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4 Types of Closing Costs You May Owe to Buy or Refinance a Home

Whether you’re buying a home or refinancing one, you know it’s going to cost you money. That’s why you need a mortgage loan! Of course, you probably need the loan to cover the house’s purchase price or its current value. But many buyers need their mortgages to cover closing costs, too. We at Volunteer Home Mortgage know the ins and outs of mortgage loans, and we want you to be prepared for closing cost expenses you may not have expected. What Are Closing Costs? What, then, costs so much “extra” money? What expenses do you owe to buy or refinance your home other than the purchase price? Well, obtaining a mortgage loan is not as simple as withdrawing money from your bank’s ATM. You must apply for a loan, be reviewed for a loan, and be approved for the loan. That process requires your lender to put in a significant amount of work on your behalf which will cost you money. After you are approved for the loan, the bank must make sure the house you are buying is worth the money you are...

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Residential Construction Loan Requirements

Residential Construction Loan Requirements

If you cannot find your perfect home, build it! Home buyers tend to dream BIG but end up making countless small compromises. But why? Why do people prefer buying a less-than-perfect house that is already built rather than building their “perfect” dream house? We at Volunteer Mortgage believe the answer is simple – most home buyers are afraid of construction loans. They have heard that building a house requires more money out-of-pocket, more paperwork, more proof of income, more closing costs, more work, and more headaches than buying a house. So let’s simplify construction loans. Let’s create a checklist of what you need to qualify for a residential construction loan. Choose a Plot of Land.After months or years of searching, you finally found the ideal land in the ideal location. Maybe your grandmother willed you a portion of her farmland, and you own the land free and clear. Or perhaps, you stumbled across the perfect greenspace to build your dream home, but you need a loan to...

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Volunteer Moving Checklist

The big day is here, finally! Your moving date is set, the house is closing, boxes have been packed. Now what? Volunteer Home Mortgage knows how much time and preparation goes into moving when you purchase a home. We want to make sure our buyers understand what to do once things start rolling. You can’t expect to remember everything, so here’s a checklist to make this transition as smooth as possible.   1. Give notice to your landlord It can be so easy to get caught up in the excitement of buying a home that you forget to notify the most important people! It’s crucial for you to communicate with your landlord at the correct time that you will be leaving the rental within a reasonable timeframe. If you’re in a 12 month lease and know that your lease will be up soon, that is a great time to alert your landlord. Don’t wait until the last minute and potentially risk damaging a good relationship.   2. Movers or no movers? As you get closer to your moving date, you’ll start...

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When should you refinance your mortgage?

Purchasing a home is typically the biggest financial decision someone will make in their lifetime. It’s important to be wise during this time and to also know your options as you embark on that journey. One aspect of being a homeowner is having the option at a later date to refinance your mortgage. Why would someone want to do that? As a homeowner, you do not have to pay the same amount of money every month for 30 years if you play your cards right! Although, the monthly payment is just one reason why refinancing is a solid option. There are many reasons why someone would want to refinance their mortgage. You can lower your monthly payment, get a better interest rate, and even change the type of loan that you have. When you refinance your mortgage, depending on your situation, you can really make your home work for you instead of feeling like you are at the will of your mortgage!   So, what does it actually mean to refinance? Refinancing your mortgage means that you get a new...

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3 Things You May Not Know About The VA Loan

A great benefit to being associated with the Armed Forces is having access to the VA Loan. The VA Loan gives families and individuals the chance to qualify for a low-cost mortgage, meaning, you aren’t required to pay as much money upfront, unless you want to!   1. What is the VA Loan? The VA Loan is a government backed loan that is solely for qualified veterans, active duty military, reservists, and spouses. Oftentimes, these military members will look like a risk to lenders when qualifying for a regular loan. But thanks to the VA Loan, lenders are offered specific guarantees which protects them despite the risks. Due to those guarantees, military members have a better chance of qualifying for a home and being able to afford it. 2. Benefits of the VA Loan? The VA Loan is considered to be a non-conventional loan because of the lower credit requirements. Not only is it beneficial for those with lower credit scores, but they include lower interest rates, no down-payment required at...

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Renovation Loans

So, you like the location of your home, you don’t want to move but you would really like to update the exterior or the interior!  Don’t worry, there’s a loan for that! Actually, there are many.  Avoid feeling stuck or unhappy in your house if you don’t have the money on hand to pour into renovations. Instead, take a look at these various options that give borrowers an opportunity to update their home, increase the value of their home and be happier in it! Home Equity Loan (HEL) Have you lived in your home for awhile? Enough time to build up substantial equity? This would be the loan for you if you’re looking for funds for a big one-time project.  With a HEL, you are borrowing against the equity you’ve built up over time.  Are you wondering how to calculate your equity? Assess your home’s value and subtract the outstanding balance due on your existing mortgage loan. With a low and fixed interest rate, this loan is perfect for a large sum of money and it’s also...

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What Are USDA Loans?

As more people flock to suburbs and major cities, the rural communities in the nation are often left with a dwindling economy and lower job opportunity. Because of this, families in rural areas typically have a lower income vs a family living in a popular suburb with a booming economy. The USDA loan is designed to help lower income families in rural communities, because of it’s zero down payment requirement. The USDA loans are issued through the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture. What is a USDA loan? The USDA loan program consists of three different kinds of loans. Home improvement loans and grants Much like the conventional renovation loan, the USDA also offers an option for those who would like to or need to update/repair their home. This program can also combine a loan and a grant for increased amounts. This is perfect for those in an older community where the standard of housing is very low and their options are...

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6 Things You Need to Know About Conventional Loans

We’ve all been at the stage of our adolescence where we watched TV shows and movies and thought to ourselves, “that’s the house I want one day.”  We genuinely believed that those “dream” houses on the screen were affordable for the average person because, well, the average person in the show lives there.  Before we knew it, we had grown up, paid our dues in life and soon realized that it was time to buy a house.  You quickly became aware of down payment requirements that you wish someone would have told you about years ago, credit scores that have more control over your life than you realized and something called PMI that everyone hates but always talks about.  How did those average people on TV afford such incredible houses?  We want you to get the dream home that you’ve had your heart set on for all these years. Although it may seem unattainable now, with our help at Volunteer Home Mortgage we will work with you every step of the way to get you there. First thing’s first though, we...

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FHA Loans

The thought of buying a home can be scary. All the paperwork, getting your credit in order, building up your savings for a down payment, getting approved or having the chance of getting denied for a loan. It’s all so… BIG. But, did you know that your down payment doesn’t actually need to be so big? And did you know that even if you have already owned a house, that you can use the FHA loan? MYTH-BUSTER: FHA doesn’t stand for “first time home buyer” but actually, “Federal Housing Administration!” There has been a major misconception about FHA loans over the years with buyers thinking that only first time buyers can utilize it. This couldn’t be further from the truth! Why is an FHA ideal? More lenient on your credit than a conventional loan 3.5% down payment (This can be a gift) with a credit score of 580 or higher (nerdwallet.com) You are eligible even if you had a foreclosure 3 years ago. Conventional loans require you to wait 7 years Possibility for lower mortgage insurance payments...

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Volunteer Home Mortgage

1033 W. Broadway Ave
Maryville, TN 37801