Tag Archives: first time homebuyer

Think You Can’t Buy a Home? You Could Be Wrong and Here’s Why.

home buyers
Rick Piette, Owner of Premier Mortgage Lending

“The American Dream” of owning a home really hasn’t changed. Only the timeline people allow themselves to achieve it. What I discover is the biggest hurdle for many – especially first-time buyers – is getting past the mental block of thinking it’s simply not possible. But as a mortgage broker, I know that’s not the case. In fact, now could be the best time ever to buy.” Those might be surprising statements to some, but the truth is, Rick Piette – owner of Las Vegas-based Premier Mortgage Lending – comes across some version of this misconception every day. When he does, he and his experienced Loan Officers help their clients discover that today’s extraordinary opportunities can make owning a home a reality.

“People place limits on their homebuying ability that’s been based on outdated information,” he explains. “The past few years have given us a lot of negative headlines about the housing crash and The Great Recession because ‘bad news’ always grabs the headlines. Good news doesn’t get nearly as much press coverage. As a result, many don’t realize that the circumstances for buying a home have changed in their favor – immensely.

“What we’ve found is that many buyers have three common roadblocks they think they face, all of which couldn’t be further from the truth.

“Myth #1: It’s almost impossible to obtain a mortgage loan. Not today. Actually, more mortgage loans are being approved today than during any period in recent history. Certainly, after the housing crash, mortgage loans were infamously harder to get. But we’ve moved beyond that crisis and economic circumstances have changed considerably. Every year, more mortgage lenders loosen those previously tightened lending restrictions. Also, enough time has passed for individual credit scores to be on the rise with employment and financial stability to sustain them.

“Myth #2: Loans are too expensive. At Premier Mortgage, we can assure you that’s definitely not the truth. As a Mortgage Broker, our true “No Fee Loans” charge none of the ‘junk fees’ that banks and mortgage bankers do – and that means savings to borrowers of literally thousands of dollars.

“But fees are only half of the equation – the other half is the interest rate – and today’s buyers win on that score, too. According to a November 2016 CNBC story, interest rates have never been this low for this long in the history of our country. Since 2011, the average 30-year loan rate has been below 5%, frequently dropping below 4%. And keep in mind, these are fixed-rate loans – not Adjustable Rate Mortgages. Basically, today’s buyers can get better interest rates to buy a home than their parents – or even their grandparents – ever did.

“Myth #3: Buying a home is a bad investment. As with any industry, real estate will fluctuate over time. But if there’s one thing that is never going to change, it’s that people and families need a place to live. That’s even more important when you think beyond your own situation and take into account the needs of upcoming generations.

“For example, a recent study reveals that as of early 2017, as many as 34 million renters aged 25-44 were now credit-eligible to get a mortgage loan. That’s a huge number. Especially since as of the end of May, the total inventory of existing homes for sale in the U.S. was only 1.96 million.

“One other important detail about mortgage loans – and this is no myth – is that borrowers who take a little extra to shop around for the best deal can save even more of their hard-earned money. Unfortunately, many homebuyers don’t take this step because they’ve relied on someone else’s advice about their loan.

“When homebuyers turn their choice of lender over to the decision of their Realtor® or home builder, they’re handing their financial future over to someone who has no vested interest in the outcome,” Piette explains. “Think about it: Who’s going to be paying that mortgage each month? Certainly not them. Also, unknown to you – they may have financial incentives to steer you to a particular lender, which can put money in their pocket by taking it (in)directly out of yours.”

That’s a regret the Premier Mortgage Lending team wants to help borrowers avoid. “We advise our clients to keep in mind that above all, this is a business transaction. Be smart, take an extra hour of your time to get a Loan Estimate from at least two lenders, compare the interest rates and the loan fees – and the decision comes down to your dollars and cents.

“The interest rate and the fees are the only two things that really matter when it comes to the cost of your loan,” Piette explains. “They allow you to compare the numbers as “apples-to-apples” between lenders to see exactly how much you’ll be paying. Once you know that, you’re equipped to make the best choice for you. And if your Realtor® or builder disagrees with your decision, maybe you should ask them to explain why you should pay more for your mortgage loan than you need to?”

