fairwaymidatlantic

Q1 Recap

Wed, 12 Apr 2023 19:34:36 GMT

We've begun to see signs that the Spring Market is here and could be robust! Here is what we know:

According to NAR, home sales were up 14% in February over the previous month which marked the biggest monthly increase since July 2020. While March results are not yet published, the mortgage industry saw an increase in purchase applications for the 3rd straight month; a great sign for the housing market.

Driving much of this activity is the stabilization of rates in January & February and lower interest rates this past month. We’re starting to see signs of a slowing economy and the markets are now pricing this in. This week we saw the 10-yr Treasury drop under 3.4%, a level it has not reached for quite some time and the lowest it’s been since September 9, 2022. This is great news for consumers as decreasing rates mean more home affordability.

Over the past year, most markets have seen home prices stabilize if not even decline, albeit by a very small amount. This stabilization was still a relief for homebuyers as it helped to offset higher interest rates. As rates continue to decrease, we would expect home prices to again increase due to demand increases. In addition to increased demand, there is still a shortage of homes for sale nationwide and that will continue to worsen as more and more homebuyers enter the market.

So what does it all mean? Now is a GREAT time to buy a home! Rates and home prices are stable, there is not as much competition as there will be when rates do decrease, and buying a home is still extremely affordable for most. Once rates fall, we will likely see home prices rise and the competition for the shortage of homes will increase alongside it making the window of a buyer-dominated market very small.

Q1 2023 Market Outlook

sarah.rubin@fairwaymc.com (Sarah Rubin) — Fri, 10 Feb 2023 15:04:38 GMT

We are well into Q1 and feel confident saying that the market appears to be stabilizing. Before we start looking forward, let’s quickly look back at the end of 2022.

A Look Back

Consumer spending has finally started to slow and existing home sales ended 2022 at their slowest pace since 2010. It appears that the rest of the economy is starting to feel the effects of the Fed’s monetary tightening that the housing market has felt for the last year.

Where We Are Today

Now let’s look to today’s current market. As the expected end of the Fed’s tightening cycle draws near, interest rates are beginning to stabilize. Expectedly, the decrease in volatility seems to be improving the housing market. Over the last 30 days, the 30-year fixed rate has improved nearly 20 basis points and mortgage applications have increased nearly 25%. The combination of these two things are indicative of the start of a spring market.

If you are thinking about buying, doing so now puts you in a unique position. While the market is heating up and we are seeing the the beginning of a shift back to a seller's market, right now you as a buyer, still have the upper hand; but we don't expect that to last long. Without a drastic increase in inventory, in our metropolitan markets, we are beginning to see fewer seller concessions in comparison with the end of 2022, more multiple-offers and even escalation clauses. We anticipate that we will see this trend move outside of the cities as we get into the spring.

While this is not an exact science and we cannot guarantee anything, these factors are typically signs that the market is turning in a favorable direction.

Finding The Right Listing Agent For You

sarah.rubin@fairwaymc.com (Sarah Rubin) — Thu, 15 Dec 2022 15:13:17 GMT

Buying a home is a huge investment and one we talk about often - BUT the flipside is that you have an opportunity to cash in on that investment when you’re ready to sell your home! While you do have the chance to cash-in, a lot more work goes into selling a home than you might think! If you are considering selling your home, working with a listing agent will help you market your home, negotiate with potential buyers, work through paperwork, and ultimately close on your home!

So what is a listing agent?

In its most basic terms, a listing agent is a real estate professional who represents the seller in a real estate transaction. The listing agent lists the home for sale and works on behalf of the seller to sell the home at the best price and terms for their client.

Listing your home is a BIG deal and it is not a place to try and DIY. But why can’t you just grab a sign at Home Depot and try and sell yourself? Well, there are lots of reasons some of which include:

Professional consultation: A listing agent will walk you through each step and tell you what to expect along the way! They should understand the specific community you’re in and the current market environment and will help you determine a competitive but realistic asking price for your home.

Marketing and selling your home: Your listing agent will list your home on the multiple listing service (MLS) in order to better market your home to potential buyers. They also can make staging recommendations and hire a photographer to best show off your home and its features. They’ll schedule house showings, and can be present to answer any questions.

Communication and negotiation: Communication is key to both buying and selling a home in order to minimize stress and misunderstandings. Listing agents take care of this important task, by staying in touch with interested buyers and their agents, fielding questions, handling paperwork, and negotiating the final sale price and terms.

Recommendations: Seasoned listing agents might come with a list of professionals who they have worked with in the past that they enjoy working with in order to make the selling process smoother for you! Some of these professionals include: real estate attorneys or title companies, inspectors, stagers, those who specialize in home improvement AND of course trusted Loan Officers.

How do I find the right listing agent for my situation?

In order to find the right listing agent for you, make sure your agent is licensed and has experience, references, and a professional website where you can learn more about them and their qualifications. Most real estate agents work with both buyers and sellers, but some might specialize in one or the other.

Once you find a few agents through referrals or online research, meet with them in person to ensure they meet your needs and work well with your personality. It is also important to ask questions during your meeting with them and it’s imperative that you determine what you’re looking for in an agent so you make sure you are happy with the product being delivered.

Selling a home can be stressful, especially for first-time sellers. A listing agent can help by taking on some of the burden and providing the information and resources needed to help sellers make informed decisions.

We work with agents on both sides of the transaction – if you have any questions or would like a recommendation for an agent in your area, please reach out to us!

First Time Homebuyer Programs - What's Right For You?

sarah.rubin@fairwaymc.com (Sarah Rubin) — Tue, 29 Nov 2022 13:00:07 GMT

So, you’re a first time homebuyer wondering what mortgage loan products are out there for you. We’re here to give you an overview of these products and make it easier to determine which one is right for you!

There are various products available and specified for first-time homebuyers (FTHB), but why and do you have to use them? FTHB programs can provide for lower down payment options and less restrictive credit guidelines for those buyers that qualify, therefore making it easier to qualify and afford your first home. It is important to note that while these products are designed for first-time homebuyers some do have income limitations and therefore not all will be able to utilize these options. It’s also important to note that a first-time homebuyer is defined as somebody who has not owned property in three years. So if you owned a house six years ago and have been renting since you sold it, you are now considered a first-time homebuyer again and may be able to utilize these options.

Both Fannie Mae and Freddie Mac, the agencies that purchase conventional mortgages, have first-time homebuyer programs that allow for as little as a 3% down payment if the borrower is a first-time homebuyer and under the area median income limits established by the County. These programs typically have a lower rate and reduced mortgage insurance.

Additionally, both also have a first-time homebuyer program that allows for a 3% down payment but the borrower or borrowers do not have to meet the area median income limitations. The difference however is that these programs do not offer the reduced interest rate or mortgage insurance.

Additionally, there are state/local bond programs, which vary by state, that typically offer closing cost and down payment assistance.

So, who are these programs best for? They are obviously best for first-time home buyers BUT does that mean all first-time homebuyers? Not necessarily, they are best for those with limited cash assets who realize the importance of homeownership as a tool for building generational wealth!

If you are ready to start the home buying process or want to learn more about these programs or the slew of additional home buying programs and tools available, let’s chat!

Buying vs. Building Your New Home

sarah.rubin@fairwaymc.com (Sarah Rubin) — Tue, 01 Nov 2022 12:00:15 GMT

Buy or build?

A competitive housing market often lends itself to the thought - should I build a home instead of fighting for an existing one? While the question is completely understandable there are numerous factors you need to take into consideration when deciding to buy or build and we’re here to help work through the list of pros and cons on both sides!

If you’re thinking of buying vs. building...

One pro of buying an existing home is that if you’re trying to move quickly, buying an existing home means you can settle down much faster. Building a new home or buying a fixer-upper requires a lot more waiting, as construction takes time!

Also, it is generally less costly to buy an existing home, but that also depends on the market at the time of purchase. A home loan is less risky than a land loan, so a home loan usually comes with a lower down payment and a better interest rate!

If you’re interested in buying in an already developed area like a city center or established suburban neighborhood,, it might be hard to find a lot to build on, as most have already been turned into homes meaning that buying an existing home can better place you in the location you want. Once you buy, you can make your own updates and upgrades to your home when timing and resources allow!

Of course, there are some cons to buying an existing home as well. One is the stress that comes with home buying. Searching for the right home takes time, and right now, buyers are facing high prices and bidding wars for the properties that are currently available on the market. Working with a real estate agent you trust will make the process less stressful and easier for you!

Also, finding the perfect home that already fits your aesthetic or design wants can be tough. You will most likely have to compromise in one area or another if buying an existing home.

Additionally, with older homes comes more maintenance, and you might run into those issues sooner rather than later if you buy. A solution to this can be a home warranty so you can budget for those repairs.

If you’re thinking of building vs. buying an existing home...

Building a home from the foundation up gives you more control over the final product.If you have a dream floor plan or kitchen in mind, then building a home will give you the control you are looking for. You get to work with the builder to make the design decisions (within reason) when you build!

Once you've found and purchased the perfect piece of land, you no longer have to worry about competing with other buyers. But the next step of actually building adds another level of competition --construction. Your builder will be competing against other builders for limited construction supplies and labor in the current market which can result in completion date delays and inability to secure your preferred material like the hardwood floors or the kitchen appliances you've been planning on.

Less maintenance can be another perk of building, as new construction and appliances will come with warranties and guarantees. You also won’t have to worry about harmful materials like asbestos or lead paint in a new build.

One con of building is that it is more expensive to finance due to the lack of collateral. Land loans can be harder to obtain, and often come with higher down payments and interest rates. Buying in a development that is being built already can prove to be a workaround as things like extended rate lock programs exist for situations like this. Lock in your loan now but wait until the home is built to close.

Also, while you might receive an estimate of the total costs, it is common for unexpected costs to come up throughout the project. Recent studies show that the average new construction project goes over budget by at least 16% – that is a significant amount when we are talking about home costs! You will want to take that into account when determining what you can afford in a new build home.

Building a home also takes much longer than just buying a home that is already built. With the supply chain issues, labor shortage, and unpredictability of the construction industry, it is hard to know just how much someone will be affected by delays which can be a deal breaker for someone on a timeline.

It might be more stressful, but in the end, you will have your dream home. It also takes more effort and is much more hands-on, as you will have to work with a variety of people to create your dream home.

To Summarize

The bottom line is, the decision can be tricky. There may not be a right or wrong answer! Since both options have many pros and cons, it comes down to your own unique situation.

Saving For a Home vs. Paying Off Debit

sarah.rubin@fairwaymc.com (Sarah Rubin) — Tue, 04 Oct 2022 13:00:03 GMT

With all the talk about the housing market and constantly changing mortgage interest rates, a common question potential homebuyers have is: Does it make sense to buy right now? Should I be saving for a house or paying off my credit card debt, student loans or any other consumer debt? We are here to answer these questions!

When it comes to buying a house, paying down what we call consumer debt should always be a priority for several reasons. First, your credit scores are weighted heavily on credit utilization. If you are using more than 30% of your credit limits, your credit scores will be negatively impacted; more than 50% utilization has an even greater negative effect. Also, credit card debt tends to have higher interest rates, so you do not want to put it off for long. Paying off your minimum payment is a must monthly BUT paying off as much debt as you can will go a long way in helping you increase your credit score.

As for student loan debt, it is certainly something you want to pay off, but it is not as important as credit card debt for the following reasons: typically, it has a lower interest rate, lower payments, and also has fixed payments that have a definitive end date or term.

The most important thing to understand is that the better your credit score, the more favorable your final mortgage loan may be. Lenders operate on risk and evaluate your reliability as a borrower based on your entire credit picture.

Saving for a home is also very important, but it is important to note that you may not need as much money saved for a down payment as you think- first-time homebuyers can finance up to 97% in many cases and sometimes, even more than that!

While your preconceived notions of how much you’ll be paying for a downpayment can be lessened, it is still no small amount of money. Closing costs can range anywhere between 3-6% of the final loan amount. Add that with your downpayment and you can expect to pay thousands of dollars up front to buy your home.

The bottom line is- you do not have to pay off all of your debt to qualify for a home and you can save money for a down payment and reduce your debt while increasing your credit scores at the same time!

So what’s the best option? The honest truth is there is no correct answer. Buying a home is an extremely personal (and large) decision to make. If you’re considering paying off your loans or buying a home, one of the most important questions you can ask yourself is “what are my goals for the future and which path makes the most sense to get me there?”

Paying off debt can be a daunting undertaking depending on your specific situation. Should you decide to buy a home, you must understand that you are adding a huge chunk of financial responsibility to your plate. On the other hand, buying a home adds a list of many other responsibilities you may have never thought of before.

It’s also important to understand the benefits of both options. Paying off debt can lift a pressure off your shoulders you may not have even known was there, and give you a real sense of financial freedom. On the other hand, buying a home is one of the largest financial decisions you will make and is an accomplishment to feel proud about. In addition to that, becoming a homeowner helps you build equity that can be used for various things down the line.

The answer again, isn’t so black and white.

If you are ready to start the home buying process or want to learn more, let’s talk!

Mortgage Interest Rates: Some Perspective

sarah.rubin@fairwaymc.com (Sarah Rubin) — Mon, 19 Sep 2022 17:24:27 GMT

While we all have heard about the rising mortgage rates this year, what does that actually look like for your mortgage and monthly payments? We’re here to break that down for you!

We understand the nerves and potential anxiety around a rising interest rate environment. Over the past two years interest rates, as you likely know, have been historically low. But why? The answer is due to economic uncertainty driven by COVID-19. When talking about rates today, it is important to look at the rate landscape over a longer period of time and understand that the rates we are currently seeing are still incredibly low from that perspective.

While yes, rates have been on the rise over the last 90 days or so, they are expected to settle down and level out. That does not mean that they are going to drop, but it does mean that we are expecting things to steady out and remain relatively level.

When you think about the cost of waiting, remind yourself that making the decision to purchase a home should never be based on what the rates are doing, but rather about being able to afford the home in terms of a monthly payment. You can head to our latest housing market update for a breakdown of today’s market and the cost of waiting (hint: it could be the difference of a couple hundred dollars…monthly)

Rates are cyclical, and while they have been rising as of late, as mentioned above they are still low from a historic perspective. In the 2000s the average interest rate was 6.29%. At some point in the future (no, I can’t tell you exactly when), we will likely see lower rates that will give homeowners the ability to refinance into a lower rate and payment.

When starting the home buying process, it’s important to consider several loan programs to find the best solution for you. Again, the most important thing is to ensure no matter what solution you opt for you are able to afford the home you’re buying. No two situations are the same and there are tons of loan products and programs designed to help you reach homeownership in your specific situation.

From an investment standpoint, now is a great time to buy! Rates are historically low and home appreciation is at an all time high. While the rate of inflation may slow, your home will still appreciate in value. Experts are predicting the rate of appreciation to slow to about 4-5% this year compared to 20% last year. That should make you feel more confident, as that is a far more sustainable rate of appreciation making homeownership still the best investment around!

Is Buying A Home (Still) Affordable

sarah.rubin@fairwaymc.com (Sarah Rubin) — Fri, 02 Sep 2022 15:37:30 GMT

Is buying a home (still) affordable? This is an important question to ask yourself when you are starting to weigh the pros and cons of buying vs. renting in today’s market.

What makes this more complicated is that due to inflation, both rent prices and home prices are rising. So, which is ultimately more affordable, renting or buying?

The answer is buying, but the gap in affordability is admittedly shrinking fast.

Much of this affordability is due to the historically low mortgage rates of the past few years. Rates are now beginning to rise, however, and are up more than half a percentage point from the year-earlier period. A higher rate could be the difference of hundreds of dollars in your monthly payment, and that’s where affordability comes in.

On the flip side, renting isn’t getting cheaper either. In 2019, the average increase in rent was about 2% (and that’s just the average!). Renter’s are finding it harder and harder to maintain their lifestyle as rent continues to hike up in every corner of the country.

