Meet Your Mortgage Team!

When starting the home loan process, you expect to work with a Loan Officer. But you might not be aware of all the behind-the-scenes mortgage team members that work hard to ensure your loan process goes smoothly from application to closing! So, let’s get to know them!

Your Mortgage Team Consists of:

Loan Officer

Your Loan Officer will be your first stop in the home loan process. Your realtor will be able to suggest a trusted Loan Officer but ultimately the decision will be up to you. Purchasing a home is a big decision and you want the best on your side! Your Loan Officer will gather the documentation needed to get your application and prequalification started and will assist you in choosing a program that will best suit your needs!

Production Assistant

Not all Loan Officers have a Production Assistant but if they do, you may often be in contact with them as well. The Production Assistant is an additional set of hands that can assist in collecting paperwork, communicating with various members of the mortgage team, and provides overall support to ensure a hassle-free home loan process.

Underwriter

After the Loan Officer collects what is needed for your loan application, they send it over to the Underwriter for approval. The Underwriter will make the decision whether to make a loan based on your credit, employment, assets, and other factors. Then they will match this risk to an appropriate rate and term or loan amount.

Loan Processor

Another member you will be in contact with throughout the home loan process is your Loan Processor. Your Loan Processor works with you to collect all the necessary documentation for your loan file. This includes pay stubs, W-2 forms, bank statements, and credit report explanations. They work as a liaison between you and the underwriter, title company, and other parties that may be involved to get you to the closing table.

Closer

Finally, we are at the finish line! The Closer reviews all loan-closing documentation to ensure accuracy and that your mortgage loan is fully compliant. They review for errors and work alongside the Processor, Loan Officer, and title company to get anything corrected as need. Once your closing date approaches and all documents are ready, the Closer prepares the loan package and forwards it to the title company for settlement!

The home loan process may seem a bit daunting at first but having the right mortgage team by your side makes all the difference! At First Home Mortgage, we pride ourselves on having a highly qualified mortgage team to ensure you have a stress-free homebuying experience. To find a Loan Officer in your area, visit www.firsthome.com/loan-officers.

To learn more about the home loan process, read our blog post about home loan milestones.

Spring Cleaning Tips

The return of springtime also marks the return of the annual spring cleaning ritual many partake in. Here are some tips for tidying and sprucing up your space this spring.

Spring Cleaning Tip #1: Go Room by Room

When cleaning, taking a room-by-room approach can make things much more manageable. Consider making a checklist for each room you want to tackle, as your tasks for one room may be far different from another. You can prioritize rooms more in need of improvement. Avoiding bouncing from room to room can help you stay on task and avoid feeling overwhelmed.

Spring Cleaning Tip #2: Prioritize Tasks

Figure out what’s most important to you. You may want to consider tackling projects and tasks you normally put off or avoid so you get them out of the way. However, it is important not to take on too much all at once which can cause quick burnout. If you need help gaining momentum and getting motivated, try taking on some manageable tasks you know you can knock out easily first. Your main priorities really depend on how much needs to get done and what you feel is most important to accomplish.

Spring Cleaning Tip #3: Focus on Clutter

As important as actual cleaning is—like mopping, dusting, and wiping down baseboards—focusing on downsizing clutter can be particularly important and impactful in sprucing up your space. Identify things you want to donate or sell, things you want to throw away or recycle and things you want to keep. Once you’ve collected items you want to keep, make sure they all have a particular place to be stored so you always know where to put them away when cleaning throughout the rest of the year.

Spring Cleaning Tip #4: Don’t Forget About Outside

Your outdoor space needs attention, too, especially if it was neglected during winter. Clean and declutter your garage just as you would a room in your house. Remember to clean your gutters, fences, windows, patio furniture, and siding as needed and take care of your lawn.

Spring Cleaning Tip #5: Work on Creating Good Habits

Though spring is a great time to get some serious cleaning done, you can cut down on how much you have to do next spring by cultivating positive habits to practice all year long. Start each morning by making your bed. Try taking 15 minutes at the end of every day to tidy up and put things away. Designate certain days for certain tasks, such as laundry on Sundays and vacuuming every Wednesday. Continue taking a room-by-room approach when cleaning.

