Home Buyers Big Hurdle: the Down Payment

Many prospective Millennial Home Buyers face a big hurdle: the Down Payment.down payment 2 Coming up with that initial investment doesn’t have to be a roadblock even if saving is difficult. These four options could make home ownership a reality sooner rather than later:

  1. Pulling from an IRA: You, your spouse, parents or grandparents could withdraw up to $10,000 from a traditional IRA to put toward a home. Although it’s categorized as a first-time home buyer exemption, anyone who hasn’t owned a principal residence in the past two years may qualify. Note: Some differences exist when withdrawing from a Roth IRA.
  2. Receiving a gift: If you have family members willing to help you out, you can get what’s called “gift money” for your down payment. The amount of gift money you can use depends on the loan type. And you’ll likely need signed documents stating that the money is indeed a gift, not a loan or anything earning interest.
  3. Co-buying: Another option is to buy a home with a family member or friend. It’ll allow you to split the down payment and the mortgage payment. But co-buying does come with an important decision: how the title will be held.
  4. Renting to own: Leasing-to-own is another possible route to home ownership, one that typically requires a smaller down payment called option money. Additionally, a portion of your monthly rent payment can go toward your purchase of the property. Pay special attention to the written agreement. Reach out if you want to make sure your lease-to-own agreement is mortgage-ready.

There are also low down payment options like HomeReady, HomeOne, Home Possible and FHA loans, as well as USDA and VA programs

pre-approval-2Want to learn more, or know someone who’s looking to buy a home? Reach out to Rick Cignoli to discuss your mortgage options and to take advantage of my FREE JumpStart Mortgage Pre-Approval with Rate Assurance service. I’m here to help put the pieces of your puzzle together.

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Buying Versus Building A New Home: Which is more cost effective?

buy vs buildMany homebuyers, both first-timers and experienced movers, have wondered whether buying an existing home or building one to their specifications is a better fit for their needs. Here’s what you need to know:

THE UPFRONT COSTS
Existing Home: The price of a home varies widely depending on location, square footage, condition, amenities, and other factors.
Building a New Home: All things being equal, generally speaking, building a new home costs about $60-$70k more than buying an existing home with similar attributes. But that is not always the case. There are some instances where the cost per square foot comes out significantly less in a custom-built home than in an existing home.
How is this possible, you ask? Consider when you build, you also have the advantage of paying for only what you want to put into the house. While an existing home may have additional perks, like hardwood floors, it may not be something that you want or are willing to pay for in a custom-build.

HOME MAINTENANCE
Existing Home: Older homes require more maintenance because they have more wear and tear. Some homes may even need a big-time overhaul! As with any home purchase, never skip the home inspection and understand that even with well-maintained homes, repairs are inevitable.
Building a New Home: Maintenance on a new home is very little, and it’s one of the central benefits of building a new home. Since everything from appliances to the HVAC system is new and under warranty, you’ll enjoy several years of worry-free living.

OUTDOORS
Existing Home: A mature garden with large trees and well-established landscaping is a big plus of buying an existing home. Mature trees and landscaping not only add value to the property but can even help to reduce energy costs by providing shade and efficient drainage.
Building a New Home: Professional landscaping can cost thousands plus many years to come to fruition. The benefit, however, is that you’ll be able to design your outdoor space precisely to your liking. Depending on the project, you can have a custom-designed yard in two weeks or less.

ENERGY EFFICIENCY
Existing Home: Older homes that have had little-to-no updating use more energy. Appliances that are older than ten years, single-pane windows, and poor insulation are some updates you’ll want to consider if you buy an existing home.
Building a New Home: When it comes to energy efficiency, new construction can’t be beat. On average, new homes use about 21% less energy than older homes. However, this savings comes mostly from high-efficiency appliances. Meaning that if you purchase new, HE appliances for an existing home, you can save just as much money on energy with an existing home as you would with new construction.

APPRECIATION
Existing Home: With an existing home, you make your purchase with some context. You can see the home’s previous sale prices, the cost of similar homes in the area, and have a good idea of what the market value of your home will be in the future.
Building a New Home: New homes, especially those in up-and-coming neighborhoods, can be more of a gamble. Without any sale history or comparables to reference, you have very little to go on when thinking about the future value of your home. Of course, if this is your forever home, which is often the case with custom-built homes, then not having a history to predict the future may not matter.

pre-approval-2Whether you’re buying an existing home or building a new one, they both begin the same way –getting Pre-Approved.
Reach out to  Rick Cignoli today see which option is best-suited for you and your financial situation and to take advantage of my FREE Jump Start Mortgage Pre-Approval with Rate Assurance service

Refinance Your Home In 2019

Hello All … As the holidays approach, we also begin to plan our 2019 New Years’s Resolutions.

As a CT licensed Mortgage Loan Originator, I like to use this time of year to query my clients and Peeps on two important life issues:
1. Do you have any home renovations that you need or wish to do next year?
2. Do you have any consumer, credit card, student loan  or other debt that you would want to  consolidate and live more comfortably in 2019?

refiReach out to Me at rick.cignoli@norcom-usa.com or try my cell 203.525.0259 for a stress free, no cost, no obligation consultation on what options may be available to you to meet these two important goals! I’m here to help!

Know Your Lender – Mortgage Fraud is Out There

sharkWatch out for mortgage fraudsters that are lurking and ready to take advantage of unsuspecting borrowers.
The Good News:  You can beat them by knowing the red flags of mortgage–related fraud.

Rest assured that most mortgage lenders are legitimate. However, there are some fraudsters who pose as mortgage lenders with the intent of scamming borrowers out of their hard–earned money — especially in climates like today with upward pressure on mortgage rates and home prices in certain areas.  These fraudsters prey on unsuspecting or inattentive borrowers as they seek to close more transactions and pocket more money. Unfortunately, involvement with an illegitimate mortgage company can cost you thousands of dollars, negatively affect your credit, and cause emotional distress.

