Category Archives: Traditional Home Loans

Proof That Buying a Home is Smarter Than Renting

Home buying

If you rent a home in Las Vegas, you probably located that home through the usual methods. Checking online ads, driving neighborhoods, scanning through Zillow, Trulia, and other similar sites to find one that works for you. Or perhaps just to find one at all – since rental homes in Las Vegas are in high competition, and each one usually has multiple applicants.

“During that process, you probably couldn’t help but notice (especially on the real estate sites) the estimated value of those homes, or how much they last sold for,” explains Rick Piette of Premier Mortgage Lending. “Those well-placed ‘home financing’ ads caught your eye, and somewhere along the line you started thinking, “Jeez – the mortgage payment would be less than the rent!”

“And therein lies the point. In fact, we’re not telling you anything you don’t already know – because it’s no secret that owning a home is infinitely better than renting, for many reasons. Not only stability and security for your family, but financial benefits, equity building, and more, Piette continues. “Keep in mind, too, landlords wouldn’t be very smart if they rented their properties for less than their mortgage payments, would they?

“So, what is it that stops most people from home buying – when all indications are that it’s the smarter decision? In almost every case, it’s fear,” explains Piette. “Fear that they don’t have the down payment saved up, fear that they won’t qualify for a mortgage loan – or both. But as a FDR once reminded us, “We have nothing to fear but fear itself.” And that’s true- especially when it comes to getting a mortgage loan.”

“That’s why I’m excited to share the news about Premier Mortgage Lending’s new 1% Down Loan Program. This loan is helping many people who shared those fears leave the uncertainty and high cost of renting behind to step into a home of their own – and it’s simply life-changing,” Piette reveals.

How does this new “Conventional One Percent Down with Equity Boost” loan work?

• Requires only 1% of the purchase price as a down payment.
• No savings? No problem. This 1% down payment can be in the form of a gift from a family member.
• The Lender adds another 2% down on your home on your behalf. (You’ll instantly have 3% equity in your home at closing.)
• It falls under our true “No Fees” program.
• 30-year, fixed rate loan.

“To be honest, even I wasn’t sure if this loan was as good as it seemed – until I started helping our borrowers use it to buy a home. And I can confirm that it’s every bit what it promises,” adds Piette. “Our 1% Down Loan is really having an impact for Las Vegas homebuyers – making the expensive (and non-recoupable) costs of renting a thing of their past.

“If saving up for a 5, 10, or 20% down payment has been your biggest hurdle to buying a home – then we need to talk. Because you have the power to change your life and start building financial freedom, and Premier Mortgage is here to help make that happen,” Piette assures.

To find out more about how Premier Mortgage may just be the best thing to happen to homebuyers in years – visit www.1percentloan.com for more details and see if you may qualify for our true 1% Down Loan Program. Then call us to find out more at 702.485.6600.

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, Henderson, 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.

Is Buying a Home Right For You? Some Things to Consider.

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With all the upheaval of the American economy and the housing markets during the past few years, it’s only natural that those who lost a home during that time would think twice about buying another one.

And actually, that’s not only a good thing when it comes to a major investment like a home – it’s a necessary thing. With homes – as with most things in life – there’s no easy “One Answer Fits All” solution. But there are some things that those who are on the fence and undecided should consider, and those include:

The Emotional Benefits of Owning a Home

Security

There are few things more unsettling than living in a home at the whim of a landlord. The drawbacks include not knowing when/if they’ll want you to move, and if the rent will be increased (and if it is, can you afford it?). But there are other proven benefits to owning a home that many don’t think about, such as access to neighborhoods with better schools, better social and physical conditions, and single-family homes are generally maintained at a higher quality – which results in lower crime rates, too.

Pride

Owning a home is a huge accomplishment – one that still exemplifies the American Dream – and no matter what anyone may tell you, Americans do still dream of owning a home. It’s a place to call your own, that you can personalize to suit your needs and your tastes. It gives people more confidence in themselves and often spurs them to pursue even more life goals. Taking pride in not only acquiring a home but in making improvements to improve your lifestyle – that’s a really big deal. And if you’ve owned a home before, you remember that feeling.

Community

When you own a home, there is a great sense of belonging to a community that comes along with it. You’re more connected with your neighborhood, your community, the people, and even your town. You’ve put down roots and in many cases make lifelong friends. And your kids will have the security of knowing that “home” means just that. It belongs to them, and they don’t have to worry about suddenly having to change schools and reestablish their friends and lives at the whim of a landlord. Studies also indicate better school performance and youth behaviors in children who live in a home of their own, in addition to developing greater self-esteem.

