Are You Ready for Home Ownership? Find Out by Answering These 4 Questions

Are You Ready for Home Ownership? Find Out by Answering These 4 QuestionsHave you been dreaming about a larger, roomier or more luxurious living space? Or perhaps just want to experience the joy of owning your own home and building your net worth instead of renting? Let’s explore a few questions that can help to answer whether or not you’re ready for a new lifestyle as a homeowner.

Can You Realistically Afford To Buy A Home?

The first consideration to make is a financial one: can you afford it? Buying in a home is a significant financial investment. In most cases you’ll need to manage monthly mortgage payments for many years. The good news: owning a home is a more affordable than you might think. If you’re already a stable renter then you’re most of the way there.

Do You Have Your Down Payment Saved Up?

If you’re confident that monthly payments are no problem, then the next step is saving up enough to cover your down payment. This is a lump-sum investment that you make when you buy the home. Typically your down payment is around 20 percent of the home’s cost, but there are assistance programs which can reduce this further.

Do You Know What Type Of Home You Need?

Once you’ve cleared all of the financial hurdles, you will next need to decide exactly what kind of home you need. If you’re a single young professional, a condo or apartment might be the perfect starter home from which you can upgrade later. Or you might prefer something more rural which comes with more yard space, perfect for pets.

Are You Ready To Set Down Some Roots?

Finally, it’s worth taking some time to decide whether or not you’re ready to emotionally and physically invest in your local community. Is your career stable enough that you won’t be moving for at least a few years? What about that of your partner or spouse? If you don’t already, do you envision having children in the future? All of these are considerations that will help you choose the right neighborhood.

When you are ready, our professional mortgage team is here to help you finance the home of your dreams.

Four Pieces of Mortgage ‘Advice’ That You Should Take With the Proverbial Grain of Salt

Four Pieces of Mortgage 'Advice' That You Should Take With the Proverbial Grain of SaltAre you in the market for a new home? If you have been talking to friends and family or researching online, you have likely come across quite a bit of mortgage-related advice. As with anything, there is low-quality advice out there which is essential to avoid. In today’s blog post we will share four pieces of mortgage-related advice that you should take with the proverbial ‘grain of salt.’

#1: Only Get A Mortgage From Your Bank

Have you heard that you should only get a mortgage from the major bank that you use regularly? Many people believe that working with a large bank that you have a history with provides advantages, but this is not always the case. The right advice here is to seek out a mortgage lender offering products that fit your current and future financial needs.

#2: Always Take The Lowest Interest Rate

The next piece of advice you might hear is to always take the mortgage product with the lowest interest rate. As you may know, rates vary based on a wide range of factors. Taking the lowest rate might mean that you miss out on some favorable mortgage terms. It is best to trust your mortgage professional to provide you with some options here.

Don’t forget that, over time, you will be able to refinance your mortgage if rates move in a way that is advantageous for you. So you can feel safe in choosing the right mortgage now and adjust later.

#3: Always Borrow As Much As You Can

Another questionable piece of mortgage advice is to always borrow as much as you possibly can. Keep in mind that a mortgage is a loan and that you are required to pay it back. The amount you borrow should be in line with your needs and financial goals.

#4: Don’t Bother With A Pre-Approval

Finally, you may have heard it suggested that you can avoid the mortgage pre-approval process. While it is possible, this is not a good idea. Many home sellers will require proof of your pre-approval before they will commit to selling their home. If there are other buyers trying to bid on that home, they are more likely to win the bid if they can prove their finances are in order. When you are ready to buy, a pre-approval can help.

These are just a few of the many bad pieces of mortgage advice that you might hear in conversation or read online. When you are ready to discuss your mortgage options with the experts, give our professional team a call. We would be happy to share our insight and experience to help you choose the best mortgage.

3 Ways That a Reverse Mortgage Can Transform Your Retirement

3 Ways That a Reverse Mortgage Can Transform Your RetirementAre you a retired individual looking for ways to increase your financial security? If so, you may have heard of a home equity conversion mortgage, more commonly known as a reverse mortgage. Used correctly, this is one of the most effective financial products for retirees who own their home.

Let’s explore three ways that a reverse mortgage can help to transform a dull retirement into one filled with excitement.

