10 Tips for First-Time Home Buyers

Buying a home is a big decision, and it can be even more daunting for first-time home buyers. But don't worry, we're here to help! Here are 10 tips to get you started:

  1. Start saving early. The sooner you start saving for a down payment, the better. A 20% down payment is ideal, but depending on the program, you can put as little as 3% down. 
  2. Get pre-approved for a mortgage. This is where we come in!:)  This will give you an idea of the max of your purchasing power.
  3. Find a real estate agent who can help you find the right home for your needs. A good real estate agent will know the market and can help you find a home that fits your budget and lifestyle.
  4. Do your research. Before you start looking at homes, it's important to do your research and learn as much as you can about the home-buying process. There are a lot of resources available online.
  5. Be prepared to compromise. It's unlikely that you'll find the perfect home on your first try. Be prepared to compromise on some things, such as location, size, or features.
  6. Don't get discouraged. The home-buying process can be long and frustrating, but don't give up! With patience and perseverance, you'll find the perfect home for you.
  7. Hire a home inspector. A home inspector can help you identify any potential problems with the home before you buy it.
  8. Get a home warranty. A home warranty can help you cover the cost of repairs to your home for a certain period of time. (The seller usually pays for this)
  9. Be prepared for closing costs. In addition to the down payment, you'll also need to pay closing costs when you buy a home. Closing costs can range from 2-4% of the purchase price, so be sure to factor them into your budget.
  10. Enjoy your new home! After all your hard work, you deserve to enjoy your new home. So relax, unpack, and make some memories!

How the Debt Ceiling Talks Are Affecting Interest Rates

The United States is currently facing a debt ceiling crisis. The debt ceiling is the maximum amount of money that the federal government is allowed to borrow. The current debt ceiling is $31.4 trillion, and the government is expected to reach that limit in June of 2023.

If the debt ceiling is not raised, the government will be unable to pay its bills. This would lead to a default on the national debt, which would have a devastating impact on the economy.

The debt ceiling talks are currently deadlocked. Republicans and Democrats are unable to agree on how to raise the debt ceiling. This has led to uncertainty in the markets, which has caused interest rates to rise.

Higher interest rates will make it more expensive for businesses to borrow money. This could lead to slower economic growth and job losses.

The debt ceiling talks are a serious threat to the economy. It is important for Congress to reach a deal to raise the debt ceiling as soon as possible.

Here are some of the potential impacts of a debt ceiling breach:

It is important to note that these are just potential impacts, and the actual effects of a debt ceiling breach would depend on a number of factors, including the length of the breach and the response of the Federal Reserve.

It is also important to note that the debt ceiling is a self-imposed limit. The U.S. government has never defaulted on its debt, and there is no reason to believe that it would do so now. However, the uncertainty surrounding the debt ceiling talks is having a negative impact on the economy, and it is important for Congress to reach a deal to raise the debt ceiling as soon as possible.

Adjustable-Rate Mortgages (ARMs) Explained

An adjustable-rate mortgage (ARM) is a type of home loan with an interest rate that can change over time. The interest rate on an ARM is usually fixed for a certain period of time, called the introductory period, and then it can adjust up or down periodically, based on an index rate.

ARMs typically have lower interest rates than fixed-rate mortgages during the introductory period, which can make them a more affordable option for homebuyers. However, it's important to remember that the interest rate on an ARM can go up after the introductory period, which could lead to higher monthly payments.

There are a few different types of ARMs, each with its own set of terms and conditions. Some of the most common types of ARMs include:

When choosing an ARM, it's important to compare different loan terms and interest rates to find the best option for your needs. You should also make sure that you can afford the monthly payments, even if the interest rate goes up after the introductory period.

Here are some of the pros and cons of adjustable-rate mortgages:



If you're considering an ARM, it's important to weigh the pros and cons carefully to decide if it's the right type of mortgage for you.

Here are some tips for choosing an ARM:

If you're not sure if an ARM is the right type of mortgage for you, give us a call and we'll weigh the pros and cons with you. We can help you understand the different options available and choose the best one for your needs.

Rate Buydown Programs... Are They a Good Idea?

A rate buydown is a mortgage financing technique that lowers the interest rate on a mortgage for a specified period of time. The buyer or seller of the home can pay for a rate buydown. The seller may offer a rate buydown as an incentive to attract buyers, while the buyer may pay for a rate buydown to make the monthly payments more affordable.

A 2-1 rate buydown lowers the interest rate by 2 percentage points for the first year and by 1 percentage point for the second year. A 1-0 rate buydown lowers the interest rate by 1 percentage point for the first year.

Rate buydowns can be a good option for buyers who would struggle to make their mortgage payments based on current interest rates and could help potential home buyers from having to live paycheck to paycheck.

However, it's important to note that rate buydowns can be expensive. The seller or buyer may have to pay a fee to the lender to cover the cost of the buydown. Additionally, the interest rate on the mortgage will increase after the buydown period ends.

If you're considering a rate buydown, it's important to weigh the pros and cons carefully to decide if it's the right option for you. Give us a call and we can go over this together and see if it's right for you.

What is my Purchasing Power? How to Calculate Debt-to-Income Ratio for a Mortgage

Your debt-to-income ratio (DTI) is one of the most important factors lenders consider when you apply for a mortgage. It is a measure of your ability to afford monthly debt payments, including your mortgage, as a percentage of your gross monthly income.

A lower DTI ratio generally means you are a more attractive borrower and it will result in higher purchasing power.

To calculate your DTI ratio, follow these steps:

  1. Add up all of your monthly debt payments, including your mortgage, car loans, student loans, credit card payments, and any other debts.
  2. Divide the total by your gross monthly income.
  3. Multiply by 100 to express your DTI ratio as a percentage.

For example, if your monthly debt payments total $2,000 and your gross monthly income is $5,000, your DTI ratio would be 40%.

Lenders typically have a maximum DTI ratio they will accept. This maximum DTI for Non-Jumbo loans is 50%. The maximum DTI for Jumbo loans is usually between 43-45% depending on the lender.

What are the Costs Involved with Buying a Home and What Will I Be Paying After the Purchase?

There are many different payments that you may be responsible for when buying a house. Some of the most common payments include:

In addition to these payments, you may also be responsible for other costs associated with homeownership, such as maintenance and repairs. It is important to factor in these costs when budgeting for your monthly expenses.