Blog | Rob Yo The Mortgage Pro

Benefits and Risks of An ARM

An adjustable-rate mortgage (ARM) typically allows for lower rates, resulting in lower monthly payments, at the start of your mortgage. But that only lasts for the initial period set when you took the loan. After that, the interest – and monthly payments – will adjust to the current market rate, which could be higher or lower. There are definitely scenarios where this might be the best option, but always consider if you’re comfortable with the risk before taking an ARM.

We are based in Clayton, NC, and frequently help clients in Raleigh, Charlotte, Wilmington, Greensboro, and throughout the beautiful state of North Carolina. We are committed to helping North Carolina residents buy their dream home. For more information on conventional loans, or to apply for a loan, contact Rob Yo The Mortgage Pro at (919) 322-8201 or fill out the form on this page.

4 Tips for Buying New Construction

A new construction home can be a dream come true. Here’s a few tips to help ensure the process goes as smoothly as possible: 1. Be aware of your timing. 2. Research the neighborhood. 3. Understand your warranty. 4. Confirm what comes with the model vs. the base home.

Preapprovals

The first step in buying a new home is getting pre-approved.

2023 Loan Limits

The FHFA has raised their conforming loan limits for 2023.

Lock & Shop Program

If you’re house hunting and haven’t yet found your dream home, but you feel rushed, worried that rates might change (and not in your favor) in this unpredictable market, we have a solution for you! With a Lock and Shop program, you can lock in a rate that works for you for up to 90 days, before you even find the home you want to buy. There’s no need for a contract, no need for a property address, and there is no upfront cost to you.

Future Employment Income

If you have a job lined up but want to get a head start on buying your new home before your start date, you have options! Under certain guidelines, Freddie Mac and Fannie Mae allow us to use income from a future employer to get you approved. There are restrictions, but if you meet all the requirements and can produce a fully executed offer letter, you can close on your home up to 90s days before starting your new job.

USDA Loan

A USDA loan is one that’s backed by the U.S. Department of Agriculture, which means they guarantee it against default. There’s also a ton of home improvement loans and grants available, and there’s no downpayment requirement! If you’re interested in buying in a more rural area and you qualify, this loan might be a great option for you.

Delayed Financing

If you want the immediate benefits of paying cash for a new home, but you’re concerned about spending all your savings, delayed financing might be right for you. Essentially, if you’re eligible, delayed financing allows you to buy your home with cash and then do a quick cash-out refinance to get a lot of that money back and begin paying back your loan like a standard mortgage.

More FHA Changes!!!

Big changes could be on the horizon for FHA loans. The House of Representatives just passed HR Twenty One Sixty Two also known as the Housing Financial Literacy Act of Twenty Nineteen. This would allow First Time Home buyers who complete a housing counseling program to reduce the Upfront Mortgage Insurance. Why would they do this? Well they have a Congressional Mandated Mutual Mortgage Insurance Fund which has quite the surplus, like in the BILLIONS. Now this would not be the first time FHA has done something like this, and should pass the Senate with ease.

iBuyer Platforms

For those that may not know, the term “ibuyer” is used to describe companies such as OpenDoor, Knock, and Offerpad to name a few. In certain scenarios, these can be great resources for a buyer who has an absolute deadline to get out of the home whether it be job relocation, bankruptcy, or whatever the case may be. However, in a more traditional scenario….THOUSANDS of dollars are being left on the table. The different companies will pitch you on not paying commissions, but instead they call their fee a “convenience fee” or “experience fee”. Let’s just think about it for a second…if a platform is going to buy your home and then sell it, there in it to make a profit…right? So how could they buy it from you at fair market price and then sell it and be profitable. They can’t…that’s why they offer much less than fair market value. Again, every scenario is different but this is just another reason why it’s important to work with local professionals.

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