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What Are the Best First-Time Home Buyer Loans in Roseville?

Thu, 26 Mar 2026 16:47:31 GMT

The Quick Answer: For most first time home buyer loans in Roseville, an FHA loan is often the best choice due to its low down payment and flexible credit requirements. However, conventional programs and down payment assistance can also be ideal. At Big Valley Mortgage, we help you compare these options to find the perfect fit for your budget.

By: Big Valley Mortgage

You’ve done the hard work. You’ve scoped out the beautiful trails at Maidu Regional Park, grabbed coffee at your favorite local spot, and decided that Roseville is exactly where you want to plant roots. But as you start looking at listings, a familiar sense of dread creeps in.

The skyrocketing cost of entry, specifically the down payment, feels like a massive wall standing between you and your front door. It’s frustrating to feel like you’re doing everything right, yet the finish line keeps moving. At Big Valley Mortgage, we believe the path to homeownership shouldn't feel like an impossible climb. You deserve a clear, manageable route to owning a home in the community you love.

As your mortgage company in Roseville, CA , we’ve guided thousands of local residents through this exact challenge. We know the local market, and more importantly, we know the programs designed to help you win.

What Are the Best First-Time Home Buyer Loans in California?

When you're ready to stop renting and start building equity, the "best" first time home buyer loans depend entirely on your financial starting point. However, in our experience helping Roseville families, three primary options lead the pack:

1. FHA Loans: The Low-Barrier Entry

FHA Loans for First-Time Buyers are incredibly popular for a reason. They allow a low down payment and are more forgiving of credit scores that aren't yet "perfect." If you’re a teacher at one of our local schools or a professional just starting your career, this is often the most accessible path.

2. Conventional Down Programs

Many buyers don't realize that you don't always need an FHA loan to get a low down payment. Certain conventional loans allow low down payments and can sometimes offer lower long-term insurance costs if your credit is strong.

3. Down Payment Assistance (DPA)

California offers specific programs (like CalHFA) that can practically eliminate the "down payment wall" by providing secondary loans to cover your upfront costs.

Local Insight: In today's market, first time buyers made up 24 percent of all home buyers. You are certainly not alone in this journey, and the resources available to you have never been more robust.

How to Get First Time Home Buyer Loans Without the Stress?

Many prospective buyers ask us how to get a mortgage without the stress typically associated with the process. The secret lies in early preparation and local expertise.

1. The Consultation: We sit down to discuss your "why." Are you looking for more space, a better commute, or a long-term investment?

2. The Analysis: We review your credit profile and debt-to-income ratio to determine your true purchasing power.

3. The Pre-Approval: In a competitive market like Roseville, a "Big Valley Mortgage Pre-Approval" carries weight with local sellers. It shows you’re backed by a company named one of the country’s top 15 largest independent mortgage banks.

4. The Hunt: With your numbers locked in, you can shop for homes with the peace of mind that your financing is secure.

Why Choose a Local Roseville Mortgage Company?

In a world of online "push-button" lenders, local expertise matters. Roseville isn't just a zip code to us; it’s our backyard. When you work with a mortgage lender in Roseville, CA , you’re working with people who understand the specific appraisal nuances of Placer County and have established relationships with local real estate agents.

Whether you’re looking for a cozy starter home or a place with a big backyard for the kids to run, we provide the expert perspective you need to avoid common pitfalls. We take the mystery out of how to get a mortgage so you can focus on the excitement of your new home.

The road to homeownership doesn't have to be a solo trek. You deserve a mortgage company in Roseville, CA , that goes above and beyond to support your unique ambitions. Whether you are curious about FHA loans or ready to start the full application process, we are here to provide the roadmap.

Your dream home in Roseville is waiting. Let’s make sure you have the right keys to open the door.

Author Bio: Big Valley Mortgage

Since 1990, Big Valley Mortgage has been dedicated to helping families throughout Roseville, Elk Grove, and Fresno turn their homeownership dreams into reality. As a division of a top 15 national independent mortgage bank, we combine industry-leading strength with a deep, personalized commitment to delivering exceptional service in our local communities. We are more than just lenders; we are your partners in making a positive impact and supporting your unique path home.

How to Qualify Income Limits & Home Loans in Roseville, CA?

Mon, 09 Mar 2026 17:52:16 GMT

The Quick Answer: In 2026, Roseville home buyers using USDA loans typically face household income limits of approximately $121,900 for 1-4 person households. However, for most home loans in Roseville, CA, such as FHA or Conventional, there are no strict "maximum" income limits, though your debt-to-income ratio remains the primary qualifying factor for the best mortgage lender in Roseville, CA .

The dream of homeownership often feels like a moving target. Just when you think you’ve saved enough or found the right neighborhood near Maidu Regional Park, the goalposts shift. In 2026, many Roseville families find themselves stuck in a cycle of "analysis paralysis," overwhelmed by shifting interest rates and complex qualifying rules. At Big Valley Mortgage, we’ve spent decades helping neighbors turn that confusion into a clear, actionable path forward.

By: Big Valley Mortgage

What are the Income Limits for Roseville home Mortgages for 2026?

When you’re looking for the best mortgage lender in Roseville, CA, the first question is usually: "Do I make too much or too little to qualify?" In 2026, the answer depends entirely on the "loan bucket" you fall into.

USDA Loans : These are the most geographically specific. For the Sacramento-Roseville-Folsom metro area, the 2026 income limits are higher than standard rural areas to account for the local cost of living.
FHA and Conventional Loans : These programs generally do not have a "ceiling" on what you can earn. Instead, they focus on your overall financial health and ability to repay the loan. As long as your monthly debt obligations (including your new mortgage) stay within the lender's required balance relative to your gross monthly income, you’re in the running.
First-Time Buyer Programs : Some specialized down-payment assistance programs in Placer County do have income caps. These are typically calculated based on the Area Median Income (AMI) . Depending on the specific program, eligibility is often reserved for those earning a set portion of that median figure.

Understanding these numbers is the first step in moving from a place of uncertainty to a place of authority. We’ve seen many buyers assume they were "priced out" or "earned out," only to discover a program they hadn't considered.

How Do I Get Home Loans in Roseville, CA, in Today’s Market?

If the market feels like a maze, consider us as your navigator. You don’t need to have every answer today; you just need a reliable 3-step plan:

1. The Financial Audit: We sit down (or hop on a Zoom) to look at your "real" numbers. We’ll look past the surface-level credit score to find the strengths in your financial profile.

2. The Program Match: Whether you are looking at Roseville mortgage refinancing loans to lower a previous high-rate or seeking a low-down-payment FHA loan for a new build in Westpark, we match your goals to the right product.

3. The Pre-Approval Power-Play: In a market where inventory has risen by roughly 30% to 40% compared to last year, having a "Gold Standard" pre-approval from Big Valley Mortgage means you can walk into a home near The Fountains at Roseville with the confidence of a cash buyer.

Why Are Roseville Home Loans Changing in 2026?

The Roseville market is in a unique state of "rebalancing." Unlike the frantic bidding wars of years past, we are seeing a healthier equilibrium.

Local Insight: Inventory has risen by roughly 30% to 40% compared to last year, allowing for more choices and less intense competition.

This shift is a massive win for you. While the "villain" of high-interest rates hasn't entirely vanished, the increased supply means you finally have the leverage to ask for seller concessions or take the time to conduct a thorough home inspection. Whether you're eyeing a classic property in Diamond Oaks or a modern layout in Fiddyment Farm, the 2026 landscape rewards the patient, prepared buyer.

Are Mortgage Refinancing Loans with the Best Mortgage Lender in Roseville, CA, Worth It Right Now?

Many homeowners who purchased when rates were at their peak are now looking for a way out of high monthly payments. If you are currently feeling the "rate squeeze," home loans in Roseville, CA , could be your bridge to financial breathing room.

Refinancing isn't just about a lower rate; it’s about restructuring your life. Perhaps you want to tap into your home's equity to renovate your kitchen or consolidate high-interest debt. By analyzing the current 2026 market trends, we can help you determine the "break-even point" to ensure that refinancing actually puts money back in your pocket rather than just adding more fees.

We see the frustration that comes with "one-size-fits-all" banking. That’s why we take a guide-level approach, ensuring you understand every "why" behind your loan's "how."

Stop wondering if you're overpaying and start saving. As the trusted mortgage company in Roseville, CA , contact us today to see how much your monthly payment could drop.

About the Author: Big Valley Mortgage

Big Valley Mortgage is a premier mortgage company headquartered in Roseville, CA. Since 1990, we have been dedicated to providing specialized lending solutions, including first-time buyer programs, VA loans, and mortgage refinancing loans. Our mission is to provide the local expertise and personalized service that turns the complex mortgage process into a clear path toward homeownership.

Are First Time Home Buyer Loans Worth It in a High-Interest Market?

Wed, 14 Jan 2026 18:06:59 GMT

Let’s be real for a second when it comes to fir st time home buyer l oans . Opening Zillow these days can feel a bit like watching a scary movie. You see a house price you like, but then you check the estimated monthly payment, and your jaw hits the floor. It is a tough environment out there. But despite the scary headlines, people are still jumping in. In fact, first time buyers made up 24 percent of all home buyers recently. That means nearly a quarter of the market consists of folks just like you. They are all trying to figure out if grabbing the keys to a new place is a smart financial move or a trap.

So, is it worth it? When mortgage rates today are hovering higher than we have seen in years, does it make sense to lock in a loan? Or should you keep renting and waiting for a crash that might never come? Let's look at the details of first time home buyer loans and see if the math still works in your favor.

First Time Home Buyer Loans: Do the Benefits Still Outweigh the Costs When Rates Are High?

The short answer is often yes. You just have to be strategic about it.

When people talk about high interest rates, they often forget about the huge perks designed just for rookies in the housing market. Programs like FHA loans allow you to put a low down payment. This keeps cash in your pocket for renovations or rainy days. Even if the monthly interest stings a bit right now, getting your foot in the door allows you to start building equity immediately. That beats paying your landlord’s mortgage any day.

Think about the concept of "dating the rate and marrying the house." It sounds cheesy, but it is popular for a reason. You can always refinance when rates eventually dip. However, over the long term, home prices generally only increase. First time home buyer loans are designed to bridge that gap. They offer lower credit score requirements and down payment assistance that conventional loans just don't offer. If you wait for the "perfect" rate, you might find yourself priced out of the house entirely by the time that rate arrives.

How Mortgage Companies in Roseville, CA Help Buyers Navigate a High-Interest Market

You wouldn't try to fix your car transmission after watching one YouTube video, right?

The same logic applies to buying a house in a crazy market. This is where local knowledge becomes your secret weapon.

Mortga ge companies in Roseville, C A , understand the specific quirks of the local market that national call centers just miss. They know which neighborhoods are rising in value. They know which local grants are currently funded. They also know how to structure a deal to get the seller to pay some of your closing costs.

This is where a team like Big Valley Mortgage really shines. As one of the top lenders in the area, they don’t just plug your numbers into a calculator. They look at your whole financial picture. They help you navigate the chaos to find a payment that doesn't ruin your life.

Here is how a local pro can help you win:

Access to temporary buydowns many sellers are willing to offer concessions right now. A skilled lender can use that seller money to buy down your interest rate for the first year or two. This gives you a lower monthly payment while you settle in.

Expertise in FHA and VA loans government-backed loans can be tricky. You need someone who knows the inspection requirements inside and out so you don't lose your deposit on a technicality. Local lenders like Big Valley Mortgage can spot these issues before they become deal-breakers.

Refinancing strategies a good loan officer isn't just there for the closing. They are there for the life of the loan. They will monitor mortgage rates today and alert you the second it makes financial sense to refinance and drop your payment.

Buying a home right now isn't for the faint of heart, but it is far from impossible. If you have a stable income and plan to stay put for a few years, the tax benefits and equity growth often beat renting. This is true even with higher rates. You just need the right team in your corner.

Whether you are looking at first time home buyer loans or conventional options, working with reputable experts like Big Valley Mortgage ensures you aren't walking into this blind. They can help you sift through the noise and find a program that fits your budget.

Here is one last stat to chew on. In 2025, the median down payment among all buyers was 19%. It was 10% for first-time buyers and 23% for repeat buyers. You don't need 20% down to start your journey.

Find out exactly where you stand in today's market. Connect with Big Valley Mortgage, one of the be st companies in Roseville, CA , now to explore your options and leave the rental life behind.

How Seasonal Price Shifts Impact Home Loans in Roseville, CA More Than You Think

Wed, 10 Dec 2025 19:39:36 GMT

Seasonal price trends influence home loans in Roseville, CA , and these shifts pack a bigger punch than most buyers expect. Here’s something many don’t realize right away: sixty-four percent of all buyers use a fixed-rate mortgage. Seventy-seven percent of first-time buyers choose a fixed-rate loan too, and so do 60 percent of repeat buyers.

If so many buyers lock into long-term, predictable loans, then timing matters even more.

Why?

The month a buyer purchases a home often determines the price they pay, their potential interest rate, and ultimately the price of the house they can afford.

That’s exactly why a trusted mortgage company in Roseville, CA , like Big Valley Mortgage, keeps a very close eye on seasonal shifts. When prices change, buyer activity changes, and mortgage approvals shift right along with them.

This guide breaks down how seasonal trends quietly shape affordability and how buyers can use these patterns to secure stronger home loans in Roseville, CA. It also answers a simple but highly overlooked question: When is the smartest time to buy?

Why a Mortgage Company in Roseville, CA Tracks Seasonal Trends Before Approving Home Loans in Roseville, CA

Most buyers only look at the asking price of a home. A seasoned mortgage team, however, tracks the patterns behind those prices. Seasonal shifts affect the full picture, including interest rates, inventory, demand, and competition. Here are the biggest reasons lenders pay attention.

1. Seasonal Prices Shape Borrowing Power

When home prices rise in peak seasons (usually spring and early summer), buyers often qualify for less. A higher purchase price means:

A larger loan amount
Higher monthly payments
A higher debt-to-income (DTI) ratio

Even a small bump in home prices can push some buyers out of approval range. A mortgage company in Roseville, CA , studies these patterns to help buyers understand how far their budget will stretch during each quarter of the year.

2. Buyer Competition Affects Loan Approval and Negotiations

More buyers in the market mean more bidding wars. When bidding wars drive prices above the asking price, lenders step in. They check:

Is the home worth the final offer price?
Does the appraisal support the number?
Can the buyer cover gaps if needed?

In slower seasons, these problems rarely come up. That’s why many Roseville buyers get easier approvals during the winter months.

Big Valley Mortgage often explains it this way: the house doesn’t change from July to December, but buyer competition does, and that affects what a lender can comfortably approve.

3. Seasonal Cash Flow Patterns Affect Buyers’ Finances

People tend to spend more during the holidays. Kids start school in the fall. Work bonuses often arrive in winter. All these patterns impact a buyer’s ability to save, reduce debt, or plan for a down payment.

A mortgage advisor studies these patterns to help buyers choose the right moment to apply. Waiting just 30 days can sometimes improve credit utilization, increase savings, or lead to better pricing.

4. Rates Often Shift With the Seasons

Interest rates rise and fall year-round. They tend to fluctuate more during seasons when real estate activity spikes. A higher rate changes everything:

Monthly payments
Total loan cost
Long-term affordability

A smart lender pays close attention to the timing of rate fluctuations and helps buyers understand how to get a mortgage approval that fits their long-term goals, not just the moment they’re shopping.

How Winter and Spring Market Cycles Shape Pricing, Demand, and Home Loans in Roseville, CA

Seasonality in Roseville follows a predictable rhythm, but few buyers know just how much these cycles impact their loan options. Here’s a breakdown of what typically happens each season and why it matters.

Winter: The Hidden Window for Better Deals
Winter stays quieter, and that usually means lower prices, less competition, and more room for negotiation. Homes often sell closer to asking price, giving buyers a better chance at staying within budget. Rates may soften as the year ends, and without bidding wars, buyers often secure stronger home loans in Roseville, CA , with more flexibility.

Spring: Prices Rise and Buyers Move Fast
Spring brings higher demand, rising prices, and faster offers. Families enter the market before summer, creating more competition and pushing buyers to act quickly. Rates can shift week to week, and pre-approvals need to be ready. A strong plan is key for buyers who want predictable fixed-rate options during this busy season.

Summer: The Peak of Activity and Pricing
Summer is the busiest time of year, and prices often hit their highest point. Buyers may feel stretched as inventory grows but competition stays strong. Loan approvals can become tighter, and underwriting may require more documentation. With the right strategy, buyers can still stay competitive without overspending.

Fall: A Balanced Season With More Flexibility

Fall settles the market and creates a more even playing field. Prices stabilize, competition cools, and sellers become more open to negotiation. Many buyers who skipped the hectic spring and summer find fall to be the ideal time to secure comfortable financing and make confident decisions.

What Local Buyers Learn From a Mortgage Company in Roseville, CA About Timing Their Home Loans in Roseville, CA

Timing is everything in real estate. That’s why Big Valley Mortgage spends time helping buyers understand:

1. The Right Season Can Save Thousands

When demand drops, sellers negotiate. Lower prices mean:

Smaller loan amounts
Lower monthly payments
More buying power

This is often where winter and fall shine. Buyers don’t have to rush into bidding wars, which means they get more value for their money.

2. Seasonal Rates Change Affordability

Rates impact affordability just as much as prices. Even a 0.25 percent difference in rates can add up over a 30-year mortgage.

That’s why studying the rhythm of rates helps buyers choose the right time to lock.

3. Market Cycles Should Match the Buyer’s Goals

Some buyers want the lowest price. Some want the widest selection. Some want the fastest closing. Timing depends on the goal.

A good lender helps buyers weigh questions like:

Do you need more choices?
Do you need less competition?
Are you trying to maximize affordability?
Would waiting a month help your credit or savings?

These simple questions build a smarter path toward securing the best home loans in Roseville, CA.

4. Seasonal Shifts Can Help With Mortgage Refinancing Loans Later

Many Roseville buyers refinance after a few years when rates drop or home values rise.

Seasonal patterns impact refinancing too because:

Winter refinances often see lower rates
Fall refinances benefit from steady valuations
Spring and summer refinances may close faster due to market momentum

Understanding these patterns gives homeowners a clearer roadmap for long-term planning.

Seasonal trends influence Roseville real estate in ways that many buyers don’t fully notice. Prices shift. Competition changes. Rates go up and down. All these elements shape how much home a buyer can afford and when they should apply for home loans in Roseville, CA.

A seasoned mortgage company in Roseville, CA , like Big Valley Mortgage, helps buyers study these patterns so they can move with confidence. With the right timing, the right guidance, and the right loan program, buying a home becomes less stressful and far more rewarding.

Buyers who purchased previously owned homes were most often considering a better price at 36 percent .

If you're planning a move, thinking about mortgage refinancing loans, or simply want to understand how to get a mortgage approval that fits your goals, Big Valley Mortgage is ready to guide the way. Reach out to Big Valley Mortgage, a trusted mortgage lender in Roseville, CA , and explore the smartest path toward homeownership today!

Refinancing Secrets Only the Best Mortgage Lender in Roseville, CA Will Tell You

Tue, 11 Nov 2025 22:08:36 GMT

A mortgage lender in Roseville, CA , knows better than anyone that mortgage rates are now at their lowest level since October 2024. That means homeowners thinking about refinancing could be sitting on a golden opportunity. When you work with the best mortgage lender in Roseville, CA, you don’t just get lower rates; you get insight, strategy, and the kind of financial advice that turns an ordinary refinance into a smart money move. Let’s uncover some of the real secrets top lenders share with their clients to help them save big.

Why Working with a Trusted Mortgage Lender in Roseville, CA Can Unlock Better Refinance Rates

Here’s what you get when you team up with the right pros.

1. Local market knowledge
A lender who works in Roseville understands local home values, appraisal patterns, and community trends. That insight helps them spot refinance opportunities others miss. For example, if your home’s value has increased, the lender might help you leverage that equity for a better deal.

2. Personalized service vs. standard offers
Big national lenders might treat you like another file number. A local mortgage lender in Roseville, CA, will dig deeper, asking why you’re refinancing, what your goals are, and how your finances look. That personal touch means your loan is tailored to fit your life, not the other way around.

3. Smarter timing advice
Since rates are lower now, a trusted lender helps you decide when to lock in or wait. They’ll walk you through how to get a mortgage and discuss mortgage refinancing loans at the perfect moment instead of rushing the process.

4. Awareness of hidden costs
Refinancing isn’t just about the interest rate. Your lender should help you understand closing fees, break-even timelines, and whether refinancing is really worth it. This transparency keeps you from facing surprises later on.

Insider Tips from the Best Mortgage Lender in Roseville, CA to Maximize Your Savings

Are you prepared for the real deal? These are the insights the top lenders share when helping clients save money and reduce loan stress.

Tip 1: Check your credit twice
Your credit score is a major factor in how low your rate can go. Before applying for a refinance, pull your credit report and correct any errors. Then talk to your lender about how those changes could improve your loan terms. Sometimes a month’s wait can mean thousands in savings.

Tip 2: Know your break-even point
Every refinance has costs, appraisals, closing fees, and other charges. A great lender will calculate how long it’ll take before your lower payment makes up for those costs. If you plan to move soon, refinancing might not be worth it.

Tip 3: Pick the right loan term
Shorter loan terms, like 15- or 20-year options, can save you a ton in interest. Even if monthly payments are slightly higher, your total cost over time is much lower. The best mortgage lender in Roseville, CA , will help you figure out which term fits your goals best.

Tip 4: Roll in other debts strategically
Got credit card or car loan balances with high interest? A savvy lender might show you how to use refinancing to simplify and lower your total monthly debt. The key is balancing what you owe and what you can comfortably afford.

Tip 5: Watch rate trends
Even after you lock in, rates can shift. The best lenders keep an eye on market changes, Fed announcements, and Treasury yield movements. That extra awareness can help you capture the best possible moment to finalize your loan.

Tip 6: Know when to skip refinancing
Not every homeowner benefits from refinancing. If your balance is small, your rate is already low, or you’ll move soon, it might not be worth it. A trusted mortgage lender in Roseville, CA, will be honest enough to tell you that upfront.

Refinancing can open doors to lower payments, faster debt payoff, and long-term financial stability, but only if you work with the right team. Partnering with a mortgage lender in Roseville, CA , who knows the market can make all the difference. If you’re looking for the best mortgage lender in Roseville, CA, Big Valley Mortgage has the experience, transparency, and local expertise to help you navigate every step with confidence.

Now’s your chance to make the most of these low mortgage rates and start saving more each month. Remember: 74% of all buyers financed their home purchase this year, down from 80% last year. Among them, 91% of first-time buyers and 69% of repeat buyers chose financing. Could refinancing be your smartest move yet?

If you’re thinking about buying a new home or refinancing your current one, the best mortgage lender in Roseville, CA , Big Valley Mortgage, is here to help.

Refinancing in Today’s Market? Why You Need a Mortgage Company in Roseville, CA on Your Side

Wed, 22 Oct 2025 17:32:14 GMT

A trusted mortgage company in Roseville, CA , like Big Valley Mortgage, plays a major role in helping today’s buyers achieve homeownership. Did you know that eighty percent of recent buyers financed their home purchase? Even more striking, ninety-six percent or more of buyers aged 43 and younger needed financing, while only fifty-seven percent of older baby boomers and just 50 percent of the silent generation did the same. That’s a significant difference, and it highlights the importance of financing for today’s buyers.

This is where the right mortgage partner comes in. Choosing a trusted mortgage company in Roseville, CA, can make all the difference, especially for those navigating the market for the first time. From understanding loan options to comparing mortgage rates today, first time home buyers benefit from professional guidance that turns a complicated process into a manageable journey.

How a Mortgage Company in Roseville, CA Helps First Time Home Buyers Navigate the Market

Buying your first home comes with excitement, but also plenty of questions. What first time home buyers loans option are available? How much down payment is needed? What do lenders look for in approval? A local mortgage company answers these questions with clarity and patience.

Why Local Knowledge Matters

Neighborhood Insights: A local lender knows Roseville’s housing market, from starter homes in family-friendly neighborhoods to higher-end communities. That knowledge helps buyers align their budget with realistic expectations.
Personalized Service: Unlike big online-only lenders, local mortgage companies offer face-to-face support. Buyers can walk in, sit down, and get answers on the spot.
Tailored Loan Options: First time buyers often explore FHA Loans because of their low down payment requirements. A knowledgeable local team like Big Valley Mortgage can explain how FHA loans compare with conventional loans and VA loans.

Big Valley Mortgage stands out as the best mortgage company in Roseville, CA because it combines personal service with competitive loan products. Their team understands that first time buyers don’t just need numbers; they need someone who will explain every step of the way.

The Benefits of First Time Home Buyers Loans and Local Expertise

Many first time home buyers hesitate because the financial side seems overwhelming. That’s where first time home buyers loans become the key to unlocking homeownership.

1. Lower Down Payments

First time home buyers loans , such as FHA loans, often require only low down payments; that’s far less than the traditional. For young families or recent graduates, this makes entering the housing market more attainable.

2. Flexible Credit Requirements

Not everyone has a perfect credit score, especially when just starting out. FHA loans are more forgiving, giving buyers a chance to qualify even with moderate credit. This flexibility means more people can buy sooner instead of waiting years.

3. Assistance Programs

Local lenders in Roseville often connect buyers to state or city programs that provide down payment or closing cost assistance. This added support can be the final piece that helps a renter step into their first home.

4. Competitive Mortgage Rates Today

First time home buyers often stress about rates. The truth is, mortgage rates today shift with the economy. A local mortgage company can help lock in a favorable rate at the right time. That timing and advice matter more than chasing numbers online without context.

Why Partnering with a Mortgage Company in Roseville, CA Makes Financing Simpler

Let’s face it, mortgage paperwork can feel like a foreign language. That’s why working with a trusted mortgage company in Roseville, CA, makes life easier.

Streamlined Process
Big Valley Mortgage and similar companies use technology to speed things up. Online applications, digital document uploads, and real-time updates keep the process moving smoothly. Buyers don’t feel lost or left in the dark.

One-on-One Guidance

Explaining Terms: What’s the difference between fixed-rate and adjustable-rate mortgages? How does private mortgage insurance (PMI) affect the monthly payment?
Loan Comparisons: First time home buyers often compare FHA loans with conventional loans. A mortgage advisor breaks down the pros and cons in plain terms.
Budget Planning: Mortgage advisors also help buyers understand not just what they can qualify for, but what they can comfortably afford month to month.

Trusted Reputation
Big Valley Mortgage has earned a reputation as a go-to lender in Roseville. They’ve built trust by being consistent, transparent, and approachable. For first time home buyers who are nervous about making mistakes, this trust is invaluable.

Additional Tips for First Time Buyers

Sometimes it helps to see advice in a quick list. Here are practical steps first time buyers can take:

1. Check Your Credit Early

Pull your credit report before applying. If there are errors or debts to resolve, fixing them early boosts your chances of approval.

2. Save for More Than the Down Payment

Closing costs, inspections, and moving expenses add up. Planning ahead reduces stress at the finish line.

3. Get Pre-Approved

Pre-approval shows sellers you’re serious. It also sets realistic price limits, so you don’t waste time on homes outside your budget.

4. Work With a Local Pro

Choosing a local mortgage partner like Big Valley Mortgage means more personal support. They’ll advocate for you and guide you through Roseville’s specific market conditions.

Common Questions First Time Home Buyers Ask

1. What if my credit isn’t perfect?

FHA loans were designed with this in mind. They offer flexibility that helps buyers with average credit still qualify.

2. Do I need a large down payment to buy a home?

Not necessarily. Many first time home buyers use programs that make homeownership more accessible with manageable down payment options.

3. Are mortgage rates today high?

Rates fluctuate daily. The key isn’t just the rate itself but locking it in at the right time. A mortgage advisor can help watch the market and guide you toward a smart decision.

Buying a home for the first time doesn’t have to be overwhelming. With the right support, handling loan options, comparing mortgage rates today, and choosing between FHA loans and other programs becomes a clear and manageable process. That’s why partnering with a trusted mortgage company in Roseville, CA , like Big Valley Mortgage, is such a smart move. Their local expertise and one-on-one approach give first time buyers the confidence to take that next big step.

Remember this: sixty-four percent of all buyers used a fixed-rate mortgage . Among them, seventy-seven percent of first time buyers and sixty percent of repeat buyers preferred fixed-rate stability. That shows what today’s buyers value most: security, predictability, and peace of mind.

So, are you ready to explore your options and find the best first time home buyers loans for your future? Reach out to a trusted mortgage company in Roseville, CA , Big Valley Mortgage, today and take the first confident step toward your new home.

The Best Mortgage Lender in Roseville, CA for Self-Employed Buyers: No W-2? No Problem

Tue, 09 Sep 2025 16:44:24 GMT

Being self-employed offers freedom and flexibility, but when it comes to securing a mortgage, finding the right mortgage lender in Roseville, CA , can seem like a challenge. A W-2 is a tax form that reports the wages earned by employees and the taxes withheld by their employer. W-2 employees receive a regular paycheck with automatic tax deductions. Self-employed individuals don’t receive a W-2. Instead, they must handle their own taxes, including paying self-employment taxes and estimated quarterly tax payments.

Unlike W-2 employees, self-employed applicants must provide more proof of their income and business legitimacy, including business licenses, insurance, articles of incorporation, profit-and-loss statements, tax returns, bank statements, and any unpaid receivables.

If you're self-employed and looking for a mortgage lender in Roseville, CA, you may be wondering, "Can I qualify for a mortgage without a W-2?" The positive news is that you absolutely can! But the process might require a bit more paperwork and a lender who understands your unique situation.

In this article, we'll explore how the best mortgage lender in Roseville, CA , can make the home loan process easier for self-employed buyers, even if you don't have a W-2. Let's dive in and learn how to secure the financing you need, whether you're just starting out or looking to upgrade your property.

Why Choosing a Mortgage Lender in Roseville, CA Matters for Self-Employed Buyers

When you're self-employed, your financial situation is often different from that of a W-2 employee. This means that the process of getting a mortgage may be slightly more complicated. For example, many lenders prefer W-2 employees because their income is steady and easy to verify. However, for self-employed buyers, things can get a bit more complex.

Here’s why choosing the right mortgage lender in Roseville, CA is so crucial:

Specialized Knowledge of Self-Employed Applicants: Not all lenders understand the unique financial aspects of being self-employed. The best mortgage lender in Roseville, CA, will have experience with self-employed buyers and know how to assess non-traditional forms of income.
Flexible Loan Options: Self-employed buyers often have fluctuating income, making it difficult to qualify for conventional loans. The right lender can offer a variety of loan options, including non-QM (non-qualified mortgage) loans, which may be better suited for those who don't have the typical W-2.

Understanding of Tax Returns and Financial Statements: Lenders that specialize in self-employed borrowers will know how to look at tax returns, business expenses, and other financial documents to get a clear picture of your income and ability to repay the loan.
Practical Service: A great mortgage lender in Roseville, CA, will take the time to understand your financial situation and help you through the process, step by step. They’ll be available to answer questions and offer guidance, making the entire process less stressful.

How the Best Mortgage Lender in Roseville, CA Helps You Qualify Without a Traditional W-2

Many self-employed buyers worry that they’ll be turned down for a mortgage because they don’t have the typical W-2 income verification that many lenders require. But don’t worry, because there are ways to qualify for a mortgage without that traditional paycheck.

Here’s how the best mortgage lender in Roseville, CA can help you:

Reviewing Business Income: Rather than looking at a W-2, the best lenders will focus on your business income over the past few years. They’ll typically request two years of tax returns, including your Schedule C, to assess your net income. If you’ve consistently made a profit, you're on the right track.
Using Profit-and-Loss Statements: In addition to tax returns, a solid mortgage lender in Roseville, CA, will ask for your business’s profit-and-loss (P&L) statements. These documents give lenders insight into your earnings, expenses, and overall financial health.
Considering Bank Statements: If your business is strong, but your tax returns aren’t as impressive (due to deductions or other factors), the best mortgage lender in Roseville, CA might look at your bank statements. This gives them a clear picture of your cash flow and can help support your loan application.
Taking Unpaid Receivables into Account: If you have clients who owe you money, this can be considered part of your income. Lenders will look at your unpaid receivables to determine how much money you expect to bring in, helping to balance any fluctuations in your income.
Offering Alternative Loan Programs: Some self-employed buyers may not meet traditional lending criteria but can still qualify for specialized loan programs. A great mortgage lender in Roseville, CA , will guide you toward these options, which can be perfect for your situation.

Tips to Qualify Without a W-2: How the Best Mortgage Lender in Roseville, CA Can Help

While it’s certainly possible to get a mortgage without a W-2, you’ll need to be prepared and follow a few key steps. Here's a breakdown of the best tips to help you qualify for a mortgage as a self-employed buyer:

1. Keep Your Financial Records Organized:

Tax Returns: The most important document a lender will ask for is your tax return. Make sure you've filed your returns for the past two years, and that they’re complete and accurate. If you’ve written off business expenses, make sure these are reasonable and documented.
Bank Statements: A lender may also ask for personal and business bank statements for the last 3 to 6 months. Be prepared to provide these as well. Keep your accounts organized and free of unnecessary fees.

2. Prepare a Profit-and-Loss Statement:

If you don't have a P&L statement, it's a good idea to create one, even if it’s just a simple spreadsheet. This will demonstrate your business’s financial health and make it easier for the lender to assess your income.

3. Don’t Forget About Your Down Payment:

A larger down payment can help increase your chances of getting approved. Self-employed buyers often need to put down a larger percentage, typically 20% or more, compared to traditional buyers. This helps offset the risk for lenders and shows that you’re financially stable.

4. Consider Non-QM Loan Options:

Non-QM loans are designed specifically for self-employed buyers or those who don’t meet the standard requirements for a conventional loan. These loans can help you qualify with a more flexible approach to income verification.

5. Work With a Lender Who Understands Self-Employed Buyers:

The best mortgage lender in Roseville, CA, will have experience working with self-employed individuals and can offer guidance throughout the process. They’ll know what documents you need, how to assess your income, and how to make your application as strong as possible.

The Best Mortgage Lender in Roseville, CA: Big Valley Mortgage

If you're looking for the best mortgage lender in Roseville, CA, look no further than Big Valley Mortgage. They understand the unique challenges that self-employed buyers face and are here to help. Their team is experienced in working with self-employed individuals and will guide you through the process with ease.

