As we usher in the promise of a new year, many of us contemplate resolutions that bring positive change into our lives. If buying a new home is on your list of goals for 2024, we've got you covered. In this guide, we'll walk you through five crucial steps to ensure you're in the best financial shape to embark on the exciting journey of homeownership.

Step 1: Start Saving for a Down Payment (Boost Your Savings)

The hurdle of saving for a down payment is a common concern for prospective homebuyers However, here's the good news: 3% down payment options are now common! The key is to kickstart your savings early. Check out our website or give us a call at 888-616-9885 to explore tailored loan options that suit your financial goals.

Need some quick saving tips? We've compiled a list of 10 easy ways to help you get started.

1. Save your raises, bonuses, and tax returns
2. Transfer a fixed amount into a special savings account every month or even every paycheck
3. Consider a one-year vacation hiatus
4. Negotiate a raise
5. Trim unnecessary expenses
6. Liquidate investments
7. Explore part-time work opportunities
8. Seek financial assistance from relatives
9. Get a financial gift
10. Inquire about down payment assistance programs

Remember, the earlier you start saving, the better.

2. Check and Improve Your Credit Rating

Your credit score is the foundation of your mortgage application. Strengthening it can unlock better mortgage options. Learn the ropes of good credit practices, from tracking your spending to using credit cards wisely. No matter what your current score is, there's always room for improvement. Foster good credit habits by:

• Recording your spending
• Staying current on debt payments
• Avoiding exceeding your credit limit
• Using credit cards judiciously
• Postponing significant purchases (e.g., a new car or furniture)

3. Tame Your Debt

Manage your debts strategically to positively impact both your credit score and debt-to-income ratio. Prioritize paying down debts to enhance your financial profile and afford more home. Bottom line, the less debt you have, the more home you will be able to afford.

4. Find Your Dream Home:

With your finances in order, it's time to identify your dream home's key features. Consider factors such as:

• Number of bedrooms
• Number of bathrooms
• Square footage
• Location
• Neighborhood
• Schools
• Local traffic/public transportation

5. Get Pre-Approved for a Loan:

Before embarking on your home search, secure a pre-approval. This involves a comprehensive assessment of:

• Credit score
• Income and finances
• Tax returns
• Employment status
• Current debts

A pre-approval not only clarifies your budget but also signals to sellers that you're a serious and prepared buyer.

Bottom Line:

Ready to turn your homeownership dreams into reality? Click below to start the pre-approval process or call our expert loan officers at 888-616-9885 for personalized assistance.

With these steps, you're well on your way to making your dream home a reality in 2024. Happy house hunting!

 

Before you chase the lowest interest rate for your next mortgage, consider a few tips from Grenway Mortgage.

Be wary of comparing only APRS

The annual percentage rate (APR) expresses the total cost of interest AND fees as an interest rate over the full term of a loan. The problem is, most people pay fees up front and have their loan for far less than the full terms. This makes the APR inaccurate.

Insider Tip:

1. Compare loan costs and monthly payments separately for a better understanding of exactly what you'll pay and when.
2. If you plan to sell or refinance in a few years, any savings from a lower rate may not make up for high upfront fees.

Be wary of Advertised Interest Rates:

Advertisements often reflect the lowest rate available only for a very limited time and only to those with high credit scores and large down payments. Many factors, including your property type, down payment, credit, time to close and more, will impact your actual rate.

Insider Tip:

1. A Greenway Mortgage Loan Officer will ask the right questions to help you access the optimal rate and cost combination for your specific scenario.

The Fed Does Not Set Mortgage Rates

The media dutifully reports policy rate adjustments by the Federal Reserve Board, but mortgage rates do not change in tandem. They will more often more in advance of Fed Announcements.

Insider Tip:

1. Mortgage professionals follow the mortgage market every day and are a better source than the media for anticipated and up-to-the-minute rate information.

Bottom Line:

A no-obligation chat with a Greenway Mortgage Loan Officer can save you money! When you're ready to take the next step, we are happy to consult with you to devise a plan for you and your transaction. Give us a call 888-616-9885.

 

Feeling a bit Grinchy about diving into the real estate market during the holiday season? Think again! With interest rates hitting a welcoming low, now is the perfect time to reconsider your stance on buying or selling a home. In this blog post, we'll explore three compelling reasons why this winter could be the ideal time for you to make a move.

Affordability Soars with Lower Interest Rates

One of the most significant factors influencing the current real estate market is the decline in interest rates from their recent highs. Your dream home just became more affordable than ever! With lower rates, your monthly mortgage payments decrease, making homeownership a more attainable goal. This financial advantage could be the key to unlocking the door to the home you've always wanted.

