Buying a Home with a New Job

What an exciting time to buy a house! You just turned 30, got a new job, and feel ready to take the next step of your life. However, you might be concerned that the new job that made buying your first home more affordable could risk your chance of getting a loan.

Many first-time buyers are just getting their life started in their career, but relocating for a new job can be difficult when searching for a mortgage. Having a new job might make qualifying for a mortgage a little more difficult, but it does not automatically disqualify you. 

If you’re thinking about accepting a new job or recently moved positions within the same industry, it won’t have too much impact on your chances of being approved for a mortgage.
Employment is not just your job history

You don’t always need years and years of work experience to get your mortgage approved. Lenders want to know you have a stability income that is ongoing, for at least the next three years.  Jobs that increase your income and/or job level in a field where you already proven yourself shouldn’t raise a red flag.

When to be Careful 

Job changes that make your income less predictable might raise more red flags. If you left a steady job as a paramedic to become a lead singer in a band, your bank might give you a “What in the world?” look.  That doesn’t mean you can never a buy a house if you follow your passion, but a lender will want to see at least two years of reliable singing career income on a mortgage application.
Believe it or not, your work history might make you decide to change loan types. For instance, getting a FHA loan with less than two years employment can sometimes be easier than qualifying for another loan type.

Below is a breakdown of what each loan type requires:

• Conventional: Two years of work related history.
• FHA: Two years of related history. Need to be at current job 6 months if applicant has employment gaps.
• VA loans: Two years or relevant schooling or military service. If active military, must be more than 12 months from release date.
• USDA: No minimum in current position; prove two years of work or related history.

Of course, there some cases where job changes can delay your mortgage loan, but it won’t automatically complicate your ability to get a home loan. Make sure to let your lender know of changes and promptly provide any document they might request. Remember, if you have already secured your home loan and accepted an offer on a house, don’t take a new job before your closing!

If you want a full team of Mortgage Professionals to help your decision on choosing the best loan option for you, we’re happy to help! Please don’t hesitate to reach out to us at 770-552-1000. We look forward to hearing from you!

3 things to avoid after applying for a Mortgage

What exciting news after you found a home to buy and have applied for a mortgage! But, before you begin the mortgage process, it’s important to keep your finances as similar as possible until the closing day. While you’re waiting to close, a few helpful tips may help the process go as smooth as possible.

Don’t make any large purchases

You have found the perfect home after months of searching. You are getting excited and can’t wait to move in. You begin to picture how your living room would be like with your new furniture. You are already in buying mode, especially after finding out your credit score is good. What could go wrong when making any major purchases at this time?

Unfortunately, making purchases at this time could jeopardize the closing and funding of your new home. You don’t want to lose an opportunity on purchasing your new home. So, do not make any large purchases like furniture, a car, a boat, or jewelry.

Don’t change jobs

If you immediately switch one job to another with a different career field or take a lower or higher paying job, you may have a harder time getting your loan approved. This is because underwriters will request at least two years of work history. Changing jobs during your mortgage application process will raise a red flag.

If you’re aware that your job position or pay structure may change during the process, make sure you let your loan officer know.

Don’t apply for new credit

We are marketed with all kinds of credit opportunities, especially with great deals like “save an extra 20% on your purchase today.” The list goes on, but it doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels, your FICO score will be affected.  Avoid applying for credit of any kinds whatsoever. Your pre-approval was based on the day your credit profile and score was applied. Remember, your goal is to keep your mortgage process running smoothly.

In general, don’t do anything that will make a significant impact on your finances without consulting a mortgage professional first. Please don’t hesitate to reach out to us, we’re happy to help you make the best decision.

Tips for Searching for New Listings

Ever wonder if you can get your dream home either before it goes on the market or right after? Negotiating for a home that’s been on the market can be stressful! Especially for first time buyers looking to search for a buy a home with less competition.

Here are some secrets for finding your dream house either before the listing goes live or immediately after.

How to win over an Upcoming Home

Ask your agent about listings he or she is trying to get. When asking, make sure it’s not the current listings. You’re basically offering yourself up as “bait,” of course you aren’t making any promises to buy a home, but if you’re interested on the property then you can try to get one step ahead of other buyers.