Fortunately, many types of mortgage fraud can be spotted by watching out for these red flags:

  • Demands from “specialists” for advanced fees to replace your current credit history and make you a stronger candidate for a new mortgage, purportedly through a higher credit score or a new credit reputation.

  • Pressure to “act fast” or sign any paperwork that you haven’t had a chance to read or don’t fully understand.

  • A company/person you don’t know asks you to release personal financial information online or over the phone.

  • Advertisements by phone, letter or door–to–door with phrases such as “guaranteed mortgage” and “no credit check.”

  • Loan officer changes at the last minute, replacing your existing relationship and contact with one you don’t know.

  • Changes in your personal information that appears in final documents, including income, employment and savings — as well as any changes to the type or term of the loan you applied for.

Identifying a legitimate mortgage lender is essential to your success as a borrower and a homeowner.  As with all companies requesting personal information — especially regarding your finances — you need to be cautious and do your homework. If something sounds too good to be true, it most likely is.

If you’re looking to get a new mortgage or refinance your existing loan, be sure to beware and stay aware. Visit My Home by Freddie Mac® for more information about renting, buying or owning a home.

Call Rick Cignoli @ 860.945.9284 to discuss the right mortgage option for your family and to take advantage of my FREE Mortgage “Jump Start” Pre-Approval with Rate Assurance service. And be ready to make an offer

Source:  http://www.freddiemac.com/blog/notable/20181115_know_your_lender.page?fbclid=IwAR2fW7G-M1lsiYhMKdxCUgDH0H50R8g_8MTVA2bjjisS3FgW30WzFJYggUw

 

 

 

 

10 Signs That You Are Ready To Buy A Home

You’ve probably heard it time and time again, why you should consider buying a home instead of renting. Perhaps you’ve hit an age or professional milestone, or maybe you are tired of dealing with your landlord. Whatever the reason may be, here are 10 Signs That You Are Ready To Stop Renting, and Buy A Home:

1. You want to have the freedom to do what you want with your home, whether that is changing the paint color, installing solar panels, or getting a chicken coop!

2. You are tired of sporadic rent increases, and you want the peace of mind that your monthly payment will stay the same (with a fixed-rate mortgage).

3. You want to continue to build up your credit score, and paying for your mortgage on-time each month can help you accomplish this.

4. You want to save money, and you know that as a homeowner you can deduct the interest paid on your mortgage from your taxable income.

5. You are ready to be your own handyman or hire a contractor of your choosing for repairs, instead of waiting for your landlord to ‘stop by in a week’.

6. You want to adopt a rescue dog, and your new home can have a big yard for her to run and chase squirrels.

7. You are starting a polka band with your best friends, and you want your own living room to practice in – any time, day or night.

8. You are ready to have your own washer and dryer, and leave behind the surprise of finding someone else’s sock in your laundry!

9. You’ve taken up meal planning, and want all the space in your fridge to store your chicken, brocolli, and kale.

10. You are ready to build equity and invest in your own future!

If you or anyone you know think you are ready to become a homeowner,  reach out to Rick Cignoli to discuss your mortgage options and to take advantage of my FREE JumpStart Mortgage Pre-Approval with Rate Assurance service

4 Creative Ways to Come Up With a Down Payment

down paymentMany prospective Home Buyers face a big hurdle: the Down Payment. But coming up with that initial investment doesn’t have to be a roadblock even if saving is difficult. These four options could make home ownership a reality sooner rather than later:

  1. Pulling from an IRA: You, your spouse, parents or grandparents could withdraw up to $10,000 from a traditional IRA to put toward a home. Although it’s categorized as a first-time homebuyer exemption, anyone who hasn’t owned a principal residence in the past two years may qualify. Note: Some differences exist when withdrawing from a Roth IRA.
  2. Receiving a gift: If you have family members willing to help you out, you can get what’s called “gift money” for your down payment. The amount of gift money you can use depends on the loan type. And you’ll likely need signed documents stating that the money is indeed a gift, not a loan or anything earning interest.
  3. Co-Buying: Another option is to buy a home with a family member or friend. It’ll allow you to split the down payment and the mortgage payment. But co-buying does come with an important decision: how will the title to the property be held? Who owes the debt and who owns the property.
    Anyone on signing the mortgage obligation must have ownership interest in the home. However, any one ow thens property does not necessarily be obligated on the debt
  4. Renting to own: Leasing-to-own is another possible route to home ownership, one that typically requires a smaller down payment called option money. Additionally, a portion of your monthly rent payment can go toward your purchase of the property. Pay special attention to the written agreement. Reach out if you want to make sure your lease-to-own agreement is mortgage-ready.

There are also low down payment options like HomeReady, HomeOne, Home Possible and FHA loans. For those buying in certain select areas, the USDA Guaranteed Rural Housing Development loan is an excellent option.as well as down payment assistance programs and grants.

Want to learn more, or know someone who’s looking to buy a home? Reach out to Me to discuss your mortgage options and to take advantage of my FREE JumpStart Mortgage Pre-Approval service

Get in touch today.

Norcom Mortgage’s 203k Dream Home Loan™

Norcom Mortgage walks you through the steps of a 203K home renovation in this Dream Home Loan infomercial. Sometimes, you need money to both purchase and improve a property. Norcom’s Dream Home Loan™ provides you with cash to pay for upgrades, home improvements

Call Rick Cignoli @ 860.945.9284 for all your home purchase needs.  Let’s talk about the right mortgage option for your family and take advantage of my FREE Mortgage “Jump Start” Pre-Approval with Rate Assurance service