Month: November 2022

New Conforming Loan Limits Are Here!

Posted on by Emily Andrews

The results are in, and they could have an impact on your home buying journey. Effective today, homebuyers may now borrow up to $726,200 in most counties and up to $1,089,300 in higher-cost areas!

The limit on conforming loans backed by Fannie Mae and Freddie Mac is assessed annually. In September, First Home Mortgage responded to a challenging market by updating the conforming loan limit to $715,000 in most counties and allowing qualified homebuyers the opportunity to borrow above the limit while still enjoying the efficiencies of a conforming loan. Today’s announcement pushes that limit even higher to $726,200 for most borrowers.

This news follows the 2021 increase to $548,250 and the 2022 update up to $647,000. Taken together, this represents a 32% increase in just two years. Click here to see how your county compares to the surrounding region — and, as always, don’t hesitate to reach out to one of our qualified loan officers with any questions!

Author: James Baublitz, VP of Capital Markets

Home Inspection: Factors to Keep in Mind when Buying a Home

Posted on by Emily Andrews

Home Inspections help buyers to identify any major issues with a home before closing. An inspector will evaluate the property and write up a list of major and minor repairs that need to be made. Without any penalties as a buyer, you are able to walk away from the purchase offer if there are major defects found with the home. This is ideal for any buyer that doesn’t want the burden of high-cost fixes after closing. Here are some things to keep in mind when purchasing a home.   

  • Home inspection contingencies. A home inspection contingency gives buyers the opportunity to hire a professional home inspector of their choice to point out any issues with the home, both major and minor. With this contingency in place, buyers can walk away from the purchase offer if they choose to.  
  • Financing. Keep in mind many lenders will not finance a loan without a home inspection.   
  • Home inspections can find life-threatening problems like mold or faulty wiring, which could cause a fire.   
  • Inspectors will examine the exterior and interior parts of the home, including but not limited to electrical, plumbing, roof, HVAC, and foundation.   
  • You can negotiate! Home inspection results are a great way to negotiate if you want the home but don’t want to be stuck with all the fixes. Negotiating through the seller fixing some items or shaving off money from the offer could help with the list of issues that arise.   
  • Buyers will typically have a window of time after the home inspection is completed to terminate the purchase and sales agreement or negotiate if they choose.   

Are you interested in purchasing a home and have questions? Reach out to a qualified loan officer today to learn more!   

Introducing First Home Advantage

Posted on by Emily Andrews

We’re excited to announce the launch of our new First Home Advantage program! We couldn’t be more excited about this chance to provide exceptional service to first-time homebuyers — this new program is an opportunity to level the playing field for those who may have been overlooked in the past due to issues with their credit score. 

Under the First Home Advantage program, eligible first-time homeowners will see substantial reductions in offered rates. Borrower eligibility is based upon both their annual income and geography, with different income limits in specific counties. In certain high-cost regions, annual incomes as high as $168,600 are eligible for this program. 

This new program builds upon First Home Mortgage’s commitment to delivering exceptional service to all potential borrowers, especially those engaging in the process for the first time. Despite a substantial increase in prevailing mortgage rates in 2022, over 40% of loans originated by First Home Mortgage have been to first-time homeowners. With the launch of the First Home Advantage program, you’re one step closer to your first home! 

Even as home prices continue to increase, First Home Mortgage is still able to offer competitive rates to borrowers like you, thanks to the new First Home Advantage program. While the current market presents a challenge, our loan officers can safely guide buyers through the process with confidence and ease. If you’re in the market to buy a home, get in touch with the experts at First Home Mortgage — let’s see if you’re eligible so we can help get you home! 

What Today’s Announcement from the Federal Reserve Means for You

Posted on by Emily Andrews

The Federal Reserve remains dedicated to reducing inflation. With inflation remaining higher than we’d all prefer, the Fed just increased rates by another .75% — but what does that mean for you?

The Federal Reserve’s goal is to maximize employment and promote price stability in the economy. When unemployment rates are low and inflation is high, the Fed is focused on the price stability side of their mandate. When the economy heats up and inflation rises, the Fed tries to slow things down by increasing the cost of borrowing money. That is why they are continuing to raise short-term rates: they are attempting to slow the price increases we are seeing in food, energy, and other daily expenses.

Mortgage rates are not directly controlled by the Federal Reserve. Said simply, mortgage rates did not increase .75% with today’s announcement. However, investors often look to the Fed Funds rate as a bellwether for the overall rate environment. When rates are increasing, investors look for higher rates in mortgages, too.

Investors don’t just look at what the Federal Reserve does today; they also look at how their actions projects to the future. With a forward-looking view, investors can make educated guesses about future rates that influence the rates they are willing to provide today. Accordingly, investors often focus even more on what Federal Reserve Chair Jerome Powell says in his press conference — not just in what is written in the official statement.

Markets are dynamic, and events like today’s FOMC statement can impact the rates offered to borrowers like you. If you’re in the market to buy a home, stay in touch with the experts at First Home Mortgage who can help keep you informed as we navigate this challenging market together!

 

Author: James Baublitz | VP, Capital Markets

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