First Time Home Buyer

Top 5 Advantages of a VA Loan

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Being a military veteran comes with some great benefits, especially when it comes to home loans. Veterans who want to purchase a home can do so with a VA (Veteran Affairs) loan. The goal of the VA loan program is to make homeownership feasible for active and retired military personnel. The Department of Veteran Affairs makes buying a home easier for Veterans through the VA home loan program. Find out the top 5 advantages of the VA loan program:

  1. A Down Payment is Not Required- One of the biggest advantages of a VA loan is that a borrower does not have to pay any money toward a down payment. This is the only mortgage loan where a buyer does not have put money down to secure a loan. The reason for this is because VA loans are made by private lenders whereas for other loans the bank, mortgage company and other lenders put the funds toward the purchase of your home.
  2. Do Not Have to Pay Private Mortgage Insurance- VA borrowers do not have to pay private mortgage insurance if they do not have a 20% down payment toward their home. This is significant because private mortgage insurance can add $100 or more to a borrower’s mortgage payment each month. This benefit can save VA borrowers thousands of dollars over the life of the loan.
  3. You Can Use the VA Loan Benefit Numerous Times- A big misconception of a VA loan is that borrowers believe they can only use this program one time. There is not a limit on the number of times a borrower can use the VA loan program. Veterans who served our country earn this benefit for the rest of their life and can use this loan program as many times as needed.
  4. VA Loan Interest Rates Are Typically Lower- The interest rates for a VA loan are very competitive and typically lower than a conventional loan because it is guaranteed by the Department of Veteran Affairs. Since the Department of Veteran Affairs backs this particular loan, financial institutions feel more secure and can offer lower interest rates.
  5. Flexible Approval Guidelines- Veterans do not need to have perfect credit to secure a VA home loan because the Department of Veteran Affairs oversees the program. The Department of Veteran Affairs is not a lender and therefore it does not require minimum credit scores. This is a significant benefit because most conventional loans have a minimum credit score benchmark that must be met to receive a competitive interest rate.

If you are a Veteran and would like learn more about the VA program, give one of our senior mortgage specialists a call at (877) 788-4564 or to receive a free quote click here >> http://bit.ly/2iZFPFM

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What to Look for During Your Final Walkthrough

Luxury Home Interior

Luxury Home InteriorThe excitement of buying a house and transforming it into a home can sometimes result in the buyer making an irrational decision. Nobody wants to make an investment that they later regret, which is what the purpose of a final walkthrough is. What is a final walk through, you ask? Well, it is essentially the last chance you will have to walk around the premises with your realtor.

Unless you are aware of what to look for, there is a chance you might miss something, such as an underlying problem that could potentially turn into an expensive repair job. With that being said, it is crucial that you use this time wisely to ensure the property condition has not changed in any way since the last time you inspected it.

Here are the main things you must focus on for the final walk through:

  • Check Repairs – Should there be a problem, get an estimate of how long the repairs will take to complete, so that you can move into the house with no worries about the condition. In most cases, the owner of a property will arrange to repair visible and invisible problems prior to the moving in date. This is the time to check if the repairs requested were made. In the event that the repairs are not required until after the moving in date, a home warranty will cover it.
  • Check Appliances – There are several things you should inspect when you attend the final walk through. Failure to do so might result in you spending thousands of dollars for repairs once you finally move in. Flip the light switch on and off when entering every room, test all appliances, and flush the toilet. Heating and air conditioning may encounter a fault if the appliances are not maintained properly, too.
  • Check for Leaks – Did you know that a leak inside a property can cost you a lot of money? In fact, even the smallest of leaks can increase water usage by a lot. If you don’t take the time to listen for hissing noises, check the leak indicator on the water meter, and investigate the average water usage, it will be you who is responsible for funding the repairs, not the seller.
  • Check for General Damage – Make sure there isn’t any damage from when the offer was submitted to time of the final inspection. If the property condition has changed from the first time you walked around it, you have the right to request the property owner to pay for repairs. An insurance policy will come in handy if you notice damages after you have moved in. However, the type of coverage you receive will depend on state laws, so bear this in mind and contact a claim representative if in doubt.

