Why Owning A Home Is Important, And Why Should You Buy One Now?

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We’d like to be honest about something: There are plenty of reasons why “other people” want you to buy a home. But there are even better reasons why you should do it for yourself.

As far as the “others”, we’ll be the first to admit: Owning a home is a huge driving factor in our economy. It affects builders, real estate professionals, insurance agents, contractors, inspectors, appraisers, furnishings stores, interior decorators, and yes – mortgage lenders, too. The real estate market is tied into the cycle of jobs, and the list of benefits it brings to your local community are innumerable. In other words, the act of buying and owning a home – one person, one couple, one family at a time – has a cascade effect on your hometown that simply cannot be overstated.

“Even so – those reasons don’t address the most important factors about owning a home,” reveals Rick Piette, owner of Premier Mortgage Lending in Las Vegas. “It may sound surprising – even as you realize the livelihood of so many depends on the purchase and sale of real estate in your community. But making the choice to purchase a home actually benefits you the most – and is perhaps the most life-changing decision you can make.”

Rick Piette goes on to explain there are some very fundamental reasons this will always be true.

“When you’re in the midst of shopping for a home, there are elements your mind is constantly evaluating,” continues Piette. “Beyond the obvious points of finding a home style you like and being close to schools and shopping – your brain is actively making connections about your comfort level with the area. Proximity to people and places you’re familiar with; judgments about the surrounding homes and neighbors, and more. In fact, a wise real estate professional will find ways to appeal to your basic, evolutionary desires that address your need to supply safe surroundings for your family, a sense of community, and ways to provide relaxation (whatever that might mean to you).

“Why is this important?” Piette asks. “Because you’re not only making a financial investment in building your personal wealth – you’re putting down roots. Ultimately, where you choose to live will inform who your future friends will be, who your kids will meet and offer different opportunities for their futures. It’s the place you’ll create memories, build traditions, experience joy and heartache – and live life in all its myriad of flavors. It will be your “safe haven” from the world, where your family gathers to enjoy its unique existence. And it will be the base from which your children venture forth into the world as adults – their success often relying on the home environment you provided and on which they have come to depend.

In short, as this recent Wall Street Journal article elegantly informs, “A home is more than an investment. It is the place that helps shape who we are.”

“That’s why it’s no small matter – owning a home,” Piette adds. “Because the affect it can have on the trajectory of so many lives is immeasurable.

“For the past several years since the Great Recession, many people lost that touchstone and were forced by circumstances to become tenants rather than owners. But it doesn’t have to be that way. At Premier Mortgage, our mission is to find mortgage financing solutions that help families get back into their own home. We’re proud to say that’s exactly what we’re doing – one family at a time.”

“For years, interest rates have been at historic record lows in a nation-wide effort to help the housing market recover. And it’s worked, too. We’ve reported in previous blogs that all the data and statistics clearly show that over time the Las Vegas housing market has recovered. In many ways, it’s even healthier than ever.”

But the fact that interest rates have been so long for so long has also given buyers some leeway in postponing their decision to return to the ranks of homeowners. “Procrastination happens in everything we do,” suggests Piette.

“However, all reports point towards the fact that is about to change. The Fed has declared our improved U.S. economy and lower unemployment data indicate it’s time for an interest rate increase – and soon.

“What does that mean for those who have been ‘thinking about’ buying a home but haven’t taken action yet? Two things:

1) It’s time to get off the fence and make that decision, as delaying it can be costly in the form of higher interest payments on a mortgage loan; and

2) As many people will be making that call shortly – the amount of available home inventory will shrink as homes are removed from the market. That means potential buyers who felt they would have their pick of the home they want – will rapidly discover that’s no longer the case.

The bottom line is that there is plenty of great news affecting the current status of the real estate industry in the U.S.

• The economy continues to improve

• Jobs are still on the rise

• We’re healthy enough as a country to raise our interest rates soon

• But rates are still at historic lows right now

• Home builders are confident and building new homes to meet improved demand

• New mortgage loan industry regulations benefit borrowers more than ever before

• Time and distance from the housing collapse has made it possible for buyers to recover their finances and creditworthiness.

“Basically, if you were looking for a playbook on “The Best Time To Buy A Home” – you wouldn’t find a better convergence of circumstances than we’re facing right now,” reveals Piette.

When you decide that it’s the right time to buy, we’d like to remind you what Premier Mortgage Lending will bring to the table to help you make sure you get the right mortgage loan:

1) Savings (we’re the home of the true “No Fee” mortgage loan in Las Vegas)

2) Service (real people you meet and who work with you on your specific loan needs)

3) Transparency (no smoke, no mirrors – just apples-to-apples comparisons with other lenders, and honest answers to your questions)

You’ve heard it a hundred times before. But based on everything you just read, it may have never been more true: Now is perhaps the best time and opportunity to buy a home than ever before.

For more information on Premier’s loan programs and unique “Home Loans 101” educational program, visit. www.KnowBeforeYouOweNevada.com.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

3 Things That Can Stop You From Getting A Mortgage Loan – And How To Change Them

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The American Dream of owning a home is alive and well. And while it’s true that some of the rules for getting a mortgage loan have recently changed, every month thousands of families enjoy the excitement and extraordinary pride of becoming a homeowner – whether again or for the first time.

And you just might be one of them – if you play your cards right. (Your “credit cards,” that is.) Because homebuyers who plan ahead can take steps to improve the odds that their application receives the coveted “Your Loan Is Approved!” stamp. (Instead of that nasty alternative.)

