Lake Life

July 18, 2022/in Blog, Lifestyle /by Shauna Morris

Our last blog covered ways to Beat the Summer Heat in Reno-Sparks, and we promised Lake Tahoe locations next. Here are some of the best spots to explore and enjoy that Lake Life!

Beaches

Whether you’re looking to swim or relax in the Sierra Sun, North Lake Tahoe beaches have something for everyone!

Kings Beach is one of the best beaches on the North Shore. It offers pristine, smooth sand and a family-friendly recreational area. The water is shallow enough for kids to enjoy. This site is also great for kayak, paddleboard, or jet skiing. There are restaurants, shops, and places to rent gear surrounding the area. It’s a one-stop shop for all-day fun.

Sand Harbor State Park is a popular spot along the east shore. The shoreline is a bit rugged, but it’s still one of the best beaches in North Lake Tahoe. Sand Harbor has picnic tables and a boat launch. There are kayak and paddleboard rentals. You’ll want to get to this beach early…the parking lot fills up fast!

Hidden Beach is located just south of Incline Village near Tunnel Creek Road. This beach is an excellent spot for avoiding crowds. There is also limited parking here, but it’s a hidden gem for those who arrive early and make the trek in. All along the eastern shore, remote spots are lined with Tahoe’s iconic granite boulders and only accessible by way of a short hike.

Chimney Beach is located about a mile from Highway 28 and is extremely popular during summer. Chimney Beach is dog-friendly and lined with rocks and deep water.

Zephyr Cove is one of the larger beaches at Lake Tahoe. Because of its size, this beach is an excellent spot for families, there’s usually no problem finding a place on the beach, but parking can fill up early. Amenities at Zephyr Cove include a small bar and grill with restrooms and water equipment rentals.

Nevada Beach is further south and close to the Nevada/California border. Amenities include a day-use pavilion with a BBQ station, restrooms, kayak rentals, and food concession. This beach is one of the few beach campgrounds on the lake, and it allows pets on a leash in the campground.

Pope Beach is located on the South shore and is worth noting. It’s lined by pine trees and great for swimming.

Lester Beach is located on the western shores of Lake Tahoe, also known as “Bliss Beach.” This beautiful beach is situated in D. L. Bliss State Park and the northern portion of one of the deepest portions of Lake Tahoe, known as the Rubicon Wall. While there is no designated swim area for beachgoers, and boat traffic is typical, some shallow spots are gentle enough for kids to splash around. There is limited parking, so visitors are advised to arrive early.

Kayaking

There are twenty public launch sites along Lake Tahoe’s shoreline. Sand Harbor at Lake Tahoe Nevada State Park, Zephyr Cove, Kings Beach, and D.L Bliss State Park are the best places for launch. It is imperative to ensure that your kayak is free of Aquatic Invasive Species (AIS) before launching into the Lake. There are four Tahoe Boat Inspection Stations in Alpine Meadows, Meyers, Spooner Summit, and Truckee that will decontaminate your kayak for free. You can rent a kayak at Tahoe Paddle & Oar, Adrift Tahoe, Tahoe Paddle Sports, or Wild Society to ensure you use a contaminant-free kayak.

The North Shore offers various launch areas. Kings Beach and Incline Village are more leisurely trips for beginners. And Sand Harbor and Zephyr Cove provide a nice route with plenty of locations to stop and rest.

Intermediate paddlers can enjoy launching around D.L. Bliss State Park and Rubicon Point. These inlets provide gorgeous beaches and calm water. The southern route towards Emerald Bay is for more experienced kayakers; this route has an undeveloped shoreline, and the water may get choppy.

More advanced kayakers can experience the Lake Tahoe Water Trail. This trail goes around the entire 72-mile-plus expanse of Lake Tahoe and is broken down into seven segments.

SUP Spots

North Lake Tahoe has some of the best paddle boarding spots that offer stretches of shoreline only accessible from the water. Kings Beach and Sand Harbor are ideal spots. These areas provide coves cradled by rock formations, and the water is typically glassy and calm. Other places to paddle on the Lake include Fannette Island off Emerald Bay, D.L. Bliss State Park, Kiva Beach, Lester Beach, and Zephyr Cove. Adventure seekers can rent paddle boards at the same shops that offer kayak rentals.