Once you have completed the final walk through and have deemed the condition to be good, a contract will need to be signed. The contract addendum serves as proof that you are satisfied with the property. Furthermore, it confirms the completion of any agreed-upon repairs.

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Add A Personal Touch When Submitting Your Offer

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Business women hands working writing notebook on wooden desk, lighing effectJust because you have your eye on a property and have been shown around the premises by a professional real estate agent, it does not mean that you will be the only person interested in submitting an offer. In fact, there could be multiple people making an offer at the same time, which is why it is imperative that your offer really stands out!

It is rare for a buyer to offer the seller the asking price, with most buyers putting their haggling skills to the test in order to land their dream home for a desirable price. So, how can you peak the seller’s curiosity and improve your chances of receiving a positive response?

Capture the seller’s attention with a personal letter. A traditional tactic that has not lost its touch, personal letters can make you stand out among a sea of bidders.

How to Write the Perfect Personal Letter

Including a personal letter with your offer is known to help get an offer accepted. Below, we discuss the three main points to include in your letter:

  • Personal Information - Opening up to the seller will strike a chord with them. It will help them to get to know you, without even meeting you. Furthermore, it will allow them to make a choice based on who they would (ideally) like to transfer home ownership to. Including personal information in your offer letter that is related to your profession, your pets (if any), and your family size will make your offer stand out. Plus, the inclusion of personal information will prove to the seller that you are a serious and honest buyer.
  • Express Emotion - Connecting with the seller on an emotional level can be a challenge, but if you accomplish it, the chances of your offer being accepted are far greater. Perhaps you have decided to buy a new home so that you can use the leftover expenses to fund a relative’s surgery or a child’s college education? Maybe you want to relocate as a way of feeling safer in the neighborhood? Whatever your reason(s) for wanting to buy a particular property, don’t be afraid to express emotion in your letter.
  • Show Appreciation - It is nice to be nice! Even if the seller already has someone else in mind, this doesn’t mean that they don’t deserve some gratitude. After all, they invited you into their home and took the time to read your letter, right? Be polite and you never know – the seller could change their mind and accept your offer over someone else’s.

When you realize the difference a personal offer letter could make to your chances of being accepted for a property purchase, you won’t want to approach a seller without writing a letter ever again! A well-written letter that demonstrates your suitability for the house can be read over and over by the seller, thus enabling them to make an informed decision. After all, it is their pride and joy they are selling, so they won’t be willing to hand the keys over to just anybody.

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Millennials and Mortgage

Content couple eating pizza on floor

Content couple eating pizza on floorTimes are changing and so are the home buying options for millennials. Home ownership is a big stage to take. It means you are an adult and are responsible for making mortgage payments on your personal palace. A place to make memories with loved ones or witness your company flourishing (if you are acquiring property for business purposes), the investment is an exciting one.

According to Politifact.com, affordable housing is a challenge faced by many. In fact, less than 13% of millennials are proud to be homeowners nationwide. Nonetheless, homeownership options are being made available to millennials. Furthermore, financing is an option that could lead to you making the most important investment of your life.

Why are millennials such an integral component in the mortgage sector?

Everyone craves the American dream and millennials are no different. Home ownership for millennials aged 35 and under is decreasing, but things need to change. Younger people owning homes could mean fantastic things for the economy. Generally, a homeowner will have been born sometime between the 1980’s and mid-2000’s. For a huge chunk of them, now is the time to be starting a family and settling down.

Consider this – millennials account for approximately 80 million people in the U.S. alone. This is the largest population of them all! The more educated they are on the subject of financing, mortgages, and home ownership, the higher the chances of them standing out to a financing option for consideration.

