Home Buying

JUMBO LOAN: How Do You Qualify For One?

One of the most important components of shopping for a home is identifying the type of mortgage that best suits your needs. You may need a jumbo loan to buy the house of your dreams, or, in some areas of the country, to buy any house at all.

What Is A Jumbo Loan?

A jumbo loan, or jumbo mortgage, is a mortgage loan that exceeds the limits set by the Federal Housing Finance Agency (FHFA). Jumbo loans are called non-conforming loans because they don’t conform to these limits.

How Does A Jumbo Home Loan Work?

Like conventional mortgages, jumbo loans come in a variety of terms and repayment schedules, and they can be fixed-rate or adjustable-rate loans.

However, jumbo loans work differently than conventional mortgages. These loans have stricter requirements than other types of mortgages, and you’ll have to meet very specific property type, down payment, credit score and debt-to-income ratio requirements to get one.

Choosing the right mortgage loan is a big decision – one that should not be taken lightly. There are many factors to consider and numerous loan options available and even if you’re short on savings. Doing your research ahead of time will help you make the best decision for your individual circumstances. There may be first-time home buyer programs offering cash assistance that could put you in a home much sooner. Talk to your real estate agent, lender, and financial advisor to learn more about each type of loan and find out which one is right for you.

Would you like to know if you qualify for this mortgage loan? Call us today at 832.403.3353 or book a meeting:

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What is the best Loan option for First-Time Home B...

If you’re a first-time home buyer, the loan process can be daunting. There are so many different types of loans available, and it can be hard to know which one is the best for your needs. It’s important to do your research and work with a qualified loan officer who can help you understand your options. In this blog post, we’ll give you an overview of some of the most popular first-time home buyer loans and help you decide which one is right for you.

When you’re a first-time home buyer, you’re looking for any way to get a foot in the door. Maybe that means a mortgage option with a lower down payment or one with looser credit and income guidelines.

Programs like the FHA, VA, or Conventional 97 loan can help. But there’s no “one-size-fits-all” mortgage. So be sure to explore all your options.

Whatever your situation calls for, there’s likely a first-time home buyer loan that can help.

The 6 best mortgage loans for first-time home buyers

  1. FHA Loan
  2. Conventional 97
  3. HomeReady/Home Possible
  4. USDA Loan
  5. VA Loan
  6. Good Neighbor Next Door

Other programs, including down payment and closing cost assistance, can help lower the upfront barrier to homeownership.

Choosing the right mortgage loan is a big decision – one that should not be taken lightly. There are many factors to consider and numerous loan options available and even if you’re short on savings. Doing your research ahead of time will help you make the best decision for your individual circumstances. There may be first-time home buyer programs offering cash assistance that could put you in a home much sooner. Talk to your real estate agent, lender, and financial advisor to learn more about each type of loan and find out which one is right for you.

Message us or Schedule your call today to know more about your options by clicking the link below!

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The Truth About Current Interest Rates

You’ve likely heard recent news about rising interest rates. Whether it’s your credit card interest payment, or the cost to finance a home, the cost to borrow money has been increasing. However, while there is no doubt that interest rates are higher than they have been in the past two years, it is important to look at rising interest rates from a broader, more historical point of view.

Mortgage backed securities giant, Freddie Mac has collected and published data on average weekly mortgage interest rates since the early 1970s. With nearly 50 years of data, this snapshot of the rise and fall of mortgage interest rates provides a powerful snapshot of how rates have fluctuated. The biggest take away when you look at rates over the last nearly half-century? Rates are still historically low.

Over the course of the last 49 years, the average interest rate has typically hovered above 5%. Freddie Mac recorded the highest interest rate at 16.63 in 1981. Since then, interest rates have been on a downward slope, with periodic spikes. It wasn’t until the burst of the housing bubble in the mid-2000s, and the subsequent recession, that we saw interest rates fall below 5%. Since then, we have seen interest rates hover at unprecedented lows. As the economy recovered, the Federal Reserve slowly began inching interest rates higher. By 2019, interest rates were ticking closer to the 5% range. However, with the onset of the pandemic, interest rates dramatically dropped again, leading to the extremely low interest rates we experienced through 2020 and 2021.

Where We Are Now?

Over the past few months, we have all felt the impacts of inflation. Prices have increased and whether it’s the total of our weekly groceries to a tank of gas, many goods and services cost more, including the cost to borrow money. However, it is important to keep in mind, that while it may be more expensive to finance a mortgage than it was a year ago, rates are still very low when compared to the historic average. Homebuyers may still have the opportunity to purchase a home at an affordable rate and start building equity.

Do you want more information? Message us or Schedule your call today by clicking the link below!

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What Is A Mortgage Statement? What are they and ho...

A mortgage statement, which may also be referred to as a billing statement, is a document that comes from your lender and includes information on the status of your loan. Many lenders issue mortgage statements once a month, but you can usually access them online at any time.

Some of the information you might see on your mortgage statement includes:

  • Your monthly payment summary
  • Loan information
  • Year-to-date-payments
  • Transaction activity
  • Client service information

What Are The Most Important Mortgage Documents To Keep?

  • Deed
  • Deed of Trust and Promissory Note
  • Purchase Contract and Seller Disclosures
  • Home Inspection Report
  • Home Warranty

How Long Should You Keep Your Mortgage Statements?

The amount of time that you want to retain your mortgage documents depends on the item.

You should keep monthly statements for the shortest amount of time. Because the information on these statements gets outdated quickly, you don’t need to keep them for long.

Most homeowners typically keep their statements for about 3 years. Even though your lender will have copies of your monthly billing statements, it’s a good idea to have the physical ones on hand. You may want to keep each one for a longer period of time if you notice a mistake on one of your statements.

Do you want more information? Message us or Schedule your call today by clicking the link below!

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Who Is A Mortgagee, And What Does It Mean When Buy...

As you embark on the process of buying a house, there are many tasks you’ll need to complete before you can close and move into your new home. One of the most important things you’ll have to do is get a home loan. A key figure in this process is the mortgagee, but who is the mortgagee and what are their roles and responsibilities in the home buying process?

Let’s look at what the term “mortgagee” means.

Who Is The Mortgagee?

“Mortgagee” is a term you’ll likely see in your mortgage documentation. It refers to the lender, whether that’s a bank, credit union, other financial institution or specialized mortgage originator. Put simply, the mortgagee is the entity giving you the home loan.

Mortgagor Vs. Mortgagee

The term “mortgagor” refers to you, the borrower, and can be used to refer to all parties involved in taking out a mortgage loan. When thinking about the mortgagor/mortgagee relationship, remember that the mortgagee is the entity lending the money for the home, while the mortgagor is the person or persons borrowing the money to buy a home.

What Does A Mortgagee Do?

  • Set And Offer Mortgage Rates
  • Originate And Issue A Mortgage
  • Draft A Secured/Perfected Lien
  • Seize A Home
  • Sell Or Secure A Seized Home

Get Pre-Approved Now!

Get approved to see what you can afford. Message me or Schedule your call today by clicking the link below.