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By Brent Ross 20 Jul, 2023
Hi nurses! We at Big Valley Mortgage know that as a nurse, you have chosen a rewarding and important career path. We also understand that you may be considering taking the next step in your personal life and purchasing your first home. First-time home buying can be a daunting task, with many questions and unknowns. But don’t worry, we’re here to help! As a mortgage lender, it’s our job to assist you in finding the home financing solution that fits your needs. Let’s Dive Into Available Types Of Home Loans For Nurses Once you have a good idea of what you can afford, it’s time to start looking at loan options. There are many different types of loans available, and it’s important to choose the one that is right for you. Some common options for first-time home buyers include: FHA Loans These loans are backed by the Federal Housing Administration and are often a good choice for first-time buyers because they have lower down payment requirements (as low as 3.5%) and more lenient credit score requirements. Conventional Loans These loans are not backed by the government and may have stricter credit score and down payment requirements, but they often come with lower mortgage insurance premiums. VA Loans If you are a veteran or active military member, you may be eligible for a VA loan. These loans are backed by the Department of Veterans Affairs and offer several benefits, including no down payment requirement and no private mortgage insurance. USDA Loans If you are looking to buy a home in a rural area, you may be eligible for a USDA loan. These loans are backed by the U.S. Department of Agriculture and offer a no down payment option. In addition to these options, there are a few loan programs specifically designed for medical professionals, including: Doctor Loan Programs These programs, also known as physician loans, are specifically designed for doctors and other medical professionals. They often have more flexible credit and down payment requirements and may even offer a higher loan-to-value ratio. Jumbo Loans If you are a high-earning medical professional, you may be able to qualify for a jumbo loan. These loans allow you to borrow a larger amount of money and may be a good option if you are looking to buy a more expensive home. State and Local Down Payment Assistance Programs Many states and localities offer down payment assistance programs specifically for medical professionals. These programs can provide financial assistance to help you with the down payment and closing costs of your home. It’s important to note that each of these loan options has its own set of requirements and guidelines, and it’s best to speak with a mortgage lender to determine which one is right for you. At Big Valley Mortgage, we have a team of experienced loan officers who can help you navigate the home financing process and find the loan that fits your needs. Once you have chosen a loan option, the next step is to get pre-approved . This is an important step because it tells sellers that you are a serious buyer and gives you a better idea of what you can afford. To get pre-approved, you will need to provide some financial information, such as your income, assets, and debts. Your mortgage lender will then review this information and give you a pre-approval letter, which you can use when making an offer on a home.
By Brent Ross 26 Apr, 2023
Buying your first home can be an exciting and daunting experience. One of the most important decisions you’ll make when purchasing a home is choosing the right mortgage. The mortgage you choose will impact your finances for years to come, so it’s crucial to secure the best deal possible. In this article, we’ll provide you with five tips for first-time homebuyers to secure the best mortgage deal, with the help of Big Valley Mortgage. 1. Improve Your Credit Score Your credit score is a crucial factor that lenders consider when deciding whether to approve your mortgage application and determining your interest rate. A higher credit score can help you secure a lower interest rate, which can save you thousands of dollars over the life of your mortgage. To improve your credit score : Pay your bills on time: Payment history accounts for 35% of your credit score, so paying your bills on time is essential to improving your score. Reduce your debt-to-income ratio: Your debt-to-income ratio is the percentage of your income that goes towards paying off debt. Lenders prefer borrowers with a lower debt-to-income ratio because it shows they have a lower risk of defaulting on their mortgage. Keep your credit utilization low: Your credit utilization is the percentage of your available credit that you’re using. Keeping your credit utilization below 30% can help improve your credit score. 2. Work with a Mortgage Lender/Broker As a mortgage broker and lender, Big Valley Mortgage can help you navigate the mortgage application process and find the best deal for your situation. We work with multiple lenders and can help you compare different mortgage options. We can also help you understand the different types of mortgages available and their terms and conditions. With our extensive experience, we can guide you through the process of choosing the right mortgage for your unique situation. It all starts with submitting a simple and quick quote request . 