Less Competition Means Better Deals

While others are staying indoors to avoid the winter chill or getting caught up in holiday festivities, you'll find yourself with a unique advantage—less competition. With fewer buyers and sellers in the market, you'll have more space to negotiate the best deal possible. Sellers may be more motivated to close a deal, and you, as a buyer, can capitalize on this opportunity to secure a favorable price or terms.

Real Estate Agents Have More Time for You

The winter months typically bring a slowdown in real estate activities, giving agents more time to focus on your specific needs. With fewer clients to attend to, your real estate agent can provide you with personalized attention and assistance. Whether you're on the hunt for your dream home or seeking the perfect buyer for your property, the winter season allows for a more relaxed and dedicated approach to meeting your goals.

Bonus Reason: Lower Interest Rates – A Game-Changer! Yes, it's worth repeating! Lower interest rates are a game-changer in the real estate market. The recent rate adjustments make buying or selling during the holiday season even more enticing. If you've been on the fence, now is the time to take advantage of these historically low rates and turn your real estate aspirations into reality.

Bottom Line

Contrary to popular belief, the holiday and winter months can be the most wonderful time of the year for the real estate market. With lower interest rates, reduced competition, and agents with more time on their hands, the advantages are too good to ignore. Are you ready to make a move? It only takes a few minutes to get started, and the team at Greenway Mortgage is here to help you navigate the process. Join the winter real estate wave and turn your homeownership dreams into a festive reality!

 

Welcome to the exciting world of homeownership! As you step into the realm of owning your own space, a myriad of possibilities and responsibilities unfolds. Understanding what to expect is key, and that's why we've crafted these 10 essential tips. Consider this your starting point, guiding you in the right direction and ensuring a smooth journey into the exciting world of homeownership.

#1. Tackle Projects Methodically

Prioritize tasks and take projects on one at a time. This approach not only helps manage your time and resources efficiently but also ensures that no aspect of your new home is overlooked. Plus, it's a financially savvy approach—pay for projects as you go, saving you money in the long run. Living in the house provides crucial insights into your genuine needs and desired changes.

By tackling one project at a time, you'll thank yourself later for the thoughtful and effective approach to home improvement.

#2. Build an Emergency Home Fund   

Unexpected repairs are part and parcel of homeownership. Establishing an emergency fund will provide you with financial security when unforeseen issues arise, giving you peace of mind. Whether it's a malfunctioning AC system or plumbing problems, having saved up money will prove invaluable. You never know when you'll need it!

#3. Be Prepared to Pay Property Taxes at the End of the Year

Prepare for the inevitable—those pesky property taxes. Stay ahead of the game by anticipating property taxes due at the end of the year.  Planning ahead for this expense will help you budget effectively and avoid any last-minute financial surprises.

#4. Change Locks Before You Move In

Enhance your home's security by changing locks before moving in. This simple yet crucial step ensures that you have control over access to your new home.

#5. Keep all Home Warranties and Manuals in a Safe Place

As a new homeowner you will inherit a plethora of appliance manuals and warranties! Be sure to keep all warranties and manuals in a designated safe place like a filing cabinet. This organized approach makes it easier to locate important documents when needed, saving you time and frustration.

#6. Replace Air Filters Regularly

Maintain a healthy living environment by replacing air filters regularly. This small but impactful task improves air quality and helps your HVAC system function efficiently. To make it even easier, set a reminder on your cell phone, eliminating the risk of forgetting when the next filter change is due. Your lungs and HVAC system will thank you!

#7. Take Advantage of Tax Benefits

Take advantage of tax benefits available to homeowners. Familiarize yourself with potential deductions to maximize savings and keep more money in your pocket. One significant advantage is the mortgage interest deduction, allowing you to trim your taxable income by the sum spent on mortgage interest annually.

For a deeper understanding, consult with your accountant, who can provide tailored insights into the tax advantages waiting for you!

#8. Consider Painting Before Moving In

Thinking of adding a personal touch to your new space? Consider painting before moving in. It's easier to tackle this project in an empty home, allowing you to customize your living space to your liking. Plus, you won’t have to smell and breathe in those less than pleasant paint fumes!

#9. Locate a Trustworthy Handman

Having a reliable handyman on speed dial is a homeowner's secret weapon. Find someone trustworthy who can help with repairs and maintenance tasks, which will give you peace of mind. From fixing leaky faucets and electrical issues to handling painting projects or installing new fixtures, a versatile handyman is the key to maintaining your home's functionality and aesthetics.

Afterall, your house will thank you for having a skilled and dependable professional at your fingertips!

#10. Be Neighborly

Cultivate positive relationships with your neighbors. A friendly community enhances your living experience and provides a support system for any unforeseen challenges. After all, you never know when you might need a friendly neighbor to collect your mail, tend to your plants, or take care of your dog when you're away!

