Category: EB Mortgage

Cashing In on Your Second Home

Stay-at-home mandates during 2020 caused many homeowners to realize their home wasn’t accommodating to their lifestyle. At-home offices, media rooms, children’s school areas, gyms, and large yards were suddenly in high demand. These amenities became highly desirable and led many homeowners to invest in a new home.

Instead of purchasing a home near the office or in the same city, many people bought a larger second home farther away from the population to stay safe and have more space. These more spacious houses are also located on lakes or in the mountains, increasing the value.

High demand and low supply caused prices to climb, as primary residences expanded by nine percent in 2020. In every region of the United States and in 19 out of 20 major metropolitan areas, prices increased by double-digits. Sales for second homes increased by 27 percent in 2020.

Houses bought during the coronavirus pandemic were a fantastic investment because they served their function when necessary, and now, with higher sale prices, these second homes can be profitable. As the pandemic recedes and people retreat to their original homes near work, friends, and family, second homes are becoming more of a luxury rather than a necessity.

If a second home improved your day-to-day life during 2020, consider selling one of your houses to cash in on the profit. Decide whether your second home is still necessary to execute your daily functions such as work, school, and extra-curricular activities.

EB Mortgage is a locally-owned mortgage company with experts in new home purchase, refinancing, and commercial loans. Our wholesale rates can’t be beaten. We offer more products, more options, and more solutions. Our “3C” Process is simple: complete our pre-approval request, consider options based on your requirements, and choose the offer that suits your needs best. Call us at 866-246-0516 or e-mail contact@ebwmtg.com today.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.

What Does Closing Entail?

Finding the house you want and making an offer are just the first steps before purchasing a home. After the inspection and appraisal come back adequate, it’s time to submit the required documents. Finally, the last step is to get your keys during closing.

An exciting yet nerve-wracking point in the process, closing is the last thing standing between you and your house. As long as you are working with a great mortgage provider and real estate agent, you can expect closing to be (almost) effortless. Check out our tips below to help get you through the process with ease.

Before closing

  • Arrange for utilities to be transferred, effective on the closing date
    • Internet
    • Gas
    • Electric
    • Water, etc.
  • Perform a final walkthrough a day or two ahead of time

During closing

  • Usually takes an hour or less
  • All parties gather around the table and sign documents
  • Ensure you have your photo ID and funds required for costs (you will have a total ahead of time)
  • Required closing costs:
    • Origination fee
    • Underwriting fee
    • Appraisal fee
    • Credit report fee

After closing

  • First mortgage payment is due the first Friday of the month after the 30 days following the closing
  • You can choose a new homeowner’s insurance provider after you’ve closed on a purchase or refinance and the escrow impound account has been established

Finding your dream home can be difficult, but adding a mortgage and closing process can be overwhelming. You can trust the experts at EB Mortgage to help make the process as seamless as possible.

EB Mortgage is a locally-owned mortgage company with experts in new home purchase, refinancing, and commercial loans. Our wholesale rates can’t be beaten. We offer more products, more options, and more solutions. Our “3C” Process is simple: complete our pre-approval request, consider options based on your requirements, and choose the offer that suits your needs best. Call us at 866-246-0516 or e-mail contact@ebwmtg.com today.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.

Home Maintenance 101

Owning a home is a constant responsibility. Upkeep includes aesthetics, but it’s essential not to overlook smaller, less-noticeable aspects of home maintenance as well. For first-time homebuyers, home maintenance might feel somewhat overwhelming. Where do you start? Look no further.

Monthly

Each month, you can do some easy and inexpensive tasks to prevent extensive maintenance and costly repairs down the road.

  • Check carbon monoxide detectors
  • Test smoke detectors
  • Wash the hood of your stovetop range
  • Clean furnace filters and replace them every three months
  • Unclog or clean the drains in your sinks
  • Inspect toilets and sinks for any leaks

Seasonally

Imperative to maintaining a quality, well-kept home, the changing seasons are a natural reminder to stay on task with these chores.

