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!

 

As the leaves begin to change and the air turns crisp, it's that time of the year when we welcome the beauty of fall into our homes. While hanging wreaths and lighting pumpkin spice candles add a cozy touch to the season, there are essential home maintenance tasks that every homeowner should tackle to ensure a smooth transition into autumn.

In this blog, we're providing you with a free Fall Home Maintenance Checklist to help you prepare your home for the changing seasons.

Why Fall is the Perfect Season for Home Maintenance

Fall offers the ideal conditions for taking care of your home. With generally dry weather and moderate temperatures, it's the perfect time to address both the interior and exterior of your house. 

What's On The Fall Home Maintenance Checklist?

This checklist covers the essential tasks to ensure your home is ready for the fall season. Most of these tasks can be completed without professional assistance, but if you're unsure or encounter any major issues, it's always wise to consult a professional.

Exterior Maintenance

• Rake leaves
• Aerate Lawn
• Repair/Replace Siding
• Examine Pool Cover for damage
• Install Storm Windows/doors & Remove Screens
• Plus so much more!

Interior Maintenance

• Check Fireplace for Damage/Hazards
• Check Water Heater for Leaks
• Vaccumn Lint from Dryer Vent 
• Clean Humidifiers and Vacuum Air Filters
• Replace Batteries in Smoke & Carbon Monoxide Detectors 
• Plus so much more!

Get Started Today

Don't wait until the last leaf falls to get started on your fall home maintenance. Download our free Fall Home Maintenance Checklist now to keep your home in top shape as you enjoy the cozy vibes of autumn. Get ready to embrace the season with a warm, safe, and well-maintained home.

CLICK HERE TO DOWNLOAD

Happy Fall from your friends at Greenway Mortgage!

 

 

Buying your first home is an exhilarating milestone, signaling a significant investment and the fulfillment of a lifelong dream. It's a place to call your own, a sanctuary where memories are made. However, amidst the excitement, the homebuying process can become overwhelming, leaving you juggling multiple tasks and making crucial financial decisions. Even with the support of experienced friends and family, there are often hidden aspects that catch you off guard.

Have no fear. We’re here to shed light on those untold secrets and provide you with invaluable insights. Armed with this knowledge, you'll be better equipped to navigate the journey of purchasing your first home, ensuring a smoother, less stressful experience that ends with you proudly clutching the keys to your dream abode. Let’s dive in!

#1: What I Qualified for Was Not the Same as What I Could Afford

Getting pre-approved is certainly step number one. How much loan you can afford is based on things like your credit history and scores, income and assets, and current liabilities. When all these factors are taken into consideration, you’ll get a number that you’re qualified for borrowing. This is the maximum mortgage loan you can qualify for.

It’s important to understand that qualifying for a mortgage loan does not mean you can afford it.

Before you start house hunting, it’s important to figure out what you can realistically afford as a house payment (principal and interest AND taxes and insurance combined).  If you purchase a home at the top of what you’re approved for, you might have a mortgage payment you can barely afford.  By setting a budget that aligns with your financial situation, you can avoid overextending yourself and find a home that is truly affordable.

#2 Staying Organized is Key | Mortgage Application Checklist

The homebuying process involves a significant amount of paperwork, and it's easy to underestimate the importance of being organized. From financial documents to inspection reports, having everything readily available can save you time and frustration. Creating a dedicated folder or digital storage system for all the necessary paperwork will help you stay on top of the process and provide easy access when needed.

First, to streamline your mortgage application process and ensure you don't miss any crucial documents, it's beneficial to utilize a mortgage application checklist. Our Mortgage Application Checklist can help you compile all the necessary paperwork, such as income verification, bank statements, tax returns, and employment history. Having a comprehensive checklist at hand will make the application process much more efficient and increase your chances of a smooth approval. It’s a great way to start the process; be sure to download it here.

#3: You Don't Need a Large Down Payment

One common misconception when buying a home is that a large down payment was a requirement. While a substantial down payment can reduce your mortgage amount and potentially lower your interest rate, it is not always necessary. In fact, the average down payment for first-time homebuyers in 2021 was just 6% of the purchase price.

Fortunately, there are various mortgage options available that require a lower down payment, such as FHA loans or conventional loans with private mortgage insurance (PMI). Understanding your options can help you navigate the down payment requirements more effectively. Check out our First-Time Homebuyer Resources and Mortgage Programs here.

We understand that saving up for a 20% down payment can be a lengthy process, particularly in today's economy. However, by seizing the opportunity to buy a home sooner rather than later, you can put an end to renting and start building equity in your own property. Remember, time is of the essence when it comes to securing your financial future through homeownership.