Lake Tahoe offers miles of pristine coastline with many activities to enjoy. Check the Lake Tahoe marine forecast before heading out for a fun day on the water, as conditions can change in the blink of an eye.

To stay up to date on what’s happening in and around Reno, follow our blog, and if you have questions about the Reno-Sparks real estate market, contact the David Morris Group. We’re always happy to be your helpful guide. Give us a call at (775) 828-3292.

Beat the Summer Heat in Reno-Sparks

July 7, 2022/in Blog /by Shauna Morris

Reno packs some serious summer heat but also provides some of the best and most beautiful places to cool off! From Kayaking to water parks, we have plenty of cool activities to explore. Here are a few ways to beat the summer heat in Reno-Sparks:

KAYAKING

The Truckee River Whitewater Park is in the heart of downtown Reno. This 2,600-foot-long park has class 2 and 3 rapids for kayakers, canoes, and boats. Whether you’re a novice or new to the sport, kayak lessons and clinics are offered by Sierra Adventures.

PADDLEBOARDING

Stand-up paddle boarding (SUP) is one of the fastest-growing watersports. The Sparks Marina is an excellent location in Reno, and if you’re looking for more action, the Truckee River is a must! Lakeshore is based in Reno and has turned into a premier paddleboard spot. You can rent a paddleboard at Marina PaddleFit, and they offer clinics to learn new SUP skills.

TRUCKEE RIVER RAFTING

Reno is a perfect place for whitewater enthusiasts. It’s close to the Truckee and the Carson River, both of which have fantastic whitewater options. The Truckee River delivers some wilder rapids with classes 3 & 4 if you’re down for a hair-raising adventure, while the Carson River is known for its milder rapids. The most popular route down the Carson River is a 21-mile stretch called “Hangman’s Run.” Tahoe Whitewater Tours and Sierra Adventures offer excellent guided tours down the rivers.

FLOAT ABOUT

Truckee River rafting is right in the heart of the city, with easy access through Wingfield Park. The park is the endpoint for most float trips, and you can find plenty of places to launch your raft. Popular launching points include Crissie Caughlin Park, Dorostkar Park, and Mayberry Park. If you’re looking for something less extreme, floating the day away is a great way to enjoy the river without rapids.

RENO-SPARKS’ WATER PARK

Wild Island Family Adventure Park offers summer fun for everyone! With water slides, a wave pool, go-karts, mini-golf, and bowling, it’s a great way to wear out the kiddos and have a little fun yourself.

We haven’t forgotten about fun in the sun at Lake Tahoe ~ Keep an eye out for our next blog to get the latest on the lake’s summer options!

To stay up to date on what’s happening around Reno, follow our blog, and if you have questions about the Reno-Sparks real estate market, contact the David Morris Group. We’re always happy to be your helpful guide. Give us a call at (775) 828-3292.

Market Update

July 5, 2022/in Blog, Reality of Real Estate /by Shauna Morris

America’s housing market has undergone some wild swings over the last two years, but it appears to be settling down a bit. According to Realtor.com®, the number of real estate listings rose by 18.7% this June compared with a year earlier. That marks the second consecutive month of growth and the fastest rise in inventory since July 2017. Of course, this new record growth has a long way to go before the nation’s housing inventory is back to its level before COVID, but it’s still a good sign.

The recent numbers correlate with the recent hikes in mortgage rates. Homes are beginning to remain on the market longer as buyers are being pushed out because they can no longer afford to buy. However, new data released by Freddie Mac on June 30th shows a pause in the mortgage rate increase. As a matter of fact, 30-year fixed rate mortgage rates have already begun dropping slightly. “The rapid rise in mortgage rates has finally paused,” Sam Khater, chief economist at Freddie Mac, said in a press release, “largely due to the countervailing forces of high inflation and the increasing possibility of an economic recession.” This pause will help the market rebalance itself and bring homes back to a more “normal” pace of appreciation.

What does that mean for sellers? List now or forever hold your peace! If you’re on the fence about getting your home on the market, now is a great time to get it sold. If you wait, you may have to settle for price reductions and more days on the market.

