Category: EB Mortgage - page 3

Conventional loans are not the only way borrowers can get approved – alternative loans include non-conforming loans, stated income loans, Alt-A loans, portfolio loans, and others. Where conventional loans cannot provide purchasing power, alternative loans can work for the right buyer. 

Alternative loans are meant to assist unconventional borrowers to secure financing. Atypical buyers can include those who are self-employed, receive income from unconventional sources, don’t have established credit, have high debt-to-income ratios, credit struggles, or exhibit other unique life experiences that complicate securing a traditional loan.

For certain property types, it can be challenging to secure a traditional or government-backed loan; alternative loans are also useful in these cases. 

The requirements for alternative loans differ from those for conventional loans. Usually, they are more relaxed and do not make the same requisites. For example, buyers might not have to show all of their income sources or might be able to receive a loan even if their employment history is inconsistent or challenging to verify.

Some alternative loans include: 

• Low Down Payment: Borrowers can apply for a low- to nonexistent down payment. Since there is no official governmental oversight, the requirements vary between lenders, but overall, the rules are more flexible. 
• Credit: Buyers with credit issues (no credit established, short credit history, credit problems, etc.) can benefit from alternative loans. Usually, this happens when the borrower is very young or has no credit cards or other debt in their name.
• Debt-to-Income: A high debt ratio to income can immediately disqualify a borrower for standard loans. Stated income loans are an alternative that does not subject the buyer’s income to verification. 
• Employment: People who are self-employed, newly employed, promoted, career change, etc., might struggle to secure a traditional loan. In these cases, an alternative loan is best to get them into a house they truly love. 

The right lender can help you apply for an alternative loan. Work with an experienced mortgage advisor to ensure you fully understand the fine print and can be led in the right direction. 

Unconventional loans often include a higher interest rate; even with a good rate and adequate terms, it is important that borrowers applying for alternative loans are honest and truthful about what they can afford. 

Are you looking to secure an alternative loan? 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 or e-mail us today!  

Written by the digital marketing team at Creative Programs & Systems: https://www.cpsmi.com/ 

Making a first impression with potential buyers can be a hit-or-miss scenario. In today’s seller’s market, it’s important to hook buyers…but how? The simplest answer: curb appeal. 

Your home’s appearance can have a huge impact on how much money a potential buyer is going to fork over. Houses with a poor exterior sell for seven percent less than those that are polished and attractive, according to a recent study. 

Business professor Sriram Villupram at the University of Texas at Arlington programmed computers to recognize features such as trimmed shrubs, manicured lawns, and inviting flowers on more than 400 Google Street View images. 

Villupuram said, “The value of curb appeal could be as high as 14 percent during cold residential markets. This study also brings to light the value of homeowners’ associations and their covenants, which tend to maintain a uniformly positive curb appeal for the neighborhood as a whole.” 

Read on for seven tips and tricks for making your home more appealing to potential buyers.

Landscape
A 2019 survey of real estate agents found that well-landscaped homes sell between one and 10 percent more than those with no landscaping. Potted plants, window boxes, hanging planters, trimmed and edged grass, raked leaves, pruned trees, etc. are all surefire ways to boost curb appeal. If you have a patio or deck, don’t leave it empty. Add a bench or some chairs to invite buyers. 

Polish
Pull out your (or rent a) powerwasher and start cleaning your driveway, porch, siding, etc. Use some elbow grease and wipe all windows, clean walkways, handrails, and more. Sparkling clean windows let more natural light into your home, making it much more appealing. 

Replace
Swap out old light fixtures for new ones, paint (or replace) your front door, and add bright, LED light bulbs throughout your home to make it appear more refined. If your home has drab, old house numbers, replace those with new ones as well. Don’t overlook your mailbox, either! 

Upgrade
If your appliances are even slightly out-of-date, try updating some – or all – to give your home a sleeker look. If your home is not energy-efficient, consider upgrading windows, smart thermostats, light bulbs, and home appliances. 

Are you looking for a mortgage? You’ve come to the right place. Contact us 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 or e-mail us today! 

Written by the digital marketing team at Creative Programs & Systems: https://www.cpsmi.com/

The housing market has never been as hot as the last couple of years. A combination of a low inventory, supply chain issues, and high demand has sent prices through the figurative roof at a record pace.

No longer bound to downtown offices, remote workers can save thousands on housing costs by migrating to the suburbs and beyond. The most significant contributor for those moving has been record-low interest rates on mortgages.

But with news that the Federal Reserve is raising interest rates on fixed-rate home loans, many are wondering if housing prices will fall as a result. Unfortunately, the truth is that the answer isn’t a universal one as some markets will see slow growth while others may not even notice.

Right now, the interest rate increase is driving demand from those who don’t want to miss out on locking in a low rate for the next 30 years. While higher lending costs tend to make buyers require a lower sales price, the focus has instead been on taking the plunge solely for the interest rates.

The interest rate of a mortgage makes a massive difference in the overall cost. For example, a $400,000 home at 2.8% will end up with about $200,000 in interest over the life of the loan. On the other hand, if interest rates hit 6%, the total interest paid would exceed $450,000. That’s an additional $250,000 for the same house, which is why buyers are so keen to snag the lowest rate possible.

