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If you are considering the possibility of purchasing a home this year, you may have heard that renting is a smarter choice than buying for a number of reasons. For many people, however, that is not always true.  Deciding whether renting or buying is right for you depends on your individual options and circumstances.  To help you learn more, here are a few myths that explore renting versus owning a home:
 
Myth No. 1: You can’t afford a down payment.

Many would-be homebuyers opt for renting believing that they won’t be able to save enough for a 20 percent down payment. But in reality, not all loan programs require a 20 percent down payment. Different loan programs require home buyers to put down different amounts as low as 10 percent, 5 percent, or even 3 percent.  In fact, some programs require no money down, and in some areas, down payment assistance programs are also available.
 
Myth No. 2: Renting is cheaper.

This statement depends on your rent and the home values in your area.  But even if your monthly mortgage payment ends up being a little higher than what you might have paid in rent, that money is going toward your own long-term financial investment. When you pay rent, you are making your landlord’s mortgage payment rather than your own.  Talk to a mortgage consultant to determine a monthly payment with which you are comfortable, and compare it to the cost of renting to determine which is right for you.  Or, use our Rent vs. Buy calculator to get started!
 
Myth No. 3: You won’t recoup your money.

Real estate is often considered to be a safe long-term investment because home values have historically risen over time. Yes, the housing market may go through cycles, but if you plan to be a homeowner for a long time, your home can build equity and prove to be a wise investment.
 
Myth No. 4: Renting is less of a hassle.

While you may have less vested in a rental property, the work you put into turning a house into your home can be a richly rewarding experience. Not only can you create a home that suits your preferences without the concern of a landlord’s limitations, improvements you make to the property can also help build upon your initial investment.
 

 

If you’d like more homeowner information, please contact a mortgage consultant near you!

 

 

 

 

Reprinted with permission from RISMedia. ©2017. All rights reserved.

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2018 Prosperity Home Mortgage, LLC. All Rights Reserved.


Home Buying Basics

Dec 15
4:55
PM
Category | Prosperity News

Buying a new home can seem overwhelming.  But knowing what to expect – and having a knowledgeable team of real estate and mortgage-lending professionals to assist you – can help make finding and financing your home an exciting and rewarding experience.  Here is a basic overview of the home buying process:

 

1. Obtain a mortgage preliminary approval before you begin house hunting.

  • Learn how much home you can purchase.
  • Strengthen your bargaining position with sellers.

2. Work with your real estate agent to find the right home.

  • Determine your needs and create a wish list of desirable features.
  • Take notes as you preview homes using our house hunting checklist.

3. Make a purchase offer on a home you like.

  • Your real estate agent presents your offer to the seller, who will then choose to accept, counter or reject the offer.
  • When the price is settled, you and the seller sign a Purchase Agreement, defining the terms of the sale.

4. Complete the loan application process.

If you have already obtained a mortgage preliminary approval, contact your lender and let them know you have a contract on a home. Your mortgage consultant will update your loan application and help you to proceed with the home financing process.

5. Have the home inspected.

If you choose to have a home inspection, hire a professional home inspector after the offer has been accepted to provide an in-depth look at the basic systems of the house, which can reveal safety hazards and give you a chance to reconsider the deal.

6. The home will be appraised.

An appraisal, required by your mortgage lender, is a formal, written estimate of the home’s current market value.

7. Obtain title insurance. (where applicable)

Title insurance guarantees the property you are purchasing is free of liens or confusion in rights of ownership, and it also insures against any losses to the property that result from defects in the title or deed.

8. Close on the property.

  • A closing agent coordinates and distributes all the paperwork and funds.
  • Ownership of the property is transferred.

 

And you become the proud owner of your new home!  Our team of mortgage professionals is available to guide you every step of the way to help ensure your home buying process is a smooth one.

Contact a local mortgage consultant, today!

 

 

 

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2017 Prosperity Home Mortgage, LLC. All Rights Reserved.


FHFA Announces Higher Loan Limits for 2018

As the result of a higher average U.S. home price in 2017, the Federal Housing Finance Agency (FHFA) has announced new, higher maximum conforming loan limits for 2018.

In most areas of the country, the 2018 maximum loan amount for one-unit properties will be $453,100, an increase from $424,100 in 2017.  In high-cost areas, the new maximum high balance loan limit will be $679,650, up from $636,150.

As in the past, loan limits may vary by county. Click here for a list and map of the 2018 maximum loan limits for all counties and county-equivalent areas in the U.S.

New Conforming Loan Limit Sample:

2018 Conforming Loan Limit

Sales Price High

Down Payment Amount

$453,100

$467,113

3%

$453,100

$566,375

20%

 

New High Balance Loan Limit Sample:

2018 High Balance Loan Limit

Sales Price High

Down Payment Amount

$679,650

$715,421

5%

$679,650

$849,562

20%

 

Contact your mortgage consultant directly if you have questions on local limits or other home financing options.

 

 

 

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2017 Prosperity Home Mortgage, LLC. All Rights Reserved.


Appraisal disappointing? You have options, according to the Appraisal Institute.
 
"Homebuyers and sellers should first understand what an appraisal is and how it's used," says Jim Amorin, president and acting CEO of the Appraisal Institute. "Real estate appraisals for mortgage finance applications are prepared for the bank or financial institution so they can better understand the collateral risk in making the loan. This can be confusing, because homebuyers typically pay for the appraisal and receive a copy of it."
 
