Are you a first-time home buyer or thinking about buying a home soon? Greenway Mortgage wants you to feel ready and prepared for the biggest, most exciting purchase of your life. We put together some questions for you to answer so that you can see where you stand currently. Go through and answer each and at the end, if you feel confident and ready, reach out to the team at Greenway Mortgage.
Alright, here we go!
#1 Do you have established credit?
Look below to see where your credit score falls.
If you answered yes, keep making your payments on time. Do not apply for any more credit as it will lower your credit score. Every point counts.
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Excellent Credit Score: 720-850
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Good Credit Score: 690-719
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Fair Credit Score: 630-689
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Bad Credit Score: 300-629
If you answered no, now is a great time to start building your credit. A credit card or secure loan is a great option. But length of history is important followed by amounts you owe.
#2 How About Your Job?
Two years of employment history is a good rule of thumb. Greenway Mortgage will look at your documented income such as paystubs, tax returns and W2’s.
#3 Have You Been Saving?
You will want to decide how much of a down payment you plan to put down. Keep in mind, that there will be other fees at closing in addition to your down payment. Closing costs can includes fees like:
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Appraisal
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Attorney
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Home Inspection
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Credit Report
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Escrow
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Title
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Private Mortgage Insurance
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Property Tax
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Recording Fees
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Underwriting & Processing Fees
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And more
#4 How Much Can You Afford?
It's an important step to determine how much house you will be able to afford. With that said, there is a general rule of thumb that says your total monthly debt – mortgage payments, car payments, credit cards, gas, utilities, etc. – should not exceed 36 percent of your gross monthly income. Lenders typically follow a similar guideline when a qualifying a borrower for a mortgage, although the exact criteria depends on the lender, the borrower and the mortgage program.
The lender qualifies a borrower for a maximum monthly payment that they can afford based on the borrower’s current financial situation, as well as the down payment amount. Remember, your monthly mortgage payment includes PITI – principle, interest, taxes, and insurance.
Second, just because you qualify for a certain monthly payment, that doesn’t mean you should purchase a home that puts you right at that limit or anything close to it. “But wait,” you say. “I’ve crunched the numbers in my monthly budget, and I have no doubt that I can swing that payment with plenty left to spare!”
Are you sure about that?
Do you plan to have kids? Will they go in daycare? If you plan to stay home with your kids, how much income will you lose? Will you start saving for their education? Do you plan to buy a car within the next five years? Would you like to go on vacation? Will this home you’ve fallen in love with require any improvements? In other words, if these or other life events add significantly to your monthly expenses, will you still be able to swing that mortgage payment? Many first-time home buyers become house poor because they buy based on today and fail to consider where they’ll stand tomorrow.
The Better Question to Ask
First-time buyers constantly come to us and say, “How much house can I afford?” Unfortunately, we can’t answer that question with any certainty. We can only tell you how much of a monthly payment you qualify for. The better question to ask is, “How much should I buy?” Again, the lender can’t answer that question. That’s a personal decision you must make based on your income, lifestyle, family situation, and priorities, both now and in the future.
There is no mathematical formula that tells you exactly how much home you could afford. However, Greenway Mortgage will take the time to discuss these issues with you instead of simply approving you for a mortgage and wishing you luck.
#5 Did You Know There are First-Time Home Buyer Perks?
Greenway makes buying for the first-time easy! Check out some of our First-Time Home Buyer Programs here.
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No Money Down FHA Loan: Eligible buyers can get 100% financing towards the purchase of a new home. Learn more about our No Money Down FHA Loan here.
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NJ FHA Down Payment Assistance Program: Qualified buyers can receive $10K towards down payment. Learn more about our NJ FHA DPA Program here.
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Conventional 97 First-Time Home Buyer Program: 3% down payment regardless of income levels or geographic location. Learn more about our Conventional 97 First-time home buyer program here.
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FHA Mortgage: These loans are designed to help first-time homebuyers and experienced homeowners alike by providing them with a low-down payment option. FHA mortgage insurance serves as protection for lenders in the event of a homeowner defaulting on their home loan. Click here to learn more about the FHA Mortgage.
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HomeReady Program: Designed to help creditworthy homebuyers with limited income in designated areas. Click here to learn more about our HomeReady Program.
You Can Check out all our First-Time Homebuyer Resources here.
First Time Home Buyer Guide
Want to feel prepared before making the leap into homeownership? If so, this eBook is for YOU! You’ll learn how to navigate the entire process from pre-approval to closing and beyond. Click here for your free First-Time Home Buyer Guide.
#6 Feeling Good About Homeownership?
If you’ve made it this far and feel confident, it’s time to schedule an appointment with one of our Loan Experts. Otherwise, hopefully you now know some things you may need to work on based on your current situation. Either way, homeownership is possible! There are many options available to fit your specific needs and the Greenway Team is here to help guide you ever step of the way.
Best of luck on this journey to becoming a homeowner!
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Introducing the Doctor Loan
One benefit of becoming a doctor is being able to take advantage of unique home financing opportunities. Erin the Expert's Doctor Loan is a great tool to help medical professionals who are looking to achieve the dream of homeownership.
What is the Doctor Loan?
