American Mortgage Resource, Inc.

Providing the Best Financial Resources for Boston and Massachusetts

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How to Know If You’re Buying the Right Home

What steps are you taking to ensure you are not buying a faulty home? When purchasing a home, it could be nerve-racking because of the financial commitment that is required. The time you invest in a house could be a few years or a lifetime. Many factors come to mind with purchasing the right home, such as the size, design, quality, and location of your home. All these elements define your future life and the comfortability that you will enjoy with your new home. Also, you may want to think about if your preferences will change over time. It is not necessary to get crushed by all weight of all these things to consider. It would be best to have a checklist, an understanding of numbers, and knowing your particular tastes.

Home Aesthetics

The architectural wishes of an individual are the starting line for choosing the perfect home. The best plan to take is to make a checklist before making any rash decisions. A person needs to contemplate what they desire, such as the number of bedrooms. It is crucial to consider the size of shared spaces like the kitchen, living room, and even back porch. Bearing in mind family gatherings, this will allow the house to bring comfort and breathing space.

Additionally, narrow hallways might not be an individual’s cup of tea. Potential homeowners need to look at the convenience of the house as well. They need to look at the floorplan, cabinetry, kitchen style, window lights, and so much more. It is essential to ask these important questions when evaluating a house because it will shape the home experience.

Making an Offer

Future homeowners who find their perfect house that consists of all their needs, wants and desires need to offer confidently. Putting an offer down can be challenging—however, read through the checklist to ensure that the house is the right home. Going back to the list can confirm that the house has the correct amount of rooms, space, size, aesthetics, and more. A prospective homeowner should walk through the house and imagine what life would be like. They need to open the cabinets, explore the closets, and try to look for a reason not to purchase the house. In the end, a perfect home is a perfect home. A homeowner should put down a bid without any doubt.

The Numbers

Budgeting is vital in making any significant and costly decision. An individual needs to know the numbers of expenses and their realistic price range. The budget needs to consist of escrow, real estate price, mortgage interest amount, and closing costs. Also, the house may need minor repairs, upgrades, or renovations after moving into a home. It isn’t easy to know all the numbers of a house, but some professionals can help you understand what you need to consider before buying a house.

Conclusion

If you’re deciding between several houses, it can feel overwhelming. However, when you have a checklist and know the numbers, it can make everything a lot easier. Find the best financial strategy in negotiations, bidding, and mortgage by visiting American Mortgage Resource, Inc. We specialize in home loans for home refinancing or first-time buyers with very competitive low mortgage rates in Waltham, MA, the Boston area, and the entire Massachusetts state.  Contact us at (617) 972-8588 to learn the appropriate loan program for you.

The Massachusetts Housing Market in 2021

This year as Massachusetts slowly transitioned from winter to spring its housing market also experienced a noteworthy shift. Within the first quarter of 2021 the real estate market in The Bay State has made countless headlines, most deeming it as ‘white hot.’ Follow along this month as we provide unique insight about the market’s current climate, when to buy or sell, how to win a bidding war and where to go for financial help.

Supply vs Demand

At the moment Massachusetts is experiencing an unprecedented demand for homes in a market with what presently seems like has little to no supply to offer. These circumstances are making it increasingly difficult for bids from potential home buyers to be accepted. There are even reports of some homes being bought for as much as $100,000 over asking, and others that have received nearly a dozen offers within days of hitting the market.

Should You Buy or Sell?

The incredible demand for homes across the state have left many residents wondering whether or not it’s a good time to make their real estate move. While rising property values are tempting many homeowners to sell, the likelihood that their home will be bought swiftly is a very real possibility to consider. On the other hand, those hoping to purchase a home should to be prepared to act quickly, face hefty competition, and have a strategy for being successful in the likely event of a bidding war.

How to Win a Bidding War

In today’s climate home buyers need to be ahead of the competition to ensure their bid will be accepted first. The following tips and tricks will immensely help increase your chances of closing on the home of your dreams:

  • Provide a preapproval letter from a mortgage lender
  • Write a personal letter to the home owner
  • Skip the inspection
  • Drop any contingencies
  • Offer all cash

Final Thoughts

Stay ahead of the red hot housing market in Massachusetts this year will professional financial help from a local broker. For more than a decade the loan experts at American Mortgage Resource, Inc. have helped thousands of local residents acquire the loans they need to renovate, refinance, and purchase their dream homes. Contact our team Monday- Saturday at 617-972-8588 or anytime via email at info@visitamr.com.