MLS systems usually don’t allow any showings until the home is on the market, however another way to check upcoming listing is on a Friday. MLS systems would list new homes on Friday morning. This is a good opportunity to jump ahead and go to their first open house and write an offer.

Making the Right Offer

You want to come up with a price that is agreeable to you. You can do this by spending time with your agents to ensure you’re not making any mistakes. When making an offer, you need to include documentation. Most sellers want to see that you have a pre-qualification letter, proof of funds, and possibly a copy of your earnest money.

When the seller receives your offer, the seller will probably think about the offer all weekend. Even if the seller elects to wait through the duration of the open house, your offer is still on their mind. This is when you need to wait patiently, as the seller might be tempted to take the offer.

Don’t miss out on the opportunity to search for your dream home. All it takes is a little resourcefulness and some investigating to find out which homes are going on a market so that you will be ready to act fast.

If you have any questions for us, don’t hesitate to give us a call at 770-552-1000. We look forward to hearing from you soon! 

How to make an offer on a House

Finding your dream home might take a while, so when you find the one, the next move is to make an offer.  Unfortunately, buying a house isn’t a handshake deal nor a verbal agreement, but with the right tools and a good offer, you can end up receiving the keys to your new house.

Check out these negotiations tactics to make the process smooth.

Make an offer

It’s all about supply and demand. You will want to look around the houses in the area that are similar and up for sale or recently sold. When you do, check to see how long the houses stayed on the market. If it’s more than average, then you are in a buyer’s market.

For example, just because a house is listed at $400,000 does not mean the house is worth that exact amount. This may mean that the seller has overpriced the home. If the house is sitting unsold for few months, don’t be afraid to negotiate at a better price.

Write a Letter

Believe it or not, you can boost yourself by writing a personal letter to the seller.

If by any chance you’re in a tight market and happen to find your dream home, a letter can sway them toward you. You want to write about what’s important to the sellers. For instance, you’ve notice they are a dog lover and you own pets as well. Write about how the backyard would be great for your Labrador retriever. If they’re runners, they’ll love that you’re excited about the nearby trails, too. Most importantly, if they’re parent’s as well then they will appreciate your intentions to do the same.

Keep your emotions in check

House haunting can be dreadful, especially if it takes quite a while for you. When you find the perfect home, try not to get emotionally attached.  Even an excellent offer may not be accepted, but if your offer is accepted, you should get down to the serious business of closing the sale. Just remember, it’s not a done deal until both parties sign the offer agreement.

Bottomline, when you shop for a home, make sure you do your homework. Having enough information will help you submit an offer that meets the market value.

If you have any questions for us, don’t hesitate to give us at 770-552-1000 or send us an email at skatz@vandykmortgage.com. We look forward to hearing from you soon!

How to Save Money for a House

Many people like yourself are looking for ways to save money for a new home. Sometimes, it can start to feel like you don’t have enough money for a down payment.

If you are concerned about saving up money, you aren’t alone. Coming up with the money for a down payment can be one of the most intimidating parts of the process for anyone who hopes to become a homeowner. However, it can be done when the right tools and strategies are in place.

So, what is a down payment? A down payment is the cash you bring to the closing table when buying a house. The payment typically represents the percentage of the full house purchase price. For example, homebuyers typically put down payments from 5% to 20% of the total value of the home, while the rest is often financed through a loan.

The key to save money for a down payment is being strategic with your goals and cutting back your expenses. Here are 3 ways you can begin saving for your dream house today.

Track your spending and expenses

It’s all about lifestyle changes! It’s easier to spend money on specific items you purchase and, over time, it can really add up. The first step is figuring out where your money goes and how to keep more of it in the bank. 

·         Start a coin jar. Saving all your loose change can have a big impact.

·         Packing your lunch can save you about $60 a month. By the end of the year, you’ll save $720.

·         Replace your $100 monthly cable service with a $12 Netflix standard streaming account. You’ll save $1,056 a year.

·         Replace your $150 lavish gym membership, such as Lifetime with a $10 Planet Fitness gym. You’ll save $1,680 a year.

·         Going out for dinner and drinks can add up. If you typically spend $30 three times a week, try to reduce to once a week. You’ll save up to $720.