Financial Benefits

Definitely worth remembering is this: Historically, the primary path that Americans have used to create wealth has been through homeownership. Not through their jobs, not through stock market investments (and certainly not by buying lottery tickets!) – but by owning a home. Just think about it, because at it’s base, it makes perfect sense: Rather than contributing to a landlord’s net worth with a rent payment, your monthly mortgage payment continually contributes to YOURS.

There are many things to think about when planning to make the leap into homeownership. Fortunately, at Premier Mortgage Lending, our experienced loan officers know what those things are. We can help you consider all the factors involved, let you know the costs of obtaining financing, and help you determine if the time is right for you to make that move.

As a locally owned mortgage broker, It’s simply what we’ve been doing for our neighbors here in Las Vegas for years. We know the city. We know the neighborhoods. And we’re the home of the true traditional No-Fee Mortgage – which means our clients save thousands of dollars when they buy a home with a Premier Mortgage Lending loan.

Visit our website at www.PremierMortgageLending.com for more information. And to learn which are the most important questions to ask your mortgage lender, visit our www.KnowBeforeYouOweNevada.com website – where you’ll find quick informational videos that take the mystery out of getting the best mortgage loan for your needs.

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, Henderson, 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.

How Many Unnecessary Loan Fees Have You Paid So Far?

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Did you know that the average American is calculated to make approximately 11.7 moves in their lifetime? (according to the U.S. Census Bureau) That seems like a lot, doesn’t it? And it’s all right with us if you’d like to pause a moment before reading on to mentally count how many homes you’ve lived in so far, too.

But that figure got us to thinking. Everyone at Premier Mortgage takes pride in the fact that our loan programs are able to save our customers thousands of dollars on the cost of a new mortgage loan. So when we heard that statistic, we stopped to do a little calculating ourselves. And we came up with a surprising figure:

$23,400.

What does that number represent? Simply put – that’s how much money we could save each of our customers on their mortgage loans. Ouch.

(Want to know how we calculated? Like this. We estimate that: (a) Only half of those moves would involve the purchase of a home; (b) That each mortgage loan would be for only $200,000; and (c) That other lenders would charge a minimum 1% Loan Origination Fee, plus an approximate 1% for various other lender fees.)

And actually, those are very conservative calculations. For many of our customers who have taken the time to shop mortgage lenders for the best rates and fees – and compare other Loan Estimates to Premier Mortgage’s – we’ve been able to save them from $6-$8,000 or even more – just on the cost of a single mortgage loan.

How do we do it? Our traditional loans don’t charge our customers any fees. No Loan Origination, Document Fees, Processing Fees, or Underwriting Fees. Which means that $23,400 savings could actually turn out to be as much as $40-$50,000 or higher.

What would that kind of savings mean to your family?

It’s worth thinking about. Because as the numbers show, making the right choice about every single mortgage loan can make a huge difference in your financial status. Fortunately for you, Premier Mortgage plans to keep right on providing the best loans, the best rates, the best service, and No Fee loans to our customers – just as we’ve been doing in Las Vegas for years.

We’re the home of the true “No Fee” mortgage loan. Find out more at our www.KnowBeforeYouOweNevada.com website. There, we provide an educational series of short videos that explain exactly what you need to know to save big money on your next mortgage loan – and which questions you need to make sure you ask your next mortgage lender.

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.

What the Fed’s Recent Decision Means for Mortgage Loans

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A couple of weeks ago, it seemed that you couldn’t open a website or turn a newspaper page without hearing all the buzz about the upcoming decision by the Federal Reserve on the key interest rate. “It’s going up” – “It’s staying the same” – it’s not like there were a lot of options, really. But media being what it is meant everyone shared their opinion as they jostled for position at the top of the search engines. (Not-so-much-of-a-Spoiler-Alert: The Fed announced September 17 that rates would not change.)

So for the time being, the interest rate stays near zero – as it has since early in the financial crisis in December 2008. Or at least until October or November of this year- as the Fed committee still has two more meetings to go – so it’s possible things could change before the end of 2015.

But what exactly does that mean when it comes to mortgage loans? If you’re currently searching for a home, or planning to in the near future, you more than likely already know that interest rates have a huge effect on your financial ability to buy a home and qualify for a mortgage.

