Category: EB Mortgage - page 4

What is a Homeowners Association (HOA)?

Posted on November 10, 2021 by Creative Programs and Systems

The term HOA stands for Homeowners Association, which you might have heard in passing conversations or in real estate discussions. HOAs affect homeowners in many ways. If you are looking to purchase a home with an HOA, you might want to brush up on your knowledge to learn how it will affect you.

HOAs are organizations within subdivisions, communities, or condominium complexes. In each housing area, rules are made, and the HOA enforces them. Typically, homeownership comes with the freedom to change your home’s landscaping, exterior, or design on a whim. However, HOA community members often run into limitations doing so.

HOAs are run by a board of directors appointed by the community or within the board itself. These positions are voluntary, meaning they are not paid but are reasonably strict about enforcing HOA rules throughout their jurisdiction. The board members deal with complaints pertaining to issues with homeowners.

If you are looking to purchase a new home and an HOA is involved, be sure to meticulously examine the rules before putting in an offer. HOAs are intended to maintain harmony and appearance throughout the local area. Rules are enforced, which keep unruly residents at bay. Sometimes, HOA boards are required to implement regulations if homeowners do not follow the rules. On the other hand, HOAs help to increase community value and ensure properties do not depreciate over time.

There are some pros and cons of being a member of an HOA. Some pros include amenities, unified appearance, community involvement, and maintenance. Conveniences can consist of a pool, gym, meeting room, and more. Typically, utilities such as trash and water are also covered. Because maintenance is sometimes covered under the HOA, issues with landscaping or infrastructure can easily be fixed.

Cons of HOAs include dues, rules, and a limited amount of freedom to do as you please. Monthly dues are separate from a mortgage payment and are used toward expenses. Prices can vary between communities, and the board can adjust the dues as they deem necessary. Regulations set by the HOA aren’t crystal clear until you move into your new home. Some rules include a specific number of pets, length of grass, types of renovations, paint colors, fences, etc.

Being an HOA member is a choice some homeowners have to make, but it shouldn’t be a flippant decision. The takeaways are vast; before making a decision, research the options heavily.

Have you found a home and are ready for a 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.

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

EB Mortgage

Qualifying for a Mortgage While Self-Employed

Posted on October 28, 2021 by Creative Programs and Systems

Self-employed applicants looking to purchase a home will have to fill out the same paperwork as those not self-employed, and lenders look at the same aspects such as credit score, debt, assets, income, etc. So what’s the difference between a self-employed applicant and everyone else? When working for a company or business, lenders will verify the amount – and history – of that income to determine how likely you will continue to earn it.

Lenders are typically looking for the following:

Income stability
Location and business
Financial strength
Potential future revenue

To apply for a mortgage while self-employed, you will need to provide a few documents showing a history of uninterrupted income for at least two years. Employment verification will also be examined, which can include:

Client lists
CPA verification
Proof of licensing or other organization
Insurance confirmation
Doing Business As (DBA) documentation

Income documentation will also need to be ready to go. It’s crucial to show steady, reliable income for the past two years. Mortgage lenders generally look for:

Personal tax returns (W2s)
Profit and loss forms (Schedule C, K-1, Form 1120S, etc.)

If you have been self-employed for less than two years, to qualify for a mortgage, you’ll need to show that your business has been active for a minimum of 12 consecutive months. Additionally, your non-self-employment history will also be verified. Your training and education might go under the microscope to ensure stability will be gained by your success.

Check your Debt-to-Income Ratio (DTI), ensure your credit score is high, and separate your business expenses as well.

Self-employed and want to apply for a mortgage? Contact the experts at EB Mortgage today!

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

EB Mortgage

Early October is the Perfect Time for Homebuyers

Posted on October 13, 2021 by Creative Programs and Systems

If you have been eyeing a new home or thinking about buying, now is the time. Headlines skim past buyers as the seller’s market has been steaming hot. Bidding wars have been on the rise due to low mortgage rates and price appreciation. Thankfully, there are clear signs that buyer opportunities are increasing during autumn.

According to Realtor.com, the best time to buy a home in 2021, is the beginning of October. In a recent study, housing market trends were analyzed by experts. The past several years of data were looked at and applied to the current market.

Are you looking to cash in on the upcoming golden opportunity? Here’s what to expect:

Expanded housing supply: Total amount of homes for sale should increase. New listings typically come to market the week of October 3rd. A rough estimate stated that 17.6 percent more homes will be available than at the start of the year.

Less bidding wars: As more homes are available, the number of bidding wars will decrease. More options equal less competition and a better chance of securing the property.