If you need help understanding your mortgage rates today, Big Valley Mortgage has the expertise to guide you through every detail. For those wondering how to get a mortgage with a non-traditional income, their team provides personalized solutions to help you secure the best terms and make your home-buying journey as smooth as possible.

Getting a mortgage as a self-employed buyer can feel overwhelming, but with the right mortgage lender in Roseville, CA, it’s entirely possible. The best mortgage lender will work with you to assess your financial situation, find the best loan options, and guide you through every step of the process.

Seventy-four percent of all buyers financed their homes last year, down from 80 percent the year before, showing how lending trends continue to shift. If you're self-employed and wondering how to get a mortgage, Big Valley Mortgage is here to guide you every step of the way. With their expertise, you can navigate the process confidently, secure the best deal possible, and qualify for the home loan you need, even without a W-2.

Big Valley Mortgage stands out as the best mortgage lender in Roseville, CA , thanks to its one-on-one service, local market knowledge, and dedication to helping buyers succeed. From self-employed individuals to traditionally employed buyers, their team provides the right guidance and options to turn homeownership goals into reality.

First Time Home Buyer Loans: 7 Little-Known Programs That Could Save You Thousands

Mon, 11 Aug 2025 22:08:19 GMT

Did you know that first time home buyer loans are more accessible than ever, thanks to rising household income? Over the past two years, the median income for first-time home buyers has increased by $26,000 and is now reaching around $97,000. That’s great news if you're looking into buying your first home. But even with a healthy income, purchasing your first property can feel challenging. What if there were hidden loan programs that could save you thousands? Let’s find out the seven first time home buyer loans most people overlook.

7 First Time Home Buyer Loans Most People Overlook (But Could Save You Thousands)

Are you taking the leap into homeownership for the first time? Before you dive in, it’s important to explore every financing option available. Many buyers miss out on valuable programs simply because they don’t know they exist. If you’re purchasing your primary residence or planning for a future getaway spot, these lesser-known loan options could help you save big. And if you're not sure where to begin, it's always a smart move to find real estate agents who understand these programs and can guide you through the process with confidence.

1. Good Neighbor Next Door Program

This hidden gem is perfect if you're a teacher, firefighter, emergency medical technician, or police officer. You could score up to 50% off the listing price of homes in designated revitalization areas. The catch? You'll need to commit to living there for at least 36 months. But hey, saving half the price on a home is a fantastic deal, isn't it?

2. USDA Loan Program

Dreaming of a peaceful suburban or rural lifestyle? A USDA loan could help. These loans offer zero down payment and low-interest rates for homes in eligible rural and suburban areas. Even better, the income limits are quite generous, often higher than you’d expect. Many people mistakenly assume it’s only for farmland, but don’t make that mistake!

3. HomePath Ready Buyer Program

For first time home buyers, Fannie Mae’s HomePath program provides closing cost assistance. You just have to complete an online homebuyer education course first. Not only will you save thousands on closing costs, but you'll also learn valuable home buying tips along the way.

4. VA Loans

If you or your spouse have served in the military, you qualify for a VA loan. VA loans offer unbeatable perks like no down payment, no private mortgage insurance (PMI), and competitive interest rates. Surprisingly, many eligible veterans overlook this benefit, leaving thousands of dollars on the table.

5. CalHFA MyHome Assistance Program

California residents, especially those exploring homeownership with a mortgage company in Roseville, CA, may find real value in CalHFA’s MyHome Assistance Program. This program provides down payment support as a deferred-payment loan. Repayment only begins when you sell, refinance, or fully pay off your first mortgage.

6. FHA 203(k) Loan Program

Eyeing a fixer-upper? The FHA 203(k) loan is your best friend. It covers the purchase price and the renovation costs, all bundled into one convenient loan. These FHA loans save you the hassle and additional costs of getting a separate loan for repairs. Turn that rundown house into your dream home without breaking the bank.

7. Energy Efficient Mortgage (EEM)

Want to go green and save green? An Energy Efficient Mortgage can help you finance energy-saving improvements as part of your home purchase loan. Not only do you get a more energy-efficient home, but you'll also enjoy lower utility bills. This little-known loan is perfect for eco-conscious buyers who appreciate long-term savings.

How a Mortgage Company in Roseville, CA Can Help You Access First Time Home Buyer Loan Programs

Navigating these loan programs can be tricky. A trusted mortgage company in Roseville, CA , like Big Valley Mortgage, can guide you every step of the way. Here's how:

Expert Knowledge: They know the ins and outs of these loan programs and can find the perfect fit for your situation.
Simplified Process: They handle the paperwork, help you qualify, and streamline the application process.
Local Insights: They understand the Roseville housing market intimately, ensuring you get the best local advice and support.

Choosing the right mortgage company makes all the difference. So, why not reach out to Big Valley Mortgage, your reliable mortgage company in Roseville, CA?

First time buyers made up 32 percent of all home buyers this past year, a jump from 26 percent last year. That means now is a fantastic time to join the growing number of savvy buyers benefiting from hidden loan programs. Are you ready to start your home buying journey?

Reach out to Big Valley Mortgage, your go-to mortgage company in Roseville, CA . Get expert advice and find the perfect first time home buyer loans to save you thousands. Why wait? If your dream home and significant savings are just a call away.

What Teachers Should Know Before Meeting a Mortgage Lender in Roseville, CA

Tue, 08 Jul 2025 17:26:11 GMT

If you're a teacher starting to look into home loans in Roseville, CA, you're not alone. Buyers continue to see purchasing a home as a good financial investment, and in fact, 79% of recent buyers believe that homeownership is still a smart move. For educators especially, finding the right support can make all the difference. If you're a teacher planning to meet with a mortgage lender in Roseville, CA , it's important to come prepared, understand your options, and know what to expect.

Big Valley Mortgage is making that easier with their STaR Loan Program, built specifically to support teachers and school staff. But before you dive into the process, there are a few key things you should know.

Find the Best Mortgage Lender in Roseville, CA for Educators

As a full-time teacher, your time is limited, and your financial decisions matter. That’s why working with a trusted mortgage lender in Roseville, CA , is crucial. Here’s what you’ll want to keep in mind before sitting down for that first meeting:

1. Know Your Teaching Credentials and Employment Status

Most educator-focused loan programs, like Big Valley Mortgage’s STaR Loan Program, require that you hold a valid teaching credential and are employed full-time in a public or private school. Have your documentation ready so you can move forward smoothly.

2. Understand Your Credit Score and Budget

Before any lender discussion, check your credit score. It plays a big role in determining your mortgage rate. Also, map out your monthly budget so you know how much home you can realistically afford. This will help your lender match you with the right loan product.

3. Prepare for the Paperwork

Mortgage applications can involve a lot of documentation. Be ready to provide:

Proof of income
Bank statements
Tax returns
Employment verification

Having these documents upfront can speed up the process.

Flexible home loans in Roseville, CA for Teachers

Not every home loan fits every buyer, and that’s especially true for educators. Fortunately, programs like Big Valley Mortgage’s STaR Loan are tailored to meet the needs of school staff and teachers looking for flexible and affordable home loans in Roseville, CA .

Key Program Advantages from Big Valley Mortgage

Big Valley Mortgage goes above and beyond for teachers with the following benefits:

Save $500 in reduced lender fees for qualified teachers
Gift funds accepted for 100% of the home purchase down payment
Lender-paid mortgage insurance options to lower monthly costs
Access to FHA loans, VA, and conventional mortgages based on what fits best

These perks not only make homeownership more affordable, but also show appreciation for the work teachers do in the community.

Why FHA Loans Might Be a Great Fit

FHA loans are a popular choice among educators because they typically require lower down payments and are more forgiving of lower credit scores. If you’re just starting your career or managing student loans, this could be a smart route to consider.

Consider Mortgage Refinancing Loans for Future Flexibility

Once you're a homeowner, your financial goals might change. Teachers often take advantage of mortgage refinancing loans later down the road to lower their interest rates or switch loan types. Working with a local mortgage lender in Roseville, CA , who understands your long-term goals can help you make those adjustments when the time comes.

Big Valley Mortgage is a trusted resource for educators in the Roseville community. Their STaR Loan Program was designed with teachers in mind, offering meaningful savings, flexible funding options, and access to supportive lending professionals who value the impact teachers make every day.

If you're buying your first home or upgrading to fit your growing family, home loans in Roseville, CA don’t have to be overwhelming. Having a knowledgeable lending partner and the right tools can help you take that next step with confidence.

And here’s a fact to keep in mind: Eighty percent of recent buyers financed their home purchase . With the right support, you can too.

Teachers do so much for their communities — it’s time they get the support they deserve when buying a home. If you’re an educator thinking about meeting a mortgage lender in Roseville, CA , make sure you understand your options, ask the right questions, and partner with someone who truly values your work.

Start your journey with Big Valley Mortgage and explore how their STaR Loan Program can help you secure a place to call your own.

First Time Home Buyer Loans Explained: What Lenders Don’t Always Tell You

Tue, 10 Jun 2025 21:03:01 GMT

Buying your first home from a mortgage company in Roseville, CA , is a major milestone, but it can also be confusing. While first time home buyer loans are designed to help make things easier, not every detail is shared upfront. In the last two years, first time home buyer household income has grown by twenty-six thousand dollars. This year’s report shows that the median household income of first time home buyers reached ninety-seven thousand dollars. That’s a solid starting point, but income alone does not guarantee the best deal or the smoothest experience.

For anyone entering the market, it helps to work with a mortgage company in Roseville, CA that goes beyond the basics. Big Valley Mortgage, for instance, understands that first time buyers need more than just approval. They require comprehensive information, including the minor details that some lenders may overlook. This guide breaks down what really matters.

Behind the Fine Print: Understanding the True Costs and Benefits of First Time Home Buyer Loans

Many first time buyer loan programs are marketed as great deals, but the truth is a little more complicated. Here are the things lenders tend to skip over.

1. Low Down Payment Can Mean Higher Costs in the Long Run

Programs that offer down payments as low as three percent are appealing at first. But a smaller down payment often means higher monthly payments. You will also pay more interest over the life of the loan, and you will almost always be required to carry mortgage insurance. That extra insurance cost can add hundreds to your monthly bill and might last for years.

2. Mortgage Insurance Doesn’t Always Go Away

Some loans, like FHA loans, require you to pay mortgage insurance for the full term of the loan, no matter how much equity you build. Conventional loans may let you cancel mortgage insurance once you reach 20 percent equity, but the process takes time and often requires a formal request. This is not something most lenders make clear upfront.

3. Not Every Loan Program Fits Every Buyer

There are many loan types available, and each one is designed for a different situation. For example:

FHA loans offer flexibility with credit scores but come with long-term insurance costs.
USDA loans are ideal for rural buyers but have strict location requirements.
VA loans provide excellent benefits but are only available to eligible veterans.

Choosing the wrong loan could cost you more money or limit your options. A one-size-fits-all approach just does not work.

4. Closing Costs Add Up Fast

Closing costs usually range between two and five percent of the home’s purchase price. For a $400,000 home, that means you might need an extra $8,000 to $20,000 in cash. Lenders sometimes gloss over these details until the final paperwork. Always ask for a complete estimate early so you can plan ahead and avoid surprises.

Mortgage Company in Roseville, CA: What First Time Buyers Should Know Before Choosing a Loan Program

When it comes to choosing a lender, local experience makes a big difference. A mortgage company in Roseville, CA, can offer insights and options that a national chain may not.

1. Local Expertise Can Save You Time and Stress

A mortgage company in Roseville, CA, understands the regional housing market and can match you with programs that make the most sense for your location. They know which neighborhoods qualify for specific assistance programs and how to speed up the approval process based on local regulations.

2. Look for Clarity, Not Just Promises

Avoid lenders who brush over your questions or fill the conversation with complicated terms. A trustworthy lender will explain the real meaning of every rate, fee, and term without making you feel like you need a law degree to understand it.

3. Find a Loan That Works for You

The right lender will listen to your financial goals and help you find a loan that fits, and not just the one they want to sell. This includes helping you understand how to get a mortgage that suits your lifestyle and long-term plans.

Buying your first home is more than a transaction. It is the start of a new chapter. That is why first time home buyer loans deserve more attention than just comparing mortgage rates today. You need to understand the real cost, the loan terms, and how your decision will affect your future.

By working with an experienced mortgage company in Roseville, CA, like Big Valley Mortgage, buyers get the full picture. That means no surprises, no confusion, and no regret after the deal is done.

As housing trends continue to shift, more buyers are stepping into the market. In 2024, seventy-five percent of younger millennials and forty-four percent of older millennials were first time home buyers . If you are ready to be a first time home buyer, make sure you choose a lender who puts your goals first.

Take the first step today. Reach out to the best mortgage company in Roseville, CA , Big Valley Mortgage, and find the loan that fits your life, not just your price range.

The Smart Buyer’s Checklist: Getting Home Loans in Roseville, CA

Thu, 08 May 2025 17:06:10 GMT

Buying a home is a big deal — emotionally and financially. And if you’re thinking about getting home loans in Roseville, CA , you’re definitely not alone. Sixty-six percent of all buyers used conventional loans to finance their homes . In fact, 67% of Younger and Older Millennials opted for a conventional loan, and the number jumps to 70% for Older Baby Boomers and the Silent Generation.

In a market like Roseville, where homes move fast, working with the right mortgage lender in Roseville, CA , is crucial. Big Valley Mortgage, one of the most trusted names around, knows exactly how to help buyers like you find the right fit. Let's dive into what you need to know.

What to Expect When Applying for Home Loans in Roseville, CA

Applying for home loans in Roseville, CA isn’t rocket science, but it definitely involves a few key steps and decisions. You’ll need to understand your financial situation, gather documents, and choose a loan that fits your goals and budget. The good news is that it's not as difficult as you might think. With the right guidance, the process is manageable and often quicker than expected. Here’s what you can expect:

1. Pre-Approval First
You’ll want a pre-approval letter in hand before house hunting. It shows sellers you're serious and gives you a clear price range. Big Valley Mortgage can help speed up this process by offering fast and reliable pre-approvals.

2. A Full Credit Check for Mortgage
Be ready for a review of your finances. A credit check for mortgage applications includes pulling your credit score, checking your debts, and verifying income. If you’ve been keeping things tidy, you’re already ahead of the game.

3. Loan Options Galore
Depending on your situation, you might qualify for conventional loans, FHA loans, VA loans, or even USDA loans. Each comes with its own perks. FHA loans, for example, are great for buyers who need a lower down payment.

4. Paperwork, and Lots of It
You'll need to provide bank statements, tax returns, pay stubs, and more. Keep a folder handy to stay organized.

5. Appraisals and Underwriting
Once your offer is accepted, the lender will order a home appraisal. After that, your loan moves into underwriting, where every document is triple-checked.

Finding the Right Mortgage Lender in Roseville, CA: Questions to Ask

Not all lenders are created equal, and choosing the wrong one can cost you both time and money. That’s why it’s important to go beyond just interest rates and look at the lender’s reputation, flexibility, customer service, and communication style. Do they respond quickly? Do they take the time to explain your options clearly? When you're shopping for a mortgage lender in Roseville, CA , these details can make or break your experience. Here’s a cheat sheet of questions to help you narrow down your options with confidence.

1. What Loan Programs Do You Offer?
Make sure they offer a wide range of loan options. You don't want to get pigeonholed into one type.

2. What Are the Current Interest Rates?
Rates can change daily. Ask for today's rates and what factors (like your credit score) might influence them.

3. What’s the Total Cost of the Loan?
This includes fees, closing costs, and the APR. Big Valley Mortgage is known for transparency, so you’re never left guessing.

4. How Fast Can You Close?
In a hot market like Roseville, you need a lender who can move quickly.

5. Can You Help Me If My Credit Isn’t Perfect?
Some lenders are more flexible with lower credit scores or special programs like FHA loans.

Tips to Compare Home Loans in Roseville, CA and Choose the Best Fit

Choosing the right home loans in Roseville, CA , isn't just about chasing the lowest interest rate. While that number matters, it's just one part of the bigger picture. The overall cost of the loan, flexibility of terms, and the lender's customer service can greatly impact your experience and your wallet over time. Here’s what else to keep an eye on:

1. Compare Loan Types
Conventional, FHA, VA, and USDA loans each have pros and cons. FHA loans are often ideal for first-time buyers with smaller down payments. Meanwhile, conventional loans might be better for those with strong credit and larger savings. VA loans are geared toward veterans and active service members, offering excellent terms with no down payment. USDA loans are great for rural properties and low-to-moderate-income borrowers.

2. Review Closing Costs
These can vary widely. Some lenders charge higher origination fees, while others bundle services at a discount. Make sure to request a Loan Estimate from each lender you're considering. This will break down all expected costs so you can compare apples to apples.

3. Understand Mortgage Insurance Requirements
Some loans require private mortgage insurance (PMI) if your down payment is under 20%. It’s beneficial to factor that into your monthly payment estimates. PMI can add a significant amount to your costs over time, so look into options for removing it once your loan-to-value ratio improves. Some lenders, including Big Valley Mortgage, can help you strategize how to eliminate PMI faster.

4. Watch Out for Prepayment Penalties
Not all loans allow you to pay off your mortgage early without fees. Ask upfront. If you think you might refinance, sell, or pay off your loan ahead of schedule, a prepayment penalty could cost you. It’s always wise to read the fine print and confirm the terms before committing.

5. Customer Service Matters
A responsive, friendly lender like Big Valley Mortgage can make the process smoother and less stressful. Good service can save you time, help you avoid costly mistakes, and give you peace of mind through a complicated transaction.

Getting the right home loans in Roseville, CA, isn't just about finding the cheapest deal. It's about partnering with a mortgage lender in Roseville, CA, who understands your needs, like Big Valley Mortgage. They can help you with the paperwork, show you your options, and get you the keys to your dream home.

Remember, seventy-four percent of all buyers financed their homes, which is a decrease from last year’s 80 percent. First-time buyers still heavily rely on financing, with 91 percent needing loans compared to just 69 percent of repeat buyers. If you're a newbie or a seasoned buyer, making smart choices now will pay off for years to come.

If you're serious about buying a home, connect with a mortgage lender in Roseville, CA , like Big Valley Mortgage today, and let them guide you through securing the right home loan!

Avoid These Common Mistakes When Applying for First Time Home Buyer Loans

Fri, 11 Apr 2025 18:16:56 GMT

Buying your first home is exciting, but handling first time home buyer loans can also feel overwhelming. First time buyers made up 32 percent of all home buyers , an increase from 26 percent last year. That’s a big jump, showing more people are stepping into homeownership. However, applying for first time home buyer loans comes with challenges. Many make costly mistakes that delay or even derail their home purchase. The good news is that you can avoid these pitfalls with the right approach and guidance on how to get a mortgage.

First Time Home Buyer Loans: Mistakes to Avoid for a Smoother Approval Process

Buying a home is one of the biggest financial decisions you’ll ever make. As a first time buyer, the process can be confusing, and small missteps can lead to delays or even loan denials. With the right knowledge, you can avoid common pitfalls and secure first time home buyer loans with ease. Here are the most frequent mistakes first time home buyers make and how to steer clear of them:

1. Not Checking Your Credit Score Early

Your credit score plays a huge role in mortgage approval. Many first-time buyers check it too late, only to find issues they could have fixed. A low score can lead to higher interest rates or loan denial, especially when mortgage rates today are already a key concern. Before applying, review your credit report, dispute errors, and pay down debts to improve your score.

2. Overestimating Your Budget

Just because you qualify for first time home buyer loans doesn’t mean you should borrow the maximum amount. Many first time buyers stretch their budget, leading to financial stress later. Factor in taxes, insurance, maintenance, and unexpected expenses. Use a mortgage calculator to determine a comfortable monthly payment.

3. Skipping Mortgage Pre-Approval

A common mistake is starting house hunting before getting pre-approved. Pre-approval shows sellers you’re serious and helps you understand your true budget. Without it, you risk falling in love with a home you can’t afford or losing out to another buyer with financing in place.

4. Ignoring First Time Home Buyer Loans Programs

Many buyers don’t take advantage of special programs designed for first time home buyers. These programs offer lower down payments, reduced interest rates, and grants. Research state and federal programs or consult a trusted mortgage company in Roseville, CA , like Big Valley Mortgage, to explore your options.

5. Making Big Financial Changes Before Closing

Once you apply for a mortgage, avoid major financial changes. Taking on new debt, quitting your job, or making large purchases can affect your approval. Lenders monitor your finances until closing day, so keep everything stable.

6. Not Shopping Around for Lenders

Many buyers go with the first lender they find without comparing rates. Shopping around can save you thousands over the life of your loan. Work with a reputable mortgage company in Roseville, CA. like Big Valley Mortgage, to find the best terms for your situation.

7. Underestimating Closing Costs

Closing costs typically range from 2% to 5% of the home price. Many first time buyers focus on the down payment but forget about closing costs. These include lender fees, title insurance, and escrow fees. Factor these costs into your budget to avoid last-minute surprises.

8. Forgetting About Home Maintenance Costs

Owning a home means handling repairs and upkeep. Many first time buyers don’t plan for these expenses, leading to financial strain. Set aside an emergency fund for unexpected repairs like plumbing issues or roof leaks.

How a Mortgage Company in Roseville, CA Can Help You With Home Loans

Going through the mortgage process alone can be tough. That’s where a professional mortgage company in Roseville, CA, like Big Valley Mortgage, comes in. Here’s how they can help:

One-on-one Loan Guidance: Experts can help you understand first time home buyer loans and find the best one for your needs.
Access to Competitive Rates: They shop around for the lowest rates and best terms, saving you money.
Pre-Approval Assistance: Get pre-approved quickly so you can start house hunting with confidence.
First Time Buyer Programs: A good mortgage company in Roseville, CA, will help you explore grants and assistance programs.
Smooth Paperwork Process: They handle the complex paperwork, ensuring everything is in order for a stress-free closing.

One great option is Big Valley Mortgage, known for its excellent service and expertise with first time home buyer loans. Buying your first home is a huge milestone, and avoiding common mistakes can make the process smoother, easier, and more affordable.

In 2024, the median down payment among all buyers was 18%—nine percent for first time home buyers and 23 percent for repeat buyers. This marked the highest down payment level for first time buyers since 1997 and for repeat buyers since 2003, emphasizing the importance of being prepared financially.

With down payment trends like these, it's crucial to partner with a trusted mortgage company in Roseville, CA , such as Big Valley Mortgage. Their knowledgeable team can assist you with pre-approval, securing lower rates, and providing clear guidance throughout the entire process, making sure your home-buying experience is seamless and successful. Contact Big Valley Mortgage today to start your homeownership journey with confidence!

How to Find the Best Home Loans in Roseville, CA for Your Budget

Fri, 07 Mar 2025 20:09:26 GMT

The California real estate market has been buzzing with activity, and home loans in Roseville, CA are in high demand. Four of the state's five major regions have seen year-over-year growth in home sales : Central Coast (8.3%), Southern California (1.8%), Central Valley (1.1%), and the San Francisco Bay Area (0.2%). However, the Far North region faced an 11% decline. With homeownership on the rise, finding the best mortgage deal that fits your budget is more important than ever. But how do you ensure you secure the right loan?

Handling the mortgage landscape can be overwhelming, but with the right information and a reliable lender like Big Valley Mortgage, you can secure the best rates and terms. Let's dive into the key factors to consider and tips to help you make a smart financial decision.

Key Factors to Consider When Choosing The Best Home Loans in Roseville, CA

Selecting the right home loans in Roseville, CA, involves more than just comparing interest rates. Loan types, down payment requirements, and repayment terms can significantly impact affordability and long-term financial goals. Working with the best mortgage lender in Roseville, CA , ensures expert guidance matched to your needs. First-time buyers, refinancers, and investors can all benefit from understanding these key factors, including mortgage refinancing loans, to secure the best mortgage option for their situation.

1. Loan Type

There are different types of home loans in Roseville, CA available, each with its set of benefits:

Reverse Mortgage: Designed for homeowners 62+, allowing access to home equity as tax-free cash, a line of credit, or monthly income—with no monthly mortgage payments.
FHA Loans: Great for first-time buyers with lower credit scores and smaller down payments.
VA Loans: Exclusively for veterans and active-duty military members, offering zero down payment options.
Refinancing: Allows homeowners to replace their existing home loan to secure a lower rate, adjust loan terms, or tap into home equity.
Purchase Loans: Helping buyers finance their dream home with a variety of loan options fit to different budgets and needs.
Investment Buying: Designed for real estate investors, these loans often require a larger down payment and thorough documentation but provide opportunities to build long-term wealth.
Jumbo Loans: For homebuyers needing a loan that exceeds conforming loan limits, these loans offer financing for luxury properties and high-cost markets.

2. Interest Rates

Interest rates determine how much you’ll pay over the life of the loan. Even a small difference in rates can lead to significant savings. The best mortgage lender in Roseville, CA, such as Big Valley Mortgage, can help you secure a competitive rate.

3. Loan Term

You typically have options like a 15-year or 30-year mortgage. A shorter loan term means higher monthly payments but less interest paid overall, while a longer term offers lower monthly payments but higher total interest costs.

4. Down Payment Requirements

Most conventional loans require a significant down payment, but FHA loans offer lower down payment options. VA and USDA loans even provide opportunities for zero-down financing.

5. Credit Score and Debt-to-Income Ratio

Lenders evaluate your credit score and debt-to-income (DTI) ratio to assess your ability to repay the loan. A higher credit score typically results in better loan terms, while a lower DTI ratio indicates financial stability. A credit check for mortgage is a crucial step in this process, helping lenders determine eligibility and interest rates.

Tips for Securing the Best Rates and Terms for Your Budget with the Best Mortgage Lender in Roseville, CA

Securing the best home loan isn’t just about finding a low interest rate—it requires careful planning, financial preparation, and choosing the best mortgage lender in Roseville, CA . From improving your credit score to understanding different loan options, taking the right steps can make a significant difference. Working with a trusted lender ensures you receive expert guidance matched to your financial situation. Here’s how you can improve your chances of securing a favorable mortgage:

1. Check and Improve Your Credit Score

Your credit score plays a significant role in determining your mortgage rate. To boost your score:
Pay off outstanding debts.
Make timely payments on all credit accounts.
Avoid opening new lines of credit before applying for a mortgage.

2. Save for a Larger Down Payment

A bigger down payment lowers your loan amount and interest rates. If possible, aim for at least 20% to avoid private mortgage insurance (PMI).

3. Compare Lenders and Loan Offers

Not all lenders offer the same rates and terms. Research multiple lenders or work with a mortgage broker like Big Valley Mortgage, known for its expertise and competitive rates in Roseville, CA.

4. Get Pre-Approved

A pre-approval letter strengthens your homebuying power, showing sellers that you are a serious buyer. It also gives you a clear idea of how much you can afford.

5. Lock in Your Interest Rate

Mortgage rates fluctuate daily. Once you find a rate that suits your budget, consider locking it in to protect yourself from potential increases.

6. Reduce Your Debt

Lenders prefer borrowers with a low debt-to-income ratio. Paying off credit cards, auto loans, and other debts can improve your approval chances and loan terms.

7. Work with a Reputable Mortgage Lender

Choosing the best mortgage lender in Roseville, CA can make a huge difference. Big Valley Mortgage offers practical guidance, competitive rates, and customized loan solutions to fit your needs.

Finding the best home loans in Roseville, CA requires research, financial preparedness, and the right lending partner. By considering factors such as loan types, interest rates, and your creditworthiness, you can secure a mortgage that aligns with your budget.

Before purchasing a home, assess your financial stability . Consider your savings, income consistency, credit score, and debt levels. Ensure you have enough funds for a down payment, closing costs, and an emergency reserve.

If you're ready to take the next step, work with Big Valley Mortgage, the trusted name as the best mortgage lender in Roseville, CA , to get expert guidance and the best mortgage solutions for your home-buying journey. Reach out today and make your dream home a reality!

Preparing Your Finances for a Mortgage Company in Roseville, CA

Thu, 13 Feb 2025 18:02:58 GMT

Working with a mortgage company in Roseville, CA to prepare your finances ahead of time can make a significant financial difference when purchasing a home. The Home Mortgage Disclosure Act (HMDA) , enacted in 1975, requires mortgage lenders to maintain and report specific records about their lending practices. The goal is to improve transparency in the residential mortgage market and protect borrowers. When working with a mortgage company, understanding your financial standing and planning accordingly will help you secure the best loan terms possible.

From saving for a down payment to improving your credit score, financial preparation is key to securing a mortgage. This guide will help you get your finances in order and choose the right mortgage lender in Roseville, CA , to make your homeownership dreams a reality.

Tips from a Mortgage Lender in Roseville, CA, to Get Your Finances Mortgage-Ready

1. Assess Your Credit Score

Your credit score plays a critical role in determining your mortgage eligibility. A mortgage lender in Roseville, CA uses it to evaluate your financial reliability and ability to repay the loan. A higher score often translates to better loan terms, such as lower interest rates and higher approval chances. Before applying for a mortgage, check your credit report for any discrepancies or outstanding debts that could impact your score. If necessary, take steps to improve it by paying off debts, making timely payments, and keeping credit utilization low.

2. Save for a Down Payment

While the required down payment varies depending on the loan type and lender, having a larger amount saved can work in your favor. A substantial down payment may reduce your loan amount, lower your monthly payments, and even help you avoid certain mortgage insurance requirements. To achieve this, consider setting up a dedicated savings account and automating contributions to steadily build your funds. Budgeting and cutting unnecessary expenses can also accelerate your savings process.

3. Reduce Your Debt-to-Income Ratio (DTI)

Lenders assess your debt-to-income (DTI) ratio to determine how much of your income is already committed to existing financial obligations. A lower DTI signals that you have a healthy balance between income and debt, making you a more attractive borrower. To improve your DTI, work on paying down credit cards, student loans, or other outstanding debts before applying for a mortgage. Avoid taking on new debt, such as car loans or additional credit lines, during this period, as they can impact your eligibility and borrowing capacity.

4. Gather Important Financial Documents

The mortgage application process requires various financial documents to verify your income, assets, and employment history. These may include tax returns, pay stubs, bank statements, and records of any existing debts or financial obligations. Organizing these documents in advance can help streamline the application process and prevent unnecessary delays. Keeping digital copies readily accessible can also be beneficial if additional verification is needed.

5. Get Pre-Approved

Securing a mortgage pre-approval offers multiple advantages when searching for a home. It gives you a clear idea of how much you can afford, allowing you to focus on homes within your budget. A pre-approval letter also demonstrates to sellers that you are a serious buyer, potentially giving you an edge in competitive markets. Additionally, getting pre-approved can help you lock in an interest rate, shielding you from potential rate increases before finalizing your home purchase.

Why Choosing the Right Mortgage Company in Roseville, CA, Matters for Your Financial Preparation

Finding the right mortgage partner can make a world of difference in your home-buying journey. A reliable mortgage company will provide transparency, excellent loan options, and professional guidance, helping you handle mortgage rates today to secure the best possible deal.

1. Expertise and Local Knowledge

Working with a mortgage company in Roseville, CA , area can make a huge difference in your home-buying experience. A lender like Big Valley Mortgage understands the local real estate market, home values, and current buying trends, giving you a competitive edge. Their expertise helps you handle factors like property taxes, market fluctuations, and community-specific loan programs that may not be available elsewhere. With their insights, you’ll be better positioned to secure a mortgage that aligns with both your budget and long-term financial goals.

2. Wide Range of Loan Options

Different lenders offer different types of loans. A well-established mortgage company, such as Big Valley Mortgage, provides access to various loan programs, including:

Reverse Mortgage
FHA Loans
VA Loans
Jumbo Loans
First-Time Homebuyer Programs
Purchase Loans
Refinancing
Investment Buying

3. Competitive Interest Rates

Interest rates have a significant impact on the total cost of your mortgage. Even a slight difference in rates can save (or cost) you thousands of dollars over the life of your loan. Choosing the right mortgage lender in Roseville, CA , ensures that you receive the most competitive interest rates available for your financial profile. A knowledgeable lender will help you understand how market trends influence rates and guide you in making an informed decision on when to lock in your rate.

Additionally, experienced lenders can assist you in reducing other costs associated with your mortgage, such as closing fees, origination costs, and private mortgage insurance (PMI). Their goal is to provide you with a loan structure that maximizes your savings while ensuring manageable monthly payments.

4. One-on-one Customer Service

Unlike big banks, a local mortgage lender in Roseville, CA, like Big Valley Mortgage, takes the time to understand your financial goals and matches mortgage solutions to fit your needs. Big Valley Mortgage is known for its client-first approach, ensuring a smooth and stress-free loan process.

Buying a home is a big step, but the process can be much smoother with financial preparation. By improving your credit score, saving for a down payment, and reducing debt, you increase your chances of securing the best loan terms.

Additionally, the City of Roseville offers an affordable purchase program to help individuals and families buy homes within the city. This program is designed for those who may need financial assistance to purchase a home in Roseville.

Choosing the right mortgage company in Roseville, CA is equally important. Big Valley Mortgage is committed to helping borrowers handle the home-buying process with ease. If you’re a first-time buyer or looking to refinance, their team is ready to assist you every step of the way.

Are you ready to take the next step? Contact Big Valley Mortgage today and start your journey toward homeownership!

A Step-by-Step Guide to Working with a Mortgage Company in Roseville, CA

Wed, 15 Jan 2025 21:57:43 GMT

Buying a home is one of the most significant financial decisions you'll make in your lifetime. For many, the journey begins with finding the right mortgage company in Roseville, CA . This initial step is significant as it provides the support and guidance needed to overcome the complexities of home financing. Understanding your options is vital, especially when it comes to securing home loans in Roseville, CA.

Learn about six key mortgage types , including fixed-rate, adjustable-rate, FHA, VA, USDA, and bridge loans. Each type has its own unique benefits and suitability depending on your financial situation. This guide will assist you in effectively working with a mortgage company and making informed decisions throughout your home-buying journey.

The Role of a Mortgage Company in Roseville, CA in Your Home Buying Journey

A mortgage company serves as a crucial partner in your home-buying journey. They offer guidance and support throughout the entire process, from pre-approval to closing. Here are some key roles they play:

Pre-Approval Process: A reputable mortgage company will help you get pre-approved for a loan. This step is vital as it gives you a clear idea of how much you can borrow and shows sellers that you are a serious buyer.
Loan Options: They provide various loan products tailored to meet your specific needs. If you're looking for conventional loans or government-backed options like FHA or VA loans, they can help you find the right fit.
Guidance on Documentation: The mortgage process involves significant paperwork. A good mortgage company will guide you through the required documentation, ensuring that everything is for a smooth transaction.
Support with Closing Costs: Understanding and managing closing costs can be tricky. Your mortgage company will explain these costs and help you budget accordingly.

