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In part one of this two-part blog series, we went over some basics on how loan officers and realtors, or real estate brokers, work both separately and together for clients during a mortgage and homebuying process. Each of these important positions within a home loan setting has its own set of goals and primary responsibilities, but the two will often cross over or relate in several ways.

At Primary Residential Mortgage, we’re proud to offer the very best in home loans and mortgage rates to all our clients, plus to work with a wide range of realtors to help our clients achieve their goals of homeownership. In today’s part two of our blog series, we’ll go over some of the other important areas all clients will pass through during this process, and the role both loan officers and realtors carry during each step.

Financing

We left off in part one with “ready, willing and able” mortgage clients, an area that’s mostly the responsibility of loan officers. Once pre-qualification or pre-approval has been done to assure the readiness of the client, it’s time to move to determining the best form of financing.

This area will depend heavily on the client’s personal situation, from their credit score and history to income level and more. Some clients will qualify for specialty loan programs like FHA, VA or USDA loans, while others will be best-served going the conventional loan amount. Loan officers will also work with clients on whether the loan will be fixed or adjustable interest rates.

Documents

Once you’ve identified the optimal financing type, the next step is to get all the right documents in order. Most of these are provided by the loan officer, and will often be sent not only to the buyer, but also to their realtor and potentially the seller so everyone can proceed with all the proper information.

In-House Services

One major quality that it pays to look for in a lender: In-house services, particularly in areas like underwriting. At PRMI, we happily employ an in-house underwriter that’s always available, so there are no delays or major hassle areas for any mortgage approval process.

In some cases, realtors are very selective about the loan officers and lenders they will work with. Due to convenience and time issues for their clients, some will only work with lenders who have in-house services available.

Expertise

Finally, whether it’s for your loan officer, your realtor or any of the other professionals who may assist in the mortgage or homebuying process (lawyers, title agents, insurance agents, etc.), one factor stands out from the rest: Experience. These professionals not only have to work with you, they often have to work with each other on detailed processes to complete a given sale or mortgage loan. Utilizing professionals who are familiar with the field and know exactly how to proceed will make your experience both more pleasant and more efficient.

For more on the role of realtors and loan officers in the home loan process, or to learn about any of our mortgage loans or services, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.

There are several important parties who may play a role in your mortgage and homebuying situation, and two of the most well-known are loan officers and realtors. In fact, these two individuals or entities will often work together or complement each other in important ways, helping clients achieve their final goal of homeownership.

At Primary Residential Mortgage, our loan officers are the best in the business, with numerous local connections that help us best serve you in the home loan realm – including to realtors who we’ve worked extensively with in the past. What does a realtor do, and how do their tasks and goals mesh with loan officers? This two-part blog series will go over several important details.

Defining Realtors

First and foremost, let’s define a realtor so you have a baseline here. A realtor, also known as a real estate broker, real estate agent or a few other similar terms, is simply an individual who represents both buyers and sellers during real estate transactions.

In most cases, realtors work under a licensed broker as they represent their clients – though there are those who work independently. Realtors may actually be broken down into a few sub-categories: Seller’s agents, buyer’s agents, dual agents and transaction brokers (a limited form of representation).

Realtor Goals

Realtors generally have three primary goals for a buyer:

• Work with willing and able buyers to find properties that meet their needs and financial constraints.
• Negotiate a good deal for the buyer so they get optimal terms on their loan and property.
• Maintain order in the process and help clients navigate any difficult areas.

Loan officers play a significant role in helping realtors meet these goals, and vice versa. While the two perform different tasks for clients, there are several areas where they organically connect. We’ll go over those in our upcoming sections.

Ready and Able

We mentioned above that realtors generally work with “ready and able” buyers. What does this mean, and what role do loan officers play?

Generally, this phrase refers to buyers who have at least a basic understanding of their purchasing power on the homebuying market. This means getting either pre-qualified or pre-approved (or both), which happens through a loan officer – the easier this process is, including many companies like ours who offer online application methods, the simpler this will be for the buyer. This is one of the key areas where the loan officer-realtor link can be seen: Realtors with connections to good loan origination companies will be able to make this process far easier for their clients, which leads to a greater chance of recommendation and repeat business.

For more on the connection between realtors and loan officers, or to learn about any of our mortgage rates or mortgage lender services, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.

