What do higher home prices mean for buyers this Spring?

As home pricing continue to increase, how will this affect people looking to purchase this season? Due to a low inventory of homes we have seen a hike in home prices which can be hard on buyers, especially first-time home buyers.

Traditionally, Spring is buying season- consumers are motivated to start the house hunt. However, due to the increase we are worried about the competition in the housing market. To put it in simple terms, we have an issue with supply and demand.

Don’t get your hopes up, we have good news to share! Due to low inventory, now is a good time to sell. Looking to downsize, upsize or relocate? Eager buyers await any market updates to see which homes become available. Meaning your home will likely sell quicker then usually at a good price.

As rates are still historically low, buying a home now is more affordable compared to 20 years ago. Homeownership is still a great long-term investment in comparison to renting- invest in your future.

Give your friends at Purpose Funding today to talk about your financing options for purchasing your next home. Call us! (844) 427-3863

5 Things Every Home Buyer Should Know

What are the benefits of buying vs. renting?

When looking for a place to call home one might ask themselves, “Should I buy or rent?”.

Here are 10 reasons on why you should buy a home instead of rent:

  1. Energy Efficiency

When you are a homeowner you can make energy-efficient improvements that will reduce costs. Simple improvements like adding insulation to upgrading your air conditioning unit can help reduce your monthly utility bill.

  1. Customize your Space

Make your home fit your needs and customize it to fit your lifestyle. If you want to knock down a wall to make a room larger or redo the kitchen you have the ability to do as you please.

  1. Less Furniture

As weird as this sounds, homeowners are likely to purchase less furniture then those who rent. When renting a property, you need to purchase furniture that fits that space. When buying a home for the long haul you can keep key pieces that fit your home.

  1. Investing in Yourself

While homeowners have to pay for their mortgage on a monthly basis they are investing in their home. Instead of spending your monthly income on rent, fancy meals and new shoes- homeowners are saving and putting that money towards a home they own.

  1. Another Income Stream

As a homeowner you can find ways to get that additional income stream. From renting a spare bedroom to renting out driveway space to commuters, you can even rent out small patches of grass for people who want to grow vegetables (in select cities).

  1. No Landlord!

Don’t leave fate to your landlord’s hands- unexpected eviction notice or extreme rules. This is also important for those who start a family or seniors that wouldn’t be able to just pick up their belongings and find a new place to call home with little to no notice.

  1. Home Repairs on your watch

When relying on a landlord it can take ages to fix appliances or clean out air vents. Simple repairs can be fixed easily when you’re in charge! If you need something done you are able to make a call and have a professional solve your repair issues when you need them.

  1. Fixed-Mortgage Rates

Fixed mortgage rates don’t increase, even if the cost of everything else does. It is suggested to make a 20 percent down payment and take out a 30-year fixed mortgage to lock in today’s low interest rates.

  1. Tax-Deductions

Homeowners have the ability to deduct mortgage interest payments as well as eligible expenses such as energy efficient improvements.

  1. Take Advantage of Low rates

When interest rates are low you can scope out the best deals that will benefit you. We can see that prices of homes have dropped while rent pricing has increased. Therefore, purchasing a home at a fixed-mortgage rate will most likely be beneficial in the long run.

 

 

 

How to manage stress during the house hunt?

Buying a home can be extremely stressful, even if you aren’t looking to buy “right now”. The process can be tough. Here are a few tips to take into consideration and manage your stress during the house hunt.

Know what you want

Before you start looking take some time to think of what you want it a home. We suggest making a list, perhaps creating a pros and cons list! This way you can communicate with your realtor and set the guidelines before the search begins.

Start looking in advance

Give yourself enough time to look at houses and settle the idea of potentially calling a place your new home. Don’t wait till you NEED to find a home. This little step will remove a large portion of the stress and will also help avoid any “impulse” decision making.

Get pre-approved

We suggest getting pre-approved for your mortgage loan in advance. This will save time and ensure you are good to go! If you don’t manage to get pre-approved this will give you some time to clean up your credit score and finalize what kind of budget you have when looking for your new home.

Be a note taker

After checking out homes and going to a few open houses you may start to forget what interested you on a specific property. We recommend taking notes at every property to help you compare and contrast when making the decision. Note down key selling points, location, surrounding areas, and things that you did not like.