So we’d just like to shed a little light on the answer to that question and say that it depends: Are you a glass half-full, or a glass half-empty kind of person?

On the “half-full” side, conventional wisdom indicates that mortgage interest rates won’t be seeing a huge change anytime soon. Because even if the Fed increases the interest rate before 2015 is ushered out, such an increase is anticipated to be small (a maximum of about .25%).

It does, however, open the door for additional interest rate hikes in the months to follow. But the good news is that because rates are still currently very low, it may take a year or more for such slow, incremental increases to cause any noticeable impact on the mortgage industry overall. In other words, the rate on your new mortgage loan isn’t going to change overnight.

On the flip-side – for those “half-empty” personalities, the decision by the Fed not to raise the interest rate reflects a U.S. that has not yet fully recovered from the financial crisis. While projections call for employment to continue to rise and the economic growth outlook is improved, concerns about global economies play an important role in the decision-making process. Because in many ways, what the Fed does plays a role in trade, currencies, and commodities on the world stage.

In truth, a rate hike by the Federal Reserve can have both positive and negative results. On the upside, the housing market itself can gain additional momentum simply based on the anticipation of such a hike, as home buyers get off the fence and make the decision to buy now so they can lock in low mortgage rates. Conversely, if such a rate hike hurts other economies in the world, that can ultimately impact U.S. trade and economic growth.

It’s a fine line to be sure. And it’s a call with enormous impact that reaches far beyond our borders. But the current decision, in our opinion, is a great one for the mortgage industry – and for anyone looking to upgrade, downgrade, or buy their first home.

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.

Premier Mortgage Wants Buyers To “Know Before You Owe Nevada”

Jim Pic 5Home Loans 101 Help You Shop For The Right Mortgage

Say you’re out shopping for a new refrigerator. You’ve had your eye on one for awhile. You know – the one with the big French doors, the climate-controlled drawers, and maybe it can even be connected to your ‘smart’ home and send you a text message when you’re out of milk. As much as you love that refrigerator, do you simply hand over your credit card without asking how much it’s going to cost you? Of course not.

Surprisingly, though, that’s pretty much what people do with a mortgage for their new home. Their builder or Realtor refers them to a lender – either for a pre-qualification letter or to make a full loan application – and then, well – that’s all she wrote.

“Unfortunately, that’s also when homebuyers end up paying much more money than they should – because not all mortgage loans are the same,” according to Rick Piette of Premier Mortgage Lending. “If they knew there were other options, and were prepared with the right questions to ask potential lenders when they shop for a loan, homebuyers would save literally thousands of dollars. That’s money they’d probably enjoy spending more on new furniture, or maybe even a trip to Hawaii.

“The problem is, if you don’t know you can ask, you certainly won’t know what to ask. That’s why we created our KnowBeforeYouOweNevada.com website. It’s designed to make it easy to learn how to compare loans, know which questions to ask, and help you make the best financial decision for your specific home buying situation.”

Following the economic turmoil of recent years, the Consumer Financial Protection Bureau (cfpb.gov) was formed, and one reason was to help buyers understand the vast differences in mortgage loans between banks, mortgage banks, and mortgage brokers.

The CFPB states that their new mortgage rules will make the market safer and easier to understand. CFPB Director Richard Cordray said in a statement, “Shopping for a mortgage can translate into big dollars saved in the long run. We want to enable consumers to be more savvy shoppers.” Premier Mortgage Lending is glad that it’s bringing a new level of transparency to the mortgage industry.

Piette goes on to add, “Many aren’t aware that the new legislation directly affects mortgage brokers. As a mortgage broker, Premier Mortgage Lending has legal limits about how much we can charge for a loan, and borrowers are fully aware of “all” the revenue a broker earns. So what we’ve chosen to do is pass those savings along to the consumer – which is why we’re able to offer a true “No Fee Mortgage Loan” to homebuyers.

“A No Fee Mortgage means exactly what it says. When buyers gather and compare Fee Worksheets from multiple lenders, there are some things they won’t typically find on a Premier loan – like fees. Those line items for Loan Origination, Underwriting, or Document Prep Fees will all show a nice, big $0 – because we don’t charge for those things on our traditional loans at all. And that’s where homebuyers can save big.”