USDA First Time Buyer Program

Buying a home in America is never a simple process, especially when purchasing a new house.  For U.S veterans, the USDA loan is a highly prominent option for 100 percent financing.  The program permits first-time buyers to obtain a home with minor or zero percent down.  Here are some valuable details about the USDA program.

Home Location

            According to the USDA map, veterans purchase a home in a rural approved area.  Rural areas are not always farm and agricultural lands. For Massachusetts residents, living in populated areas such as Boston, Springfield, or Worcester will not happen. Many outside surrounding suburbs in these cities are still eligible for USDA RD like Greenfield, Ware, and Franklin. There are many options outside the state like Woodstock, CT, or Rockingham, NH.

Household Income

The USDA program has income set limits established for each county, and every income-producing member of the household is part of the application process. The income limits starts around $93,000 per year. The gross USDA household must be below $93,000 for families that have one to four people. However, some counties have a higher income limit. The limit increases drastically for any households that have five or more. First home buyers need a 620 or greater credit score to apply for most lenders, banks, and brokers.

Benefits

            There are many benefits for first-time buyers who are approved. First, they can get 100% financing that has a limited amount of money. Additionally, schoolteachers, firefighters, and police officers can benefit from this program. No bond money or down payment is required. Secondly, there is not a particular class for approval of a loan. Thirdly, the USDA program allows the home seller to pay all your closing costs. Lastly, the program offers low fixed interest rates where buyers do not need to worry about monthly mortgage payment changes.

Conclusion

The USDA first-time buyer program can assist you with buying a new home.  At American Mortgage Resource, Inc., we can help you benefit from this program. Visit our website to learn more information about getting a great deal for a new home.

Tips for First Time Home Buyers

Being a first time home buyer has never been more confusing and convenient at the same time.  The most crucial aspect to home buying, for first time buyers especially, is adequate and thorough preparation. In this month’s blog we discuss a few ways first time home buyers can qualify and get approved for an affordable mortgage at a great, low rate.

Strengthen Your Credit Score

Typically, establishing and strengthening a credit score can take years of effort, however there are several steps you can take to give it an impressively quick boost. You can finesse your credit score today by disputing any damaging errors in your report, keeping credit debts at or below 30% of their limits, making all payments on time, and for some opening a new line of credit can help too. Keep in mind that in addition to analyzing you and your partner’s credit scores, lenders will also consider your income-to-debt obligation ratio.

Save, Save, Save!

The best tip for first time home buyers is to save as much cash for a down payment as possible. The higher the amount put forth the better chances a first time home buyer will get approved with a competitive rate. Plus, the cost of the down payment isn’t the only expense to consider saving for, as there are often significant closing costs and move in expenses involved with home buying as well.

Explore Mortgage Options

In recent years more and more programs have become available to make home buying attainable for more first time buyers. These programs will often allow new buyers to qualify for mortgages with down payments as low as 3% down. First time buyers should be aware that some mortgage brokers will only accept these types of loans when private mortgage insurance (PMI) is also acquired. 

Final Thoughts

American Mortgage Resource is a home mortgage broker that specializes in home loans for first-time buyers, with very competitively low mortgage rates in Waltham, MA, the Boston area, and the entire state of Massachusetts. Despite your individual circumstances we will help you qualify, apply, and be approved for the right mortgage loan for you. Contact our team today for more information by visiting our website or calling us at (617) 972-8588.

Five Mortgage Terms to Know

Are you in the process of buying a new home? When you’re talking to real estate agents and lenders, they are probably using terms in conversation that you have never heard before. You may hear terms such as “closing costs” and “escrow”, which is why it’s important to know some basic mortgage vocabulary so you don’t have to ask too many questions. In addition, purchasing a home is a big commitment, so you want to understand exactly what’s going on. In this blog, we discuss five mortgage terms you should know!

AMORTIZATION

When you are making equal payments towards the principal and interest, this is called amortization. You are essentially paying towards the interest in the beginning of your payments, but as the loan gets smaller, less interest is charged. It’s a gradual reduction of paying your debt over time.

CLOSING COSTS 

The money you need to close the mortgage deal is called closing costs. These costs include everything from title insurance and escrow fees to lender charges and transfer taxes. FYI: All closing costs will be listed on the loan estimate that the mortgage lender gives you within three business days of your application.

EQUITY

Equity is the difference between what you owe on your home and the current market value. As you pay your mortgage, the equity grows. You can tap into this value over time. For example, you can apply for a home equity loan, a home equity line of credit or a reverse mortgage.