To learn more about the wide range of loan programs available today – from “No Fee” to “1% Down” and more, visit www.PremierMortgageLending.com, or call (702) 485-6600 to schedule an appointment.

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.

Trends Converge Illustrating Home Ownership Is On The Rise

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It’s not uncommon to find conflicting stories about current trends in the U.S. that pertain to the status quo of home ownership. Since the housing market collapse in 2008, it’s as if everyone suddenly acquired their own ‘crystal ball’ – claiming to know when, or how or where to make your next move into real estate.

But now, enough time has passed to allow us to view things in perspective. Actual data replaces “best guesses” and reveals real economic, geographic, and demographic statistics as they affect (and reflect) the state of the U.S. housing market. Plus, studies conducted by industry leaders have been implemented and tracked over time to help us determine how best to serve the homebuyers of the future.

Right now, there are several trends that indicate our industry is on the verge of a new upswing, for several different reasons.

Home Sales in 2015 Expected To Be At Highest Point Since 2006 This growth projection by the National Association of Realtors is driven by the combination of strong job growth, low interest rates and a gradual loosening of lending standards. Early results this year indicate that buyers who have been kept out of the market by those restrictions are beginning to return, and it is anticipated that 2015 will be the first time since 2008 that single-family home starts will exceed apartment starts.

Did you know? In most markets, the cost of renting is roughly twice the cost of owning a home. In reality – people have to live somewhere – whether they own their residence or not. And many are now realizing that it just makes more financial sense to buy than to keep renting.

The Future Plans For Most Millennials Include Home Ownership. Millennials, or “Generation Y” – whatever the popular term you use to describe them (maybe it’s even “son” or “daughter” in your case), they’re big numbers in our society. Approximately 80 million in the U.S. alone meet this demographic description, generally acknowledged to be those between 19-36 years of age today. And according to a recent study by the Urban Land Institute, this group is poised to begin moving into the home buyer’s market in droves – an estimated 70% are planning to do so within the next 5 years. And that’s a whole bunch of first-time homebuyers entering the marketplace.

Department of Commerce data shows that in 2014, more millennials moved from the city to the suburbs, a significant change for a trend that has historically operated in reverse. And this is a generation that faced a host of new challenges: mounting student debt, stricter mortgage qualification standards, and until the past year, weak job and wage growth. It’s becoming clear that these hurdles may delay the step, but ultimately, they want to own homes of their own for reasons that will sound very familiar: marriage, starting families of their own, or even simply this: “I want a yard.”

Financial Regulations Continue To Evolve In Favor of Consumers. As we have reported before, the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act has brought sweeping changes to the home mortgage industry – and additional regulations continue to go into effect as the calendar progresses. In addition to laws that now limit the fees able to be collected from buyers by mortgage brokers (although the same does not apply to banks or mortgage bankers) – this fall is scheduled to see new rules go into in effect with regard to documentation, Good Faith Estimates, and advance disclosures prior to close of escrow regarding your mortgage loan’s terms (translation: No more surprises for consumers.)

Buyers Have More – and More Affordable Options – For Home Mortgages. Gone are the days when banks and mortgage bankers held all the cards for buyers when it came to obtaining a home loan. In the lending industry – as in every other area of consumer spending today – buyers are more in control of their mortgage destiny than ever before. Shopping for the best interest rates and the lowest costs for a new loan can yield tremendous savings for home buyers that still comes as a shock to many (the ones that are used to ‘the old ways’). One example: Premier Mortgage’s clients literally save thousands of dollars in cash-out-of-pocket at close of escrow using our popular “No Fee Loans.” “The ability for consumers to close a home loan and pay absolutely no lender fees is a huge plus for homebuyers,” says Rick Piette, owner of Premier Mortgage Lending.

These are just a few of the recent reports hitting the newsstands these days, and taken collectively, it all points to the fact that for consumers, the “home buying playing field” is finally leveling off. That just might make now the best time in a long time to plan on moving into a home of your own.

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.

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.