In part one of this two-part blog series, we went over some of the basics on obtaining a mortgage if you don’t receive a traditional form of income. There are many people who fall into this category, whether it’s variable income, complex income or some other type based on the gig economy and numerous independent contractor jobs out there today.

At Primary Residential Mortgage, we’re happy to help you with understanding and qualifying for many of our mortgage loan options, even if you don’t receive a traditional salary or even work a standard hourly-wage job. In today’s part two of our series, we’ll go over some of the general tips we offer those in this situation for how to best position themselves and their finances for a mortgage application, plus some of the unique details they may have to deal with as they move forward in the process.

Improving Credit

One area that doesn’t really change at all from a standard income situation: Credit, which remains a vital factor in any mortgage application regardless of your income type. In fact, because income might be a less reliable source of determining your ability to repay a mortgage, credit may take on an even larger role than normal.

For this reason, it’s vital to try and have as high a credit score as possible – at least 700 if you can, though options may be available below this. If your score is significantly lower than this, speak to one of our loan officers for general tips on limiting your debt and raising your score ahead of applying for a mortgage.

Down Payment Savings

Another area that is very important for a mortgage application without a fixed income is your down payment, which will help limit the risk the lender is taking by loaning money to you. There are a few different approaches to ensuring you have a substantial down payment amount, including borrowing against investment accounts or other saving methods. In addition, one option to consider here is the rent-to-own situation, where your rental payments can be increased slightly over the previous months or years to help you build your down payment over time.

Paperwork Details

Now, one big area that may vary somewhat from a traditional income loan is the paperwork you have to fill out. Some areas will be the same here – tax returns for at least two years, proof of income in the form of tax forms, bank statements and others, plus any income investments or assets. You should also bring information on your previous rental showing you’ve made payments on-time.

In addition, however, you will need to offer an explanation of your unusual income trends and why a lender should not be concerned about them when loaning to you. Finally, you’ll have to sign a Form 4506-T. This allows the lender to request a copy of your tax returns, which allows them full comfort when evaluating your finances.

For more on obtaining a mortgage despite a non-fixed income, or to learn about any of our mortgage rates or home loan services, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.

In today’s modern economy, more and more people are obtaining income through non-traditional sources. From gig workers to independent contractors and more, the pool of people who don’t work a traditional 9-5 job continues to grow every year.

At Primary Residential Mortgage, we’re here to offer numerous mortgage loan programs with fantastic mortgage rates for a variety of clients, including those with non-traditional forms of income. Two types that are generally considered here are known as variable income and complex income – how do these compare, and what are some tips we can offer on obtaining a great mortgage despite uneven or unusual income sources? This two-part blog series will go over everything you need to know.

Variable Income Vs. Complex Income

Firstly, let’s view a basic primer on these two terms for unusual income sources, which generally refer to the following:

• Variable income: Gig workers, freelancers, independent contractors and those who virtually never receive a steady paycheck from the same company consistently.
• Complex income: Often refers to those who do earn salaries, but also can earn other performance benchmarks like overtime, commission, banding or others. This category may also cover those with hourly incomes or those who have become equity partners in their business and receive income differently.

Similar Practical Outcomes

Now, it should be noted that some in the mortgage industry will use these terms interchangeably, or others like “unusual income.” While this may be in error technically, it’s usually not a problem – this is because the practical outcomes for each type are relatively similar. Mortgage lenders will look at the situations in many of the same ways, with some variation depending on your circumstances, but the way you should proceed during your application or other stages is pretty much the same.

Our subsequent sections will go over the steps to take if you fall into these categories.

Income and Debt Documentation

For starters, no matter your income source (or sources), do your very best to document all income and debts over at least the last two years. Lenders need to see this sort of history, especially from those who do not have a steady paycheck coming in.

Calculate both base income and any major dips in income. If you’re a seasonal worker of any kind, prepare yourself for questions about this and be ready to share further specifics. In addition, get as good an idea as you can of your debt-to-income ratio, or DTI, which refers to the monthly debt payments you make compared to your average monthly income over this two-year period.

For more on obtaining a mortgage despite uneven income sources, or to learn about any of our mortgage rates or home loan services, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.

The mortgage process can be somewhat complex and detailed in general, and this is especially so for Spanish-speaking borrowers who may struggle with the language barrier. Both due to language and potential cultural differences, some of the details of the process may become tougher or more time-consuming to deal with.

