What Is A Bridge Loan And How Does It Work?

 Understanding Bridge Loans: A Simple Guide

Navigating the real estate market can be challenging, especially when you're trying to buy a new home before selling your current one. Enter the bridge loan—a handy financial tool designed to "bridge" the gap between these transactions.

What Exactly Is a Bridge Loan?

A bridge loan is a short-term loan that lets you tap into your home's equity to fund the down payment for a new property. This means you can secure your dream home without waiting for your existing one to sell. It's particularly useful in competitive markets where sellers are less inclined to accept offers contingent on the sale of another property.

How Does It Work?

Here's a straightforward breakdown:

1. Loan Types:

   • First-Mortgage Bridge Loan: This loan pays off your current mortgage and provides additional funds for the new home's down payment. Essentially, it replaces your existing mortgage.
   • Second-Mortgage Bridge Loan: This loan adds to your existing mortgage, giving you the necessary funds for the down payment without altering your original loan.

2. Borrowing Limits: Typically, you can borrow up to 75% of your home's value. So, if your home is valued at $400,000, you might access up to $300,000.

3. Repayment Terms: Bridge loans are short-term solutions, usually requiring repayment within 12 months or less.

Pros and Cons

Pros:

• Quick Access to Funds: Enables you to act swiftly in purchasing a new home.
• Non-Contingent Offers: Strengthens your buying position by removing sale contingencies.

Cons:

• Higher Costs: Expect interest rates between 6.99% to 8%, plus closing costs ranging from 1.5% to 3% of the loan amount.
• Multiple Payments: You might be juggling up to three mortgage payments temporarily.

Is a Bridge Loan Right for You?

Before diving in, assess your financial situation:

• Home Equity: Ensure you have significant equity, as borrowing limits are based on your home's value.
• Debt-to-Income Ratio: Confirm you can comfortably manage multiple payments, even if your income fluctuates.

In essence, while bridge loans offer a convenient pathway to your next home, it's crucial to weigh the benefits against the costs and ensure it aligns with your financial health.

For more information, contact us!

Aundrea Beach-Greco
CMG Home Loans                                                                                                 
Mortgage Advisor, CMPS                                                                              
NMLS 333739
(702) 326-7866                                                                                         info@aundreabeach.com                                                                            
www.iLendLasVegas.com

How to overcome homebuyer uncertainty in a high rate environment

 Navigating Buyer Uncertainty: Strategies for Addressing Housing Affordability Challenges

Recent reports from CNBC, Redfin, and Bloomberg have highlighted low inventory, high mortgage rates, and buyer uncertainty and affordability challenges as factors contributing to the current housing market.

Buyer hesitation is prevalent in today's market and is often due to housing affordability. This decline is attributed to high mortgage rates, escalating home prices, and increasing living expenses due to inflation.

So, how can you address this hesitation in today's real estate market?

The solution lies in education.

While you cannot change current market conditions, you can effectively change your outcome with education.

Four Strategies to Help You Understand Home Affordability:

1. Understand Financing Options and Their Benefits
   Look for financing incentives that can make homeownership more affordable, such as lower monthly payments, increased purchasing power, or easier qualification processes. These advantages can significantly simplify your journey to owning a home.

2. Explore Online Resources to Guide Your Homebuying Journey

   • Visit websites that offer helpful tools and resources, like infographics and videos explaining why buying a home now can help you build wealth, the cost of waiting, and the financial benefits of owning versus renting.
   • Use financing calculators, watch videos answering common financing questions, and take advantage of live chat support to get your questions answered quickly.

3. Attend Homebuyer Webinars/Zoom
   Sign up for online webinars tailored to first-time homebuyers. These sessions can walk you through the homebuying process, explain how to take advantage of financing opportunities, and show why now is a great time to purchase a home.

4. Ask Questions and Get Clarity on Financing
   When speaking with your real estate agent or lender, ask them to explain financing options in plain language. Don't hesitate to address concerns or objections you might have about affordability—they’re there to help you find the best path forward.

Homeownership is Achievable
Despite affordability challenges, the dream of owning a home is within reach for millions of people. By staying informed and exploring your options, you can confidently take the next steps toward achieving your goal of homeownership.

hashtag#realestate hashtag#homebuilders hashtag#mortgagesforeveryone

Keep Your Data Protected From The Recent Data Breach

National Public Data is a background check company that has over 2.9 billion people’s personal information. Recently, the company suffered a security breach that leaked information including: Social Security Numbers Dates of birth Other personal information To see if your information was part of the leak: Go to www.haveibeenpwned.com and/or www.Pentester.com Type in your name and date of birth The site will let you know whether or not your SSN has been compromised What to do if your SSN was compromised: Freeze your credit by heading to the three main credit bureau sites Trans Union Equifax Experian You can unfreeze your credit for the home loan process Make a habit of monitoring your bank and credit accounts online on a regular and frequent basis Always use strong passwords Always use Multi Factor Authentications Do not respond to unexpected text messages or emails Be vigilant and consistent! Do the research to find the right options for your personal situation. If you have any questions, let us know.