Premier Mortgage, together with the CFPB, is on a mission to help consumers understand all of their mortgage loan options. With their brief “Home Loans 101” videos at KnowBeforeYouOweNevada.com, buyers can easily become more informed about how to shop for a new mortgage loan (perhaps even better than for a new refrigerator!).

As Rick Piette is happy to note, “When it comes to mortgage loans, the power of choice is back in the hands of the consumer. We think that’s a very, very good thing. And so does the Consumer Financial Protection Bureau.”

Premier Mortgage Lending, NMLS #393282, is located at 701 N Green Valley Pkwy. #125 Henderson, NV 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.

With Another Chance Nevada, Renting Is Not Your Only Option

Jim Pic 1Is Your Home Buying “Waiting Period” Over?

Short sale. Foreclosure, Pre-foreclosure. Deed in Lieu. Since the collapse of the housing market in 2008, it’s estimated over 7.3 million homeowners experienced one of those unfortunate circumstances affecting their homes. And it’s a pretty safe bet that if you didn’t go through one yourself, you have friends or family that did.

An unpleasant turn of events? Absolutely. But in truth, those terms used to be a lot scarier before the economic crisis took place. For most of us, the years between then and now have been tough. Not only did we lose a part of our identity, legal waiting periods as to when we were able to get another FHA, VA, or Conventional mortgage loan kept us from finding a way to get back on track.

Adding insult to injury, since then rents in the U.S. have risen at alarming rates – now literally at twice the cost of inflation. Multi-family construction is now at a 27-year high, and in some markets (including Las Vegas), statistics show that renting can actually cost twice as much as owning a home.

“But there is good news for consumers,” according to Rick Piette, owner of Premier Mortgage Lending, “and it’s news that many aren’t aware of yet. All that has begun to change. As time has gone by, those short sale and foreclosure waiting periods are coming to an end, which means families who may have feared a home of their own was out of reach are discovering that’s no longer the case.”

“Even better, though, is that with programs like Premier Mortgage Loan’s Another Chance Nevada, homebuyers don’t need to wait on those restrictions at all – they can buy a home as little as one day after a short sale or foreclosure. As a non-traditional financing alternative, Another Chance Nevada is not burdened with those waiting periods, which offers an attractive alternative to renting,” reveals Piette.

Piette goes on to explain, “With our private lending program, there may be a higher interest rate and fees to initially get back into their own home. However, it’s important to note that none of our loans contain pre-payment penalties, which means you still have the ability to refinance to more favorable terms in the future. With interest rates still low for traditional loans, though, even those additional costs make good financial sense.”

“The likelihood is that this type of private money loan will not only cost less than renting – but you are investing in yourself (instead of a landlord), and you’ll get to enjoy all the financial and emotional benefits that accompany homeownership.”

Premier Mortgage Lending created Another Chance Nevada to offer buyers better options and to take part in keeping the Las Vegas economy keep moving in the right direction. After helping hundreds of buyers in Southern Nevada get back into their own home again with this program, Piette is gratified to know that it’s really making a difference.

One such customer was happy to offer this description of their experience: “Premier Mortgage gave us the opportunity to own a home again immediately after having to short sale our old home. Through their 2nd Chance Loan Program we were able to turn a negative situation into a positive one.”

“Is it time to begin shopping for a home of your own again?,” asks Piette. “All signs indicate that it is. The timing is perfect, home sales are climbing, yet interest rates are still low. And because many consumers thought they weren’t qualified to buy a home yet, they’re not aware of the financing options they have. We’re trying to change that with Another Chance Nevada – and it’s really working.”

Premier Mortgage Lending, NMLS #393282, is located at 701 N Green Valley Pkwy. #125 Henderson, NV 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.

The Benefits of Refinancing Your Home Loan

When you decide to refinance your mortgage, you replace your current loan with a new mortgage bearing terms. You can save thousands of dollars and gain the peace of mind with fixed monthly payments. But, before deciding to refinance, determine what your goals are and what you want to accomplish. 

Mortgage refinancing reduces your monthly payments. For example, it could extend the term of the loan form 15 years to 30 years, and would reduce a monthly payment from $1,792.00 to $1,329.00, for a home with a cost of $200,000 with a 7% interest rate.
 
If you have positive equity, you can tap into your property’s equity by taking another mortgage for more than you owe. With the cash-out refinance option, the market value of your home must be higher than the balance on your current mortgage.
 
The low interest rates are one of the best reasons to refinance as well as the improved loan period. It is important to shop around. Luckily, when you make the decision to refinance, you have the luxury of fully investigating your options.
 