If you’re with a significant other and wanting to move in together, try to team up! With all of the above, you and your significant other would be able to save up to $9,152.

Open and automate your savings account

When you open a savings account, some bank account can offer 1.65% APY or higher. This is a great opportunity to get your savings started.

Once you set up your savings account, make sure to automate it monthly. This way part of your paycheck will automatically go into your savings account before you are tempted to spend on unnecessary things.  This small step will make a huge difference in your savings!

Look for ways to boost your income

If you already have a typical 9 to 5 job, we suggest starting a side hustle. There’s few examples of ways to earn money such:

·         Babysitting

·         Dog walking

·         Selling artwork

·         Freelance writing

·         Freelance photography

·         Driving Uber/Lyft

·         Serving

·         Tutoring

If you decide to branch out and a find a new job altogether, think about the skills or talents that you could parlay into freelance income. You may be surprised by what your talents are.

Once you saved up money for your dream house, don’t hesitate to reach out to a mortgage professional! We’ll happy to help you make the right decision. We look forward to hearing from you!

Should You Buy or Build a House?

As you start to search for your dream home, you may be open to the range of options. One of those choices you may face is deciding on whether to buy or build your own. Each option has its pros and cons. For instance, building a home gives you the opportunity to customize a floor plan, however it will take months to construct. If you buy a home, you will have to compromise on the floor plan, but you might be able to move in quicker.

Before you decide on your dream home, let’s compare the two.

Building a House

What are some advantages of building a home?

·         Discounts on materials

Believe it or not, building a home can come with many benefits and opportunities to save money. When working with the suppliers, some suppliers will offer higher discounts the more you’re willing to buy.

·         Everything is new

All the technology is up to date and you hopefully won’t have to worry about repairs right away. Overall, everything in the house is in good working order.

·         Design control

Everything is what you want from the start.

Disadvantage of building a home:

·         Time

The time it takes to build a house takes an average of seven months. This means you will be staying at your old home for quite some time or at a temporary place until its finished.

·         Limitations

Although you can customize your home details to suit your taste of style, upgrades can be a bit pricey.  

Buying a House

What are some advantages of buying a home?

·         Opportunity to flip a home

If you bought a home that needs some renovation, you have the potential to flip the home.

·         Upgrade costs can be delayed

After purchasing a home, you have the time to upgrade your home, allowing you to better budget for the expenses.

·         Easy to visualize

It’s easier to visualize your pre-existing floor plan.

Disadvantages of buying a house:

·         Upgrade costs:

Having the chance to move in your home is great but even the simplest home improvement, such as a kitchen, can be a major time and money investment. 

·         Higher home insurance:

There’s a possibility your home insurance will be higher compared to a new home.

·         Decorating cost:

Besides paying your closing cost, there are other upfront cost you should be worried about. You might have to invest some time to upgrade your home like wallpapers, changing paint colors, or updating floors.

When it comes to building or buying a home, it really depends on the buyer’s goals. I believe it comes down to personal preference. Once you are ready to house hunt, you will know exactly what you’re looking for. Owning a home is a great thing that can happen. What is the right choice, for you?

 

Additionally, if you want a full team of mortgage professionals, we’re happy to help you make the right decision. Please don’t hesitate to reach out to us for more details: 770-552-1000.

We look forward to hearing from you!  

3 Ways Parents Can Help Buy a House for their Kids

Increasing mortgage rates and housing prices may make it tough for your kids to own a home. However, families appear to be helping the younger buyers purchase a home. Before you lend a hand, here are three ways parents can help make it more affordable for first time buyers to purchase a home.

Gift the Down payment Money

When you give money to your child’s down payment, it classified as either a loan or a gift. With a gift, there’s no contract or ongoing commitments.

Your child’s mortgage lender will need proof showing that the money is a gift, not a loan. You will need a gift letter, where you state don’t plan on asking for the money return. Your child’s mortgage lender may also ask for a paper trail verifying where the money came from.

When it comes to taxes, it can be transferred tax-free up to a certain limit. You can give up to $15,000 without filing the gift-tax return.

