Evaluating Your Wants and Needs as a Homebuyer

July 24, 2023July 24, 2023 Chad Hobot

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When it comes to buying a home, especially with today’s affordability challenges, you’ll want to be strategic. Mortgage rates impact how much it costs to borrow money for your home loan. And, to help offset the higher borrowing costs today, some homebuyers are taking a close look at their wish list and re-evaluating what features they really need in their next home to avoid overextending. As a recent NerdWallet article says:

“A pool, for example, may be nice to have, but it may not provide as much day-to-day value as a garage or a space for a home office . . .”

While that pool may be appealing, think twice about whether or not it’s really something you must have to be happy in your next home. Is getting that pool the main reason you’re moving? Probably not. It’s more likely a need for more space, a home office, or proximity to loved ones, friends, or work that’s motivating you to make a change.

Evaluating Your Wants and Needs as a Homebuyer

So, if you’re looking to buy a home, take some time to consider what’s truly essential for you in your next house. Make a list of all the features you’ll Mortgage Broker, FHA mortgage, low down payment mortgage, mortgage pre-qualification, get pre-approved for a home loan, mortgage pre-approval process, mortgage pre-approval want to see, and from there, work to break those features into categories. Here’s a great way to organize your list:

Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
Nice-To-Haves – These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of these, it’s a contender (examples: a second home office, a garage, etc.).
Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: a pool, multiple walk-in closets, etc.).

Once you’ve categorized it in a way that works for you, discuss your top priorities with your real estate agent. Remember to think carefully about what’s a non-negotiable for your lifestyle and what’s a nice-to-have that’s more of an added bonus. Be sure to discuss where each feature falls with your agent. They’ll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets your top needs.

Bottom Line

Putting together your list of necessary features for your next home might seem like a small task, but it’s a crucial planning step on your home-buying journey today. For a no-obligation mortgage consultation or a mortgage pre-approval, contact Jim Riley today at 612-968-2601 or email jriley@unitedfamilymortgage.com.

Working Remotely Expands Homebuying Options

July 24, 2023July 24, 2023 Chad Hobot

Mortgage Broker, 0 down mortgage, zero down home loans, home loans with no down payment, down payment assistance, apply for VA home loan, VA home loan, veteran home loan, veteran home mortgage

Even as some companies transition back into the office, remote work remains a popular choice for many professionals. So, if you currently enjoy working from home or hope to be able to soon, you’re not alone. According to a recent survey, most working professionals want to work either fully remote or hybrid (see below):

Mortgage Broker, FHA mortgage, low down payment mortgage, mortgage pre-qualification, get pre-approved for a home loan, mortgage pre-approval process, mortgage pre-approval

This trend is good news if you’re looking to buy a home because a remote or hybrid work setup can help you overcome some of today’s affordability and housing inventory challenges.

Working Remotely Expands Homebuying Options

Mortgage Broker, home construction loans, home construction mortgage, mortgage interest rates, best mortgage rates today, refinance mortgage, cash out refinance Remote or hybrid work opens up a world of opportunities. That’s because it allows you to broaden your search for your next home since you’re no longer limited to living close to your workplace. With the freedom to work from anywhere, you can explore more affordable areas that may be located farther away from bustling city centers or your office. This flexibility can be a game changer while higher mortgage rates are making it difficult for some homebuyers to afford a home.

An article from the New York Times (NYT) highlights how remote work can greatly assist you in overcoming that challenge:

“. . . take advantage of the opportunity remote work has presented to move to more affordable communities (either farther out in the suburbs, or in another part of the country).”

And, since the supply of homes for sale is still so low, another key challenge for you today may be finding something with all of the features you want and need. Because remote work allows you to broaden your search radius to include additional areas, you may actually have less trouble finding a home with the features you want the most because you’ll have a bigger pool of options to pick from.

Working remotely gives you the flexibility to find an affordable home with the features you want. In other words, you have a better chance of getting what you need without blowing your budget.