By partnering with a trusted mortgage company in Roseville, CA, you'll gain access to essential resources and expertise, including mortgage refinancing loans, to make your home-buying journey smoother and stress-free.

Understanding Your Options for Home Loans in Roseville, CA

When considering home loans in Roseville, CA , it’s helpful to familiarize yourself with the different types available. Here are six key mortgage types that might be suitable for your financial situation:

Fixed-Rate Mortgages: These loans have a consistent interest rate throughout the life of the loan, making monthly payments predictable. They are ideal for buyers who plan to stay in their homes long-term.
Adjustable-Rate Mortgages (ARMs): ARMs offer lower initial rates that adjust after a specified period. They can be beneficial if you plan to sell or refinance before the rate adjusts.
FHA Loans: Backed by the Federal Housing Administration, these loans are designed for low-to-moderate-income borrowers and require lower down payments than conventional loans.
VA Loans: Available to veterans and active-duty military personnel, VA loans offer favorable terms such as no down payment and no private mortgage insurance (PMI).
USDA Loans: These loans are intended for rural homebuyers who meet specific income requirements. They provide 100% financing and low interest rates.
Bridge Loans: If you're looking to buy a new home before selling your current one, bridge loans can provide temporary financing until your existing home sells.

Exploring these options for home loans in Roseville, CA, will help you make well-informed decisions about which type of loan best fits your needs.

Take the Next Step with Big Valley Mortgage for Your Home Loans in Roseville, CA!

Working with a mortgage company in Roseville, CA, is a key step in turning your homeownership dreams into reality. Going over home loan options such as fixed-rate mortgages and VA loans will allow you to confidently select a solution that meets your financial needs. Stay organized by preparing your paperwork and asking questions to ensure a smooth process.

Roseville, CA, is more than just a place to buy a home—it’s a community full of charm and vibrancy. Downtown Roseville offers scenic biking trails, ample bike parking, and a variety of local attractions, making it ideal for outdoor enthusiasts. Whether you’re preparing for the home-buying journey or enjoying the city’s welcoming atmosphere, Roseville is a wonderful place to call home.

Are you ready to purchase a new home or refinance your current home loan? Wondering, “How many times can you pull credit for mortgage?” Contact Big Valley Mortgage, a trusted mortgage company in Roseville, CA , today and let their expert loan officers guide you every step of the way!

How to Evaluate a Mortgage Lender in Roseville, CA: A Guide for First Time Home Buyers

Fri, 13 Dec 2024 22:14:09 GMT

Understanding how to evaluate a mortgage lender is essential for anyone considering first time home buyer loans .

With California's recent law enhancing protections for mortgage borrowers, now is a wonderful time to equip yourself with valuable knowledge about the home-buying process. Choosing the right mortgage lender in Roseville, CA is crucial to securing the best financing for your needs. This guide will provide the insights you need to begin your home-buying journey with confidence.

Understanding First Time Home Buyer Loans: What Options Are Available?

First time home buyers in Roseville, CA have several loan options, each catering to different financial circumstances. Here are the most common types:

1. FHA Loans

Backed by the Federal Housing Administration, FHA loans are ideal for buyers with lower credit scores or those who cannot afford a large down payment.

2. Conventional Loans

Government-insured conventional loans typically require a higher credit score. They offer flexibility in terms of down payments and can be a beneficial option if you have a solid credit history.

3. VA Loans

Veterans and active military members can take advantage of VA loans, which require no down payment and offer competitive interest rates. These loans are an excellent option for those who have served in the military.

4. USDA Loans

For buyers looking in rural areas, USDA loans require no down payment and are available to low- and moderate-income buyers. In less densely populated regions, these loans aim to encourage homeownership.

Understanding these loan types will help you make informed decisions when selecting your financing option. Always consult with a knowledgeable mortgage lender in Roseville, CA , to explore your choices further.

How to Choose the Best Mortgage Lender in Roseville, CA for Your First Home

Selecting a mortgage lender can be a complex task, but following these steps can make the process easier:

1. Gather Recommendations
Ask friends, family, or colleagues for their lender experiences to find trustworthy options.

2. Read Online Reviews
Check platforms like Zillow and Google Reviews for lender ratings and feedback.

3. Compare Loan Products
Evaluate different loan options, focusing on lenders who specialize in first time home buyer loans.

4. Understand Fees
Request a detailed breakdown of all mortgage-related fees to avoid surprises.

5. Check Qualifications
Know the lender's requirements for credit scores, income verification, and a credit check for mortgage approval before applying.

6. Evaluate Customer Service
Select a lender who communicates clearly and responds promptly to ensure a smoother home buying experience.

By following these steps, you can effectively identify a suitable mortgage lender in Roseville, CA , who will assist you in handling the home-buying process.

Tips for Securing First Time Home Buyer Loans

If you’re looking to secure a loan, here are some tips to help you along the way:

Get Pre-Approved Early:
Starting your mortgage pre-approval early can help you understand your budget and show sellers you're a serious buyer.

Organize Financial Documents:
Prepare your financial paperwork, including tax returns and bank statements. Having these documents ready can expedite the approval process.

Explore Assistance Programs:
Research local and state programs available for first time home buyers. Many offer financial assistance or favorable loan terms.

Stay Flexible:
While winter may have fewer listings, be open to different types of homes or neighborhoods. Flexibility can lead you to unexpected opportunities.

By implementing these tips, you can increase your chances of securing one of the many first time home buyer loans , making a smart financial investment.

Connect with the Best Mortgage Lender in Roseville, CA to Start Your Home Buying Journey Today!

Buying your first home is an exciting journey filled with possibilities. Understanding the various first time home buyer loans, as well as selecting the right mortgage lender, can help you make a successful home purchase. With Roseville emerging as one of California’s top three 'hottest' ZIP codes for 2024, now is the perfect time to invest in your future!

Don’t wait—take action now! Contact Big Valley Mortgage, the best mortgage lender in Roseville, CA today for expert guidance through the process. Their experienced loan officers will assist you from the initial pre-approval to closing, whether you need help understanding how to get a mortgage or have specific questions. Reach out today and make your dream of homeownership a reality!

Best Mortgage Lender in Roseville, CA: Financing Your First Home Made Easy

Wed, 13 Nov 2024 22:10:17 GMT

Best Mortgage Lender in Roseville, CA: Financing Your First Home Made Easy

Finding the best mortgage lender in Roseville, CA is essential for anyone looking to purchase their first home, especially given the current challenges in the real estate market. In 2024, the Roseville housing market is witnessing a significant decline in property transactions, primarily due to rising mortgage rates and economic uncertainties. This makes it even more important for first time buyers to understand their options and select the right financing solutions. With various loans available, including first time home buyer loans, going through the home loan process can feel overwhelming. However, with the right information and guidance, you can make an informed decision that suits your financial situation.

First Time Home Buyer Loans: Key Features and Options

When it comes to first time home buyer loans, several options are available that cater to different financial needs, often requiring a credit check for mortgage approval. Here are some of the most popular choices:

1. FHA Loans

FHA loans are great for first time home buyers due to:

Low Down Payment
Flexible Credit: May qualify with a lower score.
Mortgage Insurance: Additional costs apply.

2. Conventional Loans

Ideal for those with stable incomes and good credit:

Higher Limits: Often larger amounts than FHA loans.
No Insurance with 20% Down: Avoid mortgage insurance if you put down 20%.
Flexible Terms: Various term lengths are available.

3. VA Loans

Perfect for veterans and active-duty members:

No Down Payment: significant benefit.
Lower Rates: competitive interest rates.
No PMI: Saves money over time.

4. USDA Loans

Best for rural homebuyers:

Zero Down Payment: Ideal for low-to-moderate-income buyers.
Lower Rates: often subsidized compared to conventional loans.
Location Restrictions: Ensure eligibility for your area.

Exploring Home Loans in Roseville, CA: Current Trends and Insights for Buyers

As of 2024, the landscape of home loans in Roseville, CA, is changing. Here are key trends for potential buyers:

Rising Mortgage Rates: Fluctuating rates can significantly affect monthly payments and overall affordability, making it crucial to stay informed.

Decreased Property Transactions: Economic uncertainties and rising borrowing costs have led to a notable decline in property transactions this year.

Increased Demand for Affordable Housing : Many first time buyers are looking for budget-friendly homes as costs rise.

Importance of Pre-Approval: In a competitive market, getting pre-approved can give you an advantage, signaling to sellers that you are serious and financially ready to buy.

Contact Big Valley Mortgage Today and Work with the Best Mortgage Lender in Roseville, CA

When searching for the best mortgage lender in Roseville, CA, Big Valley Mortgage is a trusted choice. Since 1990, they have been committed to helping families achieve homeownership through practical service and expert guidance. Their focus goes beyond loans; they create a supportive environment for clients throughout the process.

Big Valley Mortgage has the experience to move through the local market and various loan options effectively. For insights on how mortgage interest rates affect housing affordability, check out the California Association of Realtors (C.A.R.) interactive home affordability tool.

Purchasing your first home can feel scary, especially with current market conditions affecting home loans in Roseville, CA. However, by understanding your options—like FHA loans or conventional financing—and partnering with a reputable lender like Big Valley Mortgage, you can simplify the process significantly. Don’t let rising mortgage rates deter you from pursuing your dream home; take action today!

Are you ready to start your journey with the best mortgage lender in Roseville, CA? Contact Big Valley Mortgage now and find out how they can help you secure financing that is just for you!

Everything You Need to Know About a Mortgage Lender in Roseville, CA

Wed, 16 Oct 2024 18:47:15 GMT

When looking for a mortgage lender in Roseville, CA, it’s crucial to understand the various mortgage products available. In most cases, homebuyers need a mortgage to finance their purchase. Big Valley Mortgage works closely with clients to help them understand their loan options and find the right mortgage that fits their needs. Whether you’re a first-time homebuyer or looking to refinance, knowing the ins and outs of mortgage options can save you time, stress, and money.

With Roseville increasing as one of the most desirable cities in Northern California, understanding the local housing market and partnering with the right mortgage lender is essential. We'll explore lenders' roles, avoiding mistakes when applying for home loans, and why Big Valley Mortgage is a trusted name in Roseville.

The Role of a Mortgage Lender in Roseville, CA in Securing Your Home Loan

Choosing the right mortgage lender is vital in securing a loan that works best for your financial situation. Here’s how a mortgage lender in Roseville, CA help you through the process:

Providing Various Loan Products : If you’re looking for a fixed-rate mortgage, an adjustable-rate mortgage (ARM), or a government-backed loan like VA or FHA loans, a reputable lender will present various loan options. Each loan type is tailored to different financial needs.

Assisting with Pre-Approval : Lenders evaluate your credit score, income, debt-to-income ratio, and other financial details to give you a pre-approval. This process not only clarifies your buying power but also makes you a more attractive buyer to sellers, especially in a competitive market like Roseville, CA.

Guiding the Loan Process : From gathering documentation to securing an appraisal, lenders help facilitate each step of the loan process, ensuring all necessary paperwork is in order so your loan gets approved without delays.

Providing Local Expertise : Established mortgage lenders have a strong understanding of the city’s real estate trends, mortgage rates today, and the specific needs of its homebuyers. This localized knowledge can make a big difference when handling the home loan process.

Common Mistakes to Avoid When Applying for Home Loans in Roseville, CA

The home loans in Roseville, CA ’s process can be complicated, and small missteps can result in delays or even denial of your mortgage. Here are common mistakes to avoid when applying for home loans in Roseville, CA:

Not Comparing Mortgage Lenders

Many first-time buyers make the mistake of sticking with the first lender they encounter. However, different mortgage lenders in Roseville, CA offer varying interest rates and fees. Even a slight difference in interest rates can lead to significant savings throughout your mortgage, so it’s essential to shop around for the best deal.

Ignoring Your Credit Score

Your credit score plays a major role in determining the interest rate and loan amount you qualify for. A higher score usually leads to lower rates, while a lower score could limit your options. Before applying, review your credit report, dispute any errors, and pay off as much debt as possible to improve your chances.

Making Major Financial Changes

One of the biggest mistakes you can make while applying for a mortgage is taking on new debt or making large purchases, like buying a car or opening new credit accounts. These actions can increase your debt-to-income ratio and affect your loan approval.

Forgetting to Get Pre-Approved

A pre-approval gives you a clear picture of how much you can afford, and it shows sellers that you’re a serious buyer. Skipping this step can result in missed opportunities, especially in the Roseville market, which is fierce and where homes can sell quickly.

Avoiding these mistakes can streamline your home loans in Roseville, CA’ s process and put you in the best position to secure the mortgage that fits your needs.

Partnering with Big Valley Mortgage: Your Go-To Mortgage Lender in Roseville, CA

If you’re looking for a trustworthy mortgage lender in Roseville, CA , Big Valley Mortgage should be at the top of your list. Here’s why they’re a great choice:

1. Local Expertise

Big Valley Mortgage knows Roseville inside and out. With years of experience in the local housing market, their team offers the knowledge and insights you need to make informed decisions when purchasing a home in this growing community.

2. Extensive Range of Loan Options

Big Valley Mortgage offers a variety of loan products to accommodate your specific needs, including conventional, FHA loans, and refinancing loans. Their team takes the time to understand your financial goals and matches you with the best loan options.

3. Commitment to Community

Since their founding in 1990, Big Valley Mortgage has been dedicated to helping families in Roseville, Sacramento, Elk Grove, and Fresno. Over the years, their success has helped them grow into one of the top 15 independent mortgage banks in the country through their parent company, American Pacific Mortgage Corporation.

4. Custom Service

Big Valley Mortgage prides itself on delivering a customized experience for every client. Unlike larger institutions, where you feel like just another file, their loan officers take the time to listen, understand your needs, and guide you through every step of the mortgage process.

As Roseville continues to expand, it’s not just the housing market that’s evolving—community spaces like Weber Park are getting a fresh look. The ongoing makeover of Weber Park reflects the city’s commitment to enhancing the quality of life for its residents. Just like the improvements to the park, Roseville’s real estate market is flourishing, offering homebuyers more options and opportunities.

The path to homeownership can be overwhelming, but finding the right mortgage lender in Roseville, CA can make the entire process smoother and more manageable. From understanding the various loan products available to avoiding common mistakes, the right lender will guide you through each step of the process.

Big Valley Mortgage, with its local expertise, diverse loan options, and bespoke service, is the ideal mortgage lender in Roseville, CA , making their team the perfect partner for securing home loans that meet your needs . If you're a first-time buyer or looking to refinance, their team will ensure you find the mortgage that best fits your financial situation.

Home Loans For Nurses – First-time Buyer Options

Thu, 20 Jul 2023 19:06:24 GMT

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.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

5 Tips for First-Time Homebuyers: How to Score the Best Mortgage Deal with Big Valley Mortgage

Wed, 26 Apr 2023 20:06:18 GMT

Tips for First Time Home Buyers Big Valley Mortgage

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.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Mastering Your Credit Score: How to Improve Your Credit Score for Your Dream Home

Thu, 20 Apr 2023 20:01:34 GMT

Mastering Your Credit Score with Big Valley Mortgage

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.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

How Much Mortgage Can I Afford? A Step-by-Step Guide to Finding Your Budget

Mon, 20 Mar 2023 19:56:16 GMT

Find Out How Much Home Loans in Roseville, CA You Can Afford

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!

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

How to Buy a House: A Step-by-Step Guide to Your Dream Home

Thu, 16 Mar 2023 19:50:42 GMT

Your Guide How to Buy a House with Big Valley Mortgage

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?

Find a Real Estate Agent

A good real estate agent can make a world of difference when it comes to finding the right home. They can help you narrow down your search, negotiate with sellers, and guide you through the closing process. At Big Valley Mortgage, we work closely with local real estate agents to help our customers find the perfect home. We can even connect you with an agent in your area who can help you with your search.

Start House Hunting

Once you have your budget, pre-approval, and real estate agent in place, it’s time to start house hunting. Be sure to keep an open mind and visit several different properties to get a feel for what’s available in your price range. You may also want to consider factors like the location, school district, and neighborhood amenities when looking for a home.

Make an Offer

Once you’ve found the perfect home, it’s time to make an offer. Your real estate agent can help you draft an offer letter that outlines the price, contingencies, and any other terms you’d like to include. The seller may accept, reject, or counter your offer, so be prepared to negotiate if necessary. Once you’ve agreed on a price, you’ll enter into escrow, where the sale will be finalized.

Close on Your Mortgage

After your offer is accepted, it’s time to close on your mortgage. At Big Valley Mortgage, we’ll work with you every step of the way to make sure the closing process is as smooth as possible. We’ll help you understand the terms of your mortgage and answer any questions you may have. Once everything is in order, you’ll sign the final paperwork and take possession of your new home.

In conclusion, buying a house can be a complicated process, but with the right team on your side, it can also be incredibly rewarding. At Big Valley Mortgage, we’re committed to helping our customers find the right mortgage product to fit their unique needs. Whether you’re a first-time homebuyer or an experienced one, we’re here to guide you through every step of the process. Contact us today to learn more about our mortgage lending and brokering services and how we can help you achieve your dream of homeownership.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Downsize in Style: How a Reverse 4 Purchase Loan Can Help You Move On

brent.ross@apmortgage.com (Brent Ross) — Wed, 15 Mar 2023 19:40:47 GMT

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 offer an excellent solution for seniors looking to buy a new home without draining their savings or making monthly mortgage payments. This flexible loan option allows seniors to enjoy a comfortable living space that suits their needs.

For those considering a reverse 4 purchase loan, working with a knowledgeable lender is essential. Big Valley Mortgage, recognized as the best mortgage lender in Roseville, CA , has a team of experienced loan officers ready to guide clients through the process and help them find the ideal loan option for their unique situation.

*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.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Get the Inside Scoop on the Hottest 2023 Home Décor Trends

Fri, 10 Feb 2023 20:31:44 GMT

2023 Home Decor Trends from Big Valley Mortgage

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 we’ve got the scoop on the current home décor trends.

Incorporate Organic Materials Into Your Décor

First up, we’re seeing a lot of natural and organic materials being used in home décor. This includes things like wood, stone, and other materials that are sourced from the earth. These elements can bring a cozy, homey feel to a space and can be incorporated through the use of wood accents, stone fireplaces, and other natural features.

Add Vibrant Colors Into the Mix

Another trend that’s big right now is the use of bold, vibrant colors. While neutral tones like white, beige, and gray have always been popular in home décor, there’s a shift towards more daring hues. This can be seen in the use of statement walls, colorful artwork, and bright accents.

Or Keep it Simple and Minimalistic

On the opposite end of the spectrum, minimalism is also a key trend in home décor. A lot of people are opting for a more streamlined, uncluttered look by getting rid of unnecessary items and choosing pieces that are functional and have a clean, simple aesthetic. In the minimalist home, less is more and the focus is on creating a calming, relaxing space.

Add Some Plants for a Natural Touch

Plants are also having a major moment in home décor. They’re a great way to add some life and vibrancy to a space, and you can incorporate them through indoor plants, hanging planters, and even living walls. Plus, plants have the added bonus of improving air quality and adding a bit of greenery to a room.

Blend Outdoors with Indoor Areas

Another trend we’re seeing is the incorporation of elements of nature and the outdoors into home décor. This can be achieved through the use of natural materials like wood and stone, as well as things like wood beams, exposed brick, and large windows that bring the outside in.

Use Mixed Materials for a Dynamic Look

Finally, mixed materials are also a popular trend in home décor. Instead of choosing one type of material for a space, many people are opting to mix and match different elements to create a more eclectic, layered look. This can be seen in the use of mixed metals, stone and wood accents, and other combinations of materials.

So, there you have it—a roundup of the current trends in home décor. Whether it’s through the use of natural materials, bold colors, or plants, there are plenty of ways to bring a sense of warmth, comfort, and vibrancy to your home. For those looking to purchase a new home to bring these trends to life, finding the right mortgage lender in Roseville, CA , is essential. The experienced loan officers at Big Valley Mortgage, the best mortgage company in Roseville, CA , are here to help make homeownership a reality.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Maximize Your Savings: 10 Expert Tips for Affordable Home Repairs

Mon, 09 Jan 2023 19:58:43 GMT

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.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Lock in Your Mortgage Interest Rates with Our SecureLock Program

Wed, 27 Apr 2022 18:54:24 GMT

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.

Who Can Use SecureLock?

SecureLock is a great program for pretty much anyone. There are three separate parts:

Lock and Buy

The lock and buy program is for individuals who are searching for a new home now. It’s great for first-time homebuyers who want to take advantage of rate-locked interest rates while looking for a home that suits them. Under Lock and Buy, you are guaranteed the interest rate that you qualify for when you apply for a loan for up to 12 months.

Lock and List

If you need to sell your current home before you purchase a new one, the Lock and List program is for you. You’ll be able to shop for a new home while waiting to sell your current one. Once you’re fully approved for a mortgage loan, you’ll have peace of mind that the interest rate won’t change while you’re waiting to sell your home.

Lock and Build

Finally, for those who are building a home, Secure Lock also allows you to lock in mortgage rates during the time that the home is being built. It can also be used on construction loans, which are commonly used to build a home before being transferred into a more traditional mortgage.

How Can I Qualify for the SecureLock Program?

If you’re interested in using the SecureLock program, you’ll need to obtain full credit approval for your mortgage loan. This requirement means that you’ll need to go through the entire mortgage loan application process.

Before applying for your mortgage loan, it’s helpful to pull your credit report from all three credit bureaus. This strategy allows you to review the details each report contains. If you notice any discrepancies, now is the time to take care of them.

You’ll also get a copy of your credit score. If your credit score is low, you can attempt to increase it by paying down debt. A good rule of thumb is that your overall credit usage to the maximum amount allotted should be 40% or less to qualify for the best mortgage rates.

Next, you’ll want to determine the amount you’re able to put down on your mortgage.

There’s a pervasive myth in society that you’ll need to have at least 20% of the home purchase price available to put down on your purchase, but that’s untrue. Depending on the mortgage loan that you choose, you may put down anywhere between 3% and 20%.

Finally, you’ll want to put together all of the documents that you need to provide for your mortgage approval. These documents include pay stubs, bank statements, W-2s and tax returns for the past two years, and any other proof of income or assets that you own.

Ready to Lock in Your Mortgage Interest Rate with SecureLock?

If SecureLock sounds like it’s for you, contact Big Valley Mortgage. Talk to your Loan Officer and learn about the costs associated with this program and the steps needed to qualify for the SecureLock program.

This program is tremendously helpful for future homebuyers who don’t want to be rushed into purchasing a home and need the time to shop around to find their perfect match! Learn more about SecureLock and request a quote from Big Valley Mortgage today.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Tax Breaks for Homeowners That Can Save You Money

brent.ross@apmortgage.com (Brent Ross) — Tue, 08 Mar 2022 19:24:32 GMT

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!

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Home Improvements to Increase the Value of Your Home and Ways to Fund Them

Thu, 03 Feb 2022 19:20:01 GMT

Boost Your Home’s Value with Big Valley Mortgage

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, the best mortgage lender in Roseville, CA , has loan officers who would be happy to discuss your goals and help you figure them out. Another tool that might make the process easier is our convenient refinance mortgage calculator, giving you an idea of what you could be approved for. Either way, we look forward to helping you!

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

The First-time Homebuyer Checklist and Home Buying Process Roadmap

brent.ross@apmortgage.com (Brent Ross) — Thu, 06 Jan 2022 19:08:58 GMT

Your First Time Home Buyer Loans Checklist & Roadmap

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!

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

6 Smart Uses for Cash-Out Refinance Equity

Mon, 27 Dec 2021 19:04:31 GMT

If you’re looking for ways to increase your investment portfolio or earn some passive income, take a look at your home equity . Home equity is often underutilized. It grows as monthly mortgage payments are made or as the market value of your home increases. If you are allowing your equity to sit by idly, you may be making a mistake. Fortunately, it’s quite easy to obtain a cash-out refinance and utilize the proceeds in a way that earns additional income to put towards a new investment or eliminating other debts.

What Is a Cash-Out Refinance?

A cash-out refinance replaces your existing home loan, possibly at a lower interest rate. Your new loan will have a higher balance than you currently owe on the home, and the difference between the balance owed on the old mortgage and the new, higher balance is the amount you are able to “cash out.”

How Does a Cash-Out Refinance Work?

Typically, the maximum amount that you can obtain from your cash-out refinance is 80% of the home’s current market value. 20% equity is usually required to be left in the refinanced loan. There are loans that will go higher such as FHA and VA loans.

For example, if you have a current mortgage balance of $200,000 and your home’s value is $320,000, then you can obtain a new mortgage for $256,000 (80% of $320,000). The difference of $56,000 is the amount you will receive in cash, less closing costs.

Cash-out refinance rates vary, but are currently between 3 and 5% depending on factors such as the borrowers credit, the LTV, the type of the loan, and whether the borrower lives in the property or it is an investment property.

Ways to Maximize the Value

There are several ways to make the most out of your home’s equity. These include:

1. Cash-Out Refinance to buy an Investment Property

One great way to expand your financial portfolio is to buy an investment property. Purchasing a second property can allow you to quickly expand your wealth.

In many cases, homeowners will purchase another property and rent it out, then obtain another loan to purchase a third property. This gives the owner a strong portfolio of real estate assets that they are able to rent out, giving them the income needed to repay their loans.

Real estate has a strong tendency to increase in value over time, which improves the overall value of a financial portfolio.

2. Pay Off Credit Card Debt

Paying off credit card debt with high interest rates increases monthly cash flow, allowing the borrower to enjoy greater financial flexibility and eliminate wasteful interest payments.

3. Complete Home Improvement Projects

Utilizing cash-out refinancing money towards home improvement projects can improve the long-term market value of your home. These projects can include landscaping, remodeling of the interior, or upgrading the roof, which are all great ways to protect the value of a home.

4. Add to Existing Investments

You can utilize a cash-out refinance to invest in items that also reduce your taxes, such as College 529 Savings Plans or IRAs.

5. Purchase a Second Home

If you’re interested in owning a second home to use as a vacation home or to support a family member, a cash-out refinance is a great way to obtain the down payment needed to purchase one.

6. Protect Against Cash Flow Emergencies

Having a nest egg available can help in the event of a crisis in which immediate funds are needed.

Want to Learn More?

Submit a quote request and we’ll reach out to you to discuss your options!

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Home Selling Made Simple: Follow These Steps

Tue, 07 Sep 2021 17:54:31 GMT

Selling your home can be a challenging, involved process that leaves you overwhelmed with bitter and sweet emotions. Your home holds a unique and special place in your heart because you have made many memories that will forever stay with you and that home. And letting go of so many memories can be a challenge in of itself. So, to help you navigate through the process and relieve some of the burden, we have created a list of steps you can take to make the home selling process easier.

Tips for Selling your Home

Do Your Research

Determine When to Sell

When preparing to sell your home, it is best to first determine if it is a good time to put it on the market. With market conditions always fluctuating, you want to be sure that they are in a good state to get the most benefit out of selling.

Research Comparable Houses and Median Home Prices

To get a better idea of what your home will sell for, research similar homes in your area and determine their value. You want to avoid pricing your house to high or too low and knowing the market value is a great step toward avoiding such a costly mistake.

Compare the Current Value to Amount Owed

Once you have taken the steps to determine what similar homes are selling for and the median sale prices in your area, it is time to see if selling your home will really benefit you. If the timing is not right, the market value of your home may very well be less than the remaining balance you owe. So do your homework, run the math, and avoid selling at a bad time.

So, say you’ve taken these steps and now are ready to in fact put your home on the market. Now what? Let’s take a look at the steps to take from there.

Prepare to Sell Your Home

Take Care of any Necessary Updates and Repairs

When putting your house on the market, the last thing you want to do is have potential homebuyers walk in to see leaky faucets, cracked windows, or other potential issues. So, it is recommended that you repair as many known issues as you can when seriously preparing to sell your home. Having inspections to uncover other potential issues such as mold and infestations can also avoid some major turnoffs for prospective buyers.

Make the Inside and Outside Look Appealing

There are several ways in which potential buyers will see your house such as flyers, websites, and of course in person visits. And you want to be sure that they get a good impression that will leave them wanting to buy.

Keep the outside looking good with a nice, mowed lawn, trimmed hedges, appealing landscaping, and only leave outdoor furniture where necessary. You want to avoid an unkept or cluttered yard, placing the excess lawn furniture in storage.

You will want to do similar with the inside of the home. Leaving some furniture to help sell the space, while putting the rest of the items in storage is recommended. You want to show furniture for scale and appeal, while avoiding the appearance of clutter.

Leaving the interior and exterior of the house partially set up and decorated will help potential buyers to imagine themselves living there.

Get Professional Photos of the Home

Once you have put in all the excellent work of doing repairs and making your house look appealing to buyers, have a professional photographer come out and capture captivating images. Having professional photos of your home will help capture the attention of potential buyers on platforms such as Zillow and increase the likelihood that they schedule a tour.

Now that you have taken steps to prep your house and capture some professional photos, it’s time to get the listings out there and start those open houses. So, let us go over the next steps you can take with your real estate agent.

Get the Realtor Involved

Open Houses and Tours

So, you have gotten your house all prepped, photos taken, and now are ready to start getting prospective buyers lined up. This is the time when you want to get your Real Estate agent involved with listing the property online, booking tours, scheduling open houses. Getting people to come physically look at the house helps give them the chance to really immerse themselves sin the idea of it being their home. All the prep and photos are merely steps toward enticing them to physically have a look, which is much more impactful of an experience than any photo can provide.

Leave the Rest to the Agent and a Loan Officer

Now is the time when you can leave the rest to the Real Estate agent and Loan Officer. The Realtor can now list the home online, share flyers, send out emails, and really push your house out there to the market. By partnering with a Loan Officer, the Realtor can then hand off the prospective buyers to somebody capable of accepting applications and getting the home buying process started.

Many of the Loan Officers here at Big Valley Mortgage have developed strong relationships with trusted Realtors just for this purpose and work together with their real estate partners to match clients to their dream homes.

Ways to Buy a New Home When Selling Another

Buy Before You Sell

If you buy your next home before selling, it can help make the buying process much more relaxed. With less urgency to get moved in, you won’t have to feel as rushed as if you were to buy after selling your current home. You’ll also have a place to settle into before selling your home, avoiding the need to rent a storage unit or be stuck in limbo. It also helps avoid issues if a deal falls through and you don’t get a home as quickly as you’d hoped.

However, there are also some negative aspects to buying your new home before selling your current one. With a more relaxed buying process, comes the potential of a more rushed selling process which can cause you to possibly accept a lower offer on your former home than if you’d sold it first. You could also wind up stuck with your former home for longer than you expected, which can leave you with paying two sets of taxes and possibly even having to rent the house out until it sells. You may also find it harder to put a good-sized down payment on your new home or even get qualified while still stuck with the other house in your possession.

Sell Before You Buy

If you sell your home before buying another, you avoid having to pay on two mortgages at the same time, getting stuck trying to sell longer than you anticipated, and reduce your chances being denied when applying for a new loan. Another benefit of selling your home before purchasing another is that it will provide you with more money to apply to your down payment.

The negative aspects that come with this option are of course that you will need to find a temporary place to stay between homes, will need to move multiple times, may wind up needing to pay for storage, and you could potentially make a poor buying decision due to feeling rushed.

So whichever of these options you go with, be sure to really think it through, weight out your options, and do your homework. Not every situation is the same and you will want to make sure to choose the option that is best for you.

Conclusion

Understanding the methods and strategies of selling a home can lead to better decision-making. Many homeowners make mistakes when they are unfamiliar with the proper steps to follow. By applying the tips above, sellers can navigate the process more smoothly and successfully sell their homes.

For those seeking guidance, Big Valley Mortgage, a trusted mortgage company in Roseville, CA , can connect clients with experienced loan officers and real estate agents who are ready to provide expert support throughout the home-selling journey.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Tips for Choosing a Loan Officer & Mortgage Lender in Roseville, CA

brent.ross@apmortgage.com (Brent Ross) — Tue, 05 Jan 2021 18:40:29 GMT

Here is a useful guide for helping you choose a trusted Loan Officer and the right mortgage lender.

While several parts of the mortgage process are similar across all lenders, specific differences can affect the services you receive. The two most common services Homeowners may be looking for are either a mortgage for purchasing a home or refinancing an existing home loan. However, borrowers may not find the best advice according to their needs if they work with inexperienced or poorly trained Loan Officers.

Important Questions to Ask

When selecting a Loan Officer , it is suggested that you inquire whether they are working as a licensed mortgage Officer. It might be helpful for borrowers to inquire about their NMLS number to look Officers up on the Nationwide Mortgage Licensing System and verify their records. This can also help you find out the number of years of service they have in the industry.

Asking about the average processing time for your type of mortgage is also crucial. Besides that, here is a rundown of the questions you should ask a potential Loan Officer:

Will someone else take over the loan process when it goes to underwriting? Or, will the Loan Officer be the primary contact throughout the process?

What is the best form of contact to stay in touch with the Loan Officer throughout the process?

What is the recommended rate lock duration?

Which steps of the process will occur in person, and which steps will take place online? (Consider closing and appraisals)

Of course, one of the best ways is to ask your family members and friends for a recommendation…they will surely either give you someone who treated them great…or for sure warn you about someone they had a bad experience with!

Important Values

When choosing a reliable Loan Officer, here are the most important values to look for in a trusted Loan Officer and mortgage lender.

Respect

Professional Loan Officers realize the value of time and money. That is why they respect their clients’ needs and help them secure the best mortgage loans without wasting precious time. Your Loan Officer should be sensitive to your needs.

Transparency

Look for a mortgage lending company that guarantees clear, direct, and honest communication. The best Loan Officers and mortgage lenders deliver accurate, relevant, and clear facts to help borrowers make informed decisions.

Scrappy

The Loan Officer you choose should be relentless in their approach to serve all customers. A determined, dedicated, and tenacious Loan Officer seeks the best mortgage solutions. They make sure you qualify for the best loan possible to get your dream house.

Choose the Best Loan Officers in Your Area

Selecting the best mortgage loan is about more than just securing the lowest interest rate. Many times that low rate might come with hidden terms or expensive costs! Ensure that the company you are choosing demonstrates adequate experience working with clients across all loan programs and niches.