Also, when buying a home, you are not just putting money towards a place to live, but it is also an investment. Building your personal wealth through home equity is a great start! We have a whole video about home equity and how you can use it that we’ll link here, but home equity is a great financial tool to use in the future for other investments or decisions.

The issue now for potential buyers, especially first time home buyer, is that it is becoming increasingly difficult to save up and budget for a down payment. On average, home buyers today pay around 6% on a downpayment. If you’re buying a $500,000 house, that amounts to $30,000. Even if you opted for a loan option that allowed for a 3% down payment, that still comes to $15,000. That’s a big chunk of change to save up, especially as prices continue to rise and the market stays hot.

Budgeting is key to working towards that down payment, but it can be tough in today’s market. Here at Fairway, we want to help you achieve the home of your dreams, and we can work with you in order to find a price range and down payment amount that works for you!

Back to Basics

Mon, 15 Aug 2022 18:08:21 GMT

In today’s crazy market, we have to take a step back and really think about going back to basics! In order to best help homebuyers, we must focus on the basics in the market. We need a market correction now more than ever, so instead of dwelling on the past and thinking about how things were last year, we must think ahead and start back with the basics!

So what “basics” do we mean?

For starters, we have to educate our buyers on the homebuying process! Whether they are a first time homebuyer or not, things are always changing in this market. We have to make sure our buyers are on the same page as us, and keep them updated and informed.

Also, we need to prioritize working closely with local lenders. By strengthening these relationships now, it will pay off in time. Lenders and realtors go hand in hand, and working together will make your buyer feel much more comfortable as it will be a group effort.

Marketing is also extremely important now more than ever. To get yourself out there, you have to think about the target demographics you are looking for. Younger homebuyers want to see you build up a successful social media profile. Demographics have not changed, even though the market has.

If you focus on working hard, getting yourself out there, and going back to basics, you will not only be helping out homebuyers, but also yourself!!

If you want to learn more or have some thoughts to share, feel free to contact us today!

Is Buying a Home Still Affordable?

sarah.rubin@fairwaymc.com (Sarah Rubin) — Wed, 03 Aug 2022 14:04:43 GMT

Is buying a home still affordable? This is an important question to ask yourself when you are starting to weigh the pros and cons of buying vs. renting in today’s market.

What makes this more complicated is that due to inflation, both rent prices and home prices are rising. So, which is ultimately more affordable, renting or buying?

The answer is buying, but the gap in affordability is shrinking fast.

Housing Market Update: Q2 2022

Wed, 06 Jul 2022 19:16:28 GMT

Q2 is coming to a close and this year has proven to be unpredictable in terms of the housing market. As we round out the first half of the year, we wanted to provide you with some additional insight into the housing market and reassure you that we will get through the volatility together.

Consumer sentiment MUST be our focus. As previously noted, the biggest generation in the history of first-time homebuyers is entering the market, meaning demand is only going to remain strong for the next decade. Being able to motivate homebuyers to buy is a must, and not allowing them to be scared off by negative housing news is essential. Sharing informed housing outlooks and data will help to continue motivating our potential buyers.

It is important to keep perspective and remember that this is a market correction, not a crash, and it is needed as the last few years have been driven by a pandemic. While we knew it was coming, the shift requires us all to refocus and get back to basics.

There is a lot of equity available to homeowners, in fact, according to the Federal Reserve home equity in the U.S. is up to $27.8 trillion. By focusing on this, we can help promote home-selling, therefore increasing inventory. This also allows us to help people tap into their equity to perhaps buy a second home or investment property.

Relocation is at the forefront of the conversation. According to Redfin data, 32% of homebuyers are looking relocate. Additionally, for those who live in urban areas and do not wish to relocate, there is a large opportunity for investment home or second home purchases. Remote work is here to stay and this is a huge opportunity.

This is the 4 ^th best year in the past 15 years for purchases, which means our business is staying strong!

Reach out to one of our loan officers today to start your home buying journey!

Is Spring The Best Time To Buy A House

Wed, 06 Apr 2022 16:00:03 GMT

You may have heard that spring is the best time to buy a house. Despite the warm weather and changes in people's behavior around this time of year, is spring really the best time to buy a house?

There are tons of myths about the home buying process, but one of the most common is that there is a right time to buy or sell your house. As the spring market myth goes, the weather warms up, flowers start blooming, and the school year is wrapping up for students. After the long and cold winter months, buyers and sellers defrost and enter the market with a new vigor ready to pay top dollar for a new home in the warmer months.

Now while some of that may be true, what really determines the best time to buy or sell is the condition of the housing market and you specific situation.

Spring Market 2022

This years spring housing market is going to be hotter than ever. With the combination of low inventory, increasing prices and mortgage rates, as well as increasing demand, buyers and sellers alike may find this market tougher than ever.

As we start to feel more comfortable coming out of our homes after COVID-19, eager home buyers will find historically low inventory to pick from. According to realtor.com, “The number of homes for sale was down 28% in January compared with the same time last year.” As the largest demographic reaches peak home buying age, there just simply aren’t a lot of homes to go around.

Additionally, home prices are continuing to go up despite rising mortgage rates. Buying a house is already one of the largest investments you could make, and with the historically low mortgage rates over the last several years, buyers who waited out COVID-19 are eager to take advantage of the market while they still can. However, because demand is so high and inventory is so low, sellers are still able to price their homes for top dollar and can still expect a couple offers on their home. Rising prices and rates also have forced those younger first time home buyers to continue waiting on their dream of homeownership as it becomes more and more expensive.

While all of this may sound dreary, it’s important to know that these conditions don’t make it impossible to start your home buying journey.

Tips For Home Buyers and Sellers This Spring

Home Buyers: Know how much house you can afford. Before you even start looking at homes, meet with your loan officer and figure out how much you can be pre-approved for. In a competitive market with rising home prices, you want to create a strict home buying budget to ensure you aren’t spending beyond your means or falling in love with a home that isn’t realistic for your specific situation. A pre-approval letter shows sellers you’re a serious and reliable buyer.

Home Sellers: While demand is still high, you may not want to bank on intense bidding wars. It’s important to recognize your position in this market and how to best show up for prospective buyers. Consult with your real estate agent on the best way to price your home in your local market. Your real estate agent will be able to help you decide on the best number that is both fair and competitive. Remember that as a seller, you’ll soon be on the flip side looking to buy!

Home Buyers: Be prepared! Due to the low inventory and heavy competition, homes will continue to fly off the market faster than they come on. Nail down your wants vs. needs list, get your pre-approval, and do your research on the neighborhood/community you want to be living in. It’s also important to ensure you have all the necessary documentation to complete your mortgage application as well as ensuring your savings for the downpayment and closing costs are in check. Having all of these decisions made and done before even starting the process will save you time and an extra headache.

Home Sellers: Be prepared! If you know you are going to be selling your home this year, get ahead of schedule and start your home maintenance and major upgrades now. If you’re looking to finish your basement or upgrade your kitchen before selling, you want to get those projects started as soon as possible as supply chain issues and labor shortages persist. These projects will take more time than you think and could be the reason you miss out on another strong seller’s market.

Whether you’re looking to buy a new home or sell your existing home this spring, the most important thing to remember is that you should do it all in your own time. Consider all aspects of your specific situation as well as your local housing market to make an informed decision about the best time for you to move forward.

Home Buying Process: Green Flags

Thu, 03 Mar 2022 17:02:38 GMT

Making the decision to buy a new home is both extremely exciting and intimidating. The process can be hard to navigate at times for those who don’t know what to expect, but by looking out for these green flags, it will make things much easier in the long run!

It is important to take note of these green flags, so that you can work with the right people to make the process as smooth as possible.

Speed to Respond: Within the home buying process, communication is key to a successful sale. With so many moving parts, it is both your real estate agent’s and mortgage lender’s job to communicate with you as efficiently as possible. Not only is a quick response appreciated on both ends, it also helps prevent you having to extend your timeline due to a lack of communication.

When putting together your team of home buying professionals, make sure to note their response time. Your dream home today might not be available tomorrow, so quick and consistent communication is crucial!

Finding Both a Realtor and Loan Officer: In order to make sure you can find the home that is right for you, it is important to find both a realtor and a loan officer to help you through the process. Using both makes the process much easier!

A good realtor often will have market knowledge, technology that makes the process easier and a strong understanding of what the current home buying market looks like and what it takes to win. The realtor is there for you to help represent you to potential sellers and ask the important questions.

Additionally, they will often have recommendations for loan officers they trust and have worked with in the past should you need some help finding one. By utilizing a loan officer, you can become pre-approved before you even look for a house and have a solid understanding of your financial picture so that you feel ready to tackle the process. A Loan Officer should always be looking at your specific situation and providing you with options in terms of loan products and programs to help you figure out what makes the most sense for you financially in the present and for your long-term goals. Just like your real estate agent, your loan officer should understand your market and the mortgage and real estate environment so that you have a competitive offer when you find your new home.

Abundance of Photos: Now more than ever, it has become common to virtually “tour” homes before going to visit them in person. When looking at a 3D tour or on a home search website, being able to see as many photos as possible makes things much easier. More photos usually equates to a better quality interior, and it is important to consider all aspects before buying your home.

A Well Maintained Home: When it comes time to start looking at homes in person, the little details truly matter. Things such as the outside landscaping, paint jobs, and flooring make all the difference when thinking about the overall health of the house. While every detail might not be perfect, the less work you have to do, the better.

If something during a home tour concerns you, your real estate agent can help you get a home inspection done to further reveal if there are any larger issues at hand.

Honest Rates: Given that today’s market is so competitive, you may see when looking for a mortgage lender that many are offering the lowest rates possible. These rates look too good to be true, and they usually are.

When finding a lender, you want someone who gives you an honest rate that is still reasonable. Receiving an itemization sheet to see what exactly you are paying your lender is a good sign that they are not trying to add on extra fees or leave out important details.

These are some of the green flags that are important to keep in mind when you are going through the home buying process. Remember, while this process can be overwhelming, your real estate agent and mortgage lender should be the industry experts guiding you through each step of the process. These green flags are a good way to know that you’re on track to successfully buying a home!

How Credit Affects The Home Buying Process

Wed, 16 Feb 2022 17:00:03 GMT

One of the questions we hear often is how does one's credit score affect the home buying process. It’s no secret that credit and your credit score play a large role in buying a house, but what exactly does it affect, how does it impact your loan product options, and what, if anything, can you do to improve it?

When thinking about getting approved for a mortgage, it’s important to understand that your lender is evaluating your ability, your stability and willingness to repay the money they lend you. Your credit score tells lenders just how likely you are to pay your mortgage on time every month. Understanding what impacts your credit score is an important first step in understanding how it plays into the mortgage process.

What Impacts a Credit Score?

Several factors play into the makeup of your credit score. This includes your payment history, the length of your credit history, the amount you owe, your mix of credit in use, and new credit. Because your credit score is made up of many components, it can also be affected by many components.

Things that can negatively impact your credit score include:

Late payments. Late payments in general, as well as those that lead to charge-off’s and collection accounts, negatively impact your credit score.
High credit utilization. This means that you are typically using over 50% of your available credit.
Numerous credit inquiries in a short time period of time can have a negative impact on your credit as well. Don’t worry, pulling your credit at pre-approval and at the start of the application won’t drastically hurt your score and, re-pulling it should have no noticeable impact.
Too much – or too little – credit can also have a negative impact. You need a credit history to qualify for a mortgage, but you also don’t want to open lines of credit for no reason.

Now that you understand what might negative impact your credit score, here are some useful credit-related tips to help you prepare for the home loan application process:

Pay debts on time every month and avoid making late payments of 30 days or greater because they will adversely impact credit.
Be careful not to overuse credit cards. Pay off as much of your balance monthly as possible, not just the minimum payment due.
Avoid closing accounts with zero balances. It’s best to leave them open until they automatically drop off of your credit report.
If there are outstanding collections, it’s best to work out a repayment plan with the collection agency and only agree to make payment in full if the collection agency agrees to delete the collection account upon their receipt of the full balance.

How Your Credit Score Affects Your Mortgage Package

Lenders often operate on risk-based pricing. This means that they will consider every risk associated with your financial picture to determine your mortgage rate. The difference between a “poor” and a “good” credit score could mean tens of thousands of dollars in savings over the life of your home loan.

It’s important to recognize that we don’t have one credit score. We actually have three, and each one is considered by your lender when applying for a mortgage. Your lender will consider your median credit score, your credit history, debt to income ratio, and other parts of your entire financial picture to decide your final mortgage rate.

One last thing to recognize is that there are credit requirements for every mortgage product . Each loan product is designed to help those in specific situations achieve homeownership and therefore vary in requirements and guidelines for qualification. Your lender will work with you to find the best loan product for you and your specific situation.

Credit is a tricky part of the home buying process, but the good thing is that it is the job of your loan officer to help you understand your financial picture, how it affects your home buying process, and even help guide you to the right resources should you need help improving your credit score to purchase a home.

If you are struggling with your credit, we have a network of credit counselors that are happy to help you determine how to pay off debts and will give specific instructions to help you improve your credit score. Contact one of our loan officers today and start your home buying process.

2022 Housing Market Update

Wed, 19 Jan 2022 17:00:03 GMT

As we ring in 2022, make all the resolutions and think and hope and plan about what the new year has in store, it’s important to have an updated outlook into the future of the housing market for the year ahead!

2021 was another eventful year bringing consistently low rates, a competitive seller's market, and countless opportunities for homebuyers and homeowners alike. 2022 is shaping up to be another year full of opportunity, but here are some key things to keep your eye out for.

Strong Purchase Market

In 2020 and 2021 the market saw an increase in refinances due to rates hitting historic lows over and over again. This means that people with existing mortgages had the opportunity to take equity out of their homes or save money by taking advantage of rates lower than what they currently had.

As we enter 2022, there will be a shift from refinances to purchases. This isn’t to say that all refinances will go away, but the mortgage market will be dominated by people buying new homes. According to the market forecast from Mortgage Bankers Association, or the MBA, 2022 is projected to be the largest year for Home Purchases on record. This applies to both New Construction and Existing Home Sales. The Projections are that there will be nearly $1.8 billion dollars in Purchase Originations in 2022, which is roughly 8 percent higher than 2021 and 16 percent higher than 2020. Additionally, according to the US Census, more first-time homebuyers will be entering the market in 2022 than ever before, meaning demand will remain high.

Home Prices

It’s incredibly important to note that we are not in a housing bubble in which home values are expected to decline. Again, we are NOT expecting home values to decline in 2022. While according to realtor.com, home prices have soared into the near 20% range nationally over the last 12 months, this is not artificial inflation. While the MBA does expect the rates of inflation to stabilize closer to the 5-6 percent range there is no sign or prediction of declining home values in 2022.

Mortgage Interest Rates

Based on recent Fed decisions to taper their Bond/Treasury purchases and projections on inflation, we should expect to see rates rise above their current levels. Before you get nervous, rates are still expected to remain low. While we ended 2021 with a 30-yr fixed rate close to 3%, the MBA expects to see rates rise to closer to 4 percent by the end of 2022. 4% is unlikely and should not deter home buyers from purchasing homes as it is still an incredibly low rate when looking at it through a historic lens.

Additionally, it’s not predicted that rates will drop to 2020 or 2021 rates in the near future so there is still a cost to waiting due to and not taking advantage of 2022 market rates.

2022 & Beyond

The MBA is forecasting that we see rates stabilize in the low 4% range. Again, these rates are still historic lows and should encourage new home purchases well into the future. Purchase originations are projected to continue to rise and hit somewhere around the $1.83B range in 2023, which would be a 6% increase over 2022 AND the largest Purchase Market on record.

As mentioned earlier, we are expecting to see more and more first-time home buyers enter the market. According to the US Census, the average age of the first-time Homebuyer is 33, and the number of people turning 33 will be over 4million annually for the next 10 years. All of these factors – rising interest rates, home appreciation, strong demand, and limited supply – will continue to drive a strong Purchase Market for the foreseeable future.

