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How to Buy a House in 2022

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Buying your first home can be a roller coaster of emotions. This is especially true in these times of a competitive market, making 2022 a rough year to buy a home. It is imperative to understand the basics of the entire process thoroughly. This will help you and your family make an informed decision in the right direction. It is better to have the knowledge for the sake of your family and your financial situation. We have made a step-by-step guide for how to buy a house in 2022.

Step 1: Figure out your financial situation.

Before you start looking for a house, make a detailed and thorough analysis of your financial situation. It will help you make certain decisions easily. For example, you must ask yourself what your price range is, how much you are willing to pay as a down payment, what installments plan you will take, and so on. With all the basic questions answered you will have a clear vision of what you can afford.

Step 2: Obtain a pre-approval for a home loan.

For the first time home buyers, there is an excellent initiative that you can take advantage of including special mortgage plans like FHA Loans. They come with lower interest rates and down payments. With a credit score of 580, you can qualify for a down payment to be as low as 3.5%.

For example, through FHA Loans, you can get a $200,000 house with the installment as low as $7,000. That is better than the traditional 20% down payment rule.

Step 3: Get yourself a real estate agent.

An excellent real estate agent will get you through the technicalities and legalities of the home buying process. They will also show you around other properties in their listings that fits your requirements and agreed upon rates. A once arduous task will now be easy with the help of an experienced professional. The agent will also be taking care of all the paperwork for you, so you can just relax and look for your dream home.

Step 4: Make in-person visits to potential properties.

You can easily look up all the available properties on the internet, but we recommend attending open houses and checking out your potential home in-person. This will broaden your understanding of the market and you might discover some new things along the way. Going in-person to houses might help you get a great deal.

Step 5: Make an offer they can’t refuse.

At this step, we assume you have already landed on your favorite property. It is just a few steps away from being your dream home. This is where your agent comes in to assist. They can help with negotiating the price down. To be concise, make the homeowner an offer that they can’t refuse while still keeping your budget in mind.

Step 6: Close the deal.

It is time to close the deal. You have finally decided on the mortgage plan that you will opt for and have had the house appraised. Schedule a closing date with the home seller. Keep in mind that closing costs are approximately between 2% to 5% of the price of the house. Once it is all said and done, you will be handed over the keys to your new house and that’s how you become a homeowner.

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Conclusion

Buying your first home can be a tedious and nerve-wracking experience. All the technicalities and paperwork involved in the process are time consuming. It is better to have a professional take care of this entire procedure. American Mortgage Resource, Inc. is a licensed home mortgage broker with the best loan options and deals in the market. We will take care of everything in your home buying journey. The only thing that you will do is choose your favorite home. Check out our website or give us a call at (617) 972-8588 to avail our services.     

What Services Can You Expect From a Mortgage Broker?

If you’re about to buy a new home for the first time, refinance a mortgage, or even cash out your home equity, there’s a good chance you will need the help and services of an expert mortgage broker who can scour the market for you and look for the perfect deal that suits your requirements and your budget. We’re going to talk about the main services of mortgage brokers and the advantages of getting their assistance in your home buying process, so follow along in our blog.

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What Does a Mortgage Broker Represent?

To begin with, we all know that in the world of home loans, dealing with banks can be uncompromising for many people. Especially those who don’t have experience in such dealings. Here comes the critical role of a mortgage broker. A mortgage broker will handle all the exhaustive tasks of the mortgage process, from connecting borrowers with lenders to finding the best deals and the most suitable mortgage for the borrower’s financial situation. Also, their role becomes more important and useful in some complex mortgage dealings such as jumbo loans and refinancing loans. Which leads us to the next point.

Refinance Your Dreams!

If you have your sights set on a home that costs more than you can afford and you don’t have that much sitting in your bank account, no need to fret – a jumbo loan is here to help! You’ve heard it right. With a jumbo mortgage, you can borrow the amount you want even if that amount exceeds the limits set by the Federal Housing Finance Agency (FHFA). On the other hand, if you love your home and you just want to change the rate type or the loan term in order to lower your monthly payment, a refinancing loan is the best option for you. 

Learn more about how jumbo loans can benefit you here.

Conclusion

These mortgage processes can be tricky and risky if you do it by yourself. They require skills and deep knowledge in the business. That’s why our team is here to support you. American Mortgage Resource, Inc. has the most qualified and trusted team of mortgage brokers in the entire Massachusetts state. For more information, reach us at (617) 972-8588 and we will update you about all the necessary steps for the mortgage process.