If you are looking for a trusted loan officer, Big Valley Mortgage, a leading mortgage company in Roseville, CA , is a one-stop solution for all your mortgage needs.

Established in 1990, BVM is proud to serve its local communities with branches located in Roseville, Fresno, Elk Grove, Stockton, and Sacramento. According to Mortgage Executive Magazine , Big Valley Mortgage and American Pacific Mortgage are ranked within the top 15 largest independent mortgage banks in the U.S.

Get in touch with us to find out more about how to get the best mortgage loan for your needs.

Sources

https://www.investopedia.com/mortgage/mortgage-guide/how-to-choose-best-mortgage/

https://www.forbes.com/advisor/mortgages/how-to-choose-a-mortgage-lender/

https://time.com/nextadvisor/mortgages/how-to-find-the-best-mortgage-lender/

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

The Real Perks of Owning Your Own Home

brent.ross@apmortgage.com (Brent Ross) — Mon, 30 Nov 2020 18:18:24 GMT

Curious about just what benefits of owning a home are out there for homebuyers? Most people know that a home is much more than merely four walls and a roof. Owning a home can be an excellent factor to kindle a wide range of positive emotions and thoughts in you. Homeownership is certainly known as a pillar of the American dream.

Although many people either cannot afford to or simply choose not to pursue this dream, those who purchase real estate usually see major financial benefits to homeownership. Also, for many, owning a new home brings a sense of security. In contrast to others, it is about convenience and comfort. Another benefit of owning a home is that, to some, it is a symbol of accomplishment and status.

However, the importance of the monetary aspect cannot be overlooked because it is usually the most significant financial transaction in the life of an average American. Owning a home vs. renting is a decision that many people grapple with. If you currently live with your family or friends or are renting a property, here are some of the most important benefits of homeownership:

Emotional Security and Stability

When you buy a new house, you provide your family with their own space; a home. At the end of a stressful day at work, along with a tiresome commute, returning to your home brings a sense of comfort and security, which is irreplaceable. Did you know that based upon a Harvard study, owning a home can also result in better mental health via the feeling of accomplishment?

Also, many studies indicate that children benefit considerably from the stability and security of a home. This is manifested in higher test scores and considerably higher rates of high school graduation.

Buying is More Affordable than Renting

Initially, it might be cheaper to rent than buy. You know that a down payment on a home can feel overwhelmingly big. However, take some time to think about investing in your future. In most cities, if you compare the monthly mortgage of a home with a comparable rental property, the cost of homeownership is usually much less. And over time, as you repay the interest portion of the loan, you will start paying more of the principal portion .

It can be argued that a home is an important long-term investment, rather than a short-term rental place where you put your bean bag chair and futon.

Tax Benefits of Owning a Home

It is well documented that you get various tax breaks for owning a home. As a homeowner, you can deduct mortgage interest and various property taxes when you fill out your yearly tax returns. These tax deductions for property taxes as well as mortgage interest can easily save you hundreds of dollars per month in taxes. These tax savings can make owning a new home just as economical, if not cheaper, as renting.

Please ask your CPA or Tax Preparer for more information. They can provide you with actual details.

No Compromise

As you know that rent is an expense, there is a general tendency for renters to reduce expenditure. So, you might end up compromising on several important aspects, like location, amenities, and size. In contrast, when you purchase a house, you will make sure that your chosen property meets all your needs and expectations.

Want to take the first step in seeing what you can qualify for?

Final Thoughts

With so many homeownership benefits, it is sensible to buy your own home. Not only does it offer you stability and security for today and the future, it often makes financial investment sense as well!

If you think that homeownership might be right for you, take the time to speak to one of our Loan Officers about all of the affordable financing options available to you, including some First Time Homebuyer programs. They can help you determine the right program…the price ranges that fit your budget…and can even introduce you to a reliable real estate agent to help you search for the perfect home!

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

FHA Loan Requirements: What You Need to Know

Fri, 30 Oct 2020 17:18:08 GMT

One of the best ways to purchase a house is to pay 100 percent in cash. However, if you are finding it hard to save up sufficient cash, you may be better off getting a home loan that is backed by the FHA (Federal Housing Association).

What is an FHA Loan?

An FHA home loan is a government-backed mortgage. They are provided by FHA Approved lenders, but FHA insures the mortgage. Back in 1934, congress created FHA home loans to help people qualify for home loans…they are uniquely suitable for many borrowers, specifically including low-to-moderate-income borrowers. Compared to most conventional options, these loans require lower credit scores and a low minimum investment or down payment. FHA home loans are also popular with many first-time homebuyers because of their guidelines and most Down Payment Assistant programs are built on FHA loan programs!

2020 FHA Loan Requirements

Keep in mind that your lender will still thoroughly evaluate your various qualifications, such as debt-to-income ratio, work history, and credit. However, it is worth noting that an FHA loan is usually an alternative for homebuyers who have a difficult time getting approved for a traditional loan. Although each FHA-approved lender may have their unique restrictions and conditions, the main requirements for an FHA home loan are not as stringent as those for conventional loans. For instance, if someone doesn’t have a credit score because they are young or a “limited credit user”, the lender may also consider your other payment-history documents and records, like rent and utility payments.

Some basic requirements for an FHA loan are:

If your credit score is below 600 then you will need between a 3.5 and 10% down payment
Higher Debt to Income allowances
There is an upfront mortgage insurance premium (MIP) cost and then a monthly mortgage insurance cost
The waiting period after a bankruptcy is two years
You’ve not had a foreclosure in the past three years
FHA will allow 100% of your Down Payment and Closing Costs to be in the form of a gift

Remember, when shopping, not all lenders are FHA Approved. Don’t forget to ask!

FHA Loan Limits for 2020

Each year, FHA looks at several factors, such as fluctuations of the different housing markets and the cost of living, and adjusts the maximum loan amounts in each county. For 2020, the new floor limit for an FHA home loan in most parts of the country is $331,760. This means that every county can go at least that high. And for high-cost areas, the ceiling in some counties can now go as high as $765,600, up from $726,525 one year ago. Note that these limits are called “floors” and “ceilings” that FHA will insure.

Final Thoughts

With current mortgage rates in the US hovering at record lows, FHA loan rates are also generally competitive. To find out if an FHA is a right choice for you, and to get Pre-Approved, please reach out to Big Valley Mortgage and one of our Loan Officers can help you out!

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

How to Get Pre-approved for a Home Loan

brent.ross@apmortgage.com (Brent Ross) — Tue, 22 Sep 2020 17:03:23 GMT

Getting pre-approved for a home is an exciting moment! You are getting ready to embark on a wonderful journey toward homeownership. But before you take the initial steps toward the home buying process, you must understand how to properly prepare. So, let’s take a look at how to properly get pre-approved for a home loan.

Before You Begin

Before you begin taking the initial steps towards the pre-approval process, having some foresight as to which financial factors your lender will be assessing you on (Capacity, Capital, Collateral, and Credit) can better prepare you for securing the loan, rate, and home that you are in the market for.

Capacity – This looks at the stability of your income and then compares your qualifying income to your debts. The goal is to keep your Debt-To-Income Ratios within reasonable ranges. Each program has different guideline allowances.
Capital – You must have enough assets to cover the Down Payment requirement as well as the closing costs associated with your transaction. It is helpful, and considered a “compensating factor”, to have additional funds for reserves. You will be asked to document where your funds are and that they are yours to utilize.
Collateral – The home you are buying will be used as the security for the loan. The value and condition of the property will be appraised and is part of the qualifications for the loan.
Credit – Lenders are very careful to review your credit profile along with your credit scores. Derogatory credit can affect your qualifications by causing your interest rate to be increased and even cause your loan application to be denied. On the other hand, higher credit scores can help to lower the interest rate offered and improve your chances of approval.

* Collectively referred to as the Four C’s of Underwriting, these aspects that your financial history is built on are also institutionally recognized standards that will impact the dollar amount and rate that you will qualify to be approved for.

The Difference Between Pre-qualifying and

Pre-approval

Mortgage Pre-qualification

Many Loan Officers will reach out to a potential buyer and ask for financial information…This pre-qualification process can be done in person, online, or by phone and is where you layout information such as your credit, debt, income, and your assets. By looking at your overall financial situation, the lender can estimate how much you might be able to borrow towards buying a home. They will then give the potential buyer an idea of what they might qualify for and even write them a “PreQual Letter”. But this is not enough today to just estimate what they might qualify for!

What Does Pre-Approved for a Home Loan Mean?

With the limited inventory of homes available today in most markets, it is more important than ever to go in strong with any offer to purchase. A big part of showing strength is ensuring the Seller that you have all your financing in order. At Big Valley Mortgage, we do that by actually taking the time to have you fill out a mortgage application, gather your financial documents, and have an underwriter review your file. This allows you to make stronger offers knowing you have already been approved and can close much quicker! Your pre-approval of your finances serves as proof to sellers that you are a serious buyer… over other buyers who might also have made a bid on the same home.

Skip Pre-qualification and Jump Right to Pre-approval with Big Valley Mortgage

When you are ready for the first steps towards purchasing a home, submitting your loan application with Big Valley Mortgage means that you can forgo the pre-qualifying process and instead begin collaborating with your Loan Officer on reviewing your financial history to serve as proof of your capacity to pay off your future mortgage. This collaboration effort takes the place of the pre-qualifying process because our Loan Officers work with you in gearing you up for a pre-approval. Going over your – Capacity, Capital, Collateral, and Credit- with you to ensure your success in having secured the financing of your loan and future home.

Ready to take the first step toward pre-approval?

Preparing the Required Documents for Pre-approval

To be pre-approved for a home loan, you will need to provide specific documentation that will allow your lender to ascertain your ability to sustain payment of your mortgage over time.

Your employment history and income will need to be verified. An annual W2, your federal and state tax returns for the last two years, and your two most recent pay stubs will be required in determining your income.

Be prepared for additional financial aspects built on a two-year time frame to be assessed throughout the pre-approval process. Lenders typically look for a minimum of a two-year history of a steady income in addition to reviewing your tax returns.

Now that your verification of income and employment documents have been compiled, you will then also be required to gather documentation that substantiates your assets. You will need to provide the most recent 60 days of bank statements from all financial accounts that will be utilized for the down payment and closing costs associated with your transaction.

In evaluating your assets also comes a review of your debts. A credit report will be run to help determine not just your credit scores, but the debts that you owe. This review can include monthly debt payments such as student and or car loans, a preexisting mortgage, and credit cards. If you do however have no credit history then providing utility bill payments to establish your capacity to make good on financial obligations can be sufficient with some loan programs.

All this documentation will be used to help determine the loan amount that you qualify for and the interest rate to be offered.

View our article on documents needed for the pre-approval process.

Conclusion

Getting a home loan can be easy! Big Valley’s approach to navigating you through the approval process aims to streamline the assessment of your Capacity, Capital, Collateral, and Credit and help secure the best interest rate possible.

If you are looking to get pre-approved and to speak with a loan officer, don’t hesitate to submit a quote request and get the conversation started!

References:

http://www.freddiemac.com/blog/homeownership/20171204_4Cs_qualifying_mortgage.page

http://www.freddiemac.com/blog/homeownership/20191218_making_a_homebuying_list.page?

BVM Resources:

https://www.bigvalleymortgage.com/how-many-credit-checks-before-closing-on-a-home/

https://www.hsh.com/finance/mortgage/preapproval-letter.html

https://www.expertmortgageassistance.com/mortgage-underwriting/

https://www.expertmortgageassistance.com/insights/articles/the-4-cs-of-mortgage-underwriting/

https://www.nerdwallet.com/blog/mortgages/pre-qualification-vs-preapproval-whats-difference/

Author: Amber Lua, an employee with Big Valley Mortgage.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

How Can You Benefit From Home Loans Reverse Mortgage?

Tue, 01 Sep 2020 17:03:10 GMT

While most of us know about typical mortgages, what about reverse mortgages? Reverse mortgage loan options are available to individuals later in life, giving them an opportunity to save their limited income or retirement funds.

What Is A Reverse Mortgage?

Note that reverse mortgages are available to people who are at least 62 years old. A reverse mortgage is an incredibly powerful tool and can help you live a secure and stable life in retirement. We can define a reverse mortgage as a mortgage loan, where your house is the security. This kind of mortgage is convenient because there are no payments due on a monthly basis, and it allows you to easily tap into your home equity!

Although the main intent is to allow homeowners to use their wealth for paying their living expenses or healthcare costs, there are no regulations on how to use these funds.

How Does A Reverse Mortgage Work?

A reverse mortgage allows you to spend your home’s equity while you live in your home. You can repay the money when you move out, usually from the sale proceeds of your home. According to the National Reverse Mortgage Lenders Association, in 2019, over 30,000 Americans borrowed money against their homes through reverse mortgages.

Unlike a standard mortgage, in which you have to pay the lender or bank a set amount each month until you pay off the loan, the main feature of a reverse mortgage is that there are no payments due each month, and it is possible to structure the loan where the bank (or non-banking lender) makes payments to the homeowner.

Each senior tends to have different needs. As a result, there are many disbursement options that can cover these different needs. This includes the option to receive funds in a partial or full sum, an equity line of credit, or monthly payments.

A reverse mortgage can increase your income without increasing your monthly payments, allowing you to stay in your home. The savings from eliminating the mortgage payment along with the potential monthly payment from the lender can create a nice useable income increase for the borrower.

A reverse mortgage allows the homeowner to get a monthly payment for as long as the owner lives in the house. The loan becomes due after the owner dies or moves out of their house.

Reverse Mortgage Eligibility

All homeowners have to be 62 years old or more
At least one homeowner has to live in the home most of the year

Pros of a Reverse Mortgage

One of the biggest selling points for a reverse mortgage solution is that you do not have to repay the loan as long as you live in the home. Also, note that a reverse mortgage acts as an excellent “safety net” by drawing on your home equity, instead of tapping expensive sources of funding, such as credit cards.

And the money you receive every month from your reverse mortgage does not fall under income. Hence, you do not need to pay income tax on it. So, a reverse mortgage is only a loan. It is not an income qualifier.

Cons

When you close on a traditional mortgage, you pay a closing fee. Similarly, you will need to pay closing costs and several other fees to receive a reverse mortgage loan. Sometimes, these fees and charges may offset the benefits that you get. Also, misconceptions about a reverse mortgage can cause homeowners to avoid considering these loans. For example, many seniors assume that the lender takes title to their home, which is not true.

Final Thoughts

The lender will check your credit history before issuing a reverse mortgage. They will also verify your monthly income and financial obligations. Before making any decisions on a reverse mortgage, it is prudent to speak with a mortgage expert who knows the ins and outs of reverse mortgages. For more information, reach out to Big Valley Mortgage, a trusted mortgage company in Roseville, CA , or check out any of the references below.

References

https://www.nrmlaonline.org/annual-hecm-endorsement-chart
https://www.consumerfinance.gov/ask-cfpb/what-is-a-reverse-mortgage-en-224/
https://www.investopedia.com/mortgage/reverse-mortgage/
https://www.bankrate.com/mortgages/reverse-mortgage-guide/

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

7 Simple Ways to Promote Healthy Eating at Home

brent.ross@apmortgage.com (Brent Ross) — Tue, 14 Apr 2020 17:02:53 GMT

We are all faced with many health tips to help lose weight or live a healthy lifestyle. From new challenging exercise programs to the new HOT diets that everyone seems to try out, we have no shortage of information. But have you ever stopped to think about the way you have your house set up? While diet can help drop pounds and exercise helps promote better health, having your home improperly setup could be stunting your progress. So let’s have a look at some ways in which you can avoid some dietary disasters and take your house to a new level.

Paint and Decorate Your Kitchen in the Right Colors

It may come as a shock that the colors you choose for the paint and decorations in your kitchen can affect your eating habits. To make it simple, let’s look at how certain colors affect people.

Red: Can be an Appetite Stimulator

This color stimulates hunger, which means that it may not be the best if it proves a weakness for you. But if you have kids who are picky eaters, or tend to find it to be a warm inviting color, it can still work for you. Just be mindful of how it affects you and those in the household if going with this color. An entirely red kitchen is likely not the way to go, but simple red highlights can add an inviting and hunger-inducing touch.

Other colors that can increase appetite are white and green. But green can have an interesting effect in terms of the type of appetite.

Green: Promotes a Healthy Appetite

The color green tends to have a calming effect on people and helps curb their appetite. Some great ways to incorporate green into your kitchen are to paint the walls a nice natural leafy green color or to place various green plants (real or artificial) around the kitchen counters and on window ledges.

Blue: Suppresses Appetite

Now that we’ve covered the color red, which is good for people looking to up their food intake, and green, which helps promote a healthy appetite, let’s look at a color that can help suppress it. The color blue tends to help the human brain release chemicals that soothe our systems. Because our diet does not contain much that has the color blue, this color tends not to make us think of eating. You can either paint your kitchen and dining areas in a calming blue or simply choose dishes, furniture, and decorations that add blue accents.

Great colors that can also suppress appetite are brown, grey, and black.

Hide Junk Food to Avoid Cravings and Snacking

If you find you tend to buy a lot of junk food and that it’s more than you should, consider also cutting back on how much you buy. Making smart choices extends to finances too; for instance, finding the best mortgage lender in Roseville, CA , requires careful research if you're looking to buy property there.

Separate and Organize Your Foods

Just like organizing your food choices, navigating financial options, such as comparing mortgage companies in Roseville , requires clear planning. To even more thoroughly store your produce, you can wash & chop your fruit and store it in glass Tupperware. You can also scrub and bag up veggies as easy-to-grab snacks.

While changing the colors in your kitchen and dining area are great ways to help control your appetite, it can still be easy to fall into bad snacking habits if you tend to leave junk food in plain sight.

A simple fix for this is to hide the junk food in hard to reach and tucked away places. Have chips, candy, crackers, and other not so great options sitting out? Put them on the top of your cabinet behind closed doors. When you keep snacks out where you can see them, the mere sight of them can make you pick them up and start chowing down. This goes for candy out on the coffee table in a jar, candy in your office, and other areas of the house too. Keep it tucked away and hidden, you’ll forget about it and you’ll find that the number of times you grab it to eat can drastically decrease.

If you find you tend to buy a lot of junk food and that it’s more than you should, consider also cutting back on how much you buy.

Make Healthy Foods More Visible and Accessible

Now that you’ve gotten your not so healthy options out of sight, it’s time to start making some healthy ones readily available. Rather than leaving chips, crackers, candy, and other processed snacks out, put out fresh produce, nuts, tea, coffee, and other healthy options where they are readily available. You’ll find yourself grabbing a banana or an apple over candy in no time.

What’s great about this is that you may find yourself buying more produce than you used to as your consumption goes up. If you do this alongside reducing the amount of junk food you buy, you are on a great path to success.

Make Healthy Supplements and Vitamins Accessible

If you are at a point where you are taking multivitamins or other supplements to support good overall health, there’s no sense placing them up in the cupboard if it makes you forget to take them. Does this happen to you? Try taking your supplements and placing them on the kitchen counter next to your coffee maker or somewhere else that you tend to be at every day. Seeing them there will remind you to take them. Whereas keeping them hidden can have the same effect as hiding junk food, which you do not want to happen in this case.

There are also containers you can get to divide your supplements up for each day of the week if that helps you as well. These can be found at stores like Target, Walmart, CVS, to name a few.

Fill and Organize Your Fridge with Nutrition in Mind

Just as you have done with your counters and cabinets, it’s time to make sure you are prioritizing nutrition and limiting the unhealthy options. If you find that your fridge requires a nutrition makeover, try these simple steps:

Empty and Clean Your Fridge

Take everything out of the fridge and give it a nice deep cleaning. This will help get rid of expired foods, junk food you’d rather not keep, and to eliminate stains and bacteria left behind from old food.

Map Out Your Fridge Space

Once the fridge is all empty and cleaned out, take a step back and map out how you can store your food and drinks. If you find that a shelf could stand to be raised to make more room for certain items, move it. Set your fridge up to have the appropriate space to store your foods.

Separate and Organize Your Foods

When putting items into the fridge, organize them in such a way that the healthy ones are easy to distinguish and access, while the not so healthy options are more tucked away.

Healthy items to organize in the fridge include, healthy lean meats, produce, low-fat dairy, water, and eggs. Whether they are foods you eat or snacks you kids eat such as string cheese and yogurt, you will want to place these items more at eye level and upfront. Condiments and other not so healthy options can go stored in the fridge door and other areas that are more out of sight such as lower shelves.

To even more thoroughly store your produce, you can wash & chop your fruit; storing it in glass Tupperware. You can also scrub and bag up veggies as easy to grab snacks.

Plan Snacks and Meals in Advance with Nutrition in Mind

A great way to balance out what you keep in your kitchen cabinets, on the counter, in your fridge, and around the house is to plan out your meals and snacks in advance. One way to help support this option is to keep a calendar on your fridge where you can write out meals and snacks for the week.

By writing down what you plan to have for the week, you clear out the clutter in your mind and make it clear what you need to buy. Writing it down also helps you to realize where you could stand to swap out unhealthy options for healthier ones, fit in more fruits and vegetables, and can serve as a valuable tool.

Create Shopping Lists Based on Your Meal Plan

Once you’ve written up a meal plan, write up a shopping list that contains all of the foods needed. A great way to make this easy is to keep a magnetic note pad on the fridge next to the meal calendar. Before you go shopping, look through your fridge and cabinets, noting down general items you need to stock up on as well as foods needed for meals and snacks.

By carrying around a shopping list with healthy options and foods needed for specific meals, you avoid forgetting things, having extra food that goes bad, and buying unnecessary junk food. You’ve walked into the store with a written out plan, which will help keep you on track!

Hopefully, these seven tips serve you well!

References:

https://www.kuali.com/kitchen-inspirations/colours-affect-appetite/

https://www.rallyhealth.com/food/a-nutritionists-tips-to-organize-your-fridge-for-healthy-eating

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

7 Work-from-Home Tips from Big Valley Mortgage

Wed, 01 Apr 2020 22:03:54 GMT

In a technologically advanced world, many men and women now can work without leaving their homes. While this may be practical and convenient, challenges can arise when working from such an environment.

The Challenges of Working from Home

Some of the challenges that you may face when working remotely from home include, but are not limited to:

Distractions from people, pets, and home entertainment
Relaxed environment with a bed and couch immediately available
Possibility of loneliness, cabin fever, and even depression
Sub-par setup that slows productivity
Difficulty keeping a schedule and managing time
Losing track of tasks and deadlines
Lack of contact and communication with coworkers or business partners

To help avoid these and other issues, here are some tips on how you can prevent them.

Maintain a Set Routine and Working Hours

When working from home, you must set your working hours of the day and maintain a structure. If you work for an employer with regular working hours such as 8:30 AM to 5:00 PM, continue to work those same hours from home. If you are an entrepreneur and work from home for one or more clients, it is still good to maintain a structure to help balance out your day. Having these sort of set hours also helps ensure that you are available to those who need you during regular business hours and that they know not to bother at inappropriate times.

It is also helpful to implement a routine where you brush your teeth, get dressed, have your coffee, and any other steps you would take on a typical workday morning to help get yourself off to a good start. While these steps may not seem to be as important as your work-related tasks, they do in fact play an important role psychologically in the overall success of your day.

Throughout the day, you should be sure to take breaks and a lunch period just as you would when working for an employer on location. Being sure to take your breaks helps ensure that you keep track of the time, pause to eat and keep well-nourished, and avoid overloading yourself and getting burned out.

Carefully Manage Your Time and Tasks

Work involves many tasks and the last thing you want to do is be stuck kicking yourself at the end of the day for forgetting something important. A great solution to this issue is to create a structure based on time of day, priority level, and workflows.

There are various free online tools available where you can create and track tasks as you work through them if that helps. Or you can simply have a daily task sheet to help keep you from falling off the course. For some, the daily tasks can follow a routine that optimizes performance. For others, it may be better to simply have a paper where you can write down action items to check off throughout the day and with room for change as new priorities arise. If you can’t get to an item that day, you can carry it over into the next. But having it in writing and in front of you helps sort your thoughts onto a paper and avoid missing items. Marking deadline dates on your calendar can help to avoid missing them, making you more efficient and dependable to your colleagues.

Don’t forget, it is important to take time for yourself; taking a lunch break and occasional breaks to walk around. While it is important that you keep on top of your work-related tasks, your health is also important. Sitting for prolonged periods can have negative effects on your health. Which brings us to our next item. Managing long-term goals, like navigating first time home buyer loans , also requires careful planning and attention to detail.

Set Rules and Boundaries with People

If you have a partner, spouse, children, or roommate, it can be easy to get distracted by their conversations or requests. To help avoid this being an issue, it is recommended that you set rules and boundaries. If you need to stay focused on work during certain hours of the day, make sure they are aware and that they know to only pull your attention for specific reasons and through certain contact methods.

Those you live with must understand that while you are at home, you are still working just as though you were in an office building. Occasional leniency can, of course, be okay, but you want to avoid things being too casual and risking a lack of productivity.

You can also set simple contact methods with them as you would at work in case they want to talk with you. If they have a question they need to have answered, have them learn to make texting or messaging you with the question common practice for typical topics, while of course making in-person acceptable for emergencies or urgent matters.

Setup Your Environment for Success

Working in the wrong environment can cause issues with both productivity and your health. Make sure to pay careful attention to how you set things up for your home office. You will want to make sure to limit distractions, such as television, unless they can be on without disrupting your flow of work. You will also want to pay attention to your health, making sure that your chair and computer are set up in an ergonomically friendly way.

Other aspects of your environment to consider are those that are not so much physical. Light, smell, and other factors can have a negative impact just like your chair and posture. Be mindful of the lighting, avoiding eye strain or fatigue. And avoid smells that may make you frequently hungry for snacks.

You will also want to make sure that your equipment is working properly. Be sure that you have a reliable internet connection, your phone on hand, and that there are no technological barriers, such as intermittent internet connection or lack of access to files that can slow you down. The last thing you want to happen is to fall behind or miss an important deadline due to poor preparation. Just as you prepare your workspace, financial preparation, like selecting the right mortgage company in Roseville, CA , is crucial for major life steps.

Follow Healthy Habits

When working from home, even if you periodically get up to move around, you must look at your overall diet and activity level. Some healthy habits to follow include drinking plenty of water, eating a balanced diet, going for walks outside, and higher intensity exercise such as cardio. If you don’t have access to a fitness center, simply going outside for a walk or jog, doing some jumping jacks at home, or following an exercise video online can help get you moving. The importance is that you avoid an overly sedentary lifestyle, which can negatively affect your health. There are many valuable sources online that you can find to help guide you to better health habits that do not require a gym membership, but that can have tremendous benefits to your overall health.

Maintain Regular Communication with Others

For both health and work-related reasons, maintaining good communication with others is key to your success when working from home. Humans are very social beings who thrive on social connections. That is why we collaborate so well together.

When working from home, maintain communication with both personal and business connections in the ways that most thoroughly boost your morale and productivity. Have a weekly call with your coworkers? You might consider a video chat where you can see each other face to face.

Have people at home with you? Be sure to take some time to interact with them and lighten the mood. In-person interactions can have a much bigger impact on your mood and health than you realize. Don’t take them for granted.

Avoid Things That Increase Stress

Now that we’ve discussed how social connection is beneficial to your health, let’s look at the things to avoid that can harm your mood and overall health. This can come in the form of people, tasks, news, social media, and more.

If you find that watching the news or talking with a particular friend stresses you out and reduces your productivity, simply reduce or avoid those activities at the times that they can most affect your productivity. Do you find yourself feeling down after your scroll through your social media feed? Do a social media detox; avoiding those triggers that send your mind into a downward spiral.

By reducing these things and increasing the good habits such as the ones described above, you not only increase the likelihood that you will have a productive day, but the benefits can carry over into your personal life as well!

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

5 Best Mortgage Options for Investment Properties

Fri, 10 May 2019 19:08:47 GMT

Investing in real estate isn’t always a highway to instant riches. But it just might be a lucky ticket to securing a stable financial future for you and your whole family. As with any investment, you will need to be smart about it. You will need to determine the mortgage that works for you and your needs.

In this article by Advanced Asset Management, Inc. , we’ll take a look at five mortgage options that you could use for investment properties.

1. FHA Mortgages

People doubt whether FHA loans are suitable for investment properties. In reality, FHA loans make for an excellent option for any investors. One of its appeals is its tolerance for lower credit scores. The borrower’s credit score needs to be 500 or higher. When compared to the conventional or VA options, it’s over 100 points lower.

You are able to buy multi-unit homes with just a 3.5% down payment. Using an FHA mortgage works with properties that range from 2 – 4 units. The other units can be rented out if the owner lives in one of the units.

And even home buyers recently experiencing bankruptcy or short sale because of losing employment or getting sick are allowed to use the FHA mortgage program. Your upfront investment will be lowered if you, for example, buy a 3-unit home and live in one of the units.

2. Investment Property Loans

It’s definitely more difficult to get an investment property loan compared to the mortgage for your house. In the short run, they’ll prove to be more expensive as well. The particular requirements for this type of loan will really depend on the mortgage lender in Roseville, CA

Most of them want very comprehensive documentation such as pay stubs and tax returns. The reason for that is the expectation that you have been working for the same employer for at least two years. This requirement doesn’t usually make things easy for freelancers or retirees.

Also, the required down payment may be at least 20%. That said, not all mortgage lenders are the same. Some of them won’t go much into the details of your life as an employee. They want to see the actual potential of the investment that you’re making. If it seems like a solid case for them, they might easily have your back.

3. Hard Money Lenders

Hard money loans are also known as bridge loans. Real estate investors often use them to finance a new project. These home loans in Roseville, CA are always issued by private lenders instead of established financial sector institutions.

In this case, your credit history isn’t important. The mortgage companies in Roseville, CA focus on the property’s value, especially the value after the development has been finalized. Compared to conventional loans, hard money loans might have much higher costs for the investor.

Also, the repayment period will be significantly shorter. On the other hand, the property itself acts as collateral and the terms are usually quite flexible because the mortgage lenders are private and not actual banks. And these home loans can be quite convenient because you could be able to get funding in less than a month.

4. HELOCs

First of all, what does HELOC exactly stand for? It’s the Home Equity Line of Credit. This solution has been compared to a credit card. You are able to withdraw an amount up to your limit regardless of the time. Money is always there. Your monthly payments depend on the variable rates and your loan balance.

Each HELOC solution has two periods. The draw period means that you can use the credit as much as you want. The payments might only cover their interests. After the first period ends, which is usually after 8 or 10 years, the repayment phase starts.

You can’t draw money any longer and must start paying back all the credit you used so far. Usually, HELOCs are seen as an alternative to hard money loans. Depending on your circumstances, the long-term costs could be a bit lower.

But there’s an important risk when using HELOCs that you must be aware of. Defaulting on the home loan means your own house will be foreclosed instead of the investment property. In most cases, people secure the line of credit with their primary residence should they not already own the investment property.

5. VA Mortgages

VA mortgages for investment properties work the same way for you as using the mortgage for your own residence. The qualification is strictly based on your credit score and income. One of the best benefits of using a VA mortgage is there is no down payment.

Provided they meet all other requirements from the VA, the VA loan can be used to purchase multifamily properties with up to four units. These homes are typically separated units with each functioning as a separate apartment. The veteran owner has to occupy one of the properties to qualify for the loan.

Also, you are able to use rental income in order to cover the mortgage payments. That said, getting credit for the rental income means additional verification procedures.

Part of the requirement is that you need to have cash reserves for at least six months of mortgage payments. Additionally, you’ll be required to have documentation proving you have experience in rental property management and maintenance.

Knowing all these options available, the question now is what then is the most advantageous mortgage for your investment properties? It depends on your circumstances. FHA loans and VA mortgages are great alternatives to a conventional mortgage.

Investment property loans may be more difficult to get but might work well for some investors. Hard money loans prove to be irreplaceable for people that don’t have the best credit score while these home loans do come with heftier costs.

HELOCs, simply put, are similar to credit cards. You’ll get a steady line of credit, but the risk lies in securing the money with your primary residence. Please consult with a qualified financial adviser before making any final decisions about which option you think will work for you.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

10 Small Bathroom Tips from Big Valley Mortgage

Tue, 04 Dec 2018 20:08:28 GMT

Whether it’s your powder room or your apartment bathroom that’s cramping your style, here are a few tips for making any small bathroom seem bigger — no wall demolition required.

10 Small Bathroom Remedies

Just a few changes to your small bathroom can make dramatic differences in how open it feels. Once you’ve tried these tips and tricks in the bathroom, apply them throughout your home! It’s all about creating the illusion of space. And when you're ready to finance a home purchase or refinance your current property, seeking guidance on home loans in Roseville, CA , from a reliable mortgage lender is a crucial step. Consider connecting with Big Valley Mortgage, a reputable mortgage company in Roseville, CA . They’re known for helping homeowners make the most of their space—and their budget.

Small bathrooms aren’t the easiest spaces to work with. They’re usually cramped and crowded, with limited natural light and awkward layouts.

1. Brighten the room

Bring in as much light as possible. Light, bright rooms always feel more spacious than dark and drab ones.

Wall color. Paint the walls and ceiling the same light color to make the bathroom feel double its size. Multiple colors chop the room into different compartments, making it seem smaller.

Windows. If you have a window, use sheer window coverings to maximize the natural light.

Lighting. Install additional flush-mount wall or ceiling light fixtures to increase the light in the room.

2. Add mirrors

Install larger — and more — mirrors than you typically would in a bathroom. The reflected light will open your small space into one that feels more spacious.

3. Streamline storage

Keep all storage as flush with the walls as possible, because anything that sticks out will chop up the space and close it in. Install recessed shelving and medicine cabinets instead.

4. Eliminate clutter

Nothing crowds a space faster than clutter. A good rule of thumb: If you don’t need it there, store it elsewhere. Pare what you keep in the bathroom down to the bare necessities.

5. Raise the bar

Raise your shower curtain bar all the way to the ceiling — it’ll draw your eyes up and make the ceiling seem taller, creating the illusion of a larger space.

The same goes for any window treatments. Raising sheer curtain panels to the ceiling also creates the illusion of a larger window, making the small bathroom seem larger.

6. Hide the bathmat

Having a bathmat on the floor all the time can make your bathroom feel smaller. Put your bathmats away when you’re not using them to expose the flooring and make the space appear larger.

