Don’t let owning a home top your list of spine-chilling terrors this Halloween! 

Vampires, witches, and ghosts that go bump in the night may have you shivering with fright, but don’t let owning a home top your list of spine-chilling terrors this Halloween. First Home Mortgage is here to lessen your fears and ease the panic regarding homeownership. 

Yes, you may need a down payment when buying a home. But did you know you may be able to put down less than 20%? Some buyers put down 3% or even less, depending on the type of loan, their income, and credit scores.  

Here are some easy steps to follow when making a home purchase:  

Contact a Loan Officer – If you are unsure about where to start first, it is best to consult with a loan officer. They can review your income and expenses and determine what type of mortgage and amount you could qualify for based on your finances.  

Contact a realtor – Once you know the amount of home you can afford, you can have your loan officer provide you with a few realtors to work with in your area. Realtors can help you with areas of interest and types of homes you like based on what you qualify for.  

Your credit – You will want to know your credit score to determine what you qualify for. Remember that you don’t need perfect credit to purchase a home, so don’t let that scare you off. The average credit score in the United States is 698, based on VantageScore data from February 2021.  

Gather all your documents! – When you put an offer in on a home, the process begins for collection of documentation to verify your income. Make sure you are ready! Some forms collected are W-2, tax returns, and pay stubs. You will usually need two years of documentation. 

Still afraid? Reach out to one of our qualified loan officers who can walk you through the home-buying process to make it less scary!

 

Three Things to Know about the Fed’s Rate Decision

The Federal Reserve just increased the Fed Funds rate .75%. What does that mean, and how does it impact the mortgage market? Here are three things to know about today’s news:

1. The Federal Reserve Influences Mortgage Rates, They Do Not Set Them

Many have the misconception that the Federal Reserve’s actions have a direct impact on mortgage rates. Many assume that if a mortgage was offered 6% this morning, it’s now 6.75% after this afternoon’s announcement. That isn’t the case, however. The Federal Reserve sets the rates banks charge each other, not the rates lenders offer borrowers. The Fed’s actions influence the overall rate environment; it doesn’t set those rates.

2. The Federal Reserve is Trying to Ease Inflation

The Federal Reserve is heavily-focused on easing inflation in the US economy. They are trying to be aggressive in their actions to stop inflation before it takes hold for the long haul. This is good news for home affordability; lower inflation helps boost borrower buying power.

3. Today’s Rate Decision is a Step in the Right Direction for the Economy

The Federal Reserve has two goals: full employment and price stability. The unemployment rate remains low at below 4%, but increasing inflation is causing problems in the US economy. The Federal Reserve’s focus on reining in inflation and today’s announcement will make a significant impact in helping to stabilize the economy as a whole.

Contact us or one of our qualified Loan Officers to learn more!

Author: James Baublitz, VP Capital Markets

Mortgage-Related Agencies to Know

When buying a home and exploring mortgage options, you’re likely to encounter different agencies you may not be familiar with. What do these mortgage-related agencies do and why are they important?

Fannie Mae and Freddie Mac

Fannie Mae and Freddie Mac are two separate entities that purchase mortgages from banks. Fannie Mae is short for the Federal National Mortgage Association while Freddie Mac is short for the Federal Home Loan Mortgage Corporation. Both Fannie and Freddie’s purpose is essentially to give lenders more capital via the sale of mortgages which, in turn, allows the lenders to continue offering loans to additional borrowers. Fannie is the older organization of the two, having been established in 1938 while Freddie was established in 1970. They have different requirements for the kind of mortgages they purchase, and a key difference between the two is that Fannie Mae generally tends to buy loans from bigger lenders and commercial banks. In contrast, Freddie Mac tends to buy loans from smaller banks.