Seller Concession Cheat Sheet

[SAVE THIS CHEAT SHEET!!]

This will come in handy while navigating going forward in 2024...

 

Creative ways to use excess seller contributions

While seller contributions are limited to actual closing costs, you can constructively increase your closing costs to use up all available funds.

Imagine the seller is willing to contribute $7,000 to buyer closing costs but they only add up to $5,000. That's a whopping $2,000 is on the line of unused money. We don't want to leave that on the table!

In this situation, ask your lender to quote you specific costs to lower the rate. You could end up shaving 0.125%-0.25% off your rate using the excess seller contribution.

You can also use seller credits to prepay your homeowners insurance, taxes, and sometimes even HOA dues. Ask your lender and escrow agent if there are any sewer capacity charges and/or other transfer taxes or fees that you could pay for in advance. Chances are there is a way to use all the money available to you.

You can even use seller credit to pay upfront funding fees for government loan types like FHA.

Use seller contributions for upfront FHA, VA, and USDA fees

All government-backed loan types allow you to prepay funding fees with seller contributions.

FHA loans require an upfront mortgage insurance payment equal to 1.75% of the loan amount. The seller may pay this fee as part of FHA seller concessions. However, the entire fee must be paid by the seller. If you use excess seller credit, but it's not enough to cover the entire upfront fee, then you cannot use the funds toward the fee.

VA loans allow the seller to pay all or part of the upfront fee (2.3%-3.6% of the loan amount). The fee counts towards VA's 4% maximum contribution rule.

USDA requires an upfront guarantee fee of 2.0% of the loan amount. The buyer can use seller contributions to pay for it.

What this means for you...

1- You will need a signed buyer broker agreement to protect yourself.

2- Time to hone in your skills and show your value.

3- Partner up with a lender that can help you navigate and succeed in today's market. 

Reach out if I can help!

Aundrea

NMLS 333739
702-326-7866

info@aundreabeach.com
www.AundreaBeach.com

I’m going to wait until interest rates drop before I purchase a new home

Internal voice ...

“I’m going to wait until interest rates drop before I purchase a new home”… Sound familiar? 

This is probably something you have heard or even maybe said to yourself over the last few years, right?

Here is the reality, housing prices have risen every year for the last 11 years, and more than likely will continue to rise.

In 2021 alone, housing prices increased by a jaw dropping 18 percent, the highest on record. Even last year they still rose on average, 2.88% and that’s WITH interest rates on the rise.

Truth is, if you keep waiting for interest rates to decrease, if the last 11 years say anything… sure, you may have a lower interest rate but that won’t matter much when you’re spending (on average) 2.88% more on the cost of that house.

In conclusion, start getting ready now!
So, look for the right opportunity to take the first step in Home Loan Readiness (such as this article!), you can always refinance later when rates drop!

Get ahead of all those waiting, hoping and wishing for things to change and get ready NOW.

REMEMBER: Marry the home, date the rate, divorce the landlord!

As a homebuyer, understanding this relationship can help you make informed decisions about buying a home, and with the prediction of rates dropping this year, it’s crucial to have a leg up in the race to become a homeowner.

Get prepared for the market boom when rates drop by making sure you have everything you need to hear the words “You're Pre-Approved” by working with CMG!

Click Here For Your FREE Consultation!

During your FREE Personalized Consultation, we will walk you through what steps you need to take to become approvable on your home loan specific to your current financial situation.

CMG provides ALL the tools you need to qualify for your loan FASTER.
Failing to plan is planning to fail.

CMG provides a detailed action plan to help you overcome the major obstacles preventing you from getting your loan:

✅ Debt to Income
✅ Credit
✅ Savings/Down Payment
✅ Documentation

Let us help you navigate through the home buying process so that when you are in the best position possible, we can get you back over to your lender and get you that PRE-APPROVAL!

How to dispute your high property taxes in Las Vegas, NV

Hey there, fellow homeowner! Feeling the pinch from those towering property taxes? Join the club. Negotiating the purchase price of your cozy abode is one thing, but dealing with those seemingly non-negotiable property taxes? That's a different story.

Here's a step-by-step approach for homeowners dealing with high property taxes:

1. Understanding the Concerns: As homeowners, the weight of high property taxes can be a considerable concern. While negotiating the purchase price of a property is within one's realm of influence, the amount allocated for property taxes is, unfortunately, not negotiable.

2. Awareness of Challenge Opportunity in Nevada: In the state of Nevada, homeowners possess a specific window of opportunity to challenge their property tax assessments. This window is confined to a one-month period, commencing on December 15th and concluding on January 15th of the ensuing year.

3. Grasping the Assessment Methodology: It is pivotal to comprehend the methodology employed in determining property taxes. The Clark County Tax Assessor's website elucidates that the taxable value of real property equates to the market value of the land and the current replacement cost of improvements, adjusted for statutory depreciation.

4. Understanding Tax Rate Variations by District: Different tax districts exist within Clark County, each with its respective tax rate. Familiarization with the specific tax district pertinent to one's property is crucial. This information is obtainable from the tax bill and can be cross-referenced with the provided chart on the assessor's website, facilitating the calculation of annual tax obligations.