Buy the house and rent it out to your child

If you can afford buying a second home, you have the option to rent out to your child. This might be a good option if your child can’t qualify for a mortgage. When buying a second home, there’s generally deductions available for property taxes, mortgage interest, repairs, maintenance, and structural improvements. So, what’s the catch? Your kids must pay you rent to be qualify for these tax deductions. So, make sure they aren’t living in the house for free.

Buy and co-own the house

This arrangement is a good opportunity, however, not all mortgage lenders offer homes loans for shared ownership. When shopping around, you would want to double check this financing option.
Co-borrowing helps borrowers overcome a limited credit history. But remember, you would want to keep in mind that the parent’s credit could be affected, making it harder to finance another big purchase later.

If you want a full team of Mortgage Professionals to help you with your decision on what is the best loan option for you, we’re happy to help! Please don’t hesitate to reach out to us at 770-552-1000. We look forward to hearing from you!

Millennials Know What They Want

There have been a lot of myths floating around about millennials not being interested in home purchases. Maybe you’ve heard that they still live with their parents due to student loan debt, don’t have a 20% down payment or they have no interest in settling down.

In reality, more Millennial homebuyers are taking advantage of purchasing a home rather than waiting to purchase a home based on big life events. Millennials are changing the real estate market because they aren’t waiting for marriage or starting a family to buy a home. In fact, Millennials have been watching their rent go up over time and at some point, they realize it might make sense for them to buy instead of signing another lease.

Buying a home is a serious decision that can be stressful. However, Millennials are now buying more homes than ever. They are buying homes on their own terms, within their own budgets. They aren’t afraid to purchase a home. They are willing to travel and relocate for a secure job, safe neighborhood, and their desired lifestyle.

They see the value in homeownership and preparing financially. The internet and smartphones have empowered millennials to do their own research. While most millennials are moving from a rental or out of the family home, they have the time to narrow down their search for a home that they could afford. Millennials aren’t waiting. They are actively seeking homeownership since they’re powering today’s housing market.

If you are one of the many Millennials who are ready to buy a home, we have a full team of Mortgage Professionals to help you decide on what is the best loan option for you! Please don’t hesitate to reach out to us at 770-552-1000. We look forward to hearing from you!

3 Huge House-Hunting Mistakes to avoid at all Costs

It’s that time of the year. Once you get serious about buying a house, it’s time to start house hunting. But before you dedicate your weekend to visiting every open house, you need to know what you’re looking for. Otherwise, the process of shopping for your dream home could get pretty over-whelming!

Here are 3 huge house-hunting mistakes first-time house hunters often make when looking for a home.

House hunting without an agent

Without an agent, you will be flipping through photos of possible homes, researching local trends, market values, and other important information on your own. All of which can be confusing. 

An agent will dive through online databases and other sites to walk you through the information. They will be able to give you some insight about the neighborhoods you’re looking at. They will also help you avoid costly negotiating mistakes when it comes time to make an offer.

Not knowing what you want but expecting perfection.

It’s important to sort out your priorities and make a list before you start shopping for a home. Not every house is the same, after all there are many different types of properties to look at.

Looking for the perfect sized home in a perfect neighborhood with a perfect open kitchen and the best schools, at an affordable price range… it all seems too unrealistic. With such high expectations, you’ll have a hard time searching for the right home. It’s rare to get everything you want on your list, but two out of three isn’t so bad.

Focus on what’s most important for you.

Ignoring the neighborhood

When looking for your dream home, you want to make sure you have some time to tour the neighborhood as well. A bad neighborhood isn’t always obvious, but a little digging is worth it to find out if this is the house for you. Keep an eye out for a lack of parking, take notice of the homes around the area, find out info on your local schools. Are there more than a few homes on the market or empty in the area? This could be a red flag.

You also want to be able to check for local shops, public transportation, or restaurants if those conveniences are important to you.

If you’re ready to make a move, why not learn all about mortgage loans for first time buyers! We’re happy to help you make the best decision. Please don’t hesitate to reach out to us, we look forward to hearing from you! 