  • Spring and Summer
    • Clear dead foliage, weeds, and debris from the yard
    • Prune trees
    • Clean gutters by removing debris
    • Sweep patios or decks and look for signs of cracked wood or loose nails
    • Examine exterior siding
    • Power wash your driveway, sidewalk, patio, or deck
    • Dust the garage floor and walls with a broom or leaf blower
    • Ensure your sump pump is draining properly
  • Fall and Winter
    • Winterize your air conditioners
    • Check and clean your fireplace and chimney
    • Unhook your outdoor hose to prevent damage from freezing
    • Remove/store window screens and install storm windows
    • Check radiators and surrounding pipes for leaks or cracks

Annually

Each year, doing these tasks will help keep your home in tip-top shape. If you follow this checklist sooner than later, it will save you from accruing considerable expenses in the future.

  • Ensure the dryer vent is correctly discharging outside and remove lint buildup
  • Drain the water heater tank
  • If you have a septic tank, ensure it’s clean
  • Look for termites or bugs congregating near or within your home
  • Clean your bathroom exhaust fan to remove dust
  • Inspect your roof

Long-Term

Several home elements will sustain wear-and-tear throughout the years, eventually requiring repair or replacement. The list might include:

  • Replacing garage door openers
  • Resealing grout in the kitchen or bathrooms
  • Replacing caulk around windows or doors
  • Cleaning heating ducts
  • Replacing old appliances

It’s imperative to pay attention to these small yet critical factors and address them as they arise to avoid dealing with a substantial bill later down the line. Owning a home isn’t always smooth sailing, but the joys and long-term rewards make it worthwhile. Between growing equity or taking pride in your home, a well-executed maintenance schedule can help you decrease costs for years to come.

We can help you refinance or purchase a new home – contact us today to learn more.

EB Mortgage is a locally-owned mortgage company with experts in new home purchase, refinancing, and commercial loans. Our wholesale rates can’t be beaten. We offer more products, more options, and more solutions. Our “3C” Process is simple: complete our pre-approval request, consider options based on your requirements, and choose the offer that suits your needs best. Call us at 866-246-0516 or e-mail contact@ebwmtg.com today.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.

Tips for an Effortless Mortgage Pre-Approval

Before you start shopping for a home, it’s essential to get pre-approved by a mortgage lender to get a concrete idea of the loan amount, interest rates, and available loan programs. A pre-approval is different from a pre-qualification. The pre-approval process involves gathering information (income and asset documents along with a credit report) to confirm you are pre-qualified, whereas pre-qualification does not include the same paperwork.

Before making an offer on a home, real estate agents will verify the potential buyer has completed a full pre-approval with a reputable lender. Before you start the pre-approval process, ensure you have the necessary paperwork compiled and be ready to fill out the loan application.

Residential History
Most lenders will ask for your residential history, which includes addresses where you have lived over the past two years, as well as the contact information of your previous landlords.

Personal Assets
Statements from your checking, savings, and other bank accounts two months before the application date will be required. Additionally, other asset statements (past two months), including certificates of deposit, individual retirement accounts, stocks, bonds, and other securities, should be disclosed. Cash on hand is not acceptable; a clear paper trail will be required for large deposits. Any real estate holdings (property address, current market value) need to be disclosed to the lender, along with a copy of the mortgage and homeowner’s insurance statement and the most recent HOA payment if applicable.

Employment and Income History
Crucial to the pre-approval process, these documents prove the borrower’s ability to repay the loan. It is ideal to work in the same industry for the past two years; your most recent paystubs, along with a W-2 form, are necessary as well. If the borrower is self-employed or works on commission, they will have to provide the last two years of income tax returns, profit and loss statements, balance sheets, along with employment verification.

Personal Debt
Borrowers’ credit reports will be examined to understand their monthly debt, which is a factor in terms of how much they can afford. New monthly debts or those that might not show up on a credit report (auto or student loans, credit card statements, etc.) are also required.

Down Payment
Limited budgets can be accommodated with mortgage programs for those without enough monetary funds to cover a down payment. Down payment assistance (gifts) can be given from family members; they must complete a gift letter to confirm, however.

EB Mortgage is a locally owned mortgage company with experts in new home purchase, refinancing, and commercial loans. Our wholesale rates can’t be beaten. We offer more products, more options, and more solutions. Our “3C” Process is simple: complete our pre-approval request, consider options based on your requirements, and choose the offer that suits your needs best. Call us at 866-246-0516 or e-mail contact@ebwmtg.com today.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.

