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.

Tips for First-Time Home Buyers

According to the National Association of REALTORS®, first-time homebuyers made up 34% of all buyers in 2021, with an average age of 33 years old. This data shows that millennials are still the most prominent home buyer demographic, with 82% of younger millennials and 48% of older millennials being first-time buyers last year. If you’re a first-time homebuyer, here are some things you can do to make your dream of homeownership come true.

Pay Down Your Debt

Buying a house is the most expensive purchase you’ll make, so you need to be as debt-free as possible before considering a home loan. The three most significant types of debt most new home buyers have are student loans, car loans, and credit cards. Paying down debt can be done. A good rule of thumb is to start paying off the smallest debts first. Student loans can be daunting, so start with what you can do. Consolidate high-interest credit cards into one monthly payment with a lower interest rate – then cancel the cards! Sell the car with a high payment for something with a lesser monthly burden. Getting out of debt isn’t easy, but you can do it!. Just take one step at a time, and when one thing is paid, move on to the next. Most importantly, don’t incur any new debts while paying down the existing ones.

Check Your Credit

Credit scores play a huge role in your ability to secure a mortgage loan. The minimum credit score most lenders have for a conventional loan is 620. It is possible to get a loan with a lower score, but the higher your score, the less interest you will pay. You can check your credit with your credit card company, online, or with a major credit bureau such as Equifax or Experian.

Know What You Can Afford

You need to sit down and decide how much you can afford to spend on a down payment, monthly mortgage payments, and household expenses. Be careful not to spread yourself so thin that you are unable to put a little bit of money in savings each month.

Get Pre-Approved

There is nothing worse than falling in love with a home only to realize you can’t afford it. Unless you plan to pay in cash, you need to get pre-approved for a loan. An initial consultation with a lender will help you determine your price range.

Hire a REALTOR®

Having a local professional guide you through the home buying process is more important than ever in this market. If you are serious about buying, you need a professional to help you find the perfect home within your budget. A REALTOR® will walk you through the information, talk you through the details, and help you make the right decisions. REALTORS® have access to the Multiple Listing Service (MLS), the largest centralized database of residential real estate listings in your area. While the internet offers some options to search for a home, the MLS is the only instant exposure to the market and is only available to Realtors®.

Once you have completed all of the prep steps, your REALTOR® will guide you through the rest of the process until you get to the closing table.

If you would like some more information about buying your first 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.

It’s Not Easy Being Green

March 1, 2022/in Reno Events /by Shauna Morris

On March 17th – if it’s not green, it’s not happenin’! In the United States, the festivities surrounding St. Patrick’s Day include all things green – green clothes, green party décor, and, of course, green beer. Today all it takes to make an emerald ale is just a couple of drops of food coloring, but a century ago, when Americans first hailed the green brew, the ingredients were a wee bit toxic! The first introduction to green beer happened in New York City around 1914, and as the story goes, a club owner wanted to make his St. Patty’s party more festive by making everything he served the color of the lucky Irish – including his hops. However, the secret ingredient to his green concoction was just as shocking to his partygoers as the color of the drink itself. He used an iron-based laundry whitener called “Wash Blue” to turn the drinks green, and as he assured his patrons there wasn’t enough detergent to cause them harm, their concerns seemed to lessen with every emerald sip! Luckily he was right, and not only did his guests live to die another day, but the colorful tradition that this bar owner came up with was here to stay!

If you’re looking to go out and celebrate St. Patrick’s Day this year, Reno, Sparks, and the Lake Tahoe area all have Irish pubs where you can enjoy the day in style. You’ll find Irish food and drinks, live music, Irish dancers, and maybe even bagpipers, depending on where you go.

Irish Pubs and Bars in Reno	Irish Pubs and Bars in Sparks
Ryan’s Saloon and Broiler	O’Skis Pub & Grille
Lucke’s Saloon	Paddy and Irene’s Irish Pub
Shea’s Tavern
Shenanigan’s Olde English Pub	Irish Pubs and Bars at Lake Tahoe
Ole Bridge Pub	Auld Dubliner Irish Pub Palisades Tahoe
Filthy McNasty’s Irish Bar	McP’s Taphouse Grill

Be sure to contact the venue before March 17th to confirm their hours of operation and COVID considerations.

