American Mortgage Resource, Inc.

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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.

3 Ways Mortgages Can Make You Rich

Many people think that investing is risky and tricky, especially when it comes to real estate investing. You can say that again, and the mortgage crisis that occurred in 2007 in the USA is a case in point. But did you know that mortgages are favored opportunities for investors after the COVID-19 pandemic? 

In this month’s post, we’ll show 3 incredible ways that can make you rich and earn money the easy way by investing in real estate. Strike while the iron is hot!

1. Buying and Repairing a House

For starters, like any investment, you have to do an in-depth study of the market and what 2022 holds for the real estate market by consulting with the most trusted name in the business near you.

You have to know that each property comes with its own set of challenges, like renovation and repairs. So make sure to consult with an expert in the business before you jump in and make any big purchase. One of the most important takeaways is that working with professionals in the real estate market will lead you to a boost in your profits.

2. Buying a Vacation Real Estate Property

A recent study reveals that Waltham, MA is one of the safest places to live in the United States. So certainly, there will be a lot of tourists looking for safety and comfort. Take advantage of being a Waltham, MA resident. Buy a property and rent it out to tenants for short periods or during holidays. However, choosing distinguished locations and dealing with a small number of tenants for a short period is the best formula to build your nest egg.

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3. Turning Your Property into an Airbnb

Airbnb is currently one of the most popular ways where property owners can make a profit, especially if it’s located in a prime location. All you have to do is register your house on the application and specify the type of housing you’re providing, such as a single room or an entire property, the property’s size, availability for rent, etc.

Related: Things to Know Before Turning Your Property into an Airbnb.

Learn More

In summary, people need to be consulted by a professional company that provides several services in the real estate market. In Waltham, American Mortgage Resource, Inc. is considered as the leader in the mortgage and loan business. Contact us at (617) 972-8588 or visit our website for more information.

Benefits & Downsides of Reverse Mortgages to Consider in 2022

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.

Things to Know Before Turning Your Property into an Airbnb

Establishing a side hustle is a goal that many people try to strive for, especially for that extra stream of income. Some turn to becoming an Airbnb host, because after all, it can be a very successful opportunity in well-traveled locations. While turning a second property into an Airbnb can be a very lucrative investment, it also comes with its own set of challenges. If you’re interested in becoming an Airbnb host, here are some things you should know before making that investment.

Research Your Location

For starters, you have to determine if the location of your property has a lot of demand. Are you located near tourist hotspots? Is your potential Airbnb near public areas such as restaurants and grocery stores? These are just a couple of questions you should ask yourself in order to determine if hosting in the area is worth it. Keep in mind that the earning potential for your property is largely determined by location and demand for travel.

Another thing to check is to make sure it is legal to host in your area and what requirements you need to meet. In many cases, the city needs to be informed that you plan to rent out your property as an Airbnb and some paperwork will be in order. If applicable, also be sure to check any rules enforced by the homeowner’s association, condo board, or landlord.

Decorating and Marketing

Airbnb hosts actually have to invest a great deal of money into their property to enhance its attractiveness to travelers before gaining profit. Redecorating and cleaning is the first task on the agenda. Your Airbnb should start from a clean slate and include relatively new furnishings and household equipment that are comfortable and high quality. Interior design is extremely important and should appeal to a wide target audience – not just you. Hosts can also consider consulting with professional interior designers for advice.

You will be competing with other hosts in the area, so you’ll need to have good marketing on your listing. It’s worthwhile to invest in a professional photographer for a comprehensive photoshoot. Visuals are everything and your first impression will be through digital photos. Always try to highlight unique aspects including your décor and amenities. In addition, it’s always good to have descriptive listings describing your space as best as you can. Be clear about what you’re offering in order to manage your potential guest’s expectations.

Have Good Amenities and Plentiful Supplies

If you want to host an Airbnb, never skimp on your amenities. Travelers are looking for a comfortable place that meets all of their needs and requirements while they’re on vacation. At the very least, having fast and strong WiFi is an absolute must. Another great thing to have is a Smart TV with integrated services such as Netflix, Hulu, Disney Plus, etc. You can also go the extra mile and pay for a streaming service for your guests to use. If you’re still in the market for a property, owning a place with unique amenities such as a pool or hot tub can be a great bonus on your listing.