3 Ways Mortgages Can Make You Rich

Many people think that investing is risky and tricky, especially when it comes to real estate investing. You can say that again, and the mortgage crisis that occurred in 2007 in the USA is a case in point. But did you know that mortgages are favored opportunities for investors after the COVID-19 pandemic? 

In this month’s post, we’ll show 3 incredible ways that can make you rich and earn money the easy way by investing in real estate. Strike while the iron is hot!

1. Buying and Repairing a House

For starters, like any investment, you have to do an in-depth study of the market and what 2022 holds for the real estate market by consulting with the most trusted name in the business near you.

You have to know that each property comes with its own set of challenges, like renovation and repairs. So make sure to consult with an expert in the business before you jump in and make any big purchase. One of the most important takeaways is that working with professionals in the real estate market will lead you to a boost in your profits.

2. Buying a Vacation Real Estate Property

A recent study reveals that Waltham, MA is one of the safest places to live in the United States. So certainly, there will be a lot of tourists looking for safety and comfort. Take advantage of being a Waltham, MA resident. Buy a property and rent it out to tenants for short periods or during holidays. However, choosing distinguished locations and dealing with a small number of tenants for a short period is the best formula to build your nest egg.

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3. Turning Your Property into an Airbnb

Airbnb is currently one of the most popular ways where property owners can make a profit, especially if it’s located in a prime location. All you have to do is register your house on the application and specify the type of housing you’re providing, such as a single room or an entire property, the property’s size, availability for rent, etc.

Related: Things to Know Before Turning Your Property into an Airbnb.

Learn More

In summary, people need to be consulted by a professional company that provides several services in the real estate market. In Waltham, American Mortgage Resource, Inc. is considered as the leader in the mortgage and loan business. Contact us at (617) 972-8588 or visit our website for more information.

Benefits & Downsides of Reverse Mortgages to Consider in 2022

Whether it’s a reverse mortgage or any other loan, they all have their own advantages and disadvantages. If you are under or over the age of 62 and have no idea about the pros and cons of a reverse mortgage, there is no need to stress. We’ll help you uncover some of the most important benefits and drawbacks that will help you save time and energy. 

Scroll down to learn more about it. 

What is a Reverse Mortgage?

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A reverse mortgage is also referred to as a home equity conversion loan. It’s a home loan that allows elderly homeowners to convert their home equity into profit without selling their property or the land they own. 

What Are the Requirements for a Reverse Mortgage?

A reverse mortgage loan comes with certain terms and conditions. Want to know which ones these are? Continue reading below:

1. The mortgage or the lender must be at least 62 years old to qualify for the reverse mortgage. 

2. To enjoy the benefits of the reverse mortgage, one must have at least 50% of the equity in the property. 

3. The house you plan to live in after retirement should be your primary residence. 

If you succeed in meeting all these requirements, then congratulations – you can easily benefit from the reverse mortgage. 

The Benefits of a Reverse Mortgage

Here are some of the main benefits and drawbacks of reverse mortgages:

  • Senior borrowers over the age of 62 or over are provided with a number of advantages. 
  • It can help you save money for an unexpected medical emergency. 
  • During the period of retirement, the reverse mortgage can provide financial independence and flexibility because the earnings from the loan can be easily used according to the borrower’s wishes. 
  • It can also facilitate an aging person or couple who are planning a house renovation. 
  • The money received from a reverse mortgage is often used by the borrowers to pay for their in-home care demands. 

Disadvantages of a Reverse Mortgage

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  • The costs and fees of a reverse mortgage are fixed. Therefore, it continues to be a major drawback. 
  • The possibility of losing a home through a reverse mortgage is also high. 
  • It’s not free at all. There are several hidden expenses that are linked with it. Plus, you have to manage your taxes, insurance, and HOA fees, along with the payment of upfront insurance premiums. However, it can be roughly 2% of your home’s appraised value. The closing fee is also included and needs to be paid. 
  • It can also affect other retirement program benefits, such as Medicaid or Supplemental Security Income (SSI). 
  • Consulting and seeking help from a specialist is a must before you make any decision that can compromise your benefit eligibility. 
  • If you’re planning to leave your completely paid-off home to your heirs, then a reverse mortgage would not be a good option to consider. 

Where to Learn More About Reverse Mortgages?

Whether it’s you or anyone else planning to consider a reverse mortgage, we suggest you consult with a trusted advisor. We would recommend you consider American Mortgage Resource, Inc. We are well-known for being a trustworthy place where you can get exact information about some of the best loans available in 2022. Call us at (617) 972-8588 to speak to a loan expert.