3. Get Pre-Approved for a Mortgage Getting pre-approved for a mortgage can give you a clear idea of how much you can afford to spend on a home. When you’re pre-approved, Big Valley Mortgage will provide you with a letter stating the amount you’re qualified to borrow based on your income, credit score, and other factors. Having a pre-approval letter can make you a more attractive buyer to sellers because it shows that you’re serious about buying a home and that you have the financial means to do so. 4. Consider a Fixed-Rate Mortgage At Big Valley Mortgage, we offer fixed-rate mortgages that have an interest rate that remains the same throughout the term of your mortgage, typically 15 or 30 years. Fixed-rate mortgages provide stability and predictability, making them an excellent option for first-time homebuyers who want to budget for their mortgage payments. 5. Take Advantage of Our Expertise  At Big Valley Mortgage, we have a team of experts who are ready to help you with your mortgage needs. Our loan officers have extensive experience in the industry and can help you find the best deal for your situation. We also offer a variety of online tools and resources to help you understand the mortgage process and make informed decisions. In conclusion, securing the best mortgage deal for your first home is essential to your financial well-being. Improving your credit score, working with a mortgage broker like Big Valley Mortgage, getting pre-approved for a mortgage, considering a fixed-rate mortgage, and taking advantage of our expertise are all ways to help you secure the best deal possible. With our help, you can achieve your dream of homeownership without the hassle and stress of shopping around for multiple lenders. Contact us today to learn more about our mortgage options and services.
By Brent Ross 20 Apr, 2023
Buying a home is one of the most significant financial decisions most people make in their lives. When you’re ready to take the leap and apply for a mortgage, your credit score will play a critical role in determining your eligibility for a loan and the interest rate you’ll receive. If you’re concerned about your credit score and want to improve it before applying for a mortgage, here are some tips to help. So, without further ado, let’s dive into how to improve your credit score! Understanding Your Credit Score Your credit score is a three-digit number that reflects your creditworthiness. Credit scores range from 300 to 850, and the higher your score, the better your chances of being approved for a mortgage and getting a lower interest rate. Several factors contribute to your credit score, including your payment history, outstanding debt, length of credit history, and types of credit you use. Checking Your Credit Report Before you start working on improving your credit score, it’s essential to check your credit report. You can get a free credit report from each of the three major credit bureaus (Experian, TransUnion, and Equifax) once a year. Check your credit report for errors, such as accounts that don’t belong to you, incorrect balances, or late payments that you know you made on time. If you find any errors, dispute them with the credit bureau to have them removed from your credit report. One great place to check your credit report is the Annual Credit Report website. Reducing Your Debt One of the most effective ways to improve your credit score is to reduce your debt. Lenders look at your debt-to-income ratio, which is the amount of debt you have compared to your income. If you have a high debt-to-income ratio, it can hurt your chances of being approved for a mortgage. To lower your debt-to-income ratio, try to pay off as much debt as possible before applying for a mortgage. This can include credit card balances, car loans, and other outstanding debts. Paying Bills on Time Another crucial factor in your credit score is your payment history. Late payments can stay on your credit report for up to seven years and can significantly impact your credit score. Make sure you pay all your bills on time, including credit card bills, car loans, and student loans. If you’re having trouble making payments, contact your creditors to discuss your options. They may be willing to work with you to create a payment plan that fits your budget. Using Credit Responsibly Having a mix of credit accounts, such as credit cards, car loans, and student loans, can also help improve your credit score. However, it’s essential to use credit responsibly. Don’t open too many new accounts at once, as this can negatively impact your credit score. Also, avoid maxing out your credit cards or taking out more debt than you can afford to repay. Working with a Credit Counselor If you’re struggling to improve your credit score on your own, consider working with a credit counselor. A credit counselor can help you create a budget, negotiate with creditors, and develop a plan to pay off your debts. They can also help you understand your credit report and provide guidance on how to improve your credit score.  Final Thoughts Improving your credit score before applying for a mortgage takes time and effort, but it’s worth it. A higher credit score can help you get approved for a mortgage and qualify for a lower interest rate, which can save you thousands of dollars over the life of your loan. Start by checking your credit report, reducing your debt, paying bills on time, using credit responsibly, and working with a credit counselor if needed. With these steps, you’ll be well on your way to improving your credit score and achieving your dream of homeownership.
