Mortgage Brokers are an important part of making your dream come true. Some experts say the Mortgage Broker can guide and help in ways you would never guess. At Palm State Mortgage Company, we know they really can help make your dreams come true.
Ownership of a Home Remains Our American Dream
Did you know that more Americans became homeowners this spring? And amazingly, the number of renters decreased. This
brings home ownership to a four year high. This also adds to the evidence that a consumer’s major dream is still to be king of his or her own castle. This seems to be true, despite “on-going housing market headwinds.”
Adding to this proof, the US Census Bureau reported these surprising facts.
1. The national homeownership rate rose to 64.3 percent in the 2nd quarter. This is up from 64.2% in the 1st quarter.
2. This increase in the “sixth-straight quarter of yearly increases.”
Surprisingly, the biggest jumps in ownership were younger Americans. 36.5 % of owners were under the age of 35. This compared to 35.3% in the previous year.
3. And adults, aged 35 – 44, “aged 35 to 44 saw a correspondingly hefty jump, to 60% from 58.8% in 2017.”
4. During the past year, 1.77 million American purchased homes.
5. 10,000 fewer Americans rented homes during this period.
Palm State Knows It’s Not All Roses and Rainbows!
Yes, it’s true. Statistics do look promising. However, Palm State is aware that home ownership is a “full percentage point below the 50-year average.”
Sam Khater is the chief economist for Freddie Mac. He stated that this “lag reflects the long-lasting scars from the Great Recession and the lopsided nature of this recovery.”
And some economists are raising concerns “about the staying power of the housing market.” However, experts believe that the promising current statistics will quiet the worries about millennial buyers.
Five Ways Mortgage Brokers Help Secure Your Dream
After weeks, you and your wife finally find the perfect little cottage…Your Dream Home. Then comes the even more excruciating misery of
The paperwork alone is enough to put you in retreat. You find yourself wishing you were home and hiding under a warm blanket. First you
have to deal with confusing abbreviations and the massive amount of terminology. Some examples include earnest money, prepayment, penalties, contingencies, principal, interest and… The list is unending.
However, if you have a really great mortgage broker, many painful mistakes can be avoided. Not only will he or she help you find the best deal, they can take the mystery out of confusing financial details.
Here are details your mortgage broker wishes you knew from the start.
1. Your Mortgage Broker is Here For You
During the financial processing, you want to keep your mortgage broker close. Consult with him/her any time a financial question arises. Remember, your mortgage broker is there to guide you through the entire buying experience. He/she can personalize advice that is tailored to your needs.
2. Who are the other members of your Home-Buying Team?
A CBS Special says, “Don’t go it alone.” And they add, “As a first-time homebuyer, putting together a great team makes the entire process easier.
The members of this team will probably include a realtor, an attorney, and a home inspector. All of these partners will be readily available
when the closing time is near. And putting the team together is a serious part of the Home-Buying process. Remember, your mortgage
broker can advise you.
A. CBS also points out that a good licensed Real Estate agent is truly important. The Internet makes it pretty easy to browse homes for sale. But, this approach can make it “an all-consuming task.”
A good Real Estate agent can make it easy to find the homes you want to consider. And they know which areas that you can find that special home.
But Remember a Realtor is mostly interested in making the sale. And he or she might be very friendly. But in truth, they are best buddies with the seller, not you.
B. Closing time is approaching. This is probably about the time when you have started worry about your budget. You’re already panicked about rising expenses and just plain moving.
This is not the time to begin worrying about the other members of your team. It’s comforting to know which lawyer and inspectors your working with. So make those decisions early. Again, this is a job your mortgage brokers can help do.
3. Mortgage Brokers Know the Rules on Down Payments and Help You “Get” Them
Be sure you understand the rules about down payments. And this is an important one: You may think you can borrow money from Mom or a friend to make your down payment.
Borrowing from a friend for a down payment is not permitted. The law forbids it. If you’re using gift money to cover any part of your deposit, make sure it’s thoroughly documented. Underwriters will review any large deposits to ensure they’re gifts. They will want to be sure these are not loans.
A mortgage broker can help you figure out the best way to fund your down payment. But when it comes to financial rules and regulations, everything must be legal.
4. Mortgage Brokers Want to Know the Truth of Your Financial Situation.
Your broker will be intimately familiar with the financial regulations involved in buying a home. But you must provide tons of correct financial documentation. Do that from the very beginning of the deal. To put it simply, do not hide any fiscal problems you might have. And then your mortgage broker will be better able to liaise between you and the underwriter when–and if money issues arise.
5. Stop spending or making large purchases.
While awaiting your loan process, do not spend money on big ticket items.
Once you’ve started the loan process, don’t make any major changes or purchases without speaking to your mortgage company. And chances are good he’ll advise you to wait.
Your Mortgage Broker will probably give you this general advice. Don’t buy anything. Avoid any major changes in your bank account.
Any large expenditure or financial upheaval can delay your closing. It could even be cause for canceling your financing. Do you want to buy a new car? You just have to have new furniture or finance a vacation to Europe?Don’t do it.
Buying any of these big-ticket items could put your home loan at risk. Be sure your closing has gone through. Then and only then, buy that new convertible.
The same advice applies to new jobs. Even if you get a promotion with a major pay raise, try to put it off until after the close. The reason: Lenders usually require recent pay stubs from the past 30 days. So taking a new position during the home-buying process is not a good idea. In fact, any major change to your finances could jeopardize your home loan. This would delay or even cancel your closing.
A Family’s Home is Still His Castle
Judging by these trends and facts, it must still be true. Most Americans dream of owning their own home. And to find it, just follow the:
“Second star to the right and straight on til’ morning.” (And give Palm State Mortgage Company a call.)
Thank you for reading the Palm State blog and happy house-hunting.