Don’t get attached

Don’t fall to hard when you think you found the home for you. Keep the sentiments out during this process; avoid planning out furniture, baby bedrooms and such for now. There is a chance that someone may purchase the house before you or have a better offer. We suggest keeping a casual attitude and keeping your options open.

List & Explanation of Tax deductions for homeowners

Tax season is here! If you own a home you should maximize your tax breaks.

Here are some home-owning related tax breaks to file this year!

Interest on home-improvement loan

If you own a second home, the mortgage interest paid may be deductible as long as you spend at least 14 days or 10% of the fair rental days (whichever is longer) in the home.

Property tax

Property taxes are almost always tax-deductible. Did you know, Military service members can also write off real estate taxes and home mortgage interest even if they receive a housing allowance?

Residential energy-efficient tax credit

If you made efforts to make your home more energy efficient by installing equipment like storm doors, energy-efficient windows, asphalt or metal roofs, insulation, air-conditioning and heating systems, you may be eligible for a tax credit of up to $500.

Renewable-energy tax credit

If you’ve installed “green” equipment that uses renewable sources of energy to help power your home, you may be eligible for the Renewable Energy Efficiency Property Credit. You are eligible for this tax credit up to about 30% of the cost of the equipment, including installation costs!

Home expenses and improvement

Although you can’t write off the cost of home improvement, such as the materials and the labor. You can write off the interest if you took out a home loan to pay the contractor and to purchase the materials.

 

Why is Cash out refinancing right for you?

Purpose Funding offers you many loan options determined by which fits your needs. One of the loan options that we specialize in includes Cash-Out Refinance.

What is a cash-out refinance?

With cash-out refinancing you can refinance your mortgage for more then you currently owe. Meaning, you will take the difference in cash. Cash-out refinance can also be referred to as cash-out refi.

How does it work?

An example would be if you purchased your home a few years ago and have been contributing to your mortgage each month, your increasing the value of your home. You owe less on a home that is now worth more.

Now you have the chance to lower your rate or gain some extra cash to pay for home remodeling or renovations.

In the example provided, you are able to refinance over the $80,000 you currently owe your mortgage. In order to get cash you could refinance an amount over the $80,000, the balance will be the cash you could use for remodeling your home.

Ensure you can qualify for the loan by providing proof that you can afford to keep up with the monthly payments. Proof would include documents such as income, assets and depts.

Why cash-out refinance?

Majority of clients get a cash-out refinance in order to pay for home improvements, as this also improves equity because you are adding to the home’s value. There are also some clients who utilize cash-out refinancing to pay for college tuition.

Is cash-out refinancing right for you?

Getting a cash-out refinance is beneficial in many ways. Take advantage of your equity by eliminating high interest car, credit cards and student loans. Increase your home value with renovations, use the cash to take your family on vacation, or pick up an investment property to increase your income.

Find out if you are eligible by speaking with one of our of team members today, give us a call at (844)427-3863

How can debt consolidation through refinance benefit you?

Turn your monthly payments into one low payment and pay less overall. Unlike credit card interest, your interest on your mortgage can be tax delectable. If you have two mortgages we can consolidate them in order to significantly reduce your monthly mortgage payment through refinancing.

Refinancing can help you consolidate your high interest debt by possibly using your equity to refinance your current mortgage and receive cash at a low interest rate to pay off your debt.

Your home equity is the appraised value of your home, not including the amount you still own. The more equity you have, the more money you may receive from options like a cash-out refinance.

Purpose Funding can help you pay off your higher-interest debts so you can improve your credit rating.

What are some loan options to consolidate your debt?

  • FHA loan- refinance your debt into one low-cost loan today.
  • 15-year fixed-rate loan- pay off your mortgage in a 15-year timeframe.
  • 30-year fixed-rate loan- pay off your mortgage in a 30-year timeframe.
  • VA loan- specialized for veterans and active military members to consolidate debt with a low fixed rate.

Give us a call for more information on how we can help consolidate your payments and ultimately reduce them! (844) 427-3863

New Year, New Homeowner Tips

Welcome the new year with a new home! As one of the biggest investments many of us will make is buying a home, mistakes can be costly. In order to help new homeowners here are some useful tips that will help you begin the home buying process.

