Locking in favorable terms with a fixed-rate mortgage. As of this writing, interest rates are at their historical rock-bottom. Receiving a fixed-rate mortgage lets you potentially lock in the most affordable terms we’ve seen.
The Money-Saving Secrets of the Home Purchase
If you’re tired of throwing rent toward the landlord, you can keep some of that money by putting it toward the principle of your very own home mortgage. Why bother? Here are some of the money-saving secrets that homeowners can enjoy:
Get pre-approved for a mortgage to do your research first. Ready to shop around? There’s no pressure. Get pre-approved for a mortgage and find out how much home you can afford—these are essential next steps that convince a home seller that you mean business.
Buy the home you can afford. When you know your total monthly liabilities, your income, and your credit rating, you can easily calculate just how much home you can afford. This will help ensure that you buy a house that remains a long-term blessing and not a strain on your budget.
The Stats: What You Need to Know Before You Buy a Home
Homeownership is common. In fact, statistics from 2019 show that the homeownership rate was a staggeringly high 64.8%, which means the majority of people have gotten out of the rent cycle and into their own home.
You don’t need experience. First-time home buyers constitute one-third of all home buyers, which means that you don’t have to feel intimidating by the home buying process, even if it’s your first time. It’s far more common to be going through this process for the first time than you might imagine.
The average length of time is low. Have house fever? You’d be surprised how quickly things can move. The average length of time between someone visiting a potential home for purchase and the closing date was only 73 days, or two and a half months.
Are you interested in finding out if a home purchase makes sense for you? Are you ready to join the ranks of homeowners and lock in potentially low rates?
2 Ways to Use Your FHA 203(k) Loan
Buy a Fixer-Upper (and Fix It Up)
Or... Renovate Your Current Home!
John is absolutely amazing! There are no other words. He is very knowledgeable and is always responding whether it be by email or phone no matter what time. Thanks for everything!- kd9217.
We closed on a home in CT the first week of January. We began working with John fairly late in the process but he moved quickly to help us get everything accomplished quickly. The work was professional and John was very responsive to our concerns and question. He found the terms and rates we were hoping for, and we were very pleased.- mgrorud.
John was an excellent lender. Extremely responsive, very knowledgeable, and always professional. I felt very comfortable with John and my loan closed prior to the contract date. I have recommended John to all my family and friends.- kristenbessette1.
I have worked with John before and he is unparalleled in his abilities, knowledge, communication, patience and professionalism while making you feel like an old friend. This is the second time I’ve had the pleasure of working with John and would recommend him highly.- leland m leblanc.
John was a pleasure to work with. Always available to answer questions and guide the process along. Highly recommend his services to other prospective home buyers!- deenai.
I couldn’t have asked for a better person to work with through the home buying process. John was excellent at all facets of his job and more. His responsiveness was incredible, reacting typically within minutes of me asking a question. I couldn’t give John a higher recommendation.- jandrews82.
I have been working with John on my home buying process. I have worked with other lenders and brokers prior. John is a cut above the rest. He is extremely knowledgeable and very responsive, I would send emails late at night assuming I wouldn’t get a response until the morning but he would get back to me within minutes and never screened my calls and always answered. John is hands down, bar none the best and most professional mortgage banker I have ever worked with.- jcearl21.
Process was professional and we would definitely use again. John kept us informed on the progress of the refinance and answered all questions we had. He was able to set up the final closing date and attorney to be at our home at a time that was convenient for us. Even followed through a few days later to inform us that the refinance had been completed with the banks and financial institutions involved.- mwj311.
I’ve known John Grad for about 10 years now and he has helped me in the mortgage world both personally and professionally. I have gotten my mortgage from him and enjoyed and trusted the experience enough to refer family, friends and clients to him.- user449132.
John was very helpful. As a first time homebuyer he spent a lot of time explaining the process and answered all my questions. He was very attentive and made a difficult process much easier.- user9375806.
Your Renovation Wish List Could Include...
Increase window size
Bring in more natural light
Finish a basement or attic
Create a mother-in-law apartment or guest space
Correct foundational issues
Protect your investment for the long-term
Add a detached garage when one does not exist
There’s room for everyone
Knock down walls
Open up the floor plan to create versatile, welcoming spaces
Flood-proof your property
Add a retaining wall to prevent expensive damage
Repair the pool
Tired of leaks and cracks? Fix the pool & start enjoying it
Expand or refresh the kitchen
Cooking is just more fun in an updated kitchen
Add square footage
Growing your family? Grow your home alongside it!
After remodeling, 74% of owners have a greater desire to be in their home, and 65% have increased enjoyment in their home.
How Does a Renovation Loan Work?
Depending on the types of repairs you plan to do, you have two options when it comes to securing a FHA 203(k) Renovation Loan: Limited and Standard.
The Limited 203(k) loan
The Limited 203(k) loan is for non-structural or “cosmetic” repairs. It covers up to $35,000 in renovation costs. With a Limited loan, you can do nearly anything that doesn’t affect the home’s structure! Think kitchen and bathroom remodels, carpet and flooring replacement, painting, appliance replacement, and much more.
The Standard 203(k) loan
The Standard 203(k) loan is a loan for projects with repair costs over $35,000. It can be used for structural or non-structural repairs. With a Standard Loan, you have even more flexibility. You can expand the home’s footprint, improve accessibility for differently abled people, and even move the home to a different site.
What You Need To Know About A Home Purchase
Why should I buy a home rather than rent?
Everyone’s situation is different. However, in the era of low interest rates, a new home purchase can make financial sense for a lot of people. Locking in these low interest rates can mean paying less for more square feet in some cases. That said, every person’s situation is different, and your motivations for buying a home (including the need for more space or privacy) may differ from other people.
How do I start the home buying process?
One of the best ways to show that you’re serious about buying a home is to get pre-approved for a mortgage. This will give you some leeway when it comes to making offers when you view homes. And in some cases, it’s viewed as a necessity when you go out shopping for homes. In many cases, the process is as simple as finding out what you can afford given your current income, levels of debt, and financial obligations. The good news: it’s a lot simpler than you think!
What kinds of financial commitments do I have to make?
There are a lot of options for financing when you make a home purchase, so don’t feel that you have to commit to any particular one at this point. You’ll find that it’s possible to make a 20% downpayment, for example, but there may be types of financing available that require far less—as low as 3%, depending on your situation.
Why is now a good time to buy a home?
Although every situation is different, low interest rates tend to mean generous financing terms for people taking on a home mortgage. Having a mortgage with low fixed interest rates, for example, can be a powerful hedge against inflation in periods of higher inflation—where in the interest rates are typically higher. But we should reiterate that every situation is different, and you should do what’s best for your situation and your own family.
What is the next step?
In addition to the FHA loan program as mentioned in the previous answer, you should also look at your qualification for: the VA loan program, the USDA loan program, and even the Good Neighbor Next Door buyer aid program.
What should I do next?
Click through our buttons above to find out whether you qualify for great terms on a new home purchase!