Are you thinking about refinancing your home or buying a new one? Contact one of our knowledgeable loan officers today to explore your financing options!

Managing Your Finances Before Buying a Home

Buying a home is one of the biggest investments you’ll make in your lifetime, if not the biggest. There are things you can do to better prepare financially.

Save for a Down Payment

While there are loan options available that allow for little to no down payment, you may find that putting down the standard 20% to avoid private mortgage insurance is in your best interest. No matter what percentage you’re putting down, you don’t want to completely drain your entire savings. If you do, you aren’t leaving yourself with money for closing costs or any potential unexpected emergencies that may arise. Try earmarking savings specifically for a down payment, but don’t discontinue paying your bills or saving for emergencies. If you’re really serious about saving for a down payment, consider tightening your budget and cutting back on unnecessary spending.

Improve Your Credit

The higher your credit score, the better position you’re in to secure a desirable rate. If your score isn’t where you want it to be, there are things you can do to improve it such as making payments on time and keeping credit utilization below 30%. You can also dispute errors with your credit report directly with the credit bureau. You should avoid opening or closing lines of credit as this can negatively impact your credit score.

Pay Off Your Debt

Paying off your debt is always a good thing, but it can be especially important when preparing to buy a home. The lower your debt, the better your debt-to-income ratio (DTI) which is an important metric used by lenders when determining how much you can afford and your general eligibility. Additionally, paying off debt can help raise your credit score. Plus, the less debt you have, the more money you have to put toward a down payment and other expenses that come along with buying a home.

Get Pre-Qualified

There are many benefits to getting pre-qualified. Pre-qualification gives you an estimate of how much you can afford to borrow which helps you explore loan options best suiting your situation and set a budget as you begin your home search. When the time comes for you to actually buy a home, pre-qualification signals to sellers that you are serious about buying and can give you an edge over non-qualified buyers.

Are you thinking about buying a home? Contact one of our qualified loan officers today to learn more!

15 Tips to Reduce Your Utility Bills

Life can get expensive, and some costs will always be outside of our control. Read on for 15 tips to reduce your utility bills and save some serious green!

1. Check the seals on all your windows, doors, and appliances.

Drafty doors and windows make your thermostat work harder all year round. Poor seals on your appliances do double damage since the fridge or oven will have to work harder to maintain their internal temperatures,  while the cool and hot air escaping will also have an impact on the overall temperature of your home. Sealing everything up saves energy and money.

2. Fix leaky ductwork and change your air filter.

Just as windows and doors can let hot and cool air seep out, so can the ductwork for your heating and cooling systems. Check to make sure there are no leaks, and repair any you find. This lets your system run with optimal efficiency and saves valuable wasted energy. An old filter can also reduce the effectiveness of your heat and air conditioning, costing you unnecessary cash. AC pros recommend replacing your air filter every 45-90 days.

3. Give your thermostat a nudge.

Setting your thermostat back when you’re away from home can offer some seriously valuable savings without impacting your comfort. Smart thermostats have programmable schedules that will do the work for you! Also consider light bedsheets in summer and extra blankets in winter, so that you can save a few degrees overnight and still sleep soundly.

4. Adjust your fridge and freezer temperature.

Setting your refrigerator to 38 degrees and your freezer to between 0 and 5 degrees keeps your food fresh, without making the appliance work any harder than it needs to. Setting them any colder is considered unnecessary and ups your utility bill. A packed freezer and fridge help to lower costs even more since the frozen and cooled foods help keep things chilly!

5. Take shorter showers.

Taking just two minutes off your shower time saves about 5 gallons of water every time you wash. This can make a big difference in your water costs throughout the course of a year, especially if you have multiple people in your home and everyone commits and makes the cut!

6. Replace your showerhead.

Can’t shorten your shower time? Try a low-flow energy-efficient showerhead instead. These can save up to 2,700 gallons of water a year! Combining tips 5 and 6 will make for even more savings.