No matter the color of your beer this St. Patrick’s Day, remember to drink responsibly! The RTC is marking its 18th year of providing its FREE Safe RIDE Program to help people celebrate St. Patrick’s Day responsibly.

If you’d like more insight on what to do around Reno, or want to chat about the current fast-moving real estate market, contact the David Morris Group at (775) 828-3292.

The Reality of Real Estate: Predictions on Trends for Purchasing a Home in 2021

December 28, 2020/in Reality of Real Estate /by Shauna Morris

We can all admit that 2020 has been an unexpected year, and many are wondering what 2021 will hold. It’s been a question that many real estate professionals are fielding from their clients, and as your trusty real estate advisors, we’re here to offer some predictions on trends for purchasing a home in 2021.

Even Lower Mortgage Rates

2020 brought some of the lowest mortgage rates we’ve seen, but Fannie Mae, Freddie Mac, and the National Association of REALTORS® are all predicting that those rates will fall again or stay flat in 2021. If you thought you missed out on getting a great 30-year fixed mortgage rate, you may be wrong!

Prices of Homes Will Increase

This year has marked a remarkable increase in home prices, and we’re likely to see more of the same in 2021, but at a slightly lower rate than that of 2020. Freddie Mac and the National Association of REALTORS® showed that prices increased by 5.8% in 2020, and they are likely to rise by 2.7% in 2021.

Making Compromises Will Be Necessary

Because of the bidding wars that are happening, it’s likely that you will need to closely look at the loan you’re pre-approved for and look at homes below that budget to account for higher deposits, full-price offers, multiple offer situations, and those waiving appraisals and inspections altogether. Take a hard look at what you need and what you want, then crunch the numbers on the down payment, lender’s fees, and property taxes you will face for the homes that meet your budget and the items on your needs list.

Inventory Will Remain Low

Unless buyers leave the market or new construction home builds increase exponentially, we will continue to see low monthly inventory. This is what will contribute to the increase in home prices that we talked about earlier. Low mortgage rates are incentivizing many to purchase a home now, but there’s a supply shortage of homes for buyers entering the market.

If you’re interested in learning more about the predictions we have on trends for purchasing a home in 2021, contact the David Morris Group at 775-828-3292. Our years of experience have made us experts on the Reno-Sparks real estate market, and we’re always happy to share our insights with you.

The Reality of Real Estate: Resolutions That Will Help First-Time Homebuyers Purchase a Home in the New Year

December 11, 2020/in Reality of Real Estate, Reno-Sparks Real Estate /by Shauna Morris

With the new year almost here, now is the perfect time to start setting goals and creating plans for how to achieve those goals. 2021 could be your year to become a homeowner, and we have some resolutions that will help first-time homebuyers purchase a home in the new year.

Set a monthly savings goal and a down payment goal

Start off by looking at what you already have saved and how much money you would like to have that goes towards a down payment for your home. Then begin to look at your expenses each month, current wages, and calculate how much you can reasonably save each month to meet your goal. This can also help you see if you may need to find a side hustle or cut expenses to help you increase the savings you’re setting aside each month to meet your goal.

Avoid big purchases

Every penny you have should go towards paying for the things you need and saving for purchasing a home. Even if you’ve met your down payment goal, you’ll want to have money set aside to cover closing costs, home inspection fees, moving costs, home repair projects, HOA fees, home insurance costs, etc. The latest iPhone will still be there when you’re a homeowner. Sacrificing a big purchase now will pay off in the long run!

Begin reaching out and making connections with real estate professionals

You want to build relationships with people who can help you achieve your goal of purchasing a home. Create a list of potential real estate professionals you’d like to work with and interviewing them to see which one will be a good fit for you.