ESCROW

Escrow is a legal arrangement in which a third party temporarily holds large sums money or property until a particular condition has been met.” In real estate, escrow is used to protect the buyer’s deposit so the money goes to the right party according to the conditions of the sale. It also holds a homeowner’s funds for taxes and insurance.

TITLE INSURANCE

Title insurance guards against any disputes about the title, such as contractor liens or tax. It is a way for lenders and owners to protect themselves from financial loss and other related legal expenses.

Conclusion

At American Mortgage Resource, Inc., we are here to guide you through important financial decisions when it comes to buying a home. Let us help you with the home mortgage process and contact our team of professionals. Call us at 1-617-972-8588 or send us a message online!

Highlights & Drawbacks of FHA Loans

According to Bankrate, “An FHA loan is a government-backed mortgage insured by the Federal Housing Administration, or FHA for short.” These flexible loans allow you to have a better chance at qualifying for a home loan. From low-credit scores to a minimal down payment, an FHA loan gives you the opportunity to become a homeowner. How so? Follow along in our blog as we discuss the highlights and drawbacks of FHA loans.

The Highlights

When you are in the market to buy a home, it can be difficult to find a home loan if you have poor credit or a small down payment. However, with an FHA loan, you can qualify and even get a decent interest rate too.

  • Credit Score: Bankrate states that a FICO score of 500 to 579 is needed with 10 percent down. For scores 580 or higher, a payment of 3.5 percent down is required. If you’re someone with a credit score in this range, you can be approved. Even borrowers with a history of bankruptcy or foreclosure get approved.
  • Down Payment: Don’t have a lot of cash for a down payment? Then an FHA loan might be right for you. You can put little down and still have funds leftover for other financial investments.
  • Renovations: If your property needs renovations, FHA 203(k) loans allow you to fund home improvement projects and purchase a house at the same time. This loan is simple to qualify for and is relatively affordable.

The Drawbacks

Although FHA loans are attractive to many first-time buyers, they aren’t for everyone. It’s important to take a closer look at what this loan entails.

  • Mortgage Insurance: With an FHA loan, you will be required to pay an upfront premium and a monthly premium. The upfront premium costs can be included in the FHA closing costs OR rolled into the loan amount. For monthly premiums, this fee will vary.
  • Limited Loan Choices: There are two basic choices when it comes to FHA loans: 15-year or 30-year fixed rate loans. This may be fine for one borrower, but may discourage another borrower if they are looking for something adjustable/interest-only.

The Verdict

At American Mortgage Resource, Inc., let us discuss your loan needs together. From FHA loans to conventional loans, we want to find the perfect loan for you. Contact our team of professionals at (617) 972-8588 for more information about our affordable loan programs. We look forward to speaking with you soon!

Reasons Why Your Mortgage Application Could Get Declined

When you are trying to apply for a mortgage, you want to do everything by the book to be approved. However, there are instances where a mortgage lender will deny an application. From bad credit to an insufficient down payment, you don’t want to fall short with certain requirements by the lender. Learn more about why your mortgage application could get declined.

Low Credit Score

The higher your credit score, the better chance of securing the mortgage you want. On the other hand, if you have a lower credit score, you may not be approved. The minimum credit score depends on the lender and type of mortgage, so be aware this can range anywhere from 500 to upper 600’s. Yes, you can be approved with a low credit score, but the lender might ask you to make a bigger down payment.

High Debt-To-Income Ratio

How much of your monthly income goes to monthly debts? The lender will review the percentage of this ratio and determine if you are able to make loan payments too. Experian comments, “It may be harder to secure a loan if your housing payment is 28% or more of your gross monthly income (31% or more if you’re applying for an FHA loan).”

Small Down Payment

Applying for a mortgage loan is a big commitment, as you and the lender already know. That’s why putting more money down for the loan indicates that you are serious. It will also improve your chances of being approved. Tip by NerdWallet: “Putting at least 20% down on a home will increase your chances of getting approved for a mortgage at a decent rate, and will allow you to avoid mortgage insurance.”

Missing Application Information

It’s key to look over the information on your application before submitting it. If you are missing important details, then you can be denied approval. Review your application carefully by yourself or with another person you trust to ensure you have everything ready to go.

Final Thoughts

There can be a lot involved when applying for a mortgage loan. Luckily for you, American Mortgage Resource, Inc. does the heavy lifting for you. We have simplified the application process so you can fill out information online, at your own pace. If you have any questions about your app, please contact us today!

