Blog — James Whitener - Whitener Team

Financial Preparation: Millennials Are Getting Ready To Buy Homes

Financial Preparation: Millennials Are Getting Ready To Buy Homes In the current economy, there are a lot of millennials who are thinking about buying a home; however, the price of homes is rising quickly. It can be challenging for millennials to save the money they need to buy a home. When this is combined with other monthly expenses they have, millennials might be financially unprepared to buy a home.

Finding the right house takes patience and discipline, so millennials need to avoid jumping in unprepared. What do millennials need to do to make sure they are ready for the expenses that come with owning a home?

Be Aware Of How Much Money Is Required

The first thing that millennials need to do is make sure they have enough money saved up. If prospective homeowners do not have enough money saved up, they could be denied financing by a lender. Conventional mortgage lenders will ask for 20 percent down to avoid PMI, but it might be possible for homebuyers to get a home for as little as 3.5 percent down from some lenders. If the home costs $250,000, then 3.5 percent down is going to be $8,750. If prospective homebuyers have less than this saved up, they could be denied a loan.

After saving up enough money for the down payment, homebuyers also need to cover closing costs. This could include the inspection, the appraisal, and any fees that come from the closing attorney. Even if millennials have parents and grandparents to help them, they still need to save up an emergency fund to cover any possible repairs that are needed. It is a solid rule of thumb to save up and move at least three to six months of emergency money in a liquidity fund. If this money is not there, it might be better to wait.

Millennials Should Wait For The Right Time Instead Of Jumping In Unprepared

Even though it is a great investment to own a home, it is better to wait for the right time instead of jumping in unprepared. Millennials need to make sure they have enough money saved up for a down payment. Then, they should have an additional two to five percent of the loan’s value saved up to cover closing costs. Finally, homeowners should also have a liquidity fund with three to six months of living expenses set aside.

August 20, 2021/0 Comments/by whitenerteam_admin

An Overview Of Umbrella Insurance: How It Works

Mortgage

An Overview Of Umbrella Insurance: How It Works Accidents can happen from time to time, which is why it is important for people to have insurance. While you might be able to fix some accidents on your own, others can lead to a significant amount of financial stress. This is why people must have insurance. Insurance is supposed to help individuals and families pay for catastrophic expenses; however, what happens if the insurance policy is not big enough to cover the expenses? That is where umbrella insurance can be helpful. What is umbrella insurance, and how does it work? Learn more about how umbrella insurance might be able to help you.

Umbrella Insurance: A Definition

Umbrella insurance provides extra liability that goes above and beyond the limits of other existing policies. If the policyholder is at-fault for damages and the existing insurance policies are not enough to cover the damages, the umbrella insurance kicks in. In addition, umbrella insurance provides coverage for other items, such as legal fees, that other policies might not cover. Umbrella insurance can cover a wide range of issues that could provide important financial protection.

What Does Umbrella Insurance Cover?

Umbrella insurance acts as a fail-safe to protect you and your family against lawsuits that are directly related to accidents that could result in a personal injury lawsuit. Furthermore, umbrella insurance can cover landlord liability, defamation, and a number of other tricky financial situations, depending on how your policy is structured. Your umbrella policy will have a liability limit; however, your policy might continue to cover associated legal costs above that specific limit, depending on the wording of your policy. Because details and exclusions can vary between policies, you should ask a professional for help if you have questions.

What Umbrella Insurance Does Not Cover

Unlike some insurance policies, umbrella insurance will not cover the damages and injuries of the policyholder. This means that if you sustain property damage, your umbrella insurance policy might not cover this. In addition, there are limits to umbrella insurance with respect to breach of contract cases. Finally, umbrella insurance also does not cover intentional acts or criminal issues. It is critical to read the policy carefully to understand what is covered and what is not.

August 19, 2021/0 Comments/by whitenerteam_admin

Is It Time To Create A Home Office: What To Know

Mortgage Tips

Is It Time To Create A Home Office: What To Know Office work has changed significantly during the past few years. With many people working well from home, numerous employers are becoming open to the possibility of allowing their employees to work from home permanently. With many people looking for ways to be productive from home, it is critical to create an environment that is conducive to being productive. How can homeowners make this happen?