7. Install a sliding door

Swinging doors can take up almost half the room, depending on how small the space is. A sliding barn door or a pocket door won’t encroach on your bathroom’s already limited real estate.

8. Think pedestal sink

The added bulk of a full vanity takes up valuable space, so try a pedestal sink instead. You may not have a place for soaps or towels on the vanity, but there are plenty of wall-mounted solutions perfect for bathroom accessories.

9. Choose light-colored flooring

Even if your walls and ceiling are light and bright, a dark floor will negate their effect and close the space in. Keep the flooring light to create a space with a bright and open flow.

10. Go frameless, clear and cohesive in the shower

Clear glass shower doors make the room appear larger, while frosted glass breaks up the space and makes it seem smaller. The same goes for a frame around the glass. A frame can make the area seem choppy rather than smooth and open.

Additionally, install the same shower tile from floor to ceiling. The seamless look from top to bottom adds cohesion and openness.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Small bathrooms aren’t the easiest spaces to work with. They’re usually cramped and crowded, with limited natural light and awkward layouts.

Top Fireplace Tips from a Mortgage Company in Roseville, CA

Fri, 16 Nov 2018 20:08:18 GMT

Fireplaces are one of the most sought-after home features, a factor potential buyers and a mortgage lender in Roseville, CA , often appreciate when evaluating properties. But using one can be intimidating, and you’ve probably got questions. Here’s a quick guide to get you and your fire started this fall.

How do I use a wood-burning fireplace?

If a caveman can start a fire, so can you.

1. Get your chimney inspected

Safety is your first priority! Just as a thorough home inspection is vital when working with a mortgage company in Roseville, CA , to secure home loans, regular fireplace inspections are crucial for safety. Have your fireplace and chimney inspected by a licensed professional. This is something you should do every year, before the first fire of the season.

Gas fireplaces are more efficient, and the newest models are realistic enough to make you forget that you don’t own any firewood. Switching to a gas insert is expensive, though, especially if you have to make changes to your chimney. Funding significant home upgrades like this might be something homeowners discuss with their mortgage lender, potentially finding refinancing or specific home loans in Roseville .

Proper maintenance and safe use allow you to fully enjoy desirable home features like a fireplace. If you are buying a home with such features or considering financing for upgrades, partnering with the right mortgage company in Roseville, CA , ensures you have the support and resources you need.

2. Prepare the fireplace

Clean out any old ashes with a broom (make sure they’re cool, of course). Check that the damper is open and working properly.

3. Gather and prep your wood

Use seasoned hardwood that has been split and dried for at least six months — preferably for a year. Seasoned hardwood logs should be dark and cracked at the ends, and they should make a hollow sound when knocked together.

To construct a long-lasting fire, place a rolled-up ball of newspaper beneath the grates. Then lay pieces of narrow, finely split wood in a crisscross pattern on the grates.

Finish the stack by securely resting one to three dry logs over the kindling.

4. Prime the flue

This step heats the cold air inside the flue so you don’t get a backup of smoke. Before you light the fire, light a tightly rolled-up sheet of newspaper, and hold it toward the open damper. Keep it there for a minute or two until you see the smoke going up the flue.

5. Light it up!

Now you’re ready to light your fire and enjoy.

If the fire starts to go out, gently fan the flames with folded newspaper or use a poker to get the air flowing again. Add logs to the fire with tongs to provide more fuel.

When the fire has gone out for the night, close the metal or glass doors before you go to bed.

Are fireplaces efficient?

It depends. Wood-burning fireplaces, for all their old-fashioned charm, are a wildly wasteful way to heat a house. Since heat rises upward, most of it escapes through the chimney, even when the fire has gone out for the night.

Fireplaces located against an outside wall lose even more heat, since much of it is lost to the cold outdoor air.

Solution? Only use your wood-burning fireplace for special occasions. If you don’t plan on using your fireplace often, purchase an inflatable plug to add insulation.

If aesthetics are all that matter, use your fireplace to display lit candles.

Are fireplaces safe?

Fire is the very definition of unsafe, but that doesn’t mean you can’t safely enjoy your fireplace. You just have to maintain it and practice common sense:

Keep flammable materials and objects away from the fireplace, and store firewood well away from the house.
To keep embers from flying out and igniting your unread stack of magazines, use a mesh or metal screen when the fire is lit.
Before lighting the first fire of the season, inspect your extinguishers, test your smoke detectors and review your family’s evacuation routes.

Continue to test your smoke and carbon monoxide detectors monthly.

The glass doors, mesh screen and tools can be dangerously hot. If you have children, use a free-standing barrier to prevent burns.

Wood-burning fireplaces produce smoke that can irritate or even damage your lungs, even with a properly functioning chimney. To keep smoke from filling your house, ensure that the damper is open, your home is ventilated, and the chimney has been inspected and cleared of obstructions.

Carbon monoxide is produced by both gas and wood-burning fireplaces, and it’s especially dangerous because it’s invisible, silent and odorless. Use carbon monoxide detectors and inspect them regularly.

Why does my gas fireplace smell?

What you smell is an additive that’s been included in the propane to help you detect gas leaks.

Vent-free gas fireplaces typically come with an oxygen depletion sensor that will shut off the flame if too much carbon monoxide is detected, and vented fireplaces pull fumes away from the house.

These safety measures aren’t foolproof, however, so ensure that you have carbon monoxide detectors installed, and inspect them monthly by pressing the “Test” button.

How often should I clean my chimney?

A buildup of soot and creosote is more than unsightly: It can reduce airflow, cause smoke to back up and even create a fire risk.

To avoid a chimney fire, have your fireplace and chimney inspected annually by a licensed professional. They will likely recommend a cleaning when the layer of residue is about 1/8 of an inch thick.

To clean inside the fireplace, put on a dust mask, sweep out the ashes, and scrub the surfaces with a brush and dishwashing liquid.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Your Homeownership Journey in 4 Simple Phases

Thu, 01 Nov 2018 19:08:09 GMT

You may live in your home for two years, or you may hunker down for two decades. But no matter how long you call it yours, you’ll likely experience these four key stages of homeownership — from the day you get your keys to the day you hand them off to your home’s new owner.

Read on to learn more about what to expect from each phase.

Phase 1: Starting out

The “sold” sign is posted, your belongings are packed, and the day finally arrives — you get the keys to your new home. You open the front door, and possibilities abound. How will you decorate? Where will that new couch go? Which rooms will the kids choose?

This first phase is all about unpacking, settling in, and getting to know your new home. If you’ve upsized from a smaller home, you may be tempted to jump in and start filling all that extra space.

And while you may be eager to make your mark on your new home’s interior (or exterior), Diana Bohn, a Seattle-based agent with Windermere Real Estate, warns against making extensive changes to a home right after moving in.

“It’s always good to be in your home for a year or so before knocking down any walls,” she explains. “Get your furniture in there, unpack, and see how the home lives. It’s hard to know how the space is going to feel until you’ve been there for a while. Go through all the seasons at least once.”

Phase 2: Settling in

It may take you a few months to move into the second phase — or even a few years (we won’t judge if you still have packed boxes gathering dust after a year or two). But this phase is when your house becomes a home, and you start enjoying your everyday life in the space.

You’ve figured out where all your belongings should go, you’ve done the bulk of your decorating, and you’re getting to know your neighbors and a few local hangouts. You’ve likely celebrated the holidays in your home a time or two, welcomed out-of-town guests, and gotten to know (and love?) your home’s unique quirks.

Looking to purchase or refinance a home?

Phase 3: Fixing up

If the housing market continues its current upward trend, it’s likely that, after even a few years in your home, you’re sitting on some equity. So what should you do with it? Phase 3 is often the time when homeowners can take advantage of equity they’ve gained.

First, if you bought an older home, it may be time to update some of your home’s major systems — think furnace, roof, or windows. Portland, OR-based mortgage broker Lauren Green of Green Family Mortgage recommends researching two options for financing home improvements: home equity lines of credit (HELOC) and cash-out refinances.

“Many people have no idea they can access their home’s equity,” Green says. “They think the only way to take advantage of their home’s increased value is to sell it, but in reality, there are some great ways to access the equity in your home while still living in it.”

Second, after living in your home for a few years, you probably have a better idea of the renovations that would really make your home work for your lifestyle.

“There are lots of reasons why someone may decide to remodel instead of sell and look for a new home,” says Tyler Coke, project manager and business development manager at Marrone & Marrone, a custom home builder and remodeler in the Bay Area. “One thing that appeals to many homeowners is the custom aspect of it. You can design and create exactly the type of space that fits your lifestyle and speaks to how you use your home.”

Phase 4: Moving on

When will you know it’s time to move on? And what will prompt you to move somewhere new?

“Usually, it’s some kind of transition that causes people to sell,” says Bohn. “A new job, a growing family, or downsizing once the kids move out. In big cities, we’re also seeing people moving from more centrally located neighborhoods to farther-flung suburbs, where their money will get them more.”

Whatever your reason for putting your home on the market, the day you sign on the dotted line and close your front door for the last time is likely to be a bittersweet moment. But change can be good, and the next time you buy a home, you’ll be well-versed in all four phases and know just what you’re looking for.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

9 Upgrades Your Home Shouldn’t Go Without

Wed, 17 Oct 2018 19:08:00 GMT

Approaching your 10th home-iversary? Congrats! It’s probably time for a little maintenance.

No matter how much you love and care for your home, things are bound to wear out and need fixing — especially when you hit the 10-year mark.

To keep your house in tiptop condition, consider making these updates every 10 years or so.

Get new carpet

The average medium-grade carpet has a life expectancy of approximately 10 years. Of course, that depends on several factors, including the number of people and pets.

Signs that you need to replace your carpet: rips, tears or stains, and odors that remain even after a good cleaning. And even without any of those, your carpet might just look old and worn out. An update wouldn’t hurt.

Replace the hot water tank

A water heater may not show any symptoms before it leaks or fails, so it’s important to know its age. If the manufacture date isn’t shown, then it may be embedded in the serial number on the tank.

A good rule of thumb: Any tank that’s been around for 10 years or more is a candidate for replacement.

Update ceiling fans

A midrange ceiling fan should last about 10 years if it’s running frequently. A common sign that it might be time for a new one: the lightbulbs seem to burn out more quickly than usual.

And since a ceiling fan is about style as well as function, you may just want a more modern model.

Buy a new dishwasher

Like your water heater, consider replacing your dishwasher if it’s 10 years old. You’ll likely get a more energy-efficient model that’ll pay for itself over time.

Signs that you should replace your dishwasher sooner rather than later are an unresponsive control board, poorly cleaned dishes and cracks in the tub.

Replace garbage disposal

You’ll know you need a new garbage disposal when it doesn’t work as well as it used to. This is because the blades dull over time.

The average garbage disposal should last about 10-12 years with regular use, so if yours is around that age, consider replacing it.

Replace washer and dryer

The average lifespan of both appliances is about eight years. So, if your set is 10+ years old and running without any issues, consider yourself fortunate! That said, think about replacing them before you have any real problems or leaks.

Repaint inside and outside

There’s no hard and fast rule about when to repaint your home. It depends on where you live, humidity and many other factors.

People often repaint certain areas, such as a heavily used living room, every three to five years. But if some areas of the home haven’t been repainted in 10 years or more, now’s definitely the time to do it.

Re-caulk showers, bathtubs, and sinks

Few jobs offer as much bang for your buck as re-caulking. Whether you just haven’t gotten around to it yet or you’re moving into a 10-year-old home, go ahead and re-caulk the tub, shower, and sinks. You can easily do this yourself, and it makes everything look so much brighter.

Re-glaze windows

Re-glazing old windows is easier and more cost-effective than replacing them. And generally speaking, re-glazing should be done about every 10 years or so.

But check your windows every year before the cold weather arrives to make sure you don’t have any leaks or cracks.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

How to Refinance a VA Loan

Wed, 10 Oct 2018 19:07:49 GMT

The benefits of a mortgage that’s backed by the Department of Veterans Affairs continue beyond the day your loan closes. You can lower your rate, tap into your home’s equity or even bring your conventional loan into the VA program by refinancing.

Two types of VA refinance

You can refinance your VA loan in two ways:

With an interest rate reduction refinance (IRRRL), also sometimes called a VA streamline.

With a VA cash-out refinance.

Interest rate reduction refinance loan

The Interest Rate Reduction Refinance Loan “is envisioned as a low-impact, no-frills refinance that exists to get veterans into a lower interest rate,” says Chris Birk, director of education with Veterans United Home Loans in Columbia, Missouri.

An IRRRL is a VA-guaranteed loan made to refinance an existing VA-guaranteed loan, generally at a lower interest rate than the current VA loan rates, and with lower Principal and Interest payments when compared to the existing VA loan… unless you’re refinancing out of a VA loan with an adjustable-rate. (For details, see NerdWallet’s explanation of the VA Interest Rate Reduction Refinance Loan, or IRRL.)

Unlike most other refinances, your home doesn’t have to be your primary residence. All that’s required is prior occupancy. If you’re stationed in a new area and want to keep your first home, for instance, you can refinance that mortgage without living in the home.

Some VA lenders might have their own company “overlays” and require items such as a minimum credit score, minimum income, or an appraisal for a streamlined refinance, Birk says. They might also require that you not have had any late mortgage payments within the past 12 months.

Cash-out refinance

If you want to tap into your home’s equity, you can refinance your current mortgage—whether it’s VA or conventional—into a VA cash-out refinance loan.

Lenders always require a minimum credit score and an appraisal with this type of refinancing, and the home has to be your primary residence.

You may be able to finance up to 100% of the appraised value of your home, though the exact amount you can borrow will vary depending on your qualification and the mortgage lender you are working with.

The only way to bring a conventional loan into the VA program is with this type of Full Qualifying option.

Eligibility

To qualify for a VA refinance, you must be an active-duty service member, an honorably discharged veteran or the occupying spouse of a current service member on assignment . If you’re the widow or widower of a veteran and want to refinance a VA loan, you must be unmarried at the time of the refinance, and your spouse has to have died in the line of duty or from a service-related injury unless you’re applying for an IRRRL. In that case, the cause of death doesn’t matter, but you need to have obtained the VA loan prior to your spouse’s death.

Looking to buy a home?

Credit score and income requirements vary by lender, according to Jimmy Vercellino, a mortgage originator and VA loan specialist with First Choice Loan Services in Scottsdale, Arizona.

Vercellino says minimum credit score requirements can range from 580 to 640. Birk says that a common minimum credit score is 620.

In terms of your debt-to-income ratio, Vercellino says that 41% and lower is the norm, but lenders may accept higher DTI ratios, depending on the Residual Income calculation, as well as your credit score, payment history, and savings.

Because it’s the lender that’s putting money on the line rather than the VA, Vercellino says, the lender is able to put its own requirements on VA loans (the VA’s guaranty might cover only a quarter of each loan). And if one lender says no, it doesn’t mean that you can’t qualify for a VA loan somewhere else.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

How Many Credit Checks Before Closing on a Home?

Tue, 09 Oct 2018 19:07:37 GMT

Throughout the approval process, push yourself to maintain your credit while lenders pull it.

Navigating the purchase of a home can be overwhelming for first-time buyers. Lenders require documentation of seemingly every detail of your life before granting a loan. And of course, they will require a credit check.

A question many buyers have is whether a lender pulls your credit more than once during the purchase process. The answer is yes. Lenders pull borrowers’ credit at the beginning of the approval process, and then again just prior to closing.

Initial credit check for preapproval

In the first phase of acquiring a loan, pre-qualification, you’ll self-report financial information. Lenders want to know details such as your credit score , social security number, marital status, history of your residence, employment and income, account balances, debt payments and balances, confirmation of any foreclosures or bankruptcies in the last seven years and sourcing of a down payment. This is only a portion of the total information needed for your mortgage application.

Once you’re ready to get pre-approved for a loan, lenders will verify your financial information. During this phase, lenders require documentation to confirm the information in your application and pull your credit history for the first time. You may be required to submit a letter of explanation for each credit inquiry in recent years, such as opening a new credit card, and for any derogatory information in your history, like a missed payment.

Once you find a home within budget and make an offer, additional or updated documentation may be required. Underwriters then analyze the risk of offering you a loan based on the information in your application, credit history, and the property’s value.

Looking to buy a home?

Second credit check at closing

It can take time for your offer to be accepted, and for your loan to pass underwriting. During this period from the initial credit check to closing, new credit incidents may occur on your history. Many lenders pull borrowers’ credit a second time just prior to closing to verify your credit score remains the same, and therefore the risk to the lender hasn’t changed. If you were late on a payment and were sent to collections, it can affect your loan. Or, if you acquired any new loans or lines of credit and used those credit lines, your debt-to-income ratio would change, which can also affect your loan eligibility.

If the second credit check results match the first, closing should occur on schedule. If the new report is lower or concerning to the lender, you could lose the loan. Alternatively, the lender may send your application back through underwriting for a second review.

It’s important for buyers to be aware that most lenders run a final credit check before closing, so the home-buying window is a time to prudently mind your credit.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

FHA Loan Down Payments

Thu, 04 Oct 2018 19:07:24 GMT

It’s a big roadblock on the path to homeownership: the down payment. FHA loans offer low down payments and accounted for about 13% of all home loans in 2016, according to government data.

That may not seem like a huge percentage, but about 80% of FHA loans are made to first-time home buyers. That meant 730,000 new homeowners last year, according to an analysis by Genworth, a mortgage insurance provider.

Here’s how much an FHA down payment will cost you — and how you can get an FHA-backed low-down-payment mortgage.

How much is an FHA loan down payment?

An FHA loan can mean a down payment as low as 3.5%. On a $300,000 home, that would be $10,500. Compare that with the traditional 20% down payment that most lenders prefer, which would come out to $60,000. Big difference. And that’s before closing costs and other buying-a-home expenses.

The FHA guidelines outline the Down Payment calculations based upon the borrower’s credit scores. To get the minimum FHA down payment deal, you’ll need a credit score of 580 or better. If you fall into the FICO range of 500 to 579, you will be required to put 10% down. Each Lender and their investors, however, set their own credit score minimums for approval. Based upon the current market, Big Valley Mortgage has set our minimum FICO credit score to qualify as 600.

But FHA loans come with a price tag: mortgage insurance premiums. You’ll pay an upfront fee and ongoing monthly premiums.

Looking to buy a home?

Beyond FHA: Low-down-payment alternatives

Many banks, credit unions, and online mortgage lenders offer FHA loans. But for borrowers with higher credit scores, FHA loans aren’t the only low-down-payment mortgages around. Fannie Mae- and Freddie Mac-backed mortgages — which are considered “conforming” loans — are popular with lenders because they don’t carry the regulations and restrictions of FHA-backed mortgages.

“While FHA loans still serve their purpose for some buyers, folks with [credit] scores above 720 usually find conforming loans a better option, especially now, since they can put as little as 3% to 5% down,” Ted Rood, a senior loan officer in St. Louis with 15 years of experience, tells NerdWallet.

You will also pay for mortgage insurance on this conforming-loan — also called conventional mortgage — programs that let you borrow up to 97% of the home’s value, he says. But with a Fannie- or Freddie-backed loan, you may be able to cancel it after you reach 20% equity in your home. By contrast, FHA mortgage insurance is most often charged for the life of the loan.

FHA loans are still the most sought-out option for first-time homebuyers, particularly for buyers with credit that is less than perfect. But if you have good credit, Fannie- and Freddie-backed loans open up new possibilities for qualified borrowers who just can’t quite get over that 20% down hurdle.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

5 Reasons to Buy a Home This Fall

Thu, 27 Sep 2018 19:07:12 GMT

Real estate markets ebb and flow just like the seasons. The spring market starts hopping when the sun comes out, flowers bloom and winter is over. Conversely, fall signals the beginning of a slower market, which could be good for buyers.

If you’re in the market for a home, here are some reasons why fall can be a great time to buy.

Leftover spring inventory may result in deals

Home sellers tend to go on the market for the first time in the spring. They often list their homes too high out of the gate, which could mean that a series of price reductions follow during the spring and the summer months.

These sellers have fewer chances to capture buyers after Labor Day. By October, buyers are likely to find desperate sellers and prices that may, in fact, be below a home’s true market value.

Fewer buyers are competing

Families who want to be in a new home by the beginning of the school season are no longer shopping at this point. These families have exited the market, which means less competition. That translates into more opportunities for buyers.

Taking out an entire segment of the housing market provides millennial, single, and baby boomer buyers some breathing room. You’ll likely notice fewer buyers at open houses, which could signal a great opportunity to make an offer.

Motivated sellers want to close by the end of the year

While a home is where an owner lives and makes memories, it is also an investment — and one with tax consequences. A home seller may want to take advantage of a gain or loss during this tax year.

Buyers might find homeowners looking to make deals so they can close before December 31st and get that tax benefit. Ask why the seller is selling, and look for listings that offer incentives to close before the end of the year.

Homes for sale near the holidays signal a motivated seller

As the holidays approach, the last thing a homeowner wants is for their sale to be dragging on and interrupting their parties and events.

If a home has not sold by November, and it’s still sitting on the market, that homeowner is likely motivated to be done with the disruptions caused by their home being listed for sale.

Many homes don’t show as well once the landscaping fades

The best time to do a property inspection is in the rain and snow, because the home will be truly exposed for buyers. The same holds true for fall, when flowers die, trees start to shed their leaves, and beautiful landscapes are no longer so lovely.

Scratching the surface of the pretty spring home season and fall reveals home flaws, making it a great time to see each home’s true colors. It’s better to see the home’s flaws before making the offer, instead of being surprised months after you close.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

How To Decide Its Time To Buy A Home

Fri, 21 Sep 2018 19:07:01 GMT

Maybe it’s spotting a “for sale” sign on that funky cottage you’ve always admired on your morning bike ride. Or a friend raves about the perks and privacy at the chic new condo she’s just purchased. Maybe you’re tired of roommates or just want to tend your own garden.

At some point, something will make you ask yourself: Should I buy a home and how much house can I afford?

The decision to go from renter to homeowner is emotionally and financially complex. Here are some key factors to consider when deciding whether buying makes sense for you.

There’s no better time to buy, right?

Owning a home used to be a virtual requirement in attaining the so-called American dream. But that was when people drove 2-ton cars, smoked on airplanes and watched live television. Buying is a smart choice for many people, but it isn’t always ideal, depending on the market where you live and factors such as how long you plan to stay in your home and the size of the home you want to purchase compared to where you’re renting.

Before you commit to buying, factor in the following points:

There’s a big initial investment involved

You have to pony up a lot of money when you purchase your house, from the closing costs (roughly 3% of the home’s purchase price) to the down payment itself. Not everyone has that kind of cash to spare.

Can you handle the debt?

Lenders often look at your debt-to-income ratio: how your mortgage payments and other debts would stack up against your pay. Conventional lenders often use the so-called 28/36 rule when determining whether to offer you a loan. Your house-related payments (mortgages, taxes, insurance) shouldn’t exceed 28% of your pretax income, and all other combined debts shouldn’t exceed 36% of your monthly pretax income. (Much more on this later.)

Buying is more expensive than you think

You can’t simply compare your monthly mortgage payment to your monthly rent — these are apples and oranges, particularly when you consider that the place you purchase won’t necessarily be the same size as the place you’re renting. Though you can deduct some of your homeownership expenses, you’ll have to pay property taxes, homeowner’s insurance, HOA fees and probably mortgage insurance, as well as renovations, maintenance, utilities, and other fees typically covered by a landlord. (You can directly plug numbers into a handy rent-buy calculator from the New York Times.)

Buying decreases ease of mobility

In today’s ever-changing job market, very few people can say with certainty that they’ll have the same employer in five years. It’s much easier, and less expensive, to leave a yearlong lease than to sell a home.

How hot is your market?

Real estate is local and cyclical, so consider whether your area is better suited to renting or buying. If you live in a larger metropolitan area, the Case-Shiller Index is a useful at-a-glance look at how current real estate values where you live compare to historic highs and lows.

Is a home an investment?

Some people would rather put their money toward equity in their property instead of giving it to a landlord. While that math makes sense for many — especially those who plan to stay long enough to pay off their mortgage entirely — nobody can predict whether home prices will rise or fall in a given time frame, so don’t count on your home to be a cash cow.

What to do before you act

If you’re thinking about buying, follow these steps before making your move. Calculate your current debts, including car loans, credit card payments, and student loans. Remember the 28/36 rule mentioned above.

Consider how much available cash you have

You’ll want enough to at least cover your down payment and closing costs, and don’t forget to leave enough in your bank account to cover any emergencies that might arise.

Make sure you can put enough money down

Traditionally, lenders have required down payments equal to 20% of the home’s purchase price, but special programs allowing down payments as low as 3% are available. (Putting 20% down on a $300,000 home would require $60,000 in the bank — plus an additional $9,000 or so for closing costs.)

Get preapproved for a loan

Contact a lender to get preapproved for a mortgage. This doesn’t require you to accept the loan; it’s just a way of showing real estate agents and sellers that you’re serious. One of the first things a prospective agent will ask is whether you’ve been preapproved, so check off this box early in the process.

Are you better off renting?

Deciding whether to rent or buy is a big decision that requires serious “Where am I now?” and “Where am I going?” sorts of questions. It might be best to keep renting if you want to maintain maximum flexibility for personal or professional reasons, or if jumping into more debt right now takes you out of your comfort zone. Maybe you’re just not ready to face the responsibilities of homeownership: repairs, upgrades, maintenance, yard work and all the rest. Even thinking about the difference between cleaning an 800-square-foot apartment and a 2,400-square-foot house can make you want to take a seat and a deep breath.

Your local housing market could be working against you, as well. If you live in a hot market with eager house hunters chasing too few properties, it might be best to bide your time until a better buying opportunity presents itself.

Ready to see if you can qualify for a home?

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Asking These 6 Questions Can Save You Money When Buying New Construction

Mon, 17 Sep 2018 19:06:51 GMT

If you’re in the market for a brand-new home, you’ve got a ton of options. Sales of new homes surged to an eight-year high in 2015, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, and single-family production is estimated to reach 840,000 units in 2016, an 18 percent increase over 2015, according to the National Association of Home Builders (NAHB).

Unfortunately for home buyers, new residential construction is coming at a steeper price: Last year the average price of a new home jumped to $351,000, up to $100,000 from 2009, reports the NAHB.

Nonetheless, there are still ways you can save when buying a new home. It’s like shopping for a new car: You need the right strategy to nab the best deal.

Ask prospective builders these six questions in order to find the right home at the right price.

6 Questions to Ask

“What financial incentives do you offer for using your preferred lender and title company?”

The bad news: Production builders are often reluctant to set a precedent for negotiating sales prices. (Custom builders tend to be more flexible.)

“If a new home is listed for $370,000 and it sells for $360,000, the next buyer in the development is going to want to pay that lower amount,” says Craig Reger, a real estate broker at Keller Williams Realty in Portland, OR. However, many offer handsome incentives to buyers who use their preferred lender and title company.

Some may even knock off up to $10,000 in closing costs, says Peggy Yee, a supervising broker at Frankly Real Estate in Vienna, VA. Others will sweeten the deal by negotiating prices on finishes, such as upgrading carpet to hardwood floors.

You should still shop around and get quotes from at least two other lenders before making your decision. But don’t just pay attention to the interest rates. “You need to compare each loan estimate’s terms to make sure you’re getting an apples-to-apples comparison,” says Chris Dossman, a real estate agent with Century 21 Scheetz in Indianapolis.

“Which are the standard finishes?”

When you tour a development’s model home, keep in mind that you’re previewing a high-end version of the standard home. “The model has all the bells and whistles,” says Dossman. Therefore, you need to find out from the builder which options are standard, which options are upgrades, and what each upgrade costs.

One way to cut costs: Move into the home without an upgrade, then hire a contractor to do the work. “Builders charge a huge markup on certain finishes and products,” says Reger. “The builder might charge $4,000 to $6,000 for a high-performance air conditioner, but you may be able to get another company to install that same unit for as low as $2,500.”

Granted, opting for the latter means you’ll probably need to pay the contractor in cash. “For some people, the benefit of paying the builder to do upgrades is that they can roll the costs into their loan amount,” Reger points out.

“What are your long-term plans for the community?”

Depending on the size of the land, the builder might be planning several subdivisions. This could impact your decision to buy.

For example, let’s assume that only a few homes have been built and sold. If the developer plans to construct an additional 50 homes and you’re one of the first people to move into the neighborhood, you may have to deal with loud construction crews for several months.

There’s also the risk that the builder loses funding and another company takes over the development. Dossman advises proceeding with caution: “If the builder changes and a lower-quality builder takes over, that could affect the value of your home.”

“What are the homeowners association rules and regulations?”

Each homeowners association (HOA) has its own Declaration of Covenants, Conditions, and Restrictions (CC&Rs) and bylaws. Get these from the builder and review them carefully.

“I’ve seen HOAs that don’t allow storage sheds in the backyard, solar panels, or private fences,” says Reger.

In most cases, the HOA can assess a homeowner’s penalties for infractions, and some associations are more restrictive than others.

Also, look into when you’re required to start paying HOA dues. Many builders cover the costs until at least 50 percent of the homes in the development are sold, says Yee.

“What warranties do you provide?”

Most builders offer a one-year workmanship warranty and a 10-year structural warranty, says Reger. Make sure the warranties you receive explicitly state what is and isn’t covered, and what the limitations are for damages.

You should also receive the manufacturer’s warranties on the washer and dryer, hot water heater, air conditioner, kitchen appliances, and roof.

“Can you connect me with some of your past clients?”

Always check references when vetting home builders, says Dossman. Ask past clients questions such as, “How responsive was the developer when you expressed concerns?” and “Would you use the builder again?”

Caveat: Most builders will only provide glowing references, so you should still scout out some past customers on your own. You can find these people through reviews on Angie’s List, or knock on doors of homes in the neighborhood that have already been built.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Documents Needed for a Mortgage Pre-approval: A Checklist

Thu, 06 Sep 2018 19:05:41 GMT

Getting pre-approved for a mortgage before you go home shopping isn’t required, but it is a good idea, especially in a seller’s market, where competition among buyers is intense. Unlike a pre-qualification, a pre-approval letter lends weight to your bid on a home, proving to sellers that you have the financial clout to stand behind your offer.

To get pre-approved, you’ll need to verify your income, employment, assets, and debts, says Bob McLaughlin, senior vice president, and director of the residential mortgage at Bryn Mawr Trust, in Bryn Mawr, Pennsylvania.

It’s likely you already have many of the records you’ll need or easy access to them. “Gathering the documents shouldn’t take more than a week, depending on the lender’s requests and whether you need records from outside sources, like an attorney or county government,” says Andy Kush, director of home loan sales at Patelco Credit Union in Pleasanton, California.

Even for a pre-approval, your lender may want more documents, especially if you’re self-employed or your income comes from several sources. Also be prepared to share information such as your Social Security number, which is used to check your credit reports and scores; your employer’s name and address; and your hire date.

Here’s a list of documents you’ll need according to McLaughlin, Kush and Michael Kuentz, President of Lenders One, an independent mortgage bankers’ cooperative based in St. Louis.

Income and employment

The documents required to verify income depend on how you get paid. This step is easiest for workers with a paycheck from one source, which provides an annual W-2 form, and who have little or no overtime or shift differentials.

Tax returns

Copies of your two most recent federal and state returns may be required.

Income

W-2 wage earners

Copies of W-2 forms and your two most recent payroll stubs. If income includes overtime, bonuses or differential pay, you may need your most recent end-of-year payroll stub.

Self-employed, freelancers and independent contractors

Self-employed borrowers, including sole proprietors, partnerships and S-corporations, need a year-to-date profit and loss statement and two years of records, including the Form 1099s you used to report income and file taxes.

Real estate income

Document the rental income, address, lease and current market value of a rental property if you will use this income to qualify for a mortgage.

Assets

Bank statements

Copy 60 days’ worth of statements for every account whose assets you’re using to qualify for the mortgage. Include even blank pages of the statements.

Retirement and brokerage accounts

Two months of statements from IRAs, investment accounts (stocks and bonds), and CDs. The last quarterly statement from 401(k)s showing the vested balance. As with bank statements, include every page, even blank pages.

Debts

Monthly debt payments

Lenders examine your payment obligations to calculate your debt-to-income ratio. List all monthly debt payments, including student loans, auto loans, mortgage, and credit cards. Include each creditor’s name and address and your account number, loan balance and minimum payment amount. If you have no credit history, utility bills may be used to help you qualify for a mortgage based on nontraditional sources of credit.

Real estate debt

If your current property is mortgaged, have your most recent statement — showing the loan number, monthly payment, loan balance and the lender’s name and address — and the declaration page of the insurance policy.

Other records

Rent

Renters need to show payments for the last 12 months and provide contact information for landlords for the last two years.

Divorce

Have your court divorce decree ready, if applicable, and any court orders for child support and alimony payments.

Bankruptcy and foreclosure

Ask your lender what documents they’ll need and how long you should wait after bankruptcy or foreclosure to re-enter the housing market.

Down payment gift letters

Lenders will want to talk about your down payment. You’ll need to show the sources of the money you plan to use. If your funds include gifts, you’ll need to get letters from your donors showing they don’t expect to be paid back. Gift letters aren’t required for pre-approval “but we do let borrowers know to be prepared,” Kush says.

Whew. You’re done for now. Keep those files handy, though. You’ll need these documents again when applying for the loan.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

How to Get a Mortgage and Change Jobs at the Same Time

Tue, 04 Sep 2018 19:05:24 GMT

It’s true that changing jobs can affect your loan approval, but, like most mortgage-related questions, the devil is in the details. So long as you are moving from one position to one with equal or higher income, and you are able to provide documentation of your work and income history, any changes to your loan approval chances should be minimal. The most important thing for lenders and their underwriters is ensuring you can repay the loan, and the best indicators of that are your income and history of employment.

Lenders want to know you have a reliable, steady income that is ongoing, for at least the next three years.

If you’re thinking about accepting a new job or recently moved positions, consider the ways it may hinder your mortgage acquisition.

What to expect when changing jobs before getting a mortgage

If your new job is within the same industry as your last, and if the transition earns better pay, then lenders likely will not have a concern. Promotions are looked at favorably. Even lateral moves to stronger companies offering increased salary or improved benefits are sensible business decisions that shouldn’t impede loan acquisition.

Your lender likely will want to ensure the longevity of your new role and confirm your new salary. Full-time positions with long-term contracts are ideal. Expect to work in your new role for at least 30 days before earning loan approval. Typically, you’ll need to provide your first pay stub from the new company and disclose your offer letter confirming your salary. Be prepared for lenders to omit commission earnings from your total salary since your commission is unproven in the new role, which could affect your total loan amount.