Begin meeting with lenders to talk about what kind of loan you qualify for

Meeting with lenders is a very important part of the homebuying process. You need to know how much house you can afford to buy as well as the interest rate to pay back the loan. If the interest rate is too high, it may have something to do with your debt-to-income ratio, and your lender may be able to give you advice on how to pay down your debt while saving for a home to score you a better deal on your mortgage!

Get your credit score checked and contest anything that’s wrong

Your credit score can also have an impact on the mortgage rates you’re offered, so be sure to get a detailed report and contest anything that is wrong or fraudulent to have it removed from your credit history.

2021 is your year to become a homeowner, but you’ll have to work hard to stick to your resolutions to make it happen. If you need more tips on how to become a homeowner in the new year, contact the David Morris Group at 775-828-3292!

The Reality of Real Estate: Question Everything – Important Questions to Ask Throughout the Homebuying Process

November 25, 2020/in Reality of Real Estate, Reno-Sparks Real Estate /by Shauna Morris

If there’s one piece of advice we could give everyone, it’s to be inquisitive and question everything. That advice is especially important in the real estate world. As a home buyer, you’re making one of the most important and biggest financial decisions of your life, and you don’t want to go through the process confused or unaware of what you’re getting yourself into. Below are some important questions to ask throughout the homebuying process.

Questions to Ask Your REALTOR® About the Community:

How good is the school district? How do the schools in this neighborhood stack up against other schools in the area?
How close are the nearest hospitals, grocery stores, businesses, etc.?
Is there anything that would be considered a nuisance going on regularly in the area — construction, trains, planes flying overhead, etc.?
Is there an HOA, and if so, what are there regulations, dues, etc.?
How does the resale value of homes in the area do year over year?

Questions to Ask the Home Inspector:

Is there insulation in the walls and ceiling, and is it sufficient for the home?
Are there any foundation or structural issues?
Is there anything in your report that you think I should have an expert inspect or repair?
Was everything you saw normal wear and tear, or are there problems with the home?
If you were in my shoes, would you feel like you were making a good investment in buying this home, or are there areas for concern?

Questions to Ask Your Lender:

Do you know of any mortgage programs that I qualify for and could lower my costs?
Will a higher down payment improve the interest rate you can offer?
What do my projected monthly mortgage, property taxes, and homeowners insurance costs look like?
How much should I expect closing costs to be?

There are no dumb questions, and it’s important to have everything laid out on the table when you’re buying a home. These are some important questions to ask throughout the homebuying process, but if you have more questions about buying or selling your home, contact the David Morris Group at 775-828-3292!

The Reality of Real Estate: Nevada First-Time Homebuyer Loan Programs – What Do They Offer and Can They Help Cover Upfront Costs?

November 13, 2020/in Reality of Real Estate, Reno-Sparks Real Estate /by Shauna Morris

As a leading real estate broker in Northern Nevada, we’ve worked with buyers and sellers with a variety of needs, wants, and tools at their disposal. While we are not mortgage brokers and can’t give you loan information that is specific to your circumstances, we have come to learn that there are some great first-time homebuyer programs available to help you cover the costs and secure financing for your dream home.

National Programs

FHA Loans – Popular amongst buyers with low credit scores and those that can only afford a small down payment. The Federal Housing Administration allows down payments of 3.5% for those with credit scores of 580 or higher. The FHA will insure loans for borrowers with scores as low as 500. Mortgage insurance is also required for an FHA loan.
VA Loans – Military members, veterans, and surviving spouses can qualify for loans with no minimum credit score and no down payment or mortgage insurance, but be prepared to pay a VA funding fee.
USDA Loans – Eligible rural and suburban homebuyers can receive a zero-down-payment mortgage through the USDA Rural Development Guaranteed Housing Loan Program. There are very specific limitations and guidelines you’ll have to meet to qualify.

