3 Common Misconceptions People Have about Buying a House

April 22, 2021 by Cindy Steelman

Buying a house is one of the biggest financial decisions that you’ll ever make in your life. Now, we understand that this can all be quite daunting and overwhelming, especially if you’re looking to buy your first home. While the entire ordeal can be quite stressful at times, it’s an ultimately rewarding experience in the end.

Considering that Sacramento has been forecasted to be no.1 when it comes to housing market growth in 2021, now is a better time than ever to plan to buy a house. This should be good news for first-time homebuyers in Roseville, Sacramento. We understand that many of you might be a little hesitant to do this, but we believe that a lot of your hesitations stem from misconceptions that you have over the home buying process.

To help you out, we’ve prepared a list of three common misconceptions that people have about buying houses. Hopefully, this list will help clear things up so that you can make a more informed decision when it comes to buying a home:

Common Misconceptions About Buying a House

Only People with Great Credit Scores Can Get a Home Loan. While your credit score is one aspect that lenders look at when evaluating your eligibility for a loan, there are other factors that play into this as well. Both your income and work history are taken into consideration when you apply for a loan. This means you still have a shot at getting approved for a home loan as long as you have a stable and reliable source of income. Lastly, lenders will also take a look at your debt-to-asset ratio, so be sure to settle any outstanding debts you may have before applying for a home loan. If you’re looking for a loan, we here at Steelman Mortgages can help you choose the right type of loan. This is especially true if you’re a first-time homebuyer in the Sacramento, Roseville area. We can help you determine the best deals depending on your income, ability to make a down payment and the type of home that you’re looking for!
You Need to Pay a 20% Down Payment. Most people think that you will always need to pay a 20% down payment to purchase a home. While this used to be the case, this just isn’t applicable in a modern setting. There are now quite a few options when it comes to paying down payments for a house. This is especially true for first-time homebuyers, as they are afforded a little more flexibility when it comes to making down payments.
You Shouldn’t Buy a House in a Seller’s Market. A seller’s market is when the demand for a good or service exceeds the supply. What this means is that buyers have to keep up with the high prices since the supply is low. Now, you may think that you shouldn’t be buying a house in a seller’s market, but this just isn’t the case. While the prices may be higher, this shouldn’t be the only factor that you consider when buying a home. You also have to look at the entire picture. If the prices for homes are higher, but the mortgage rates are lower, it would make sense to take advantage of this situation. The last thing you want is to miss out on an opportunity just because the price seems initially unfavorable!

Homebuying With Steelman Mortgages

While the entire process can be quite serious and daunting, we hope that we’ve shed some light on the subject so that you can make the best possible when it comes to purchasing a house. Remember, the last thing you want is to miss out on what could potentially be a great opportunity just because you were misinformed!

If you’re looking for home loans in Roseville, Steelman Mortgages is your best choice. We can provide you with the best mortgage solutions that can accommodate your needs and financial situation. For more information on our services, check out our website or contact us at (916) 847-7263 today!

Understanding the Homebuying Process: What to Prepare for

April 21, 2021 by Cindy Steelman

First-time homebuyers tend to view the home buying process as an intimidating achievement. Since it covers a substantially large capital in negotiations, making mistakes can seem like the difference between living freely and living in constant fear of debt.

The trick to overcoming our fear of these long-term debts is to set preparations in advance. Remember that a knowledgeable consumer is a responsible one. Knowing what to expect with the home buying process will prevent you from making costly mistakes in your future financial responsibilities.

What To Expect As a First-Time Homebuyer

With any major purchase, it’s essential to understand what you’re working with. This includes assessing your cash flows, including monthly debts, income, and other assets. Knowing where you stand financially lets you look forward to planning your future.

Before you set out to look for a home to purchase, here are three tasks you should prepare for:

Get your credit in good shape. Unlike saving for an expensive computer setup or even the latest iPhone, it’s unlikely you’ll be able to save up for a home purchase and pay it in full. Since buying a home will be a large purchase that will span for years, it’s vital to have an excellent credit score to have a better rate with your mortgage lender. Positive practices like paying your debt on time and keeping your debt to a minimum can contribute to a high FICO score or credit score. Your FICO score or credit score will define how dependable you are as a borrower. This allows the underwriter to gauge the risk you pose and will be reflected in the interest rate you’ll receive. With a lower credit score, you’ll most likely have higher interest rates per month throughout the loan’s payment period. For most conventional mortgages, it’s best to have a benchmark of 640 FICO. If you’re stuck in a financially difficult situation, you can still secure other loans that have lower credit-score requirements.
Save for the initial down payment. Most home loans will demand an upfront 20% down payment to avoid paying for private mortgage insurance (PMI). If you can’t afford the 20% benchmark, there are lower down payment options and PMI will be an added charge to your home’s regular monthly mortgage dues. This will push you further to a more challenging financial situation if you already have poor credit scores to begin with. Thankfully, on a conventional loan, you won’t have to deal with the PMI for the entire duration of the mortgage term. Once you pay off 22% of the property’s equity, you can request to have your mortgage insurance removed and you’ll start having the standard mortgage payment per month. Conventional down payment options include as low as 3%. Additionally, some home buyers prefer to go the extra mile by going beyond the 20% down payment. This allows them to pay off their home faster and have more financial security in the future.
Shop for the best mortgage plan for you. Once you have a home in mind and a compelling credit score, it’s now time to identify which home loan will work best for you. Ideally, it’s best to get recommendations from friends and colleagues, but you can do your own legwork by hiring a loan officer and a real estate agent. If you have low FICO scores, you can still shop for FHA and USDA loans, as long as you fit their restrictions. Cindy Steelman of Steelman Mortgages quoted “Keep in mind that these special loans will have advantages and drawbacks, depending on what you’re compensating for. This is why it’s always better to start with a good credit score to have broader options to work with.”

First Time Home Buying with Steelman Mortgages

Buying your first home is a complex long-term investment, which is why it’s best to avoid making mistakes even on your first purchase. Before you lock into a specific mortgage type, it’s best to compare your options with local mortgage providers. Doing so lets you find mortgage plans that can best suit your financial needs and limitations.

If you’re having difficulties with the home buying process as a first-time home buyer in Roseville, CA, you can benefit from signing up with our services. At Steelman Mortgages, we can answer all your questions about the home buying process and provide the right solutions for your financial needs. Contact us today at (916) 847-7263 so our mortgage experts can assist your home buying needs.

How a Reverse Mortgage Can Be Beneficial to Seniors

April 15, 2021 by Cindy Steelman

Reverse Mortgages in Roseville California

Getting older does not always equate to fewer expenses. Long-term care insurance and home modification can be costly for people in their senior years. Most of the time, elders have no other income or means to acquire money for these needs. For cases like this, one of the recommended ways to secure much-needed cash is a reverse mortgage.

Suppose you are a senior looking to answer whether you should apply for a reverse mortgage; this article would tell you what you could get from using such a mortgage.

What Is a Reverse Mortgage?

A reverse mortgage is a type of cash loan that seniors can take advantage of. This loan is set up against their home’s equity, which means that they could borrow a percentage of their home’s current value. If their application gets approved, they could get the cash in a single lump sum, monthly installment, or as a line of credit.

The only condition seniors need to know about this loan setup is that they need to pay back the loan if they:

Decide to move out of the home for at least a full year
The last borrower passes away

Should you consider this option, you should know that:

You can never borrow money more than your current home value
This setup would not affect your Medicare or Social Security benefits
You can refinance your reverse mortgage

3 Advantages of Getting a Reverse Mortgage

If you are now considering getting this loan option, here are some of the benefits you might get:

Your lenders cannot force you out of your homes. With this loan option, you remain the owner of your home. Your lender would not have any ownership of your property. Simply put, as long as you live in the house, no one could take it away from you.
You do not have to pay the money you owe right away. Expect no monthly mortgage payment from this setup. The arrangement is pretty straightforward. You can spend the money however you want and would only need to pay it back if you moved out of your property for any reason.
It is a good source of money. A reverse mortgage is an excellent way to get guaranteed money that does not depend on external factors, like the economic situation or the labor market. Moreover, the homeowner would have the option to get the cash in disbursements if they prefer.

Reverse Mortgage Experts in Roseville: Steelman Mortgages

A reverse mortgage can be advantageous for most senior citizens. However, it would still depend on their unique situation. This loan can be a viable option if you are a senior in fair health or someone who can afford in-home care. It would also be a good idea for couples planning to stay in their house indefinitely or until they pass.

Otherwise, living away from home for more than a year would require you to pay back the reverse mortgage by using refinancing your property, using your saved cash or selling your property. Should you consider a reverse mortgage for your property in Roseville, we can help. Steelman Mortgages is on a mission to educate clients about their loan options. We help them make informed financial decisions. We specialize in reverse mortgages, home purchases, refinances, and more. Contact us at (916) 847-7263 to learn the specifics of our services.