By Brent Ross 20 Mar, 2023
Buying a home can be an exciting process, but it’s important to be financially prepared before you start house hunting. One of the most critical questions to ask yourself is “how much mortgage can I afford?” Knowing the answer to this question can help you narrow down your price range and ensure that you do not overspend on your new home. Here is a step-by-step guide to help you determine how much mortgage you can afford: Step 1: Calculate Your Monthly Income The first step in determining how much mortgage you can afford is to calculate your monthly income. This includes your salary, bonuses, commissions, and any other sources of income. Step 2: Calculate Your Monthly Expenses Next, calculate your monthly expenses. This includes your rent or current mortgage payment, car payments, student loan payments, credit card payments, and any other recurring bills you have. Step 3: Calculate Your Debt-to-Income Ratio Your debt-to-income ratio is a critical factor that lenders use to determine how much mortgage you can qualify for. To calculate your debt-to-income ratio, divide your monthly debt payments by your monthly income. Most lenders prefer a debt-to-income ratio of 43% or less. Step 4: Factor in Your Down Payment Your down payment is another essential factor that will determine how much mortgage you can afford. Generally, the larger your down payment, the lower your monthly mortgage payments will be. Step 5: Use a Mortgage Calculator Once you have a good understanding of your income, expenses, debt-to-income ratio, and down payment, you can use a mortgage calculator to determine how much mortgage you can afford. NerdWallet offers a decent mortgage payment calculator on their website. Better yet, this is when you should take the next step and get a licensed, experienced Loan Officer involved! Step 6: Request a Quote from Big Valley Mortgage After following the first five steps and having a good understanding of how much mortgage you can afford, it is time to request a quote from Big Valley Mortgage . Our experienced loan officers can help you further refine your budget and determine which loan options are best suited for your needs. By requesting a quote, you will have the opportunity to speak with one of our Loan Officers, who can walk you through the entire mortgage process and provide you with a personalized quote based on your unique financial situation. They can also help you understand any fees or costs associated with the loan, as well as discuss the pros and cons of different loan options. Our Loan Officers have years of experience in the mortgage industry and can offer valuable insights and guidance to help you make the best decision for your financial future. They can also help you understand the impact of different interest rates, loan terms, and down payment amounts on your monthly mortgage payments. In conclusion, determining how much mortgage you can afford is a crucial step in the home buying process. By following these steps and requesting a quote from Big Valley Mortgage, you can feel confident that you are making an informed decision about your mortgage and your financial future. Contact us today to learn more about how much mortgage you can qualify for and get pre-approved for your dream home!
By Brent Ross 16 Mar, 2023
When many think of how to buy a house, it can be easy to get lost in where to begin and what the process looks like. Buying a house can be one of the most exciting, yet daunting, experiences of your life. Whether you’re a first-time homebuyer or an experienced one, there are always things to consider when it comes to purchasing a property. At Big Valley Mortgage, we understand the importance of finding the right mortgage lender and product to fit your unique situation. In this article, we’ll cover some essential steps to take when buying a house and how Big Valley Mortgage can help make your dream of homeownership a reality. Determine Your Budget Before you start house hunting, it’s crucial to determine your budget . Look at your income, expenses, and debts to figure out how much you can comfortably afford to spend on a mortgage payment each month. Consider the down payment, closing costs, and other fees associated with buying a house, so you have a clear idea of the total cost. Once you have a budget in mind, you can start looking for homes within your price range. Get Pre-Approved Getting pre-approved for a mortgage is essential before you start looking for homes. It helps you understand how much you can afford, and it shows sellers that you’re a serious buyer. At Big Valley Mortgage, we offer pre-approvals for our customers, which can help speed up the home buying process. Our experienced Loan Officers can also help you find the right mortgage product to fit your needs, whether you’re looking for a fixed-rate or adjustable-rate mortgage. Looking to Get Pre-Approved?