It is important to look carefully at the refinancing fees and make sure your savings will pay back those costs in a reasonable time frame. The financial risk can cause the bank to foreclose on your house and keep the proceeds from a sale. If you default and the sale of your house does not cover your loan amount, the bank can seize other assets. When it comes to refinancing your home loan, Premier Mortgage Lending can lend a hand.

How Much Home Can I Afford?

One of the most important questions home buyers ask today is “How much home can I possibly afford” or “How big should my mortgage be?” There are no solid answers to these questions, but there are factors to consider when determining home affordability.

When buying a home, mortgage lenders don’t just look at your income, assets and the down payment you have. They look at all of your liabilities, obligations, including auto loans, credit card debt, child support and potential property taxes and insurance, and your overall credit rating.

There are primary factors that will determine your monthly mortgage payments, the size of the loan, which refers to the amount of money borrow, and ‘term’ of the loan, which determines the length of time within which it must be paid back in full. For this reason, a 30-year mortgage plan is most common among homeowners.

Before considering a home purchase, it is important to determine a comprehensive budget by listing all sources of income and your spouses including alimony, child support and investment income and your income from your job. Add up your monthly expenses leaving room for clothing, entertainment, and other item you purchase on a monthly basis.

Once you’ve established a budget, determine the amount left to go toward housing expenses and take into account insurance expenses, the cost of utilities towards a new home, and HOA fees.

The home buying process can be quite lengthy and complex and when you decide to apply for a mortgage loan, your credit history and credit score will be the most important factors when determining what you want, in addition to any other requirements your lender may require you to meet to obtain a mortgage loan.

Save yourself from frustration and disappointment down the road by doing your research and making the necessary calculations you need now. Look at homes within your price and combine it with the knowledge that you can obtain financing at the home’s price point. Premier Mortgage Lending can lend a personal and experienced touch to all your mortgage requirements.

How to know you’re ready for your first home

Some people may be overly cautious. Others are too zealous in their goal of homeownership. The question of when you’re actually ready to make the jump into buying your first house can be tricky. It usually starts with some harmless internet browsing. Next thing you know, you’re fantasizing about having your first home. Before you start packing for the move, consider the following tips.

1. By and large, homeownership makes more financial sense than renting. If you’re living in an apartment, chances are you’re spending well over $1,000 a month for something decent. With a decent loan, you could be paying much less in a monthly mortgage payment. Owning a home also allows you to build equity, which is important in building wealth.

2. Be ready to make a long-term commitment. This should go without saying, but it’s important to understand that a home is more permanent than renting or cohabiting. Make sure you’re job and/or relationship situation is somewhat stable. Of course you can always sell, but it will be more complicated than breaking a lease.

3. Take note of your debt-to-income ratio and credit score. These two factors play a major role in your home loan application. You should also have enough cash to place a significant down payment.

4. Know your local housing market. Las Vegas has had plenty of ups and downs over the past decade. Thankfully, the worst of the housing crisis is over. Homes are being built and sold in Las Vegas once again. At Premier Mortgage Lending, we can help first-time homeowners qualify for a low rate that may make ownership seem even more attractive.

Why you should shop for the best home loan

No one takes the purchase of a new home lightly. Many homebuyers spend months or even years searching for that perfect new property. If one shops around for the perfect home, then why not shop for the perfect mortgage? You could be spending the next several years paying off a home loan. Finding an affordable interest rate could save you hundreds, even thousands of dollars over the lifetime of your loan.

For these reasons, the experts at Premier Mortgage Lending advocate shopping around for the best loan “price.” Some real estate agents may steer you toward certain lenders or banks. Just remember, it’s your purchase and you’re the boss. Their lender may not always offer the best rates.

It will be to your advantage to find the right mortgage lender early in the home buying process. This will allow you to get your loan application rolling by getting pre-approved. If you happen to find your dream home, you’ll be able to put in a serious offer right away. This could mean all the difference in closing the deal before another well-prepared home shopper.

When searching for the best loan, don’t just look at the interest rates. While the loans may seem similar across the board, there could be major differences in final costs and fees. If there are tiny differences in rates, these could mean big money over time.

According to the Consumer Financial Protection Bureau, approximately 50 percent of mortgage borrowers don’t shop around when they buy a home. We at Premier Mortgage Lending agree that this practice could be a major thorn in the side of homeowners.