Mortgage sounds like a lot of processes, and a ton of paperwork. But mortgages don’t have to be scary. It's just the same as other business transactions. 

To avoid mortgage mistakes, here are some of the things you can do:

1. Communicate with All Parties

This deal involves several people: the buyer, the seller, the realtors, and the lender. Keep everyone in the loop on every bit of information, or your closing could get delayed. Be transparent about everything.

2. Have Enough Money to Pay Closing Costs

Closing costs are usually 2-5% of the amount you’re borrowing. If you don’t have enough money, there are a few ways to work around the problem.

• Look for assistance programs that cover some of the closing costs.
• Call a relative and ask for a gift.
• Negotiate with the seller to pay the closing costs.

3. Unfreeze Your Credit

Buyers may have placed a security freeze on their credit, which restricts access to their reports. This can prevent identity thieves from opening new accounts in their name but can cause trouble when they’re applying for a mortgage. Head off problems as soon as you begin mortgage shopping. 

4. Steer Clear of Big Purchases After Mortgage Pre-approval

Your lender will check your credit twice. First, when you apply for the mortgage and next, days before you close on the house and get the keys. Even applying for a credit card or car loan can affect your mortgage rate. To get the information it needs, the lender will request your credit file from the credit bureaus. 

5. Expand Your Employer's Contact Information

The COVID pandemic has millions of people working from home, making it tougher for lenders to do routine employment verification. To prevent loan approval delays, get the emails and phone numbers for your employer.

6. Ask Questions So Your Lender and Agent Can Help

There are no dumb questions. Lenders and agents are there to help you, so pick their brains. For example, ask if there are home loan programs to help you get into a home and how to access them. See about getting the seller to pay closing costs. Check on anything you don't understand.

Taking these simple actions can keep your home loan application on track. And that means fewer hassles and less stress for you.

Click here if you have more real estate-related questions. 

When it comes to one of the biggest financial decisions of your life, you’ll want to ensure you have all the right people on your side. After all, purchasing a home truly takes a village. Here are some of the tips to choose your ideal home buying team. 

1. They have the right experience

Depending on your situation, you may decide to seek out someone with specific expertise. For example, if you’re buying with a low credit score or when self-employed (Investopedia, 2021), professionals who have worked with clients in similar situations in the past might be more of a fit. Or, maybe you just want someone who knows your loan type or neighborhood of choice like the back of their hand. Either way, assess your unique needs and ensure this professional can address them.

2. They’re helpful in stressful situations

The home buying process can get intense, and you’ll want to have someone supportive on your side. ‘Supportive’ looks a little different for everyone, though. Do you want someone to push or challenge you when the going gets tough? Or, would you prefer someone console you and pitch alternatives in times of frustration? They call it a home buying team for nothing, so be sure to select the right teammates.

3. Their communication style compliments yours

Communication is key when it comes to navigating the home buying process. Whether all-day text conversations or weekly phone calls, most of us have a preferred method and frequency of communication. A good fit means your agent or loan originator won’t be messaging you at all hours of the day. Unless, of course, that’s what you’d prefer!

4. They provide the level of support you need

From confidence to decisiveness, each and every buyer is vastly different. Do you want to call the shots or are you more along for the ride? Certain buyers know exactly what they want from their home and home loan, so the right home buying team can focus more on support. Others want to be guided through the process. They’ll benefit from someone who takes the reins and facilitates the entire experience. Decide how involved you’d like to be and ensure each professional can accommodate.

Purchasing a home is a big decision and can be an intense process. You want the right people working behind the scenes to help make your dream a reality. By considering your unique needs, and ensuring each team member can meet them, you’re one step closer to homeownership. 

Just click here if you need a home buying team. 

First impressions start with curb appeal next to the kitchen, the space that arguably carries the most weight is your living area.

The following things could be the biggest buyer deal breakers. Make sure to avoid them. 

1. Dead bugs

The insect graveyard was an instant turnoff, if not to everyone, but most of us. Make sure every corner of your living room is pest-free before you show your home. 

2. Your collection

Pack your precious collections away, no matter how harmless they may seem to you. It might seem decorative for you but, maybe not for potential buyers. 

3. Surprise smells

Without question, odors are major living room turn off. Not just bad odors but also other types of scents. The best scent in your house? Nothing. 

4. Evidence of your pets

You might accept the fact that your beloved cats and dogs shed their whole coat onto your couch cushions. But potential buyers won’t be as understanding.

5. Darkness

Let there be lights! Let the light in. The dark living room is a big no-no. 

Personal photos

A photo on the living room wall of you and your family is essential to you, but can still be a major turnoff to buyers. 

Buyers are going to run full speed and scan whatever they can if they stumble across a living room that freaks them out, chances are they will cross your home out of their list.

You may be wondering if there are tax deductions when selling a home. The answer is yes. Check out this list to make sure you don’t miss any of them.

1. Selling costs

These deductions are allowed as long as they are directly tied to the sale of the home, and you lived in the home for at least two of the five years preceding the sale. Another caveat: The home must be a principal residence and not an investment property.

2. Home improvements and repairs

If you renovated a few rooms to make your home more marketable (and so you could fetch a higher sales price), you can deduct those upgrade costs as well. This includes painting the house or repairing the roof or water heater.