By Brent Ross 15 Mar, 2023
As people age, their housing needs often change. They may want to downsize, move closer to family, or live in a more accessible home. However, for many seniors, the thought of uprooting their lives and moving to a new home can be overwhelming. That’s where a reverse 4 purchase loan comes in. Reverse 4 purchase loans are a unique type of loan that allows seniors to purchase a new home without making monthly mortgage payments*. *The borrower is responsible to keep the property charges like taxes, insurance and HOA fees current, and they must maintain the home and live in it as their primary residence. The loan is paid off when the borrower sells the home, moves out permanently, or passes away. Let’s explore how reverse 4 purchase loans work and some scenarios where they can be beneficial. How Does a Reverse 4 Purchase Loan Work? A reverse 4 purchase loan is a reverse mortgage, many times the FHA HECM loan, and is used to purchase the new home. The borrower must be at least 62 years old and have enough equity coming from the sale of their current home to cover the down payment and closing costs. The borrower will not be required to make any monthly mortgage payments (principal and interest). Instead, interest and mortgage insurance on the loan will accrue and be added to the balance of the loan each month. When the borrower sells the home, moves out permanently, or passes away, the loan is paid off with the proceeds from the sale of the home, or the heirs can bring in funds to pay off the loan. One of the benefits of a reverse 4 purchase loan is that it allows seniors to purchase a new home without depleting their savings. Instead, they can use the equity from the sale of their current home to fund the down payment and closing costs. Scenario 1: Downsizing for Retirement Mary is 70 years old and has lived in her 4-bedroom home for over 30 years. Her husband passed away five years ago, and she is finding it difficult to maintain the large home on her own. She would like to downsize to a smaller, more manageable home but does not want to deplete her savings to purchase a new home. Mary decides to apply for a reverse 4 purchase loan. She has enough net equity in her current home to cover the down payment and closing costs on a new home. She sells her current home and purchases a smaller, one-story home with a reverse 4 purchase loan, and she no longer has to worry about the upkeep and maintenance of a large home. She can live comfortably in her new home without making any monthly mortgage payments*. Scenario 2: Moving Closer to Family John is 75 years old and has lived in his current home for over 40 years. His children and grandchildren live on the other side of the country, and he would like to move closer to them. However, he does not want to sell his current home and lose the memories he has created there. John decides to apply for a reverse 4 purchase loan. He has enough assets to cover the down payment and closing costs on a new home near his family. He purchases a new home with a reverse 4 purchase loan and can live closer to his loved ones without losing his current home, which can be a second home or rental property for him. When he passes away, his family can sell both homes and use the proceeds to divide his estate. Scenario 3: Purchasing a Multi-Family Property David is 65 years old and owns his own home outright. His mother, Susan, is 85 years old and owns her home outright. Susan is finding it difficult to maintain her home on her own and would like to move in with David. However, David’s home is not big enough to accommodate both of them comfortably. David decides to apply for a reverse 4 purchase loan to purchase a fourplex. He uses the equity from the sale of his home to finance the down payment and closing costs on the fourplex. He lives in one unit of the 4-plex and his mother lives in another unit of the fourplex, and the other two units are rented out to generate income. With the rental income from the other units in the 4-plex, and rental income from his mom’s prior home, his mother can live with him in a comfortable home, and they are both able to enjoy the benefits of the rental income. This scenario highlights the flexibility of a reverse 4 purchase loan. Instead of using the loan to purchase a single-family home, it can be used to purchase a multi-family property that can generate income and provide additional benefits to the borrower. Final Thoughts Reverse 4 purchase loans can be a great option for seniors who want to purchase a new home without depleting their savings or making monthly mortgage payments. These loans provide flexibility and allow seniors to live comfortably in a home that meets their needs. If you are considering a reverse 4 purchase loan, it’s important to do your research and work with a reputable lender. At Big Valley Mortgage, we have a team of experienced mortgage professionals who can help guide you through the process and find the best loan option for your unique situation. Whether you want to downsize, move closer to family, or purchase a multi-family property, a reverse 4 purchase loan can be a great option for seniors looking to purchase a new home. Contact us today to learn more about how we can help you achieve your homeownership goals. *Reverse mortgages are loans offered to homeowners who are 62 or older who have equity in their homes. The loan programs allow borrowers to defer payment on the loans until they pass away, sell the home, or move out. Homeowners, however, remain responsible for the payment of taxes, insurance, maintenance, and other items. Nonpayment of these items can lead to a default under the loan terms and ultimate loss of the home. FHA insured reverse mortgages have an up front and ongoing cost; ask your loan officer for details. These materials are not from, nor approved by HUD, FHA, or any governing agency. Licensed by the Dept of Financial Protection and Innovation under the CRMLA. Equal Housing Opportunity.