How To Prepare For Homeownership In 2022

Thu, 23 Dec 2021 13:32:27 GMT

As we gear up for the new year, you’re liking creating a list of new goals you want to achieve. While things like working on making healthy choices or advancing in your career are great goals, a big one you may be considering is achieving homeownership. If you are dreaming of a place to call your own, instead of putting it on a list and wishing for it to come true, you can create an actionable plan to turn that goal into reality.

Homeownership is a part of the American dream right? You imagine your dream home filled with your family and loved ones decorated in all the things you have saved on your Pinterest board. But buying a home is also one of the largest investments you could make in your lifetime. For that reason, it’s important to put a plan behind your dreaming that accounts for everything from the perfect location to your financial situation.

What Are You Looking For?

The first thing to define is exactly what you’re looking for in a home. Whether this will be your first time buying a house or you’re looking to upgrade your current home, getting clear about what you want and need is the perfect place to start.

Consider things like location, type of home, community, and lifestyle when making your list of wants and needs in your new space. Where you live is super important as you will likely stay in this home for a long time (the average home buyer stays in their home for at least 10 years!) This means factoring in where you work, where your children will go to school, community organizations you want to be a part of, and proximity to amenities, urban centers, and especially your extended family.

Make a list of your non-negotiable's (i.e. number of bedrooms, yard space, price) and the things you can compromise on (i.e. finishings, neighborhoods, floor plans). This list will give you a base for what you’re looking for and help narrow down your home search once you start the process.

Asses Your Finances

A common new years goal is getting your finances in check. While this is a great stand-alone goal, it is also an important part of the home buying process. Looking at your current financial picture as well as your future finances can help you create a realistic budget for buying your home.

When you buy a home, there are a lot of costs to consider. The first is the upfront investment of buying a house. When you buy a home, you will need to pay a downpayment as part of your mortgage process. On average, home buyers will pay a downpayment of around 3-6% of the home price. This is a large sum of money to start saving towards and is usually one of the first steps in achieving the goal of homeownership.

Along with the downpayment, you will be responsible for closing costs when you buy your home. These costs cover the services of things like insurance and taxes, appraisals, and loan origination fees. You can expect to pay around 3-5% of your loan amount in closing costs.

Downpayment and closing costs make up the bulk of the initial home buying investment. The next thing to consider is budgeting for your monthly mortgage payment and regular home maintenance once you become a homeowner. Planning for these costs in your plan can help you better determine your home-buying budget and what makes the most sense for you and your current situation.

Research Agents & Lenders

Buying a home can be a complicated process that you don’t have to do alone. The best advice in finding your real estate agent and a loan officer is to ask family and friends for their referrals. This will give you a list of people you can trust as they are already vetted by the people you know best.

Do your own research too and shop around to find the best matches for you. Your real estate agent and loan officer should be experienced experts in the area you intend to buy your home who will support you through the entire home buying process. It’s important that you choose people you like and trust as they will be handling some of your most personal information during the process and helping you make one of the biggest decisions of your life.

Make Your Home Buying Plan & Go

Once you’ve created your plan to achieve homeownership, it’s time to hit the ground running. Whether your first step is saving for your downpayment or finding your home buying team to get pre-approved, taking the first step is the most important part.

You may have heard there is a perfect season to buy a house, or you should watch the market and wait for the lowest rate, however, this advice may not be the best to take. Buying a home is a personal choice and when you’re ready to take the plunge you’ll know. The best thing you can do is to start now as you will never be able to predict when the exact best time is to buy a house and waiting could mean missing out on your perfect home.

So make your home buying plan and start today. If you’re looking for more advice on where to start with the home buying process or feel like you’re ready to take the first step, contact one of our loan officers today! We are always happy to help you find the best solution for you and your specific situation.

Suburban Living Vs. City Living

Thu, 09 Dec 2021 20:58:38 GMT

Location, Location, Location! You hear this advice all the time when starting the home buying process, but what is the best decision for you and your family? Suburbs and cities are not the same as they used to be, especially after 2020, and considering all the pros and cons of both locations is key in deciding where you want to buy your next home.

As the stereotype goes, cities are grand and exciting places to be filled with endless opportunities and activities to keep you entertained. Suburbs were viewed as slow and even boring due to its assumed isolation from larger urban centers. However, after two years spent at home, opinions are starting to shift.

Price - Before the pandemic, many may have assumed that moving to the suburbs meant more bang for your buck. However, with recent housing market trends, suburbs’ home prices have actually been increasing at a faster rate compared to urban homes. According to realtor.com, “Currently, the median listing price of suburban properties within the 10 largest metros is growing by 5.2% year over year. In urban areas, the growth rate is only 2.4%.”

While you may be able to find more spacious homes that cater to aspects of life such as working from home, working out, and having enough space for the whole family, the price may not always be the bargain you’re looking for.

Lifestyle - There’s no denying that living in a city is different compared to living in the suburbs. When thinking about which may be the best place to buy your new home, it’s important to consider your current and future lifestyle. While right now you enjoy the hustle of city life and enjoy the space for two, in 5 years you may need to slow down or be starting a family and need more room.

This is a bit stereotypical, but it’s definitely important to consider. Think about how you live today; what’s important to you? how do you like to spend your time? what does your financial situation look like? Where do you see yourself in 5 years? What about in 10 years? These questions can help you realize what you love about your life and your living situation, and what you may not be willing to give up.

It’s important to understand that buying a home is the largest investment of your life. Considering all the factors that play into what will make your house a home is crucial in deciding where you’ll be planting your roots. On average, homeowners stay in the homes they buy for around 10.5 years. That’s a long time! Part of your home buying process is setting goals for your life and deciding whether your home purchase will align with those goals, and taking your lifestyle into consideration your lifestyle is a must.

Location - Location Location Location! Because you’ll be investing in a house you’ll be making your home for years to come, you want to make sure you’re exactly where you want to be. Choosing the perfect location for you and your family is crucial, and both cities and suburbs offer up a lot. In the past, it may have been assumed that cities were for the busy, young, and ambitious, while suburbs were for those looking to slow down and start a family. That isn’t the case any longer!

When considering where you’d live to live, it’s important to consider things like community, proximity to amenities, schools, and maybe even your commute to work (although that may not be as large a factor as pre-COVID-19 and the growth of remote working.) It’s also important to consider things like home insurance, HOA fees, and the overall price of living. These financial factors should play a large part in deciding where you’ll buy your next home as they differ greatly depending on where you plant your roots.

Before getting too mixed up in the housing market trends, finding your perfect mortgage product, and even getting pre-approved, you want to have a clear understanding of exactly what you’re looking for in a home. Getting clear about your finances, your current and future lifestyle, and creating your nonnegotiable wants vs. needs list will help make the entire home buying process that much smoother.

Once you have made the decision between city life and suburban living, it’s time to hit the ground running and start your home buying process. If you already know exactly what you want and where you want to go, contact one of our loan officers today to get pre-approved and talk about your specific situation!

Wilmington, DE Market Tour

Wed, 17 Nov 2021 17:01:48 GMT

Being the urban hub of the region and the largest city in the state, Wilmington attracts visitors from all over. It’s a center for innovation and culture with beautiful historic sites, world-class restaurants, museums and tax-free shopping.This city makes for a perfect spot to settle down or enjoy a weekend getaway.

Northwest of Wilmington's central business district lies Trolley Square. This quirky and upbeat neighborhood is a hotspot for millennials and first time homebuyers. Whether you’re eating breadsticks at Piccolina Toscana or enjoying live music at Hummingbird to Mars, there is always something to do.

Taking a step back from the vibrant bar and restaurant scene, is Historic New Castle and Delaware City located on the Delaware river. You can explore the history of the first state at the Old CourtHouse Museum or take a hike on the Jack Markell trail that links the Christina River front to Old New Castle. Not to mention there is a handful of unique restaurants to eat at such as Nora Lee’s French Quarter Bistro, Jessop's Tavern or Snuff Mill Restaurant, Butchery & Wine bar.

Alongside the river is Brandywine park that features monuments, attractions, sports fields and walking paths. In addition, there is the regionally popular and nationally recognized Brandywine Festival of the Arts that takes place the weekend after Labor Day. This event showcases over 200 artists with live performances, kids activities, art-exhibits and local food vendors.

If you’re thinking about moving to Wilmington, DE consider the affordable real estate, favorable tax environment and all the local year round activities!

Red Flags To Look Out For During The Home Buying Process

Thu, 04 Nov 2021 18:33:31 GMT

We all know that the home buying process can be overwhelming to navigate. Aside from the usual stress of finding your new home, communicating with real estate agents and your lender, and making the largest investment of your life, there are a few red flags you should look out for.

Not only do these red flags signal that something could be wrong, but they could also save you from an unnecessarily stressful home buying process. If you’re starting the process of buying a new home, here’s what you should be paying attention to.

Spotty Communication

There are a ton of moving parts in the home buying process. It is your real estate agent’s and mortgage lender’s job to communicate with you throughout the entire process. If you find that either of your home buying experts is inconsistent in their communications, leave out important details, or extend your timeline due to lack of communication, it’s time to reconsider.

Lack of Photos

Today, it is more than common to “tour” a home virtually before actually seeing it in person. New technological advances such as 3D virtual tours and models, virtual broker’s opens, and more make it possible for homebuyers to shop for their new homes online.

This increase in technology can help you sniff out the bad before committing to an in-person tour. If you come across a home listing with little to no interior photos available to browse, you can almost 50% of the time assume that the interior is not great. If you’re truly interested in a listing like this, have your real estate agent contact the seller or listing agent to inquire about more photos to browse.

Home Maintenance Neglect

When you start touring homes, make sure to pay attention to the details. Burnt-out light bulbs, overgrown landscaping, patchy paint jobs, and smaller home details can tell you a lot about the overall health of the house.

If you notice these signs in any of your home tours, be sure to mention it to your real estate agent and be prepared to receive a home inspection that reveals a whole lot more. If the current home seller is unable to keep up with the routine maintenance of the home, there’s no telling whether they have been attentive to larger issues.

DIY Renovations

After 2020 and COVID-19, many homeowners completed DIY home renovations to change up their space. While a vibrant accent wall and new kitchen cabinet hardware may not be something to worry over, bigger projects could be the red flag you’re looking for.

If you notice anything more than the decorative facelift, make sure to take a close look at the handy work. Things like sliding barn doors, custom closets, or new light fixtures should be inspected with a careful eye to ensure nothing seems too out of place. Ask the seller about these home improvements to get a better idea of how they were done and whether they could potentially be harmful to the foundation of the home or become a nightmare problem in the future

Rates Too Good To Be True

In today’s competitive market, you may find that mortgage lenders are trying to find more and more ways to offer the best possible rate to you. If your offered rate seems too good to be true, it probably is.

When shopping around for lenders, remember that the lowest rate isn’t always what it seems. Many lenders will advertise or offer rates made with discount points that lower the rate but are paid for as an upfront fee. This should be clearly outlined in an itemization sheet that lists out exactly what you are going to be paying your lender. If your lender doesn’t disclose this upfront, doesn’t provide the itemization sheet, or continues to add on fees, it may be time to run in the other direction

These are some red flags you should definitely look out for when going through the home buying process. Remember, while this process can be overwhelming, your real estate agent and mortgage lender should be the industry experts guiding you through each step of the process. If you, your agent, or your lender notice any of these red flags during your home buying process, it’s time to change course.

Rehoboth Beach, Delaware Market Tour

Thu, 21 Oct 2021 19:27:44 GMT

With beautiful beaches, fresh seafood, a booming housing market, and so much more, Rehoboth Beach, Delaware is the definition of a quintessential beach town!

Rehoboth Beach is known for its mile-long beach and boardwalk that attracts people from all over the country. As one of the hottest beach destinations on the east coast, the summers are lively and there is always something to do. But fear not, living in Rehoboth Beach year-round provides the perfect mix of local charm and respite.

Rehoboth Beach and the neighboring towns offer numerous places for people looking to make the beach their home.

The Grand at Canal Pointe is a beautifully established residential community that offers luxury single family, townhouses and condos. Another wonderful community located just four miles from the beaches is Bayside. This resort offers a full suite of amenities including an award winning 18-hole golf course, a beach and kayak launch, pools, tennis, volleyball, basketball, and multiple dining options. South Rehoboth is another great spot that has waterfront housing and is only a maximum of three blocks from downtown attractions! On the contrary, the Town of Henlopen located in North Rehoboth offers more of a quaint experience of relaxed beach life.

Dining options are endless and range from fine-dining restaurants such as La Fable to a quick slice of Nicola pizza. Not to mention you can’t miss out on the famous Dolle’s Salt Water Taffy for desert located at the heart of the boardwalk. After you grab dessert, visit Funland for a family fun night filled with carnival games.

Rehoboth embraces a culture of community, acceptance and love which makes it one of the most desirable places to live.

Check it out and let us know what you think!

When Is The Right Time To Refinance Your Home?

Wed, 06 Oct 2021 12:00:10 GMT

Refinancing your home could be the answer to reaching your big goals. When you refinance your home, you could potentially be securing a lower monthly payment, shorter payment term, or even cashing out for other large financial goals. But when is the right time to refinance and how do you know if it’s the best decision for your specific situation?

If you’ve been considering refinancing your home, we have 5 things you should know before starting the process.

Define Why You're Refinancing Your Home

There are many different reasons you may want to refinance your home. From looking for a lower interest rate and monthly mortgage payment to securing a shorter loan payoff term, to cashing in on your home’s equity for other large financial goals. Whatever your reason for refinancing is, you want to make sure you know exactly why you want to start the process before you get started

Timing Is Everything

Remember the process you went through when buying your home? Well, the process of refinancing isn’t too much different. While you obviously do not have to go through the process of finding a new home (Whew!), you should expect to go through a similar documentation and paperwork process with your lender.

First things first, you’ll have to qualify for your new loan agreement. This means preparing things like income documents, bank statements, credit history, taxes, etc. Your lender will walk through the entire process with you to ensure you are qualified for the best possible loan program for your specific situation.

During the process, you’ll also undergo a home appraisal to determine the current value of your home. You may not need to invest in any large renovation but making sure your home is at its best through minor repairs, cleaning, and a boost in curb appeal can make all the difference.

The Benefits of Refinancing

We have briefly mentioned some of the things refinancing your home could help you with but let’s dive a little deeper. Once you’ve decided on your reason for refinancing, you will be able to choose the best path forward to reach that goal and reap the benefits you’re seeking.

Lowering your monthly payment by refinancing to a lower rate could mean an increase in your monthly savings on your home. If you’re aiming for a shorter repayment term, you will find yourself paying less interest over time on your mortgage loan.

Another benefit of refinancing could be the ability to cash out on your home equity. As you pay off your mortgage, you build equity in your home. That equity can be used for other financial goals such as debt repayment, college tuition, other large financial purchases, or even reinvesting in your home with home renovations. This is an option you should discuss in detail with your lender to determine exactly how much equity you have in your home and what the best option for you and your specific situation may be.

Timing Is Everything

If your goal is to lock in a lower interest rate, you’ll want to make sure you’re acting on it when it makes the most sense. Today’s mortgage interest rates have remained steadily low, presenting an incredible opportunity to homeowners. However, these conditions aren’t set in stone.

Connect with your lender to determine what makes the most sense for your specific situation. They will be able to evaluate your entire financial situation, provide insight into the market, and create a plan that works to bring you to your goals.

Understand All Your Options

When refinancing your home, you have a lot of decisions to make. It’s important to understand that you are not confined to your current situation. Refinancing opens the door to new loan programs and terms, several different financial benefits, and even the option to try a new lender.

When you refinance your home, you’re essentially paying off your current mortgage and starting on a new page. This means you can shop around for the best lender for you, ensuring you find the best terms and conditions for your specific situation.

Ultimately, refinancing can be a huge financially beneficial move for homeowners today. If anything, be sure to do your research and talk to a trusted professional so you understand all your options and can make the best possible decision for you and your family.

If you’re ready to start the refinancing process or have more questions about what’s involved, head to our Refinance Product Page Here or contact one of our expert loan officers today!