Adjusted prices: As winter approaches, prices are tweaked and often reduced. While home prices are still appreciating, some houses will spike lower as owners are eager to sell. Owners might act with more motivation to achieve a sale prior to year-end.

If you are looking to buy a home, now is the ideal time. Your patience will pay off, and the home of your dreams is right around the corner.

Do you need a pre-approval to snag that fab new house? Contact the mortgage experts at

EB Mortgage today!

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

EB Mortgage

How to Increase Your Credit Score Before Applying for a Mortgage

Posted on September 29, 2021 by Creative Programs and Systems

The higher the credit score, the better. This is a general rule of thumb for many aspects of life, especially when applying for a mortgage. If you have found yourself questioning your credit, here are some proactive measures you can take to improve it.

Increase your Credit Card Limit
A simple and effective way to boost your credit score is to increase your available credit. If you have credit cards open, all you have to do is raise the limit on them. In time, your credit scores should increase as your utilization lowers. You can increase your credit card limit over the phone or online through your credit card provider. The company might ask you to enter your gross annual income or housing payment. This process can take a minute or so but will need to be done at least three months prior to applying for a mortgage. Card issuers might need to access your credit report, which could temporarily affect your credit score.

Lower Your Credit Utilization
Credit utilization is the percentage of credit you are using at any time. A lower utilization rate (debt-to-income ratio) is typically what credit bureaus and mortgage lenders look for. With higher credit limits, as long as you are spending less (or the same amount before the limit was raised), your credit score will rise. If your credit card balances are low, your chances of being approved are higher.

Pay Off Existing Balances
Any prior loans or credit card balances that can be paid off or lowered will free up available credit. Since your minimum payment will be reduced in the process, your Debt-to-Income Ratio will decrease, giving your credit scores a boost. Smaller credit balances make way for your income to go toward a mortgage payment.

Work In Advance
Credit limit increases could result in a hard inquiry on your credit report. When these reviews take place, your credit can be slightly lowered. Thankfully, this is temporary, so try to go through with any of the above-mentioned strategies several months before applying for a mortgage. You can also ask your credit company to determine whether the application will result in a hard or soft pull on your credit.

What is your credit score? Learning and knowing this number is one of the first steps in gaining a mortgage. Contact the professionals at EB Mortgage today to walk you through the new home purchase or refinance process.

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

EB Mortgage

The Importance of Cosigners on Mortgages

Posted on September 16, 2021 by Creative Programs and Systems

Buying a home is a huge decision, investment, and can be exciting for first-time homebuyers. Mortgage lenders help buyers with the process, ensuring success in every aspect. From time to time, roadblocks occur, which could postpone the outcome. Even with enough funds to cover a down payment, closing costs, and monthly payments, you could still be denied.

Thankfully, there’s a way around the mortgage denial roadblock: a cosigner.

Someone who cosigns a mortgage has decided to join with another borrower to purchase a home. A cosigner is bound by a legal obligation to repay the mortgage if the primary borrower can no longer perform their financial responsibilities.

Close family members or friends can cosign mortgages and are generally meant to assist the applicant with funding, build credit, or reduce their financial risk. College students or recent graduates are good examples of those first-time homebuyers who might require assistance from a cosigner. With minimal credit history and zero income, it is challenging for them to get approved. Parents usually help these students or recent graduates by cosigning, as they are not required to live in the home. As long as their income can support the loan qualification, the borrower (student) would be approved.

Cosigners are treated the same as other applicants and should be prepared to fill out loan applications, financial information sheets, and explain their relationship to the borrower. The overall credit score will be averaged between the two borrowers. The cosigner will appear on the mortgage, and their credit will reflect that as well.

Ready to apply for a mortgage with your cosigner? Contact the home loan experts at Concord Mortgage today!

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

EB Mortgage

Rental History Will Soon Factor into Mortgages

Posted on August 25, 2021 by Creative Programs and Systems

Fannie Mae plans to launch a new underwriting innovation beginning September 18, 2021 that will automatically incorporate rental history into their credit evaluation system. Using bank statement data, mortgage lenders will be able to “deliver a more inclusive credit assessment” with the borrower’s permission, according to the press release.

Hugh R. Frater, Fannie Mae CEO, said, “Many renters believe they will never be able to buy their own home because of insufficient credit. We can responsibly expand mortgage eligibility by including positive rent payment history in underwriting risk assessments. We believe this will be the first time any large-scale automated mortgage underwiring system will leverage electronic bank statement data to consider positive rent payment history. It is but one important step in correcting the housing inequalities of the past, creating a more inclusive mortgage credit evaluation process going forward, and encouraging the housing system to develop new ways of safely assessing and determining mortgage eligibility in order to fairly serve all potential homeowners. We look forward to working with our industry partners to do what we can together to address this and other barriers of homeownership.”

