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.
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.
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.
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.
Start by Checking Your Credit Score
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
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
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
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.
There are countless reasons why fixing up old homes has turned into one of the most colossal real estate trends over the past decade. While it seems everyone talks about fixing up an old home one day, not many people are speaking about what it’s like to finance such a project. Fixer upper loans combine the purchase or refinance of a property with the cost of renovating it. This unique mortgage option addresses the challenge buyers often face when figuring out how to finance a fixer upper. Follow along below as we discuss why you should invest in a fixer upper and what loan options may be available to you.
Reasons to Purchase a Fixer Upper
You can build the custom home of your dreams
You can flip it for a profit
It’s typically cheaper than purchasing a newer
There’s less competition when purchasing it
You fell in love with the property or
neighborhood, but not the home itself
FHA 203(k) Loan – This government backed loan will
require that you to adhere to FHA guidelines and limitations when completing
renovations. In some cases this loan will not allow for much DIY work, as the
government will require that licensed contractors complete most major tasks.
VA Renovation Loan – Some eligible service
members, veterans and qualifying spouses can use this loan to combine a VA
purchase loan or VA cash-out refinance with their renovation costs. Other major
advantages of this option include not having to pay a down payment or any closing
costs on the property at the time of purchase. In some cases the VA
accommodates a higher purchase price based on the home’s expected value once
renovations are complete
HomeStyle Loan – Referred to as a Fannie Mae convention loan, a HomeStyle loan is a fixer upper loan similar to a FHA 203(k) loan, but with increased limits for borrowers. Due to the fact that this is a conventional rehab loan, homebuyers finance their home directly with private banks or mortgage companies that offer this product, and Fannie Mae purchases the loans from lenders.
CHOICERenovation loan – Also dubbed the Freddie
Mac loan, CHOICERenovation can be used to finance a fixer upper project through
traditional means in conjunction with the refinancing of a separate existing
property. This option is great for those who plan on purchasing the fixer upper
as a second home or as an investment property.
Before you commit to spending your free time renovating a
fixer upper, make sure you know exactly what to expect throughout the process
financially. For free and honest advice from the pros, contact the team at American
Mortgage Resource, Inc. in Boston, MA. Visit our website
to learn more about the loans we offer or contact our team directly Monday –
Saturday at (617) 972-8588.
Are you feeling strapped for cash and unable to expense the
high priority responsibilities in your life? In this month’s blog, we outline
several convenient and accessible remedies for this common concern and how
homeowners can determine which option is best for them based upon their individual
Home Equity Loan
A home equity loan, also called a second mortgage, is a
fixed or adjustable rate loan that is secured by the equity in your home. With
a home equity loan you borrow a lump sum of money to be paid back monthly over
a set time frame, much like your first mortgage. The process for a home equity
loan is similar to a first mortgage except the closing costs are usually lower
and, although the interest rate is higher on a home equity loan, the interest
paid is tax deductible.
Refinancing is the replacement of an existing debt obligation
with another debt obligation under different terms. With interest rates as low
as they currently are, refinancing today can grant homeowners the opportunity
to lower their monthly mortgage payment more than they could’ve imagined
possible. When refinancing it’s crucial to lock in a low, fixed-rate loan rather
than an adjustable rate loan to ensure the monthly payment will not increase
Home Equity Line of Credit (HELOC)
A home equity line of credit is a line of credit backed by
the equity of the home and gives homeowners a revolving credit line for that
amount. With these loans you only have
to pay interest on the money you actually withdraw, but should feel confident
in being able to repay that entire balance by the time the repayment period
expires as per the terms.
Which Option is Best for You?
Determining the best way to tap into your home equity depends
mostly on what you want to do with the money. If you’re needing to pay off a
major expense all at once such as a debt consolidation, college, or medical
bills, then a home equity loan is most likely your best option. To qualify for
this typically your credit must be in good standing, you must be able to
document your income, and you will need to have your home appraised to
determine its current market value.
Refinancing is optimal for those who have at least 20%
equity in their home and are seeking lower monthly payments or shorter loan
terms. The best time to refinance is when interest rates drop, credit scores
improve, or when annual income significantly increases.
Those looking to use their equity to expense a prolonged
activity such as a major home renovation or building a business will need cash
more sporadically, meaning a HELOC would be most suitable. These loans can be
very cost efficient as they have lower interest rates and are free of closing
costs. HELOCs are typically granted to those who have at least 15%-20% equity
in their home, are in good credit standing, and have a low debt-to-income
Tapping into your home’s equity can be confusing and tough
to navigate, but with help from the right lenders can be the most rewarding and
money savvy decision you’ve ever made! American Mortgage Resource is recognized
as one of the top brokers in Massachusetts, with reliability and professionalism
at the forefront of their values. Visit our website
or contact the team directly at (617) 972-8588 to discover the best way for you
to finally tap into your homes equity for good!
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.
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.
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.
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.
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
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.
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
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.
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.
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.
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
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
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.
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!
Qualifying for certain loans and credit cards can be a difficult and confusing process for many of us. Homeowners have a unique advantage when it comes to borrowing money in a pinch as they may be able to qualify for a home equity loan. Follow along below as we discuss home equity loans and their pros and cons.
What’s a Home Equity Loan?
A home equity loan is a fixed or adjustable form of credit secured by how much equity you have in your home and enables you to borrow against that equity. Essentially this type of loan is a second mortgage as you will have to continue paying your primary mortgage while simultaneously making payments on your new home equity loan.