Open House Red Flags to Watch Out For

Touring open houses can be exciting as you consider the prospect of finally becoming a homeowner. However, you should be prepared to look into many different properties and spend some time inspecting the fine details. While homes on the market will look great presentation-wise, lazy sellers may be hiding disastrous and costly flaws. Here are some red flags you should always look out for when inspecting a home for sale.

Cracks in the Floors and Walls

Any cracks in the floors or walls indicates that there might be structural problems at hand. Additional things to look for are sticking doors or windows, cracks along window frames, and uneven floors or tiling. Any major gaps will lead to costly and extensive repairs.

Any Unusual Paint Cover-ups

It’s expected that when it comes to preparing a house to sell, applying a fresh layer of paint to the interior and exterior walls is a common practice. As a potential buyer, you definitely want a home that has been properly refreshed. However, some sellers may use paint to cover up problems rather fix it. This can include hiding any mold and mildew spots, water damage from leaking pipes, termite damage, etc.

If you notice unusual fresh paint spots, it may mean they’re trying to hide something – especially if it looks like it’s an older home that hasn’t been renovated. You should ask the seller why the job was done.

Electrical and Plumbing Issues

When doing your walkthrough of the open house, always remember to check the condition of the electrical panel, any exposed wires, the number of outlets in each room, and any other potential hazards. You’ll also want to eyeball the plumbing such as the pipes under the sink. This is a common place for leaks and water damage.

Hire a Professional Home Inspector

You may think you have a good eye, but home inspectors are trained to have an even keener perception. Appearances can be very deceiving, and an expert will be able to identify any major flaws that the seller or landlord is trying to cover up. This will save you a lot of money down the line and give more leverage in potentially renegotiating the offer on the house. If the home inspector identifies any drastic problems that will be more than you can handle, it’s better to just walk away and consider a different house.

Conclusion

We hope these tips will assist you in finding your dream home within your budget. If you’ve finally settled on that perfect property and are now looking for financing and loan options, our professionals can help. American Mortgage Resource, Inc. is the number one source for reasonable home loans and expert support. Get in touch with our team today!

What Does 2022 Hold for Real Estate Market?

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The COVID-19 gave wings to the real estate market in 2021 and it soared high. Low interest rates paired up with the shortage of inventory made the market way too competitive. One wonders, if 2022 will follow into the similar footsteps, as marked up prices and low inventory result in faster turnarounds. 2022 is being predicted as, again, the year of home sellers.

  1. Supply-Demand Upset:

The inventory available in the market is still too scarce to meet the rising demand of the living spaces. Due to COVID-19, the labor has been short hence the production has slowed by huge margin. There are likely to be more listings during the prime season, but it is still might not meet the growing stipulations and concerns.

2. Rising Interest Rates as Silver Lining:

 It is a known fact that the interest rates will be increased this year as well. In conclusion, mortgage rates will rise with them. Now, it is not necessarily a bad thing because people who buy houses with higher mortgage rates tend to live in them rather than flipping them over for profit. It’s good news for the average buyer and will hopefully stabilize the real estate market.

Conclusion:

In such uncertain times, first-time homebuyers need to be very careful when looking at their prospects and options. Even with the elevated prices, one should not be overpaying for the property. That’s where we come in. American Mortgage Resource, Inc.  is a trusted name in the real estate market. We cater to all the people, whether they are first time home buyers or seeking loans and other finance options. Contact us at (617) 972-8588 and we will help you in buying your dream home.

4 Factors to Consider Before Getting a Mortgage

Buying a house is one of the biggest financial decisions that you can ever make, and therefore you need to make an informed choice. This is critical, especially if you will get your house on mortgage terms. There are several steps that you need to follow before you can begin the process.

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  • Start by Checking Your Credit Score

Before you can start a mortgage application, the first thing that you need to do is to check your credit score. A higher credit score plays a significant role in your mortgage approval process. Before any lender can approve a mortgage, the first thing that they do is to check the creditworthiness of an individual. Ensure that your credit score is accurate to increase your chances of approval.

  • Larger Down Payment

When you make a large down payment for your mortgage, you get better terms. Putting more money as a down payment ensures that you pay less every month. This simply means that if your down payment is high, you do not require as much money from your lender. In addition, the lender considers you as a lower-risk borrower.