This novel system will even the playing field for homeowners. It should lead to more mortgage approvals for those who might not have otherwise qualified for a home loan because of insufficient credit history.

If the borrower has a limited traditional credit history or was denied previously, the new change could be beneficial for them. Positive rental payments will be automatically notated from tendered bank statements and incorporated into the underwriting program.

To learn more about this new program and apply for a mortgage, contact the professionals at EB Mortgage today.

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

EB Mortgage

Choosing a New Home Based on Remote Work

Posted on August 13, 2021 by Creative Programs and Systems

The rise in remote work has changed drastically throughout 2020 and into 2021 due to COVID-19. If you think working from home is a passing fad, it isn’t. A survey by Statista and Upwork projected that 37.5 percent of United States employees would work remotely in the next five years, up from 21 percent before the pandemic.

As employees’ needs evolve, dedicated home offices are on the rise. Working from home has freed some employees from working in a specific area for their job. Employees now have much more flexibility when it comes to physical aspects such as their surroundings but also more abstract factors such as where they reside.

Of the 23 percent of workers who will remain working remotely, most have an opportunity to relocate to a lower cost-of-living area or those dreamy spots they only considered for vacations. More affordable homes are useful for creating office space or more room in general. Those pricier vacation spots (near beaches, mountains, or simply better communities that feature amenities) can also be ideal. Consider what it means to work without limits or constraints when it comes to location.

Those who are projecting a hybrid (partially remote) schedule make up roughly 15 percent of employees. Homes located farther from the office could still be viable, as you won’t be going to work every day. Those slightly longer commutes might pay off in the end if your living situation is more desirable.

Many homeowners are already benefitting from their recent flexibility, as the pandemic caused them to shift away from urban centers, focusing instead on more rural or less-populated areas. Families with higher incomes took advantage of these changes, as did those with lower incomes. The shift to either more expensive and elaborate or- cheaper and more affordable homes has been evident.

If you’ve found a home that will accommodate your new workstyle, contact the mortgage experts at EB Mortgage today to secure a loan and purchase your new home ASAP.

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

EB Mortgage

Do Mortgage Payments Decrease Through Time?

Posted on July 29, 2021 by Creative Programs and Systems

Most people are aware that mortgage payments can increase over time, but did you know payments can actually decrease? In this article, we’ll explore a few ways how this can happen.

Mortgage payments decrease on Adjustable-Rate Mortgages (ARMs). While not as common as the payment increasing with ARMs, your monthly payments can decrease based on the Associated Mortgage Index’s movements. Depending on your lender, a built-in floor might prevent taking advantage of these decreases, however. If you hold on to your ARM through the initial fixed-rate period, you could end up with a lower rate if it becomes available.

Another option is to pay down your mortgage in time. If you make a large lump sum payment, your payments can decrease gradually. Ask your mortgage lender to re-cast your loan, which will re-amortize and couple it with your original loan term. If you skip this step, extra payments will not automatically lower future payments. Once your new, smaller balance is spread throughout the remaining months on your loan, your mortgage payment is adjusted lower to reflect that balance. However, your mortgage rate doesn’t change.

Refinancing your home to a lower rate is always an option to reduce your monthly mortgage payments. Rate and term refinances are one of the easiest – and most popular – ways to lower your mortgage payment with low effort. Refinancing doesn’t necessarily mean you will get the lowest rate, though, especially if you don’t plan on staying in the property long-term.

Shop around for homeowners’ insurance yearly, as it is generally included in your mortgage payment. If you can find a lower home insurance premium, your mortgage payment might decrease.

If you feel as though your home is overvalued, you can also look into getting a tax reassessment. If property values have been on the decline, your home might have a lower valuation. Ask your county recorder’s office for a reassessment if so.

It’s important to remember that mortgage payments are generally composed of Principal, Interest, Taxes, and Insurance, or PITI.

Want to learn more about lowering your mortgage payment? Contact the mortgage professionals at EB Wholesale 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.

EB Mortgage

Cashing In on Your Second Home

Posted on July 16, 2021 by Creative Programs and Systems

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.

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

EB Mortgage

What Does Closing Entail?

Posted on June 23, 2021 by Creative Programs and Systems

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.

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

EB Mortgage