Selling Your Home in 2021

Wed, 22 Sep 2021 12:00:08 GMT

Home sellers have an unprecedented upper hand in today’s housing market. Homes are flying off the market for top dollar due to low inventory and extremely high demand. While we certainly are still experiencing a strong seller’s market, it’s important to approach the process with careful consideration and expert guidance. If you’re thinking of taking the leap to sell your home in 2021, this is what you need to know.

Don't Take Advantage

It’s enticing to think that as a home seller you can enter today’s market and price your home at top dollar without doing anything at all. While homes today are still often being sold at ticket-price over asking, it’s important to maintain perspective.

When pricing your home, consult with your realtor for advice on what makes the most sense considering the state of your home, the surrounding market, trends, and more. Pricing your home at a fair price may actually help to bring in the competitive offers you’re looking for from buyers.

Taking careful consideration of your home pricing may also ensure that your home selling experience goes smoothly and relatively quickly. Overpricing your home may be counteractive to your goals and result in an extended home selling process.

You're Allowed To Be Picky

Because you’ll have the upper hand as the home seller, you have the ability to keep your options open. Buyers today are competing in a tough market, and while it may seem like the highest bid is your best option, that’s not always the case.

Just as sellers may be receiving multiple offers on their home, buyers could be making multiple offers on different homes as well. When sifting through offers, consult with your real estate agent and read through each offer carefully. Taking notice of things like built in contingencies could be the difference between a reliable buyer and a risky one.

Don't Skip The Small Stuff

Again, this market is nothing short of enchanting. If you’re thinking about selling your home in 2021, but think you can skip the cosmetics, think again. While selling your home in 2021 may be a little easier than past markets, the principles are still the same.

Buyers like to be able to imagine themselves in your home as much as they want to be able to know the roof won’t cave in. While you may be able to skip out on larger renovations (unless it’s something structural like a leaky roof), patching up holes and adding a fresh coat of paint can go the extra mile.

Staging your home is still important as well. While there may be less in person showings due to COVID-19, buyers are now scrubbing through images, videos, and virtual tours. Put your home in the best light possible to help buyers visualize themselves in it. Not only will it help the process go more smoothly, but it could also help bring in more competitive offers.

You'll Be On The Other Side Soon

Selling your home in 2021 will also mean that you’ll be buying a home in 2021. What makes this market perfect for seller’s, makes it difficult for home buyers. It is important to know where you’re going once your home sells as the process can move very quickly.

Consult with your real estate agent and find an experienced loan officer to help you make the process of selling and buying a home as seamless as possible. This team of industry experts will help you sort through offers on your current home, craft your personal offer to be as best as it can be, find the perfect home financing plan for you, and ensure all these moving parts are working together to help you find your next dream home.

The Cost Of Waiting

There is a lot to consider as a home seller in 2021, but the pros outweigh the cons. When you take into consideration the cost of waiting for a more stable market, it becomes even more apparent that 2021 is the best year to sell and buy a home. For more information on how to start your home selling and buying journey, contact one of our loan officers today!

New Construction Vs. Existing Homes

Wed, 01 Sep 2021 17:21:10 GMT

When selling your home, you have a few different options in where you’ll go next. One big decision to make is what kind of house you want to live in. Of course you have your list of wants vs. needs and know the general location of your next home, but will you be buying an existing home or investing in new construction.

Both home options come with their own list of pros and cons. Either decision you make should be made with your specific situation in mind and a trusted team of housing professionals to help guide you through the entire process of selling your current home and buying a new one.

New Construction

When we are talking about new construction, in this case, we are talking about custom building your next home. From the floor plan and square footage to the metal finishes of your hardware, new construction allows you to choose exactly what you want your home to look like. As a home seller, you may have lived in your current home for many years and made sacrifices on your wants vs. needs list. New construction homes give you the opportunity to turn your dream home into a reality.

Pros

Customization: It’s all up to you. When investing in your custom build, you get a say in everything from where the kitchen goes to what kind of stain you’ll be using on your wood floors and the exact doorknob on your front door. This truly allows you to create your picture-perfect home.
Efficiency: New construction means brand new everything. Newer appliances and home technologies such as HVAC systems, windows, dishwashers, and more are much more energy-efficient than older models in existing homes. This build-up of energy-efficient technologies in your home can mean extra savings on your utility bills!
Maintenance: Because everything about your new construction home is brand new, you won’t have to stress about any surprise maintenance. This initial savings on repairs to your home can help you better predict your monthly home expenses and save up for a home-specific emergency fund should you have any hiccups in the future.

Cons

Location: Typically, new construction is built in what is called exurbia, or a location removed from the nearest suburban or city areas. While you may get to build the home of your dreams, you may also be sacrificing easy access to things such as shopping, dining, and other activities. It's also important to consider the potential of adding on time to your commute.
Price: Especially in today’s market, building a new construction home can quickly add up in price. Considering things like the price of lumber and other materials, the price of shipping those materials, and paying for the physical labor that will go into building your home, expenses add up quickly. That’s not even to mention any customizations you may want in your home both aesthetically and functionally.
Nature: Because new construction often happens outside of established communities, the surrounding nature can be unruly. You may have to factor in the price of landscaping into your new construction project to ensure your home gets the look, feel, and natural protection it needs.

Existing Homes

Existing homes are homes that have been around for more than a few years. They are typically located in established suburban communities and require a little more love and care. Just like new construction homes, existing homes come with a set of pros and cons that you should consider when buying your next home.

Pros

Character: Existing homes have a story to tell. Countless families have made these houses their home and added their own personal flare to make it what it is today. When looking at existing homes as a homebuyer, you will have the opportunity to see many different styles and characteristics that you may have never considered in a home before.
Community: Established in long-standing communities, existing homes allow you to find a community more easily. One of the many personal benefits of homeownership is becoming a part of a community by participating in local initiatives, joining your local church, participating in your child’s PTA program, and so much more. Buying an existing home may introduce you to new neighbors, friends, and hobbies.
Nature: Because existing homes are older, they also have matured greenery. This growth of trees, bushes, and other plants actually work to protect your home from weather and natural wear and tear. Not to mention it gives your home a more homey feel.

Cons

Maintenance: Existing homes come with a little wear and tear. Hopefully, you were able to get a proper home inspection before buying your home to get a better picture of larger issues that need to be taken care of in your new home. However, because existing homes come with a few years of wear, you can expect your maintenance repairs to start adding up.
Customization: Buying an existing home may mean you had to sacrifice some items from your list of needs vs. wants. If this is the case and you want to buy your next home, but know you’ll be doing some renovations, check out our renovation loan products tailored to this specific situation. It’s also important to consider whether any renovations or changes you want to make to your home need to be approved by a Home Owner’s Association. These projects can truly start to add up and should be an expense you budget for after you make the biggest purchase of your life.

Selling your home and starting the home buying process can be intimidating. The first step is to understand all the available options to you and choose the best option for you and your specific situation. Whether you decide to build your home from the ground up or add your own touches to an existing home, the achievement of homeownership is something to be celebrated.

Contact one of our loan officers today if you have questions about starting the home buying process, selling your current home, or what loan program may be the best for you and your specific situation..

What Does Homeownership Mean To You: Home vs. Investment

Wed, 18 Aug 2021 15:13:24 GMT

What does the word “home” mean to you? Everyone has different motives when purchasing a home, whether they are seeking personal comfort, being part of a community, making a solid long-term investment, or all of the above! There is an endless list to consider before purchasing a home and it can be overwhelming. One important word to keep in mind throughout the homebuying process is “future.” Can you see yourself living there in one, five or ten years from now? Will the home increase in value over time? These are just some points to keep in mind before your big purchase.

Home ownership can mean different things to different people. For many, home is a sanctuary where you feel comfort, security and sense of family when you walk through the door s . From the outside, you may see home as a house, building or just a yard. But on the inside lies your whole world, a place where you can live, laugh and learn. It’s an exciting feeling to add your own personal touch to your home and if that's not exciting enough, settling down in a neighborhood can help build long lasting friendships with other neighbors which helps to create a sense of community. The home and place where you settle down can lead to life milestones such as starting a family, a new job or taking advantage of a work from home situation. Due to the ever evolving Covid-19 pandemic, Americans may be spending much more time in their homes going forward, so being able to clearly identify what you are looking for in a home takes on a whole new meaning these days!

Whether you are a first-time home buyer and making “The American Dream” and homeownership reality, upgrading to a larger home, downsizing or considering an investment or vacation property, having a good grasp on the investment opportunity should be a big piece of the equation. You may not initially think much about investment when you make your purchase, but the truth is your home is a huge investment in multiple ways. When you buy a home you have the opportunity to build equity as you pay off your loan as opposed to renting and paying off someone else’s mortgage. There is also an open door to turn this investment into a rental property which is a fabulous way to contribute to personal wealth. In addition, the more you pay off your mortgage, the more money you can have going into your retirement account. Over time, houses typically increase in value depending on the location and the status of the economy. Not to forget, when it comes time for tax season, owning a home only helps with deductions you can claim on your taxes!

The biggest takeaway is that buying a house is not only a roof over your head but a great long-term investment. New friendships can be forged, becoming active in your community, and just relaxing in the comfort of your own family room are just a few of the joys of owning a home. By doing your homework before purchasing your home, you could be making an investment of a lifetime! During the process don’t forget to determine what goals you have for the future. This is a perfect time to take advantage of the historically low rates and the perfect time for you to start a new life in a place you call “your own”.

How To Continue Practicing Balance After The Pandemic

Wed, 04 Aug 2021 14:05:31 GMT

The past year and a half has consisted of a whirlwind of change and emotions. Together, we’ve adapted to an “at-home” lifestyle and now, as we transition out of the pandemic, are adjusting to our “new normal.” Stanford psychologist Jamil Zaki believes, “the harrowing experience of the past year is a unique opportunity to reset people’s expectations about many aspects of society. Instead of simply returning to life before the pandemic, what if we could institute new personal and social norms that are more balanced, just and equitable?”

Spending more time at home has given many an opportunity to acquire new skills and hobbies. For those of you working remotely, your communication skills were put to the test. We had to adapt quickly to incorporating new technology into our daily routines. From using Zoom as a primary way to meet with others, to using social media platforms to promote our businesses. You may be starting to transition back to working in the office and feeling the need to hit the reset button...or do you? Think of this as a great opportunity to reconnect with your co-workers, and as a team, come out stronger than before. Create new goals and incorporate what you’ve learned into your daily routine.

Are there any big lifestyle changes you made during the pandemic? Did you increase exercise or learn new cooking recipes? Online workouts and cooking videos became two of the biggest trends across social media over the past year. But maybe you didn’t pick up either of these, and that’s okay! As we’re starting to get busier again, it’s so important to find time in your day that you can dedicate to focusing on yourself. Whether this means keeping up with exercise routines, reading a book, or cooking a new recipe, we all need a little time for our mental health. Never underestimate the need to focus on yourself and reflect on changes you’ve made, or still want to make.

As restaurants, stores, and other businesses are opening back up, you may find yourself spending more money than you were before the pandemic. It’s been a long year and maybe you missed going out to eat at your favorite restaurant or shopping at the mall. If you’re struggling to balance your financials during this reset period, you are not alone. Try to create a budget and set aside some money for yourself to enjoy these activities, or if you’re considering buying a house in the future, don’t let this time take away from saving up for a down payment. Stick to your budget so you don’t have to go through the anxiety of over-spending. But every once in a while a splurge is okay!

This is the time to grow as an individual in all aspects of your life. Your “new normal” doesn’t need to be a complete reset but a happy medium between old and new routines.

5 Things You Should Know Before Buying Your First House

mikaylah.collins@fairwaymc.com (Mikaylah Collins) — Wed, 21 Jul 2021 12:00:03 GMT

Buying your first home can be overwhelming and leave you with a thousand questions to ask. There’s no way to prepare for every twist and turn in your home buying journey, but there are 5 things you should know before you buy your first home.

What Do You Want In A Home?

Buying a house is one of the biggest investments you will ever make, so it’s okay to be a little picky. Before you even start looking for a house, define exactly what you want and need in a house. Whether it’s a big backyard or marble countertops that would make your dream home, be sure to tell your realtor! It’s important to be realistic in the process, especially during a competitive market, but really hone in on your non-negotiables to make the home search go as smooth as possible. Ask yourself these questions

Can you see yourself there in 5-10 years? If not then you should continue your search.
Do you NEED or WANT a certain feature?
Where can you compromise?New Paragraph

Find Your Real Estate Agent

Find the right Real Estate Agent who is knowledgeable about the market you are interested in. This is so important for when you have housing questions such as the pricing of houses in a desirable neighborhood, how quickly inventory is moving, and average offer packages. Your agent is there to take away some of the stress of finding your first house because let’s be honest, the process can be very intimidating.

If you don’t know where to start on finding the right Real Estate Agent, reach out to your friend and family for a referral. You can also ask your lender for a referral. You want to find somebody with experience that you can trust. For more information on finding the perfect real estate agent for you, head to our blog all about this step of the home buying process here

Making A Down Payment

You don’t have to put down 20%... you can put down 15%, 10%, and sometimes even just 3.5% depending on your loan program. When it comes to making a down payment, the choice should be guided by your current financial situation and future financial goals. This again is where your loan officer can help. It’s important to find an experienced loan officer you trust as they will act as a sort of advisor throughout your home buying process. A 20% downpayment can come out to a large sum of money that may seem impossible right now. That’s why it’s important to not only understand all your available financing options, but also to start planning to save for this upfront cost.

Home Inspections

Order a professional Home Inspection before purchasing a house even if you think the home is perfect. A home inspection ensures that you don’t come across big issues when moving into your house and saves you from additional costs after move-in. Another thing to keep in mind is that home inspections happen after your offer on the house has been accepted. If there are any deal breaker issues, be prepared to start your search again. No one wants to move into a house only to discover an extreme mold issue or problems with the exterior of the home.

Speed Is Everything

This one is huge for us here at Fairway Mid-Atlantic. When you buy a house, there are many people and moving parts involved in the process. It becomes too easy for communications to get crossed, deadlines to be missed, and files to go missing. You shouldn’t be stressing over whether your real estate agent or lender is going to respond in time for you to get your dream house. At Fairway, the speed to respond is one of core values. While there are many moving parts, we ensure that any communication, between you, your realtor, appraiser’s, attorney’s, etc., are done with speed. It is incredibly important to build a team who values speed when looking for your first home and something that shouldn’t be compromised on.

There are many more questions you probably have about buying your first house, but these 6 things are some of the most important to know. If you have any questions about the home buying process or your specific situation, contact one of our experienced loan officers for a consultation.

Housing Market Forecast 2021:Industry Changes & Future Outlook

Wed, 07 Jul 2021 13:35:35 GMT

While things seem to be returning to “normal” we are still experiencing an incredibly hot housing market. Interest rates and inventory remain at the center of housing conversation BUT there are other changes happening in the market. In addition to forecasted trends in mortgage rates and home inventory, there are many other important changes happening within the industry that will shape the housing market through 2021 and beyond.

Federal Housing Finance Agency (FHFA) Director Change

In June, Mark Calabria stepped down as Director of the FHFA. This change is seen as positive in the Real Estate and Lending communities. Calabria was dedicated to bringing Fannie Mae and Freddie Mac, the two largest federal backed home mortgage companies, out of Government Conservatorship and making them private again. In order to do this, FHFA imposed additional costs on both borrowers and lenders. The new Acting Director, Sandra Thompson, will instead focus on making access to credit easier and more affordable to consumers. Additionally, FHFA will look to better assist first-time homebuyers and low-to-moderate income families.

Second Home and Investment Properties

Under the previous FHFA Director, FHFA took the stance that Fannie Mae and Freddie Mac had too many loans for second homes and investment properties in their “inventory” and believed Fannie Mae and Freddie Mac were created to promote homeownership in the form of primary residences. It was the belief that secondary and investment property loans should be handled in the ‘private’ sector for securities. As such, they again increased rates – considerably in many cases for these types of loans. We are hopeful that under new direction, FHFA will reverse this stance and make it more affordable for consumers to purchase second homes and investment properties, as these segments do significantly help the housing market.