Another area impacted by interest rates is the rental industry. If interest rates increase too much, potential home buyers may rent instead. This possibility has many looking to invest in rental properties with historically low rates.

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 team at Creative Programs & Systems: www.cpsmi.com.

In March, interest rates were increased – with six more increases scheduled before year end – marking the most aggressive pace in over 15 years. The Federal Reserve hopes to thwart rising inflation, which is at its highest levels in four decades.

Rising to a point between .25 percent and .5 percent, the benchmark federal-funds rate is increasing for the first time since 2018.

When the coronavirus pandemic hit the United States in 2020, rates were nearly at zero. Now, officials have hinted at raising the rate to nearly two percent by the end of 2022. By the end of 2023, rates could inflate as high as 2.75 percent, the highest since 2008.

Federal Reserve Chairman Jerome Powell said, “As I looked around the table at today’s meeting, I saw a committee that’s actually aware of the need to return the economy to price stability and determined to use our tools to do exactly that.”

The ballooned interest rates are a sharp reversal from only two years ago, when rates were near zero and the economy received a plethora of support as countless shutdowns plagued the country. Record job losses were recorded, along with a severe two-month recession.

Economic output has since recovered, thanks to huge federal stimulus and vaccination availability, but Federal officials were weary that inflation might not diminish as quickly as they once expected. The annual wage growth is near its highest pace in years, and the unemployment rate has fallen to 3.8 percent in February.

The average 30-year fixed-rate home loan jumped above 4.25 percent recently, according to the Mortgage Bankers Association. This escalation is an increase of almost a full percentage point since late 2021.

Housing vacancy rates have been at their lowest levels in decades due to a limited supply of homes and apartments combined with steady job gains. Through the past six months, rates went up at a 5.5 percent annualized pace, the largest increase since 1986, according to the Labor Department.

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 (616) 228-8797 or e-mail contact@ebwmtg.com today.

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

There are plenty of reasons to have an energy-efficient home, one of which includes lower electrical bills. The Energy Efficient Mortgage (EEM) program from Fannie Mae, titled HomeStyle®, is a great way to go green, but what does it consist of, exactly? Read on to find out.

Energy-Efficient Mortgages are used to finance houses that are already energy-efficient (Energy Star-certified) or those that need energy improvements. These loans allow borrowers to qualify for a larger mortgage than they would otherwise.

Energy-efficient mortgages can be for purchasing or refinancing and allow approved borrowers to buy energy-efficient homes or pull cash out of their equity to fund energy-efficient repairs or updates to the landscaping.

Some energy-efficient improvements include:

• Water efficiency devices
• Renewable energy sources (solar panels, wind devices, geothermal)
• Storm surge barriers
• Earthquake foundation retrofitting
• Brush and tree removal in fire zones
• Mud and water retaining walls
• Air sealing, insulation, windows, doors, etc.
• Radon remediation

Energy-efficient mortgages can be financed for up to 15 percent of the appraised property value. There are a multitude of advantages when it comes to energy-efficient mortgages, including lowering monthly mortgage payments, decreasing utility bills, and offsetting your initial investment through the years.

Looking for loan options to meet your needs? Contact the experts at EB Mortgage today to learn how we can help you go green.

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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 (616) 228-8797 or e-mail contact@ebwmtg.com today.

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

The word “equity” is synonymous with home loans, but many people aren’t fully aware of what the term means. Have questions? We’ve got answers. Read on to learn everything you need to know about home equity.

Home equity is an asset; a part of your property that you own, it can fluctuate based on the property’s market value and how much of the loan balance remains. Your home is considered collateral for the loan given to you through the mortgage company.

To calculate home equity, subtract the overall property value by your loan balance. For example, if the loan balance is $150,000 and the property value is $500,000, the equity totals $350,000. Your Loan-to-Value (LTV) ratio is an equation used by lenders and can affect loan terms. LTV is a percentage calculated by dividing the loan balance by the property’s appraised value.

Equity can be accessed and used toward buying a new home or borrowed against and used for a cash-out refinance, Home Equity Line of Credit, or HELOC. Accumulated equity can be used to help fund retirement through a reverse mortgage.

To build equity, the property value needs to be increased while debt decreases. Significant improvements such as kitchen or bathroom remodels, new heating/cooling, landscape enhancements, smart home devices, new roof, etc., can add to the value of your home. Basic routine maintenance can also help in markets with increased redevelopment or job opportunities, as potential buyers are more likely.

Making monthly payments will steadily reduce your debt and build equity. If you make extra principal payments, your mortgage debt can be lowered even further. To pay less in interest over the life of the loan, you can swap a 30-year fix-rate or adjustable-rate mortgage for a 15-year fixed-rate mortgage. However, keep in mind this will increase your monthly payments.

Are you ready to invest in your home’s equity? Contact EB Mortgage today to get started.

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 616-228-8797 or e-mail contact@ebwmtg.com today.