Locking vs Floating a Mortgage

The age-old question of “Lock or Float?” is typical in the mortgage industry. Mortgage brokers get asked this question frequently by first-time home buyers. The answer to this question will determine the mortgage rate borrowers ultimately receive.

Interest rates dictate monthly payments for up to 30 years (without refinancing), so this option should not be taken lightly. When you apply for a mortgage, you will be given the option to either lock or float your interest rate. Read on to discover some differences between the two.

Lock

  • Interest rate won’t change as long as you fund your loan prior to the expiration
  • Guaranteeing yourself a specific interest rate that will remain
  • Doesn’t obligate you to go through with the loan but promises a specific rate
  • Refinancing is best because the schedule for closing the loan depends on the lender
  • Doesn’t work as well for borrowers who are buying a home

Float

  • Rates might rise and fall until you finally lock in your interest
  • Ability to take advantage of a lower rate if it comes up, but you must be vigilant
  • Better choice for home buyers
  • Ensure you know exactly what the float rate will be based on

The mortgage experts at EB Mortgage can advise you on which move to make. Contact us to learn more.

EB Mortgage is a locally-owned mortgage company with experts in new home purchase, refinancing, and commercial loans. Our wholesale rates can’t be beaten. We offer more products, more options, and more solutions. Our “3C” Process is simple: complete our pre-approval request, consider options based on your requirements, and choose the offer that suits your needs best. Call us at 866-246-0516 or e-mail contact@ebwmtg.com today.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.

The Biggest Advantage of Homeownership

Home is where your heart – and your wealth – is. The benefits of homeownership are vast; there are numerous financial aspects, but the wealth creation is the most significant. Forming household wealth begins with homeownership. According to Freddie Mac, “Homeownership has cemented its role as a part of the American Dream, providing families with a place that is their own and an avenue for building wealth over time. This ‘wealth’ is built, in large part, through the creation of equity… Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.” For the majority of households that transition into homeownership, the most recent data reinforces that housing is one of the largest positive factors of wealth creation.

Over the past twelve months, increased home equity has revealed the surge of wealth through:

  • Mortgage-free homes account for roughly 38 percent of the total amount
  • The average equity gain of mortgaged homes in the past year was $26,300
  • More than $200,000 is the average equity of currently mortgaged homes
  • Total homeowner equity accounted for a 16.9 percent increase
  • Nearly $1.5 trillion represented homeowner equity

Increasing equity allows homeowners to better manage the challenges arising from the global pandemic. Frank Nothaft, Chief Economist for CoreLogic, said, “This equity growth has enabled many families to finance home remodeling, such as adding an office or study, further contributing to last year’s record level in home improvement spending.”

The growing bank of personal wealth from homeownership has been noticed by many. More people are affected by increasing wealth benefits beyond the scope of just homeowners.

The Rosen Consulting Group released a report outlining the benefits of homeownership. Inside, they explained what an increase in net worth (“the wealth effect”) means to the economy. “In economic literature, the wealth effect is a term used to describe the fact that individuals have a tendency to increase their spending habits when their actual or perceived wealth increases. For homeowners, the latent savings achieved by building equity in their home and the growth in home values over time both contribute to increased net worth. Through the wealth effect, this in-turn translates to households having a greater ability and willingness to spend money across a wide range of other types of goods and services that spur business activity and provide a positive multiplier effect that creates jobs and income throughout the economy,” the report stated.

To purchase a home of your own and create your wealth, contact the EB Mortgage experts today!

EB Mortgage is a locally-owned mortgage company with experts in new home purchase, refinancing, and commercial loans. Our wholesale rates can’t be beaten. We offer more products, more options, and more solutions. Our “3C” Process is simple: complete our pre-approval request, consider options based on your requirements, and choose the offer that suits your needs best. Call us at 866-246-0516 or e-mail contact@ebwmtg.com today.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.

Five Reasons to Sell Your House This Spring

When selling a house, most homeowners are looking for a speedy and profitable deal. If you are waiting for the most lucrative time as a seller, the market is ready for you this spring! Here are five reasons why it’s the perfect time to sell your house.