How to get a mortgage with a new job

Avoid transitioning to a job that doesn’t make financial sense, such as a lateral move for less pay, a change from full-time employee to a contractor or a major industry change. Employment history showing frequent career moves could be a red flag for lenders that you may not be able to maintain a steady income.

Another red flag for lenders is an extended gap in employment history. Chances of acquiring a mortgage may be stronger if your period of unemployment was less than six months. However, some exemptions include military service members returning from deployment or full-time students transitioning into the workforce; these paths are viewed as forms of employment.

How to get a home loan when relocating

If your new job requires you to move, you’ll need to solidify living arrangements before relocating. If you don’t mind renting in your new location for at least 30 days to provide lenders with your first pay stub, it’s likely the least stressful solution. Extended-stay hotels are popular options while familiarizing yourself with the surrounding community and local real estate market. On condition that you’re sticking to the same industry and the new role offers a financial or career advantage, the new job should not restrict quick loan acquisition in a new city.

Alternatively, you could attempt purchasing and closing on a home in the new location before giving notice to your current job for a smooth, one-time move. If you’re moving fast, understand a purchase offer takes 30-45 days to close, on average. Lenders verify employment during the loan application and then again just prior to closing, so be sure to maintain employment until the sale closes.

If you’re a homeowner and need to sell while shopping for a new home, and possibly live in a rental simultaneously, finances can become demanding. Selling your current property before buying can provide cash from closing to help fund your down payment, which could boost your loan eligibility. But if you can afford to carry two mortgages for a period of time, you can purchase a home in the new location, move indirectly and then work to sell the initial property remotely. Again, you’ll be limited to the speed of the purchase agreement or expect to disclose your new role to the lender.

Can relocation packages help with home purchases?

Often, companies offer relocation packages that range in coverage from paying for a moving service to a generous Guaranteed Buy Out (GBO). A GBO is when the company buys your home for an average appraisal value if it does not sell in a fair timeframe. Other relocation packages might help with closing costs of your home sale or pay the real estate commission fees. If you’re underwater on your home, your new employer might cover the loan difference at resale.

Some relocation packages assist their new employees to purchase a local home within a year of moving, they may buy down your interest rate or contribute to a down payment.

Whether buying a house out of necessity or preference, acquiring a new job within the same industry for better pay likely won’t prevent loan approval, but it may slow the process down by a month.

Looking to purchase a home now?

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

10 Home Buying Secrets from Roseville Mortgage Experts

Tue, 28 Aug 2018 19:05:16 GMT

Buying Secret #10: Keep Your Money Where It Is

It’s not wise to make any huge purchases or move your money around three to six months before buying a new home. You don’t want to take any big chances with your credit profile. Lenders need to see that you’re reliable and they want a complete paper trail so that they can get you the best loan possible. If you open new credit cards, amass too much debt or buy a lot of big-ticket items, you’re going to have a hard time getting a loan.

Buying Secret #9: Get Pre-Approved for Your Home Loan

There’s a big difference between a buyer being pre-qualified and a buyer who has a pre-approved mortgage. Anybody can get pre-qualified for a loan. Getting pre-approved means a lender has looked at all of your financial information and they’ve let you know how much you can afford and how much they will lend you. Being pre-approved will save you a lot of time and energy so you are not running around looking at houses you can’t afford. It also gives you the opportunity to shop around for the best deal and the best interest rates. Do your research: Learn about junk fees, processing fees or points and make sure there aren’t any hidden costs in the loan.

Buying Secret #8: Avoid a Border Dispute

It’s absolutely essential to get a survey done on your property so you know exactly what you’re buying. Knowing precisely where your property lines are may save you from a potential dispute with your neighbors. Also, your property tax is likely based on how much property you have, so it is best to have an accurate map drawn up.

Buying Secret # 7: Don’t Try to Time the Market

Don’t obsess with trying to time the market and figure out when is the best time to buy. Trying to anticipate the housing market is impossible. The best time to buy is when you find your perfect house and you can afford it. Real estate is cyclical, it goes up and it goes down and it goes back up again. So, if you try to wait for the perfect time, you’re probably going to miss out

Looking to purchase a home soon?

Buying Secret # 6: Bigger Isn’t Always Better

Everyone’s drawn to the biggest, most beautiful house on the block. But bigger is usually not better when it comes to houses. There’s an old adage in real estate that says don’t buy the biggest, best house on the block. The largest house only appeals to a very small audience and you never want to limit potential buyers when you go to re-sell. Your home is only going to go up in value as much as the other houses around you. If you pay $500,000 for a home and your neighbors pay $250,000 to $300,000, your appreciation is going to be limited. Sometimes it is best to buy the worst house on the block because the worst house per square foot always trades for more than the biggest house.

Buying Secret #5: Avoid Sleeper Costs

The difference between renting and homeownership is the sleeper costs. Most people just focus on their mortgage payment, but they also need to be aware of the other expenses such as property taxes, utilities, and homeowner-association dues. New homeowners also need to be prepared to pay for repairs, maintenance, and potential property-tax increases. Make sure you budget for sleeper costs so you’ll be covered and won’t risk losing your house.

Buying Secret #4: You’re Buying a House – Not Dating It

Buying a house based on emotions is just going to break your heart. If you fall in love with something, you might end up making some pretty bad financial decisions. There’s a big difference between your emotions and your instincts. Going with your instincts means that you recognize that you’re getting a great house for a good value. Going with your emotions is being obsessed with the paint color or the backyard. It’s an investment, so stay calm and be wise.

Buying Secret #3: Give Your House a Physical

Would you buy a car without checking under the hood? Of course, you wouldn’t. Hire a home inspector. It’ll cost about $200 but could end up saving you thousands. A home inspector’s sole responsibility is to provide you with information so that you can make a decision as to whether or not to buy. It’s really the only way to get an unbiased third-party opinion. If the inspector does find any issues with the home, you can use it as a bargaining tool for lowering the price of the home. It’s better to spend the money upfront on an inspector than to find out later you have to spend a fortune.

Buying Secret #2: The Secret Science of Bidding

Your opening bid should be based on two things: what you can afford (because you don’t want to outbid yourself), and what you really believe the property is worth. Make your opening bid something that’s fair and reasonable and isn’t going to totally offend the seller. A lot of people think they should go lower the first time they make a bid. It all depends on what the market is doing at the time. You need to look at what other homes have gone for in that neighborhood and you want to get an average price per square foot. Sizing up a house on a price-per-square-foot basis is a great equalizer. Also, see if the neighbors have plans to put up a new addition or a basketball court or tennis court, something that might detract from the property’s value down the road.

Today, so many sellers are behind in their property taxes and if you have that valuable information it gives you a great card to negotiate a good deal. To find out, go to the county clerk’s office.

Sellers respect a bid that is an oddball number and is more likely to take it more seriously. A nice round number sounds like every other bid out there. When you get more specific the sellers will think you’ve given the offer careful thought.

Buying Secret #1: Stalk the Neighborhood

Before you buy, get the lay of the land – drop by morning noon and night. Many homebuyers have become completely distraught because they thought they found the perfect home, only to find out the neighborhood wasn’t for them. Drive by the house at all hours of the day to see what’s happening in the neighborhood. Do your regular commute from the house to make sure it is something you can deal with on a daily basis. Find out how far it is to the nearest grocery store and other services. Even if you don’t have kids, research the schools because it affects the value of your home in a very big way. If you buy a house in a good school district versus a bad school district even in the same town, the value can be affected as much as 20 percent.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

7 Qualities That Makes a Great Neighbor

Wed, 15 Aug 2018 19:05:07 GMT

Win and woo your next-door friends with a little neighborly know-how.

If you want good neighbors, you’ll first have to become one yourself. Master these seven techniques, and even you (yes, you!) can win the approval of your entire neighborhood.

1. Good neighbors bring cookies

Whether you’re new in town or haven’t kept in touch, a delivery of freshly baked goods is a perfect way to break the ice and let neighbors know that you’re thinking of them.

If cookies can keep Santa returning year after year with a bag full of loot, then surely they can train your neighbors to do your bidding. Consider the following scenario.

“Honey, somebody’s robbing the neighbor’s house again.”

“Wait, Janet. The ones who brought cookies yesterday?”

“Exactly. This time I’ll call the cops.”

2. Good neighbors rarely gossip

If your neighbor seems to know the dirt on everyone within a two-block radius, you can count on them to keep tabs on your personal life as well.

The next time Nosy Nellie gleefully describes the contents of the Rickenbacker’s trash again, move the conversation along by refocusing the conversation on her. “So, what are you growing in your garden this year?”

You aren’t in high school anymore, so preserve relationships with your neighbors and avoid the gratuitous gabfests.

3. Good neighbors share phone numbers

For such a connected age, you should really question why you don’t have your neighbors’ phone numbers. After all, what if they receive your package by mistake? What if the house floods while you’re on vacation? Worse yet, what if you need a babysitter?

If you feel uncomfortable bringing it up, ask during one of your cookie deliveries (you are following rule number one, right?) or right before a trip. Jot down your name, number and email address on a piece of paper and ask if your neighbor is comfortable sharing theirs.

4. Good neighbors help before they’re asked

The neighbor who says, “Let me know if you need anything,” probably isn’t going to help whenever you actually need something. You, on the other hand, are a good neighbor and genuinely want to help out.

To get ahead of the meaningless small talk, anticipate their needs. If they have kids and you’re comfortable babysitting, tell them upfront. If they’re clearly struggling to mow the lawn during a heatwave, ask for the best time to stop by with your lawnmower.

5. Good neighbors are tidy

Even if you lack self-respect, respect the sensitive tastes of others and clean up your act.

Keep the ironic lawn ornaments to a minimum. Keep trash receptacles hidden in the side yard, or better yet, the garage.

Whenever you’ve finished gardening or landscaping for the day, put away your tools and bags of unused mulch. Rake the leaves and clean up grass clippings and all the other stuff your dad used to bug you about.

And if it’s not too much trouble, pressure wash and paint your house periodically.

6. Good neighbors mow the lawn

An unkempt and weedy lawn is embarrassing for your neighbors, so it should be embarrassing for you as well. Keeping it mowed every week or two is a good start, but it will take more than that to win the approval of the locals.

Trim the edge of your lawn regularly, fertilize on schedule and keep weeds to a minimum. Keep your foundation plantings simple, neatly trimmed and topped off with mulch.

If your neighborhood allows it, go the no-lawn method by planting swaths of low-maintenance, drought-tolerant ground covers. Crucially, don’t overdo it on the sprinklers — especially when it’s raining.

7. Good neighbors communicate

That old “good fences make good neighbors” quote had to come up at some point, right? A good neighbor must respect boundaries. That said, they should also be crossed when the fences themselves start losing pickets and falling over in a storm.

Even if it’s technically their fence, you might not be happy with the shoddy workmanship and resentment that you’ll have to live with when they get around to fixing it themselves.

Address shared interests like fences, drainage ditches, and troublesome trees ahead of time so that you can work out a plan that both parties can agree to.

Oh, and don’t forget to bring cookies.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

How Credit Score Affects Your Mortgage Rates Today

Thu, 09 Aug 2018 19:04:53 GMT

Without a high credit score, you won’t qualify for the best mortgage rates available, which could mean you’ll end up paying more money over the term of your mortgage. The difference between 4% and 4.25%, for example, can add up, especially if you’re applying for a 30-year fixed-rate mortgage.

Why does your credit score matter to lenders?

Along with a low debt-to-income ratio and a strong financial history, you’ll need a high credit score for the lowest mortgage rates. Why?

You’d probably hesitate to lend money to a friend who usually takes forever to pay you back — or doesn’t pay you back at all. Lenders feel the same way about mortgages. They want to lend to people who have a record of on-time payments to creditors.

“If somebody has a high credit score, what that shows us is that they’ve been good on meeting their obligations, whether it be credit cards, car loans or other home loans in the past,” says Brian Hoovler, a loan production partner with People’s Home Equity in San Francisco. “It means we’re more likely to want to give you a loan because we know you’re going to pay us back.”

Your credit score is calculated most often with the FICO scoring model and is derived from the information on your credit reports, which are compiled by credit reporting companies. Your reports include a history of your payment habits with borrowed money.

Your credit score is “one of the most important parts to qualify, but it is a part,” says Michelle Chmelar, vice president of mortgage lending with Guaranteed Rate in New York. “You have to have the whole package: income, sufficient assets, and credit.”

Best scores for conventional loans

“Typically, when you have a score of 700-plus, you’ll get a pretty good interest rate,” says David Lin, former director of risk management for consumer credit at Barclays and Citibank. He says that while you can still qualify for certain loans if your score is under 680, the 700s are where you want to aim to pay the lowest rates.

If you’re at the top of the scale, say 720 or above, you’re in the territory known as excellent. As you move down toward 700, your score is considered good. Once you get to 680, you’re heading toward average, and if you’re closer to 640, you might have trouble getting a conventional mortgage from a bank or online lender, Chmelar says.

The lending industry carves up the credit score scale into 20-point increments and adjusts the rates it offers borrowers each time a credit score moves up or down by about 20 points. For instance, if your score drops to 740 from 760, you’re likely to see a small bump up in the rate you’ll be offered. In the industry, this is called “loan-level pricing,” and every time you go down a level, there’s an increase in costs, Hoovler says.

“If you have a score of 760 or above, you’re pretty much golden,” he says. “From there down, every 20 points you’ll start seeing small hits here and there.”

How does a 100-point change affect your mortgage rate?

Let’s see how a 100-point difference in credit scores affects one woman’s mortgage payment.

Suppose a borrower looking to buy a home worth $300,000 has a 20% down payment and applies for a 30-year, fixed-rate loan of $240,000. She has a 780 FICO credit score, which gets her a 3.875% rate. That’s around $1,129 a month, not including taxes, insurance or homeowners association fees.

If this borrower’s score dropped by about 100 points to between 680-699, her rate would increase to about 4.125%. At that interest rate, her monthly payment would increase to about $1,163, an extra $34 a month, or $408 per year.

The effect of the difference in the rates may not seem significant at first, but added up over the years, it could be a lot. In this example, a 100-point-drop has the borrower paying an additional $12,240 over 30 years.

At the same time, it’s important not to go crazy gaming your mortgage rate. If your score is already good, you should consider taking the rate you qualify for. “The difference between a 710 and a 750 score is not so huge that you should wait to raise it,” Hoovler says. If mortgage rates go up while you’re fine-tuning your credit score, “the increase is in all likelihood going to offset any benefit the higher credit score gives you.”

Mortgages where credit score matters less

With conventional loans — those backed by Fannie Mae and Freddie Mac — a lot of focus is put on your credit score, says Dan Keller, a mortgage advisor at New American Funding in Seattle.

The impact of a lower score won’t be as substantial on some types of loans as it would be with a conventional loan, Keller notes. For the best interest rates on a Federal Housing Administration or Veterans Affairs loan, the focus isn’t on a 760 score as it is with conventional loans, he says; it’s on 700-plus.

For a government-insured FHA mortgage, you may be able to have a score as low as 500. VA mortgages don’t require a minimum FICO score, although lenders making the loans usually want a score of 620 or more. Loans backed by the Agriculture Department usually require a minimum score of 640.

So, there’s some leniency on credit scores and underwriting guidelines with government loans. But the loan fees are more expensive: You’ll have to pay private mortgage insurance as well as an upfront and an annual mortgage insurance premium.

Jumbo loans — loans that exceed conforming limits imposed by Fannie and Freddie — have stricter credit score requirements. “Ideally you’d want to be at 760 or above for a jumbo loan,” Hoovler says.

But those credit score guidelines don’t tell the whole story. Most lenders have “overlays,” which are extra requirements or standards that allow them to require higher credit scores as a precaution, regardless of loan type.

Hoovler says these overlays vary widely from company to company, and if a borrower fails to meet overlay requirements with one lender, it doesn’t mean a mortgage is out of reach. “Just because one lender says you’re not qualified doesn’t mean you can’t get a loan,” he says. “It just means you may have to do some more digging to find somebody who’s willing to work either with your credit situation as is or is willing to help you find someone who can put you into a better credit situation.”

How to build your credit score

Here are some of the best ways to build your credit score:

Make payments, including rent, credit cards, and car loans, on time

Keep your spending to no more than 30% of your limit on credit cards

Pay down high-balance credit cards and consider balance transfers to free up credit.

Check for any errors on your credit report and work toward fixing them.

Shop for mortgage rates within a 30-day period. Too many spread-out inquiries can lower your score.

Work with a credit counselor or a lender to build your credit.

The best way to build your credit score is to look at your balance-to-limit ratio, Keller says. “For example, if you had a credit card with a $10,000 limit, and I pull your credit and you’ve got $8,000 charged on that and your credit score is a 726, if I can get you to pay down that credit card to 30% or less — down to $3,000 — your credit score would jump substantially.”

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

FHA Loan Credit Score Requirements for 2018

Mon, 30 Jul 2018 19:04:42 GMT

You must have a credit score of at least 500 for an FHA loan, but to qualify for the lowest down payment, you’ll need 580 or higher.

FHA loans can be the long-sought answer for first-time homebuyers with lower credit scores and low down payments. The question remains, though: Do you have a FICO credit score that would qualify you for an FHA loan? Here’s what you need to know.

Lowest allowable credit score: 500

You’ve got to bat at least 500 to get into this game. With a FICO score below 500, you won’t qualify for a Federal Housing Administration loan. And even with that, you won’t get the full low-down-payment benefit that FHA borrowers with higher scores will.

Better credit score = lower down payment

If your credit score is just a little bit higher, you get a major break on the down payment.

“To qualify for FHA’s minimum down payment of 3.5%, a borrower must have a credit score of 580 or above,” says Brian Sullivan, a public affairs specialist for the Department of Housing and Urban Development.

“Between 500 and 579, the borrower must put 10% down,” Sullivan says.

It’s not just about your credit score

“FHA’s standard underwriting criteria is rolled up into a ‘scorecard’ that considers many factors related to income and debt,” Sullivan adds. “Under certain conditions, particularly when a borrower doesn’t fit into our general scorecard requirements, manual underwriting is required.”

That means a lender has to pull your file out of its automated loan process and review it by hand, and lenders aren’t always eager to do that.

Required scores can vary by lender

The credit score thing may seem pretty cut and dried, but hang on. The fact is: “Lenders set the interest rate, not FHA,” Sullivan cautions.

“FHA is a government mortgage insurance company,” Sullivan explains. The FHA can set its standards and commit to insure mortgages that meet those requirements, “and yet, lenders may add on what are called ‘credit overlays’ on top of our standards,” he adds.

So lenders may require a higher credit score to make a loan or stack on additional credit qualifications. To make sure you get the best interest rate and loan terms, shop more than one FHA-approved lender and compare.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

5 Things to Know About New Builds in Roseville, CA

Wed, 25 Jul 2018 19:04:28 GMT

Imagine being the very first person to live in your new home

Any buyer searching for a home today, in any market or price range, will likely come across new construction homes for sale. Whether built by large national builders or smaller local developers, these homes can be part of a subdivision or standalone properties. For financing solutions, Big Valley Mortgage, a trusted mortgage lender in Roseville, CA , is here to help you every step of the way.

But is a new-construction home the right path for you? Here are five factors you should keep in mind.

New homes may not be listed in your local MLS

Unlike a regular seller who lists their home with a local real estate agent, homebuilders often have their own sales employees working for them on site. They do this to have more control and to cut costs.

What does this mean for buyers? This could mean that the homebuilder isn’t a member of the local MLS, so their homes may not appear in your agent’s MLS search. Builders often advertise online, in newspapers, or with billboards. If you’re interested in newly built homes, work closely with your agent to ensure you’ve explored all available options. For financing, connect with Big Valley Mortgage, the best mortgage lender in Roseville, CA , to secure the right loan for your new home.

New homes are often sold before they’re built

Builders typically secure financing and establish a construction and sales process, aiming to sell as many homes as possible before they’re even built. To attract buyers, they often create model homes, showcasing floor plans, fixtures, and finishes while construction is underway. However, in some states, builders must complete certain approval processes before they can begin signing contracts. If you’re exploring new construction and need financing options, Big Valley Mortgage offers flexible solutions, including first-time home buyer loans, to help you get started.

For the most part, you can get a sense of what your new home would look and feel like and where it will be located in the community. Ready to move forward? You’ll likely have to put down a deposit, from a few thousand dollars to 10 percent of the purchase price.

Be aware that even if there are 100 homes in the community, they won’t all be available at once. Homebuilders tend to release the homes in phases. If the first five homes sell quickly at the asking price and the market continues to do well, the builder can raise the prices in the second or third phase.

Also, the sales cycle for a new community can take years. The last phase could be priced 10 percent or more than the first, simply because the real estate market has appreciated.

The first buyers may get the best discounts

A home builder, especially early in the sales process, wants to get a few homes under contract quickly. If the builder can announce they have 10 homes under contract in a few months, the project can seem more desirable to future buyers.

Also, builders like to go back to their mortgage lenders with positive news about the project and their investment. To do this, they need early buyers to sign contracts.

For buyers, entering the sales process early might offer a chance to negotiate the price down. However, this potential reward comes with risk. As an early buyer, you’re committing to the project, and if sales don’t progress or you choose not to proceed before the home is built, you could lose your down payment. For example, during the last housing downturn, some buyers found themselves stuck under contract on stalled projects. To navigate these challenges confidently, explore home loans in Roseville with Big Valley Mortgage, your trusted partner in financing.

Request a free quote on either a VA or Conventional Loan.

Builders don’t have a personal attachment to the home

A typical seller has lived in their home for many years, and raised their family or built memories there. So when it’s time to sell, the seller may experience all kinds of issues, questions, and uncertainties, which can come out in the negotiation and purchase process.

The seller may unconsciously price the home too high because they’re not ready to emotionally detach from it. They may want to know more about you, or what your plans are for the property. If given a choice between two buyers, the seller may pick one over the other for non-financial reasons.

For home builders, it’s all about the numbers. Their focus is on spreadsheets rather than sentiment, ensuring buyers are qualified and able to secure a loan. Prices are typically set based on inventory, though there might be some room for negotiation. For expert guidance and financing options, connect with Big Valley Mortgage, a trusted mortgage lender in Roseville, CA, to help you navigate the process.

Discounts may come in the form of upgrades rather than price reductions

If the project you’re interested in is nearing the end of its sales cycle and many homes are already sold, the builder might be more open to negotiating on upgrades like hardwood floors or premium appliances. Unlike price reductions, these upgrades don’t show up in public records, making them a discreet yet valuable benefit—potentially saving you thousands.

For many first time buyers, new construction can be an excellent choice, offering modern features and customization options. Explore financing options with Big Valley Mortgage, your trusted partner for first time home buyer loans and personalized solutions.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

VA Loans vs. Conventional Home Loans

Tue, 17 Jul 2018 19:04:19 GMT

Deciding between a VA loan or conventional home loans in Roseville may seem easy. No money down, no mortgage insurance, a better interest rate — a VA mortgage wins hands down, right?

But when you consider things like the VA funding fee and perhaps putting enough money down on a conventional mortgage to forgo mortgage insurance, the choice may be more complex. Some of the VA loan benefits, such as no minimum credit score and no maximum debt-to-income ratio, are often overstated.

Here are the factors to consider when deciding between a Department of Veterans Affairs mortgage and a conventional loan.

VA Loans vs. Conventional Loans

Property type

To start, the type of property you’re buying can be a primary factor in the VA-versus-conventional decision.

“The VA loan is for primary residence only,” says Donna Bradford, an assistant vice president of Navy Federal Credit Union. “Whereas a conventional loan can be used to purchase a primary [home], you can use it to purchase a second home — maybe a vacation home — or you can also use it to purchase an investment property, a rental property.”

Down payment

A major benefit of a VA loan is that no down payment is usually required. A mortgage lender may require money down if the purchase price of a property is higher than its current market value. That can happen in competitive housing markets with a multiple bid situation.

Lenders offering conventional loans have traditionally preferred larger down payments, but these days, it’s easy to find conventional mortgages available with down payments as low as 3% — or even lower.

Fees

Next, there is the matter of fees.

A VA-insured loan requires a funding fee to help defray the costs of loans that default. That’s a one-time upfront charge that’s between 1.25% and 3.3% of the loan amount, depending on your down payment, length and branch of military service, and whether you have used your VA loan benefit before. The fee is often rolled into the loan amount, which makes your payment higher and adds to the interest you pay over the life of the loan.

Veterans who receive VA disability compensation are exempt from having to pay the funding fee, according to the Veterans Affairs Department.

Mortgage insurance

If your down payment is less than 20%, a conventional loan will require private mortgage insurance, which protects the lender if you default on the loan. It can be a one-time charge paid at closing, an ongoing fee that’s built into your monthly payment, or a combination of both. That, and the amount you pay for PMI, varies with each lender. Depending on your credit score and the size of your down payment, PMI fees can range from 0.55% to 2.25% of the loan amount, according to Genworth and the Urban Institute.

VA loans don’t require mortgage insurance.

A down payment reduces but doesn’t eliminate the VA funding fee. However, with 20% down on a conventional loan (even less with some lenders — it’s 5% with Navy Federal, Bradford says) you won’t have to pay PMI.

Credit score standards

You may hear lenders — and the Department of Veterans Affairs — claim that VA-insured loans have no minimum credit score and no maximum debt-to-income ratio. That may be true as far as the VA is concerned, but not so much in the real-life world of lenders, according to Bradford.

“Most VA lenders use credit score benchmarks. That minimum will vary, but most VA-approved lenders are looking [for] at least 620,” she says.

In fact, the average FICO credit score for VA home purchase loans closed in 2016 was 707, according to mortgage industry software provider Ellie Mae. Conventional mortgages closed with an average 753 FICO score.

Debt-to-income ratios

VA marketing material says there is no maximum debt-to-income ratio, but it also says a “lender must provide compensating factors if the total debt ratio is over 41%.”

Greg Nelms, VA chief of loan policy, says those “compensating factors” include residual income. That’s the take-home income left at the end of the month after your new mortgage and all living expenses are paid.

Ellie Mae says the average debt ratio for VA purchase loans closed in 2016 was 40%. Conventional loans averaged a 34% debt ratio.

So yes, VA loans are easier to qualify for when it comes to debt and credit scores, but perhaps not as easy as VA promotional material may have you believe.

Mortgage rates

Another plus for the VA: It likely will have a lower interest rate than a conventional loan. For 30-year fixed-rate loans closing in 2016, VA loans had an average rate of 3.76%, compared with 4.06% on a conventional mortgage for the same term, according to Ellie Mae.

So, which mortgage?

“It comes to the point where it really is a personal decision,” Bradford says. You want to make a solid financial decision, as best you can, she adds.

Request a free quote on either a VA or Conventional Loan.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

6 Smart Strategies to Build Home Equity Over Time

Thu, 12 Jul 2018 19:04:02 GMT

Want to create wealth through homeownership? Build equity.

Home equity is the percentage of your home’s value that you own, and it’s key to building wealth through homeownership. Let’s take a closer look at how to build home equity without blowing your budget — and how to access it when you need it.

How much equity do you have?

Equity is easy to calculate when you first buy a home because it’s basically your down payment. For example, if you put $11,250 down on a $225,000 home, your down payment is 5 percent and so is your equity.

From 2016 to the first quarter of 2018, most first-time homebuyers in the U.S. started with about 7-percent equity, according to Inside Mortgage Finance. This is encouraging because it shows you don’t need to spend years saving for 20 percent down or more before you buy. Repeat home buyers started with more equity, at about 17 percent.

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How to build your equity

Here are six ways your home can create wealth for you. Some require time, money — or both. A lender can help you decide what works best for you.

1. Let your home appreciate

Building equity through appreciation can take little time or a lot, depending on the market. With home prices going up as they have in recent years, appreciation has been a boon for many homeowners.

Zillow’s research indicates that the median home value grew from $185,000 in April 2016 to $216,000 in April 2018. If you bought a home for $185,000 in April 2016 with a down payment of $12,950, your beginning 7-percent equity would have grown to 23 percent by April 2018.

We calculate this by subtracting your current loan balance ($165,600) from your home’s current value ($216,000). Then we divide the difference by your home’s current value. One-eighth of this additional 16 percent equity is from paying down your mortgage, and the rest is market appreciation.

If you waited two years and bought the same home in April 2018 with a 20-percent down payment of $43,200, you started off with 20-percent equity. You also used 3.3 times more cash to make the purchase. And here’s the kicker: Your total monthly housing cost would be the same — about $1,050 in both cases.

This example illustrates two things:

First, the power of home appreciation. It’s a lot like buying stock and benefitting as its value goes up. But there’s also a difference: While you’ll pay capital gains on rising stock value, you’re exempt from paying taxes on primary-home capital gains up to $250,000, or $500,000 for married couples.

Second, waiting to “save enough” isn’t the primary factor in determining if you can afford to buy a home. When it comes to qualifying for a loan, lenders do indeed look at your down payment. They’ll also want to know how much you’ll have in cash reserves after closing. But there are lots of options for low down payments that require minimal reserves.

Your monthly budget is the primary factor lenders consider when deciding whether you can afford a home. Lenders will allow you to spend between 43 percent and 49 percent of your income on monthly bills, which is actually on the high side and could strain your budget.

Since 2016, most first-time buyers have spent about 38 percent of their income on housing and other debt, which is a pretty safe cap for budgeting.

2. Make a larger down payment

You can do this but, as we’ve seen, waiting to save extra cash can go against your broader financial interests if you lose the chance to build equity through appreciation. Therefore, you must strike a balance among down payment, monthly budget and savings for other priorities. A good lender can provide rate and market insight to help you do this.

3. Use financial windfalls

Take advantage of work bonuses, family gifts and inheritances to pay down your mortgage. If you do pay down in lump sums, see if your lender will recalculate (or “recast”) your payment based on the new, lower balance.

4. Make biweekly payments

Make mortgage payments every two weeks instead of once a month. Over the course of a year, this will add up to 13 monthly payments instead of 12. You’ll build equity faster and shave five to six years off a 30-year mortgage. Just make sure your lender isn’t charging extra for processing semimonthly payments.

5. Cut your loan term in half

Take out a 15-year mortgage instead of a 30-year mortgage, and you’ll build equity twice as fast. Two caveats here: You’ll have a significantly higher monthly payment and, because of that, you may have a tougher time qualifying.

6. Make home improvements

New appliances or cosmetic features like paint are unlikely to increase value. Only big improvements like new kitchens, or additional bathrooms or other rooms will add meaningful value. Make sure the cost of such improvements will create the added value you’re looking for.

How to use your equity

You must borrow or sell your home to use your equity. The three most well-known ways to access your equity through borrowing are a home equity line of credit (HELOC), a home equity loan, or a cash-out refinance. Compare the pros and cons of each to determine which option best fits your financial goals. For expert guidance, connect with Big Valley Mortgage, a trusted mortgage company in Roseville, CA , to explore the best solution for your needs.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Conventional Loan vs FHA Loan

Tue, 10 Jul 2018 19:03:57 GMT

FHA loans are better suited for borrowers with lower credit scores since conventional loans have even lower down payment requirements than the FHA but tighter credit qualifications.

When exploring mortgage options, it’s likely you’ll hear about Federal Housing Administration and conventional loans. Let’s see, FHA loans are for first-time home buyers and conventional mortgages are for more established buyers — is that it?

Not necessarily.

Actually, the differences between FHA loans and conventional mortgages have narrowed in the past few years. Since 1934, loans guaranteed by the FHA have been a go-to option for first-time homebuyers because they feature low down payments and relaxed credit requirements.

But conventional loans — which are not insured by a government agency like the FHA, the Department of Veterans Affairs or the U.S. Department of Agriculture — have gotten more competitive lately.

Both types of loans have their advantages. Here are the factors to consider when deciding between an FHA and a conventional mortgage.

Down payment

This is where conventional loans have really improved. FHA loans used to be the low-down-payment leader, requiring just 3.5% down. But now, Fannie Mae and Freddie Mac both offer 97% loan-to-value products; that means a 3% down payment option — even lower than FHA — for qualified buyers.

From time to time, you can find lenders offering down payment options that are even lower on conventional loans.

Mortgage rates

Another distinction for FHA loans:

generally lower mortgage interest rates. However, the difference between the two was incremental last year. The 30-year fixed-rate for FHA purchase loans closed in 2016 averaged 3.95%, compared with a conventional mortgage rate on the same term of 4.06%, according to Ellie Mae.

Refinancing

As far as mortgage refinancing goes, the edge goes to FHA “streamline” refinancing. With no credit check, no income verification and likely no home appraisal, it’s about as easy a refi as you can get. But there are five requirements for an FHA streamline refinance.

Property standards

What kind of property are you buying? You can use a conventional loan to buy a vacation home or an investment property, as well as a primary residence.

The same can’t be said about FHA loans.

An FHA loan must be for a property that is occupied by at least one owner, as a primary residence, within 60 days of closing. Investment properties and homes that are being flipped (sold within 90 days of a prior sale) aren’t eligible for FHA loans.

FHA appraisals are more stringent, as well. Not only is the property assessed for value, but it is also thoroughly vetted for safety, soundness of construction and adherence to local code restrictions.

Loan limits

Where you’re planning to buy your home can play a role in what kind of loan is best for you. FHA and conventional loan guidelines allow wide latitude for borrowers in expensive areas, but in some cases, you may end up needing a jumbo loan, which is bigger than FHA or conventional limits.

FHA loans are subject to county-level limits based on a percentage of a county’s median home price. In certain high-cost areas, the limit in 2018 can be as high as $679,650 — and in Alaska, Guam, Hawaii, and the Virgin Islands, limits can be much higher than that.

For loans guaranteed by Fannie Mae and Freddie Mac, the government-sponsored companies that help fund the conventional mortgage industry, single-family home loan limits in 2018 are $453,100 in most of the country. Again, higher loan ceilings are available in pricier counties.

You can find your county’s loan limits for FHA (shown at the link as “FHA forward”) and conventional mortgages (“Fannie/Freddie”) on the Department of Housing and Urban Development website.

Mortgage insurance

With a down payment of less than 20%, both FHA and conventional loans require borrowers to pay mortgage insurance premiums. This insurance helps defray the lender’s costs if a loan defaults.

There are some differences between the two insurance programs.