#4 Mortgage Insurance Was a Help – Not a Hindrance

Mortgage Insurance is often viewed as an additional expense and a burden. However, it serves as a helpful tool.  Mortgage insurance protects the lender in case you default on your loan, but it can also benefit you as a buyer. With mortgage insurance, lenders may be more willing to approve your loan with a smaller down payment or a lower credit score. This allows you to enter the housing market sooner and potentially secure a better interest rate. It's important to weigh the costs and benefits of mortgage insurance and understand how it can work to your advantage.

#5 Your First Home Doesn’t Need To Be Your Last Home

Did you know that the average homeowner stays in their first house for approximately 5 years? When embarking on the journey of purchasing your first home, it's common for first-time buyers to have a more modest budget, leading to compromises during the buying process. This often means opting for a starter home rather than your dream home right from the start.

But fear not, because this steppingstone serves a greater purpose. A starter home presents a fantastic opportunity to build equity, laying the foundation for future endeavors. It allows you to establish a solid financial base so that when the time is right, you can transition to your forever home—the one that perfectly aligns with your dreams and aspirations. Embrace the concept of a starter home as a valuable investment in your future, propelling you towards the realization of your ultimate homeownership goals.

#6 Marry the House, Date the Rate

We often say, “Marry the house. Date the rate.” This ultimately means, don’t let interest rates deter you because you can always refinance when the time is right. If you find the perfect house, don’t wait! The rate may not be what you hoped for, but again there will be opportunities to refinance in the future.

Committing to a home you love doesn’t mean you have to commit to the financing available now forever. You can always change your financing to more favorable terms later should better rates become available. Think of it this way. If rates continue to get higher, you’ll be glad you married the house when you did!  

#7 There is a Fee Associated with Almost Everything

It’s important to understand that other than your down payment on a house, there are other fees associated with the transaction. These small fees add up, that’s why it’s always good to be overprepared than underprepared.

Tip: Budget 1-2% of the house value to cover fees such as:

• Homeowner Association Fees (HOA); if applicable

• Appraisal Fee

• Credit Check Fee

• Title Inspection

• Closing Costs

• Private Mortgage Insurance (PMI)

• Homeowners Insurance

• Property Taxes

• Home Inspection Fee

The bottom line: buying a house requires upfront and ongoing fees.

#8: Home Appraisal and Inspection: Safeguarding Your Investment

In the quest to expedite the homebuying process, you may come across advice suggesting that skipping the home inspection is a viable option. However, this approach falls short of ideal. Both the home appraisal and home inspection play critical roles in the homebuying journey.

Let’s begin with the home appraisal, which determines the value of the property.  An appraiser will observe the property, analyze the data, and report their findings to their client. For the typical home purchase transaction, the lender usually orders the appraisal to assist in the lender’s decision to provide funds for a mortgage. In today’s sellers’ market having an appraisal is extremely important especially when low inventory is driving an increase in bidding wars which can increase home prices. When sellers are in a strong position like this, they tend to believe they can set whatever price they want for their house under the assumption that competing buyers will be willing to pay more. Lenders will only allow the buyer to borrow based on the value of the home. All in all, this is what helps keep home prices fair. If there’s every any discrepancy between the appraisal and the sale price of the home, your Real Estate Agent can help you navigate any additional negotiations.

Conducted by a professional inspector, this crucial step helps determine the current condition and safety of the property before finalizing the sale. From assessing the age of the roof to examining the HVAC system and other essential components, the inspection sheds light on any potential issues or necessary repairs. Armed with the inspection report, you as the buyer can discuss and negotiate with the seller, addressing any concerns before committing to the transaction. Your experienced Real Estate Agent will be invaluable in guiding you through this process, ensuring your interests are protected.

To delve deeper into the intricacies of a home inspection, we invite you to explore our recent blog post titled "What Should You Expect From a Home Inspection." Inside, you'll find expert advice on selecting an inspector, understanding the inspection process, and gaining insight into the areas that inspectors meticulously review.

Remember, when it comes to safeguarding your investment, both the appraisal and inspection are indispensable. By entrusting professionals and relying on the expertise of your Real Estate Agent, you can confidently navigate these critical steps, ensuring peace of mind and securing a sound investment for your future.

Bottom Line:

Buying a home for the first time is an exciting but complex process. Understanding the difference between what you qualify for and what you can afford, staying organized with paperwork, utilizing a mortgage application checklist, realizing that a large down payment is not always necessary, and recognizing the value of mortgage insurance can all contribute to a smoother homebuying journey. By arming yourself with knowledge and taking the time to research and prepare, you can make informed decisions and find the perfect home that fits your budget and lifestyle.

We are here to help you every step of the way. Here are some helpful resources to get you started:

• Contact Us
• Meet the Greenway Team
• Buying Your First Home
• First-Time Homebuyer Resources
• First-Time Home Buyer Guide
• What to Expect During the Mortgage Process
• Mortgage Calculators
• Mortgage Terms
• Loan Products
• Get Pre-Approved Today
• Ready To Get Started? Apply Now