Nevada Programs

Home Is Possible (HIP) – First-time and repeat homebuyers can receive up to 5% of the loan amount to pay the down payment, closing costs, or a combination of both. The money doesn’t have to be repaid if you keep the home as your primary residence. There are a variety of limitations that must be met, and you will need to complete a homebuyer education course.
Home Is Possible for First-Time Homebuyers – Down payment and closing cost assistance up to 4% of the loan amount that is strictly for first-time home buyers. There are limitations you will need to meet, but the money doesn’t have to be repaid if you stay in your home for 15 years.
Home Is Possible for Heroes – Active-duty military, honorably discharged veterans, members of the National Guard, and surviving spouses are eligible for below-market interest rates with a one-time fee of $755. Again, there are specific limitations you’ll need to meet, and an education course is required.

There are great programs at your fingertips to help you with the purchase of your first home. If you’re worried you can’t qualify for a great loan or won’t be able to secure financing, meet with an established mortgage lender to talk through your options. They have the tools and resources to find you the best program and can educate you on how to become a homeowner.

If you’d like some recommendations on great lenders in the area to contact for more information or you’re simply curious about the tools, resources, and knowledge we have for first-time homebuyers, contact the David Morris Group at 775-828-3292!

The Reality of Real Estate: Buying a Home Can Take Weeks or Months, So Be Prepared for a Lengthy Process

October 28, 2020/in Reality of Real Estate, Reno-Sparks Real Estate /by Shauna Morris

Many first time homebuyers fall for the illusion that buying a home will be as simple as picking out a dream home, signing on the dotted line, and then being handed the keys. Unfortunately, that’s not how it works. It can take anywhere from 30-60 days just to close on a home in a normal market, so let’s break down the home buying process with a realistic timeline of when you can expect to move into a new home.

Getting Pre-Approved for a Mortgage – 1-2 Weeks

After researching lenders and deciding on the best type of mortgage for you, it usually only takes about five business days to get mortgage pre-approval. Make sure to do your due diligence and shop around for the best deal and the best lender.

Creating a Wants and Needs List and Browse Listings – 5 Days

Your first list of things you need and want in a home may take you only an hour to create, but once you begin looking at the current listings, you may think of things you need, like specific neighborhoods to be in, school districts you like, and style of homes you’re drawn to.

View Houses – 1 Week-5 Months

Depending on the list of wants and needs you have for your home and the current market, you could find your perfect home quickly, or it could be a couple of months of searching. It’s not uncommon to spend 4-5 months searching before your offer is accepted on a home that meets your needs and some of your wants,

Make an Offer and Negotiate – 1-5 Days

Depending on the seller and how speedy they are to respond to your offer, this may be a quick period in the timeline or take a few days. If they reject your offer or make a counteroffer, this can also draw out the process.

Get Loan Approval – 1-2 Months

If you’ve been pre-approved for your mortgage, your real estate agent will gather the paperwork needed for your lender to approve your loan. On average, this takes about 45 days to come through, but it could be faster or slower, depending on the market.

Have Your Home Appraised – 1-2 Weeks

Your lender will hire an appraiser to evaluate the true value of your home. Once the appraiser comes out, it usually takes about three days to get the report back.

Get a Home Inspection – 1-3 Weeks

The home inspector will determine if there are any unexpected surprises and things of note that may need to be addressed before buying the home. You usually have about a 10-day period to conduct an inspection, and you’ll have the report back within 24 hours. It could take a few weeks to renegotiate the contract if any unexpected problems arise from the inspection report.

Closing – 1 Day

After all of those steps have been completed and you’re ready to close, you’ll have one long appointment to hand over your down payment and closing costs and sign a ton of paperwork. Seriously, you may leave with a hand cramp after all the signing, but you’ll officially be a homeowner!

Now, this is just a general timeline of how long it takes to buy a home, but it can certainly be sped up or more drawn out depending on what you’re looking for and what the current market has to offer. If you’re curious about what the Reno real estate market looks like currently and how we can help you buy your dream home, contact the David Morris Group at 775-828-3292!

The Reality of Real Estate: Winning Your Dream Home in a Multiple Offer Situation

October 9, 2020/in Reality of Real Estate, Reno-Sparks Real Estate /by Shauna Morris

In a real estate market with more buyers than sellers, buyers can often be more competitive and put sellers in a position to receive multiple offers. How can you make your offer stand out and help you win your dream home in a multiple offer situation? If you play your cards right, it may not come with a higher price tag either!