At Primary Residential Mortgage, we’re proud to showcase our team led by Armando Rams Jr., a bilingual Spanish-speaking mortgage lender with a long track record of assisting Spanish-speaking clients throughout this process. What are some of the key potential mortgage and homebuying issues our team will help avoid and sort through for those dealing with a language or cultural barrier? Here’s a basic primer to help you understand, utilizing a few common scenarios as examples for how we assist you.

Language or Translation Barrier

As we noted above, perhaps the single most common barrier in this process for those who speak Spanish as their first language is simple translation. Mortgages and homebuying processes are already full of some pretty complex words and terms even for primary English speakers, and this can be even tougher for those who speak another language.

Luckily, our team is here to help. Not only will our loan officers work directly with Spanish speakers and provide basic translations or explanations for any area they’re uncertain in, we’ll also provide other resources in Spanish to help with education.

Unfamiliarity with Process

Another common concern for Spanish speakers is not about language itself, but rather about cultural differences and lack of experience in the North American mortgage market. There may be parts of this process that are completely unfamiliar to those in this position. A Spanish-speaking lender like ours assists with both the language barrier and other issues with the process or experience, making things as simple as possible for Spanish-speaking borrowers so they understand every important factor.

Credit Concerns

One specific type of unfamiliarity to highlight here is credit concerns. Some Spanish speakers might not fully understand how the credit history and credit score systems work or how important these are for qualifying for a mortgage. Our lenders, however, will happily take the time to explain these and other simple factors that will heavily impact the mortgage application.

Veteran Needs

Finally, a number of US military veterans are Spanish speakers, including many who count Spanish as their first language. If there are language or culture barriers involved here, such veterans, active service members or even their spouses might be unaware they qualify for the VA loan program, which offers fantastic benefits and low mortgage rates to many qualified service members. Employing a quality Spanish-speaking lender will ensure service members are informed of their options here.

For more on the value of a Spanish-speaking mortgage lender, or to learn about any of our mortgage loan services, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.

In part one of this two-part blog series, we went over some of the basic tips on retaining your home’s value once you’ve purchased it. Homeownership is a long-term investment, and many buyers engineer their mortgage and other financial factors to account for this – and performing basic upkeep steps to retain value plays a major role.

At Primary Residential Mortgage, we’re happy to offer not only a huge range of mortgage loans and the best mortgage rates available, but also expertise on numerous related areas, including retaining home value following a purchase. In today’s part two of our series, we’ll look at several other primary areas to keep an eye on when it comes to long-term home value retention.

Roof and Attic Attention

We mentioned exterior themes in part one of this series, and one of the single most important within this realm is the roof of the home. You should be performing a basic visual inspection of the roof at least a few times per year, checking for missing shingles, clogged rain gutters or other clear issues – many of which can be easily remedied, either on your own or with the assistance of a local roofer.

With the right care, roofing elements should last decades. Some materials, such as metal and tile, can last for up to 50 years in many cases. But if you don’t take the proper maintenance course here, you may find your roof wearing down in closer to five or ten years, costing you a major sum in the process. The attic area is also often an ideal area to inspect when checking for roof damage like leaks or related concerns.

HVAC System

There are a few important areas to keep in mind when it comes to HVAC systems, and perhaps the most vital for homeowners is also the simplest: Changing filters regularly. Not only does this keep the air in your home healthier, it also limits the strain on your system due to clogged filters.

Beyond this, we strongly recommend contracting with a local HVAC company for other needs. They will assist with everything from standard seasonal maintenance to minor repairs.

Kitchens and Bathrooms

Two of the room areas in homes that tend to have the most direct connection to property value are kitchens and bathrooms. If you’re considering a home remodel at any point, these are rooms that should be prime candidates. In addition, as these are vital areas for many homebuyers, check regularly for issues like leaks, mold and mildew or related concerns.

Other Areas

A few other areas to note when it comes to retaining home value:

• Asphalt and concrete surfaces: Whether in driveways, patios, walkways, garage floors or other areas.
• Basement: Check for foundation cracks and any leaks or settling concerns.
• Hardwood floors: Should be refinished at least once every 10 years to prevent permanent damage.
• Smoke and CO2 alarms: Test them regularly and replace batteries at least once a year, or more often if needed.