You are also responsible for double checking stock and supplies before your guests check-in. They should not have to run to the store just because you don’t have the basic essentials. Here is a quick checklist to go over:

  • Toiletries (shampoo, soap, toilet paper, etc.)
  • Hangers
  • Hair dryers
  • Towels and hand rags
  • Extra blankets, pillows, and linens
  • Kitchen supplies and pantry staples (salt, pepper, oil, etc.)
  • Water and ice trays

Hosts Must Always Be Available

During the course of a traveler’s stay, anything can come up at any time. Perhaps the AC unit isn’t working or they need more bathroom supplies. As a host, you will be their point of contact for anything that they need. You are expected to remain attentive and available for your guests, morning or night. Providing great customer service and fast responses plays a major role in how well your guests enjoy their stay. The difference between a good and bad review can affect your profitability, reputation, and future bookings.

Conclusion

Remember that in order to gain profit from renting out an Airbnb means that a lot of work needs to be put into it. If you’re ready to take on these challenges and are set on investing in a second property, American Mortgage Resource, Inc. can help you find the best loans. Feel free to visit our website to learn more. Consult with our loan experts today!

Responsibilities of Being a Landlord

Becoming a landlord is an investment that will bring in another stream of income as you rent out your property to eager tenants. However, it also comes with a multitude of responsibilities that you are legally obligated to commit to. Your top priority is to provide a reasonable and safe living space that includes security and maintenance. If you’re interested in becoming a landlord, continue reading to learn more.

Provide a Habitable Living Space

As landlord, you must ensure that your tenants have access to a clean and comfortable living space. Depending on local laws, you are obligated to maintain the property and keep it up to standards. This includes:

  • Ensuring all structural elements are safe and intact.
  • Keeping the plumbing, electrical, heating, and ventilation in good working order.
  • Supplying trash cans and dumpsters.
  • Eliminating any vermin or infestation.
  • Following safety codes and disclosing any history of hazards such as asbestos, lead paint, bed bugs, etc.
  • Maintaining any common areas.

Ensure a Quiet Living Environment

It’s best to foster a peaceful community so all tenants can enjoy their residence without conflicts. Landlords should consider specifying in their lease that tenants should maintain a reasonable noise level so others are not disrupted. This will increase your reputation as an amicable place to live and attract more renters. 

Maintain Tenant Safety

Maintaining safety is one of your most important responsibilities as a landlord. You are obligated to ensure all tenants are safe and that your property is well-monitored. The legal requirements may vary depending on the local law but regardless of where you live, here are some things to take into account:

  • Double check all locks on doors, windows, and garages. Remember to rekey or replace locks after an old tenant moves out.
  • Ensure common areas such as the parking lots are well-lit and monitored with cameras.
  • Make sure all units have functioning smoke and carbon monoxide detectors. Other safety and rescue equipment like fire extinguishers must also be easily accessible.
  • Supervise hired personnel such as contractors, plumbers, electricians, etc.

Perform Repairs and Maintenance

Landlords must respond to any issues that may impact a tenant’s quality of life. Urgent repairs for electricity, plumbing, mold, and so on should be addressed as soon as possible. For most major issues, you should respond within 24 hours of the complaint. Response times can vary for lesser concerns but its best to handle it quickly to prevent further damage. Another thing to remember is that unless it’s an emergency, landlords should notify tenants ahead of time before entering the rental property and should only visit during reasonable day time hours.

Track the Unit Conditions

When tenants move out, landlords are responsible for repairing anything that is considered normal wear and tear such as repainting scuffed walls, replacing damaged carpets, repairing loose or worn hardware, and more. Keeping a checklist of the unit’s condition when a tenant moves in and out can help keep track of things to review. Landlords can also collect a security deposit to cover any damage exceeding normal wear and tear.

Conclusion

There are many things landlords are responsible for and local laws can have additional things to keep track of. If you’re ready to become a landlord and you’re considering a second property to rent out, consult with American Mortgage Resource, Inc. Over the years, we have helped numerous homebuyers and homeowners with their mortgage and financing options. Learn more by visiting our website and schedule an appointment with an expert today.

Pros and Cons of Buying a Second Home

Many people dream of owning a second property, whether it be a beachfront vacation home or a home in the mountains. A second home can also be rented out and used as another source of income. Regardless of the reason, investing in real estate can be a costly and time-consuming endeavor and there are any considerations to take into account. In this month’s blog, we list the pros and cons of buying a second home.