What does this mean for buyers? Negotiations are back! Sellers no longer have forty showings in one weekend, and concessions are back in play. Buyers have more time to make the right decisions and more options from which to choose.

The market is excellent for buyers AND sellers right now, and we are here to help! Contact the David Morris Group if you have questions about the Reno real estate market and surrounding areas. We’re happy to guide you through the listing or buying process as the market shifts! Give us a call at (775) 828-3292.

Common Homebuyer Regrets

July 1, 2022/in Blog, Reality of Real Estate /by Shauna Morris

A home-buying experience can feel rushed and frantic. Add in rising mortgage rates, low inventory, and bidding wars, and the home-buying process is downright chaotic! For some, buyer’s remorse can creep in once they rush to buy and then begin to notice little things about their new home that they didn’t see before. According to a Zillow survey, 75% of recent homebuyers have at least one regret about their new home. Here are the most common home-buying regrets.

Missing the Bigger Picture

We are still in a seller’s market, meaning there are still more buyers than inventory. This shortage has caused buyers to feel pressured to grab the first home they can find rather than weighing their options more carefully. Fewer homes to choose from, coupled with competition from other hungry buyers, causes pressure. That pressure can cause buyers to miss the big picture. Not fully understanding a new home’s impact on daily life is the most common regret new homebuyers report. Buyers need to anticipate what life will be like in their new home one to five years down the road rather than what their lives are like at the time of purchase. Make sure the home fits the lifestyle you foresee, not the one you’re currently living.

The Importance of Location

Location is one of the most important factors when purchasing a new home. Buyers need to weigh the pros and cons of the neighborhood and community. The area needs to complement how you live, work, and play. Spending twenty minutes inside a property in the middle of the afternoon is only a fraction of the picture. Is there a time of high traffic that contradicts your work schedule? Are you near a school that will have speed limit restrictions and bumper-to-bumper car-line each day? The function and flow of the area are things to consider before signing on the dotted line.

Waiving a Home Inspection

A home inspection is an integral part of the home buying process. It lets you know what’s behind the freshly painted walls. In this competitive housing market, buyers look for ways to make their offers the most attractive, and several have waived the home inspection contingency. DO NOT do this! There could be hidden problems that lead to hidden expenses, and the only way to know that is with an inspection!

Aesthetics over Functionality

Aesthetics can sometimes distract buyers. The interior of a home on the market is cleaner than usual if not staged to look better. Buyers need to focus on the whole house and think about whether it will suit their lifestyle for years to come, not just today. If a newly renovated kitchen is still too small to meet your needs, you will regret it down the line, regardless of the new backsplash. Focus on things you cannot change, like size, location, views, and the actual bones of the home rather than a new farmhouse sink.

Maintenance Costs

Many buyers regret that they didn’t consider annual costs such as HOA fees, property taxes, and insurance fees before purchasing their home. These fees typically increase yearly, and if you’re barely scraping by in the first year, imagine five years down the line. Unexpected maintenance expenses such as plumbing, HVAC, a leaky roof, etc., are all things the home inspection report should outline, and they should be factored in as maintenance costs for the future if they don’t need to be repaired right away.

Buyers who know about these often overlooked factors understand what to look for and feel more secure about their purchase. Setting your priorities before buying will help you feel more confident about your home purchase down the line.

History of Father’s Day

June 17, 2022/in Blog /by Shauna Morris

Father’s Day is this weekend. It’s the official day to honor wonderful dads and father figures and celebrate the men who put in the work to make us feel protected and safe. Have you ever been curious about the origins of this holiday? Or do you need some new trivia to ‘wow’ your dad when you see him? Here are a few fun facts about the history of Father’s Day.

First Recognition

The first event to celebrate fathers was on July 5, 1908, in Fairmont, West Virginia. A year before this celebration, a horrifying mining explosion occurred in a nearby town, known as the Monongah Mining Disaster. It killed 362 miners, 250 of which were fathers. A woman by the name of Grace Clayton encouraged her pastor to hold a service to honor the children who lost their fathers. She chose that specific date because her father had passed away years prior, and July 5th was close to his birthday.