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

Mortgage companies often require specific documents to analyze the borrower’s financial situation prior to approval. One of the most important aspects of getting approved for a mortgage is your credit score, which shows how well the borrower can meet their financial obligations. In addition to considering your credit score, lenders look at the borrower’s DTI ratio to determine whether they can monetarily handle a new loan.

DTI stands for Debt-to-Income and is calculated by adding all monthly debt payments together and dividing that by the borrower’s monthly income before taxes. DTI does not account for expenses not listed on credit reports, such as groceries, entertainment, and small purchases.

Lower DTI signifies a healthy balance between debt and income. The lower the DTI, the more likely the borrower can qualify for the loan they want. A DTI of 28 to 36 percent or lower is ideal; however, lenders accept higher DTI ratios depending on the type of loan, credit score, savings, and down payment.

There are two ways to lower your DTI ratio: decrease your debts or increase your income. To drive your debt down, pay off existing debt and do not accrue new debts. Increasing your monthly income can be tricky; try working freelance in your free time or find a better-paying job.

Are you thinking about purchasing a home and have a low DTI? Contact the mortgage experts at EB Mortgage today to get pre-approved for the house of your dreams!

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.

Prices for homes have been rising for a while now, and a new report indicates that they have been growing fastest since the past four decades. CoreLogic released a new report that outlines how home prices have risen by 18 percent from October 2020 to October 2021. The Federal Housing Finance Agency House Price Index also shows that home prices rose 18.05 percent from the third quarter of 2020 to the third quarter of 2021.

It’s been more than 40 years since growth of this magnitude has been seen. CoreLogic says the 18 percent growth was the highest number ever recorded in the 45-year history of the housing price index report. Despite the gains, CoreLogic noted that the monthly rate of increase had slowed significantly, signaling home prices could slow down in the upcoming months.

Frank Martell, president and CEO of CoreLogic said, “New household formation, investor purchases, and pandemic-related factors driving demand for the limited supply of available for-sale homes continues to propel the upward spiral of U.S. home prices. However, we expect home price growth to moderate over the near term as many buyers take a break for the holidays.”

From October 2021 to October 2022, home price gains are expected to drop to 2.5 percent, predicting the housing frenzy might substantially subside. This could be good news for buyers interested in purchasing a new home.

Are you interested in securing a mortgage for a new home or trying to get pre-approved? Contact the experts at EB Mortgage today to buy the home of your dreams.

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’s an open house? We’re not talking about graduation parties here; instead, we are referring to homes on the market. Open houses are public, informal events hosted by real estate agents or sellers. Typically lasting between one- to three hours, the doors are quite literally “open” for people to browse the house at their leisure.

Open houses give buyers an opportunity to explore the house, deciding whether it satisfies their wants and needs. With no commitment, open houses are a great way to get an up-close and personal with a potential new home. There’s no pressure to buy and no prerequisites to attend.

If a potential buyer has questions about the house, they will have an opportunity to ask and gain answers. Open house attendees do not need a specific reason behind their visit.

To find open houses, search on an MLS (Multiple Listing Services), a service jam-packed with listings state- or country-wide. Some popular MLS sites include Zillow, Redfin, Realtor.com, etc. You can also drive around your neighborhood to find open house signs. Real estate agents are professionals who can research homes and suggest one that aligns with your wishes.

Open houses are a fantastic way for potential buyers to scan the market and see what’s available. They are also ideal for potential buyers to assess the market and explore their options. In addition, open houses are an excellent way for people – even those not interested in purchasing – to gain ideas for their own houses.

If you found your dream home through an open house, you’ll need a mortgage. The next step to homeownership is to become prequalified. The homeownership process doesn’t need to be overwhelming. If you have questions or are ready to purchase a home, contact EB Wholesale Mortgage to speak with a loan expert today.

EB Wholesale 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.

Did you recently receive a monetary gift and want to use it toward a down payment? That extra cash might be helpful when exploring options in making that initial up-front parital payment. Gift money could be the extra boost you need to achieve homeownership.

Gift money can come from relatives, defined as the borrower’s spouse, child, or other dependent; another individual related to the borrower by blood, marriage, adoption, or legal guardianship; or a fiancé fiancée, or domestic partner.

Gifts can also be accepted from non-relatives, including close family friends. Ensure the money is coming from someone you trust and will not create any conflict in the future.

Today’s prospective home buyers generally struggle to save funds due to rising rental costs, student loan debt, and other financial burdens – not to mention the steady rise in housing. Therefore, the quickest path to homeownership is to utilize gift money.

To avoid mortgage insurance on a conventional loan, a 20 percent down payment is required. To overcome this challenge, gift funds or other loan options can offer a more flexible down payment. Sellers, realtors, or brokers are ineligible to gift funds to potential borrowers.

Before accepting the monetary gift, ensure the borrower and gift-giver both fill out a formal document detailing the following information:

• Borrower’s name
• Donor’s name
• Donor’s contact information
• Donor’s relationship to the borrower
• Gift amount
• Address of property being purchased

All parties must sign the letter, and it should state that no repayment is expected or required. Financial records should clearly document the transaction as well.

Are you looking to get approved for a home loan? 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.

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