1. Appeal to the owner’s reasons for selling.

Something as simple as understanding why the seller has put the home on the market, can help you appeal to the problems they may be facing. Taking the initiative to understand the seller’s point of view and being empathetic to their situation will often win you points and gain you a good first impression from the seller.

2. When it comes to closing, don’t dilly dally.

A quick closing is appealing to many sellers. It’s why many will be enticed by a cash buyer or anyone that is working with a lender that can fast-track the financing. Offering little to no waiting period for closing can make any offer standout.

3. Personalize the offer.

Sellers can drown in a sea of paperwork, especially in a multiple offer situation. Add a personalized note to the seller that pulls at their heartstrings and highlights what you find so special about their home. Many homeowners are sentimental about their house and would like to sell to someone that sees its worth just as much as they do.

4. Be flexible and easy to work with.

In a high-stress situation, the seller is looking for someone that is a breath of fresh air. Be willing to work with the seller and make compromises and concessions. Don’t negotiate over superficial repairs and only sweat the big stuff.

5. More earnest money can sweeten your offer.

Showing serious interest and commitment to buying the home can come in the form of offering more earnest money. You will immediately differentiate yourself from other offers.

Think outside the box and having creative solutions at your fingertips can help you win in a multiple-offer environment. Have questions about how we can help you win your dream home in a multiple offer situation without paying the highest price? Contact the David Morris Group at 775-828-3292.

The Reality of Real Estate: What are Home Inspectors Looking for, and How Can it Save You From Making a Bad Investment?

September 24, 2020/in Reality of Real Estate /by Shauna Morris

Before closing, you’ll want to hire a professional home inspector to identify any underlying problems and the overall condition of the home. It saves you from making a bad investment, gives you an idea of the maintenance and repairs you may need to make the home, and may even give you some leverage to make negotiations on the asking price if there are things that will need to be fixed. Let’s take a look at what home inspectors are looking for.

1. Signs of mildew and mold

Inspectors will look closely at basements and crawlspaces for mildew odors. They may also use a meter to determine how much moisture is present, as moisture can deteriorate building materials and attract insects. They will also look closely at the walls and floors for patches of mildew and signs of dampness.

2. Problems with the roof and chimney

Any loose or deteriorated roof shingles will be notes in the inspector’s report, as well as if there are any moist or rotted elements beneath the shingles. They will also check that the chimney is watertight and that mortar and bricks are in good condition.

3. Plumbing functionality

Each toilet will be flushed, faucet turned on, and dishwasher ran in order to check the water pressure and see if there are any leaks. If there are any signs of water damage or concerns for the health of the septic system, it will be noted.

4. Problems with electrical systems

Inspectors will make sure that the home is up to code and that circuits are running properly. They will ensure that the electrical system isn’t being overloaded and is safe to live in.

5. Structural integrity

Over time water can cause the soil around the foundation walls to expand, and when the water goes away, the soil shrinks, and the foundation settles. This creates cracks and pathways for water to enter the structure. This is a big item that inspectors will be looking for. They want to make sure the home is structurally sound.

6. Pest infestations

Carpenter ants, beetles, termites, and rodents can be some of the most damaging pests to a home. Inspectors will look for signs that there is an infestation or if there have been previous problems with these pests.

7. Trouble with the HVAC system

As a homeowner, you’ll want to ensure that your home has proper heating, ventilation, and air conditioning. Home inspectors will check to make sure all basic functioning of the HVAC system is in working order, and they’ll note if there’s anything that could be troublesome in the future like rust around the unit, cracked ductwork, etc.

Home inspections give you a great overview of the home as well as another unbiased opinion on if the house is a good investment. Don’t skip out on getting a home inspection to save yourself a few bucks now. You could be putting yourself in a tough financial position in the long run.

As a first-time homeowner, it’s crucial to have an idea of what to expect and how to handle the responsibility of owning your own home. The David Morris Group is always happy to show you the ins and outs of owning a home and help you make the transition from renter to homeowner seamlessly. Give us a call at 775-828-3292.

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