If you’ve begun looking for your first home, you’ve likely heard of a getting a home appraisal and home inspection. What exactly are home appraisals and home inspections, though? Is there a difference between the two? Are they really necessary?
A home appraisal determines the value of a house based on certain factors, including “comparables.” An appraiser will take a few things into consideration when deciding the market value of a home. For example, they often look at comparable homes in the area which have recently sold and certain amenities in the house. It is important to remember that an appraisal doesn’t decide the “worth” of the home, but the market value.
The appraisal helps determine how much money your lender will give you to buy the house. Having the home appraised is therefore necessary when seeking out a loan. If you’re selling a home, it’s more beneficial to you if the appraisal is high. When you’re buying, however, a low appraisal is better. Appraisals can differ from one appraiser to the next, but they’re usually closely based on the assessment of the above-mentioned factors.
Home inspections involve an inspection of the house itself, focusing on things like structural issues. Generally, home inspections include a look at the roof, the heating and cooling system, plumbing systems, and electrical systems. While home inspections are not exhaustive and therefore may not uncover every possible issue, home inspections are still a very important step in the home buying process.
Some home mortgage programs may require specific inspections. However, generally speaking, home inspections are not a hard requirement for every mortgage option. Still, it is best to choose to have a home inspection done anyway. Buying a home without inspections could potentially leave you open for some major issues. It’s better to spend the money on an inspection that could save you more costly expenses down the road.
Count on Stonebridge Mortgage Group for all your mortgage needs.
In addition to appraisals and inspections, there are a lot of ins and outs to familiarize yourself with over the course of the home buying process. For professional assistance with mortgages, look no further than Stonebridge Mortgage Group. If you’re ready to apply for a loan and want to go through the process online, Stonebridge Mortgage Group offers online applications. We also help get you pre-approved for a mortgage and help with your real estate loans and other Stonebridge Mortgage Group serves the greater Portland area and are in Gresham, Oregon. Don’t wait to get quality assistance with buying your home!
If you want to buy a home, but don’t have 20% of the mortgage to put down and your credit is less than perfect, you don’t have to give up on your dream of homeownership. With the right loan, you can still get a home! FHA loans are very popular among first-time homebuyers because of the low credit score and down payment requirements.
Just what, exactly, is an FHA loan? How can you figure out if you can qualify for one?
FHA stands for Federal Housing Administration. This Government agency dates back to 1934, when HUD, the U.S. Department of Housing and Urban Development, created it to increase homeownership in America. The credit score and down payment requirements are lower for this type of loan to allow more homeowners to qualify for home loans. Those who qualify for FHA loans are required to pay a monthly mortgage which totals about 0.85% of the loan amount annually. Should a borrower default on an FHA mortgage, it is foreclosed on and the HUD will pay the balance to the lender, then take possession of the property.
A minimum credit score of 500 is required to qualify for an FHA loan for a 10% down payment. However, with a score so low it is unlikely that you will be approved as a subprime borrower. With a score of 580, you are more likely to be approved and will only be required to have a 3.5% down payment. If your score is below 580, you would benefit greatly by improving it to at least that amount.
As of 2019, you must meet the following requirements to be approved for an FHA loan:
500-579 FICO score requirement with a 10% down payment
580+ FICO score requirement for borrowers with at least a 3.5% downpayment
An appraisal must be done by an FHA approved appraiser
Mortgage insurance (MIP) is required
Steady employment and be able to prove income with recent tax returns, W2’s, and paycheck stubs
With such low requirements, it’s no wonder FHA loans are so popular with new homebuyers. For those of you looking to buy your first home, finding out if you qualify for an FHA loan is highly recommended.
Stonebridge Mortgage Group Offers Guidance On All Mortgage Matters
Stonebridge Mortgage Group can help guide you through the home buying process. We help get you pre-approved for a mortgage and help with your real estate loans and other We serve the greater Portland area and are in Gresham, Oregon.
If you plan to stay in your home for at least seven to 10 years, a fixed-rate mortgage offers stability with your monthly payments. On the other hand, if you don’t plan on staying in your home for a while an Adjustable Rate Mortgage (ARM) could save you big on interest payments.
Let’s go into some detail and provide pros and cons for each type of loan.
What is a Fixed Rate Mortgage?
The rate that is fixed (stays the same) is the interest rate. Fixed-rate mortgages keep the same interest rate over the life of your loan. This means you can expect that your monthly mortgage payments will be consistent month-to-month. Fixed rate loans typically are offered in terms of 15, 20 or 30 years.
Pros and Cons of Fixed Rate Loans
The pros of a fixed rate loan are your monthly principal and interest payments stay the same throughout the life of the loan, making it easier to budget. The cons could mean paying more interest in the long-term and it might take longer to build equity.
What is an Adjustable Rate Mortgage?
Unlike the stability of fixed-rate loans, adjustable-rate mortgages (ARMs) have fluctuating interest rates that can go up or down with market conditions. Many ARM products have a fixed interest rate for a few years before the loan resets to a variable interest rate for the remainder of the term.
Pros and Cons of an Adjustable Rate Mortgage
The pros of an Adjustable Rate Mortgage are during the initial fixed-rate period you can pay lower rates and over the long-term you could spend less on interest. The cons include relying on factors outside of your control, like the real estate market. Your mortgage rates could increase, possibly becoming too unaffordable.
Stonebridge Mortgage Group can help you decide which best fits your goals. We can also help get you pre-approved for a mortgage and help with your real estate loans and other We serve the greater Portland area and are in Gresham, Oregon.
Call Stonebrige Mortgage at 503.661.5580 for help in choosing the right mortgage loan for you.