7. Don’t wash clothes in hot water.

Sticking to warm and cold washing machine cycles can save up to 50% of the energy cost of your washer. Be sure to pre-treat stains so everything still comes out looking great!

8. Fix leaky faucets.

Leaky faucets and toilets can end up costing a fortune on your water bill. Regularly check to ensure you have no leaks so that you don’t miss one and end up surprised with a higher than normal utility bill!

9. Adjust the temperature on your water heater.

Lowering the setting on your water heater to 120 degrees versus 130 degrees can save 10% of the energy cost! Turn the water heater to the lowest setting when you’re out of town for even more efficiency.

10. Purchase energy-efficient appliances.

Energy Star-labeled appliances come in a wide variety of price ranges and options, and they can save tons in energy costs over the lifetime of the appliance. If you’re shopping for something new – look for energy efficiency first.

11. Ask about discounted rates.

Some energy providers offer discounted rates during off-peak times. Call your provider to find out if they offer this, and if so try doing your laundry and dishes on off-peak times.

12. Swap out your lightbulbs.

Changing just five of your most frequently used lightbulbs to compact fluorescent or LED Energy Star bulbs can save up to $75 a year. Swap out all the bulbs in your home for an even larger impact.

13. Install dimmer switches.

Dimmer switches aren’t just aesthetically desirable, dimming the lights to suit your mood saves valuable energy as well.

14. Use smart power strips.

This tip is more important than ever with so many of us working from home! Many electronics in our home still use energy when we aren’t using them. Smart Power strips completely cut power to electronics when they aren’t in use, stopping the trickle of wasted energy. The savings can really add up over time!

15. Do an energy audit.

Many utility providers offer home energy audits. These audits can uncover ways your home is wasting energy and give you a personalized plan to correct the problems. Some come at a cost, while some are free! Contact your energy provider to ask about scheduling an audit and see what you can save.

Reducing your utility bills may make a big difference in your budget, and so may reduce your mortgage payment. Contact one of our experienced loan officers today to find out if refinancing your home to help reduce your mortgage payment is the right decision for you*!

*Refinancing your current mortgage loan could result in the total finance charge being higher over the life of the loan.

Source: https://www.nerdwallet.com/article/finance/how-to-save-money-on-your-electric-bill

 

The Dangers of Rate Shopping

Buying a home will most likely be the largest purchase you ever make.  With that in mind, you might assume having the lowest interest rate is best, but this is not always the case.  The lowest advertised interest rate may not be your best option.  Some lenders and mortgage brokers advertise low rates but don’t inform you of all the additional points and fees that come with the mortgage.  Here are a few tips to take into consideration before rate shopping.

Rate Shopping Tip #1: Look at Points and Fees

Always ask about points, lender fees, broker fees, and settlement costs. Points are pre-paid interest that affects the quoted interest rate.  You can ask to have your points quoted as a dollar amount instead of just a percentage.  For example, on a $200,000 loan, one point would equal $2,000.

Rate Shopping Tip #2: Shop Smart

Interest rates fluctuate daily. Talk to your Loan Officer about when the best time to lock in on a rate is.  First Home Mortgage values honesty and service, so any questions you may have for your Loan Officer will be answered diligently, fairly, and in regard to your best interest. If you contact different lenders, make sure you provide each lender with the same information.  Such information will include the quality of your credit, location, type and use of your property, the size of the down payment, and/or the amount of home equity you have.

Rate Shopping Tip #3: Finding the Best Lender

Customer service may be the most important consideration when shopping for home financing. During the loan process, you should feel comfortable disclosing your financial information and asking questions. A trustworthy lender will be responsive and will assess your situation carefully to best suit your home buying needs. Make sure to choose a lender who can offer personalized options and takes the time to understand your goals.  Just remember interest rates don’t always matter.

If you have any questions or would like to get started on this home-buying journey, contact First Home Mortgage Corporation today!  We provide the mortgage you need to make “home” happen by delivering customer service that not only fulfills goals but exceeds expectations.

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