While this was technically the first recognition of the paternal bond of fatherhood, it didn’t directly encourage the creation of Father’s Day. The town only promoted the memorial service in Fairmont, WV, which was overshadowed by July 4th celebrations.

Official Celebration

The idea of having a day to celebrate fathers was picked up again two years later by a woman from Spokane, Washington named Sonora Dodd. Sonora and her five brothers and sisters were raised by their father after their mother passed away, and she felt that fathers deserved equal recognition as mothers. She worked with her local church and YMCA to plan a day specifically to celebrate the men of the house. As a result, an official “Father’s Day” was held at the Spokane YMCA on June 19, 1910. Soon after, several cities and towns across the country followed suit.

Presidential Recognition

In 1966 President Lyndon Johnson issued a presidential proclamation that fathers would be honored each year on the third Sunday in June. President Richard Nixon signed the proclamation into law six years later and Father’s Day became recognized as a national holiday.

Commercialization

Today, as with Mother’s Day, Valentine’s Day, Siblings Day, Yoga Day, and any other celebratory reason you can think of, retailers begin their promotions for profit months in advance. The greeting card companies are pretty fond of the holiday as well.

Global Celebrations

Great Britain was the first area abroad to begin the annual celebration of Dad. It’s thought that they adopted the tradition right after WWII in 1945.

France was next to join in the celebration of le pére in 1949. However, the idea of profit from the holiday spurred Father’s Day more so than the idea of celebrating dear old Dad. As a matter of fact, a lighter manufacturer called Flaminaire brought the tradition to France with the slogan: “Nos papas nous l’ont dit, pour la fête des pères, ils désirent tous un Flaminaire” translated to say “Our fathers told us, for father’s day, they all want a Flaminaire.” It wasn’t adopted as an official decree across the country until three years after the Flaminaire promotion.

Other countries recognizing Father’s Day on the third Sunday in June include Mexico, Ireland, France, Greece, China, and Japan.

Father’s Day is called Vatertag in Germany, or Männertag, which means “men’s day.” The German celebration of der Vater falls on the Thursday 40 days after Easter. It is traditional for groups of men to go into the woods with a wagon of booze and meats in certain regions. Which is quite a bit different than spending the day being gifted with silly ties and handmade crafts, but to each his own!

No matter when it’s celebrated, what the traditions are, or what it’s called, the father figures in our lives deserve recognition for the role they embrace. We wish all of the Pops out there a very Happy Father’s Day, and we hope you are appreciated for all that you do!

If you have questions about the Reno real estate market, we are happy to help! Contact the David Morris Group, or call us at (775) 828-3292.

Old Glory

June 10, 2022/in Blog /by Shauna Morris

At the start of the American Revolution in 1775, there was no single united flag to fly. Colonists were fighting in separate regiments under their own flags. In June of that year, the Second Continental Congress met in Philadelphia in the hopes of creating a more organized and unified colonial fighting force. As a result, the Continental Army was created, with George Washington as their Commander in Chief, as was the first “American” flag. The new unified flag had 13 alternating red and white stripes and a Union Jack in the corner, which looked very similar to the British flag. Washington was against flying a flag that was even remotely close to the British flag. Not only was it not the best confidence-builder for his soldiers, but it was also confusing amidst the chaos of battle. As a result, Washington turned his efforts toward creating a new flag as the symbol of freedom for the new nation.

The Second Continental Congress paused from writing the Articles of Confederation on June 17th, 1777, to pass a motion stating that “the flag of the United States be 13 stripes, alternate red and white,” and that “the union be 13 stars, white in a blue field, representing a new constellation.” Thus creating a National Flag for the United States.

In 1916 President Woodrow Wilson issued a presidential proclamation establishing a national Flag Day to be observed on June 14th, commemorating the date the United States approved the design for its first flag. Since then, Americans have honored the adoption of the Stars and Stripes by displaying the flag in front of their homes. However, Flag Day wasn’t officially signed into law until 1949, when U.S. Congress permanently established the date, and President Harry Truman signed it. The legislation also called upon the president to issue a yearly flag day proclamation. Each year since the U.S. president delivers an address that proclaims the week of June 14th as National Flag Week, and all Americans are encouraged to fly U.S. flags during that time.