Make Small Changes First

It is difficult to make major changes in a small home or condo; however, there are still small changes that can be made. For example, many people use a drop-down shelf or a narrow table as a work from home desk. Then, with a task light and a monitor, it is easy to create a functional home office. It is even possible to repurpose a formal dining room table, by turning it into a home office.

Repurpose An Entire Room

Those who own larger single-family homes might be able to make bigger changes to their homes, repurposing an entire room and turning it into a home office. For example, it might be possible to turn the guest room into a home office, making it a guest room during the evening and a home office during the day. Then, homeowners might want to install a Murphy bed that can fold out and create a guest room during the evening.

Use The Attic Or Basement

It might be time to finish the attic or basement, turning that into a home office. These are usually large spaces that can be used for more than one purpose. For example, it might be possible to use this space as a home office for two people. Consider investing in great lighting to avoid creating a cave-like work environment. It is possible to turn these locations into fantastic home offices with the right tools.

Consider Building An Addition

Finally, some homeowners are also thinking about building a home office instead. It might be time to add an addition to a single-family home, particularly for those who are going to be working from home for the foreseeable future. There are plenty of remodeling projects that could create a functional, comfortable home office.

August 18, 2021/0 Comments/by whitenerteam_admin

Understanding the Jumbo Mortgage and Why Refinancing These Mortgages is Different

Home Mortgage Tips

Understanding the Jumbo Mortgage and Why Refinancing These Mortgages is Different It seems like everything is getting jumbo sized these days. Jumbo sized soft drinks. Jumbo sized fast food meals. Jumbo sized smartphones. But one thing that nobody thought would get jumbo sized? Is mortgages.

So what exactly is a jumbo mortgage? How is it different from a standard mortgage, and what does that mean for your refinancing options? Here’s what you need to know.

Jumbo Mortgages: Larger Sums For Enterprises And Wealthy Buyers

As the name implies, the main factor that sets jumbo mortgages apart from standard mortgages is the loan limit. Fannie Mae and Freddie Mac impose mortgage limits all around the country, limits that vary depending on the cost of living in each individual state. But in situations involving highly valuable real estate – like luxury properties and commercial real estate – standard mortgages simply don’t give buyers the freedom they need.

Jumbo mortgages are also common in areas with high costs of living, where real estate frequently surpasses the standard loan limit in high-cost areas.

How Do You Qualify For A Jumbo Mortgage?

As would be expected when higher sums of money are involved, the eligibility requirements for a jumbo mortgage are much stricter than for a traditional mortgage. Jumbo mortgages aren’t subject to private insurance, which typically means a down payment on a jumbo mortgage will be significantly larger compared to a standard mortgage. That also means people applying for jumbo mortgages must demonstrate to lenders that they have the income and wealth to pay the debt.

Jumbo mortgages also require a higher credit score. While most buyers can get a mortgage with a decent interest rate if their credit score is 660 or higher, buyers applying for a jumbo mortgage need a credit score of at least 700 to even be considered by most lenders.

Jumbo mortgage lenders can require borrowers to have at least 6 months worth of payments set aside in a bank account at the time of closing, while the requirement is typically two months for most mortgages. If you want to qualify for a jumbo mortgage, you’ll also need to prove to your lender that your debt-to-income ratio is below 45 percent.

Larger Sums Make Refinancing More Complicated

When trying to refinance a jumbo mortgage, you’ll face tighter restrictions compared to a standard mortgage. You’ll need to have a significant amount of equity in your home before you’ll be considered for refinancing. And if you’re planning to roll your HELOC debt into the refinancing plan, you’ll have to ensure that you haven’t made any deductions against your home equity for the past 12 months.

Some lenders may also have other special requirements when refinancing a jumbo mortgage. For instance, if you’ve owned your home for less than a year, you might have to opt for a Freddie Mac or Fannie Mae loan – and regardless of what fair market value is for your property at the time you file for the mortgage, it will usualy be assessed at its original purchase price if you’ve owned it for less than a year.

Jumbo mortgages can be a great way to buy a luxury home or commercial investment property. But in order to be issued a jumbo mortgage, you’ll need to meet a strict set of requirements.