  • Steady Source of Income

Besides the lenders accessing your credit history and the ability to make a down payment, they also review the employment history. This is to ensure that you have a steady source of income every month and that you can service your loan. Therefore, it is best to avoid switching careers or changing jobs when you are activity looking to buy.

  • Check Pre-Payment Penalties

You need to check with your lender if you will incur penalties for early loan repayment. Some homeowners, once they experience a cash windfall, may decide to double up their payment, clear the loan sooner and end their term. Check to make sure that if you decide to do the same, you will not incur any pre-payment penalties.

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Conclusion

Homeownership is a dream come true for most people. However, sometimes a mortgage is the only option to getting your dream home. The terms of getting a mortgage can sometimes be complex. Therefore, it’s advisable to speak to mortgage professionals at American Mortgage Resource Inc. We can advise you on refinancing your mortgage, buying a new home, and cashing out on your home equity, as well as assist you to apply, qualify, and get approved for a new loan.

Things to Know Before Turning Your Property into an Airbnb

Establishing a side hustle is a goal that many people try to strive for, especially for that extra stream of income. Some turn to becoming an Airbnb host, because after all, it can be a very successful opportunity in well-traveled locations. While turning a second property into an Airbnb can be a very lucrative investment, it also comes with its own set of challenges. If you’re interested in becoming an Airbnb host, here are some things you should know before making that investment.

Research Your Location

For starters, you have to determine if the location of your property has a lot of demand. Are you located near tourist hotspots? Is your potential Airbnb near public areas such as restaurants and grocery stores? These are just a couple of questions you should ask yourself in order to determine if hosting in the area is worth it. Keep in mind that the earning potential for your property is largely determined by location and demand for travel.

Another thing to check is to make sure it is legal to host in your area and what requirements you need to meet. In many cases, the city needs to be informed that you plan to rent out your property as an Airbnb and some paperwork will be in order. If applicable, also be sure to check any rules enforced by the homeowner’s association, condo board, or landlord.

Decorating and Marketing

Airbnb hosts actually have to invest a great deal of money into their property to enhance its attractiveness to travelers before gaining profit. Redecorating and cleaning is the first task on the agenda. Your Airbnb should start from a clean slate and include relatively new furnishings and household equipment that are comfortable and high quality. Interior design is extremely important and should appeal to a wide target audience – not just you. Hosts can also consider consulting with professional interior designers for advice.

You will be competing with other hosts in the area, so you’ll need to have good marketing on your listing. It’s worthwhile to invest in a professional photographer for a comprehensive photoshoot. Visuals are everything and your first impression will be through digital photos. Always try to highlight unique aspects including your décor and amenities. In addition, it’s always good to have descriptive listings describing your space as best as you can. Be clear about what you’re offering in order to manage your potential guest’s expectations.

Have Good Amenities and Plentiful Supplies

If you want to host an Airbnb, never skimp on your amenities. Travelers are looking for a comfortable place that meets all of their needs and requirements while they’re on vacation. At the very least, having fast and strong WiFi is an absolute must. Another great thing to have is a Smart TV with integrated services such as Netflix, Hulu, Disney Plus, etc. You can also go the extra mile and pay for a streaming service for your guests to use. If you’re still in the market for a property, owning a place with unique amenities such as a pool or hot tub can be a great bonus on your listing.

You are also responsible for double checking stock and supplies before your guests check-in. They should not have to run to the store just because you don’t have the basic essentials. Here is a quick checklist to go over:

  • Toiletries (shampoo, soap, toilet paper, etc.)
  • Hangers
  • Hair dryers
  • Towels and hand rags
  • Extra blankets, pillows, and linens
  • Kitchen supplies and pantry staples (salt, pepper, oil, etc.)
  • Water and ice trays

Hosts Must Always Be Available

During the course of a traveler’s stay, anything can come up at any time. Perhaps the AC unit isn’t working or they need more bathroom supplies. As a host, you will be their point of contact for anything that they need. You are expected to remain attentive and available for your guests, morning or night. Providing great customer service and fast responses plays a major role in how well your guests enjoy their stay. The difference between a good and bad review can affect your profitability, reputation, and future bookings.

Conclusion

Remember that in order to gain profit from renting out an Airbnb means that a lot of work needs to be put into it. If you’re ready to take on these challenges and are set on investing in a second property, American Mortgage Resource, Inc. can help you find the best loans. Feel free to visit our website to learn more. Consult with our loan experts today!

