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How to Buy a House in 2022

March 25, 2022 / / 0 Comments
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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?

March 18, 2022 / / 0 Comments

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.

Benefits & Downsides of Reverse Mortgages to Consider in 2022

February 16, 2022 / / 0 Comments

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.

What Does 2022 Hold for Real Estate Market?

January 13, 2022 / / 0 Comments
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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

December 30, 2021 / / 0 Comments

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.

Home Loans and Fixer Uppers

September 24, 2021 / / 0 Comments

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 home
  • There’s less competition when purchasing it
  • You fell in love with the property or neighborhood, but not the home itself

Loan Options

  • 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.

Final Thoughts

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.

How to Tap Into Your Home Equity

August 13, 2021 / / 0 Comments

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 circumstances.  

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.

Refinance

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 over time.   

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 ratio.

Final Thoughts

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!

Difference between Down Payments and Closing Costs

May 11, 2021 / / 0 Comments

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.  

Highlights & Drawbacks of FHA Loans

February 23, 2021 / / 0 Comments

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!

Home Equity Loans: The Answer You’ve Been Looking For

September 30, 2020 / / 0 Comments

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.

Pros

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.

Cons

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.

Final Thoughts

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.

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