By Brent Ross 10 Feb, 2023
Hey there! Are you looking to give your home a fresh, modern update but not sure where to start? Well, you’re in luck because I’ve got the scoop on the current home décor trends.  Incorporate Organic Materials Into Your Décor
By Brent Ross 09 Jan, 2023
Home repairs can be expensive, but there are ways to save money while still keeping your home in good condition. Here are a few tips to help you save money on home repairs: Do It Yourself Many home repairs are simple enough that you can do them yourself with a little bit of knowledge and the right tools. For example, you can save money by replacing a faulty light switch or outlet yourself instead of hiring an electrician. The internet is a great resource for learning how to do home repairs, and you can often find step-by-step guides or video tutorials to help you out. Shop Around Don’t just hire the first contractor you come across. Get quotes from multiple contractors to see who can offer the best price. You can also try negotiating with contractors to see if they can lower their price. Use Coupons And Discounts Many home improvement stores offer coupons and discounts on their products and services. Keep an eye out for these deals and take advantage of them when you can. Look for cheaper alternatives: Before you make a purchase, shop around to see if there are cheaper alternatives available. For example, you might be able to find a less expensive brand of paint or a cheaper way to replace your windows. Use Your Skills If you have a particular skill or hobby, you may be able to use it to save money on home repairs. For example, if you’re good at woodworking, you might be able to build your own shelves or repair damaged furniture. Don’t Put Off Home Repairs It can be tempting to put off home repairs, especially if they’re not urgent. However, ignoring a problem can often make it worse and more expensive to fix in the long run. If you take care of problems as soon as you notice them, you’ll save money in the long run. Use energy-efficient products: Replacing old appliances with energy-efficient models can save you money on your energy bills in the long run. Look for products that have the Energy Star label, which means they meet strict energy efficiency guidelines. Use Preventive Maintenance Taking care of your home on a regular basis can help prevent more serious and expensive problems from occurring. For example, replacing the filters in your HVAC system on a regular basis can help prevent it from breaking down. Get A Home Warranty A home warranty is a type of insurance that covers the repair or replacement of certain systems and appliances in your home. It can save you money on costly repairs, especially if you have an older home with systems that are prone to breaking down.  Learn To Compromise Sometimes, you may have to compromise on the quality of materials or the extent of the repair in order to save money. For example, you might decide to patch a hole in your wall instead of replacing the entire wall, or you might choose a cheaper brand of paint. By following these tips, you can save money on home repairs and still keep your home in good condition. Remember to shop around, use coupons and discounts, and take care of problems as soon as you notice them to save the most money.
