loan benefits? Crazy, right? For the most part, VA home loans are the best mortgage options out there. Not only do they not require a down payment, but any on-going costs associated are very low. This type of loan is the most affordable. If you have served in the U.S. military, we highly recommend you look into utilizing these benefits! With only 24% of veterans using this loan, there is a lot of money able to be utilized. Unfortunately there are many veterans out there who are not aware of these types of benefits and what is available to them. Some veterans do not want to go through the process because appraisals on the homes usually take longer than regular loans. Some people do no that the patience to wait. But we would recommend you give it a try! There are so many benefits.

There are also a great deal of real estate agents and private people selling their home who are unaware how VA loans work. We would recommend you communicate with someone who is knowledgeable about the topic so you are fully prepared and aware of what is and is not required. Unfortunately, because of this, not all veterans even know they qualify!

More benefits of purchasing a home with a VA loan include: lower interest rates, lower credit requirements, no private mortgage insurance required, and your loan will be backed by the government! Again, we highly recommend you take a look into this if you are a veteran. Something else you may not be aware of is that you can actually refinance to a VA loan if you qualify! How incredible is that?

If you think you may qualify, please take a look into seeing if you qualify. Not only can it not hurt but it may save you money!

There are a couple of options you have if you plan to use a cash-out refinance. You can purchase an investment property or a second home. It depends what your goals are. It also depends what you have time for! Having an investment property can take up a lot of your time.

Not everyone will qualify for a cash-out refinance. And not everyone will have enough equity in their current home. So there are a couple of things you need to be aware of and look into! If you qualify for a cash-out refinance, you can use up to 80% of the equity in the home you currently own and use those funds for a new home. The great part is that you would be able to take advance of lower interests rates too. This is one of the best ways to put your equity into good use!

Just like all loans, each lender has different rules and options. But there are a few rules that are pretty standard. For example, you will have to have at least 20% equity in your primary home in order to qualify. It is also standard that your credit score will need to be a minimum of 620. (In other loan options, your minimum credit score can be lower.) There is also a standard for your debt-to-income ratio – it must be 50% or less. Again, with other loan options, this is not the case. Like other loan options, you will need to provide proof of your income and employment.

If you are in a rush to obtain a cash-out refinance loan, you usually have to have your primary loan for at least six months. This will change per lender and loan type, but for any of them, it will not be less than that six month period.

Do you have any goals when it comes to owning a second home as a vacation property or investment property? We would love to help you reach those goals!

Some of you have reached out to us and wondering about closing costs on a refinance. After all, factoring in the closing cost is a large part of the decision as to whether or not refinancing makes practical sense or not. An expensive closing cost for a refinancing option is likely to discourage homeowners. Thankful, this type of negotiating is possible!

To begin with, as we have suggested before, it is important to compare the different lenders and what they offer. Each lender has different options – which includes different interest rates, fees, and closing costs. So when you are shopping around or different rates, shop around for approximate closing costs too!

Did you know that some lenders have no closing costs? The closing cost will be mixed into the cost of the loan so you are actually paying for the closing cost with the rest of your payment. And believe it or not, but there are some lenders who will waive your closing cost completely. However, these lenders will likely charge you a higher interest rate so be sure to keep that in mind.

Another tip we have for you is to ask the lenders you speak with if there are any fees that can either be discounted or waived. In todays society, it never hurts to ask! And the answers you get might surprise you. There may also be some incentives or even rebates that are available to you. The mortgage market right now is very competitive so you may be surprised in the answer you get. There are also other fees that are negotiable. These fees include: loan application, loan origination, underwriting, homeowners insurance, and title insurance. Be open with potential lenders and ask questions!

Okay so you made your pro/con list and you have decided that refinancing is the right move for you! Time to get the paperwork ready! Did you know that the top reason for mortgage closings to get delayed is due to paperwork? Well, now you do. This is why we recommend you get as much paperwork prepared and ready once you make the decision to refinance.

To start with, get your income and tax documents together. This will consist of a minimum of the last two years of your W-2’s and your most recent pay stub. If you work for yourself, you will need to gather the last two years of your tax returns. You will also need to provide your most recent bank statements, investment accounts, savings accounts, and retirement accounts if applicable. If you earn commission that does not appear on your paystub (if applicable) or your bank statement, you will need to gather that as well. Be sure to also gather any 1099’s you may have if this applies to you. Also, keep in mind that if you have earned any income from rental properties you may have, that will need to be reported as well.

Now on to your debts! Any debts you may have that is not on your credit report will need to be prepared as well. This includes any child support payments, alimony payments, or any debt settlements you may have with private parties. 

In most cases, you will not need an appraisal to refinance…but there are others where this is something that will need to be submitted. To be ahead fo the game, we would recommend you prepare your home as if you do need an appraisal. If not, no big deal. Making your house ready for appraisal includes mowing your lawn, caring for your plants, painting your home, etc. Make sure that anything that may need to be fixed gets fixed. For instance, if your bathroom sink does not work properly, make sure to get it fixed before the day of your appraisal arrives.

We want to remind you to also make sure you do not purchase any expense items before you start your refinance! If you do this, you debt-to-income ratio will be altered and your credit score may be lowered.

If you have any other questions or need any other tips, please get in touch with us. We are here to help!

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.