Federal Housing Administration (FHA) Changes

FHA loans are federally backed loans targeted towards first time homebuyers. Requiring as little as a 3.5% down payment and low credit score requirements, this loan option can make it easier for first time homebuyers to achieve homeownership.

FHA has announced updated student loan calculation requirements that benefit consumers. Previously, on a student loan the Loan Officer was required to count 1% of the outstanding student loan balance in the Debt to Income Ratio. Now, FHA is only requiring Loan Officers to include 0.5% of the outstanding balance.

What does this mean for you and why should you care about the guideline change? If you were on the cusp of qualifying or didn’t qualify for the amount you were hoping for, you now have more buying power.

Mortgage Interest Rates

Ok, now let’s talk about everyone’s favorite topic, mortgage interest rates. As you likely know, interest rates were at record lows in 2020. Overall, the outlook on interest rates is favorable. At the beginning of 2021, we shared that many experts projected an increase in interest rates as things began reopening and the economy rebounded from the COVID-19 pandemic. The predictions did hold true and many are continuing to project a continued slow rise in interest rates through 2022. The Feds have gone on record saying that any increase in rates will be gradual and focused on ensuring a stable housing market. The latest Quarterly Forecast from Freddie Mac states:

“We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.”

While this is a projected increase in interest rates, for perspective, the average 30-year fixed mortgage rate in 2019 was 3.94% and in 2018 was 4.54%. When looking at rates through a historical lens, they remain incredibly low. The same report from Freddie Mac goes on to say:

“While higher mortgage rates will help slow the pace of home sales and moderate house price growth, we expect overall housing market activity will remain robust. Our forecast has total home sales, the sum of new and existing home sales, at 7.1 million in 2021...”

Inventory

While 2020 brought record low interest rates it also brought significant inventory challenges which drove competition in the market. Here’s the good news! According to George Ratiu, Senior Economist at realtor.com, there are signs that inventory challenges may begin to ease up. He states, “We have seen more new listings this year compared with 2020 in 11 of the last 13 weeks.”

Additionally, new construction has picked back up. Robert Dietz, Chief Economist at the National Association of Home Builders writes, “As an indicator of the economic impact of housing, there are now 652,000 single-family homes under construction. This is 28% higher than a year ago.”

While competition remains high and we persist through a hot seller’s market, the projected steady increase in inventory coupled with growth in home construction could open the market up and allow more families to find the home of their dreams.

If you are ready to start your home buying process or have questions about your current situation, please reach out to our team of experienced loan officers for a consultation. Fairway Mid-Atlantic is dedicated to serving you and your family no matter your situation.

Benefits of Homeownership

sarah.rubin@fairwaymc.com (Sarah Rubin) — Wed, 09 Jun 2021 15:26:53 GMT

We’ve talked before about analyzing what makes more sense for you, renting or buying and the benefits of both. We recognize that homeownership is a big decision and one that cannot and should not be made lightly. However, in our opinion buying a home provides so many benefits and opportunities. Today, we are going to dive a little deeper into what those are and why they matter for you.

Building Your Personal Wealth

According to the Census Bureau, homeowners on average have a net worth that's 80 times higher than that of renters. But why is that and how is it possible? Two of the largest contributors are building equity and tax benefits.

When you buy a home, you start to build equity. Equity is the difference between who you still owe on your mortgage and what the home is worth. For example, if you buy a $300,000 house that appraises at the same $300,000 and put 10% down, at the beginning you have $30,000 in equity. As you pay down your mortgage your equity grows. Additionally, if your home appreciates in value your equity also continues to rise. But why does equity matter? As a homeowner you can use the equity in your home. Perhaps you need to pay for home renovations or sending a child to college, you can tap into the equity in your home using a cash-out refinance and utilize the cash to fund those expenses.

Additionally, as a homeowner you have tax benefits available to you. Currently, if you file your taxes as a single person or jointly if you’re married, you can deduct up to $750,000. If you are married and filing separately the deduction is limited at $375,000 per person.

Homeownership with always be one of the three largest ways to build personal wealth. Your home is and will remain a sound investment with return.

Customization and Satisfaction

Do you love to read or cook or spend time outside? Maybe you desperately want a home gym. Well, home ownership allows you to prioritize and make your home exactly what you need for your life. If you love to read, maybe a sunroom with a reading nook is something that is super important to you. If you love to cook, maybe you need a gourmet kitchen. When you’re renting, it’s a struggle to get permission to even paint a wall. When you own however you customize your space to your needs.

Additionally, there is a sense of pride that comes with being a homeowner. People are far more likely to care for their space, invest in upgrades and want to share their homes when they feel it represents them and is an accomplishment they worked for.

If you think this might be the right time for you to think about buying, we’d love to talk to you about your options. You may be far closer to achieving the goal of homeownership than you realize!

Anatomy of Your Monthly Mortgage Payment

Wed, 26 May 2021 12:01:36 GMT

Now, there are two questions that every single person asks a loan officer when they are considering financing a new home OR refinancing their current one.

The first is “what is my interest rate?”, the second is “what is my monthly payment?”. While both are incredibly important questions to discuss with your loan officer, we’re going to focus on “what is my monthly mortgage payment and what does it consist of?”

When thinking about your monthly mortgage payment it’s important to understand that in most cases it is made up of at least the following three components; principle and interest, taxes, and insurance. In some instances, you will also pay an association fee.

Prinicpal & Interest

Let’s start with principal and interest or as you may have heard it referred to, P&I. The easiest way to think of your P&I portion of your monthly mortgage payment is that part determined by your actual mortgage. This section of your mortgage will never change over the life of your loan unless of course, you refinance. P&I is calculated using simple interest. This means that the interest is always calculated based on the amount of principal left to be paid back. While the total amount of P&I you pay monthly will never change, because the interest is not on the total amount you borrowed but instead the amount you still have to pay back, each month the amount of your payment that goes to principal will increase and the amount that goes towards interest will decrease. At some point, usually approximately halfway through the life of your loan, you will begin to contribute more to principal monthly than interest. If this is of particular interest to you, please reach out to your Loan Officer and they will be happy to go over what we call an amortization schedule so you see exactly what amount of your monthly payment goes to principal and interest for the entire life of your loan.

Another important thing to understand about P&I is that you are always paying in arrears. That means when you pay your June mortgage payment you are paying for the month of May. For example, if you close in May you will not pay a mortgage payment until July (well you will pay it but at closing). For more information about closing costs and what to expect, head to our Closing Blog. For now, just know your P&I is always paid in arrears.

Taxes

The second portion of your mortgage payment is taxes. The amount of property tax you pay is fixed and the lender does not control that. In most instances, your yearly taxes are divided by 12 and paid monthly as part of your total monthly mortgage payment. Whether taxes are paid in arrears or for the upcoming month differs from state to state.

Insurance

The last component of most monthly mortgage payments is insurance. There are two types of insurance to keep in mind; Homeowners insurance and mortgage insurance. Homeowners insurance protects you and mortgage insurance protects the lender.

Homeowners insurance is required no matter your situation. You will obtain homeowners insurance from a third party and the servicer of your loan will pay that for you each month. Unlike P&I and some tax payments, this is always paid going forward, NOT in arrears. In most cases, both taxes and homeowners insurance are paid from an escrow account and your servicer handles it for you, nothing for you to worry about.

Mortgage insurance is only applicable if you put down less than 20% on your home. The cost, timespan you pay it, and the format you pay varies based on product and mortgage insurance company and is something your loan officer will go through with you in detail. This should absolutely not be a deterrent.

Other Fees

The last portion of a mortgage payment is only applicable some of the time. These are association fees. Association fees are paid if you have a homeowners association based on where you are buying. You can expect to see these fees as part of a condo, co-op, or housing community.

Your monthly mortgage payment is important to understand. Make sure you ask any questions you have to your loan officer and ensure you understand exactly where your money is going each month.

Having a firm understanding of your monthly mortgage payment will not only help you feel more at ease with paying your mortgage but will also help you navigate the entire home buying process more confidently.

The Home Buying Process: Closing

Wed, 12 May 2021 12:00:06 GMT

To this day, the thing we hear most is that potential clients, especially first-time homebuyers, often feel confused, overwhelmed, and uneducated when it comes to the home buying process. We’ve dedicated these last several months to breaking down the home buying process. Our goal has been to provide more information on what to expect during a home purchase, how to prepare, and which mortgage professionals you need to have in your corner.

What Does Closing Mean?

We’ve reached the last step of the process; closing and funding! This is the most exciting step of the process, well aside from actually moving in that is. At this point, your loan has been fully approved and is cleared to close! That means the mortgage company has received all documentation needed, completed a final verification of employment, conducted a credit refresh to make sure nothing has changed, and is fully committed to giving you a mortgage.

Additionally, you should have received final closing cost figures from your Loan Officer and are prepared with exactly how much money you need to bring to the closing table. Tip: You can’t bring a personal check for your closing costs. You either need to do a wire transfer (with verified wire information) or bring a bank check with you. Don’t worry your Loan Officer and Real Estate Agent can provide you with the information necessary and walk you through this process.

The biggest part of closing, other than paying your closing costs, is signing a lot of paperwork. The person conducting your closing will go over all of it with you and answer any final questions you have but don’t worry closing isn’t the first time you will see the financial part of this paperwork. At closing you sign things like your deed, making the property officially yours along with other important legal documents.

What To Expect At Closing

Now you may be asking, does this have to be done in person these days? Yes and no, depending on your state there are portions of, if not all of the process that can be done remotely. If this is interesting to you, please ask your Loan Officer what the laws are in your state and what your options are.

After all of the paperwork is signed, you get your keys and the moving process can begin! Moving into your home is an entirely different process that requires a lot of planning. If you’re looking for advice on where to start, head to our 8 Week Moving Guide that lays out exactly when and how to execute your move.

Even though the mortgage process that involves you is now complete, that doesn’t mean the process is over. The final stage in the loan process is the funding of your loan. Funding is where the money officially exchanges hands and you become an official homeowner on paper. You do not need to worry about funding, that all happens behind the scenes. It’s important to know that this entire process involves lots of moving parts that work together not only to ensure you get the home of your dreams but also that you can continue to access and manage your loan as you pay down your mortgage.

Closing is meant to be exciting. This is the moment you get to celebrate your new home or refinance! Reaching homeownership is not easy and that accomplishment is something to be proud of. We recognize that we’ll never be able to fully remove the stress of buying a home, but we strive to help educate and empower buyers to take control of their home buying experience.

Is Becoming A Loan Officer The Right Career Path For You?

Wed, 28 Apr 2021 12:00:05 GMT

We talk a lot about the home buying process from the buyer’s perspective. If we look at the home buying process from a Loan Officer’s perspective, it is completely different.

For the purposes of this blog, let’s focus on the role of a Loan Officer and how it could be the right career path for you. Does the idea of a career that provides flexibility, freedom and the ability to control your own success and earning potential sound exciting to you? If the answer is yes, this might be the perfect career path for you. If the answer is no, but the housing industry excites you, don’t worry it might just mean operations is a better fit, but more on that another time.

What Is A Loan Officer?

As the Fairway Mid-Atlantic leadership team says, a Loan Officer acts as the quarterback of the entire process. They’re responsible for financing your home purchase and acting as an advisor during the home buying process. A Loan Officer takes loan applications, pre-approves homebuyers for a loan, works with numbers and scenarios, reviews guidelines and puts together a final loan package that best meets the specific needs and goals of a homeowner.

T hey are the industry experts with a wealth of knowledge about how the housing market works, the movement of mortgage rates, loan products available to borrowers, and so much more. A Loan Officer is one of the most important professionals you should have on your team when buying a house or thinking about refinancing your existing home. In tandem with your real estate agent, a Loan Officer should be an expert in the industry, a problem solver able to find creative solutions, and a trusted advisor throughout the process.

The Day to Day

Daily, a Loan Officer is juggling a lot. Mostly, they are talking to their clients about their loans and where they are in their home buying process. They help potential borrower’s get pre-approvals to start searching for their home with their real estate agent, they work with an operations team to manage loans as they move through the mortgage application process to the closing table, they advise their clients on offers and scenarios, and they work with their network of Realtors and partners to support existing clients and build new business.

No two days look the same. When looking for a career path you could enjoy it’s important to consider what you value in a work environment. Several different financial institutions would allow you to pursue the path of becoming a Loan Officer, however, those paths are not all the same.

For example, a Loan Officer working for a large bank may find their job is similar to a regular 9-5 desk job. It’s predictable, stable, and provides a lot of support. A Loan Officer working for a broker or correspondent (such as Fairway) may experience something more similar to the structure of entrepreneurship. These paths may provide more flexibility and freedom, a wider selection of products available to their clients, and more opportunities to build their network.

Benefits of Becoming a Loan Officer

The biggest benefit of becoming a Loan Officer is the flexibility that comes with it. This job allows you to choose your adventure. What you put in is what you get out. Depending on the financial institution, LOs generate their own business through networking and relationship building. This means that the larger your ability to grow your network and establish yourself as an expert in the industry, the more business you could potentially create.

Another benefit is the entrepreneurial spirit. You decide what your business looks like and how much business you’re doing. Loan Officers are considered part of a sales force. To be successful, you must hone your communication and networking skills, have excellent problem-solving skills, and possess the drive to work hard for your clients.

Ultimately the greatest reward that comes from this job is the people we get to help. There is no feeling that matches the rush of seeing your clients close on their home. The relief and excitement are immediate but it’s the impact that lasts. Becoming a Loan Officer means you help families make one of the largest financial decisions of their lives. They turn a house into a home, get the opportunity to build their wealth, and in turn create the future they’ve been dreaming about. And you would get to play an active role in making it all happen.

So do you think becoming a loan officer could be your next career move? If you are interested in anything to do with business, finance, real estate, the housing market, or even just entrepreneurship, this could be the career path for you. The possibilities of this career path are endless.

For more information about what a loan officer does, what it could look like as a career, and how to start the process, head to our Join Our Team page . We love what we do and are always willing to help!

The Home Buying Process: Operations

Wed, 14 Apr 2021 12:00:04 GMT

You’ve submitted your loan application, now what? What’s happening from now until you reach the closing table? The mortgage process involves many different people working together to run smoothly. From your lender’s operations team to multiple third parties, there is a lot of behind-the-scenes work to get you into your dream home.

Behind The Scenes

It’s imperative that you know once we submit your loan application it does not go into a black hole. Instead, an entire team is working together to get you cleared to close as soon as possible. While each member of this team is responsible for different jobs, in reality, many of them are happening at the same time. Each team member is working together to expedite the process and ensure your loan reaches the status of “clear to close”.

As soon as your application is submitted, a team of openers are ordering all of the services needed to complete the file. This includes, but is definitely not limited to, title insurance, verification of employment, and an appraisal. All of these services provide information to the processors and underwriters that answer one main question; “Can we approve this loan and feel comfortable that the borrower will make their payments on time for a property that is fairly valued?”

Processing & Underwriting

As the loan is being opened, our processors are reviewing all of the documentation you sent to your loan officer as part of the application process. You have submitted your bank statements, paystubs, W’2s, and possibly more. A processor’s job is to go through each of those documents carefully and verify the information included in the loan application. If they notice anything in the documentation that is not clearly explained or accounted for in the loan application, they will come back to you and ask for additional documentation. If you’re asked for supplemental documentation it does not mean anything more than your processor wanting to make sure they have everything needed to get your loan fully approved. The processor’s job is to ensure that the underwriter will have as few questions as possible when reviewing your application and can see a clear picture of your financial story.

Once the processors have everything they need they will submit your loan to underwriting. The underwriters will review the entire mortgage package against the product guidelines and make sure everything is met and issue your approval. If they have any questions they will issue what is called “conditions.” These are simply things they need information on or documentation for before they fully approve the mortgage.