5. Recognition of Assessment Adjustments: Over the years, property values have been subject to fluctuations, particularly during market downturns. In response to the market crash, the Clark County Assessor conducted reassessments to align property values with the prevailing market conditions. However, discrepancies may still exist, necessitating a diligent review.

6. Validation of Property Information: Homeowners are advised to verify the accuracy of property information maintained by the assessor. Factors such as square footage, room count, and bathroom count should be meticulously scrutinized for discrepancies. Comparative analysis with neighboring properties of similar size and age can unearth potential errors in the assessor's records.

7. Determining the Property's True Worth: Relying on reputable sources and steering clear of online valuation tools, homeowners are encouraged to ascertain their property's true market value. This involves gathering comparative data of recently sold properties similar in nature, a task best undertaken with assistance from a reliable Realtor or a certified appraiser.  If you need a recommendation, let us know. 

8. Initiating the Appeals Process: When armed with substantiated evidence of a discrepancy between the assessed value and the property's actual market worth, homeowners should take the initiative to challenge the tax assessment. The County Assessor's office offers the necessary appeal forms, obtainable by calling (702) 455-4997. The completed paperwork must be submitted before the January 15th deadline.

9. Exploring Further Appeal Options: In the event of an initial appeal rejection, homeowners possess the option to escalate their appeal to the State Board. If this route proves insufficient, a final recourse lies in appealing to the District Court.  Appeals can be initiated here. 

10. Empowering Homeowners: Equipped with accurate information and a thorough understanding of the appeals process, homeowners are now empowered to navigate the landscape of property taxes effectively. Taking proactive steps to challenge unjust tax assessments is essential in upholding financial prudence and fairness in property taxation.

Seize the opportunity to ensure that your property taxes align with the true value of your home and contribute to a just tax system.

Here is the tax abatement page with Clark County for you to look over.

Ready to take charge and tackle those taxes like a pro? Seize the moment and let's get those property taxes in line! 🏠💪

To your success,

Aundrea Beach-Greco, CMPS 

Licensed Mortgage Loan Officer | NMLS 333739

702-326-7866 

info@AundreaBeach.com

Find me online www. AundreaBeach.com

Apply online at www.iLendLasVegas.com

Can I Buy A Home with Student Loan Payments?

 

Millions of students across America are struggling to repay their student loan debt and student debt ranks as the second-highest consumer debt category, with only mortgage debt being higher. It’s also the fastest-growing segment of U.S. household debt, having grown nearly 157% over the past 11 years. It’s a trillion-dollar problem in the U.S. and it keeps growing.

Most student loans in general are federal student loans that you took out while attending college however there are some private student loans backed by banks, credit unions, etc.  At the time, it sounded like a great option to help with school expenses or being able to attend college at all. They don't tell you the pros and cons when you apply and you certainly didn't understand the ramifications to your credit in the future if you couldn't pay the payments once you graduated.  

A federal student loan is a federal debt that will NEVER go away. With that said, those student loans will need to be in good standing to buy a home. Old loans, late payments and missed payments can be overcome, but student loans in collection will have to be resolved and put back into repayment status. 

Student loans don't affect your ability to get a mortgage any differently than other types of debt you may have, including auto loans and credit card debt. Most loan programs have a debt-to-income (DTI) limit. DTI is the main factor lenders use to determine how much they are willing to let you borrow, and student loans are part of that assessment. This includes your current monthly debt payments and your future mortgage payments. Check out your buying power with our new tool!

Good News! For student loans not in active repayment (forbearance, deferment, income-based repayment plan), the guidelines state we use 1% to 1/2% of the unpaid balance unless you have an actual payment that is being reported on your credit report. 

Student loan debt can be a drag, especially if you’re trying to buy a house. Fortunately, there are options. By taking advantage of the right loan programs, working on your credit and DTI and teaming up with the right partners, you can improve your chances significantly, not to mention lower the cost of buying a home both up front and for the long haul.

Contact us today to see if you can qualify to buy a home even with your student loans! 

Check out our pre-qual tool!

Aundrea Beach-Greco 

Mortgage Lender, CMPS 

NMLS 333739

📱 +1 702-326-7866

📧 info@aundreabeach.com

🌐 www.AundreaBeach.com

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#HomeLoansForEveryone #AundreaBeachGreco #AundreaBeach #thebeachgrecoteam #AdviceMatters #Mortgage #Mortgages #MortgageLender #MortgageRates #Realestate #Home #Refinance #Equity #Loans #Credit #CreditRepair #LasVegas #Nevada #Investment #Properties #Homebuying #HomeForSale #DreamHome #NewHome #Homeloans #Finance #BuildWealth #FinancialFreedom

Aundrea Beach-Greco, CMPS. Licensed Mortgage Loan Officer. NMLS 333739

702-326-7866 info@AundreaBeach.com

Find me online www. AundreaBeach.com

Apply online at www.iLendLasVegas.com