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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!

As we move from spring to summer, an outdoor room is a great way to enjoy the weather, get fresh air and Vitamin D from the sun, if you’re lucky enough to have the space.
Creating an outdoor room you’ll want to consider what its primarily going to be used for: relaxing, dining or maybe even some working.
First, you’ll want to make sure it has a ceiling! Ok maybe not an actual ceiling if you have a tree for cover that’s great! A pergola is also a great choice but you can always get an umbrella or a trellis and cover that.
Next you’ll want to get furniture! You can furnish similar to the indoors. If you’re going to be relaxing maybe low chairs and don’t forget side tables. If you want to be fashion-forward get throw pillows too 🙂 And of course make sure they are outdoor fabrics that are built to be weather resistant.
Also consider making a floor for your outdoor room – you can everything from an outdoor carpet to wood flooring to crushed shells under your dining area to adding some stepping stones!
Finally don’t forget the lights! You can hang some fun outdoor string lights that will make everyone jealous when you post pics of your new room 🙂

Housing markets are extremely tight and there are often multiple bids and in some markets the asking price is often a starting price. If you find yourself competing with multiple bidders, here are some tips to come out on top and win a bidding war.
Have a preapproval letter. A preapproval letter shows you are serious and there won’t be trouble getting a mortgage. Without this other bidders will be in a much stronger position.
Make a higher offer – Before doing this, make sure you stay within your budget, but a higher offer is (as common sense dictates) often a key to a winning bid. Your real estate agent can be helpful here to get an idea of how many bids are coming in as well as current market prices in the area. Escalate A really good strategy is to add an escalation clause. This helps you avoid overbidding, you can say you will outbid competing offers by a certain amount (for example $5,000) up to a set maximum price.
Backup Offer – if your bid does not get accepted, then its normally time to keep looking, however you can try to make a backup offer if there is a kick-out clause and have your realtor stay in touch to see if there are issues with the accepted buyers offer.
Be sure to contact us and fill out our online pre-qual to get a pre-qualification letter and see how much you qualify for.

With today’s hot real estate market, many people are moving to new areas – sometimes across the country, sometimes across town, either way here are ten things to look for when considering a new neighborhood.
1. Property Taxes – you should look at property taxes and also how much they’ve increased in the last five years and if any increases are planned. It’s a good idea to build this into your budget too.
2. Amenities – check what’s nearby based on your interests, restaurants, groceries stores, houses of worship etc.
3. Future development – it’s a good idea to check and see what future development is planned – it might be a good or bad thing but either way its worth checking.
4. Crime rates – you can check local crime rates online or even contact the local police department to get a better feel.
5. See the area for yourself – its best to hang around the area especially at different times of the day to get a feel for what its really like.
6. Commute times – you probably already thought about this but make sure to check the times during rush hour too.
7. Schools – if you have kids, you already thought about this. But good schools can also be a good sign of a well-kept neighborhood.
8. Housing Values – check the current values and compare them with five and 10 years ago.
9. Walkability and activities – depending on your tastes see what activities are nearby.
10. Personal Fit – everyone has different tastes so try to match the neighborhood with yours – new or old, tight-knit or independent, quiet or bustle, these are individual fits but finding the right one will help you enjoy your home that much more!
And of course reach out to us with questions and if you haven’t gotten pre-qualified yet make sure you do 🙂

If you’re buying or selling (but especially buying), a home inspection is a crucial part of the process that too often is seen as just another step.
So here are the 3 keys to make sure you come out on top and avoid surprises after you move in!
1. Inspect the Inspector First! Make sure your inspector is certified, qualified and experienced. You want someone who is going to check things thoroughly and not just check the boxes. Find a good inspector early as the good ones can often be like a popular restaurant – hard to get a reservation.
2. Be Present for the Inspection If at all possible make sure you attend the inspection too! It may take a few hours so block out the morning or afternoon if needed. You can be part of process, ask questions, get feedback on possible costs if repairs are necessary.
3. Sellers do a pre-inspection Inspection If you are getting ready to put your house on the market it’s a good idea to get a pre-sale inspection. If the inspections turns up things that need to be repaired or fixed this will help make a smooth sale and closing while avoiding surprises!

Last week the Federal Reserve announced it was raising the Federal Fund rate by a quarter percentage point rate, the first rate increase in three years. You are probably wondering what that actually means for homeowners.
Although not officially connected this normally means mortgage rates go up, and rates have increased recently. The Fed has also indicated that it will increase rates even more in the coming months as inflation is one of their top priorities.
If you are currently on a fixed interest rate mortgage the won’t affect your rate or your mortgage payments. If you have an ARM variable rate mortgage then it will be affected affected and you may want to consider locking into a fixed rate mortgage before rates go higher. If you are under contract on a new loan, you may want to consider locking in your rate to avoid further rate increases. Everyone has a unique situation so schedule an analysis on our website and we can see what if any course of action best fits your needs!

As we enter tax season, let’s review how owning a home can help lower your tax bill.
First, lets clarify that you’ll need to do an itemized return to take advantage of the deductions.
Second the deductions are just that deductions from the income that is subject to tax, not just taking an amount straight off your tax bill.
Onto the benefits! The biggest one, you may already be familiar with – the interest deduction. The money you pay in interest over the year on your loan is fully deductible on the first $750,000 of your loan or up to $1 million if your loan was originated before December 15, 2017. The other biggie is deducting property taxes. You can deduct up to $10,000 in state and local taxes including property taxes. Another deductible is if you paid points to lower your interest rate – this payment is tax deductible. Finally another popular deduction is one many of came to know last couple of years – the home office. However even though many of us have one now – the deduction is meant only for the self employed – if you work full time for a company it may not qualify. Of course talk a certified tax professional regarding your particular situation and if you want to see how much you can qualify for please fill out our quick qual analyzer on our website!

If you bought your home with less than 20% down, you are most likely paying private mortgage insurance (PMI). Most borrowers can’t wait to get to 22% equity when their PMI will be cancelled.
One way to stop paying PMI is through refinancing your home. Now this likely won’t be an inexpensive way to avoid PMI in terms of closing costs involved with refinancing. So you may want to have other reasons to refinance such as a lower monthly payment or getting cash-out as well. If you’re equity has increased a good deal recently so that you have more than 20% equity then you could avoid PMI through this route as well – you’ll still have to pay for an appraisal but that will be a lot less than the closing costs.

What Is A Non-QM Loan?
A Non-Qualified mortgage loan (Non-QM) is a loan that falls outside of the QM (Qualified Mortgage) loan parameters, which provide legal protection to lenders and have stricter guidelines to help prevent against default. Non-QM loans fill a void for people with fluctuating income that may come in lump sums. Most often they used by people who are self-employed (like a small business owner, entrepreneur, contractor, nurses, etc.) and don’t tick the boxes for a traditional mortgage with requirements for their tax statements, pay stubs and W-2s. They are also used by borrowers that may certain credit issues in their past that rule out a QM loan. Non-QM loans do not have the traditional guarantees backed by those of Freddie, Fannie, FHA and VA loans. If you want to learn more about which loans are bested suited to your needs, fill out our 90 second analysis on our website and we can schedule a consult!