FHA

The Federal Housing Administration, or FHA for short, is a government agency that falls within the Department of Housing and Urban Development, otherwise known as HUD. The FHA was founded as part of the National Housing Act of 1934 introduced by President Franklin D. Roosevelt as part of his famous New Deal. The FHA offers mortgage insurance-backed mortgages to consumers via specific FHA-approved lenders (of which First Home Mortgage is one). FHA loans are often thought of as allowing individuals, particularly those with lower incomes, to obtain homes they would otherwise not be able to afford. FHA loans are known for their 3.5% down payment and lower closing costs and credit requirements.

USDA

The United States Department of Agriculture, also known as the USDA, is the federal department tasked with overseeing public policy related to agriculture, food, natural resources, rural development, and more. The USDA offers home loans for properties in eligible rural areas to low- and moderate-income households who meet certain requirements. USDA loans offer 100% financing (no down payment required), but borrowers must meet income eligibility; their income can not exceed 115% of the property area’s median household income. Check out their online eligibility tool to see if a property is USDA eligible.

VA

The United States Department of Veterans Affairs, more commonly known as the VA, is the executive branch department that oversees healthcare and other benefits and services for military veterans. One of the services offered to veterans by the VA is home loans. VA loans are available to eligible current and former service members and surviving spouses. VA loans are known for not requiring a down payment or mortgage insurance, much like USDA loans, but there are no limitations on where a property may be purchased. To determine if your service qualifies you for a VA loan, speak to a Loan Officer and check out the VA’s requirements.

Are you thinking about buying a new home or refinancing your current mortgage? Contact one of our highly knowledgeable Loan Officers today to discuss your financing options.

The Best Home Technology Featured at CES 2022

What’s better than being a homeowner? Being a smart homeowner! And thanks to CES 2022, we now know about the incredible technology that will soon be available to make your life at home even easier. Here’s a look at our top five favorite items that were featured at the show.*

  • LG is taking cooking appliances to the next level. The company introduced the InstaView Double Oven Range that features InstaView technology – all you have to do is knock on the window glass and the interior oven light will turn on. It also includes a design that makes cooking more efficient by reducing bake times. And this oven can also be used as an air-fryer or in sous vide mode.
  • Programmable motorized blinds by Eve x Coulisse allow you to schedule when your blinds open and close. They include Bluetooth connectivity and Apple HomeKit so you can control them from your device.
  • In 2022, a light bulb is much more than just a source of light. Sengled has announced their new Smart Health Monitoring Bulb that will track your sleep, heart rate, and other biometric measurements including body temperature using radar. The bulb can work alone, or multiple bulbs connected via a Bluetooth mesh network work together to create a virtual map that can help detect human behavior. Camp said it could even determine if someone has fallen.
  • You no longer have to worry about cleaning and emptying your robot vacuum. The new Roborock S7 MaxV Ultra features a scrubbing feature plus an automatic mop-lift that raises the pad when going over the carpet. Its compatible Empty Wash Fill dock can also wash the mopping cloth and refill the tank with water, as well as empty the vacuum and clean the dock. Sign us up!
  • And last but not least, Kohler has done it again. If taking a bath at the end of the day sounds like a dream come true, you’re going to want to continue reading about their two new products. First up, the Stillness freestanding bath features light, fog, and aromas to help relax the mind. Kohler also introduced their PerfectFill technology that includes a built-in voice assistant to control how your bathtub fills, heats, and drains.

*First Home Mortgage was not incentivized in any way by the company’s and products mentioned in this blog post

Preparing For The Holiday Season

With the world slowly getting back to a new normal after Covid-19, this year’s holiday season might reflect the past holiday seasons, which for many is hectic. If you’re hosting dinner at your house this year, your mind is probably going through every detail before guests arrive. Here are a few pointers to help you stay on track and have a (hopefully) stress-free holiday season!

Focus

There’s no time to clean every inch of your home the day before your guests arrive, so prioritize cleaning efforts by taking care of what’s needed most. Start by getting rid of clutter from the main living areas and guest bedrooms. Clean the tops of your counters and coffee tables, removing anything unnecessary that takes up space or appears unorganized. If you’re down to the wire, store the clutter in the basement, unused closets, or car trunks. If it’s out of sight, it will be out of mind. You can always reorganize after your guests leave.