For more on how to retain home value after a purchase, or to learn about any of our mortgage company services or home loan programs, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.

At Primary Residential Mortgage, we’re proud to offer a comprehensive mortgage loan and homebuying services to all our clients. Whether you’re interested in a conventional loan or a loan program like a VA loan, FHA loan or USDA loan, we’ll walk you through the application and approval process, plus assist you with closing on your desired home and several areas of future homeownership.

Within this latter realm, one of the most important factors for all new homeowners will be keeping their home value high. Even if you don’t plan to sell for a long time (or maybe ever), there are several distinct benefits to retaining home value – and if selling could be a possibility at any point in the future, this area takes on even greater importance. This two-part blog will go over several important areas to consider when it comes to retaining home value in your newly-purchased home.

Standard Maintenance

One of the single biggest areas when it comes to keeping your home value high is seeing to regular maintenance for standard areas. We’re talking about items and fixtures like plumbing, HVAC components, electrical connections and various appliances throughout the home, particularly larger ones that come with a high cost if they break down.

This area involves setting aside a limited home maintenance budget each month, a budget that will largely depend on how much of this work you’re able to do yourself compared to how much you’ll be outsourcing to professionals. The latter area can save you money, but be sure not to over-extend yourself beyond your skill level – not only will this come with safety risks, you may risk lowering home value if you make a mistake in an area a professional could have handled without issues.

Exterior Themes

One major theme when it comes to home value is one known as “curb appeal,” a common real estate term that speaks to the first impression people get when they first view your home. There are several important factors to consider when it comes to exterior curb appeal, from ensuring proper color themes to making sure areas like siding, gutters, windows and others are in great shape.

One idea that often brings great ROI for a home: Painting the exterior. This is a great way of minimizing any signs of aging or visual imperfections, bringing a fresh look to the home with making it more aesthetically pleasing for a low cost.

Landscape Areas

Another area that’s vital within the realm of curb appeal is your outdoor landscape. Those viewing the property will not view it positively if they see things like unkempt lawns, dead or decaying trees and especially potential safety hazards, which can take place in yards that don’t get enough attention.

For more on how to retain home value once you’ve purchased one, or to learn about any of our home loan products or services, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.

Have you been renting for your living arrangements for many years, but are now considering purchasing your own home? You may be unsure whether this is the right move, or whether the benefits of purchasing a home outweigh the financial risks and steps you’ll need to take to do so.

At Primary Residential Mortgage, we’re here to help. We provide a huge range of home loan options to all our clients, including first-time buyers who need the right program to make their purchase work financially. For those who are still on the fence about this decision, here are four of the most specific benefits that come with homeownership compared to renting.

Debt and Savings

When you switch from a rental situation into one where you own your own home, the debt lever reverses itself in one fell swoop. Before, your monthly rent contributions were going toward paying down your landlord’s mortgage (with a little extra on top for their trouble); when you buy a home, you’re paying off your own as you begin to own more and more of the house with each payment.

When you finish a rental lease, you might get your security deposit back depending on the state of the home; when you finish a mortgage, you own the home outright. This means you are building value in an asset, one that allows you to build a much more robust savings plan for the rest of your life.

Building Equity

Speaking of building value, it’s another huge part of the benefits of owning a house. With each payment you make toward your mortgage, you own another percentage of the home – this is known as equity, which can be used in several ways. For instance, you can borrow against home equity in the case of an emergency medical bill or a need to pay child tuition.

Stability

Apart from rare renters who live in rent-controlled areas, rent is likely to increase significantly over the years. But if you buy a home with a fixed-rate mortgage, your monthly mortgage payment will be stable throughout the life of the loan. This allows you to plan and build your finances in several ways where you would not have had this level of certainty before.

Freedom

And finally, tenants in a rental home are limited in what they can do with the building and surroundings. There may be pet restrictions, for instance, and there are almost certainly limitations on remodeling or otherwise changing the home’s layout. When you buy, however, all these restrictions are gone – you can bring in whatever pets you like and make your own choices on home modeling, floor plans and any other related area.

For more on the numerous benefits of owning a home, or for information on any of our mortgage rates or services, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.

During the COVID-19 outbreak sweeping the globe, there’s been some debate regarding whether now is or isn’t the best time to begin a homebuying process. Certain market indicators have forecast negativity, but some within the mortgage and real estate world may view elements of this time period as opportunities for savvy buyers.