Bottom Line:

Embarking on the journey of homeownership comes with a share of responsibilities. By adhering to these tips, you're not just ensuring the longevity and functionality of your new home but also cultivating a positive and harmonious living environment. From thoughtful project management and financial preparedness to fostering neighborly connections, these insights pave the way for a fulfilling homeownership experience. Remember, your home is not just a place; it's a canvas for memories and a haven for your dreams.

Here's to building a home that reflects not only your style but also the warmth of a welcoming community. Welcome home!

 

 

As the holiday season draws near, our thoughts naturally turn to the joy of giving. While we all appreciate receiving gifts for special occasions, there's something truly extraordinary about presenting a gift that can make someone's homeownership dreams come true. If you or someone you know is looking to purchase a home during this holiday season, consider the incredible gesture of providing a down payment as a gift.

However, using gift funds for a down payment involves specific guidelines and considerations that are essential to understand. In this article, we'll explore the different loan programs that allow borrowers to use gift funds towards their down payment.

FHA Loan Gift Fund Guidelines

Gift Funds Eligibility for FHA Loans:

• If you apply for an FHA loan, your gift funds must be from family or another eligible donor.

• A close friend with a clearly defined and documented interest in the borrower.

• The FHA allows gifts from your employer, a labor union or from charitable organizations.

• You can use funds from government agencies or public entities that help low-to-moderate income or first-time home buyers.

• Cousins, nieces, and nephews are not able to offer gift money under standard family guidelines.

How Can FHA Gift Funds Be Utilized?

• Gift funds can be used to cover things such as the down payment, FHA closing costs, or even the reserves needed for approval. In addition, if the gift is large enough, it could cover everything mentioned above.

• Your down payment can come from gift funds if your credit score is above a certain amount. However, the down payment used for an FHA loan cannot come from another loan or source where the down payment needs to be repaid (i.e., another loan or credit card advance)

• Finally, FHA Gift Funds can be used on primary residences only.

Conventional Loan Gift Fund Guidelines

Most conventional mortgage loans allow homebuyers to use gift funds for their down payment and closing costs, provided the gift comes from an approved source, such as family members.

Approved Sources of Conventional Loan Gift Funds:

Fannie Mae & Freddie Mac define family as:

• Parent
• Children (including adopted, step and foster children)
• Sibling (including step-sibling, foster and adopted siblings)
• Grandparent (including great-grandparents, step and foster grandparents)
• Aunt and uncle (including great, step and foster aunt or uncle)
• Niece or nephew (including step-niece or nephew)
• Cousins (including adopted and step-cousins)
• In-laws (including parents and grandparents, aunt, uncle brother- and sister-in-law)
• Domestic partner
• Fiancé

What Can Conventional Loan Gift Funds Be Used For?

• Gift money can only be used on primary residence and second homes.

VA / USDA Loan Gift Fund Guidelines

VA Home Loans  and USDA  Home Loans do not have many restrictions when using gifts for a down payment.

Who Can & Can’t Give VA/USDA Loan Gift Funds:

• Must come from a family member.

• The gift cannot be from someone who is an interested party. An interested party would be someone who has a role in your transaction, such as a builder or developer, another broker, a real estate agent or the seller.

What Can VA/USDA Loan Gift Funds Be Used For?

• You can use gift money for your down payment with a VA Home Loan and a USDA Home Loan.

• Because they are 100% financing, there is no limit on the amount of the gift.

Can a Mortgage Gift be Repaid?

No, a mortgage gift is just that – a gift. The giver provides funds to a homebuyer with no expectation of repayment.

Will I Need to Provide a Gift Letter?

Yes, before using gift funds, you must submit a gift letter to your lender. This letter confirms your relationship with the gift giver and affirms that the funds are a gift with no expectation of repayment. Some things to include inside your letter are:

• Dollar amount of gift

• Date funds were transferred

• Gift Giver’s signed statement that no repayment is expected

• Gift Giver’s name, address, and phone number along with the relationship to the borrower & buyer

• The address of the property being purchased

Check with your loan officer to see what information is required in your gift letter.

Keep in mind, gift funds in all cases will need to be documented. If you know you are about to receive a holiday infusion of cash, doing so by check is the easiest and often most convenient way to satisfy the lender.

What If a Down Payment Gift Isn't an Option?

Not everyone has the fortune of receiving a mortgage gift, but there are alternatives for those with limited down payment funds. Saving more money or extending your home-buying timeline to accumulate funds is an option. You can also explore ways to increase your cash flow, like taking on a second job or a side hustle. Additionally, consider down payment assistance programs or low or no down payment loan options, such as VA, USDA, FHA, or conventional loans, depending on your eligibility.

Gift funds can make homeownership achievable for many aspiring homeowners. If you have questions or want to learn more about how gift money works, reach out to one of our expert Loan Officers today.

Wishing you a joyous holiday season from Greenway Mortgage!