Bottom Line

Working remotely not only gives you more flexibility in your job but also presents a great chance to broaden your search for a home. Since you’re not limited to a specific location, you have the opportunity to explore more options.

For a no-obligation mortgage consultation or a mortgage pre-approval, contact Jim Riley today at 612-968-2601 or email jriley@unitedfamilymortgage.com.

How Homeownership Is Life-Changing for Many Women

April 5, 2023 Diane Nguyen

Mortgage Broker, 0 down mortgage, zero down home loans, home loans with no down payment, down payment assistance, apply for VA home loan, VA home loan, veteran home loan, veteran home mortgage

Throughout Women’s History Month, we reflect on the impact women have in our lives, and that includes the impact on the housing market. In fact, since at least 1981, single women have bought more homes than single men each year, and they make up 17% of all households.

Why Is Homeownership So Important to Women?

The rise in women pursuing homeownership hasn’t just made an impact on the housing market. It’s also been an asset for those buyers and their households. That’s because homeownership has many benefits, both financial and personal.

On the financial side, housing proves to be the key to building wealth for single women. Ksenia Potapov, Economist at First American, says:

“For single women, housing has always made up a large share of total assets. Over the last 30 years, the average single woman’s wealth has increased 88% on an inflation-adjusted basis, from just over $142,000 in 1989 to $267,000 in 2019, and housing has remained the single largest component of their wealth.”

The financial security and independence homeownership provides can be life-changing, too. And when you factor in the personal motivations behind buying a home, that impact becomes even clearer.

A recent report from the National Association of Realtors (NAR) shares the top reasons single women are buying a home right now (see chart below):

Bottom Line

Homeownership can be life-changing no matter who you are. At United Family Mortgage, we get it! United Family Mortgage is a Mortgage Broker. We shop for mortgage deals for our borrowers, from conventional low-interest mortgages and low-down-payment mortgages to zero-downpayment options and VA (veteran) mortgages.

So why get a personal shopper, like United Family Mortgage, for your mortgage? Because you want an advocate, not an order taker. For a no-obligation mortgage consultation or a mortgage pre-approval, contact us today at 763-241-0306.

How Changing Mortgage Rates Can Affect You

April 5, 2023April 5, 2023 Diane Nguyen

Mortgage Broker, home construction loans, home construction mortgage, mortgage interest rates, best mortgage rates today, refinance mortgage, cash out refinance

The 30-year fixed mortgage rate has been bouncing between 6% and 7% this year. If you’ve been on the fence about whether to buy a home or not, it’s helpful to know exactly how a 1%, or even a 0.5%, mortgage rate shift affects your purchasing power.

The chart below helps show the general relationship between mortgage rates and a typical monthly mortgage payment:

Even a 0.5% change can have a big impact on your monthly payment. And since rates have been moving between 6% and 7% for a while now, you can see how it impacts your purchasing power as rates go down.

What This Means for You

You may be tempted to put your homebuying plans on hold in hopes that rates will fall. But that can be risky. No one knows for sure where rates will go from here, and trying to time them for your benefit is tough. Lisa Sturtevant, Housing Economist at Bright MLS, explains:

“It is typically a fool’s errand for a homebuyer to try to time rates in this market . . . But volatility in mortgage rates right now can have a real impact on buyers’ monthly payments.”

That’s why it’s critical to lean on your local expert, United Family Mortgage to explore your mortgage options, understand what impacts mortgage rates, and plan your homebuying budget around today’s volatility. United Family Mortgage also offers tailored advice to your specific situation and goals, so you have what you need to make an informed decision.

Bottom Line

For a 2nd opinion or updated mortgage pre-approval letter, contact United Family Mortgage today. When it comes to the biggest purchase of your life, don’t take the first mortgage offer that comes along, contact United Family Mortgage to shop on your behalf. We are a mortgage broker, not a mortgage bank. We will shop for the best mortgage options, rates, and terms for you. Contact us today at 763-241-0306.