It’s All About Flexibility

The primary benefit that one receives with a reverse mortgage is financial flexibility. It is an excellent way to tap into the equity that has built up in your home over time without having to sell the house and move out. Moreover, unlike a traditional home loan, the payment terms are far more flexible. In many cases, payments are not required until you are ready to leave the home permanently.

An Extra Source Of Income

Is your lifestyle starting to suffer because you do not have a regular salary coming in for you and your partner? Regardless of how much you have saved in 401-k and other retirement accounts, losing that regular monthly income can be depressing.

The good news: a reverse mortgage can help to change that. The funds you receive can be used however you want. You can invest in renovations for your home, take a nice vacation, invest in the stock market or simply leave it in your bank account. It is a helpful ‘bridge’ income source that will ensure that you have no trouble taking care of life’s many expenses.

A Contingency Fund, Just ‘In Case’

Finally, a reverse mortgage can be an excellent contingency fund. If you take this out as a line of credit, the money will be available if and when they are needed. Many retired individuals lack a financial ‘safety net’ and end up suffering due to unexpected health or other costs. With a reverse mortgage, you can sleep soundly knowing that emergency cash is there if needed.

As you can see, taking advantage of a reverse mortgage can be the catalyst that helps take your retirement to the next level. To learn more about these unique financial products, contact our professional mortgage team today. We are happy to share how a reverse mortgage can benefit you and your family.

What’s Ahead For Mortgage Rates This Week – November 20, 2017

Last week’s economic news included remarks by Fed Chair Janet Yellen about the diversity of opinions in the Federal Open Market Committee, readings on inflation, and the National Association of Home Builders Housing Market Index. The Commerce Department issued reports on housing starts and building permits issued; Freddie Mac and the Commerce Department issued weekly readings on mortgage rates and new jobless claims.

Fed Chair Discusses Pros and Cons of Diverse Opinions Among Policymakers

During a panel presentation of global economic leaders, outgoing Fed Chair Janet Yellen discussed the pros and cons of having 19 members on the Federal Reserve’s Federal Open Market Committee, which is responsible for the Fed’s policymaking decisions.

Chair Yellen said that it was “challenging” in terms of expressing diverse member opinions into a pat statement of Fed policy. She noted that multiple opinions on any aspect of the Fed’s decisions could be confusing for the public. She also said that individual and varied opinions were essential in considering all aspects of the Fed’s policy decisions: “The most important strength is that we avoid ‘group-think,’ which is a real pitfall for policy committees.”

NAHB: Home Builder Confidence Hits EightMonth High

The National Association of Home Builders reported its highest housing market index reading in eight months. The monthly survey of home builders consists of readings on builder confidence in present housing market conditions, market conditions within the next six months and the volume of buyer traffic in new housing developments. Any reading over 50 indicates that more builders are confident about housing market conditions.

November’s reading of 70 was two points higher than in October; analysts expected a one-point decline to 67. Concerns over tax reforms potentially impacting homeowner tax deductions for mortgage interest were expected to impact builder confidence, but NAHB did not mention tax reform in their summation of builder confidence readings for November.

Component readings used to comprise the HMI reading were mixed. Builder sentiment increased two points to 77 for current housing market conditions. Builder confidence in market conditions over the next six months dipped by one point to 77 and builder confidence in buyer traffic in new home developments rose two points to an index reading of 50.

Builders have repeatedly cited concerns about shortages of lots and labor as well as increasing costs for building materials. NAHB said in a statement that November’s Housing Market Index reading was a “strong indicator that the housing market continues to grow steadily.”

According to the Commerce Department, October housing starts rose to 1.29 million on a seasonally-adjusted annual basis; analysts expected 1.20 million starts based on September’s reading of 1.14 million starts. 5.30 percent of housing starts were single-family construction.

Builders also took out more building permits in October; 1.30 million permits were issued against 1.23 million permits issued in September. The increased volume of building permits was partially attributed to reconstruction after hurricanes in Florida and Texas, but in the Northeast, building permits rose by 42 percent. The Northeast region is the smallest reported, but warm weather was cited as boosting permits issued.

Builder sentiment has been strong all year and was propelled by healthy job markets and lower mortgage rates.