Responsibilities of Being a Landlord

Becoming a landlord is an investment that will bring in another stream of income as you rent out your property to eager tenants. However, it also comes with a multitude of responsibilities that you are legally obligated to commit to. Your top priority is to provide a reasonable and safe living space that includes security and maintenance. If you’re interested in becoming a landlord, continue reading to learn more.

Provide a Habitable Living Space

As landlord, you must ensure that your tenants have access to a clean and comfortable living space. Depending on local laws, you are obligated to maintain the property and keep it up to standards. This includes:

  • Ensuring all structural elements are safe and intact.
  • Keeping the plumbing, electrical, heating, and ventilation in good working order.
  • Supplying trash cans and dumpsters.
  • Eliminating any vermin or infestation.
  • Following safety codes and disclosing any history of hazards such as asbestos, lead paint, bed bugs, etc.
  • Maintaining any common areas.

Ensure a Quiet Living Environment

It’s best to foster a peaceful community so all tenants can enjoy their residence without conflicts. Landlords should consider specifying in their lease that tenants should maintain a reasonable noise level so others are not disrupted. This will increase your reputation as an amicable place to live and attract more renters. 

Maintain Tenant Safety

Maintaining safety is one of your most important responsibilities as a landlord. You are obligated to ensure all tenants are safe and that your property is well-monitored. The legal requirements may vary depending on the local law but regardless of where you live, here are some things to take into account:

  • Double check all locks on doors, windows, and garages. Remember to rekey or replace locks after an old tenant moves out.
  • Ensure common areas such as the parking lots are well-lit and monitored with cameras.
  • Make sure all units have functioning smoke and carbon monoxide detectors. Other safety and rescue equipment like fire extinguishers must also be easily accessible.
  • Supervise hired personnel such as contractors, plumbers, electricians, etc.

Perform Repairs and Maintenance

Landlords must respond to any issues that may impact a tenant’s quality of life. Urgent repairs for electricity, plumbing, mold, and so on should be addressed as soon as possible. For most major issues, you should respond within 24 hours of the complaint. Response times can vary for lesser concerns but its best to handle it quickly to prevent further damage. Another thing to remember is that unless it’s an emergency, landlords should notify tenants ahead of time before entering the rental property and should only visit during reasonable day time hours.

Track the Unit Conditions

When tenants move out, landlords are responsible for repairing anything that is considered normal wear and tear such as repainting scuffed walls, replacing damaged carpets, repairing loose or worn hardware, and more. Keeping a checklist of the unit’s condition when a tenant moves in and out can help keep track of things to review. Landlords can also collect a security deposit to cover any damage exceeding normal wear and tear.

Conclusion

There are many things landlords are responsible for and local laws can have additional things to keep track of. If you’re ready to become a landlord and you’re considering a second property to rent out, consult with American Mortgage Resource, Inc. Over the years, we have helped numerous homebuyers and homeowners with their mortgage and financing options. Learn more by visiting our website and schedule an appointment with an expert today.

How Do Fixed-Rate and Adjustable-Rate Mortgages Work?

When talking to a lender, there are two basic type of mortgages they will offer you. These are called fixed-rate and adjustable-rate mortgages. For most homeowners, fixed-rate loans are preferable if they plan to live in the home for an extended time. However, adjustable-rate mortgages are also offered for those who want lower interest rates with a shorter loan term. Keep reading to learn more about these two mortgage loans and see which one is right for you.

Fixed-Rate Mortgage

As this loan implies, the rate for the mortgage is fixed, meaning that it does not change for the life of the loan. Likewise, the monthly payment remains the same too. Repayment of a loan can range from 30 years to shorter lengths of 10-20 years. If you do choose a short loan term, understand that you will have larger monthly payments, but lower total interest costs over time. On the hand, a longer loan term with lower monthly payments is a more desirable option for committed buyers.

Adjustable-Rate Mortgage

If you plan to live in your home for a few years, then an adjustable-rate mortgage, or ARM, may be more suitable for you. Since the monthly payment is not set, it will change over the life of the loan. Rates for the loan will also fluctuate, although there is usually a limit on how much it will go up or down. “Lenders often offer lower interest rates for the first few years of an ARM, sometimes called a teaser rate, but rates can change after that– as often as once a year. The initial interest rate on an ARM tends to be significantly lower than that on a fixed-rate mortgage.”

Conclusion

Before making a big decision on a mortgage loan, make sure you are informed first. At American Mortgage Resource Inc., we offer the lowest competitive mortgage rates in Waltham, MA and surrounding areas. Let us help you choose the right home loan by contacting us at (617) 972-8588. You can also find more information on our website visitamr.com. Call today!

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