Things to Consider

So why do people bother investing in a second home in the first place? As mentioned, many people look for a second home to use as a vacation house in another state or country. It makes personal vacations easy and is a great spot for family and friends to gather. Others may look into a second property to lease out to renters in the area and have another stream of income.

However, a very important thing to consider is to make sure you can actually afford another home. There are many costs associated with it and you should evaluate your financial situation beforehand, such as any debts, retirement funds, college savings for your children, and so on. Once you’re sure you have the financial means and budget to purchase a second home, it’s time to weigh the pros and cons.

Pros

There are many advantages when it comes to owning a second home. Here are some benefits:

  • You can use it however and whenever you like.
  • If you’re using it as a vacation home, you can travel light and don’t have to worry about booking a hotel.
  • You can lend it to friends and family.
  • You can rent it out for extra income and use it to cover ownership costs.
  • It can give you tax benefits such as deductions for any rental-related expenses.
  • It will be an asset that can have positive capital appreciation, or an increase in its value.
  • You can retire there.

Cons

Of course there are some downsides and considerations that you have to take into account. Buying a second home is a very important decision that you should think through, especially when it comes to costs and the time you need to put into it. Here are some cons:

  • Second homes are expensive and are very costly. Other than mortgage payments there will be property taxes, insurance premiums, utilities, and other maintenance fees including repairs and renovations.
  • The distance may be a problem and can be a hassle to travel there if you need to handle maintenance or any issues.
  • Unless you hire a property manager, you will be responsible for maintaining the home. This includes things like yard work, house cleaning, scheduling appointments with contractors and maintenance workers, etc.
  • Depending on the housing market, it can be difficult to sell it later on.
  • You may also have difficulty finding renters and can lose out on rental income.
  • Some people may experience staleness with their vacation home location.

Learn More

Investing in another property should be considered carefully with the pros and cons in mind. If you’re ready to make the decision to buy second home, you’ll have to decide how you will finance it. Here at American Mortgage Resource, Inc., our professionals can help you decide on the best loan options and what to do moving forward. We offer mortgage consultation to homeowners and home buyers in Boston, MA and the surrounding areas. Learn more by visiting our website or make an appointment with an expert today.

Using a Comparative Market Analysis (CMA)

When it comes to selling your home, knowing its value can help you gauge how to price it effectively on the market. Comparative Market Analysis (CMA) reports can help with this by allowing you to compare your property to other properties recently sold within the area. Comparables have similar square footage, age, conditions, upgrades, and locations. A CMA can be generated with the help of a real estate agent and can act as an informal appraisal before you make things official. Interested in getting a CMA for your property? Continue reading to learn more about the data generated in a CMA and how to understand it.

Data found in a CMA

CMA reports can vary in length and complexity depending on the market and the real estate agent’s business practices. Generally, the type of data found in a CMA includes:

  • Active listings – Homes that are currently for sale.
  • Pending listings – Formerly active listings that have not closed yet and are in a pending sale.
  • Sold Listings – Homes that have been sold within the past 3 months. These are your comparable sales that will be used when appraising your home’s value. If there are not enough sales within the past 3 months, then comps within the past 6 months can be used.
  • Expired Listings – Properties that were not sold. This can be due to a number of reasons such as being unreasonably priced, not being marketed, or it was in need of repairs.
  • Withdrawn/Cancelled Listings – Properties that were taken off of the market for a variety of reasons. These were also most likely too expensive. In general, expired and withdrawn listings have the highest median prices which made them undesirable along with other potential factors.

Understanding the CMA Report 

Now that you understand the type of data found in a CMA report, it’s time to understand how to use the actual report to your benefit. Once your real estate agent has generated it, look at each comparable and see how it matches to your property. Each comparable listing will include a description, floor plan, number of rooms and bathrooms, square footage, sales price, any dollar adjustments, and the fair market value.

There will be at least 3 to 5 comparables to analyze and this will help you appraise the value of your home. However, a consideration to be aware of is that there may be a difference in value if there were any upgrades or amenities involved. For example, a comp may be very similar to your property but if their property was completely renovated rather than fixed-up, then the value will be much higher than yours. Another consideration would be the property location which can also play a major role in its value. 

Learn More

Overall, a CMA will allow you to set a competitive listing based on the average price the comps were sold at. American Mortgage Resource, Inc. is the premier choice when it comes to loans and mortgage advice. Visit our website to learn more or call (617) 972-8588 to speak with an expert.

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.  

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.

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