3. Property taxes

This deduction is capped at $10,000, Zimmelman says. So if you were dutifully paying your property taxes up to the point when you sold your home, you can deduct the amount you paid in property taxes last year up to $10,000.

4. Mortgage interest

As with property taxes, you can deduct the interest on your mortgage for the portion of the year you owned your home.

5. Capital gains tax for sellers

The capital gains rule isn’t technically a deduction (it’s an exclusion), but you’re still going to like it. As a reminder, capital gains are your profits from selling your home—whatever cash is left after paying off your expenses, plus any outstanding mortgage debt.

If you have questions about what we mentioned above, click here and our team of experts will be happy to assist you.

Buying your first home?

There are many first-time homebuyer programs and grants available to help the first-time homebuyer, generally assisting with the down payment and closing costs.

We have listed some of the best programs, grants, and loans that will help you afford your dream home without needing to make a 20 percent down payment.

1. FHA 

Insured by the Federal Housing Administration, FHA loans typically come with smaller down payment and lower credit score requirements than most conventional loans. First-time homebuyers can buy a home with a minimum credit score of 580 and as little as 3.5 percent down or a credit score of 500 to 579 with at least 10 percent down.

2. USDA loan

The U.S. Department of Agriculture, or USDA, guarantees loans for some rural homes, and borrowers can get up to 100-percent financing. USDA loans have income limits based on where you live and are geared toward folks who earn low or moderate incomes. You typically need a credit score of 640 or higher to qualify for a streamlined USDA loan.

3. VA loan

Qualified U.S. military members (active duty, veterans, and eligible family members) can apply for loans backed by the U.S. Department of Veterans Affairs, or VA. VA loans are a great deal because they come with lower interest rates compared to most other loan types and don’t require a down payment. 

4. Good Neighbor Next Door

The Good Neighbor Next Door program, sponsored by the U.S. Department of Housing and Urban Development (HUD), provides housing aid for law enforcement officers, firefighters, emergency medical technicians, and pre-kindergarten through 12th-grade teachers.

5. Fannie Mae or Freddie Mac

The government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac set borrowing guidelines for loans they’re willing to buy from conventional lenders on the secondary mortgage market. Both programs require a minimum 3 percent down payment. To qualify, homebuyers will need a minimum credit score of 620 (though some lenders have different thresholds) and a relatively unblemished financial and credit history. Fannie Mae accepts a debt-to-income ratio as high as 50 percent in some cases.

6. Fannie Mae’s HomePath ReadyBuyer Program

Fannie Mae’s HomePath ReadyBuyer program is geared toward first-time buyers interested in foreclosed homes that are owned by Fannie Mae. After taking a required online homebuying education course, eligible borrowers can receive up to 3 percent in closing cost assistance toward the purchase of a HomePath property.

7. Energy-efficient mortgage (EEM)

Backed by FHA or VA loan programs and allows borrowers to combine the cost of energy-efficient upgrades into a primary loan upfront. Best for homebuyers who want to make their home more energy-efficient but lack upfront cash for upgrades

8. FHA Section 203(k)

Backed by the FHA, the loan calculates the home’s value after improvements have been made. You can then borrow the funds needed to pay for home improvement projects and roll the costs into one loan. Improvements must cost more than $5,000 and you’ll need to make a minimum 3.5 percent down payment. You’ll also want to make sure you’re working with a contractor who is familiar with 203(k) loans and their timeline.

9. State and local first-time homebuyer programs and grants

First-time buyer programs and grants, available through states or cities, for down payment or closing cost assistance. Best for first-time homebuyers who need the closing cost or down payment assistance

10. Native American Direct Loan

The Native American Direct Loan (NADL) provides financing to eligible Native American veterans and their spouses to buy, improve or build a home on federal trust land. This loan differs from traditional VA loans in that the VA is the mortgage lender.

You can also call us today at 239-682-7600 if you want to find out more or if you have any real estate-related questions. 

Choosing to rent or buy a home is a major decision that affects not only your lifestyle but also your financial health.

Homeownership brings intangible benefits, including a sense of stability, belonging to a community, and pride of ownership, along with the tangible ones of tax deductions and equity.⠀

Apart from what we mentioned above, here are some of the top advantages:⠀⠀

1. It is a good investment. Many with stable rental income and property values are on the rise. Buying a home is one of the best long-term investments you can make. Your home value would likely grow in the market over time.⠀⠀

2. Owning a house helps you stabilize your budget. When you are renting, landlords could increase rental rates every year at renewal. When you own your house, you can plan your mortgage payment for up to 30 years. ⠀⠀

3. Owning a house improves your credit. As long as you pay your mortgage on time, it will help improve your credit score. ⠀

4. Building Equity

Your equity also grows as you pay down your mortgage, with less of your payment going toward interest and more toward lowering the balance on your loan. One thing to keep in mind, though, is that the length of time you have your home is a big factor in how much equity you build and the appreciation you can realize. The longer you keep it, the more equity you obtain.

The renting versus buying debate is one of the most classic arguments within the real estate market. Some people believe renting is the same as throwing money away when they should be saving for a house. Others favor renting for its flexibility, less maintenance, and the thought that it’s cheaper.

If you want to discuss it more or you have any real estate-related questions, send us a message and our team of experts will be happy to help you.