  1. Homebuyers are in high demand:

Buyer demand is strong right now, and there are many active buyers in the housing market. Showings are up 51.5 percent compared to 2020, according to ShowingTime, which tracks the average number of buyer showings on residential properties. Daniil Cherkasskiy, Chief Analytics Officer at ShowingTime, said, “As anticipated, demand for real estate remains elevated and continues to be affected by low levels of inventory. On average, each home is getting 50 percent or more requests this year compared to January of last year. As we head into the busy season, it’s likely we’ll push into even more extreme territory until the supply starts catching up with demand.”

  • The housing market is empty:

Purchaser demand is skyrocketing, and the market is running out of available houses for sale.  The National Association of Realtors (NAR) reported that home sales are soaring, and the inventory of existing homes for sale is continuing to drop dramatically. Houses are selling as fast as they are hitting the market. NAR revealed insights showing the average house is only on the market for 21 days. Realtor.com reported: “Nationally, the inventory of homes for sale in February decreased by 48.6 percent over the past year, a higher rate of decline compared to the 42.6 percent drop in January. This amounted to 496,000 fewer homes for sale compared to February of last year.”

  • Leverage:

More people are interested in buying than selling right now, creating the ultimate sellers’ market. For this reason, homeowners are in a position to sell with an upper hand in negotiations. Bidding wars are common, according to NAR, and an average of 3.7 offers are being given per house. With houses in such high demand, now is the perfect time to sell for the most favorable terms.

  • Take advantage of your home equity:

CoreLogic published data recently that showed the average homeowner gained $17,000 in equity over the past year. That number continues to grow as home values appreciate. Equity, a forced-savings that grows during homeownership, can be put toward bigger goals such as buying your dream home.

  • Find your dream home:

The past year has thrown our world upside-down, including what many of us need in a home. Since people are spending extra time at home, they re-evaluate homeownership and what is most important. Whether you are looking for a house that can easily accommodate working from home, space for virtual schooling, a home gym or theater, or a larger dining area – selling this spring enables people to find the home of their dreams.

Sellers dominate today’s market. If you have considered making a move and have been waiting for the perfect market conditions, now’s the time.

Found your dream home? The experts at EB Mortgage can help give you the boost you need for a new home purchase.

EB Mortgage is a locally-owned mortgage company with experts in new home purchase, refinancing, and commercial loans. Our wholesale rates can’t be beaten. We offer more products, more options, and more solutions. Our “3C” Process is simple: complete our pre-approval request, consider options based on your requirements, and choose the offer that suits your needs best. Call us at 866-246-0516 or e-mail contact@ebwmtg.com today.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.

Five Fun Mortgage Facts

The process of obtaining a mortgage can be daunting and time-consuming. However, for the amount of work involved – the reward in getting your mortgage pays off in the end. We’ve compiled a few fun facts about the mortgage process to give yourself a break from the daily grind. Read on!

‘Till Death Do Us Part
The word “mortgage” originates from the old French words “mort,” meaning dead, and “gage,” or pledge. Your “dead-pledge” will cease to exist (read: die) once you pay it off, hence the name.

What’s with Red?
If you’ve ever been to Scotland, you might have noticed an excess of red doors. Traditionally, when a homeowner paid off their mortgage, they paint their front door red. Seen as a sort of announcement, the bright color is noticeable to passersby.

Flying High
In the United States, we have our own version of the quirky home exterior tradition. When a homeowner became debt-free, a winged eagle plaque was placed over the front door. While this tradition has already peaked, some homes still bear the metal remnants.

30-Year Mortgages are New
Before the Great Depression, mortgages had short maturity times and usually required a significant down payment. According to “The American Mortgage Historical and International Context,” pre-Depression mortgages had variable interest rates and were negotiated yearly.

More Value
In some countries, mortgages can be taken out for a higher home valuation. In the United States, the maximum value of a mortgage is 97- to 100 percent of the home’s valuation. In the Netherlands, borrowers can take out loans for as much as 115 percent of the home’s value; in the United Kingdom, they can borrow up to 110 percent.