After they review the entire mortgage package they will send the mortgage back to the processors and they will supply all of the information needed to satisfy the conditions or answer the questions that the underwriters have. Once all the conditions have been met and questions have been answered, your loan will be resubmitted to the underwriter for final approval.

Closing

While a team of processors and underwriters are working to get your loan approved, a closing team is hard at work getting all of the information needed to issue a final closing disclosure. This includes all third-party fees, title insurance, and speaking with your homeowner’s insurance company to provide you with a complete document that includes all of the information needed for closing, including your monthly payments and all closing costs. This will not be the first time you see your closing costs. You receive an initial closing disclosure from your loan officer early in the process that will have an estimate of your closing costs so you are well prepared for what you need for closing.

While there is so much that is happening behind the scenes, the most important thing to remember is an entire team is working together for you. Throughout this entire process, you should be receiving consistent and clear communications from your loan officer about where your loan is at in the process and expectations for when you will get to call your new house your home.

This part of the mortgage process is the most confusing, but knowledge is power. Having an understanding of your personal loan process will help you feel a sense of control and give you a little peace of mind. Working with a trusted team of professionals will get you from application to closing in the most stress-free way possible.

For more information about the home buying process and how to start, contact one of our loan officers today or visit our products page to see what financing solutions Fairway has for you!

Complete 8 Week Moving Guide

Wed, 31 Mar 2021 12:00:07 GMT

You’ve likely heard us say it before BUT moving is cited as the third most stressful event experienced in one’s lifetime. THIRD! If you’re planning on moving soon or even have a move date already scheduled but are feeling overwhelmed with everything that needs to be accomplished between now and then, keep reading. While it’s our job to help on the financial side of your move, we can’t do much about the physical move itself. In this blog, we’re giving you our best advice and a complete moving guide that will hopefully help you navigate the moving process.

If you’re making your move in 2021, this guide will be especially helpful in planning. In a market that is moving fast, there’s no time to waste. If you’re serious about starting the home buying process or even have your pre-approval ready to go, it’s time to start planning.

8 - 6 Weeks Before Move-In Day

Research Moving Services - Moving to a new house takes a lot and you shouldn’t do it all by yourself. Do some research into different moving services and create your moving budget. How much you’re spending on this move will depend on how far you’re moving and what kind of move you’re looking to do. Narrow down your search, nail down a budget, and decide if you’ll be doing the move yourself, with professional help or a combination of both. By the end of the 6-week marker, you should schedule your movers and move-in date!

Appointments & Important Docs - You’re not just moving your stuff, you’re moving your life. Make a list of all the necessary appointments you’ll need to make and use the next couple of weeks to finalize these plans. This means things like setting up your utilities, school enrollment, and inspections. Now is the time to start gathering all of the important documents you must keep track of and taking inventory of what you have and what you’re missing. You may also consider backing up these important documents onto a computer in case anything gets misplaced during the move.

Inventory - Take inventory of everything you’re moving. This will help you to organize and remember everything you need to pack as well as help you decide what can be donated, sold, or thrown away. You can get super detailed in this inventory and organize it by room, or you could simply write down the most important things. This is also the time to take furniture measurements and compare them to the measurements of your new space. You don’t want to be stuck in a situation where your new sectional doesn’t fit.

Supplies - Start to gather your boxes and moving supplies. You can contact local grocery stores and warehouses to find free boxes and then buy the rest. Consider things like packing tape, paper, bubble wrap, etc. Check with your chosen moving service to see what they offer as well.

Small Repairs - Make quick and small repairs you’ve been putting off. Start to putty over dents, replace that broken toilet paper holder, etc. If you’re selling your home and moving, this could help the process move along and it’s considerate to whoever may be moving into your home next.

Time Off - Once you’ve scheduled your move, request time off. This will give you enough time to move without stressing about getting work done during the process. Also, take this time to ask friends and family to help with your move. Like we said before, you don’t want to do this alone, and the more help you can get, the better.

5 - 2 Weeks Before Move-In Day

Start Packing - Get a head start on your packing and box up any non-essential and seasonal items. Go through your storage closets and garage area too. This means you can get things like winter coats, Christmas decorations, and even some larger items packed and out of the way. The more you can do before moving day, the less stress you’ll likely experience. Make a packing plan so you make steady progress as your move-in date gets closer. Unfortunately, you can’t take off weeks for a move, so schedule packing sessions after work and during weekends to stay on schedule.

Forwarding Mail and Transferring Services - Once you have your new address you can start the process of forwarding your mail and transferring (or canceling) services. Look at all of your subscriptions or memberships and figure out which you can keep and which you need to change. Maybe you need to cancel that gym membership but can change your address on your monthly food service subscription. Also consider things like changing pharmacies, what utilities you need to transfer, bank and card information, etc.

Donate, Sell, & Throw Away - Remember that inventory you made? Now is the time to go through the things that aren’t on it. Decide what you can donate or sell and sort out what needs to be thrown away. You could hold a yard sale, post items to an online marketplace, or schedule a drop-off at a donation site. Not only are you getting rid of the clutter, but you could make some extra cash too.

Order New - Now is also the time to go through your inventory and fill in any gaps you may have. If you have the means to, take this opportunity to order new furniture pieces to make your new space feel like home right away. If you are still in the thick of the mortgage process, avoid making large purchases or opening new credit cards as it could impact your loan. For more information on what NOT to do during the home buying process, check out our YouTube video all about the mistakes you should avoid during the home buying process here .

The Week Before Move-in Day (It’s Getting Real)

Pack Pack Pack - Now is the time to put packing into high gear! Tackle it room by room to help you stay organized and keep your most-used spaces livable. Disassemble large furniture pieces, take photos of valuable items (just in case), and just pack. This task can seem never-ending, but if you’ve planned ahead, have an inventory, and started your packing weeks ago, you should be in good shape. You should aim to be done packing before moving day. Leaving anything for the day of the move is likely why it’s ranked as the third most stressful thing ever.

Suitcases - Pack your day-to-day essentials and a couple of days worth of clothes in a suitcase for each member of your family. You won’t want to sort through all of your boxes to find your toothpaste the day after moving. This will help you feel more like you during your move and keep you from stressing over not having deodorant on hand or clean clothes for the next day.

Clean Up - As you finish packing each room, clean it too. You’ll want to dust surfaces, vacuum, or mop the floors, and just make sure you leave your space ready for the next family moving in. Cleaning will help you feel like you’re crossing things off your list, make the space more attractive to potential buyers if you’re selling, and is a nice courtesy to whoever is moving into your space.

Last Minute Errands - Head out for extra cash to tip your movers, collect any keys and garage remotes, and pick up anything else outstanding. Do a final sweep of your house to make sure you didn’t miss anything in all the packing and take photos/video of your space.

Move-In Day

It’s the big day! If you follow this guide and prepare well in advance, this day should go off without a hitch. Load up the trucks, order some pizza for those helping you, and get moving into your new home.

Moving houses is a huge process with lots of little steps you may not immediately think about. For a more extensive and complete moving guide, head to https://www.moving.com/move-planner/ to create and print your moving checklist.

Building Wealth Through Homeownership & Equity

Wed, 17 Mar 2021 12:00:03 GMT

Buying a home is obviously a large investment, and with it comes some big potential benefits. Aside from the more personal benefits such as the freedom to create your own space and the pride in knowing you have achieved a major life milestone, homeownership comes with financial benefits as well.

So how can homeownership work for you and your future goals? Through equity you build in your home and the many different ways you can use that accrued wealth for future purchases, homeownership is one of the largest contributors to your personal wealth.

What Is Equity?

Equity is the difference between what you owe on your home and its current value. Equity is one of the greatest benefits of homeownership as it can be used later for other large financial decisions.

Ex. If you owe $250,000 on your home mortgage and your home is valued at $300,000 then you have $50,000 of equity in your home.

Equity can increase or decrease based on a host of different variables such as appreciation or depreciation of your home value. This means that as your house gains value and you continue to make payments, your equity will increase. It also means that if your home loses value or even falls below what you owe, your equity may stall or shrink considerably.

Ex. You buy your home at the value of $100,000. You made a $5,000 downpayment and are left with a mortgage of $95,000. At the start, you have $5,000 in equity. Fast forward 2 years and some things may have changed.

Your home’s value has increased to $115,000 and you’ve reduced what you owe to $85,000. Your equity has now increased to $30,000.
You have paid down your mortgage to that same $85,000 but your home’s value has dipped to $95,000. Your equity is now only $10,000.

This is the simplest way to understand equity in your home and how it could grow or shrink during the time you own your home. What’s important to remember is that buying a house is an investment. Just as stocks go up and down, so can the investment in your home but don’t worry it’s far less volatile than the stock market.

Building Equity

Down Payment: The more you can put down on your home, the more equity you will have from the start. So instead of putting down $5,000 on your home that’s worth $100,000, you can aim to put down somewhere between 10%-20% or $10,000 - $20,000. This may not be an option for everyone, but starting with as much equity as possible can set you up for success down the road.

Monthly Payments: Homeownership acts as a sort of forced savings and requires that you have a certain amount budgeted for your monthly payments. At the start of your loan, the majority of your monthly payments will go towards things like interest, taxes, and any other fees. As you continue to make those monthly payments, more of it will go towards reducing your principal balance and in turn, build your equity. No, this doesn’t mean your monthly payment changes, it just means the allocation of the same funds go to different buckets when you pay your mortgage.

You can also use monthly mortgage payments as a way to build wealth faster. Perhaps you could put an extra $100 towards your payments each month or make one extra payment every year. This will help you to shrink the life of your loan faster and increase the amount that goes towards paying down your principal balance and building your home equity.

Renovations: Help your home’s value without relying on the market with smart renovations. Get familiar with what home buyers are looking for in a home and make moves to add those features to your own. For example, upgrading appliances, redoing your roof, finishing your basement, or upgrading the exterior of your home will increase the value of your home, and in turn increase your equity.

How Can You Use Equity in Your Home?

The equity you build in your home doesn’t have to be just a concept you halfway understand, it can work as a tool for you in your future endeavors. Tapping into the equity in your home can help you with future financial moves such as home renovations, debt consolidation or repayment, and buying your next home. There are several ways to tap into and use your home equity, but the most popular one allows you to re-evaluate your current home financing details and borrow from your built equity.

Cash-Out Refinance: Now that you understand what equity is and how to build it using your home, let’s talk about how to access that money. The most common way, other than selling your home, is a cash-out refinance. When you obtain a cash-out refinance you are BOTH refinancing your interest rate and borrowing money from the equity in your home. It’s important to remember that whatever equity you take out of your home will have to be added to your mortgage so the balance owed on your mortgage after the cash-out refinance will equal your old principal balance plus the amount of money you take out of the house in addition to any closing costs you may have rolled into the loan.

Homeownership comes with many benefits, but understanding the financial benefits and how they can work for you is crucial to making the most out of being a homeowner. If you have more questions about home equity and how to use it, contact one of our loan officers today! We are always here to help you understand all your available home financing options and which solution is best for you.

The Home Buying Process: The Mortgage Application

mikaylah.collins@fairwaymc.com (Mikaylah Collins) — Wed, 03 Mar 2021 13:00:07 GMT

Buying a house involves more than open houses and bidding wars, right? It means you will be making a huge financial decision and take on the responsibility of a mortgage. The mortgage application process seems daunting and even overwhelming considering the weight of the decision and the scope of the process. However, if you’ve followed our home buying process series, you will complete this step with ease.

Breathe, you’ve been here before. If you’ve been pre-approved, you’ve already completed the majority of a true loan application. The only big difference is that this time you’ve found a home you love and are under contract. Congratulations!

The application is the last step you must complete before your lender can take over the responsibility of getting you to the closing table. In upcoming blogs we’ll walk through all the behind the scenes stuff that happens after you hit submit and before you officially get your keys to your new home.

For now, let’s talk about the actual mortgage application and what you should expect during the process.

When Do I Complete A Mortgage Application?

The first steps of the home-buying process are having a consultation, getting pre-approved and then finding the home of your dreams. For more information on exactly what those steps look like head over to our blogs on Getting Pre-Approved and Finding Your Dream Home . Now that you’ve found your new home and had a contract accepted, it is time to complete your loan application.

Most lenders have a variety of ways for you to complete your application so that you can choose what makes you most comfortable. If you wish to complete the application over the phone, in-person, via a weblink or even via a phone app that’s all possible! In most cases, a completed application will require a combination of a few different methods to ensure all documentation and applicable questions are covered.

Components of a Loan Application

First things first, this part of the process requires a lot of paperwork and answers to lots of personal questions. You should expect to enter into When completing the mortgage application your lender will gather all of the information necessary to submit a full package to their operations teams to ensure there is no problem lending you the amount of money necessary to buy your new home. Much of the loan application is simply filling in the blanks so that there is a complete picture for all the people behind the scenes that aren’t talking to you directly. So let’s break down each section of the mortgage application and what you should expect.

Basic Information About Your Loan

This includes information like how long it will take you to pay off your loan, if it is a purchase or refinance and what program and product you will be using. Don’t worry, you don’t need to know this information yourself. Your loan officer will talk through all of your options with you and together you will decide what is best for your specific situation. If you’d like to learn more about the available home financing options to you, head to our products page to see which may be right for you.

Borrower Information and details of the transaction:

The next major segment of the loan application is the borrower and co-borrower information. This will include employment information, monthly income, housing expenses, assets and liabilities. Your lender will need a history of all of this information, so expect to be asked for a specific number of months or years of documented history for each of these items.

Additionally, depending on some of the information in this section, such as employment type, we will need additional documentation. A list of all of the basic documents needed to verify this information includes:

W-2s for the previous two years
Paycheck stubs for the last 30 days
All pages of you checking and savings account statements for the last two months
Most recent statements for your 401(k)s, stocks, and other investments
Photo ID

You will also need to disclose the details of the transaction, or in other words, communicate to your lender all of the relevant financial details involved in your loan. Are you receiving a gift for downpayment? Do you have a property to sell or rent out? All this information should be included to ensure that your loan runs smoothly through the rest of the process.

Declarations

The declarations section asks you questions pertaining to the property, your funding and perhaps most importantly your past financial history. This information isn’t meant to make it more difficult to get a loan or to overwhelm you. The information is there to help the lender have a full picture of your unique situation and help you find the best solution moving forward.

Acknowledgement and agreement and information for government monitoring purposes

The last two sections of the mortgage application are you simply acknowledging what your legal obligations are when you sign the loan application and demographic information. The purpose of collecting this information is to help ensure that all applicants are treated fairly and that the housing needs of communities and neighborhoods are being fulfilled.

For residential mortgage lending, Federal law requires that we ask applicants for their demographic information (ethnicity, sex, and race) in order to monitor our compliance with equal credit opportunity, fair housing, and home mortgage disclosure laws. The law provides that we may not discriminate on the basis of this information, or on whether you choose to provide it. The law also provides that we may not discriminate on the basis of age or marital status information you provide in this application. If you are uncomfortable filling on the demographic information you can choose to abstain from answering.

It is important to adjust your mindset about the mortgage application process from one of stress to one of excitement. You are formally applying to become a homeowner and that’s something to celebrate. Remember that through this process, you should have a reliable and experienced loan officer helping you every step of the way. They will advocate for you and your goals and work to help you navigate the home buying process as smoothly as possible.

Once the application is complete, the loan will be submitted to processing and you are one step closer to closing on your home!

Fall In Love With Your Home

Wed, 17 Feb 2021 13:00:03 GMT

The 5 Love Languages

You’ve likely heard of the 5 Love Languages; 5 different modes of expressing and receiving love between two people. Just as we express and receive love for other people, we can have those same emotions about our homes.

Starting the home buying process can be overwhelming. The excitement of finding a brand new place to call home, the stress of organizing your finances, the anxiety of wondering if your offer will beat out all the rest, and so many other emotions pop up. At the end of it all, you find your dream home. Buying a house is one thing, but making it a home is another.