Guest Bathroom

If there’s one place you shouldn’t skimp on cleaning, it’s the bathroom. Even if the rest of the house can’t be spotless, pay extra attention to the bathrooms your guests will use. Provide extra toilet paper, fresh towels, clean bathmats, and toiletries (in case someone forgets). Empty your trash bins and remove personal bathroom belongings from the counters. This especially is important if you are hosting overnight guests.

Safety

Candles, cooking, and crowded rooms can mean disaster during the holidays. Make sure there are no decorations that could be considered a fire hazard, such as tall uncovered candles. Check your fireplace to see if it’s clean and the door is working properly. Smoke detectors should have fresh batteries and it’s always best to keep a fire extinguisher handy. If there will be children in the home, hide matches and lighters as well as any toxic cleaners.

Comfort

Consider the number of guests and sitting space available. Bring in more chairs or ottomans and arrange seats so all the guests can move and engage freely. Also, consider the room temperature – a lot of people in one house can get stuffy, so don’t crank up the heat too much. Provide fresh sheets and extra blankets in the guest rooms in case anyone gets cold at night.

Space

Since a home’s foyer has the most traffic, make sure it’s clear of any luggage or shoes. Have a designated place where everyone can place their belongings as soon as they enter. Provide extra hooks and coat hangs when needed. If possible, clear out a closet entirely for guests as well as drawers if they need to unpack.

Kitchen Zone

The kitchen will be the headquarters during the holidays, so make sure it’s ready. Clear your kitchen sink, drying rack, and counter space. Count all of your plates and utensils so you can provide enough for guests. Perform a quick scan of your fridge and create space by tossing what needs to go. Have containers ready for leftovers – for you and for guests to take home. If people tend to visit while you cook, place extra stools or chairs around or within the kitchen along with some drinks and snacks.

In the end, the most important thing to remember is to enjoy your family and friends. Make sure to find the time to relax and be thankful for the memories you’ll make at home!

Adding Value to Your Home This Fall

For most homeowners, fall is the season you adorn the house with harvest decorations and take in the colorful foliage. The new season can also be the perfect time to tackle some home improvement projects you have on your to-do list. The cooler weather makes outside DIY tasks more bearable, or if you decide to hire help, there may be more available contractors during the “off” season.

By making a few minor updates you can increase the curb appeal and overall value of your home. So, if you’re a homeowner planning to sell in the spring or you’re just looking to gain sweat equity, it might be time to roll up your sleeves and invest in a few simple improvements:

Paint the front door.
One of the most effective, yet simple, ways to spruce up your home’s exterior is by painting the front door. Applying a fresh coat of paint instantly gives your home a more polished look and the cooler weather is optimal for exterior painting. Repainting the shutters to match is also a nice touch!

Repair the deck or patio.
Having a deck or patio is something that home buyers value enormously. However, if the wood is warped, splintering, or faded, it becomes more of a problem than a benefit. The sight of a deck in poor condition can reflect badly on the overall aesthetic of the backyard. If your deck needs to be repaired, simply power washing or applying a new finish can do the trick. However, if the overall structure needs work, it’s probably worth the investment to hire outside help.

Power-wash the exterior.
The amount of value this adds to your home depends on the level of cleaning needed. Taking care of a few minor stains will help a home sell and it’s a moderately easy DIY project for the homeowner. However, if most of the exterior needs washing, hiring a professional could add phenomenal value when the job is finished. Although the cost of using outside help might be intimidating, having your home look like new will be worth it.

Replace the windows.
Windows can be a costly investment, so it’s wise to hold off on complete replacement unless there is serious damage, or the insulation is so poor it racks up utility bills. If you have large bay windows, periodic washing of the interior and exterior will help retain your home’s look and value.