The Time to Buy a Home This Holiday Season is Now

In the United States as the winter months bring festive holidays like Thanksgiving and Christmas, many families are so busy and preoccupied that home sales will dip slightly. This makes now a good time to snag a great deal on a home this winter. Below are some factors to consider before biting the bullet on home ownership or moving to another home.

Less Competition as a Buyer

During this time of year it tends to get colder in many parts of the country. Not many people enjoy picking up their family and belongings and moving during these colder winter months, which creates less demand in the market for sellers. This increases the chances of getting a great deal as a buyer as less people are competing in the real estate market at this time.

Interest Rates Are at Record Lows

As the Coronavirus closed many businesses for extended periods of time, this year interest rates have seen record lows to spur the economy during this downturn. What that means for homes buyers is that borrowing money is nearly free thanks to these record low interest rates on mortgages. This is likely the lowest we will see rates for years to come and locking in a fixed rate mortgage is sure to save you thousands of dollars in interest in the future.

Buyers Want to Sell Quickly

Buyers in the market during this time are usually more likely to turn their property over as quickly as possible due to the time of year and other obligations this time of year brings. This means that you may have sellers that are more motivated to make a deal with you and help you secure your next home.

Final Thoughts

Though this year has brought many ups and downs, as we head into 2021 home buyers have unique opportunities to purchase and refinance homes at rates that are incredibly rare. Let American Mortgage Resource, Inc. be your one stop shop for all your mortgage and refinancing needs in the Waltham, MA community.

Differences Between Commercial and Residential Lending

Residential and commercial lending are not created equal for many reasons. Commercial lenders will often take a much lower risk then residential lenders are willing to take. Below we discuss some of the major differences to expect between commercial and residential lending.

Commercial

Income Qualification: In order to qualify for a commercial loan the lender is going to mostly take into account how much income your company generates versus the cost of the property.

Down Payment: Commercial loans typically require a much larger down payment than residential loans require. This is mostly because the commercial real estate market is much riskier so most commercial lenders will require at least 20% down.

Length of Loan: Again because commercial loans typically involve a much higher risk, the length of commercial loans are typically significantly shorter than those of residential loans. Most commercial loans will need to be paid within ten years.

Residential

Income Qualification: When applying for a residential loan lenders will mostly only take into consideration an individual’s income versus their current outstanding debts.

Down Payment: Those with good credit scores can typically negotiate a lower down payment on a residential loan. Lower down payments are often offered as long as a private mortgage insurance is also paid.


Length of Loan: Typical conventional residential home loans will have a 30 year term. Sometimes these loans can allow for a length negotiation depending on the borrowers financial standing.

Final Thoughts

After a while, commercial and residential property owners will have options when it comes to refinancing their current loans. Refinancing can not only help reduce monthly payments and interest rates, but make it possible to reinvest into your property too. Call American Mortgage Resource, Inc. to learn more about our quick and easy refinancing options.

The Best Ways to Use a Home Equity Loan

What are you envisioning for your home? Are you looking to renovate the kitchen? Perhaps replace the garage door? To fund your house projects, you can find financial support through a home equity loan. Bankrate comments, “Tapping your home equity can be a convenient, low-cost way to borrow large sums at favorable interest rates in order to pay for home repairs or debt consolidation.” Continue reading to learn about more ways you can use your home equity loan.

Home Improvements

Financing large projects is feasible with a home equity loan. With fixed monthly payments and a large sum of cash up front, you can pay for projects like a kitchen remodel, bathroom renovation, deck installation, and more. Once these projects are finished, they can raise your home value over time and give you a good return on your investment. Are you planning to sell your home in the future? Prospective buyers will take an interest in your new improvements.

College Debt

While student loans are more conventional, another route you can take is by using home equity. You may find that a home equity loan gives you more of an advantage due to the lower interest rates. Additionally, you can extend the term of the loan and therefore reduce your payments. However, you want to be careful not to default payments, otherwise, you could lose your house. Before using home equity for student debt, calculate the monthly costs and see if you can make the payments.

Debt Consolidation

Are you paying high-interest debt on a credit card or car loan? Consider consolidating your debt with your home’s equity. This way, you can pay off personal debt at a lower interest rate and set a longer term. You will be able to make monthly payments quicker and easier. Note: using home equity makes this secured debt – meaning the collateral is your home. Bankrate states, “If you have a solid debt payoff plan, using home equity to refinance high-interest debt can help you get out of debt faster.”

Conclusion

When you need a home equity loan, contact the team at American Mortgage Resource, Inc. Our professional lenders have the answers to your loan questions and are friendly when helping you with your loan needs. Get started on the loan application process today!

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