American Mortgage Resource, Inc.

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Tag: first time buyer

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.

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!

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!

Condo vs. Townhouse

Condos and townhomes can offer many comforts and homely characteristics that traditional homes offer, if not more! Many families, couples, and individuals choose to buy and rent these types of homes for their appealing amenities accompanied by their smaller price tags. In this month’s blog, we break down the major differences and similarities between condos and townhomes so that you may discover which is the right choice for you!

Similarities

Both condos and townhomes are attached homes, meaning they share one or more walls with a neighbor. Despite ownership of the home, many of these communities are run by a home owners association (HOA) made up of other residents. HOAs almost always charge their residents a monthly fee to cover the upkeep of landscaping, pools, fitness centers, and common areas.

These homes typically have less square footage and outdoor space than detached single family homes do and can be anywhere from one to three stories tall. The resale value of these spaces largely depend upon how well the HOA manages the property as well as how well the owner upkeeps their individual home.

Notable Differences

There are several notable differences to consider when comparing condos and townhomes, most of them regarding their physical build. Townhomes are built on land that the owner purchases with the home whereas condos are more like apartments and no land ownership is involved.

When you purchase a condo, you personally own your individual unit and share joint ownership of the building with the other owner-tenants. That joint ownership includes not just the building structure itself, but its common areas, such as the gym, pool, and grounds, as well as the airspace. Some condos may resemble townhomes but unless the land is also owned by the homeowner it’s still technically a condo.

Final Thoughts

There are so many decisions to make when buying a home from location and price to size and available amenities. Regardless if you want a traditional detached home or a condo, it’s crucial to never buy more home than you can afford! This reason is often what makes condos and townhomes such great choices for first-time homebuyers or anybody shopping for a home on a smaller budget. Head to our website or contact our team directly at (617) 972-8588 for local brokerage and mortgage services you can count on every time!

What to Expect With Buying a House in 2021

In 2020, 30-year mortgage interest rates plummeted to momentous lows. The highest interest rates ever recorded was in October 1981 where mortgage interest rates skyrocketed to 18.45 percent.  When it comes to purchasing a new house, the process can be complex. There are so many factors to consider including house price, extra fees, job stability, neighborhood safety, and much more. In 2021, finding the perfect “home” requires knowledge of lender qualifications, waging war against other buyers, and socially distancing from others. In this blog, here are some things to expect when buying a house in 2021.

Competitive Housing Market

            The search for an ideal home at an affordable price is overwhelming and exciting at the same time. And when a sensibly valued house in good quality is found there will be many other people making an offer. According to Christopher Arienti, broker and owner of Re/Max

Executive Realty in Franklin, Massachusetts, he states, “It is a seller’s market in just about every part of the country.”  The solution to coming out on top of a seller’s market is to be flexible and make some concessions. Also, it would be best to offer contingent on the sale of a current home.

However, there are risks of any concessions and don’t make an offer that is unreasonably unaffordable. Speaking to a professional real estate agent can help make a solid offer.

Home Prices Rising

            According to an average of the latest forecasts from Fannie Mae, Freddie Mac, the National Association of Realtors, and the Mortgage Bankers Association, they saw the costs of existing homes are increasing 5.9% in 2021. In 2020, the housing market saw an increase of 10% in house costs. The price of houses depends on the time of year, however, it does not change the price significantly.

Mortgage Rates Still Low

            30-year fixed mortgage rates have only increased by about 1% from 2020 to 2021 according to the economists at the National Association of Realtors and Mortgage Bankers Association. The low rates can help future homeowners who have good credit get an excellent mortgage rate. However, this all depends on financial circumstances, mortgage lenders, and finding the best deal.

Buying a House Digitally

            Digital tools are helping people keep safe during the COVID-19 pandemic while looking for a new home. E-closings, small open houses, virtual home tours, and webcam meetings are helping real estate transactions to be simple and safe. Each state, county, and city have different laws and regulations concerning social distancing and the reduction of the COVID-19 virus so it would be important to find out the rules.