At Primary Residential Mortgage, we’re happy to offer a wide variety of mortgage rates and home loan options, from conventional loans to FHA, VA, jumbo and numerous other loan types. Whether or not you’re actively thinking about starting the homebuying process at this time, this period is one that’s ideal for many to begin or increase their financial savings efforts with an eventual goal of homeownership – let’s go over a few reasons why now is an ideal period for saving money and how you can accomplish this.

Limited Spending

First and foremost, this is a period in time where many of us are spending less than we normally would on standard expenses. Meals out at restaurants have been limited, for instance, as have certain normal pursuits like haircuts, nail appointments and others. While none of these are necessarily large expenses, they’re common enough that when added up, they can lead to significant savings.

Another major area here is gas savings. Data from around the country shows Americans are driving less, and even those who do need to drive often are seeing some of the lowest gas prices available in years. Add this to your general decreases in spending and you might be surprised just how many additional funds you have available.

Incentives Available

On top of areas where you may be saving, there are also financial incentives available to many Americans who could be struggling during this period. The first of these is a government stimulus check you either have already received or could be receiving soon – if you are lucky enough to still be employed and not in dire need of this money, you can put it toward long-term savings.

In addition, those who have lost jobs can apply for unemployment compensation. Certain areas of this program have been altered during this unique time to assist those in need.

Emergency Fund

One area we wanted to note specifically here in addition to saving up for a home purchase: Building an emergency fund. Both for current and prospective homeowners, and even for renters and others, having money set aside in case of any kind of emergency, from job loss to a medical situation, is vital. If your car breaks down suddenly, for instance, you don’t want to be pulling from rent or a mortgage payment just to fix it – if you have an emergency fund in place, this will not be needed.

For more on how to save in smart ways during this period in time, or to learn about any of our mortgage rates or home loan services, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.

In part one of this two-part blog series, we went over some of the basics involved with the cash-out refinance. This process, which involves you taking on a new mortgage loan and actually receiving a cash sum as part of the transaction, is utilized by many homeowners who have built up equity in their homes and want to put it to good use.

At Primary Residential Mortgage, our various mortgage services include a wide range of programs, including assistance with several different refinancing types as needed. In today’s part two of our series, we’ll go over a few additional details to be aware of on cash-out refinancing, including the kinds of buyers it’s often right for, when it might not be the best idea, and some alternatives that might be available to you.

Why Use Cash-Out Refinancing?

There are several reasons homeowners often choose to go with cash-out refinancing, including each of the following:

• Lower interest rate: The most common use of this refinancing method is to get a lower interest rate, allowing you to pay down the loan sooner.
• Debt consolidation: If you have credit card or other debts you’re struggling with, cash-out refinance can offer a lump sum that allows you to get ahead of these.
• Home improvements: Some homeowners also use their cash-out refinance for home improvements – in many cases, you will be eligible for tax deductions on such improvements.
• College tuition: In other situations, parents of a college-aged child will use a cash-out refinance to help with tuition payments.
• New vehicle: Others may put the lump sum toward a down payment on a new vehicle – there are actually situations where using a cash-out refinance loan to purchase a vehicle will get you a better deal than a dedicated car loan.

When Cash-Out Refinancing Isn’t a Great Choice

Now, despite all the potential benefits we’ve just listed, cash-out refinancing is not right for everyone. There may be cases where it will increase your interest rate or reestablish your private mortgage insurance payments, and it may also lengthen your repayment time period.

For this reason, you should not engage in a cash-out refinance just for the sake of doing it. If you’re looking to lower interest rates but such an option isn’t available on the current market, don’t force things. Additionally, if you’re only using a cash-out refinance to pay down debt, but you don’t plan to make major changes to your financial approach moving forward, all you’re doing is kicking this financial can down the road – we highly recommend debt repayment and mitigation strategies instead.

Cash-Out Refinancing Alternatives

If you need additional funds, there are also a few alternatives to cash-out refinances:

• Home equity line of credit: Allows for borrowing with a revolving line of credit
• Home equity loan: A second mortgage with a fixed interest rate and a lump sum paid to you
• Reverse mortgage: For older homeowners age 62 and above, this option allows cash withdrawals.

For more on the cash-out refinance and whether it’s a good choice for you, or to learn about any of our mortgage services, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.