In some cases, the appraisal may not match the contract price—but just because an appraisal comes in below (or above) the listing or contract price doesn't mean it's flawed, Amorin says. The agreed-upon contract price may be above market value, for example. In those situations, the buyer and seller often renegotiate the contract at more favorable or balanced terms.
 
Homebuyers should ask their lender for the qualifications of the appraiser, including whether they are designated by a professional association like the Appraisal Institute, says Amorin. A qualified and competent appraiser knows how to conduct a thorough market analysis and make appropriate adjustments.
 
Homebuyers also can ask whether the appraiser is directly engaged by the bank or whether the bank utilizes an appraisal management company, and what their procedures are for engaging qualified appraisers.
 
"The best way for consumers to combat potential problems with appraisals is to ensure the appraiser hired by their lender is highly qualified and competent," Amorin says. "Consumers have every right to demand the use of a highly qualified appraiser, someone with field experience in their market and knowledge and experience to handle the assignment properly."
 
Contrary to incorrect interpretations of appraiser independence requirements, appraisers welcome information that would assist the development of credible assignment results," says Amorin. If lender policies permit, consumers can accompany appraisers when conducting the property inspection and may provide the appraiser with any information they consider important.
 
Amorin suggests consumers ask their lender for permission to do so, and confirm the appointment. Consumers should also take note of whether an adequate inspection is performed. Did the appraiser spend enough time at the property to observe important features or improvements or potential problems?
 
Homebuyers should take advantage of their right to obtain a copy of the appraisal report," Amorin says. Even though the appraisal is ordered to help assess lender collateral risk, buyers are entitled to a copy of the appraisal report. Federal regulations require lenders to provide property buyers with free copies of appraisal reports no later than three days before the loan closes.
 
Although appraisal review is best performed by qualified appraisers, consumers should examine the appraisal for potential deficiencies, says Amorin. According to "Appraising the Appraisal: The Art of Appraisal Review," common errors in appraisals include: misuse of adjustments to comparables; disregarding special financing and concessions; or miscalculation of gross living area (GLA).
 
Amorin suggests consumers ask themselves:

  • Do adjacent homes add or detract from the value of the subject property?
  • Is the subject property equal to or lower in price than surrounding homes?
  • Does the floor plan have any functional problems?
  • Does the house (particularly the kitchen and bathrooms) require major remodeling to make it comparable with similar homes in the same price range?
  • Is the number of bedrooms and baths in the home comparable to similar homes in the same price range?
  • Did the appraiser perform an adequate inspection? 

"Most lenders have appraisal appeal procedures, known as 'Reconsiderations of Value,'" says Amorin. "If you're aware of recent, comparable sales information or items that may not have been available or considered by the appraiser, provide those to the lender. If problems were found with the first appraisal, you can and should obtain a second appraisal."

 

Learn more about property appraisals here, and contact your local mortgage consultant with any questions about the appraisal process.

 

 


 
Source: Appraisal Institute

Reprinted with permission from RISMedia. ©2017. All rights reserved.

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia,  Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)  ©2017 Prosperity Home Mortgage, LLC.  All Rights Reserved.


Four Prosperity Home Mortgage Consultants Named as VHDA Top Producing Loan Officers

We are proud to announce that four of our mortgage consultants were named as Virginia Housing Development Authority Top Producing Loan Officers. They include Jonathan Haug, Janice Lanning, Mark Fillgrove and Derek Alverson.

“It’s fantastic to see Jonathan, Janice, Mark and Derek receive this well-deserved recognition,” said Tim Wilson, CEO of Prosperity Home Mortgage. “We are very proud of their hard work and of all that they have achieved while helping to make homeownership a reality for their clients. All of us at Prosperity are committed to providing personalized and focused service to every client, and it’s because of that ongoing commitment that we remain among the top lenders in the nation.” 

The work of Haug, Lanning, Fillgrove and Alverson helped numerous individuals and families become homeowners during the commonwealth’s last fiscal year. Statewide, 8,271 people in Virginia purchased a home in VHDA’s Fiscal Year 2017, resulting in $1.62 billion in home loans created.

Haug is a senior mortgage consultant based in Virginia Beach, Virginia. He is a member of Prosperity’s Chairman’s Club for 2016 and was named to Mortgage Executive Magazine’s Top 1% of Mortgage Originators in America 2016 list. Based in Fredericksburg, Virginia, Lanning is a senior mortgage consultant, a member of Prosperity’s Presidents Club for 2016 and was also named to the Top 1% of Mortgage Originators in America 2016 list. Fillgrove is a branch manager for Prosperity and is based in Midlothian, Virginia. He is a member of Prosperity’s Presidents Club for 2016. Alverson is a senior mortgage consultant and a member of Prosperity’s Chairman’s Club for 2016. He is based in Richmond, Virginia, and was also named to the Top 1% of Mortgage Originators in America 2016 list.

Congratulations to each of our mortgage consultants on their success!

 

To learn more about Prosperity Home Mortgage, click here.

 

 

 

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance.  Licensed by the Delaware State Bank Commissioner.  Also licensed in District of Columbia, Georgia, Indiana, Maryland, Michigan, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

NMLS ID #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)

©2017 Prosperity Home Mortgage, LLC. All Rights Reserved.


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