There are lots of factors to consider when deciding if a reverse mortgage is right for you. The largest factors include: your age, do you plan on staying in your home and will you still be able to afford taxes, what you plan on leaving your heirs, and home upkeep.
Below we list three reasons for and against a reverse mortgage. Reverse mortgages are not for everyone, but it can be a viable source for more revenue.
WHY YOU WANT A REVERSE MORTGAGE
Access to more money. A reverse mortgage is technically a loan and it illuminates your existing mortgage. The loan gives you access to cash. This money can be used anyway you want. To make ends meet, increase your monthly spending budget, or buy something you always wanted.
High Value, Low Rates. When your house value increases, so does your loan amount. The loan amount also increases when interest rates are low. Housing values are generally up and rates are still at a historic low.
Staying in the Home. If you plan on staying in your home, a reverse mortgage makes sense. A reverse mortgage can be an alternative to downsizing and moving into a smaller place. A reverse mortgage means you still own your home, you are only borrowing against your equity.
WHY A REVERSE MORTGAGE MIGHT NOT BE RIGHT
Upkeep Costs. A reverse mortgage makes your mortgage payments go away, but you still must be able to pay taxes, insurance, and maintenance costs for your home. If you are not financially able to pay for these items in addition to your cost of living, a reverse mortgage is not right for you.
Assets for Heirs. A reverse mortgage lets you retain ownership of the home and allows you to pass this asset on to your heirs, but they are also responsible for paying back the loan. Most heirs pay back the loan by selling the home. They will never owe more than the value of the home.
Leaving the Home. If you do not plan on staying in the home that you are getting a reverse mortgage for then a reverse mortgage may not be for you. The cost of a loan is best spread over a minimum of five years.
These are very general guidelines to help you get started. It is recommended that you consult an expert in Reverse Mortgages to get the information that is tailored for you situation.
Stonebridge Mortgage Group can help you with your reverse mortgage and other We serve the greater Portland area and are in Gresham, Oregon.
Stonebridge offers a number of residential real estate services for our Gresham neighbors. Consider each of our residential services next time you venture forth into the Portland area real estate market, either as a buyer or a seller.
A reverse mortgage is for homeowners who are at least 62 years-old. It involves converting a portion of your property’s equity into cash you can put toward your retirement years.
Real Estate Loan
Whether you are refinancing or buying a new home, Stonebridge Mortgage Group, Inc will secure the real estate loan in Gresham that is right for you.
Financing your home is like no other investment. It can feel like an intimidating process. As your mortgage broker, we are here to advocate on your behalf as well as make sure you understand each step of the process.
We look for the perfect match between lenders and customers. There are so many moving parts when it comes to loans. It is vital that both lender and customer feel confident and well informed. At Stonebridge Mortgage Group your loan officer is here to ask all the right questions. Call today to see what our loan officers can do for you in Gresham.
It’s crucial that buyers considering reverse mortgages have a clear understanding of what precisely is available to them. Each person’s situation is unique, so it’s imperative that your mortgage group works judiciously to ensure that you are accurately informed. Finding a mortgage group to work as your advocate, and finding the right solution for you will take time and effort but every moment spent will be more than valuable.
At Stonebridge Mortgage Group, we are here to provide answers and help you make an informed decision. If a reverse mortgage loan is right for you, we will help you find the right lender and make your options clear and understandable. From the initial preapproval to filling out the application, to signing the final loan, we are with you all the way.
Important Information to Understand Regarding Reverse Mortgages
At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds.
Charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees.
The loan balance grows over time and interest is charged on the outstanding balance.
The borrower remains responsible for property taxes, hazard insurance, and home maintenance, and failure to pay these amounts may result in the loss of the home.
Interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment.
David is so professional and accommodating. I appreciate his level of professionalism and willingness to help.
We have chosen Stonebridge a couple times now, and they are always a pleasure to do business with.
David with Stonebridge has helped me on multiple occasions, between financing a new home as well as a couple of refi's over the years. I cannot stress how communicative he is when it comes to keeping his clients in the loop. Even when there was a slight lull during my most recent refi I would receive an email just letting me know that nothing new had transpired yet so I never had to question what was going on.
I have worked in the Real Estate field for almost three decades and David is by far the most responsive and professional mortgage Broker that I have dealt with.
If you need help purchasing a new property or help with a refi you can't go wrong by hiring Stonebridge!
Refinancing our home through Stonebridge Mortgage was a great experience. They locked in a great rate, laid out each step along the way, and provided regular updates throughout the process. It couldn't have gone more smoothly and now we are saving $300/mo! Thank you Stonebridge Mortgage!
David is very easy to work with and makes the entire process very simple. I have used Stonebridge for initial purchase and refinance and it only gets better. Get the straight answer quickly from Stonebridge
I've had nothing short of an amazing experience working with Stonebridge. I bought my first home over 2 years ago and without their help I may still be living in an RV. I intended to refinance my home later this year and I will most definitely be working with Stonebridge. I highly recommend. PS, I was qualified at the time with a credit score of 640
David was wonderful to work with. He was highly recommended to me by my partner who had worked with David a few years ago.
The day I contacted David he immediately put everything in motion
to assist me in refinancing with a much better interest rate.
We were able to handle everything by email /phone and Fax. He
responded quickly to questions I had. And let me know immediately
if something needed to be done or changed.
I would definitely work with David in the future if the need arises. The process went smoother than any other time I have worked with mortgage
David was an absolute pleasure to work with! He was consistently responsive, on top of every detail and always so upbeat and funny! (An added perk that I truly appreciated during the stressful process of selling AND buying at the same time!) I will be recommending him to everyone I know!
David was a good man to do business would
do business again