Financial Fundamentals for First-Time Homebuyers

January 31, 2023January 31, 2023 Diane Nguyen

Are you prepping to buy your first home? If so, one of the steps you should take early on is to make sure you’re financially ready for your purchase. Here are just a few of the financial fundamentals you’ll need to focus on as you set out to buy a home.

Build Your Credit

Your credit is one element that helps determine which home loan you’ll qualify for. It also impacts your mortgage interest rate. While there are many factors that go into your mortgage application, a higher credit score could lead to a lower monthly payment in the long run.

So how do you make sure your credit is in the best shape possible when it’s time to buy? A recent article from NerdWallet lists a few tips you can use as you work to build and strengthen your credit. They include:

Tracking your credit and disputing any errors that show up on your reports.
Paying your bills on time. This includes making loan payments and paying down any open lines of credit.
Keeping your credit card balances low. Paying more than your minimum monthly balance when you’re able can help.

Automate Your Savings for Your House Fund

You might also be wondering how you can achieve your down payment savings goals. Bankrate provides buyers with a number of tips to help them save, including searching for down payment assistance programs and ways you can save more, faster. As the article says:

“One of the best ways to save for anything — including a down payment — is to set it and forget it. If you receive a regular paycheck, ask your employer to direct a portion of that payment into a savings account. If you’re a freelance worker or independent contractor, set up a recurring transfer from a checking account to a savings account to establish the routine.”

Get Pre-Approved

As you prepare for your purchase, you’ll also need to have a good grasp on your budget and how much you’ll be able to borrow for your home loan. That’s where the pre-approval process comes in.

Pre-approval from a lender lets you know how much money you can borrow for your home loan. And having that knowledge, plus an understanding of your savings can help you decide on your target price range for a house.

From there, you can start browsing for houses online and see what’s available in your area at that general price point. This can help you really understand your options so you can start to picture your future home.

For Customized Advice, Build a Team of Professionals

For a hassle-free mortgage consultation or a second opinion, contact Jim Riley with United Family Mortgage today at 612-968-2601 or email jriley@unitedfamilymortgage.com.

Bottom Line

If you’re ready to get the homebuying process started, let’s connect so you can begin to build your team of professionals today.

Mortgage Pre-Approval in 2023: What You Need To Know

January 30, 2023January 31, 2023 Diane Nguyen

One of the first steps in your home-buying journey is getting pre-approved. To understand why it’s such an important step, you need to understand what pre-approval is and what it does for you. Business Insider explains:

“In a preapproval [sic], the lender tells you which types of loans you may be eligible to take out, how much you may be approved to borrow, and what your rate could be.”

Basically, pre-approval gives you critical information about the home-buying process that’ll help you understand your options and what you may be able to borrow.

How does it work? As part of the pre-approval process, a lender will look at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow. That can make it easier when you set out to search for homes because you’ll know your overall numbers. And with higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important.

Pre-Approval Helps Show You’re a Serious Buyer

Another added benefit is pre-approval can help a seller feel more confident in your offer because it shows you’re serious about buying their house. A recent article from Forbes notes:

“From the seller’s perspective, a preapproval [sic] letter from a reputable local lender often can make the difference between accepting and rejecting an offer.”

This goes to show, even though you may not face the intense bidding wars you saw if you tried to buy during the pandemic, pre-approval is still an important part of making a strong offer. In fact, Christy Bieber, Personal Finance Writer at The Motley Fool explains it may be the most important part of making an offer:

“Pre-approval maximizes the chances you’ll be able to actually close the deal – and sellers want to see that.

The fact that a pre-approval gives you a better chance of getting your offer accepted is undoubtedly the most important reason to complete this step . . .”

Bottom Line

Getting pre-approved is an important first step toward buying a home. It lets you know what you can borrow and shows sellers you’re serious about purchasing their home. For a no-obligation mortgage consultation or a second opinion, contact Jim Riley with United Family Mortgage today at 612-968-2601 or email jriley@unitedfamilymortgage.com.