By Brent Ross 27 Apr, 2022
Lock in Those Mortgage Interest Rates If you’re shopping for a home in today’s competitive market, you’ve likely realized how quickly interest rates have increased over the last few months! Interest rates will affect your monthly mortgage payment, how much you’ll pay over time to your lender for your residence, as well as possibly affect how much you qualify for on a home loan, so ideally, you want them to be as low as possible. Since no one can predict the future, you may want to protect yourself from increasing rates now through our SecureLock Program. What Is SecureLock? The SecureLock Program was established to help potential home buyers and sellers lock in mortgage interest rates at today’s rates for a period of up to 12 months. Our SecureLock essentially means that you’ll be free to look around for a new home without worrying about future increases in mortgage interest rates. In addition, if mortgage interest rates fall before you close on your new home, you’ll be able to take advantage of the new rate with our Float Down features! Our SecureLock give you an extra tool in today’s seller’s market. We’re seeing home values skyrocket, but available housing inventory hasn’t quite caught up to match demand. Thus, buyers who already have their pre-approved mortgage papers in hand are much more likely to have their offer accepted on the home of their dreams. And what’s better, once you’ve been approved for SecureLock, you won’t need to worry about future increases to mortgage interest rates while you’re shopping around. *To qualify for this program, APM must give full credit approval to all borrowers on the loan. There are specific terms for each lock, based on which variation of the SecureLock program is used. Contact us today for full details.
By Brent Ross 08 Mar, 2022
Let’s Dive into Tax Breaks for Homeowners! Looking for tax breaks for homeowners that you can take advantage of? Let’s take a look at options. Buying a home requires a fair chunk of change these days, and even with a significant down payment, you’ll have to budget for monthly mortgage payments, homeowner’s insurance, property tax, and of course, ongoing maintenance to protect your investment. You’ll be happy to hear, then, that there are tax breaks for homeowners specifically designed to help you save a little money following this major purchase. Which payments can you save on? Is homeowner’s insurance tax deductible? What about property tax? How can you benefit from owning a home when it comes to filing your annual income tax returns? These questions and more are answered below. Deduct Your Mortgage Interest Payments You’ll find that the bulk of monthly mortgage payments goes to interest early in the life of the loan, while the percentage that goes toward principal increases over time. The good news is that you can deduct your mortgage interest payments on your Primary Residence from your income taxes. This is a huge boon when you first buy your home and are adjusting to new monthly payments. If you’re looking for a new homeowner tax credit or deduction to add to this, remember that you can also deduct the value of any points you bought to reduce your mortgage interest rate. Deduct Annual Property Tax Bills No matter where you live, you’re going to pay property taxes, so you may naturally be interested to find out whether you have a claim for homeowners’ property tax exemptions. Like mortgage interest, you can deduct property taxes up to a threshold of $10,000 annually (or $5,000 if married and filing separately). There is one caveat here. The $10,000 limit includes your deduction for state and local tax payments. In other words, if you deduct $5,000 in state tax, you can only deduct up to $5,000 in property tax payments. Improving Your Property? There’s a Deduction for That Whether your home is dreadfully outdated, you need a new roof, or it’s simply not your style, you might want to put some money into upgrades and renovations. Is there a homeowners’ tax credit for home improvements? If you take out a home equity loan or home equity line of credit (HELOC) for the specific purpose of improving your property, you can deduct the interest payments on your taxes, so long as the work is considered to be a capital improvement (adding value or extending the usable life of your property). Remote Work Could Save You Money Recent trends have seen many professionals moving into remote work situations. If you’re self-employed or do freelance work, you can deduct the expenses associated with a home office, within limits. Deductions are based on the square footage of your office compared to the square footage of your home. Make the Most of Moving Expenses While there isn’t a specific first-time homeowners’ tax credit aside from the deductions every homeowner enjoys, you might be able to save on the cost of moving to your new home if the move is related to changing jobs. Expenses like transportation, lodgings, and storage fees associated with your move could qualify for a tax deduction if you meet specific requirements, namely that your new workplace is 50 miles further from your home than your previous job was. A primary residence is the biggest asset many adults own, but that doesn’t mean you should spend more than you have to. With tax breaks to help you save, you can make the most of this major investment. As always, it is best to consult a Tax Professional to learn more about these and other possible tax breaks that can help add savings to all the other benefits of owning a home!