Becoming a caregiver is not only commendable but it’s often coupled with a significant student loan burden. If you’re a resident, a recent medical school graduate, or at any stage of your career, looking to lose the lease and become a homeowner, the Doctor Loan was specially designed for professionals like you.
The Doctor Loan helps those eligible secure a mortgage with fewer restrictions than a conventional mortgage. This type of loan is much more accommodating to medical professionals and their unique circumstances. So, those years of extra schooling and training have paid off and your dream of homeownership is within reach.
What are the features and benefits of the Doctor Loan?
The Doctor Loan can help those eligible locks in lower interest rates, avoid a huge down payment and private mortgage insurance (PMI) which is standard for traditional loans. Depending on the final loan amount, eliminating the PMI can save doctors hundreds of dollars from monthly mortgage payments while pursuing medical careers.
Features & Benefits of the Doctor Loan Include:
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Loan amounts up to $2,000,000
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Low and no down payment options (Max LTV up to 100%)
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Adjustable-Rate Mortgage (ARM) options available (3/5/7/10)
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Interested party contributions allowed
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Future employment contract eligibility
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Available for Purchases and Rate & Term Refinances
Who’s Eligible for the Doctor Loan?
- Medical residents
- Physician's Assistants
- New and established doctors
- Doctor of Medicine (MD)
- Doctor of dental surgery (DDS)
- Doctor of dental medicine or surgeon (DMD)
- Doctor of optometry (OD)
- Doctor of Ophthalmology (MD)
- Doctor of osteopathic medicine (DO)
- Doctor of podiatric medicine (DPM)
What are the specific Doctor Loan eligibility requirements?
- Single-Family Properties and Condos
- Primary Residences Only
- 680 Minimum Credit Score
- Available in NJ (some counties excluded), FL, NY (some counties excluded), NC
- Eligibility requirements, exclusions, and other terms and conditions apply.
Bottom Line:
If you’re considering buying a home, especially as a new medical professional, speak with the experts at Greenway Mortgage to weigh all your options. Click here to get a free mortgage pre-approval or to speak with one of our Loan Officers today.
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The Fed’s preferred inflation gauge rose 0.4% in February and 5.4% year over year, the highest since 1983 but still lower than expected. |
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According to ADP, companies added jobs at a solid pace in March, indicating that hiring is strong despite signs of a tightening labor market. |
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Unemployment claims rose by more than forecast last week to 202K, likely a blip in an otherwise recovering labor market. |
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Pending home sales fell 4.1% in February compared with January. However, purchase applications were up by 1% on the week. |
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Home prices nationally rose 19.2% year over year in January, up from 18.9% in December, according to the CoreLogic Case-Shiller Index. |
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Millennials make up 43% of homebuyers, and Baby Boomers account for 42% of home sellers, according to NAR’s Generation Trends Report. |
In many areas, prospective homebuyers understand how difficult the housing market has been. Inventory is tight, prices are up, and competition is intense. In fact, the nation is experiencing one of the most competitive housing markets in history. If you’ve been searching for a home, you can agree.
What’s Happening with The Real Estate Market?
Homebuyers are finding it hard to compete with other buyers who are making offers well above the asking price. That’s when a good strategy comes into play to ensure your offer gets accepted. One way is to make a cash offer. Making an all-cash offer is a competitive step to secure the home of their dreams, but many all-cash homebuyers don’t want to tie up their cash permanently.
We’re Helping Clients Win the Home of Their Dream
Greenway Mortgage has the solution. With our Delayed Mortgage Financing Program, homebuyers are able to win bidding wars with an all-cash offer upfront, close with their cash reserves, and recoup their assets once the transaction closes without having to wait for the traditional 6-month seasoning requirement.
What is Delayed Financing?
Delayed Financing is a unique financing option that allows home buyers to obtain a mortgage loan after purchasing a property in all cash. By utilizing a "delayed financing" cash-out refinance option, borrowers can recapture their funds and waive the 6-month cash-out seasoning requirement
How Does Delayed Financing Work?
Delayed financing gives homebuyers the power of a cash offer while also allowing them to get a mortgage on a home.
- A borrower purchases a property from a seller in all cash.
- Apply for the Delayed Mortgage Program (application must be made within 6 months of the closing date).
- Borrowers utilize the cash received at closing to replenish the cash used to acquire the property.
Keep in mind that this is still a loan. Borrowers need to apply for the mortgage loan, supply the required documentation and pay back the loan.
What Are the Benefits of Delayed Financing?
Amidst a purchase season that’s highly competitive, delayed financing is a valuable mortgage financing tool when home buyers need to more quickly & strategically. Here are three key benefits:
- Beat out the competition with a stronger cash offer
- Consider a broader range of properties
- Allows investors to remain liquid
For more information and details on our Delayed Mortgage Program click here.
Bottom Line:
In this highly competitive housing market, a cash offer is key to closing the deal on a new home. Delayed Financing may be the right strategy for you to beat out the competition. Don’t get discouraged, the home of your dreams will come along! Experts expect bidding wars to ease in 2022, so there’s some light at the end of the tunnel for homebuyers.
In the meantime, if you’re interested in seeing what homes are going for in your neighborhood or in a neighborhood you’re looking to purchase in, check out our Recent Sales Tool here. Simply plug in an address and we’ll create a list of recently sold properties nearby!
Happy House Hunting!
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