Mortgage Rates, New Jobless Claims Rise

Fixed mortgage rates rose last week with the average rate for an average 30-year fixed rate of 3.95 percent; the average 15-year mortgage rate rose seven basis points to an average of 3.31 percent. The average rate for a 5/1 adjustable rate mortgage dipped one basis point to 3.21 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

New jobless claims rose to 249,000 last week as compared to estimates of 235,000 new claims and the prior week’s reading of 239,000 new jobless claims. Jobs lost and a backlog of first-time claims due to recent hurricanes were cited as the primary cause for the rise in new jobless claims.

Whats Ahead

This week’s scheduled economic news includes readings on previously-owned home sales, minutes from the Fed’s last Federal Open Market Committee meeting. Weekly readings on mortgage rates and new jobless claims are also scheduled.

Single and Considering a New Home? Here’s What You’ll Need to Know About Your Mortgage

Single and Considering a New Home? Here's What You'll Need to Know About Your MortgageHave you decided that it is time to move on from renting? If you are single and living alone, you may be wondering whether or not homeownership is right for you. Let’s have a look at a few key factors that you will need to be aware of when taking out a mortgage as a single person.

It’s A Commitment – But Not For A Lifetime

Some single people shy away from the idea of buying a home as it is a significant financial commitment. When you are single, especially if you are young and early in your career, flexibility can be valuable. You might decide to move to a new city to take a new job, or you may find a partner and decide to start a family.

Keep in mind that homeownership – and your mortgage – aren’t permanent. If you decide to buy a house, condo or apartment, you can always sell it later if you need to move or upgrade to a larger home.

You’ll Need To Be Disciplined

As you will only have one income stream coming in to support you in managing your monthly finances, you will need to be disciplined. Living paycheck to paycheck is not really an option as you will end up in trouble if an emergency occurs. Some financial experts advise having at least 6 to 12 months of monthly expenses saved up, in case of a job loss or an unexpected health issue that takes you out of work.

Don’t forget that there are also mortgage insurance products that can help to cover some of your costs in the event of an emergency. These may be an option to consider as a backup plan.

Starting Small Versus Going Big

Do you need a lot of space? If not, investing in a small ‘starter’ home is an excellent option. You can buy just enough home to suit your needs without buying anything extravagant. A helpful advantage that you gain purchasing a less-expensive home is that it comes with a smaller mortgage that can be paid off faster.

Questions? Get Professional Advice

If you have questions about borrowing and maintaining a mortgage as a single person, you’re not alone. Give our professional mortgage team a call. We will be happy to share our guidance and expertise in helping you choose the mortgage product that suits your financial goals.

Let’s Talk Closets: Why a Walk-in Closet Is a Must Have for Any New Home Buyer

Let's Talk Closets: Why a Walk-in Closet Is a Must Have for Any New Home BuyerAre you in the market for a new house or condo? Whether you’re looking for something luxurious or intimate, you’ll want to ensure that you have enough space for all of life’s necessities. Many home buyers focus on bedrooms, bathrooms and living areas as their top priorities. But have you given any thought to your closet space?

In today’s blog post we’ll explore why a spacious walk-in closet should be high on your list of “must-haves” for your new home.

Enough Storage For A Stylish Couple

An upgrade in storage space is the main reason to have a large walk-in closet – and for good reason. Today’s working professional needs a large wardrobe to store suits, work outfits, social attire, shoes, accessories and more. It’s almost impossible to cram everything needed in a small closet with one large hanging rack and a shelf or two. And even if you do decide to fill a smaller closet until it’s bursting at the seams, you’re stuck with having to try to organize it regularly just to be able to find anything. Forget it!

A Showcase For Clothes, Shoes And Accessories

A walk-in closet isn’t just for piling a ton of clothes into. It’s a showcase for your wardrobe and all of the items in it. Most walk-in closets are designed with numerous shelves, racks and other display areas. Take advantage of these to show off the best pieces in your collection. For example, are you particularly proud of that oxblood leather bag that you found while traveling Europe? Or the hat that you wore to last year’s Kentucky Derby? Your walk-in closet is the right place to show it off.

Room For Elegant Touches Like A Dressing Island

Finally, if you have enough space in your walk-in closet, you’ll be able to add some elegant touches. A dressing island with built-in shelves is the perfect feature for storing accessories and shoes. You can also add matching jewelry boxes on top to store frequently-used items. An ottoman is another elegant touch that can help make your walk-in closet feel more roomy and comfortable. And don’t forget to include a couple of mirrors for checking your look from multiple angles before you leave the house.