The concept of the 5 Love Languages was introduced by Dr. Gary Chapman who experienced a pattern of unmet needs in his marriage counseling clients. All of the complaints he heard could be categorized into 5 categories: Words of Affirmation, Quality Time, Acts of Service, Gifts, and Physical Touch. Just as it takes effort to build a lasting relationship, it takes time to create a loving home.

Words Of Affirmation

This love language is all about expressing how you feel through words. This doesn’t just mean constant affirmation of love, but can also include words of encouragement, compliments, and affections. When you are talking about your home, how are you talking about it? Maybe you describe your bedroom as the coziest place on earth or your kitchen as filled with warmth and light. These words don’t necessarily translate to love, but they reinforce the positive emotions you feel in your space.

Describing how your home makes you feel can deepen your connection to it. It can also show you patterns or signals you should be wary of. For example, maybe you avoid going into the spare bedroom because it feels empty. If you find yourself speaking negatively about a space in your home, take action to reverse your feelings about it. Replace the lights, add a new comforter, and decorate the walls to give that empty spare room a little more life.

Quality Time

This one seems pretty straight forward. A home is built by the memories we make in it. To make your house feel more like home, find ways to spend some more quality time inside it. This could mean sitting at the table for dinner with your family every night to catch up with each other and share some laughs. It could mean dedicating one night to lounging on the sofa and watching movies with your partner. Dedicate your bathroom to your morning routine, try out new recipes in the kitchen, play pretend with your kids in the backyard.

Your home shouldn’t just be the in-between of work and soccer practice and sleep. It should be your favorite spa retreat, the best restaurant you’ve ever been to, and the comfiest place to rest after a long day. Quality time spent in your home will give you more reasons to love it.

Acts Of Service

This love language is all about doing things for others. Finding the perfect home isn’t just about the four walls. Consider the community you want to be apart of when deciding on what your perfect home would be. If you value giving back to local charities, research a local community initiative you could join. If you want to play an active role in your faith, shop around for the right place of worship for you and your family. Maybe you want to be close with your neighbors and want your kids to have friends close by. When looking for your new home, don’t be afraid to knock on doors and introduce yourself or ask questions about the neighborhood culture.

Acts of service could also be more personal. If you want to volunteer at your kids’ school by contributing to bake sales or classroom snacks, a spacious kitchen should be on your wants list. If you love hosting large parties or family holidays, an open floor plan with room for lots of seating would be important. Keep your values and lifestyle in mind when searching for your new home to ensure you can keep serving in every way you love to.

Gifts

You may be thinking that your house can’t give you gifts and this love language is a stretch, but keep reading. If your personal love language is receiving gifts, how can your home mirror that? Perhaps you love a fresh bouquet of flowers every week. Maybe you have a biking hobby and love getting new gear for yourself. Consider things like food or drink subscription services, new clothes, etc. Would your home have room for a bike rack in the garage? Is there a large refrigerator for your weekly subscription? A custom closet organization system? Counter space for vases of flowers? Your home should work for you and all the gifts you love receiving.

Your home also offers up its own gifts. The gift of a safe and warm place to live. The gift of community. It gifts you rest, space to live, and a place to grow your family. These gifts are less tangible, but they are just as valuable as any material gift you may want.

Physical Touch

Now don’t go hugging your walls or anything. When thinking about physical touch in your home, think about the way it makes you feel. If we are taking the physical touch literally, maybe your carpets are soft and plush, your kitchen counter is a beautifully smooth granite or the throw blankets hanging on every couch and chair are a cozy dream.

But how does your home make you feel? Do you feel relief every time you collapse into bed after a long day? Maybe you have a favorite spot to curl up and read a book because the light is just right. Cooking in the kitchen could be your creative outlet. Soak up each emotion your home brings you.

A home should be the place you feel most comfortable and connected to yourself. It gives you the space to be who you are, connect with your loved ones, and rest at the end of each day. Connecting the 5 Love Languages to the way you create your dream home can help you to create a space that caters to the life you wish to live.

While it is very important to consider things like budget and financing in your home search , you can use these 5 love languages as a guide to finding the house that could become the perfect home for you.

The Home Buying Process: Finding Your Dream Home

Wed, 03 Feb 2021 13:00:01 GMT

Step two of the home buying process is the fun part; Actually finding your home. You’ve hopefully met with a lender, discussed all of your financial goals and established your budget for buying a home and come up with a timeline that feels realistic without being too overwhelming. If you skipped over the first step, head to our first post of this series to learn more about why you should get pre-approved before looking for your dream home.

But when can you start the fun part? When is the right time to start actually searching for a home?

Well, good news! The time is now! Before you get sucked down the rabbit hole of searching for homes on sites like Zillow and Redfin and start wondering how you write a competitive offer, it’s important that you make sure that you have a Real Estate Agent on your team to help guide you through this process.

There are absolutely things you can do alone, but finding and buying your home should not be one of them. But how do you find an agent? What advice will they give that will make the home search more manageable? Is it necessary to find them now or can I wait for a little while longer? Below we break down the steps necessary to take to find your dream home. Sure, you can swap the order of some of these but we firmly believe step 1 is the best place to start.

Step 1: Finding Your Agent

A real estate agent is likely the first should act as a trusted advisor and advocate for you in the home buying process. They should have an expertise not only in the local market, but also in the culture of the local area you are looking to move to. This will help you in understanding every aspect of your new home from finances to community.

Finding an agent doesn’t have to seem like a full time job. If you’ve spoken with a lender first they will have recommendations for you. Don’t be afraid to let your lender know exactly what type of agent you are looking for and let them provide you with options that you can pick from. It’s important to find the right person for you. Experience and expertise are great, but buying a house is one of the most important decisions of your life, and the people behind you should be people you trust and are comfortable with.

Other ways of finding great agents are asking your local family and friends for referrals of agents they enjoyed working with or heading to the internet to conduct your own research. Don’t hesitate to call a few different agents until you find one you click with. You will be spending a lot of time together so you should feel comfortable with them and excited to go through this process together.

Step 2: Explore the Neighborhood

Researching and reading about the neighborhoods you're interested in living in is a great way to start to get a feel for where you might want to live, but nothing can replace spending time in those neighborhoods and talking to the people that live there.

Spend time going to local restaurants (or doing takeout), going on a hike, walking your dog, taking your kids to the park or exploring local shops. While you’re out and about, ask people questions about if they like living there, the things they like to do and any advice they have for somebody interested in moving to the town. You’ll be blown away by how open and friendly people will be and how much you will learn in an afternoon.

After you spend some time in the different places you would consider living you’ll have a much better feeling about what might be the right fit for you. Knowing where you want to live is a huge portion of the battle when trying to find your home.

Step 3: Wants vs. Needs

Starting to look for a home can be overwhelming. One house you saw has the perfect kitchen, another house has a great main suite and a third has a finished basement. Which one do you choose? Before you can start to make that decision, you need to have an understanding of what is on your “must have” list and what things you are willing to compromise on.

We all have a budget that we would like to stick to when thinking about a new home. Especially in a market like today, where inventory is low and homes are selling incredibly quickly with multiple offers, it’s crucial to not get hung up on the little things like a paint color or specific granite, but instead look for the things you need in order to be happy in a home and then the little things can get changed over time.

Once you’ve nailed down your needs versus wants, stick to them. Even with low inventory, it’s easy to continue looking at all your options even if they don’t check all your boxes. Take advantage of today’s circumstances and take virtual tours of homes to narrow your search. Once you’ve narrowed your choices, go for an in person tour (if possible) and try to visualize yourself in the home. Seeing a home online and walking through one in person are two very different things and it’s important to follow your gut instincts in choosing the one best for you.

Step 4: Set Realistic Expectations

Finding your dream home does not happen overnight. Be patient and set realistic expectations. Have an honest and open conversation with your Real Estate Agent and your lender about how much you feel comfortable spending, the things you really want and where you aren’t willing to compromise. Let the professionals you enlist to help you, actually help you. Together you will find the home that is right for you.

Above everything, remember that finding your dream home should be fun. Of course you will experience some stressors when thinking about money and moving logistics, but you are ultimately making a big decision about your future. Soak up every minute of your home buying purchase and really take your time in getting to know what you want in a home. Allow yourself to imagine what it would be like to live in the homes you tour, dream up future family gatherings, and get excited about the prospect of a fresh start.

Once you’ve found your home, it’s time to get rolling. In our next blog in this series we will be talking about the next step in the home buying process; The Mortgage Application.

Fairway Mid-Atlantic: Our Story

Wed, 20 Jan 2021 13:00:01 GMT

Our Story

It all started with a simple desire: help people.

More specifically, our leaders were looking to help more people achieve homeownership. After decades in the industry, they found that the process of finding and financing a home was made more difficult by complex systems and a large divide between the client and the people working to help them. They knew there was a better way and set out to find it.

4 years ago our SVP, Kimberly Grim, decided she was interested in increasing her footprint across the Mid-Atlantic region. She brought on another manager, Bryan Moran, and together they built out the Fairway Independent Mortgage Corporation, Mid-Atlantic Region. Using the core values of Fairway as their guide, the two embarked on constructing a team that practiced a mortgage process that put people first.

We wanted to share a little bit more about who we are as Fairway Mid-Atlantic, why we built our team the way we did, and our goals as we help you navigate buying or refinancing your home.

The Mid-Atlantic Region

The Mid-Atlantic region is rich with diversity and culture. From the mountains of West Virginia, to the national monuments of Washington D.C., to the beach towns on the Virginia and Delaware coast, anyone can find their slice of the American dream.

When our leadership thought about how they wanted to grow, they knew it was important that each branch in each market run differently. A branch in D.C. needs something different to be successful than a branch in Winchester, Virginia or Rehoboth Beach, Delaware. We work, play, volunteer, and live in the communities we serve. Our teammates are experts in their markets and that makes it all the more effective for them to help you navigate buying a home in your local market.

Today, Fairway Mid-Atlantic has over 10 offices across Delaware, Maryland, Virginia and DC that are dedicated to helping people and families find their place to call home.

In addition to our local licensed Loan Officers, we have built out a Mid-Atlantic regional operations team. You may be asking why should this matter to you?

In an effort to create the most streamlined process possible, our leadership team valued the necessity of a team that works together, not separately. Our entire sales, operations, marketing, and business development teams are our own. The hyperlocal dynamic of the Fairway Mid-Atlantic Region allows your home loan to go through the entire process as seamlessly as possible. In conjunction with our local team, we have constant support from our corporate headquarters in Texas and Wisconsin, bringing national strength to our hometown service.

Now you understand a little bit more about how we are built and why but let’s discuss a little bit more about our goals.

Our WHY

It’s more than hitting big numbers and doing the job. At our core, we are striving to create a mortgage process that puts people first because mortgages are what we do, not who we are. When boiled down, our goals as a region are quite simple.

Help you achieve homeownership - Homeownership is part of the classic American dream and we want to help as many people as possible achieve that dream no matter their situation. This isn’t about hitting a number or checking something off a list. Instead, it’s about ensuring that we accomplish the goals that our customers set and ensure that we get them to the closing table with as few hiccups as humanly possible. We know there is a need for speed, especially in our market, and work to get our clients to closing as quickly as they deem necessary.

Provide a great experience - Buying a home is cited as the third most stressful event in a person’s life. That shouldn’t be the case. The Fairway Mid-Atlantic team is especially passionate about educating buyers about the home buying process to help them feel more empowered and confident. Our unparalleled speed, industry knowledge, and national support allow us to help you find the best option for your unique situation.

Have fun - We’ve built a team we LOVE working with. We approach each day with the attitude that loans are what we do but not who we are. Who we are is a group of individuals that work together to help others, like you, achieve their goals. When you look at mortgages that way, every day is rewarding and fun! That doesn’t mean there won’t be stress, let’s be real, but when you keep the people you’re helping at the forefront of your mind the work IS fun.

Fairway Mid-Atlantic was created with the hopes of creating a better mortgage experience. Our leadership's unwavering dedication to our core values and purpose is the foundation to everything we do. After just 4 short years, we have grown into a hardworking and passionate team who continues to serve as many families as they can.

We simply work to exceed expectations, provide satisfaction, and earn your trust by creating a mortgage process that puts people first. If there is anything you need; additional education on the process, support as you look for a home, or want to dive into getting a mortgage we are here for you.

The Home buying Process: Consult and Pre-Approval

mikaylah.collins@fairwaymc.com (Mikaylah Collins) — Wed, 06 Jan 2021 13:00:03 GMT

When you think about buying a house, the first thing you may feel is stress. Moving is actually cited as the third most stressful event in someone’s life right behind divorce and the loss of a loved one. That’s heavy but buying a house doesn’t have to be. Buying a house involves a lot of research, legal jargon, and money which can all add up to an especially stressful experience. If you are dreaming of buying a new home but feel overwhelmed by the process, you’ve come to the right place

The home buying process shouldn’t have to be stressful, and with the right tools, team, and knowledge you could navigate it like a pro and move into the home of your dreams with ease. Each month we’ll be highlighting one step in the home buying process and uncovering the answers to all your questions. How do you even get a mortgage? What’s a loan officer and do I need one? How do I make an offer? What’s the right loan for me? Appraisals and inspections? How much should I save for a downpayment? Are there other fees I don’t know about?

Knowledge is power and you should feel confident when making arguably the biggest financial decision of your life. The first step of the home buying process is just a conversation.

So You Want To Buy A House...

So you think you’re ready to buy a house? That’s awesome. Before you get lost on Zillow searching for the perfect modern farmhouse, let’s take a few steps back.

Define your budget and get to know your finances. Buying a house is a large purchase, and you should do lots of research and preparation to ensure you’re actually ready to make it. Get familiar with your finances and that means being honest about all of your debt. You’ll want to have a solid idea of what your credit score is, how much credit card debt you’re holding, and any other debts you may have (student loans, car payments, etc.). Did you know things like your cell phone and cable bills don’t count towards your debt when talking about obtaining a mortgage?

Debt is a crucial part of deciding whether you can afford to buy and eventually pay for a home. Holding debt isn’t necessarily a bad thing. Something like student loans you’re actively paying off on-time is one thing, but carrying huge balances on a credit card or missing payments altogether will present as a red flag to banks and lenders.

Getting a handle on your finances can give you a serious reality check about how much you’re making versus how much you’re spending, how much debt you’re in, and if throwing another large expense into the mix is a smart financial decision. If you’re looking for tips on how to start managing your budget better, check out our last blog all about financial planning and budgeting.

Once you feel confident in your financial picture, the next step is to decide on things like a possible budget, research where you may want to live (neighborhood, schools, commute, etc.), and create your must-have list for your future home. Having all of these things in order before you start the home search will save you the headache later on in the home buying process.

What’s a Loan Officer?

When you think about buying a home, the first person you’ll think about is a Real Estate Agent. That’s great because you should find professional help to assist you in navigating this process. A Real Estate Agent will be able to help you find your dream home, advise you on things like what other homes nearby are selling for and advocate for you in the negotiating process .

But did you know that a Real Estate Agent is just one part of the equation? The other professional you’ll need to find for your team is a Loan Officer.

A Loan Officer is someone who works for the bank or lender you are going to be borrowing money from to pay for your home. You may think that this should be someone far removed from the experience of finding your dream home, but having an experienced and reliable Loan Officer on your home buying team is a game-changer and will make your Real Estate Agent feel far more comfortable showing your homes.

Things a Loan Officer does:

Talks with your about your financial goals
The expert that will educate you on what your mortgage is and how it will affect your financial situation
Takes down all your financial information to determine what the best loan product is for your unique situation and how much you qualify to borrow
Evaluates your finances to determine your eligibility for a pre-approval
Advocates for you in the negotiating process and helps assist you in creating the perfect financial offer on your home (alongside your Real Estate Agent)
Works to ensure that you’re getting the best possible experience so that you don’t have to stress more than you likely already are
Works with their operations staff to get your loan approved and get you to closing table
Stays in contact throughout the years to act as an advisor and aide in situations such as refinancing, second homes, and more as your home and financial situation changes.