With an FHA loan, if you put less than 10% down, you’ll pay 1.75% of the loan amount upfront and make monthly mortgage insurance payments for the life of the loan. With a down payment of 10% or more (that is, a loan-to-value of 90% or better), the premiums will end after 11 years.

Conventional loans with less than 20% down charge private mortgage insurance. It can be charged as an upfront expense payable at closing, or built into your monthly payment — or both. It all depends on the insurer the lender uses.

“The rates for PMI vary according to two factors: credit score and loan-to-value ratio,” Joe Parsons, a senior loan officer with PFS Funding in Dublin, California, says.

He provides the following examples:

A borrower with a 620 score with a 97% loan-to-value will pay 2.37%

The same loan for a borrower with a 760 score will cost 0.69%

A borrower with a 620 score and a 90% loan-to-value will pay 1.10%

The same loan for a borrower with a 760 score will cost 0.31%

PMI generally can be canceled once your loan is paid down (and/or your property’s value appreciates) to 78% of your home’s value.

Credit score standards

Here is the primary distinction between the two types of loans:

FHA loans are easier to qualify for. As far as a credit score, FHA sets a low bar: a FICO of 500 or above. Lenders can set “overlays” on top of that credit score requirement, hiking the minimum much higher.

But to qualify for the lowest FHA down payment of 3.5%, you’ll need a credit score of 580 or more, says Brian Sullivan, HUD public affairs specialist. With a credit score between 500 and 579, you’ll need to put down 10% on an FHA loan, he adds.

The average FICO score for FHA purchase loans closed in 2016 was 686, according to mortgage industry software provider Ellie Mae.

Conventional loans typically require a FICO credit score of 620 or better, Parsons says.

“A borrower with that score who can document income and assets will, in all likelihood, receive loan approval,” he says. “They will pay a higher price for that loan because of ‘risk-based pricing’ from Fannie Mae and Freddie Mac, but it is unlikely that they will be declined because of their credit score.”

Risk-based pricing means compensating the lender for taking the additional risk on a borrower with a lower credit score (the average FICO score for a conventional loan was 753 in 2016, according to Ellie Mae). In other words, the lower your credit score, the higher your mortgage interest rate.

Debt-to-income ratios

HUD’s Sullivan says your debt-to-income ratio — including the new mortgage, credit cards, student loans or any other monthly obligations — must be 50% or less for an FHA loan. Ellie Mae reports the average debt ratio for borrowers closing FHA purchase loans in 2016 was 42%.

Conventional loans usually require a debt-to-income ratio no higher than 45%, Parsons says. In 2016, borrowers with conventional purchase loans averaged a 34% debt ratio, according to Ellie Mae.

Foreclosures

Another instance where FHA and conventional standards have converged:

how bad credit is accounted for. Over the past few years, there have been numerous changes to the policies regarding bad-credit issues and how they are treated for FHA and conventional loans, with new standards implemented — and then expiring.

However, as it stands now, for a buyer to qualify for either an FHA or conventional loan, it typically must be two years since the bankruptcy was discharged and three years since a foreclosure or short sale.

There will definitely be hurdles to clear to prove to a lender that you have re-established your creditworthiness:

You’ll have to document that circumstances leading to the financial setback were beyond your control
You may have to attend a credit education course

Your loan will likely have to go through a manual loan approval process, which means approval and closing will likely take longer

So, which mortgage to choose?

Your decision may initially be based on your credit score. If it’s well below 620, an FHA loan may be your only choice. Above 620 and you’ll want to run the numbers on both to see what works best for you.

However, if you are serving in the military or are a veteran, a loan backed by the VA may be the way to go. VA loans usually require no down payment. And if you live in a suburban or rural area, a USDA loan could be a smart option, too.

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*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

The Counteroffer: Negotiating a Real Estate Deal

Thu, 05 Jul 2018 19:03:39 GMT

A lot can happen between an initial offer and closing day. Meet the counteroffer …

Buying a home is rarely as simple as making an offer and paying that offer out. Negotiations can go back and forth for weeks before the seller and buyer are both satisfied.

The vehicle for this negotiation is the counteroffer — a vital and complex rejection and counter to an offer made by either party. Counteroffers are typically handled between real estate agents and are time-sensitive.

Selling or buying a home is more of a process than a transaction, so it’s important to understand counteroffers before you make your first offer.

Why was I countered?

As a home buyer, if you make an offer below list price, the seller may choose to reject, accept or simply let the offer expire. If there are multiple offers, the listing agent will lay out the options for their client and then notify all buyers’ agents of the choices.

Sellers may also counter your proposed closing date. If they need to move out quickly, they may want to push it earlier. They may also ask to rent the property for a time after the settlement.

Price and closing date negotiations are common from both parties, but there are even more reasons sellers can potentially get countered.

The condition of the home is likely the biggest factor here. As home buyers conduct ongoing research into the home, any problems with the condition of the house can result in a counteroffer.

If you’ve chosen to take appliances with you when you move, buyers may also look to negotiate for those.

Appraisals are another reason for counteroffers. If an appraisal comes in below the agreed-upon sale price, it will affect the amount the mortgage company will lend to the buyer.

Negotiation power

When reviewing a counteroffer, it’s important to have an experienced real estate agent who can capitalize on your advantages in a negotiation. Both sellers and buyers can take steps to put themselves in an advantageous position through planning and smart counteroffers.

Knowledge is power in negotiations, so try to glean as much information about the seller or buyer as you can. Your agent will also seek information from the other agent on your behalf.

Sometimes sellers use the pending sale of their home to finance another, meaning they have a truncated timeline and could be more eager to make a deal. Similarly, buyers who have terminated a lease may be desperate for a place to live and more willing to negotiate.

If you’re selling a home with known issues, anticipate how these problems may put you at a disadvantage during negotiations. A leaky roof may not be discovered until after buyers order a home inspection. Depending on the cost, they may ask the seller to either fix the roof or deduct the cost of a new roof from the sale price.

These types of issues put sellers at a distinct disadvantage because they have to either pay for repairs, lower the selling price, or reject the counteroffer and hope the next buyer doesn’t notice or care about repairs.

This is why it’s worth the money (around $500) to pay for an inspection before listing a house. Preparation can save you headaches and money down the road.

Responding to a counteroffer

If you’ve received a counteroffer as a buyer or a seller, carefully review every aspect. Real estate agents, apart from yours, are under no obligation to ensure you read the full contract. So make sure you read everything carefully before you sign.

With each individual counteroffer, consider every aspect of the sale, including old and new information. If you made an offer above the list price, there is always the possibility for an appraisal to come in low.

If you are responding to a counteroffer before an appraisal or inspection, keep those at the forefront of your mind. Prepare yourself for future counteroffers once they are completed.

Whether you’re selling or buying a home, establish a baseline for when you will walk away from a sale. As a buyer, you don’t want to spend so much on a home that you move in with no cash for improvements and repairs. And as a seller, you should know how much you want to make off the sale.

With a measured and informed approach, counteroffers can be your friend. Communicate often with your agent to let them know what you want from the sale, and never be afraid to walk away if things go south.

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*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Find and Buy Your Next Home in 3 Simple Steps

Tue, 03 Jul 2018 19:03:26 GMT

Chances are you’ve considered buying a home — maybe you even attended a couple of open houses and ran the numbers. But once you get serious, there are a few points you need to consider before signing a contract and heading to your closing.

Buying a home takes more time and research than, say, buying a tablet or smartphone. Before diving in, it’s important to understand the process. Every home buyer’s journey happens on a slightly different timeline, but here are some steps every prospective buyer should take.

1. Search and discover

The home-buying process often occurs organically and may begin a year or more before the actual purchase. You’ll get started by viewing home listings online to discover what types of homes you can get in different price ranges.

Look at homes in your favorite neighborhoods, and review statistics and reports on home values. Use this time to dream about some of your favorite home features, and start to put together your list of priorities.

Most buyers will find a property during this phase that prompts them to move to the next stage.

2. Do the math and your required homework

Most would-be home buyers need a mortgage to purchase a home. While the process has gotten easier as we’ve moved farther away from the financial and lending crisis, it can still be challenging if you’re not prepared.

You need to know what you can afford, the types of loans available and how what you can afford will affect your home search. Pull your credit report, and understand your financial situation. Then you can get pre-approved.

Many buyers need to repair their credit score, save more money or allow cash to the season for some time before buying. Use the next few months to address any financial issues.

3. Dive in and have fun

At some point along the way, you should connect with a local real estate agent. These relationships form early, and having that person beside you during your search should be invaluable.

Go to open houses, make appointments and see as many homes as possible. Before making an offer, you’ll need to know the market inside and out. The more homes you see, the more you will know about your local real estate market, and the more confidence you will have when that dream house comes along.

And if you miss out on a deal or two, it’s okay. It’s all part of the process. Don’t feel rushed, and realize that the home search often becomes a part-time job. Have fun with it.

If you find yourself in the real estate market prior to doing significant research, you may be jumping the gun. Unlike a tablet, smartphone or even a car, a home is a long-term investment — and a special one at that. It’s where your life will happen. Move too quickly and buyer’s remorse can creep in.

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*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

5 Ways to Secure Better VA Home Loans in Roseville, CA

Fri, 29 Jun 2018 19:03:16 GMT

For service members, veterans, and their families, it’s hard to beat current VA loan rates.

VA loans are insured by the U.S. Department of Veterans Affairs and available to most vets, active-duty military, reservists, members of the National Guard and surviving spouses of deceased veterans.

Rates on VA loans are usually lower than conventional loan rates, but they can still vary by lender and your financial situation.

Follow these five tips to set yourself up for a great VA mortgage rate.

1. Work on your credit score before applying for a VA loan

Your credit score will play a big role in determining your VA mortgage rate. While it’s possible to qualify for a VA loan with less-than-perfect credit, rates tend to go down as your score goes up.

Before talking to lenders, look at your credit report and three-digit credit score. Incorrect information, maxed-out credit cards, and overdue bills could be dragging you down. But these credit problems can be remedied, and your patience and diligence will likely be rewarded with a better rate.

2. Get quotes from at least three VA mortgage lenders

Rates, fees, and services vary by lender, so the cost of a VA loan from one could be very different from the next. Compare quotes from at least three lenders to avoid paying too much.

When a potential mortgage lender provides a loan estimate, look for the interest rate as well as the annual percentage rate, or APR. The interest rate tells you how much the lender will add to your monthly payment for borrowing their money, while APR is the total price you’ll pay annually — interest plus fees. APR is often 0.20% to 0.25% higher than your interest rate. When comparing APRs, be sure to ask what fees are included.

Speaking of fees, pay close attention to closing costs, lender fees, and charges for things like an appraisal, credit check, and flood certification. Some lenders may waive these fees or charge less than others.

One non-negotiable fee to be aware of is the VA loan funding fee, which ranges from 1.25% to 3.3% depending on your military service, down payment amount and whether you’ve had a VA loan in the past. The VA funding fee affects the total cost of your loan, especially if it’s rolled into the mortgage rather than paid upfront.

3. Ask about state loan programs for veterans

VA loans are available nationwide, but your state may have additional military-focused loan programs to consider. If you meet eligibility requirements, these programs may offer rate discounts, down payment assistance, and other benefits.

For example, Maryland’s Homefront mortgage provides veterans with an interest rate discount of 0.25 percentage points, and the Ohio Housing Finance Agency offers a similar discount for all public servants.

When comparing VA mortgage rates, ask potential lenders if they participate in state loan programs and how to find out if you qualify.

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4. Consider making a down payment (or buying points)

It’s possible to get a VA loan without a down payment, but if you can afford to put down 5% or more, it could mean a lower interest rate and reduced VA funding fee — saving you thousands over the life of a loan. The state-level down payment assistance programs mentioned in tip No. 3 could help with this if you’ve struggled to save a down payment on your own.

Buying discount points is another way to get a lower rate on your VA loan. When you buy points, you pay a lump sum upfront in exchange for a lower rate.

Although buying points costs more initially, it could yield savings over time. A good rule of thumb is: Only buy points if you can afford it and plan to live in the home long enough to break even; otherwise, you may shell out for long-term savings that never materialize.

5. Choose the right loan for your needs

VA loans come in more than one flavor, including purchase, refinance, and mortgages for Native Americans and veterans with disabilities. Then, there are options within these loan types. You could choose a VA purchase loan with a 30- or 15-year fixed-rate, or a 5/1 adjustable rate, for example.

Shorter loans generally have lower interest rates but higher monthly payments. Consider shorter home loans in Roseville, CA , if you plan to live there for the full term and expect your income to remain stable. Adjustable-rate loans, or ARMs, start with lower monthly payments, but that could change if rates climb higher over time. An ARM might only make sense if you’re likely to move or refinance before the intro rate expires.

To recap:

HOW TO GET THE BEST VA MORTGAGE RATES

Check your credit for errors and debts that bring down your score.

Compare rates from at least three VA lenders and pay special attention to fees.

Ask about state mortgage programs that offer discounts for veterans.

Make a down payment, even if it isn’t required.

Choose the correct VA loan type for your needs.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

4 Surprising Things That May Boost Your Home’s Value

Thu, 28 Jun 2018 19:03:09 GMT

To understand how much your home is worth, you have to know what affects its value. The Zestimate home value is Zillow’s tool for extrapolating the real market value of your home, based on existing home-related data and actual sales prices in your area.

Thousands of data points correlate with home values and sale prices — some of which are obvious (like the condition of the home) and some that aren’t.

Here are several surprising things that can affect either the existing value of your home or the price someone is willing to pay for it, all based on data.

1. Proximity to a Starbucks

How far do you have to drive to get a Frappuccino? If the answer is “not that far,” you’re in luck.

A 2015 Zillow report found that, between 1997 and 2014, homes within a quarter-mile of a Starbucks increased in value by 96 percent, on average, compared to 65 percent for all U.S. homes, based on a comparison of Zillow Home Value Index data with a database of Starbucks locations.

To evaluate if this effect is isolated to Starbucks, the research team looked at another coffee hot spot (one with particular pull on the East Coast): Dunkin’ Donuts.

The data showed that homes near Dunkin’ Donuts locations appreciated 80 percent, on average, during the same 17-year period — not quite as high as homes near a Starbucks, but still significantly above the 65 percent increase in value for all U.S. homes.

2. Blue kitchens and blue bathrooms

Beyond America’s obsession with curb appeal, what’s inside your house counts a lot too — especially the colors you paint the rooms (particularly the kitchen).

According to Zillow’s 2017 Paint Color Analysis, which examined more than 32,000 photos from sold homes around the country, homes with blue kitchens sold for a $1,809 premium, compared to similar homes with white kitchens.

Blue is also a popular bathroom shade. The same analysis found that homes with pale blue to soft periwinkle-blue bathrooms sold for $5,440 more.

Walls painted in cool neutrals, like blue or gray, can signal that the home is well cared for or has other desirable features.

3. Trendy features

Joanna Gaines’ aesthetic is permeating more than just your YouTube search history. Zillow listings mentioning the shiplap queen’s favorite features — like barn doors and farmhouse sinks — sell faster and for a premium, according to a 2016 Zillow analysis of descriptions of more than 2 million homes sold nationwide.

Listings with “barn door” in the description sold for 13.4 percent more than expected — and 57 days faster than comparable homes without the keyword. Meanwhile, listings touting “farmhouse sink” led to a nearly 8 percent sales premium.

Sellers can use the listing descriptions to highlight trendy details and features that might not be noticeable in the photos.

4. How close you are to a city

If you own a home in a major American metropolitan area, you’re most likely sitting on a significant (and rapidly appreciating) financial asset. Case in point: Home values in the New York, NY, metro area are worth $2.6 trillion, per a recent Zillow analysis.

The average urban home is now worth 35 percent more than the average suburban home. Since 2012, the median home value in urban areas has increased by 54 percent, while the median home value in suburban areas is up just 38 percent.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

How To Survive Getting A Mortgage

brent.ross@apmortgage.com (Brent Ross) — Thu, 28 Jun 2018 19:02:59 GMT

The single greatest purchase you’ll ever make is likely going to be your home. The only other purchase or debt that’s comparable is probably your student loans. Buying your first home is a mix of extreme excitement and stress. The single greatest sticking point in buying a home is whether you’re going to be approved for a mortgage. It’s such an important factor that almost all home purchase contracts have a “hold harmless clause” in the contingency, where you fail to be approved for a mortgage in good faith. This means that you’ll have your deposit or good faith money returned.

It’s a common misconception that a “preapproval” is going to guarantee an approved mortgage or a mortgage rate. A preapproval is used primarily as a document to indicate your budget or the amount that you’re able to spend. The actual mortgage will require significantly more information provided to the bank or mortgage broker.

Information that you’ll need to be approved for a mortgage includes, but not limited to:

W2’s from a current or prior employer
Paycheck stubs or canceled checks may be used in lieu
Prior 2 year’s tax returns
List of debts or liabilities (this will appear in your credit history)
List of your assets
Credit report
Signed sales agreement
Proof of additional income, if applicable
Divorce documentation that illustrates that you’re legally divorced and its related separation agreement, if applicable
Bankruptcy documentation, if applicable

While this may suffice for anyone with a normal job or proof of employment. An entrepreneur is unfortunately stuck in the position where their “self-employment” is considered “unemployed.” Standard loan applications are heavily favored towards individuals with steady employment.

Entrepreneurs have a hard enough time renting an apartment without a “letter from a Certified Public Accountant”stating their reported income is “legitimate.” If renting is this difficult, you can imagine the hurdles you’ll need to run through buying your home.

Typically, an entrepreneur will need to provide monthly bank statements for a minimum of a year and a letter from a CPA stating their tax returns accurately reflect their income. If an entrepreneur has a “paper loss” or negative earned income due to depreciation and other non-cash deductions, then they must be explicitly explained to demonstrate their true earnings. Thus, an entrepreneur is in the unenviable position of trying to report more income to substantiate a loan, while minimizing their tax liabilities. Entrepreneurs will need to brace themselves for these questions that will assuredly come from a lender.

Assuming, you’ve providing everything above it’s possible that a bank or mortgage broker may request additional information to obtain an appropriate mortgage.

Is it better to use a bank or a mortgage broker? A bank is an individual institution that you’re applying with in order to obtain a mortgage. A mortgage broker allows you to apply to multiple lenders simultaneously. But, the information you’ll use for the application is going to be the same for either a bank or a mortgage broker. Effectively, a mortgage broker is able to do more of the legwork instead of you having to apply to each lender individually.

Typically, you’ll find that an effective mortgage broker will respond and turn around your application significantly faster, than a bank due to their large infrastructure. A Senior Executive at Heritage Mortgage Banking Corp. explains that “banks have moved towards focusing their efforts to target high net worth individuals or jumbo loans.” They’re using their lending practices to convince wealthy individuals to switch their banking institutions. Thus, their lending is being used as a conduit for them to increase their retail bank market penetration.

The increasing mortgage interest rate means that large banks are going to provide incentives to affluent home-buyers. But, middle-class home-buyers may be better off looking elsewhere for the most favorable deal. It’s important to spend the time and effort to obtain the most favorable rate possible at the time of your purchase. Refinancing is an option, but it may be a trap that’s giving you a false sense of confidence that you’ll be able to get a better rate any time after you buy your home. Refinancing is often expensive and cost-prohibitive unless you’re able to arbitrate a significant reduction in your interest rate. Do your homework and be a smart homeowner. The last thing anyone wants to be is underwater on your first home purchase.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

7 First-Time Home Buyer Programs

Tue, 19 Jun 2018 19:02:47 GMT

Buying a home is so hard, they should make it an Olympic event. It’s not just the paperwork; it’s the terminology, the fees and the number of people involved. It’s natural to want to agree to whatever, sign everything and just get through the process as fast as you can. But while that may make you a medalist in downhill skiing, it won’t earn you many style points in life’s uphill battle to financial well-being.

Here are some of the most useful first-time home buyer programs that you might overlook if you rush the process. They may score you some big savings.

FHA

This is the go-to program for many Americans, especially first-time home buyers and those who have a credit history that’s … let’s say shaky. The Federal Housing Administration guarantees a portion of home loans, which frees lenders to broaden their acceptance standards. With FHA backing, borrowers can qualify for loans with as little as 3.5% down.

FHA loans do have an up-front and ongoing additional cost built-in: mortgage insurance premiums. This protects the lender’s stake in the loan if you default.

USDA

This one may surprise you. The U.S. Department of Agriculture has a home buyers assistance program. And no, you don’t have to live on a farm. The program targets rural areas and allows 100% financing by offering lenders mortgage guarantees. There income limitations, which vary by region.

Good Neighbor Next Door

This initiative was originally called the Teacher Next Door Program but was expanded to include law enforcement, firefighters and emergency medical technicians, hence the snappy “Good Neighbor” name. A HUD-sponsored program, it allows 50% discounts on the list price of homes located in revitalization areas. Yes, half off. Who knew? You just have to commit to living in the property for at least 36 months. These homes are listed — for just seven days — on the Good Neighbor Next Door sales website.

Home upgrade programs

Here are a couple of programs that allow you to buy more home for your money.

The Energy Efficient Mortgage program extends your borrowing power when you buy a home with energy-saving improvements or upgrade a home’s green features. If you qualify for a home loan, you can add the EEM benefit to your regular mortgage. It doesn’t require a new appraisal or affect the amount of your down payment. The program simply allows your lender the flexibility to extend loan limits for energy efficiency improvements.

There are also HUD 203(k) loans, designed for buyers who want to tackle a fixer-upper. This special FHA-backed loan considers what the value of the property will be after improvements and allows you to borrow the funds to complete the project as part of your main mortgage.

These loan programs are designed for buyers who want to tackle a fixer-upper.

VA

The U.S. Department of Veterans Affairs helps service members, veterans, and surviving spouses buy homes. VA loans are especially generous, often requiring no down payment or mortgage insurance. But like a lot of military operations, the approval track is built for accuracy, not speed.

While the VA has only a few requirements for things like debt and sufficient income, VA lenders may add their own “overlays,” or additional requirements.

Dollar Homes

This sounds like one of those late-night television offers, but HUD claims to offer $1 homes that have been acquired by the FHA through foreclosures. Needless to say, this is a tiny pool of houses. At last check, only a handful of listings appeared on the website. Curiously, one home we checked out in the Dollar Home category seemed to be listed for $17,900. We’re not sure what that’s about but shop carefully.

Fannie and Freddie

They sound like classic ’70s rock bands, but Fannie Mae and Freddie Mac are the engines behind the home loan machine. These government-sanctioned companies work with local lenders to offer some appealing mortgage options, such as 3% down payments.

Even more help

In addition to these national programs, many state and local governments offer assistance to home buyers. The Department of Housing and Urban Development has links to additional information.

Tapping one of these resources may help you buy a home with less of down payment, lower your interest rate, or even find a bargain in your neighborhood. Then you can have your own opening ceremony in your new home.

Looking to purchase your first home?

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Buying Your First Home? Plan for These Hidden Costs

Mon, 04 Jun 2018 19:02:41 GMT

You’re excited because you just found the perfect home. The neighborhood is great, the house is charming and the price is right.

But if you’re a first-time home buyer, you might find out that the price is pretty far from perfect.

If you’re shopping for your first home, prepare for additional — and often unexpected — home-buying costs. They catch many home buyers unaware and can quickly leave you underwater on your new home.

Costs coming out of the woodwork

For almost every person who buys a home, the spending doesn’t stop with the down payment. Homeowners insurance and closing costs, like appraisal and lender fees, are typically easy to plan for because they’re lumped into the home-buying process, but most costs beyond those vary.

The previous owners of your home are the biggest factor affecting your move-in costs. If they take the refrigerator when they move out, you’ll have to buy one to replace it. The same goes for any large appliance.

And while these may seem like a small purchase compared to buying a home, appliances quickly add up — especially if you just spent most of your cash on a down payment.

You’ll also be on the hook for any immediate improvements the home needs, unless you negotiate them as part of your home purchase agreement.

Unfortunately, these costs are the least hidden of those you may encounter.

When purchasing a home, definitely hire a home inspector (this costs money too!) to ensure the home isn’t going to collapse the next time it rains. Inspectors look for bad electrical wiring, weak foundations, wood rot and other hidden problems you may not find on your own.

Worse still, these problems are rarely covered by home insurance. If an inspector discovers a serious problem, you’ll then have to decide if you still want to purchase the home. Either way, you’ll be out the cost of hiring the inspector.

Looking to buy your first home soon? Take the first step.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

FHA Mortgage Insurance

Wed, 30 May 2018 19:02:20 GMT

When deciding between an FHA mortgage and a conventional mortgage, the most important difference is arguably the mortgage insurance that the Federal Housing Administration requires. This insurance typically can’t be canceled and comes with both an annual premium and an upfront premium that you’ll need to factor into your homebuying budget.

Despite these insurance-related drawbacks, an FHA loan may be the only option for borrowers who can’t qualify for a conventional loan due to a low credit score or a lack of savings — especially since down payments as low as 3.5% are permitted.

If you’re considering an FHA loan, here’s what you should know about FHA mortgage insurance.

What is FHA mortgage insurance?

“Mortgage insurance is essentially a policy that protects lenders and servicers against losses resulting from defaults,” says Jim Hettinger, executive vice president of operations at Guaranteed Rate, an online mortgage lender. Most mortgage loans require mortgage insurance only if the borrower is putting down less than 20% of the purchase price, he says, but the FHA requires it for all loans.

If an FHA loan is ideal for your financial situation, the mortgage insurance premium is something you’re likely just going to have to live with, says Keith Gumbinger, vice president of HSH.com, a mortgage information website. “If you want a low-down-payment mortgage that doesn’t penalize you for having a lower credit score, the mortgage insurance premium is a fact of life,” he says.

How much does it cost?

When you take out an FHA mortgage, you must pay an upfront premium of 1.75% of the loan amount, according to the FHA. You can pay that premium at closing, or you can roll it into your loan amount. The latter will result in a more expensive loan.

In addition to this upfront premium, you’ll also pay an annual premium that is added to your monthly mortgage payments. Depending on your loan’s size and term, this expense ranges from 0.45% to 1.05% of the loan amount.

Take, for example, a $200,000 home. Say you put down $7,000, which is 3.5%, the lowest permitted for an FHA loan. The 1.75% upfront premium on your $193,000 loan would cost $3,377.50. If your annual premium was the highest amount, 1.05%, you’d pay $2,026.50 per year, or roughly $169 per month.

How to cancel FHA mortgage insurance

If you put 10% or more down on your FHA loan, your mortgage insurance premium will end after 11 years. If your FHA loan was made before June 2013, you may be able to cancel your mortgage insurance depending on your loan’s original term or loan-to-value ratio. Contact your lender to see if you qualify.

If you don’t fall into either of these categories, there’s something else you can do: refinance into a conventional loan once your LTV ratio is lower or you’ve bolstered your credit score, Hettinger says. The loan-to-value ratio represents the amount of the loan compared with the value of the asset. For example, if you put 20% down on a home that costs $100,000, your LTV is 80%.

If refinancing isn’t an option, there’s still reason to keep hope alive, Gumbinger says. “The FHA commissioner has wide discretion to change premiums and has a number of times in the past 10 years,” he explains. He says that borrowers might be able to cancel FHA mortgage insurance in the future or that annual premiums might be reduced. A quarter-percentage-point reduction of the premium was scheduled to take place in late January 2017, but it was suspended by the incoming Trump administration before it took effect.

Paying FHA mortgage insurance can be a pain, especially if you’re stuck with it for the life of the loan. But this ongoing expense could be worthwhile for those who want to own a home and can’t qualify for a conventional mortgage.

Article Source: https://www.nerdwallet.com/article/fha-mortgage-insurance

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

3 Weird Things You Can Ignore When Home Shopping

Wed, 23 May 2018 19:02:14 GMT

In 15 years of real estate, I can honestly say that I’ve seen it all. Toilet seats up in listing photos, shag carpet covered with dog hair, bedrooms doubling as marijuana growing centers, and avocado green appliances from the ’70s.

Sellers aren’t required to get their homes in their best condition before showing them — let alone cleaning their home before listing. But one seller’s laziness can spell a giant upside for the right buyer.

Here are three sights that may be off-putting when you’re shopping for a home, but shouldn’t stop you from considering making an offer — particularly if you love the home, layout or location.

Odd wallpaper and dirty carpet

Today’s buyers generally prefer a home that’s turn-key or move-in ready. They’re too busy with their day-to-day lives to take on a renovation — and this is especially true for the continuously connected, mobile-ready millennial home buyer.

But painting walls and replacing carpets isn’t always time-consuming or expensive, and you can do these projects before moving in.

If a seller won’t replace their shag carpet or paint the interior a neutral color, they’re shooting themselves in the foot.

A fresh coat of paint and finished floors or new carpet won’t break the bank or take more than a week, and the end product will be a like-new home for you to move into.

Rooms being strangely used

It’s not uncommon to see a home’s dining room transformed into a full-fledged office. Some homeowners even have a bedroom doubling as a walk-in closet. I once saw a first-floor bedroom turned into a wine-tasting room.

Just because the homeowner uses these spaces in a way that suits them, doesn’t mean you have to. These rooms might stand out as odd to you, but try to forget that the seller lives there.

Once they’ve moved out, the dining room will be a space that just needs a great light fixture and table. The walk-in closet can be turned back into a bedroom in less than a day.

A too-strong seller presence

It’s difficult for a buyer to imagine themselves in a home if it’s full of the seller’s photos, diplomas and other personal belongings. The best homes for buyers are those that are neutral and lacking any items specific to the owner.

What’s worse is when the seller is present at a showing. It makes everyone uncomfortable. The buyers feel like they need to be on their best behavior and can’t explore the house, dig deep into closets or cabinets, or feel free to talk out loud about what they see.

A home that is too personalized or where the seller is always present can sit on the market and get a bad reputation over time. A smart buyer will use that to their advantage and snag it below the asking price

Sellers who sabotage their home sale — whether intentionally or not — leave money on the table for the buyer. But typical consumers today have a hard time seeing through a seller’s mess, personalized design style or custom changes.

If you see a home online that’s in a great location with a floor plan that’s ideal, go see it. Ignore the things you can change, and think about whether you can make the home your own.

Article Source: https://www.zillow.com/blog/weird-things-home-shopping-200991/

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

What It Costs to Buy a Home

Fri, 18 May 2018 19:02:01 GMT

It would be nice if houses for sale came with giant price tags so a buyer could easily compare “all-in” costs. Imagine trying to buy a gallon of milk and having to separately compute what it costs to feed the cow, distribute the inventory and stock the shelves. Let’s bottom-line your homeownership costs, from one-time move-in fees to ongoing monthly expenses.

First: Make sure the time is right

If you’ve decided homeownership is right for you, you’ll need to convince a lender of that, too. That means your credit is in good shape, you’re not struggling with a boatload of debt and you have a sizeable cash cushion for the expenses you’ll face.

Lenders are looking at a variety of metrics to determine if you’re a suitable risk for a six-figure home loan. How much you owe compared to how much you earn (lenders call this your “debt to income ratio”) plays a major role in the approval process. The down payment does, too. If you can’t make the standard 20% down payment, you may be able to get a loan with less money upfront — but then face an increased cost of borrowing and higher monthly payments.

One-time costs

Down payment (the biggest hurdle to clear): The down payment always looms large in our efforts to buy a home. You can figure 20% of the purchase price as a good starting point; however, you may have additional options. Some lenders offer loans guaranteed by the FHA or VA, with down payments as low as 3% to 5%, but you’ll usually have a private mortgage insurance premium added to your monthly payment.

What it takes to seal the deal: When all the terms have been finalized, it will come time to sign a small mountain of paperwork. This is when it really does pay to read the fine print, ask questions and know what you’re signing. Not only will the ink be flowing at closing, but so will the money — from your pocket to theirs.

You will have received an official Loan Estimate on these closing costs ahead of time — and had time to negotiate and shop around for lower fees on some of them — so there should be no surprises. (The estimate allows you to make an apples-to-apples comparison of what you would actually pay, because variation in fees can make interest rates deceiving.)

Ongoing expenses

The mortgage: Unfortunately, nearly half of us don’t comparison shop for our home loans, according to the Consumer Finance Protection Bureau. That can cost us a big chunk of money over time. In fact, the bureau says that by shopping for rates with just three lenders, homebuyers are more likely to find a lower rate.

Let’s say you’re looking at buying a $300,000 home and putting 20% down. Reducing your interest rate by only half of a percentage point would mean saving $70 per month on a $240,000, 30-year fixed mortgage. That’s more than $4,000 in just the first five years.

Don’t let the monthly payment surprise you: Online mortgage calculators can be a bit misleading. Your monthly mortgage note contains principal and interest payments but often much more than that. An escrow account may be established to set aside a portion of each monthly payment to cover property taxes, insurance and other annual fees. Depending on the size of your loan, these charges can add hundreds of dollars to your note.

Sellers will usually disclose property taxes in the home’s listing information, or you can obtain them from your local property tax assessor.

Day-to-day, and rainy days, too: Once you’ve crossed the homebuying finish line, you might think you’re clear of the financial hurdles. And for the most part, you are. But there are utilities to pay, perhaps homeowner association fees, maintenance — such as yard care and snow blowing — and the occasional plumbing debacle. Some of these ongoing expenses you can budget for; the surprises, not so much.

You know that emergency fund that financial advisors suggest we all have? You might want to pad it a bit with a home ownership “rainy day” fund. That’s for those little-to-large expenses that insurance won’t cover, such as the water heater that springs a leak in the middle of the night.

Having some money set aside for unexpected household expenditures will help keep you from tapping into your last-resort emergency savings — or taking on credit card debt. Consider stowing $500 to $1,000 in savings as your household repair fund.

The price is right

Using a mortgage comparison worksheet can help you nerd the numbers. The form may seem a bit overwhelming at first, but by taking it one step at a time, you’ll reveal the real cost of homeownership. Sellers might not be able to smack a big “Buy It Now” sticker on the front of the home you love, but by considering all of the upfront and ongoing expenses, you’ll be able to make a smart move to your new address.

Article Source: https://www.nerdwallet.com/blog/mortgages/costs-buy-home/

Please visit our Disclosures page for more details for all loan types.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Home Buying: 10 Steps to Success

Wed, 09 May 2018 19:01:50 GMT

You’ve crunched the numbers, thought about your lifestyle and made the decision to buy a home. It can be a complicated, stressful process. But knowing what to expect can reduce some of that anxiety and help you confidently find your way to your new home.

