Throughout the home-buying process, you’ll be faced with many important decisions, and things can quickly become overwhelming and confusing. One decision that prospective homebuyers often get tripped up on is who they should work with. Should you go with an independent mortgage broker or work with a national lender? It can be difficult to determine which one will save you the most money and hassle, but there’s no need to worry. We’re here to help! In this article, we’ll take a look at the differences between independent mortgage brokers and national lenders and help you decide which one is best for you.   What is an Independent Mortgage Broker? An independent mortgage broker is a licensed professional who works with multiple lenders to find you the best deal. They act as intermediaries between borrowers (you) and lenders at the start of the home buying process all the way through to closing. Although mortgage brokers help you acquire a mortgage, they do not provide the funds for...

Do you ever dream of buying a beautiful, old house and fixing it up? Or do you find yourself struggling to find a move-in ready home? Either way, the FHA 203(k) loan is made for people like you. This amazing loan lets you borrow money for the purchase of property and its repairs in one bundled mortgage. You can also use this loan to refinance your current home. The repairs need to cost more than $5,000 in total. When you close on the house, the lender will put the repair money in an escrow account. The money is then disbursed as your contractors complete the work.  Because everything’s bundled, you only have one payment to worry about every month. And like all FHA loans, the barrier for entry is much lower than a conventional mortgage. Who Qualifies for an FHA 203(k) Loan? The Federal House Administration (FHA) designed FHA 203(k) loans with middle- and lower-income buyers in mind. The goal is to help more people find homes while naturally rehabilitating rundown...

When house prices shift, so do our standards for what we hope to buy. In this market, more people are having to consider houses that aren’t quite move-in ready. But if you’re already struggling to buy a house, you likely don’t have money saved for a bunch of repairs.  Thankfully, there’s a government-backed loan option that can help get you across the finish line. If you have low credit or savings, an FHA 203(b) loan can be a great home mortgage option. You can qualify with a credit score as low as 500. And borrowers with a credit score of 580 or higher only need a 3.5% down payment.  We’ve written about FHA loans before, but there’s a major perk many homebuyers still don’t know about. It’s the repair escrow. What is a Repair Escrow? A repair escrow is an account established at closing to pay for repairs after closing.  Here’s how it often works: Let’s say a homeowner needs to make repairs on their house to sell it, but they don’t have the necessary funds. They could...

When you buy a house, you may feel like everything about your mortgage is set in stone. But refinancing makes your mortgage far more flexible than you may realize. Need a lower interest rate? Want to pay off other debts faster? Regretting that you went for the adjustable-rate mortgage (ARM)? Refinancing lets you adjust your mortgage so it fits the needs and opportunities you have today. What Does It Mean to Refinance Your Home? When you refinance, you take out a new mortgage that pays for the old one. Then, you continue your payments on the new mortgage. Here’s how it works: You meet with the lender of your choice and explain what you’re looking for. If you don’t like the lender you used the first time around, you’re free to choose another one. The lender looks at your finances to assess what kind of loan they can offer — just like they did when you took out your first mortgage. If the lender can offer you a more favorable mortgage, they do! The new mortgage pays the remaining...

Last year, house prices rose by over 18% — so loan limits are rising with them. As a result, the Federal Housing Finance Administration (FHFA) has announced its largest loan limit increase in history.  This is big news if you’re planning to take out an FHA loan or a conventional loan. None of us knows how high house prices might go. But this adjustment to loan limits means you should still be able to get the mortgage you need. Let’s dive into what these loan limits are and what they may mean for you. Wait, the Government Can Limit My Loan? Contrary to their name, loan limits aren’t about keeping you from getting an amazing house. They’re actually designed to help as many people as possible get their dream homes.  You see, when you apply for a mortgage, you work with a lender or a bank. But lenders and banks don’t have unlimited money. And if they tied up all their money in people’s houses, they would quickly run out!  Here’s what they often do instead: Congress created...

     Have you thought about how you’ll use your tax refund? If you’re like most Americans, you want to be strategic with these extra funds. A study found that about half of consumers put their refunds in savings, and about a third pay down debt.  Those are great moves for future home buyers. But they aren’t your only options. Today, we want to share five ways you can use your tax refund to buy a house — and how even your savings can be strategic! Let’s get started! 1. Put Your Refund Toward Your Down Payment Every bit counts when you’re saving for a down payment. Contrary to popular belief, lenders don’t require you to have a full 20% down payment. However, they may have you pay for private mortgage insurance (PMI) if you can’t meet that threshold. PMI is a monthly payment you make, on top of your house payment, to insure the lender until you’ve paid off 20% of the house. So, the sooner you get to 20%, the better — and your refund can give you a big boost. The average tax refund is...

When it comes to securing a home mortgage, most of us are concerned about securing a good interest rate. But do you understand how your rate will be handled?  Most home loans come as a fixed-rate mortgage or an adjustable-rate mortgage (ARM). And while friends may strongly advise you toward one or the other, you need to understand the differences between them before you make a decision. What is a Fixed-Rate Mortgage? As the name indicates, a fixed-rate mortgage has an interest rate that will stay the same for the duration of your loan. It’s fixed in place, whether the term of your loan is 10 years or 30. The economy can’t touch it. These loans tend to have a higher interest rate because they have to be profitable for the whole life of the loan. With a fixed-rate mortgage, your payment is stable. Your property taxes and insurance payments may go up, but the payment on your loan is set until you pay it off. Most homebuyers opt for this type of loan, but an adjustable-rate mortgage...

Buying a HOUSE. Sounds a little intimidating, right? It doesn't help that almost everyone will tell you that buying a house is the BIGGEST purchase you will ever make. And you need to do RIGHT NOW for reasons ranging from “the rates are the lowest they’ve ever been” to “you want more kids so you might as well buy a house,” to “if you don’t do it now, you’ll miss your chance.” We’ve heard all the scare tactics. Is it possible that our culture has twisted the idea of buying a home into a bad thing? Owning a home is fantastic and has so many benefits that come with it, but why do we approach the topic with a scarcity mindset instead of an abundance mindset? What if there was enough to go around that you wouldn’t have to rush into buying a home you don’t actually love or that you’re not financially ready for yet? We want our clients and potential clients to retrain their brains into thinking of this market (and future markets) as the glass is half full, not half empty. You don’t have to...