To learn more information regarding a home or commercial mortgage, contact the experts at EB Mortgage today.

EB Mortgage is a locally-owned mortgage company with experts in new home purchase, refinancing, and commercial loans. Our wholesale rates can’t be beaten. We offer more products, more options, and more solutions. Our “3C” Process is simple: complete our pre-approval request, consider options based on your requirements, and choose the offer that suits your needs best. Call us at 866-246-0516 or e-mail contact@ebwmtg.com today.

DACA Recipients now Eligible for FHA Loans

The Federal Housing Administration (FHA) announced a new opportunity for those protected under the Deferred Action for Childhood Arrivals (DACA) program. Since January 19, 2021, those individuals can apply for mortgages backed by the FHA. A previous stipulation barred “non-US citizens without lawful residency” from applying for FHA-insured mortgages; the new opportunity for these DACA members reverses that regulation.

DACA is a United States immigration policy that allows some individuals with unlawful presence (illegally brought to the country as children) to receive a two-year renewable period of deferred action from deportation. These individuals are also eligible to obtain a work permit as long as they do not have any felonies or serious misdemeanors on their records.

FHA-backed loans are popular options for first-time homebuyers because they require a minimum down payment, lower credit score requirements, and higher debt-to-income ratios.

DACA members have all the same FHA requirements as other borrowers, which include:

  • The property must be the borrower’s principal residence
  • The borrower must have a valid Social Security number (except those employed by the World Bank, a foreign embassy, or an equivalent employer identified by the Department of Housing and Urban Development)
  • The borrower must be eligible to work in the United States
  • The borrower can provide an Employment Authorization Document (EAD) issued by the United States Citizenship and Immigration Service (USCIS)
  • The borrower must satisfy the same requirements, terms, and conditions as those set for other United States citizens

Countless individuals across the United States are now eligible for homeownership. FHA loans are a fantastic option for first-time homebuyers. DACA recipients who might not have qualified previously can now obtain a home.

Want to learn more about this new opportunity? Contact the professionals at EB Mortgage today.

EB Mortgage is a locally-owned mortgage company with experts in a new home purchase, refinancing, and commercial loans. Our wholesale rates can’t be beat. We offer more products, more options, and more solutions. Our “3C” Process is simple: complete our pre-approval request, consider options based on your requirements, and choose the offer that suits your needs best. Call us at 866-246-0516 or e-mail contact@ebwmtg.com today.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.

EB Mortgage Site Goes Live

EB Mortgage has a new website! We launched in February 2021 and we’ll keep you up-to-date with the latest news, tips/tricks, updates, and information on our blog. We are a wholesale mortgage company providing our clients with a new home purchase, refinance, and commercial loan options. With our low rates, we have more products, more options, and more solutions.

We offer three different types of services:

Purchase
Buying a new home? We can help! Let us determine what you can afford based on your budget. We combine multiple financing options, and our extensive knowledge will steer you in the right direction throughout the process. Our experts have all of the tools needed to help ease your stress and streamline your experience.

Refinance
Need money now? We can help! Refinancing your home enables you to lower your rate and reduce monthly payments and interest costs. Credit card or other debts can be repaid entirely if the borrower qualifies. Adjustable-rate mortgages (ARM) can be converted to a more secure, fixed-rate mortgage. Two mortgages can be merged to lower the overall rate. With so many options to choose from, our clients successfully trek the refinance process with our experts’ professional guidance.

National Commercial Lending
Operating a commercial property? We can help! Commercial loans typically cover major capital expenditures and operational costs. At EB Mortgage, we work with companies small and large to allocate assets for projects that the business might not have otherwise been able to afford. We offer several options to suit our clients’ needs.

Want to learn more about our purchase, refinance, or commercial lending programs? Our experts are standing by to help get you pre-approved today.

EB Mortgage is a locally-owned mortgage company with experts in a new home purchase, refinancing, and commercial loans. Our wholesale rates can’t be beat. We offer more products, more options, and more solutions. Our “3C” Process is simple: complete our pre-approval request, consider options based on your requirements, and choose the offer that suits your needs best. Call us at 866-246-0516 or e-mail contact@ebwmtg.com today.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.