These are just a few of the (many!) reasons why a walk-in closet is an absolute must-have for any new home. When you’re ready to explore financing opportunities for your new home, contact us. Our professional team is happy to assist you.

The Easy 3-Step Guide to Get Started With Real Estate Investing

The Easy 3-Step Guide to Get Started With Real Estate InvestingAre you interested in expanding your investment portfolio with hard, long-term assets that are almost certain to grow in value? If so, you will want to consider investing in real estate. Let’s take a look at how you can get started with real estate investing in just three easy steps.

Start By Budgeting Your Time And Money

Real estate investing is just that – investing! Moreover, this, of course, means that you’ll need to commit both money and time to see results. The great news is that if you’re just getting started with real estate investing, you don’t need to start with much of either. There are fund and other investment opportunities that will allow you to get started with as little as $1,000. Once you’re more familiar with investing in real estate, you can commit larger and larger sums, expanding your portfolio.

Figure Out Which Investment Option Suits You Best

If you’re new to the game or are investing smaller amounts, you may be interested in a Real Estate Investment Trust or “REIT.” REITs are essentially investment companies which own or finance income-producing real estate. For example, you may buy into a REIT that invests in commercial buildings, like office buildings or warehouses. The REIT will take care of all of the maintenance, leasing and other upkeep while offering a return to you as a shareholder.

If you’re starting with deeper pockets, another option is to simply buy your own properties and rent or lease them out. To be successful, you will need to find houses or apartments that are of good value and will see a decent amount of rental return each month.

Start Networking And Meeting Other Investors

Now that you’re ready to get started take some time to meet and network with other local investors who are active in your community. Check on Facebook to see if there are real estate investment groups for your city, or give a few quick Google searches to see if there are any meetups. You might be surprised at how friendly and ready to share information other investors are.

Be Ready To Experience Challenges And Setbacks

One important thing to keep in mind is that you are likely to experience challenges or setbacks along the way. You’re learning about a new form of investment – one which takes some skill to master. Stay positive and accept that as you gain experience, it will get easier.

Real estate investment is an excellent way to diversify your financial portfolio and grow your personal or family wealth. For more information about financing local real estate opportunities, contact your trusted mortgage professionals today.

What’s Ahead For Mortgage Rates This Week – November 13, 2017

Last week’s economic news included a survey of senior loan officers, Freddie Mac’s average mortgage rates, and new jobless claims. An index reading for consumer sentiment was also reported.

Loan Officers: Standards for Residential Real Estate Loans Eased or Unchanged

According to the Federal Reserve’s Survey of Senior Loan Officers,72 institutions surveyed reported that all types of residential real estate loans saw easing of lending standards or no change in lending requirements. Demand for real estate loans eased, which likely influenced financial institutions decision not to tighten lending criteria for home loans. In contrast, banks surveyed indicated tighter lending requirements for auto loans and credit cards.

Mortgage Rates Fall, New Jobless Claims Rise

Freddie Mac reported lower average mortgage rates last week.30-year fixed rates averaged 3.90 percent; 15-year fixed rates averaged 3.24 percent and the average rate for a 5/1 adjustable rate mortgage rates averaged 3.22 percent. Discount points averaged 0.40 percent for 30-year fixed rate mortgages and 0.40 percent for 15-year fixed rate and 5/1 adjustable rate mortgages. Lower mortgage rates were good news for home buyers who continue to face high home prices coupled with competition by cash buyers.

First-time jobless claims increased by 10,000 new claims to 239,000 new claims. Analysts expected a reading of 231,000 new claims based on the prior week. The week-to-week reading, which can be volatile, was eclipsed by the four-week rolling average of new claims, which hit its lowest reading since March 1973.

The bump in weekly first-time jobless claims was caused by a backlog in jobless claims filed in Puerto Rico. In the aftermath of Hurricane Maria, Computer and infrastructure problems caused delays in claim filing.

Consumer sentiment dipped in November to an index reading of 97.8 as compared to an expected reading of 100.7 and October’s reading, also 100.7; Indicators of rising inflation concerned consumers, according to the University of Michigan, which conducts the survey.