Home equity loans can save the day when you need help repaying higher interest debt elsewhere or funding home renovations. A distinctive benefit these loans offer is that while their interest rates may be slightly higher, any interest paid on them is tax deductible.
Undoubtedly the biggest risk in taking out a home equity loan is that your lender may be able to force you to sell your home to resolve the loan if you are ever unable to make your payments. Additionally, your home will have to be appraised to establish its value and you will have to provide proof of sufficient credit and income.
When considering applying for a home equity loan or any other type of loan, be sure to shop around to compare the varying plans offered by banks, credit unions, and mortgage companies in your area. At American Mortgage Resource, Inc. we have relationships with over 20 different lenders and strive to make the process as simple and smooth as possible. Contact us here to learn more about our affordable services.
When it comes to a mortgage, considering all of your options is crucial in finding the arrangement that best meets the continued needs of you and your family. Many private insurance companies will offer home buyers PMI, which is a deal typically established by the lender and paid for by the borrower, but can benefit both parties. Continue along with this month’s blog for more information about PMI and to find out if it’s right for you.
The Purpose of PMI
PMI is sometimes required of home buyers who have put down a deposit that’s less than twenty percent of their loans total value or who have taken out a conventional loan rather than a government assisted loan. Essentially PMI is insurance coverage for the lender to ensure they will be repaid the amount of the loan in full.
Pros of Having PMI
Agreeing to PMI can help home buyers who are struggling to qualify for a loan large enough to afford a home. It can also help them qualify for their desired loan much more quickly. As the prices of homes continue to soar every year, a prolonged plan to save for a larger deposit may not be the best option for some potential home buyers.
Cons of Having PMI
The biggest downside of PMI is that it’s an additional monthly expense or upfront cost that new home buyers are responsible for paying in addition to their mortgage. It’s also an expense for a service that doesn’t directly benefit those funding it. PMI will usually have to be paid until the borrower has compensated a predetermined minimum on their principle.
Private mortgage insurance can help countless families finally catch the break they need to afford a home. For more information on how to get approved for a loan, visit this article. For expert help through the loan and mortgage processes, contact our professionals here for guidance you can trust.
In order to get the best deals and rates on a home loan, you
need to have a good credit score. Mortgage lenders are going to look to see if
you are a responsible borrower and making your payments on time. Additionally,
your credit score can provide the information a lender needs to determine your
eligibility, including which rates they are going to offer and what type of
loan you qualify for. Continue reading to understand how your credit score is
important for the loan process!
Are You Credit
Before you begin shopping for loans, have your credit score
ready to go. Check online with an accredited website for the most accurate results.
It’s important to mention that most lenders are going off of a FICO credit
score, which ranges from 300-850. If your credit score falls under the category
of “fair” or better, you’re in the average range for an American borrower.
Is Your Credit Enough
for a Home Loan?
According to Meridian
Banker, “the credit score needed to buy a house greatly depends on the type
of home loan you apply for.” Some of the most common loans you are going to
come across are conventional loans, FHA loans, and VA loans. These loans start
at a minimum of 500-620 or higher. FHA loans are beneficial for borrowers with
low credit scores, while conventional and VA loans are better if you’re in the “good”
or “very good” range.
What about Rates?
The higher your credit score, the lower your rates are going
to be. The amount you’re paying back on the loan is greatly affected by the
rate at which it’s set. Essentially, a lower rate is going to save you more
money over time. This is why having a good credit score can expand your loan
options, while also giving you better rates in the long run.
For more information about the loan process and what it involves,
the professionals at American Mortgage Resource, Inc. are here to answer your
questions. We want you to be confident in your financial decisions, so call us
at (617)-972-8588 or visit our website
to send a message. We look forward to hearing from you!
Purchasing a home, especially as a first time buyer, has proven to be a long and difficult process. It’s stressful, a pain and a real headache to go through. In this article, we discuss what it takes to get a home loan approval and how to meet the minimum requirements to qualify. Let us help you with these simple tips!
A good way to start the approval process is to improve your credit score. It’s important to make your score as high as possible before applying, scores of 740 or more are suggested; the higher the better. Once you feel it’s acceptable, you’ll need to grab a copy of your credit report from all three credit reporting agencies: Equifax, Experian and TransUnion. Be sure to check each report thoroughly for errors.
After getting your credit checked, don’t go shopping for a new home just yet. Another thing you’ll need is a pre-approval letter from a loan officer. During this process, they will check your credit and validate your finances. To get pre-approved, it is important to gather the following documents: W2’s and paycheck stubs, 2 years of tax returns, 2-3 months of bank statements and proof of down payment.
Know Your Type and
There is no “one size fits all” home loan. Depending on your budget, you may qualify for loan programs that offer a variety of advantages. Since buying a home is such a major investment, it’s important to keep in mind your finances and budget costs for all home ownership expenses. Researching the different loans can help you know exactly what you’re getting into. If you’re a first time buyer, it’s beneficial to know the types of loans that are available for you such as a FHA (Federal Housing Administration) loan.
Home loans can be complicated and confusing for many first-time and even veteran home buyers. We can help guide you through this significant financial decision and get you approved for the home loan that works best for you! American Mortgage Resource, Inc. has the solutions you need to ensure that your loan application gets approved and the process runs smoothly.