Determine how much home you can afford and what you would like your payments to be – Before you start looking for a place to call home, strategically think about your price range.

Check your credit – This can determine your interest rate and loan terms, check to see if there are any errors that may be bringing your score down. You can also take a look at what opportunities you have to improve your credit, such as paying any large outstanding debts. You can also avoid opening any new credit accounts during the mortgage process to keep you score up.

Know that there will be closing costs – In addition to saving for a down payment, you should budget for an additional 2% and 5% of your loan amount. These costs can be lowered by negotiating with the seller or your real estate agent’s commission.

Money for after move-in day- Set aside a buffer to pay for what will fill you home; furnishings, appliances, rugs, updated fixtures, new paint amongst other things.

Consider HOA- decide what type of property you are looking to purchase, be sure to research and ask if there are any homeowners associate fees (HOA) on the home.

Pick the right neighborhood- take a look at local safety and crime statistics, proximity of the nearest hospital, pharmacy, grocery store and other amenities you will frequently use. It is recommended to also research local schools, even if you don’t have kids as this affects the home’s value. You may also drive through the neighborhood on various days at different time to see how traffic, noise and activity levels are.

Be prepared to compromise- nothing is perfect, think carefully as to what you are willing to compromise and what you wouldn’t.

Schedule your Purpose Funding consultation- take some time to speak with one of our mortgage experts and learn about the different options that fit your needs. Our Mortgage Experts can look at your situation and structure the loan to your specific needs and situation.

Learn more about your free personalized consultation from our Purpose Funding Team

 

Here at Purpose Funding, our Mortgage Experts we are driven by our mission and building relationships with our clients through personalized consultations and one-on-one planning with our experts.

What is our Mission?

Our Mission was inspired by one simple question: What would we do if this was our own personal loan?

Since each loan has its own set of circumstances, we gather information, ask questions and then, we listen to our customer’s needs. From there, we can provide all the options available to each client and recommend the option we would choose if it were our loan. We will earn your trust by hearing your needs and putting a plan together to meet those needs. We will earn your business by providing you the best deal for your unique situation. You will use our services again because of our straight forward and honest approach. You are not just a customer for a day, You’re a client for life!

Let us provide you with a free personalized consultation and begin the steps to your mortgage planning process.

Here is how, Give us a call and set up an appointment to meet with one of our experts and discuss your needs and how Purpose Funding can help. Let us provide you with options and tools to success that meet your specific needs. Everyone is different and we have options made just for you.

Give us a call today to set up your free consultation! (844) 427-3863

What is a VA loan? & VA financing tips

Purpose Funding is proud to offer the best options to our American Hero’s- VA loans for Veterans Helping Veterans! Our VA loan can help you acquire your home with no money down, cash out up to 100% of your equity, or drop your payments with no appraisal or income qualifications. With no closing costs and nothing added to your loan options!

What is a VA loan?

A VA loan is a mortgage loan in the United states that is guaranteed by the United States Department of Veterans Affairs (VA). This program is offered to American Veterans, Military member who are currently serving in the U.S military, reservists and select surviving spouses- to be used in purchasing single-family homes, condominiums, multi-unit properties, manufactured homes, and new construction.

Benefits include-

  • No Money Down
  • Lower Monthly Payments
  • Easy to Qualify

Our VA loan tips and checklist-

  1. Meet with a Purpose Funding team member
  2. Make a plan that is right for you. Determine what your ability to afford the monthly VA loan payment options are.
  3. Understand the advantages of VA loans with Purpose Funding!
  4. First time homebuyer? Determine what you would like for your first home. For example, size, location, featured, etc.
  5. Decide if you would like a 15-year or a 30-year VA mortgage payment. For more information on the difference of a 15-year and 30-year mortgage click here!
  6. Prepare your paperwork. Be sure to have important documents like your personal contact information, primary borrower details, social security number, employment information, income, assets, debts, and monthly debt payments to expedite the process.
  7. Get your VA loan pre-approval!

Get a quick quote online today with Purpose Funding, click here! Or give us a call at (844) 427-3863