As we come upon the annual celebration of our Stars and Stripes, here are a few fun facts about “Old Glory”:

Not Betsy Ross

While it’s widely believed that Betsy Ross sewed the first flag in 1776, she was never credited with the work during her lifetime. In 1870, Ross’s grandson relayed stories that she told him as a child about sewing the flag to the Historical Society of Pennsylvania. Still, there isn’t any historical evidence to back it up. It has since been confirmed that a delegate from New Jersey by the name of Francis Hopkinson is the actual designer of the American flag.

First Flag Flyer

In 1885 a small-town Wisconsin teacher named Bernard Cigrand had the original idea to celebrate the American flag across the country every June 14th. He led his school that year in the first formal observance of Flag Day.

A++

When it seemed inevitable that Alaska would be admitted to the Union in the 1950s, the American flag began being retooled to add a 49th star. Meanwhile, a 17-year-old student from Ohio named Bob Heft disassembled his family’s 48-star flag on his mother’s sewing machine and stitched 50 stars in a symmetrical pattern. He submitted his creation for a class project and explained that he used 50 stars because he also expected Hawaii to join the Union. To his dismay, he only received a B-. Heft decided to send the flag to his congressman anyway. After both new states joined the Union, the congressman presented the flag to President Eisenhower, who selected Heft’s design. On July 4th, 1960, the president and the high school student from Ohio stood together and hoisted the 50-star spangled banner for the first time! (Heft’s teacher subsequently changed his grade from a B- to an A+ when Hawaii did, in fact, become the 50th state.)

It’s almost time to raise Old Glory once again in honor and celebration of our great nation!

If you have questions about the Reno real estate market, we are happy to help! Contact the David Morris Group, or call us at (775) 828-3292.

Industry Partner Spotlight

May 27, 2022/in Reality of Real Estate /by Shauna Morris

Several players are involved in buying or selling a home. As your REALTOR®, we will guide you through every step of the process, but we rely on our industry partners to help us get the job done. We’d like to recognize Mortgage Lenders in our Industry Partner Spotlight.

What Does a Mortgage Lender Do?

Lenders assist buyers with the application procedures to qualify for a home loan. The lender will pre-qualify the buyer for the money they are financially qualified to borrow. In today’s market, buyers need to be prepared to show their pre-qualification letter when they make an offer to purchase.

How Do I Find a Mortgage Lender?

There are several ways to find a mortgage lender, but finding the right one matters most. Buyers can go online, go through a mortgage broker, or ask their local bank or credit union for a home loan. Most REALTORS® work with preferred lenders and can provide a list for you.

Is a Mortgage Lender a Bank?

It can be a bank, but it doesn’t have to be. Credit unions, non-bank lenders, and online companies have the ability to offer mortgage loans. There are many options to compare and consider. Finding the best option that fits your financial needs is the goal.

How Many Lenders Should I Contact?

A good rule of thumb is to apply with at least three. The rule of three allows you to get a solid idea of the bigger picture and find the best option for your financial situation.

What Questions Should I Ask?

What type of loan do you qualify for? There are several types of loans. The loan you are eligible for will determine your down payment, the loan terms, financial qualifications, and more.
What is the APR?
Will rate locks be available? If so, what are the fees?
Ask about mortgage insurance.
Ask for a detailed estimate of your total expenses and additional fees over the life of the loan.

Is it Better to Go Through a Broker?

A Broker is not a lender. They collect your financial information, then shop and compare lenders on your behalf. Brokers make the selection process easier and smoother for homebuyers. They typically have a higher chance of finding the best options since they are familiar with the industry.

We’d like to recognize and thank the professionals that we work with:

Chris Finley | Bay Equity
C: 775-846-3663 | E: [email protected]
Julie Millare | Summit Funding
C: (775) 815-8480 | E: [email protected]
Brian Urbani | Movement Mortgage
C: 775-813-2136 | E: [email protected]
Patrick Winchell | New American Funding
C: 775-230-5023 | E: [email protected]

If you have questions about the Reno-Sparks real estate market, financing, buying, or listing a home, contact the David Morris Group. We’re happy to be your guide. Give us a call at (775) 828-3292.