6 Terms First-Time Homebuyers Must Know

Your story starts with dreaming, as many do, then searching for your perfect home. You started to have lots of conversations about the kind of house you wanted to shop for. You started to casually shop online. One day, you stopped by just in time to see this one house for sale. So, you called an agent about buying a home and suddenly in blink in the eye you find yourself at closing in a matter of weeks, wondering how everything happened so quickly. Questioning yourself, “Did I pick the right mortgage loan?”

Too often, first time homebuyers rush into homeownership because it’s a sign of independence and adulthood. When truthfully, you don’t know the steps to buying a house or the type of mortgage you need. Whether it’s choosing the wrong location or buying an overpriced home, buying a home is a major part of your life.

Before you allow yourself to search for homes, check out these 5 terms you must know. Especially if this is your first time making one of the biggest purchases of your life.

Fixed-Rate Mortgage

This means the interest rate is set when you take out the loan and will not change. So, your monthly mortgage payment won’t change much over the years.

Adjustable-Rate Mortgage

With an adjustable rate mortgage, the interest rate may go up or down. Many ARMs will start at a lower interest rate than fixed rate mortgages. This initial rate may stay the same for months, or a few years, however, as the interest rate index climbs, so will your own interest rate and monthly payments.

Pre-Qualified

When searching for a home, your first step is to get pre-qualified. This can be confusing because Homebuyers tend to mix it up with pre-approved.

The pre-qualification step allows you to discuss any goals you need to regarding your mortgage with a lender.  It’s based only on the information you provide to the lender where it sums up the amount for which you might expect to be approved.

It certainly helps if you want to start the process of looking for a house.

Preapprovals are much bigger deals. A preapproval is a document that verifies the information during the pre-qualification. If pre-approved, you’ve basically been told that the bank will lend you money for a house.

Conventional

A conventional loan is a mortgage that is not backed or insured by the government, such as Department of Veterans Affairs, or Federal Housing Administration.

Conventional mortgages are ideal for borrowers with good or excellent credit. People with credit problems might qualify for conventional loan depending on the financial institution. 

Appraisal

Let’s say you found a home you are interested in. The asking price is $400,000. It’s the amount you’ve already been approved for by your bank. But is the home worth $400,000?

An appraisal will determine what your property is worth.

Since your dream is $400,000, but the appraisal shows that it’s worth $300,000, then the home is overpriced.

An appraisal also protects the bank from getting stuck with properties that are worth less than they’ve invested. And it protects you from paying too much for a house simply because it’s your dream house.

Escrow

The word can be used in different meanings, but when you think Escrow, think of a third, neutral party. According to Zillow, when you make an offer on a home, you will write an earnest money check that will be placed in escrow. It is being held by the third, neutral party probably set up by your real estate agent. Until you and the seller negotiate a contract and close the deal.

However, if the seller decides to sell the house to somebody else, you would get your deposit back. Overall, it protects both parties.

If you want a full team of Mortgage Professionals to help your decision on what is the best loan option for you, we’re happy to help! Please don’t hesitate to reach out to us at 770-552-1000. We look forward to hearing from you!

Is Buying a Home Your New Year Resolution?

The holiday season is all about traditions, and one of the biggest traditions is making a New Year’s resolution. It’s time for many of you to start thinking about your New Year’s resolution. What if your resolution is owning a home? After all, it’s a new year and a new you.

As we head into 2019, more millennials are aging into their early or mid-thirties and are interested in homeownership. They continue to be the primary drivers of homeownership demand.  

According to Keeping Current Matters, more than half of the purchased mortgages originated by Fannie Mae and Freddie Mac in 2018 were to first-time homebuyers.

So, what is Fannie Mae and Freddie Mae?

Fannie Mae and Freddie Mac are two big reasons we have 30-year fixed home loans in the US. Fannie Mae loans offer down payments as low as 3 percent. While Freddie Mac Loans offer down payments as low as 3 to 5 percent.

Did you know:

•            86 percent of millennial buyers consider owning a home to be more affordable than renting.
• ·         80 percent of millennial buyers say homeownership has positively impacted their long-term finances. 
• ·         60 percent of millennial buyers would encourage their younger selves to start saving for house sooner.

Most millennials feel that the economy’s holding steady, and the time could be right to buy. If that sounds like you, make your new year resolution come true.  Feel free to start the process off right by talking to us. We can answer your questions and help you get pre-qualified.

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