If you’re considering a jumbo mortgage, a professional advisor can help you understand your options. Contact your trusted mortgage professional to learn more about refinancing options and how you can qualify for a jumbo mortgage.

August 17, 2021/0 Comments/by whitenerteam_admin

What’s Ahead For Mortgage Rates This Week – August 16, 2021

Financial Reports

What's Ahead For Mortgage Rates This Week - August 16, 2021 Last week’s economic reporting included readings on job openings, inflation, and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also released.

Job Openings Rise as Inflation Rate Falls

The Labor Department reported a record number of job openings for the fourth consecutive month in June. Job openings rose to 10.1 million available jobs from May’s reading of 9.5 million job openings. Analysts expected job openings to decrease to 9.1 million jobs in June.

Analysts said that previous headwinds to hiring including generous unemployment benefits and childcare issues may be easing. Workers took advantage of the rising demand for employees to negotiate higher wages and switch jobs for better offers.

The Consumer Price Index fell by 0.40 percent in July to 0.50 percent as compared to June’s reading of 0.90 percent. The pace of year-over-year inflation remained at 5.40 percent Core inflation, which excludes volatile food and fuel sectors, fell to 0.30 percent from 0.90 percent. July’s reading showed the impact of food and gas prices on inflation in recent months.

Mortgage Rates Rise, Jobless Claims and Consumer Sentiment Index Fall

Average mortgage rates rose last week as the rate for 30-year fixed-rate mortgages rose by 10 basis points to 2.87 percent. Rates for 15-year fixed-rate mortgages averaged 2.15 percent and were five basis points higher; rates for 5/1 adjustable rate mortgages averaged four basis points higher at 2.44 percent. Discount points averaged 0.70 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

Initial jobless claims fell to 375,000 new claims filed as compared to the prior week’s reading of 387,000 first-time claims filed. Continuing jobless claims also fell; 2.87 million ongoing claims were filed last week as compared to the prior week’s reading of 2.98 million continuing jobless claims filed.

The University of Michigan reported its lowest reading for consumer sentiment since 2011. The preliminary reading for August fell to an index reading of 70.2 in August as compared to July’s reading of 81.2. Analysts expected an index reading of 81.3 for August, but rising covid 19 cases attributed to the highly contagious Delta form of the virus tanked consumer sentiment as mask requirements and social distancing guidelines re-emerged in some areas.

What’s Ahead

This week’s scheduled economic releases include readings from the National Association of Home Builders on housing markets, government readings on housing starts, and building permits issued. Retail sales will also be reported.

August 16, 2021/0 Comments/by whitenerteam_admin

A Home Inspection: What To Expect

Mortgage Tips

A Home Inspection: What To Expect The process of buying a home can be exciting and stressful, with one important task being the home inspection. All real estate professionals will likely recommend a home inspection. This is usually a condition of making an offer on a home. While not all prospective buyers will ask the seller to make repairs based on the inspection report, it is important for buyers to know what they might have to do to repair the home.

When an offer is made with a contingency, this allows the buyer to renegotiate the price of the home based on the inspection report. Some prospective buyers might elect to walk away entirely. What should buyers inspect?

Choosing An Inspector

A trained real estate professional will probably have a list of inspectors who might produce the report. All inspectors are trained and qualified. Real estate agents will probably look at sample reports and professional licensing before choosing an inspector to look at a home. Most inspectors also have insurance in case they miss something that shows up later. Home inspectors will need to crawl into the crawl space, inspect the roof, and take a look at storage spaces.

What Do Inspectors Look For?

A home inspector is going to look at every aspect of the home to make sure it is up to code. An inspector will look at the roof for signs of leaks or damage. The inspector will also inspect the plumbing system to make sure no pipes are rusted, corroded, or damaged. He or she will also look at the windows to make sure the seals are not busted. A home inspector is also going to take a look at the HVAC system to see how old it is and how well it is working. The fireplace and chimney will also be an important part of the inspection as he or she looks for signs of damage. The inspector will also look at the foundation for any issues.

A Comprehensive Report

Once all of this is done, the inspector will provide a comprehensive report that contains a list of everything that might be wrong with the house. Then, based on this report, the buyer can decide what he or she would like to do next.

August 13, 2021/0 Comments/by whitenerteam_admin

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