The Spring Mortgage Team Podcast with Rob Spring

What Income Is Considered When Qualifying for a Mortgage?

When it comes to what income is considered when qualifying for a mortgage, certain types of income are verified in different ways. What income is considered when qualifying for a mortgage? These days, everything has to be verified through W2s, paystubs, or tax returns. Certain types of income are verified in different ways. For example, a self-employed person would need tax returns to verify their income. A self-employed person is someone who owns 25% or more of a company or is a contract employee whose employer doesn’t take out taxes so they have to file their own. For a W2 employee who has a commission or a bonus, if that bonus or commission is greater than 25% of their annual income, they also need tax returns. "Understanding how incomes are verified for mortgages isn’t as difficult as you might think." Understanding how incomes are verified for mortgages isn’t as difficult as you might think. If you have any questions, just give us a call or shoot us an email and we’d be more than happy to walk you through the process and explain exactly what the underwriter will be looking for. We look forward to hearing from you.

Need a Mortgage? Here's What You Need to Get Started

What’s required to get started on the mortgage approval process? Today, I’d like to give you some insight on that. Today I want to give you a quick look at the mortgage approval process. So, how do we get started? First of all, you’ll need to provide my team and I with your name, social security number, address, residence history, employment history, and other information to complete the base of the application. We can do this over the phone or in person. It all comes down to what you prefer. "We want to take care of you as smoothly and quickly as possible." From there, we can move on to discussing more relevant information, so that we can get you moving along with the process. We want to take care of you as smoothly and quickly as possible. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

How Much Do You Really Need for a Down Payment?

A lot of people have questions about down payments. Today, I’m bringing you some answers. Today, we’re going to be talking about down payments. This is a topic that raises a lot of confusion, which is why I’m here to clear up the subject.  One of the main things people ask is, “How much do I need to put down?” The truth is that it all depends. We need to ask ourselves if we can meet your financial budget, if we can meet your monthly payment requirements, and if we can buy the house you have in mind with the funds you have on hand. "The amount people put down varies a lot more than some might tend to believe." Most of our clients put down between 3% and 10%, but some put down more and others put down less. The amount people put down varies a lot more than some might tend to believe.  We even have programs available that allow you to buy a home for nothing down at all. Ultimately, we’d love to walk you through the process and determine what route is best for you. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

5 Remodeling Projects With the Best Return

Home remodeling is as hot as it's ever been. Here are five projects that bring the best return on investment. Home remodeling is hotter than ever. According to researchers at Harvard University, remodeling investment is up 6% over last year and now makes up a $324 billion market. According to a survey of remodelers and real estate professionals, there are five remodeling projects that offer the best returns: 1. Your kitchen. Kitchen remodeling can be as simple or as elaborate as you like. However, to maximize your return, keep your investment to under 20% of the value of your home—as is recommended by surveyed real estate professionals. The outcome? A whopping 85% return on your investment. 2. Your bathroom. A thorough bath remodeling project can cost up to $20,000. However, not only will it pay for itself, it should give you an added 80% return. 3. Your deck. Replacing your deck can cost you anywhere from a few thousand dollars to tens of thousands of dollars, depending on the size. The expected benefit will be similar to a bathroom remodeling project—around an 80% return for a fresh, new deck. 4. Your siding. Fading or worn-out siding can turn off potential buyers before they even step foot in your home. Replacing old siding will make it much easier to sell your home, and in addition, it should give you an 80% return on an investment of around $10,000. 5. Your windows. New windows can mean greater energy efficiency, increased thermal and acoustic comfort, and a more modern look. Homebuyers are well aware of this, and they are willing to pay accordingly. That's why a typical window replacement should yield at least a 70% return on your investment. "Some will make more sense for your home than others." Clearly, some of them will make more sense for your home than others. If you're considering selling your home, then just one of these projects could add tens of thousands of dollars to the price you'll be able to get. If you have any questions or want additional advice about which remodeling projects make sense for you, give me a call or send me an email. We can discuss all the details and I can give you an accurate estimate of what these projects could cost, and how to go about financing them. I look forward to hearing from you!

How the Fed’s Recent Rate Hike Impacts Our Market

The Fed’s recent rate hike shouldn’t have any significant impact on our market. In fact, it might actually stimulate it. On June 14th, the Federal Reserve increased its federal funds interest rate by 0.25%. They’re also widely expected to raise rates once or twice more over the course of 2017. What does this mean for the real estate market? While any action by the Fed always garners a lot of attention, I believe these increases will not have any significant impact on our market. First of all, mortgage rates have actually trended lower in the wake of the Fed’s recent announcement. The 30-year mortgage rate recently hit 3.9%, the lowest level in 2017. In fact, it’s a common pattern for the mortgage rate and the Fed rate to move in opposite directions, and the same thing has happened the last two times the Fed raised rates.  Second, the economy continues to do well. The Fed decided to increase its rate because unemployment and inflation are low, household spending is picking up, and we’ve seen steady growth for the past nine years. This is good news for the real estate market. As expected, we continue to see strong demand and a corresponding increase in home prices. "These increases will not have any significant impact on our market." Third, while the Fed’s rate increase is normally meant to cool off the economy, it might actually stimulate it in this case. Because interest rates were so low for such a long period of time, experts believe the recent increases might ease pressure on the financial system and encourage lending.  Case in point: since the Fed started raising its rate in December 2016, total mortgages are up 2.5% year over year.  In conclusion, while any move by the Fed is likely to lead to a lot of hand-wringing, I believe the real estate market will not be affected and will continue on its own healthy course. Nonetheless, it’s clear that right now is a uniquely good moment for everyone in the real estate market. Today’s low mortgage rates are good for homebuyers because they make homes more affordable. If you have any questions about our market or you’re thinking of buying or selling a home, give me a call or send me an email. I’d love to help.