To help, here’s a step-by-step guide to the home-buying process. You could swap the order of a few early steps – you can get pre-approved before finding an agent, for example. But you don’t want to find the perfect place first, only to have a better-prepared buyer swoop in and snag it.

Step 1: Check your credit report and score

Before contacting a lender, it’s smart to check your credit report. By law, you can get a free report once a year through Annualcreditreport.com. The report pulls data from the three major credit-reporting agencies: Equifax, TransUnion and Experian. Having the information in hand before you talk with a lender lets you dispute any errors in the reporting. Based on your credit report, Fair Isaac & Co. (FICO) assigns you a credit score ranging from 350 to 850. The higher your credit score, the lower the interest rate on your mortgage. Scores are based on:

Payment history: Have you paid your bills on time?
Amounts owed: What is your overall debt?
Length of credit history: How long have you been borrowing money? Mortgage lenders like to see a long credit history.
New credit: Have you applied for new credit?
Types of credit: Lenders like to see a variety of types such as bank cards, car loans and student loans.

So what is a good credit score? You can expect a good mortgage rate at anything above 720. Home buyers who pursue an FHA loan can usually secure a loan if their credit is 580 or over. FICO scores are available at www.myfico.com for a one-time or monthly fee. Once you know your score, you can find out what interest rate you will likely qualify for by researching interest rates on Zillow.

Step 2: Figure out how much you can afford

Or better yet, decide how much you’re willing to pay. Just because you can qualify for a larger mortgage doesn’t mean you want to have that kind of payment each month. Use the mortgage affordability calculator to help determine what you can afford. Now is also a good time to research your housing market and start going to open houses in your prospective neighborhood to give you a good sense of what your money will get you.

Step 3: Find a real estate agent

This person will be your lifeline through the process. Not so long ago, people didn’t have much to go on when selecting an agent. A postcard in the mail or a name on a sign might have been all you had to consider if you didn’t have a personal referral. But now it’s a breeze to check reviews online. Go ahead and meet with a few agents and ask some questions. Your agent is your chief advocate, confidante and hand-holder in the process so you want to find a good fit.

Step 4: Get pre-approved by a lender

It’s a smart move to get pre-approved for a loan early in your home search. Zillow has an easy-to-use tool that lets you find a licensed lender in your area with a history of positive customer ratings, who can help you get pre-approved.

Pre-approval requires the lender to pull the credit information (see Step 1) and asses your financial situation. The lender will then give you a letter that states the amount they would be willing to lend you. If you get in a multiple-offer scenario, being pre-approved may give you an edge because the seller will have more confidence that you will be approved for a loan large enough to purchase their home.

You are not obligated to get a loan from the lender who you get a mortgage pre-approval from. When it’s time to officially apply for a mortgage, it’s best to get loan estimates from at least three lenders to compare their interest rates and fees.

Step 5: Start looking at homes

Let the serious shopping begin! By now you’ve talked things over with your agent and you both know what you really want and need in a home. Armed with this, your price range and knowledge of the local area, look at listings online and with your agent, who will come up with properties for you to tour. Chances are you’ll discover some new things to love or hate about homes and refine your search.

Step 6: Make an offer

For most buyers, this is when the butterflies really show up. Once you’ve found a home you want your agent will work with you to craft an offer. Remember, the listing price is only a starting point. Your agent will understand the market and help guide you to make the most attractive offer, whether it’s below, at or above listing price. Are there any contingencies to your offer? Will you require an inspection? These are all things your agent will help you with. Once you’ve submitted the offer you get to wait. It will seem interminable. You may get neither a simple yes or no but a counteroffer to consider. It can be something of a dance. If you get a solid “no,” it’s back to Step 5. If you get to a “yes,” celebrate!

Step 7: Home inspection day

If your offer called for a home inspection, this is a big day. Sure, you get to have a home inspector look over the home to make sure there are no unseen defects you want to negotiate to have fixed. But more importantly, this is the most time you’ll get to spend in your new home until closing. Go ahead and start measuring things and figuring out what goes where. This may be the last time you are inside the home until it is yours, several weeks from now.

Step 8: Get insurance and establish utilities

If you already own a home, simply call your insurance agent and let them know you’re buying a new home. They will handle writing a new policy. If you don’t have an insurance agent, now’s the time to find one because your lender will require homeowners insurance. Even if you don’t have a mortgage, insurance is a critical part of protecting your investment. You’ll also want to give utility companies your move-in date to establish service. There’s nothing like moving into a cold, dark house because you didn’t get an account with the power company!

Step 9: Closing day

This is the big day. You’ll sign read and sign papers and then read and sign some more. Even though you’re just sitting around a table, it can be exhausting. But it also means you’re nearing the finish line.

Step 10: Get the keys and move in!

This is it. You did it. You are now a homeowner! Your sale contract will specify exactly how soon you get to move in. Sometimes it’s by a certain time on the day you sign closing papers. Sometimes possession happens a few days after closing. Whenever it is, you’ve just ended the adventure of home buying and started the adventure of homeownership.

Article Source: https://www.zillow.com/home-buying-guide/10-steps-to-buying-a-home/

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

How to Choose the Right Mortgage

Thu, 03 May 2018 19:01:37 GMT

Buying a home is probably the largest purchase you’ll make in your lifetime. And choosing the right type of mortgage loan is one of the most important decisions you’ll make in the homebuying process. With so many different options out there, it can be hard to find an affordable home loan that meets your financial goals.

Start by asking yourself “How much house can I afford?” After taking inventory of your debts, credit score, income and other monthly bills, you can make an informed decision about the terms of your mortgage.

Here are three key loan decisions you’ll need to make. Read more below.

Mortgage type: Government-backed or conventional

There are two main types of mortgages: a conventional loan guaranteed by a private lender or banking institution, or a government-backed loan.

Most government-backed mortgages come in one of three forms:

FHA loans, insured by the Federal Housing Administration, were established to make homebuying more affordable, especially for first-time buyers, by allowing down payments as low as 3.5% of the purchase price.

VA loans are insured by the Department of Veterans Affairs and offer buyers low- or no down payment options and competitive mortgage rates. They’re available to current military service members and veterans only.

USDA loans are backed by the U.S. Department of Agriculture and are geared toward rural property buyers who meet income requirements.

All three programs follow the limits for conforming loans and have low down payment requirements. More on that later.

Conventional loans, on the other hand, are offered and backed by private entities such as banks, credit unions, private lenders or savings institutions. Borrowers need good credit to qualify. This is because the loans aren’t guaranteed by an outside source — so the possibility of borrower default poses a greater risk for lenders.

Conventional loans have terms of 10, 15, 20 or 30 years. They also require much larger down payments than government-backed loans. Borrowers are expected to put down at least 5%, but that amount can vary based on the lender and the borrower’s credit history.

If you don’t have a lot of cash saved up for a down payment but have solid credit and a stable income, a government-backed loan is likely the way to go. Keep in mind that if you choose a conventional or government-backed loan and you’re making less than a 20% down payment, you’ll have to pay for private mortgage insurance.

If you can afford to save up a large down payment and build your credit score while lowering your debt-to-income ratio, a conventional loan is a great choice that can eliminate some of the extra fees and higher interest rates that may come with a government-backed loan.

Interest rate: Fixed or adjustable

Once you’ve chosen your loan, you’ll decide whether you want a fixed or an adjustable rate. Your choice determines the interest you’ll be charged.

The interest rate on a fixed-rate loan never changes. If you’re settled in your career, have a growing family and are ready to set down some roots, a 15- or 30-year fixed-rate loan might be your best bet, because you’ll always know what your monthly mortgage payment will be. It’s worth noting, though, that if other fees are rolled into your monthly mortgage payment, such as annual property taxes or homeowner’s association dues, there may be some fluctuation over time.

Adjustable-rate mortgages, or ARMs, have interest rates that reset at specific intervals. They typically begin with lower interest rates than fixed-rate loans, sometimes called teaser rates. After the initial term ends, the interest rate — and your monthly payment — increases or decreases annually based on an index, plus a margin. They most often appeal to younger, more mobile buyers who plan to stay in their homes for just a few years or refinance when the teaser rate is about to end. Paying a lower interest rate in those initial years could save hundreds of dollars each month that could fund other investments.

Loan size: Conforming or non-conforming

The amount of money you borrow tells your lender a lot about your level of risk — and it has a big impact on your interest rate. For this reason, home loans fall into two main size categories: conforming and non-conforming.

Conforming loans meet the loan limit guidelines set by government-sponsored mortgage associations Fannie Mae and Freddie Mac. In 2018, conforming home loans for single-family homes in most of the continental U.S. are limited to $453,100. In designated high-cost areas, such as Hawaii and Alaska, the conforming loan limit for single-family homes goes up to $679,650.

Loans can be non-conforming for a few different reasons. Some, called jumbo loans, are for borrowers whose loan amounts are higher than the conforming loan limits in their areas. Jumbo loans are considered riskier and come with higher interest rates to protect lenders. You’ll need to make a larger down payment (at least 20%) and have pristine credit to qualify for one. Other types of non-conforming loans include those made to borrowers with poor credit, high debt or recent bankruptcies.

If you want to stay within conforming loan limits so you get a lower interest rate, you’ll need to tailor your home search to properties priced below the loan limit for your area. If you want a house that’s priced above your local limit, you can still qualify for a conforming loan if you have a big enough down payment to bring the loan amount down below the limit.

The bottom line

All of these options might seem overwhelming at first glance. But bear in mind that the type of loan you wind up getting will depend largely on your credit profile, income and overall financial goals. Before you start shopping for a home loan, take complete stock of your finances and try to boost your credit score as much as possible.

Article Source: https://www.nerdwallet.com/blog/mortgages/how-to-choose-the-best-mortgage/?trk=mortgagesb_vasb

Please visit our Disclosures page for more details for all loan types.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Fact or Fiction with These Credit Score Myths

Fri, 27 Apr 2018 19:01:32 GMT

A polished home exterior makes for an inviting experience for any visitor or passersby, which is especially important if your home is on the market.

All sellers should focus on exterior home improvements, says Tallahassee-based realtor Joe Manausa of Joe Manausa Real Estate. “Buyers are searching for homes online, and the exterior picture of your home will be the most likely culprit for somebody to reject your home,” he notes.

Check out our tips to get the most curb appeal for the lowest cost — while turning your neighbors’ heads and getting prospective buyers to your door.

Clean up

Sometimes the most obvious way to enhance curb appeal is simply dedicating a weekend to deep cleaning the exterior of your home.

Sure, you’ll want to trim bushes, sweep, and mow your lawn, but there’s so much more to curb appeal than keeping a tidy front yard. Turn the nozzle on your garden hose to the strongest setting and clean off your driveway, sidewalk, windows, and fence.

If dirt and grime is really caked on your home’s exterior, you can rent a power washer for around $50 to $75 a day — but steer clear of any area with caulking, like windows and doors, as you can strip some of the sealing. And as tempting as it may be to power wash your roof, you may want to hold off to avoid damaging the shingles’ coating.

Spraying off your windows with a garden hose isn’t enough to make them spic and span, however. For maximum sparkle, clean your windows outside and inside. Instead of relying on a glass cleaner, try a mix of detergent diluted in warm water.

Add shutters

An easy way to accentuate the size of your windows is to add shutters. Not only does it make your windows look larger, but it adds visual interest by disrupting a bland exterior wall. Choose a color that contrasts with the color of your home to make it pop for maximum curb appeal.

Paint accent areas

Paint is a quick and easy curb appeal-booster. Instead of painting the entire exterior of your home, focus your attention on the trim, door, and shutters.

You can typically find a gallon of exterior paint for $20 to $30 a gallon. But before slapping on that paint, consider exterior color scheme trends, while keeping in mind your home’s natural style.

Give your door a face lift

If you’re not in love with your front door, you don’t need to dish out loads of money to replace it. Think beyond paint and consider also adding molding, which offers a decorative frame for your door, welcoming visitors while serving as a grand entrance.

You can also glam up your door by adding metal house numbers, which you can find for as low as $5 a number. Manausa also suggests adding a wreath or seasonal decorations to your door as a bonus.

Replace your house numbers

If you’d rather not add house numbers to your freshly painted door, here are some alternative DIY ideas:

Paint a terra-cotta planter with your house number and place it by your doorstep.
Add house numbers to a post planter near your front porch.
Make use of your front porch stair riser’s real estate by hanging or painting numbers there.

Update your light fixtures

Replacing your exterior light fixtures is another curb appeal must. You can usually find outdoor sconces for around $20 at home centers. Just make sure your new light fixtures have the same mounting system. And if you want to save on lighting, a fresh finish can do wonders. Try spray-painting them — a can of spray paint costs around $10.

Be deliberate about porch furniture

Manausa advises homeowners to limit their use of personal decor and furniture. Just as you would aim to simplify the interior of your home when your house is on the market, the exterior of your home should allow prospective buyers to envision their style in the space.

“Porch furniture and decor, if its appearance is attractive, should be used to give a potential buyer the possibilities of using the outdoor space – but it should be minimal,” says Manausa. “Outdoor pillows and cushions are an easy way to give color and life to furniture.”

So put your pink flamingo and wind chime collection into storage and focus on porch decor that offer pops of color and character. You can find brightly colored outdoor chairs for $20 to $30 each.

Quick changes

If our favorite tips to upping your home’s curb appeal leave you wanting more, be sure to attempt these bonus ideas for the ultimate curb appeal style on the block:

Upgrade your mailbox. Install a new mailbox for under $100, or spray paint your existing mailbox. Plant a tree. Make sure you know how large the tree will grow first, but planting a tree adds to your curb appeal for as low as $20.

Build a tree bench. Already have a tree you love in your front yard? Build a wraparound tree bench. Great for napping, picnicking, or just hiding exposed roots, a tree bench will just cost what you spend on boards and screws.

Install flower boxes. For around $20 each, flower boxes are a quick way to add some life and color to your house windows. If you don’t want to worry about installing flower boxes, try out a container garden in pots by your front porch.

Hide eyesores. Place a small lattice fence or side of paneling around your air conditioner to avoid an appliance eyesore, and hide your trash bins behind a small fence or by building a garbage can shed. You can also hide your hose in a pot or storage bench.

Article Source: https://www.zillow.com/blog/budget-friendly-curb-appeal-194022/

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Budget-Friendly Curb Appeal Boosters

Tue, 17 Apr 2018 19:01:22 GMT

A polished home exterior makes for an inviting experience for any visitor or passersby, which is especially important if your home is on the market.

Check out our tips to get the most curb appeal for the lowest cost — while turning your neighbors’ heads and getting prospective buyers to your door.

Clean up

Sometimes the most obvious way to enhance curb appeal is simply dedicating a weekend to deep cleaning the exterior of your home.

Add shutters

Paint accent areas

Paint is a quick and easy curb appeal-booster. Instead of painting the entire exterior of your home, focus your attention on the trim, door, and shutters.

You can typically find a gallon of exterior paint for $20 to $30 a gallon. But before slapping on that paint, consider exterior color scheme trends, while keeping in mind your home’s natural style.

Give your door a face lift

You can also glam up your door by adding metal house numbers, which you can find for as low as $5 a number. Manausa also suggests adding a wreath or seasonal decorations to your door as a bonus.

Replace your house numbers

If you’d rather not add house numbers to your freshly painted door, here are some alternative DIY ideas:

Paint a terra-cotta planter with your house number and place it by your doorstep.
Add house numbers to a post planter near your front porch.
Make use of your front porch stair riser’s real estate by hanging or painting numbers there.

Update your light fixtures

Be deliberate about porch furniture

So put your pink flamingo and wind chime collection into storage and focus on porch decor that offer pops of color and character. You can find brightly colored outdoor chairs for $20 to $30 each.

Quick changes

If our favorite tips to upping your home’s curb appeal leave you wanting more, be sure to attempt these bonus ideas for the ultimate curb appeal style on the block:

Article Source: https://www.zillow.com/blog/budget-friendly-curb-appeal-194022/

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

How to Get Rid of Private Mortgage Insurance

Mon, 16 Apr 2018 19:00:52 GMT

If you have private mortgage insurance, you’re probably looking forward to the day when it ends, sweetly reducing your mortgage payment. Here’s good news: While PMI eventually is canceled automatically, there are several things you can do to make that day arrive faster.

You pay for PMI, but it protects your lender, not you, against the risk that you’ll stop making your mortgage payments. You aren’t the only one paying for it; about 13% of all mortgages in the U.S. have PMI. On average, homeowners with PMI make payments for 5 1/2 years before the insurance ends, according to U.S. Mortgage Insurers, a Washington D.C.-based industry group.

PMI is the only type of lender protection that you can escape. Department of Veterans Affairs mortgage funding fees can’t be canceled. Neither can Federal Housing Administration mortgage insurance premiums, which are paid to the government. Lender-paid mortgage insurance is paid in full when the loan is issued, and the borrower repays it through a higher interest rate. With all of those, you must sell or refinance to get clear.

Homeowners with PMI have six options for getting rid of it.

1. Wait for automatic cancellation

You don’t have to do a thing. Eventually, your mortgage insurance will fall away. Your lender is required to cancel your PMI when either of these things happens:

Your mortgage reaches 78% loan to value. The federal Homeowners Protection Act of 1998 requires lenders to terminate PMI, free of charge, at that loan to value ratio. To find your LTV, divide the loan balance by the original purchase price or calculate it here. For example, with a balance of $250,000 and a purchase price of $320,000, the LTV is 0.78, or 78%.)

The mortgage hits the halfway point. Regardless of your LTV, your lender terminates your PMI automatically when the mortgage is halfway finished — in year 15 of a 30-year mortgage, for instance. That could happen before the lender’s equity reaches 78% if your mortgage has a balloon payment, an interest-only period or principal forbearance.

Lindsey Johnson, executive director of U.S. Mortgage Insurers, an industry group representing large insurers, tells borrowers to request a written copy of their PMI cancellation schedule and their lender’s requirements. Call the number on your monthly mortgage statement and do it now, she says, long before you need it. That way you’ll know when your payments are supposed to stop and can watch your progress.

2. Request early cancellation

You can save money by acting to remove PMI sooner. “When your mortgage balance reaches 80% of your home’s original value — the lesser of the sales price or the appraised price at origination — your mortgage servicer must cancel [PMI] at your written request,” says Marc Zinner, vice president of commercial operations at Genworth, one of the largest private mortgage insurance companies.

Use your PMI schedule, which is based on your home’s original value, to track your progress. Make a written request to your lender several months before the mortgage is scheduled to hit 80% loan to value and get the process moving.

To make the case for early cancellation you’ll also need:

A good payment history. The rule is no payments 30 days late in the past 12 months and no 60-day late payments in the previous 24 months. Timely payments count when it comes to getting rid of PMI. Late payments can put you in a high-risk category, making it harder to cancel.

No other liens. Your mortgage must be the home’s only debt, including second mortgages, home equity loans and lines of credit.

Proof of value. An appraisal, at your expense, to prove the home’s value hasn’t fallen. Certain lenders accept a broker price opinion instead.

3. Get a new appraisal

If property values are rising where you live, you can request early cancellation based on the home’s current value. You’ll probably need a new appraisal for that.

Before spending $300 to $500 on an appraiser, check your lender’s rules. Some lenders require borrowers to use certain appraisers. Others accept a broker price opinion, a quicker process costing about half or less of an appraiser’s fee.

Here’s a caveat: To cancel based on current value, you must have owned the home for at least two years and have 75% LTV. If you’ve owned the home for at least five years, you can cancel at 80% LTV.

4. Boost value with home improvements

Depending on your market, you may be able to boost your home’s value with a well-chosen remodeling project. Remodeling Magazine says projects that enhance curb appeal, like upgraded siding, doors and windows, add the most value for the money spent.

5. Refinance your mortgage

Refinancing might also let you escape PMI, but make sure the premium payments you avoid are greater than your refinancing costs (use this calculator to decide).

6. Sell your home

The last resort when it comes to ditching PMI is to sell the home. It’s unlikely you’ll want to or need to, however, given the range of other choices.

Know your rights

Occasionally, borrowers and lenders knock heads over canceling PMI. If you run into insurmountable obstacles when trying to cancel, complain to the Consumer Financial Protection Bureau at 855-411-CFPB (2372).

Ray Rodriguez, a regional sales manager for Cherry Hill, N.J.-based TD Bank, says lenders vary in how they work with borrowers over canceling PMI. Think about mortgage insurance when getting a mortgage, he says. Tell the lender you need a copy of the loan’s PMI cancellation policies before you’ll sign the mortgage agreement.

“It’s the lender or whoever is going to service this loan who will make the rules on this,” Rodriguez says. “Your lender should know their servicing policy right upfront. If they say ‘No’ or ‘If’ or ‘Maybe’ and you call two other lenders and they say, ‘Absolutely, we would do that for you,’ you can vote with your feet.”

Article Source: nerdwallet.com

Please visit our Disclosures page for more details for all loan types.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

5 Way to Prepare for Refinancing Your Home

Mon, 16 Apr 2018 19:00:41 GMT

If you’re dreaming up a major renovation or hoping to capture a lower interest rate, it might seem like a good idea to refinance your home. All you need is a local lender you can trust, and you can jump right in, right?

Not so fast. Like many parts of homeownership, the refinancing process isn’t simple. Before you get too excited about a lower monthly mortgage payment for your home in San Francisco, CA or a glossy new kitchen at your home in Washington, DC, it’s important to take these few steps to prepare for a refinance and get your finances in order before meeting with a lender.

1. Run the numbers

Refinancing may seem like a good idea, but it’s important to get a complete look at your finances before you decide if a refinance is right for you. An online refinance calculator can help, but there are other factors to consider. Think about the loan term in relation to your age and your future retirement date. You may not want to reset the clock on a new 30-year loan if you’re less than 30 years from retirement. Instead, you might consider a 15-year mortgage, keeping in mind that your monthly payment will be higher.

2. Examine your credit

Under federal law, you’re entitled to a peek at your credit report once a year for free. There are three major credit bureaus: Experian, Equifax, and TransUnion. Pulling your report once a year from each agency will give you a good idea of the strengths and weaknesses of your credit. But you won’t get to see your credit score, the little number that determines so much about how much you’ll be able to borrow and what kind of interest rate you can get. If you’re not sure how good your credit is, start with the free credit report. Work on eliminating errors — they can have a big impact on your borrowing potential — and addressing any other problems. Then you might want to request your actual credit score, which will cost a little money but might be worth knowing before you attempt to refinance.

3. Get your financial house in order

Lenders like to see that you’re far from maxing out your available credit. If you carry balances on credit cards and you’re getting close to your credit limits, work on paying down your cards to create breathing room.

It also helps to show that you have enough liquid savings to pay the mortgage for several months in the event of a job loss, so building up your savings accounts is a good idea. If you don’t have the extra cash to build up savings accounts or pay down debt, a refinance could still be an option for you. Discussing your situation with some lenders will help you determine whether it’s a smart time to get started.

4. Guestimate your home’s value

Most lenders want to see that you owe no more than 80% of your home’s value. Your lender will order an appraisal as part of the refinance process, but it could be helpful to research your home’s value so you’ll know where you stand. Look up recent sales in your area, which will give you a rough estimate of your home’s value. Then compare the estimated value of your home with what you owe or what you’re hoping to borrow during the refinance process. If you owe more than 80% of the home’s value, it might not be the right moment to refinance.

5. Research lenders

Unless you have a problem with your current lender, they’re a great place to start when it’s time to refinance. Your lender wants to keep your business, so they’re likely to match the lowest available rates. But do your homework — just as with any other mortgage or large purchase, compare rates from several lenders to make sure you get the best deal.

Article Source: https://www.forbes.com/sites/trulia/2016/11/03/5-ways-to-prepare-for-refinancing-your-home/#124f4e93659c

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

VA Home Loans: What You Need to Know

Fri, 06 Apr 2018 19:00:33 GMT

VA loans play an important role in putting our military-serving citizens into a home of their own. Homeownership is important to the men and women of the U.S. armed forces — and to their families.

Here’s what you need to know about VA loans: How they work, who can get them and all the other moving parts of a VA mortgage.

What is a VA loan?

A VA loan is issued by a private lender and insured by the Department of Veterans Affairs. It’s a valuable benefit — offering a mortgage with a lower-than-most interest rate that usually requires no down payment — for qualified U.S. veterans, active-duty military personnel and certain surviving spouses.

You’ll complete the loan process with a bank, broker, credit union or online, just like everyone else, but with some key differences along the way.

Who is eligible for a VA loan?

You are likely to be entitled to apply for a VA mortgage if:

You are active-duty military
You were separated from military service in a situation “other than dishonorable discharge”
As a veteran or active military, you meet specific length-of-service requirements
You are a reservist or a member of the National Guard
You are a qualified surviving spouse of a deceased veteran
In addition, there are these requirements:
The home must be your primary residence
You must have a valid certificate of eligibility from the VA

Benefits of a VA loan

A VA loan begins with one important distinction: relaxed credit-qualifying standards.

“It is a benefit that is earned only with some degree of sacrifice,” says Mark Connors, lender liaison with the VA. “As a result, we encourage our lenders to try find ways to approve loans.”

The VA does not have a minimum credit score, and Connors offers an example of why that’s important: An active-duty service member deployed overseas unfortunately suffers a serious injury.

“She comes back home — she, her family and her support system, they’re not focused on anything financial. They’re focused on getting her back to health,” Connors says.

Following recovery, she wants to purchase a home, and is in a financial position to do so, but during her medical setback her credit score suffered a hit.

“That’s the last person in the world that VA would want to decline a loan to,” Connors adds.

While lenders often have their own credit score guidelines, those are separate from VA requirements. In this case, a lender would have the flexibility to submit such a loan application to the VA without the constraints of a required minimum FICO score.

Even still, a borrower must have at least fair credit and be able to afford a home. The VA takes a real-life view of affordability by estimating your ability to pay the home loan after accounting for other monthly expenses.

THE MAJOR BENEFITS OF A VA LOAN:

Down payments aren’t required, unless the purchase price is more than the appraised value of the property
Mortgage rates are typically lower than conventional loans
No mortgage insurance is required
Counseling is available to help borrowers retain a home through serious financial difficulties
You can reuse your VA loan benefit
VA loans limit the amount you can be charged for closing costs
You don’t have to be a first-time home buyer
VA-backed loans can be assumable — this means they can be taken over by someone you sell the house to, even if that person isn’t a service member
A bankruptcy discharged more than two years ago — and in some cases, more than one year ago — will not preclude you from getting a VA loan

Types of VA loans

Home purchase: Loans backed by the VA are available to buy a home.

Cash-out refinance: This replaces your mortgage with a new loan, while tapping some of your home’s value.

Interest rate reduction refinance loan: An IRRRL (pronounced “Earl”) is also called a streamline refinance loan. You can replace an existing VA loan with a mortgage offering a lower interest rate, or move from an adjustable-rate loan to a fixed interest rate.

Native American Direct Loan program: This helps qualified Native American veterans buy, build, improve or refinance a home located on federal trust land.

Adapted housing grants: These assist veterans with service-related disabilities purchase, build or modify homes for better livability.

VA loan fees

While mortgage insurance isn’t charged on VA loans, a “funding fee” serves the same purpose: to help defray the expenses of foreclosing on borrowers who default. The fee ranges from 1.25% to 3.3% of the loan balance, depending on your down payment, branch of the military and whether or not it’s your first time getting one.

The VA funding fee can be rolled into your total loan package, but that will likely raise your interest rate, and will absolutely raise your monthly payment.

Though a down payment is not generally required, putting 5% or more down will reduce your VA funding fee. And a down payment will lower your monthly payment, too.

Article Source: https://www.nerdwallet.com/article/mortgages/va-home-loan

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

5 Great Reasons To Use A Local Lender When Buying Your Home

Tue, 06 Jun 2017 19:00:19 GMT

The market is hot, and you’re ready to buy. The first step is getting approved on your loan. But which lender should you use? The promise of quick approval through internet based providers is tempting, so why use a local lender?

Buying a home will likely be the biggest purchase you will ever make in your life. Finally moving into your new home will be a joyous occasion and for some, the culmination of a dream. Yet, the process can also be daunting and stressful. When looking for a home loan, you have options. Below are five reasons why you should consider choosing a local lender when shopping for a home.

1. Reliability

Everyone involved in the process, sellers, real estate agents, and you, the buyer, want the loan to close on time. Local lenders have a better reputation for closing loans on a timely basis. If the closing of a loan has to be extended by a week, and then extended again after that week is up, this could cause a certain amount of stress and uncertainty. In the worst case scenario, if a loan is denied at the last minute after a buyer has already paid an earnest money deposit, this could cause the buyer to lose his deposit as well as miss out on buying the home of his or her dreams.

2. Reputation, reputation, reputation

Local lenders and real estate agents have an incentive to provide you with excellent service because they want you to be a source of referrals for future business. They know that whether you have a great experience or a bad one, your friends and relatives are going to hear about it. These people live and work in the local area, and thus, it is their reputation and livelihood that is at stake.

3. Personal service

You can meet your lender face to face and ask questions in person if need be. In an era when phone calls are considered intrusive and people generally don’t like talking on the phone, I find that meeting people face to face can be very effective for resolving issues. I think it slows down the pace of the discussion and it is more effective for getting on the same page.

4. Local expertise

Besides knowing the area and local real estate market, a local lender will appear more attractive to certain home sellers and real estate agents because of the importance of a timely closing and a smooth process. In a situation where several offers are on the table, having a local, trusted lender could be the difference between landing the house or not. Some sellers and real estate agents may not even consider offers from national banks or online lenders because of previous bad experiences, or because of the bad reputation some of these have.

5. Buy local, borrow local, help the local community

Most people are aware of the effect which buying locally produced goods or spending money on locally owned businesses has. The money recirculates within the community creating a positive effect. The same is true with using a local lender. Very likely the money you pay to a local lender will be loaned out to other local home buyers and businesses down the line.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Loan Approved!

Tue, 06 Jun 2017 18:59:47 GMT

Applying for a home loan can be a daunting task. Take these steps and be well prepared in advance!

Buying a home will likely be the most expensive and important purchase you make in your lifetime. Here are some basic steps to prepare yourself for successfully applying for a home loan and make your dream house a reality.

Where do I start?

There are basic things you can do to improve your credit. To begin with, you should dispute any inaccuracies by requesting an investigation with the credit bureaus. Keep in mind that derogatory information falls off after seven years.

Additionally, you should pay off any outstanding delinquencies. Often times, these accounts can be settled for a fraction of the original debt if they’ve been transferred to a collection agency or a junk debt buyer.

Also, reduce your debt-to-income ratio and your usage-to-high-credit-limit ratio by paying down credit card balances. You can’t expect to borrow considerably more money if you haven’t demonstrated the ability to pay back the money you’ve already borrowed, right?

Exercise caution when applying for credit as this will result in a hard inquiry and too many of these during a short time span will lower your credit score.

Leave older accounts open as this helps your credit score and religiously make on time payments on all accounts.

This process may take several months for some people, or perhaps years for others before it yields the desirable results. Hopefully, you’re someone who has had excellent credit all along.

How do I identify a loan program that fits my needs?

Learn about your options. When it comes to mortgages, the primary types are fixed or adjustable rate mortgages. A fixed loan will keep your payments constant as the name implies, while an adjustable rate mortgage may result in higher payments once the initial rate period ends. The advantage of an adjustable rate mortgage is that it will likely offer a lower initial rate than a fixed mortgage of comparable duration. The potential downside is that payments may skyrocket to unaffordable levels as happened with many people’s mortgages during the housing bubble. There is also the length of time to consider for each, 15 or 30 years? A longer mortgage will generally have a higher interest rate, but lower payments.

Get organized…

Assemble your documents. Lenders will ask for documentation of your income and it’s always a good idea to be well organized in advance. Among the items that will be requested are federal tax returns for the last two years, W-2 earning statements, bank statements for several months, recent paycheck stubs, divorce decree, bankruptcy paperwork, and proof for any other income.

Have any questions? Contact one of our Loan Officers today for a free consultation!

*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*

Steps For A Quick & Easy Loan Process

Fri, 08 Apr 2016 18:59:13 GMT

Four Essential Steps For A Stress-Free Loan Process

Owning your home is the American dream, and California’s Central Valley has an abundance of affordable housing in the state. Unless you won the $1.3 billion jackpot, you most likely need a home loan, so below are five essential steps to make the loan process easy so you can make your dream a reality.

One very important action a person can take is to have stable work history, which helps guarantee that he or she makes a sufficient monthly income to afford the home. This may seem obvious to some, but as part of a guide for how to get from point A (renting) to point B (home-ownership), it must be stated. Winning the lottery or becoming a famous actor offer lower probabilities of guaranteeing sufficient monthly income. Assuming you have sufficient monthly income from a stable source, you should…

1. Reduce your existing debt and avoid taking on new debt

What comes next gets a little technical, but bear with me here… I am concerned with and referring to your debt-to-income ratio or DTI. To figure out your DTI, add your projected monthly home payment plus your other recurring debt payments such as car or credit card payments, then divide this number by your monthly pre-tax income. The industry standard for the acceptable threshold is 38% or less. This is a figure the industry uses to determine your ability to repay your loan, which will likely consist of hundreds of thousands of dollars. Another reason why you want to reduce your debt and avoid taking on new debt is related to your credit. Taking on new debt may temporarily lower your credit score.

2. Pull copies of your credit reports

Your credit reports and scores will convey your credit worthiness to a potential lender. A small or moderate difference in points can affect the interest rate of the loan which can equal thousands of dollars over the lifetime of the loan. Not only that, but a small or moderate difference in credit score can affect the amount of down payment required, potentially squeezing some buyers out. Therefore, you should check your credit reports for errors and attempt to resolve any found.

3. Prepare your documentation

As part of the loan process, you will be asked to provide some or all of the following:
– W-2s or 1099 income statements for the past two years
– Federal tax returns for the past two years
– Bank statements for the last several months
– Recent paycheck stubs
– Divorce decree
– Bankruptcy paperwork
– Proof of investment income

You might as well organize it and have it ready and you will be one step closer to owning your home.

4. Get pre-approved

Being pre-approved, particularly in a competitive market, increases your chances of landing your dream home. For one thing, the seller doesn’t have to worry about you being turned down for a loan. Being pre-approved also allows you to know how much house you can buy so you can plan accordingly.

If you follow the previous steps, you’re ready to take the final step of the loan process, which is contacting us!

Have any questions? Are you ready to get pre-approved? Contact one of our Loan Officers today!

*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.

*The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Big Valley Mortgage.*