Update your HVAC.
If your HVAC system is more than 15 years old, it might be worth it to upgrade. It’s not a major highlight on a buyers list, but if they point out the system is old, it could be a way for them to negotiate a lower price.

Clean the gutters.
Cleaning the gutters probably seems like a less exciting task on the home improvement list, but regular maintenance prevents larger problems down the road. Overlooked rain gutters could amount to foundation damage, which would mean substantial costs and devaluation of a home. To prevent future damage, make sure you stay on track with this chore and give your home the care it needs to last a lifetime.

New Conforming Loan Limits for 2021

LOAN LIMITS FOR FANNIE MAE AND FREDDIE MAC INCREASE TO $548,250 IN 2021, AN INCREASE FROM $510,400 IN 2020.

The Federal Housing Finance Agency has announced the Fannie Mae and Freddie Mac conforming loan limits for mortgages for 2021.

Each year, the baseline conforming loan limit is adjusted accordingly with the change in the average U.S. home price. House prices during the third quarters of 2019 and 2020 have increased by 7.42 percent on average; therefore, the Federal Housing Finance Agency is increasing 2021’s maximum conforming loan limit by the same percentage. This marks the fifth year in a row that there has been a limit increase by the FHFA. The baseline loan limit has increased by $131,250 since 2016.

The limit is different in some places known as high-cost areas. These are areas in which 115 percent of the local median home value is higher than the baseline conforming loan limit. The Housing and Economic Recovery Act establishes the maximum loan limit in those areas while also setting a ceiling on that limit which is 150 percent of the baseline loan limit. The new ceiling loan limit in most high-cost areas for 2021 will be $822,375, which is 150 percent of $548,250.

Here at First Home Mortgage, we continue to provide the highest level of customer service while adhering to social distancing guidelines. Our innovative communication technologies allow us to exceed your expectations while keeping everyone as safe as possible.

If you are considering purchasing or refinancing a home, please contact one of our Loan Officers today!

Why Pre-Qualifying for a Loan is Important

In order for the loan process to run smoothly, one of the smartest things to do is get pre-qualified for a mortgage. A pre-qualification is an estimate of how much you can borrow from a lender which allows you to explore loan options specific to your financial situation. Pre-qualifying for a loan before you go home shopping helps you set a budget and strengthen your negotiating position when making an offer. Having a pre-qualification is also a good sign to the seller that you are serious and ready to buy. This is particularly important these days since it’s a seller market and homes are going quickly. Taking this step to be prepared can get you ahead of the game.

How to Pre-Qualify

Pre-qualification is a simple process that can be done at zero cost and completed online. Contact your Loan Officer to find out which documents you should prepare to complete the pre-qualification form. Once you pre-qualify successfully, you can request a letter stating how much you may be able to borrow based on the information you provided. You can share this with your real estate agent or simply tell the agent a price range based on the outcome of your pre-qualification.

Pre-qualification vs. Conditional Approval

Conditional approval requires more information and is a much more serious level of approval. Conditional approval means you will have a commitment to a specific loan program at a specific loan amount. It will also provide more information about your interest rate and monthly mortgage payment.

Before you start your journey as a home buyer, contact one of our Loan Officers to get pre-qualified!

 

Selling Your Home During Winter

Many people believe winter is the most undesirable time to sell your home, but this doesn’t have to be the case. If you know what to expect, you can have just as much success selling your home during winter than you would any other time of year. Don’t be afraid to list during wintertime.

Who’s Buying in During Winter?

In many cases, you’re likely to see more serious buyers in winter than in spring and summer where it’s more popular to look for homes even casually. There are a whole host of reasons someone may be looking to buy a home during winter, some of which come with increased urgency to find a home such as job relocations, an expiring lease, or a contract on their current home. If someone is willing to battle cold and sometimes inclement weather to see your home, it’s probably because they’re serious about buying. The weather can help your home sell faster, too; people are less likely to want to look all over town for a home when it’s cold or snowy which means they may be more likely to choose one of the first homes they see that fits their needs.