Mortgage Facts Millennials Must Know

If you are on the fence about becoming a homeowner for the very first time, you should be up to scratch on your millennial mortgage knowledge. Property hunters aged in their 30’s are searching for a place to call “home” and this group of real estate-hungry people cannot be ignored. Take the following facts into account to ease your mind about mortgage approval for millennials:

Down Payments need not be huge. Millennials can get a chance at homeownership if they secure the investment by making a down payment on the purchase price.

Buying properties for lower prices could aid you in building equity. This equity can be put towards mortgage adjustments, should you wish to close one deal and start another.

Credit score does affect your eligibility. Nonetheless, there are a few ways in which you can build your credit score to avoid higher interest rates. Start making the smallest of repayments on any bills or outstanding debts you have to improve your chances at securing a home mortgage.

Separating the Myths from the Facts

Instead of becoming perplexed by the whole situation as a millennial in the home-hunting stage, know what is a myth and what is a fact. Below, we debunk some common myths:

Buying is more expensive than renting - No, it isn’t if you think long-term and select a low interest rate mortgage.

Payment for buying is higher - Not necessarily; some flexible loans have small starting interest rates.

The process is complicated – This is what financing experts are there for. They will guide you through the process seamlessly.

Since millennials are the biggest group of potential homebuyers out there right now, understanding what financing options are available is essential. In order for this to be achieved, not only do they need to be on top of their finances but also, they ought to proactively engage with lenders who can convince them to make that all-important transaction.

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Tips for First Time Homebuyers

loving couple looking at their home

It’s exciting to go house shopping; learning about the loan application, pre-approval and mortgage process isn’t quite as interesting. Still, educating yourself is an essential part of getting financing for your new home. Owning a home is one of the biggest financial investments you’ll make during your lifetime, so you might be feeling a little overwhelmed by the process. Check out a few tips for first time homebuyers that will make things easier once you do find the perfect property.

Run your credit report. Even if you regularly monitor your credit rating, you should run a report in the months before you decide to start house hunting. You want to have time to correct any errors or repair negative items well before you approach lenders for a mortgage. In addition, you should review your credit report to get an understanding of your credit rating. A score of 620 or more is probably enough to qualify for a mortgage, but you’ll get better interest rates the higher your rating. (more…)

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How to Make Buying Your First Home as Simple as Possible

Buying your first home is a huge milestone, and an incredible feeling once it’s completed. During the process, though, it can be kind of daunting. As an FTHB, how can you make things as simple and painless as possible? Here are a few tips.

Check Your Credit. When you apply for a home loan, the bank will run a credit check to see what your financial situation is, and how likely you are to make your mortgage payments on time. So that there are no surprises, do your own credit check first. There are a number of sites that offer a free credit report that you can look over. If it turns out your credit score is too low for a regular loan, you might consider applying for an FHA loan, which caters to those with lower credit scores and allows for a much lower down payment. (more…)

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Should you buy a Foreclosure or not?

Foreclosure - Paramount Equity®

buying a Foreclosure - Paramount Equity®With the housing market still down, and foreclosures common, many people wonder should you buy a foreclosure or not? While you can save a lot of money by purchasing a home that has been foreclosed on, it is important that you know how to buy a foreclosure to avoid pitfalls.

The two main issues with purchasing a foreclosed house is that you are not always able to inspect it before you purchase it. Additionally, if there are people living in the house when you buy it, you are responsible for evicting them. However, by using an experienced agent, you can avoid many of the problems associated with purchasing a foreclosed home.

To begin with, you should look for a real estate agent that has foreclosure experience. (more…)

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Buying Your First Home on a Limited Budget

Limited Budget - Paramount Equity®For many people, the dream of home ownership seems to be nothing more than that – a dream. If this sounds like you, it is time to change your way of thinking. You are probably wondering how do you buy a home on a limited budget. You are also probably wondering if buying a home with a low down payment is possible.

While it’s possible to buy a home with no money down, those types of programs are hard to come by. Most lenders want you to have some skin in the game. In this economy, even those with great credit scores are starting to be asked for down payments that they were never required to have before.

Pay

This is the time to make sure that all of your bills are paid (more…)

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