American Mortgage Resource, Inc.

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Tag: first time buyer

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!