By Brent Ross 03 Feb, 2022
Looking to Increase the Value on Your Home? Purchasing a home is a significant milestone in one’s life…AND it is thought of as one of the largest financial investments in your future! While regular mortgage payments pay down the loan balance on the home loan over time, there are additional improvements and adjustments you can make to your property that will rapidly increase the market value of homes and provide a significant return on your investment. So, let’s take a deeper dive into some home improvements that can increase the value of your home and then cover ways you can fund those improvements. How to Increase Equity on Your Home Homeowners should explore simple, low-cost ways to raise the value of their property, especially if they expect to sell soon . If you’ve been considering how to increase the value of your home or wondering which home upgrades increase value, keep on reading! Increase Energy Efficiency Due to greater attention on environmental issues and an awareness that energy efficiency reduces costs on utility bills, today’s homebuyers typically place a larger focus and value on eco-friendly energy-saving amenities. If you’re replacing in-home items, such as your stove or furnace, look for energy-efficient models that can help you save money on your electric and gas bills. There are many contractors out there that are trained on quick and easy improvements that can be made to the structure to increase the energy efficiency. Consider replacing your old thermostat with a smart, Set Back Thermostat that saves you money on energy. Upgrading old leaky windows and seals around doors does more than you would think! Focus on Finished Square Feet The amount of square footage has a significant impact on the value of a home. Realtors regularly will use price per square foot to help clients compare homes with similar styles and upgrades. Larger homes usually attract higher prices, and even if an appraiser doesn’t recognize the full worth of the extra space, many times additional living space can be created by designing decks, outdoor kitchen areas, and finishing out a basement. A buyer will surely notice! The obvious option to really expand your home is to add a room. Square footage is defined by spaces with floor coverings, as well as finished walls and ceilings. This is currently a very popular way to go to improve your home value and make it more functional for your needs. This however, is more expensive and would be more of a long-range plan. Create or Improve High Equity Rooms Kitchens and bathrooms are two spaces in a home that usually impact prospective purchasers the most. They’re also the areas of your home that go out of style the quickest, like appliances, materials, as well as décor. As a result, investing in kitchen and bathroom renovations is a wise decision. Bathroom upgrades and renovations are particularly cost-effective, especially if you’re building a new bathroom or expanding to a larger size. Consider Curb Appeal Enhancing curb appeal is an important step in increasing the marketability of your home. For example, an overall landscape makeover can go a long way. Adding a paver front walkway, as well as stone planters, shrubbery, and mulch, could all help to increase the value of your home. A fresh paint color is also listed as what catches the eye of a prospective buyer first! If you don’t expect to sell right away, a new deck or outdoor kitchen can increase the value of your home while also making it more comfortable and livable. Funding Improvements Updates/upgrades seldom return their entire cost, but they can improve your family’s comfort and possibly help you sell your home faster and for more money. If you don’t have the cash to pay for home upgrades that increase value, there are other alternatives! Do yourself a favor and search the “value of my home”. While you’re now aware of how you might be able to add value to your home, the question will be how to pay for everything? People have utilized everything from getting a gift from a family member to all the different ways to finance it…short term and long term! One thing to remember if you are doing these upgrades to sell your home to buy another property, be aware that any additional borrowing could change your credit scores and or increase your debt ratios! Credit Cards Putting home improvements on a credit card could be a good idea if you can pay off the entire amount in a reasonable timeframe. Just remember, from an Interest rate cost, this is the most expensive alternative unless it can be paid back quickly! Extensive work might be out of reach of your credit card limitations. Home Equity Loans Home equity types of loans can come in a couple of different plans. There are pure 2 nd ’s that might be appropriate. Basically, you are going in and borrowing a portion of the equity built into your current home value. This creates a lump sum amount of money that you can then use for the project(s). Another type is a Home Equity Line of Credit, sometimes referred to as a HELOC. This is something akin to the concept of a Credit Card where the equity can be drawn on, paid back, and then used again…creating an Open-Ended account. It would have limits on the amount accessible based upon the current equity. Both options convert the properties equity into useable capital…without disturbing or changing the 1 st mortgage already in place. Interest rates, fees, monthly payments, and tax advantages are all factors to consider with home equity loans and HELOCs. Cash-Out Refinance Many times, a more economical way to get access to your homes equity is to do a complete new Cash Out Refinance. It gives you the lowest rates and helps spread the monthly cost over a longer period. The cash out can be used for many purposes…home improvements, but also to pay off higher interest rate debts, college tuition, or any number of other investments. It is a good way to turn the passive equity into active purposes! It has been reported that more than half of homeowners who participated in a cash-out refinance used the money they received for home improvements that increased value. Not all of these options are right for every borrower! It is best to chat with a mortgage Loan Officer to investigate each alternative and then decide which is best for you and your family! Big Valley Mortgage has Loan Officers that would be happy to discuss your goals to help you figure it out. Another tool that might help make it easy is our convenient refinance mortgage calculator to give you an idea of what you could be approved for. Either way, we look forward to helping you!