The Murals of Reno

May 14, 2022/in Lifestyle /by Shauna Morris

Reno’s Downtown and Midtown Districts are home to more than 100 larger-than-life murals painted by local, national, and international artists. These murals add color and vibrance to Reno’s urban landscapes as they tell their stories. The art ranges from topics as serious as racism or as whimsical as flowers, either commissioned by a local business or simply the product of an artist’s inspiration. Some portray historical figures, old friends, departed companions, legends, or lost loves. New designs appear on brick, plaster, wood, and concrete surfaces, and sometimes murals that once were visible get surrounded by new buildings or become hidden. The transient nature of these murals matches that of Midtown, as it is always fluid and changing.

Just south of downtown Reno, the Midtown District is a less than five square-mile section of town that has undergone a remarkable transformation over the past decade. Rather than demolishing the old brick buildings and forgetting about this unused section in the city, an ambitious collection of artists and small business owners took over and created a neighborhood with an artisan approach. They turned the district into a unique cultural experience with top-tier shopping, dining, and a vibrant array of spectacular murals that other metro areas simply don’t have.

It wasn’t until Geralda Miller and Eric Brooks that the Midtown murals became so well known. According to Eric, the murals of Midtown are considered to be the most extensive collection of public art per capita in the entire country. As Miller explains it, “Murals are a way for every man to see art. It’s that grassroots arts movement for those who may not want to go to a museum or an art gallery.”

Geralda and Eric founded Art Spot Reno to develop a way to showcase the city’s murals, and Eric began giving mural tours to friends for fun. Soon, folks started coming in from all directions to catch a glimpse of the art, so Geralda and Eric created the Midtown Mural Tour. The tour is now offered twice a month, and Eric continues to proudly guide visits through Midtown with his encyclopedic knowledge of the works and the artists. The mural tours have been organized into two distinct paths – the Midtown Mural Tour and the Downtown Reno Mural and Public Art Tour.

Midtown Murals

While many of Midtown’s murals are visible from main streets, several are tucked in alleyways and hidden in unlikely spots. Tours are taken at a leisurely pace over roughly two hours, and knowledgeable guides provide stories and insight that make the art even more enjoyable. Every month, the Midtown Mural Tour alternates between a north route and a south route, as there are too many pieces in just this neighborhood to be seen in a single afternoon.

Downtown Reno Mural and Public Art Tour

Like Midtown, the city center contains many murals from highly respected local, national and international artists. The murals are also done in various styles, including graffiti lettering, illustration, landscapes, and realism portraits. During Artown, an annual arts-themed festival, Circus Circus Reno holds a Mural Marathon Competition where qualifying artists paint an original 14-foot-high by 20-foot-wide mural on the side of the Hotel & Casino in just 24 hours.

The murals throughout Reno truly celebrate creativity, and they evoke emotions within every person who views them. This open-air art is a visual language of the city, and to catch a glimpse of it – all you have to do is take a walk!

To stay up to date on what’s happening around Reno, follow our blog, and if you have questions about the Reno real estate market, contact the David Morris Group or give us a call at (775) 828-3292.

We’re happy to be your guide to The Biggest Little City in the World!

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Fixed-Rate or Adjustable-Rate Mortgage

April 26, 2022/in Reality of Real Estate /by Shauna Morris

When shopping for a home loan, the first step is determining which loan type best suits your needs: a fixed-rate or adjustable-rate mortgage.

Fixed-Rate Mortgage

A fixed-rate mortgage remains unchanged throughout the life of the loan by charging a set interest rate. The payments will be the same each month which makes budgeting easier. A buyer can choose either a 15-year term or a 30-year term. The term is the time it will take to pay off the loan. A shorter-term mortgage will have a lower interest rate at a higher monthly payment. The payment is higher because the borrower must repay the principal amount of the loan in less time. The main advantage of a fixed-rate loan is that the borrower is protected if interest rates rise over the life of the loan. The downside is that when interest rates are high, the payments are less affordable, making it more challenging to qualify for a loan. Another downside is that borrowers are locked into their interest rate if interest rates drop. The homeowner will have to refinance their existing loan to take advantage of lower interest rates, which can be a cumbersome process.