Of course, lenders will still be looking at your finances to reach that final determination. But by making changes today in your spending behavior, you can make a huge impact on your future home-buying opportunities. It might not happen as quickly as tomorrow, but continually making small improvements and heading in the right direction with your credit and debt will make a difference to your lender.

According to Rick Piette, owner of Premier Mortgage Lending in Las Vegas, Nevada, “There are three key areas that those planning to buy a home in the near future should concentrate on immediately. These are: your credit history, how you handle your debt, and making the effort to educate yourself about mortgage loans.”

Having a Poor Credit Score and Credit History

Getting your credit in order is vital – because poor credit can mean you’ll pay more for that mortgage you get. Or worse yet – your application could be denied because your credit score is too low.

There’s no doubt about it, in this day and age, good credit makes the rules. In fact, it’s been calculated that over a lifetime, a person with poor credit could end up paying nearly $200,000 more for the same purchases over someone with good credit – simply due to the differences in costs and interest charges.

But even if life has thrown you some curve balls (such as, oh, maybe a Great Recession) – if you take calculated steps to get back on track with your money, it will begin to show up on your credit report and score with steady improvement. These include:

• If you have any collections or judgments against you, paying them off as quickly as possible.

• Bringing your over-the-limit and past-due accounts up-to-date.

• Paying all your bills on time.

• Reducing your credit card debt to 25% or less of your credit line on each card.

• Not opening new lines of credit.

• Not closing any credit card accounts, because then you’ll be using a higher percentage of your overall credit limit.

If your credit has hit some bumps, it’s always wise to speak with a mortgage lender about your situation before shopping for a home. A reputable firm will be happy to recommend specific actions you can take with regard to your personal credit status – such as which cards to pay off if you can, and in what order to tackle your debt reduction. They can also help you understand the different type of loan programs available to you and what credit scores you will need to achieve for them.

In short – if buying a home is on your list of Things-To-Do now or in the future, get your credit checked, speak with a lender, and then take the right action to start improving it now.

Carrying Too Much Monthly Debt

Your Income + Too Much Debt = No Home For You.

Debt-to-Income Ratio – that’s an important thing to know about when you’re planning to buy a home. (That’s your monthly income divided by your monthly debt payments.) And if those percentages aren’t right, your loan can be denied.

How to fix it?

“Obviously, you want to reduce your debt,” confirms Rick Piette. “Unless you’ve hit the lottery, this probably isn’t going to happen overnight. But by formulating a plan of how to attack your debt- in ways that will make the most difference to your ratios – you can begin to turn these figures around.”

“However, as Michael F. Kay explains in his recent Forbes column, Digging Yourself Out of Debt – without changing how you think of debt, the odds are you’re not going to change your spending habits. (The old maxim really does apply here: If nothing changes, nothing changes.)

In many cases, that mindset can be altered simply by changing what you focus on before making a purchase. Instead of concentrating on momentary gratification (as in, “The Super Bowl is going to look great on this 55-inch television!”) – think about how you’re going to feel when the bill arrives. In truth, it really can be as simple as that. When it comes to money, many people need to shift their perceptions about how society has conditioned us to behave.

“Kay goes on to offer several other techniques that help to re-train our thoughts on how we spend money,” adds Piette. “Reminding yourself of the long-term goals you’ve set and asking whether an expenditure will help or hinder your ability to achieve them is one. Kay recommends ‘visualizing’ where you want to be (in a home of your own and building wealth) vs. where you don’t want to be (renting an apartment and paying huge credit card bills each month).

You’re Not Asking The Right People The Right Questions

“You don’t know if you’re able to qualify for a mortgage, so keep that to yourself and don’t make any inquiries.”

WRONG!

If you have dreams of owning a home someday, then take your questions to a professional – whether it’s a Realtor, mortgage lender, or another industry expert. Even if you’ve never bought a home before, or you’ve lost your home to foreclosure or short sale – don’t simply assume that you’re not qualified to get a mortgage. Remember: Every person’s financial situation is unique, and because of differing circumstances – what was a complication for one person may not affect someone else.

“This is one of the most common problems we run into, and it’s really a shame,” reports Piette. “Because more people are qualified now to get a mortgage loan than they realize. As we’ve mentioned in a previous article, studies show that over half the people who want to buy a home never even ask if they’ll qualify for a loan simply out of fear the answer will be “no. ” And a large percentage of those people actually are able to qualify.

“What’s important to remember, though, is that even if the answer is “no” right now – by taking an active role to improve your credit and financial stability, you’ll have the opportunity to change that to a “yes,” – and in many cases, not too far down the road.

“At Premier Mortgage, we believe it’s so important for people to know the right questions to ask about getting a mortgage loan, we created an educational series known as “Home Loans 101” to help take the mystery out of mortgages. It helps buyers understand what to ask, and gives them the chance to compare lenders equally.

“A common misconception we run into is that people often think the cost of getting a mortgage loan is the same with any lender – and that is not at all true. There’s a difference between Banks, Mortgage Bankers, and Mortgage Lenders – and unless buyers shop around for the best deal, they can end up paying thousands of dollars too much for their mortgage loan. Those costs alone can make the difference in receiving a loan approval – or a loan denial.

“That’s why buyers need to discover the facts for themselves. Just as different people have different financial circumstances, different lenders will have different loan programs. Some of those programs can price you out of being able to buy a home,” Piette confirms. “But at Premier Mortgage – home of the true “No Fee” loan – we’re making it possible every day for Las Vegans to get into a home of their own. That could include you, too. What do you have to lose by asking?”

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.