By Brent Ross 06 Jan, 2022
How long is the home buying process? You may be tempted to start going to open houses immediately, but there are a handful of things you should do before getting serious about the home buying process checklist . Just a few of the things you’ll want to do consist of speaking with a mortgage lender, securing financing, and then working with a real estate agent to have your offer accepted on your way to closing. We hope you will keep on reading to be guided along the first-time homebuyer’s roadmap with this step-by-step home buying process guide from the professionals at Big Valley Mortgage. Meet with a Mortgage Lender Even if you aren’t ready to apply for a loan, talking with a mortgage lender should be the initial step in the first-time home-buying process. A mortgage lender can determine whether you’re financially ready to buy a home and what price range you should be looking at. We call this the loan process roadmap. An experienced lender can inform you what measures you need to take if you aren’t in a good position to secure financing, such as improving your credit. Why should you start with a mortgage lender? It’s best to get expert counsel from the start! It’s all too easy to make misinformed decisions that can impact the home buying process timeline. A knowledgeable lender can prevent that from happening. Get Your Finances in Order If a lender has given you advice on how to get your finances set for a mortgage, stick to it. To get your finances in the best possible shape, you may need to take a few steps. No matter what the lender tells you, improving on some areas is never a bad idea! This approach may include: Saving for a down payment Improving your credit score (the higher, the better) Having more funds for closing costs Paying down outstanding debt Doing these things can increase the amount you’re approved for, thus getting you into a nicer home. A Variety of Mortgage Options The mortgage alternatives available to you will be determined, in part, by your financial condition. Though some first-time buyers may be scraping by and seeking the smallest down payment possible, this isn’t necessarily the best option. It’s ideal to speak with a mortgage lender to determine the best loan for you, which isn’t always the one that gets you into a property with the smallest down payment. You could be eligible for a variety of home loans, which may include first-time homebuyer incentives. Alternatives include conventional loans such as those associated with FannieMae or FreddieMac, as well as those insured by the Federal Housing Administration , Veterans Affairs , or the United States Department of Agriculture , all of which need little or no down payment. Get Pre-Approved! A mortgage pre-approval can explain a lot of things regarding your financial situation when it comes to purchasing your first house. It will inform you how much you can spend, tell you which mortgage programs you qualify for, and provide you with a preapproval letter that makes your offers stand out to sellers. Most sellers want proof of pre-approval before accepting an offer. Sellers may reject your offer if you don’t have a preapproval letter. Even so, a preapproval assures them that you have the means to purchase the property. If you’re self-employed, this step can be a bit taxing. Make sure you have all of your documents ready , including pay stubs, tax returns, and recent bank statements. Request a Quote If you’re ready to take one of the first steps in owning your own home, congratulations! Now that you know how to start the home-buying process, what are you waiting for? Big Valley Mortgage would love to discuss home buying options with you. Potential buyers are able to easily request a quote and get all of the vital information they need to start the home search!
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