Whats Ahead

This week’s scheduled economic news includes the National Association of Home Builders Housing Market Index, housing starts, building permits issued and weekly reports on mortgage rates and new jobless claims. Monthly readings on inflation and retail sales will also be released.

Learning to Love Technology: 3 Tips That Will Help You to Embrace Home Automation

Learning to Love Technology: 3 Tips That Will Help You to Embrace Home AutomationAre you still using a key to unlock your door and twisting a dial on the wall to set the temperature? Home automation technology has made considerable strides in the past couple of years so it might be time to invest. In today’s blog post we will explore three tips that can help those looking to make the leap into a fully automated home.

Tip #1: Start With Home Security And Go From There

Installing a modern home security system is the perfect place to start with home automation. Does your home already have an alarm? If so, it’s likely to be one of the older “set it and forget it” models. You punch in a four-digit code when you leave the house to arm the alarm, and if someone decides to break in while you’re gone the alarm trips and notifies the security company. Sound familiar?

The good news is that there are far better and more high-tech options on the market today. You can install cameras that connect directly to your phone, so you can see what’s happening inside of your house. You can automate turning the lights on or off, as well as deciding what panic options you need in case a burglar shows up.

Tip #2: Consider Using A Central Hub

If you’re not as technologically-inclined as some, then you may want to consider using a central hub to help control all of the other automated pieces in your home. Amazon’s Alexa is a popular option, as are Mi Casa Verde and SmartThings. The idea is that you can use one single device to control everything else, rather than trying to figure out a myriad of apps and settings.

Don’t forget that once you lock into using a central hub, you will need to make sure that any new pieces of tech you invest in are supported.

Tip #3: If It’s Easy To Use, You’ll Use It Regularly

Finally, be sure to test things out before you decide to buy. If a piece of home automation tech is hard to use, you’re unlikely to stick with it over the long term. Ideally, setting up and using the device should be no harder than using your mobile phone.

Getting started with home automation is as simple as following the three tips above. When you’re ready to explore purchasing high-tech, automated homes in the local area, contact us. Our professional mortgage team is happy to help you.

Taking Out a Mortgage for the First Time? Learn Why a Condo Might Be a Great First Home

Taking Out a Mortgage for the First Time? Learn Why a Condo Might Be a Great First HomeAre you starting to tire of paying your monthly rent to someone and never building any equity? Renting forever can be a significant pain, especially as you’re contributing to someone else’s financial well-being. The good news is that there are affordable real estate options out there for those investing in their first home. Below we will share a few excellent reasons why an apartment or condo might be the best choice for a first-time home buyer.

A Manageable Monthly Payment

In most markets across the country, condos and apartments are available at a significantly lower cost than a full-sized house. Buying a less-expensive home means that your monthly mortgage payments will, in turn, be lower. If you are single or a young professional trying to start a family, that extra money can be a massive boost to your monthly budget.

Note that while your monthly mortgage payment may be lower, you are still responsible for other maintenance and upkeep fees. The most common is known as a homeowners’ association fee, to which all condo owners in the same development contribute. These funds are used to upkeep the building or property as well as things like landscaping, a pool or gym, and other amenities.

A Smaller Down Payment

In the same vein, buying a less-expensive home also means that you can put a smaller down payment on it when you close the sale. In many cases you are required to place a certain percentage – typically 20 percent – down to avoid having to purchase private mortgage insurance. Having to commit less in your down payment leaves more money in the bank for other purposes.

An Excellent Future Investment Property

Don’t forget that when you are ready to upgrade and move into a larger house, you can keep a condo as a rental or investment property. Once your mortgage is paid off, you are only responsible for the monthly maintenance fees and taxes. So if you can rent the condo out to a tenant, you will have an excellent source of cash flow that can help to pay for your new home or fund other activities.

The above are just a few of the many reasons why a condo can be a great starter home for first-time buyers. To learn more about your mortgage options, contact us today. Our team is happy to help.

MyLenderSean.com is not a lender, but is the domain name and blog website for loan officer Sean Young (NMLS 191647 / LMB 100013240) who is an employee of Broker Solutions, Inc. DBA New American Funding an Equal Housing Lender licensed through NMLS 6606.
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