Author - Jonathan

In the last few years many people began working remotely and interest in second homes has skyrocketed. Here is a primer for those considering a second home.
The first step is where – do you want a vacation home by the beach or mountains, do you want to be near relatives. Do your research and use a local real estate for help with choosing the right area or neighborhood.
Second is why – do you want a vacation house, a second residence if you spend a lot of time in an area for work or family or do you want an investment property? You can actually combine these and use a second home for vacations and AirBNB it while you’re not there (of course check local rules regarding this).
Third and perhaps most importantly is how – as in how are you going to finance it 🤓. You will often need a higher down payment for a second home, as default rates tend to be higher. And with an additional mortgage, you’ll need to make sure your DTI (Debt to Income) ratio is not too high. You’ll also want to make sure a second home doesn’t stretch your budget to much, you should factor in maintenance, property taxes in addition to mortgage payments. If you are planning on renting make sure you factor in the property not being rented immediately and plan to set aside ten percent of rental income towards maintenance.
If you are ready to start looking – apply online and we can let you know how much you can pre-qualify!

There are a lot of benefits to being self-employed – you’re your own boss but when it comes to getting a mortgage secured, its a slightly different process than traditional mortgages. It often comes with additional requirements and red tape.
Here are some tips to help you get organized and approved if you’re self employed. Apply for a mortgage when your income is up (we know this is easier said than done) but lenders will look at your last two years income most closely, and if you’re income fluctuates its best to apply on an up year. This can help you qualify for a greater loan amount and lower interest rate. Get That DTI lower, your debt-to-income ratio is one of the key factors in getting approved. So you’ll want to try to pay down debts (both business and personal) as well as avoid opening new lines of credit a few months before applying. Don’t Mix Business and Personal Keep your business and personal finances separate. Have separate bank and credit card accounts for your business and personal use. This will help lenders easily see the business income and expenses as well as show you are running your business in a professional manner. Give us a call or contact us from our pre-qual app and we can see what product best fits your needs. You may be a candidate for QM (Qualified Mortgage) or non-QM lender, either way we can review and help you get started!

You likely heard the the Federal Reserve Board increased the federal funds rate by three quarters of a percentage point this week, in response to rising inflation (most obviously felt when going to the gas station!). The Fed wants to combat too much liquidity by making borrowing more expensive. As a result mortgage rates have increased from near record lows of the last few years. With higher rates more borrowers are looking into adjustable rate mortgages (ARMs). ARMs were not a favored option with record low rates, but now they are looking more appealing to many borrowers.

As we know the Fed is reacting to a number of factors, as mentioned trying to reign in liquidity, as well as global events that were not anticipated (Russia invading Ukraine the primary one, as well as supply chain issues). The Fed is attempting to cool down the economy now. If you are looking to purchase a new home there a still a number of loan options. Fill out our loan finder or schedule a consult our website to see what options are best for you.

As we’ve seen an uptick in interest rates, many homebuyers are now looking into adjustable-rate mortgages (ARMs). ARMs were very popular in the early 2000s but with our extremely low rate recent history, very few home buyers were choosing ARMs. Now with higher rates many home buyers are looking into ARMs again.
First a brief overview on what ARMs are – unlike your traditional fixed rate mortgage, ARM loans have interest rates that can change. Normally with lower initial interests for a few years that then “adjust” based on the current market rate. So a 3/1 ARM will have a lower fixed rate for three years and then adjust annually after that. A 7/1 ARM is for seven years etc.
The primary benefit of ARMs are the lower initial interest rate and thus lower initial monthly payments. ARMs are attractive if you aren’t planning on living in the house for a long period. ARMs are a popular option on jumbo loans as well. Of course you’ll need to be comfortable with the risk and uncertainty of higher possible rates in the future. If you want to know more about ARMs and your options schedule a consultation on our website.

As we enter beach and pool season – a lot of people ask 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 are pre-Covid). If you are in a warmer climate like Texas or Florida, pools can add more value and be more desirable. In fact if your home is in a high-end area where most homes have pools then it can lower your home’s value if you do not have one. Of course you have to take into account building and maintenance costs, as well as if your yard has enough space to accommodate a pool and still have enough area left over. It’s probably a good idea to want a pool for enjoyment rather than just building one to increase resale value. If you want to get more feedback on your property and how it fits in the market feel free to schedule a consultation with us on our website for more details and the latest market conditions.

If you are a first time home buyer and looking for help with your down payment and closing costs, there are actually a number of grant programs both nationally and on the state and local level.
Grants are not loans and not required to be paid back. Qualifying for different grant programs varies, it often requires you to be a first time home buyer and you must live in the residence (not rent it out).
You may also need a minimum credit score as well as fit income criteria.
Give us a call or schedule a consultation on our website and we can see what grants and programs may be available to you.

If you are ready to purchase a house – you are going to be excited 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 make sure the hot water works.
4. Test the hardware
Basically check everything from fans to the washer and dryer. Make sure it all works.
5. Run the heat and AC
You want to make sure the heat and AC are working properly – turn them on and let it run a few minutes.
Finally make a checklist for all the items to be included in the sale and have the owner sign-off or initial it so there’s no confusion or disagreements at closing.

There are a number of factors that affect getting approved for a mortgage the interest rate of the loan. One of the biggest factors in the actual interest rate, is your credit score. The higher the credit score the better in terms of the interest rate and consequently the monthly payments to be made for your mortgage.
A credit score is a number that generally indicates your ability to meet your financial payments. It’s based on your outstanding debt, payment history and other factors. Generally a tri-merge report is ordered with any new mortgage loan and they will use the middle score.
If you aren’t sure of your score, you can order an annual score for free at AnnualCreditReport.com. You can see if there are any errors and we can help with some recommendations to lower your score as well.
If you would like more information, please go to our website to schedule a free consultation.

You may have heard that in the most recent meeting of the Federal Reserve Board, they voted to increase the federal funds rate by half a percentage point.
While fixed rate mortgages are not directly connected to the Fed’s rate (rather the 10 year Treasury rate, the fed rate is directly tied to short term loans such as credit card borrowing and adjustable rate mortgages) mortgage rates are influenced by the rate as well as other Fed monetary policies.
The Fed is focused on lowering inflation and has indicated there may be more rate increases in the next year, other factors such as the war in the Ukraine affecting oil prices as well as lock downs in China affecting the supply chain will be closely watched.
If you are looking at applying for a mortgage, you may want to lock your rate in, give us a call or apply on our website and we can see what best fits your needs.

It’s almost required to get pre-approved for a mortgage when house shopping in many of today’s markets, many realtors will actually ask for a pre-approval in advance.
Its also good for you to know how much you can afford and if there are any issues, you will know in advanced instead of any last minute surprises!
So here are 5 things you’ll need to get pre-approved
1. Proof of Income This is usually W-2 statements but also includes any other sources of income like bonuses or alimony.
2. Proof of Assets This will include bank and investment account statements. If you are receiving a money from a relative or friend you may also need a gift letter from them.
3. Credit Score Your credit score will be an important factor on the down payment and interest rate on the loan.
4. Employment Verification Lenders may call your employer to verify employment, or if you are self-employed you may need to supply additional paperwork.
5. You Verification You may need to supply a copy of your drivers license and social security number as well. Now that you know the basics, use our online prequal and see how much you can get approved for!