Adjustable-Rate Mortgage (ARM)

An adjustable-rate mortgage will change over the life of the loan based on market interest rates. Initial interest on an adjustable-rate mortgage (ARM) is set below the market rate for a fixed time. The fixed period could be anywhere from one month to seven years. Once the fixed period ends, the loan will reset to a new interest rate based on current market rates. When the loan resets, the homeowner’s monthly payments could increase or decrease, and they will be locked in until the next reset.

Low initial payments could enable the borrower to qualify for a larger loan. If market rates drop, the borrower will have lower monthly payments due to lower interest. However, if market rates go up, so does the monthly payment. An adjustable-rate mortgage may be a good choice if you know you’re going to move within a short period and won’t live in the home long enough for the term to change.

Adjustable-rate mortgages are not as straightforward as fixed-rate mortgages. Before jumping in, ask the following questions:

How soon will the payment change?
How frequently will the interest rate adjust?
Is there a cap on how high the interest rate could go?
Is there a limit on how low the interest rate could go?
What direction are interest rates heading today, and will that trend continue?

When choosing a mortgage, you need to consider the economic realities of an ever-changing market. If interest rates are high and expected to fall, an adjustable mortgage will take advantage of the drop. However, if interest rates are low, run the numbers to determine the worst-case scenario. If a predictable monthly payment is important to you, a fixed-rate mortgage may be the way to go. If you are not sure which mortgage is right for you, your mortgage broker will be able to help.

If you would like some more information about buying a home, or if you’re looking for a great REALTOR® to show you around the Reno-Sparks area, contact the David Morris Group. We’re happy to be your helpful guide. Give us a call at (775) 828-3292.

Questions to Ask Your Mortgage Broker

April 21, 2022/in Reality of Real Estate /by Shauna Morris

Mortgage brokers and mortgage lenders often get confused as the same entity; they are not. The mortgage lender is the financial institution that approves the amount of financing and lends funds with the expectation of repayment. It is wise to shop around before committing to a lender, which is where the mortgage broker comes in.

The mortgage broker is an advocate who acts as an intermediary between the borrower and various lenders. They shop around on the borrower’s behalf to minimize the hassle of going back and forth from one lender to another. The mortgage broker’s function is to educate you, advocate for you, and find the best loan option.

There are four questions your mortgage broker should answer explicitly:

Who pays the broker fee?
What is the best interest rate?
What are the down payment options?
What are the closing costs?

Who pays the broker fee?

It’s important to ask upfront who pays your mortgage broker’s fees. Many mortgage lenders will pay the broker fees, but that can create a conflict of interest. The broker might charge you directly for their fee. Ask exactly how much the broker’s commission is and who is responsible for payment.

What is the best interest rate?

Ask your broker about the best interest rate for your situation. Your rate will depend on your debt-to-income ratio, loan repayment history, factors surrounding the property you’re seeking, and credit factors. The mortgage balance, loan term, and interest rates for which you qualify will determine your monthly payment. Ask questions until you are absolutely positive you understand your exact APR, do not accept a guesstimate.

What are the down payment options?

The down payment is the cash you will need to pay upfront to purchase a property. While lenders prefer a 20 percent down payment, different loan types and programs are available to help lower the cost. Your broker should be willing and able to explain every option and scenario.

What are the closing costs?

There are multiple fees involved in the home-buying process. Each lender may charge different amounts, which will affect how much money you need to bring to closing. Ask your mortgage broker about fees for things like inspection reports, credit reports, origination fees, the appraisal, home inspection, and titling. The broker should compare fee structures between lenders to help you find the one that best meets your needs.

A mortgage loan is usually the most significant purchase in one’s life, and it’s essential to have an advocate that you can trust. The mortgage broker you choose should be your guide to navigate through the various lending scenarios and find you the best possible option. They should be knowledgeable, patient, and willing to work diligently on your behalf.

If you would like more information about buying a home, or if you’re looking for a great REALTOR® to show you around the Reno-Sparks area, contact the David Morris Group. We’re happy to be your helpful guide. Give us a call at (775) 828-3292.

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