Shopping for a Lender

            A rookie mistake that homebuyers make is looking for a house rather than a lender. Finding the right lender can help get finances in order, check credit score, and get a terrific financial loan. Lenders will need details about income, debt, employment, and financial accounts to get pre-approved. Getting a pre-approved loan shows real estate agents and sellers that the buyer is determined to purchase a home. 

Conclusion

            Buying a home in 2021 does not have to be difficult especially when you have understood these few tips given. However, it is still not easy to purchase a house without having somebody to help you with a mortgage loan.  At American Mortgage Resource, Inc., we can help you with getting the best mortgage loan. We provide various services including jumbo loans, reverse mortgages, home equity loans, and much more.  Set an appointment with us by visiting our website today!

Difference between Down Payments and Closing Costs

When it comes to buying a home, it’s important to be prepared for all the costs that may come up and making sure that you are able to afford it. Most future homeowners tend to focus on acquiring enough money to cover the down payment but are then taken back by the closing costs that they need to cover at the end. It’s critical to be aware of how much money you’ll need to fully close the deal on your new future home. In this month’s blog, we will discuss the difference between down payments and closing costs to help better prepare you for the home buying process.

Down Payments

A down payment is the portion of the money you must pay upfront when you begin the process of purchasing a home. It is the minimum amount that you need to put towards the total cost, while the remaining amount is funded by your mortgage loan. This is basically your first investment into your future home and the price may vary depending on what type of loan you have. Another important thing to remember is that your down payment will be due at closing, which is the final step for buyers when the sale is finalized.

Closing Costs

Closing costs occur when the title of the property is transferred to the buyer and the total amount will depend based on the location of the property and its value. The amounts associated with your closing costs consist of an assortment of taxes and fees from entities and services handling your loan. All of your closing cost fees will be listed on your loan estimate. These costs are completely separate from your down payment and are paid at closing. They can also be paid on the same check as your down payment.

Closing costs can be incurred by both the seller and the buyer and the fees can be split depending on the negotiation and contract. A mortgage lender can help decrease these costs by negotiating the sales contract.

Conclusion

Overall, the process of buying a house as a first time homeowner can be tedious and stressful. There are many fees associated with it and the terms can be confusing. That’s why at American Mortgage Resource, Inc., we dedicate ourselves to helping homeowners while providing worry-free solutions that best fits their needs. To consult with an expert, please contact us at (617) 972-8588 or visit our website for more information about our services.  

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.

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.

What Questions Can a Mortgage Calculator Answer for Me?

When you are in the market to buy a new home or decide you want to refinance, it is best to prepared and informed before making any big decisions. Your funds are going to be an important part of the buying process, so by using a financial tool such as a mortgage calculator, you can plan ahead. Similarly, managing your monthly payments for the mortgage can also be accurately shown on a calculator. Learn more about how a mortgage calculator answer your financial questions!

How Long Until I Pay Off My Loan?

In order to strategize your payment plan, you need to look closely at the loan term. With a short term, there are typically higher payments in a shorter amount of time. However, you won’t be paying as high of an interest. On the other side, a long term allows you to have lower payments, but you will be paying more interest over time. Finding a balance of affordability and less interest can help you make the most of your payments towards a home loan.

Can I Afford This House?

One of the main questions to ask yourself is “Am I able to afford this house?” Before settling on that beautiful house you’ve been dreaming of, first determine how much you can afford. A mortgage calculator can give you an accurate estimate of the amount you will need for monthly payments, as well as a down payment. The goal is not to overspend on your house and set realistic goals while considering your financial situation.

How Much Should I Put On The Down Payment?

The higher the down payment, the lower your monthly payments will be. However, you should only put in what you can manage to pay for. Do not put all of your savings and emergency funds into your down payment. Instead, you can use a calculator to figure out a practical down payment. First-time buyers can especially benefit from a calculation, as they will not have extra funds from a previous property.

Conclusion

If you need to calculate your mortgage payments, American Mortgage Resource, Inc. has a free calculator online. You can navigate our website and click on “calculator” to enter your information. For help with the loan process or other mortgage services, contact our team today!