The Internet is Your Friend

Virtual listings and showings are always important but especially are during the winter months when it’s cold and gets dark earlier. This is even more so the case now in the wake of COVID-19 with fewer people venturing out. Be sure to get your home on as many listing sites as you can to increase its visibility. Make sure your listing description is thorough and engaging. Depending on scheduling, you may find most of your showings are at dusk or after dark; talk to your realtor about considering a virtual 3D walkthrough to fully showcase your home during the daytime for interested buyers.

Know How to Prepare and Stage Your Home

Prepping and staging your home for its online listings and open houses is always an important part of the selling process. There are some particulars you should keep in mind when selling during the winter months. Winter can be dreary, so let in as much light as you can. If you’re going to be holding in-person showings, ensure all walkways are cleared if it snows and be sure to keep the temperature inside warm and comfortable for visitors. When it comes to decorating for the holidays, keep it simple and tasteful; potential buyers want to envision themselves in your home year-round, not just at the holidays. Make your environment cozy and inviting; you can even consider offering coffee and hot chocolate to prospective buyers.

There’s no need to be afraid of selling your home during the winter months. If you’re preparing to sell your home, you’re probably thinking about buying, too. Contact one of our experienced Loan Officers today to learn more about financing options.

4 Easy Steps to an Organized Garage

Your garage can serve many purposes, but not if it’s full of clutter. A recent study showed that only 30% of homeowners with garages use them to store their vehicles because they are just too full! If you are ready to organize your garage, the good news is that this is a project you can tackle yourself at little to no cost to you.

Step 1: Purge Unnecessary Items

Set aside a few hours or a whole day to go through absolutely everything in your garage. Sort items into four separate piles – items to keep, items to sell, items to donate, and items to the trash. Make plans to drop off donations and sell anything you’d like to right away, so you can free up that space for your “keep” pile. Put the trash out immediately, or schedule a trash pick up or take a trip to your local dump as soon as possible if it’s too much for your regular trash service to take.

Step 2: Decide Which Keep Items Stay in The Garage

Some items should not be stored in a garage. Move anything from the list below to a safer spot in your home or yard!
Paint Cans: Extreme cold or heat can ruin the paint. It’s best to store cans in a temperature-controlled area.
Propane and Other Fuels: Experts recommend keeping this outside and away from your home since a small spark could ignite them.
Paper goods and Pet Foods: These can attract pests and small animals to your garage. They are safer when stored indoors.
Extra Refrigerator: This can be a huge energy drain in spaces that are not air-conditioned, and is better off indoors if possible.


Step 3: Make the Most of Your Storage Space

Sort your “keep” pile, such as lawn and garden, bikes or sports equipment, tools, seasonal items, etc. An organized garage starts with storing it all! Wall hooks and open shelves are an inexpensive way to add lots of extra vertical storage space in your garage. Clear or labeled bins are great for grouping and storing smaller items. Clear jars are perfect for keeping track of very small items like nuts and bolts. Wall hooks and baskets can hold all sorts of items, from bikes and hoses to flowerpots. Large items such as lawnmowers should go against walls or in corners to avoid bumping into them with your vehicle. It’s a good idea to store frequently used items closer to the garage door for easy access, while seasonal items can be stored out of the way until they are needed. The garage ceiling can be a great spot for flat, infrequently used items like sleds and beach chairs, just be sure they are placed out of the way of your garage door and high enough not to scratch the roof of your car.

Step 4: Safety Counts!

It’s a good idea to keep a fire extinguisher mounted or easily accessible in your garage, in case of emergency. A carbon monoxide detector can add additional peace of mind (even though you should never leave your car running with the garage door closed!).

You’re now ready to start on your journey to an organized garage.

Considering moving or refinancing in the near future? If so, one of our experienced Loan Officers would love to help!

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