The Importance of Cosigners on Mortgages

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!

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.

Rental History Will Soon Factor into Mortgages

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.

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.

Choosing a New Home Based on Remote Work

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.

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.

Do Mortgage Payments Decrease Through Time?

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.

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.

Celebrating National Homeownership Month

June is National Homeownership Month, and to celebrate, we’re listing the benefits of owning a home! For many, our homes have become workplaces, schools, and provided a safe harbor during the pandemic. American homeownership has risen to its highest point in eight years, to 65.6 percent. According to a survey by Gallup, real estate topped the best investment for the eighth year in a row.

The benefits of owning a home are exponential:

Equity: Owning a home builds equity, which grows with each mortgage payment you make. Eventually, you can use the savings to accomplish big financial dreams.

Pride: Homeowners can all agree, having a space that is solely yours is a fantastic accomplishment. After customizing it to your personal style, a home can effortlessly reflect your values and aesthetic.

Stability: Financially, house payments are typically steady, while rent payments rise. The more practical option for budgeting is associated with homeownership.

Security: Privacy is an essential factor for people who are renting. Homeownership gives you a sense of privacy and security that is typically not associated with rental units.

Value: As home prices rise, owning a home ensures you have an investment that steadily gains value.

Community: Homeowners generally have a connection to their neighborhoods and are involved in social and security standards set by the group.

If you already own your home, celebrate the value it has brought you this June. If you hope to become a homeowner, contact the experts at EB Mortgage to get 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 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.