A Loan Officer is the expert on the financial aspect of the home buying process. When you find your Real Estate Agent, ask them for recommendations on a trusted Loan Officer or do your research to find a Loan Officer who is right for you. If you find a Loan Officer first, they can help you find a trusted Real Estate Agent as well. Your Loan Officer is more than a voice on the phone demanding to have your credit score, they should be an ally in your home buying experience.

The Consult

Once you find both a Real Estate Agent and a Loan Officer let them help you. You shouldn’t go through this process alone and communicating everything to the professionals will help you remove any unnecessary stress.

The consultation is a no-pressure meeting where you get to know your Loan Officer and/or agent and they get to know you. Expect to answer questions about your work situation, your current financial situation, your financial goals, what your dream home is and more. These questions may seem invasive and personal, but the ability for your lender and agent to understand your wants and needs as well as your current situation is crucial to determining what the best path forward is for your home buying experience.

The Pre-Approval

You’ve probably heard this term thrown around before and have a vague understanding that it’s something you should have when you buy a home. But what is it? What’s the difference between a pre-approval and a pre-qualification? How do you get a pre-approval? Who should you get it from? Well let’s find out.

What is it? A pre-approval is an estimate from your chosen bank or lender on how much you will be approved to borrow for a home loan at a specific interest rate. This is received after a financial background check and can be used to show sellers you are a reliable and serious buyer. A pre-approval is not your final mortgage agreement, but the process of getting one is similar to your mortgage application.

What’s the difference between a pre-approval and a pre-qualification? A pre-qualification is the lite version of a pre-approval and holds far less weight with Real Estate Agents and potential sellers. This is a very rough estimate of what you could be approved for based on the information you provide yourself without official documentation and a soft credit check. A pre-qualification takes little time to complete whereas getting a pre-approval is similar to a final mortgage application and requires official documentation. The pre-qualification could help you to narrow down a rough budget while a pre-approval will give you a near-exact number on your home loan and help you win an offer on a home.

How do you get one? A pre-approval is something you get from your Loan Officer or lender. Today, most people can get a pre-approval through a short online process. If you prefer to discuss things face-to-face, many experienced loan officers will be able to tell you whether you could be pre-approved for a loan after a quick consultation.

To receive your formal pre-approval letter, you’ll need to submit some documentation such as W-2 forms, your most recent pay stubs, bank statements, etc. Your lender will run through all your submitted documentation and pre-approve you for a specific amount, interest rate and loan program. This is NOT your final loan amount or mortgage agreement. This is an estimate and show of good faith in you as a borrower.

Who should you get it from? When applying for a pre-approval, it’s important to consider where you’re getting one from. Not all pre-approvals are valued the same. Check with your Real Estate Agent for guidance on where to go for a solid pre-approval that will hold weight with a seller’s agent. It’s also a good idea to shop around to see what different lenders can do in terms of loan program and rate. Find the best one for you and go from there.

The first steps of the home buying process are all about research and preparation. Understanding your financial picture, assembling a strong home buying team of professionals, and getting your pre-approval will set you up for success. Once you have assembled your professional home buying team and received your pre-approval, it’s time to move on to step two; Finding your dream home!

Remember, knowledge is power and having power in the home buying process will help to create the best experience. Leave all your worry and stress at the door because with the help of your Real Estate Agent and Loan Officer, the home of your dreams is within reach.

5 Things We've Learned In 2020

Wed, 23 Dec 2020 13:00:02 GMT

Well, here we are. This same time last year we were all talking about having 20/20 vision and the big dreams and goals we had for the upcoming year. We were celebrating huge milestones, flying across the country to conferences filled with motivational speakers and goal setting workshops, and sitting in crowded rooms without a care in the world. Let’s call a spade a spade, we had no idea what this year had in store for us and the world and were blissfully optimistic about our future.

Fast forward and we are 10 months into COVID-19, a global pandemic that has transformed all of our lives. Whether you have found yourself working in a makeshift kitchen office, running a homeschool for three kids in three different grades, just trying to figure out how to make it to the end of the week, or have lost more than you could have ever imagined; the good news is you’ve made it this far.

Yearly we sit down and look at what the last year has brought us. We evaluate what went right, what went wrong, and where we are going next. After a year that seems to be filled with nothing but things going wrong, we’ve found some things that have gone very right. There are still things to celebrate, things to be grateful for, and perhaps most important things to look forward to.

5 Things We've Learned In 2020

Hold on to Hope - When everything goes to the toilet, you need to find a shred of hope to hang onto. The hope you find could be in something bigger than yourself or something as small as sunlight and hot coffee in the morning. We have found the most hope in gratitude. We spent a lot of time this year looking for all the things we were grateful for and found that just 5 minutes of practicing gratitude daily gave us more hope. (gratitude blog ) . A little more laughter, a little more love, and a little more smiling can make the biggest difference even on the darkest days.

It’s Okay To Slow Down - while keeping up with the competition is important, it’s also important to take care of yourself. In 2020, we all were forced to halt everything and slow down. In the beginning, slowing down meant stay-at-home orders and lots of banana bread. (Oh how naive we all were last March). However, as COVID-19 progressed, we all realized how important it is to allow ourselves to slow down and care for ourselves. If we can carry something into 2021 with us, it’s the knowledge that rest is good and is something to be prioritized.

Everything is Bigger Than Yourself - COVID-19 forced all of us to take measures that not only benefited ourselves but saved the lives of those around us. Working to help families find a home is more than just a job, it is giving others the security, safety, and comfort of a place to live. In the housing industry we’ve been incredibly fortunate that professionally this year has been quite amazing, but having the most successful year of your career doesn’t mean much if you’re not using it to give back. Everything is so much bigger than any of us individually and realizing that can help all of us find purpose in everything we do.

Flexibility is Key - Could anybody have predicted that Zoom would take over our lives? Definitely not. There was no way for us to know what was coming for us in 2020, but what we did when it came is defining. From hours of Zoom calls, optimized e-closing systems, virtual home tours, and Tik Tok’s Fairway was able to keep up with business while also improving the experience of it for our customers. If you aren’t able to adapt to the times, you’ll be left behind; COVID-19 or not.

You Can Never Have Too Many Sweatpants - Need we say more?

What We've Accomplished in 2020

In a year that has been unforgiving to most, we find ourselves in an awkward position. The housing industry has had a record-breaking year. It’s difficult to reconcile continued success in a season where the people around you are experiencing the exact opposite. We think it’s important to understand our position in all of this while also being proud of what we have been able to accomplish. So here is a shortlist of all the things Fairway Mid-Atlantic has done in 2020 as a region.

Have helped hundreds of families achieve homeownership
Donated a portion of our profits to charities and non-profit organizations monthly
Added 20+ new faces to our team in the Mid-Atlantic
Broken our regional records over and over again
Launched this website! And our YouTube Channel
Connected with our entire team over zoom more times than we ever could have in-person
Hosted virtual educational webinars to serve real estate agents and our regional team

We are privileged to say that we have been able to cross off all of the goals we set for 2020 and then some. This year has pushed us to our limits but has also brought us back to the core of why we do what we do. We strive to create a mortgage process that is people first. In a year where so many have struggled, we have made it our mission to help as many families as possible in finding their dream home while creating the best experience possible.

Our Forecast for 2021

2021 is finally just a couple of weeks away and we couldn’t be more thrilled. We know that January 1st isn’t going to bring us a clean slate, but it is a clear and definitive fresh start. Just like any year, we are sitting down and dreaming up big goals.

Freddie Mac is projecting the same low interest rates to continue through 2021. As the economy continues to improve and home sales continue to grow, it’s still a great time to consider starting the homebuying process. If you’re just starting your search, Check out this video on what the process looks like from start to finish. Or watch this video to bust some myths that may be holding you back from becoming a homeowner.

The bottom line: 2021 looks like more of the same. We are continuing to set big goals and finding innovative ways to create the best experience possible. We are excited to continue growing our team and help more families than we ever have accomplished their goals of homeownership.

How To Set Your Goals for 2021

Having a new year's resolution is great, but resolutions only work if you have a plan in place to achieve them. Setting goals can help you to plan for your future, but it also gives you something to look forward to and celebrate once you accomplish them. They help us grow by pushing us to establish new habits and break old ones that aren’t helping us get to where we want to go.

If 2021 is more of the same, why should we even bother? What’s the point of setting goals during unprecedented times such as these? These are questions you may be asking yourself as we count down to the new year. Here’s what we think.

We think that 2021 is still a fresh start. January 1st will be a brand-new day to a brand new year full of possibilities and the unknown. Nothing has ever been promised and while we can’t predict the future, we do know that it’ll always be unpredictable.

When you’re setting goals for 2021, make a plan for how you’ll be taking care of yourself. Consider how flexible you should be with your timelines or expectations. Think about the steps you will need to take to stay motivated when it becomes too difficult. While we can’t control the way the world will turn in the future, we can control how we prepare for and respond to it.

Keep dreaming big dreams and pushing yourself to new limits. Don’t let the setbacks of 2020 define the rest of your story. We are excited about the prospect of a fresh start and encourage you to join us in setting some big goals for 2021.

Making a Budget for your Financial Goals in 2021

Wed, 09 Dec 2020 13:00:02 GMT

If we have learned one thing in 2020, it is that no matter how much we plan and prepare for our future, we can’t control everything. If you walked into this year with big plans and audacious dreams only to be knocked down a few pegs by this global pandemic, it’s okay.

So, what do you do when you’ve been thrown off course and your goals seem further away than ever? How do you get your finances in check when they’re anything but certain? Is it even possible to create and stick to something like a budget in 2021?

Whether you’re trying to build out your emergency savings, planning for retirement, looking to buy a house, or even just need to get your Starbucks habit in check, there is a way. If you’re entering 2021 with more big plans and audacious dreams, then it’s important to make a plan that is flexible and realistic. Making, planning for, and sticking to a budget to reach your financial goals (even in the midst of a global pandemic) is possible.

Ask Yourself Hard Questions

As you start planning make sure to think about what you want financially in 2021 and beyond. Budgeting and planning for your short-term and long-term financial goals shouldn’t be a daunting task.

Thinking about what you want in terms of financial goals can be a hard question to ask yourself and potentially a scary question to answer. Start with the big and scary goals and work backwards. So, say your big, can barely imagine it goal is to own a home. Okay cool, now answer some more questions and break that down. What is your current financial situation? What kind of home do you want? Do you have a deadline for this goal? How much would you need to save to realistically be able to pull it off?

Maybe your goal is to pay off your student loans. How long will that take? Can you pay more to shorten that time? Where can you save?

Maybe you want to splurge on something nice like a new TV. Or maybe you want to build up an emergency fund. Maybe you just want to get a better hold on your finances.

Whatever your financial goals are, write them down. You’re far more likely to accomplish them if you consistently see them in front of you.

Get Real About Your Financial Goals

Every goal, financial or not, requires you understanding what it will take to get there. Some may have you believe that the new car they just bought took little effort and no pain, but that’s never the case. Getting real about your current financial situation and what your goals entail helps you set realistic and achievable goals.

What It Really Costs To Buy A House

Not everything is as it seems; it’s imperative to understand the costs associated to your end goal so nothing takes you by surprise. New homeowners often say they didn't know about the fees associated with buying a house or didn't fully understand all of their financial options so they pushed their goal of homeownership out further than necessary. Below we break down the costs associated with buying a house that you may or may not have thought about.

Down Payment - As we’ve said before, you don’t need to put down 20% in order to buy a home. That misconception could delay your home buying process by years, and that’s 100% avoidable. Read more about home buying myths here

Mortgage Closing Costs - Closing costs consist of most of the costs that go into obtaining a mortgage. This includes fees paid to settlement service providers such as lawyers or closing agents, upfront fees such as mortgage insurance premiums and/or homeowners insurance premiums.

Moving Costs - Are you going to hire a mover? Do you need to buy furniture for your new home? Make sure when you’re thinking about your home-purchase budget, you account for things you need aside from buying the actual home.

Home Maintenance - Buying a house is an incredible way to build wealth but unfortunately things do break now and then. You need to budget for home repairs as they arise.

Start Budgeting

No matter what your goals are you must have a plan in place to achieve them. Sit down and write out a budget. Acknowledge every expense you incur monthly, so you know just how much expendable income you have to save towards your financial goals.

Give yourself two-to-three months to track your monthly expenses and notice patterns. Once you have a better idea of how much is coming in versus how much is going out, and you’ve decided on your goals, it’s time to make your budget. Cut where you can and commit to it. Sticking to a budget is hard. It’s a new habit you aren’t used to and may leave you feeling a bit restricted. Remember, you don’t need to be perfect and it will take some time to get used to. It takes 21-days to establish a habit and 90-days to make it a regular part of your life.

There are many ways to budget and you may need to try several different methods to find the perfect one for you. Looking for a place to start? Download our free budget sheet and quick tips here!

Once you have a good idea of what your financial goals are and how you'd like to budget for them, let’s work towards them together!

Thanksgiving Recipes for Two

Mon, 23 Nov 2020 13:00:03 GMT

Thanksgiving for Two

Thanksgiving is right around the corner and we recognize that it may look a little different this year for everyone. Whether you’re celebrating within your own bubble, or safely at home by yourself, we have some ideas to help keep this holiday special.

Below is our curation of recipes that are easy to make, fit for just a few, and as delicious as ever. We also know that cooking is not for everyone, especially this year, so we’ve found some good places across our Mid-Atlantic region that are doing Thanksgiving to go!

Cheers!

https://moms-mimosa.com/caramel-apple-cider-mimosas/ (Image credit to moms-mimosa.com)

It’s important to make as many special moments as we can this year, so we are toasting the occasion with a simple seasonal drink that you can mix and match to your taste. A little twist on the classic mimosa, swap the orange juice for some apple cider or pomegranate juice. Spruce it up with an apple slice, pomegranate seeds, or any other fruit to make it bubbly. Skip the booze and use ginger ale instead. This drink is really whatever you want to make it. Whatever you do, raise a glass to all that you’ve been through this year and the things that you’re most grateful for.

Insta Worth Snack Boards

https://www.halfbakedharvest.com/how-to-make-an-easy-holiday-cheese-board/

One good thing to come out of 2020 is the mastery of the cheese board. While you’re getting busy in the kitchen with all the side dishes and making sure your bird reaches the perfect temperature, you’ll be so glad to have a board of quick bites to keep you satisfied until the big meal. Not only is it tasty, but it’s pretty too. This is another quick and easy fix that you could pull together with whatever you have on hand.

Savory Boats

https://www.foodandwine.com/recipes/overstuffed-twice-baked-potatoes

A twist on a cult classic. If you don’t have the crowd for your famous homemade mashed potatoes, use only what you need for the same amazing taste. Mix in some cheese and bacon bits and you’ll wonder why you ever ate anything else before. This one is easy to make and perfect for 1-2 people with an extra punch of savory goodness.

Have Your Pie and Eat It Too!

https://www.pillsbury.com/recipes/apple-pie-crescents/bebb6148-6e4a-441d-9212-f435d974dcc6

What’s thanksgiving without the pie?! Maybe you don’t want the usual 3 pies you have this holiday to stare at you all day and the days to come (but really, eat 5 pies if you want. You deserve it). If you want to satisfy that sweet tooth with the same holiday taste, opt for these bite sized apple pie croissants. They’re easy, you can make exactly what you want, and the cleanup is so much faster.

Thanksgiving To-Go

If you usually look forward to your grandma’s home cooking or are given dish-duty every year, we’ve got you covered. Check out these DMV and Delaware restaurants that are serving up all the goods in 2020 fashion.

Washington D.C. - https://www.washingtonian.com/2020/10/23/best-dc-area-restaurants-for-thanksgiving-2020-takeout-and-delivery/

Baltimore - https://baltimore.cbslocal.com/2020/11/16/where-you-can-get-a-dine-in-or-takeout-thanksgiving-dinner-in-baltimore-this-year/

Maryland - https://www.gayot.com/restaurants/best-marylandsuburbs-md-top10-thanksgiving-dining_34md.html

Virginia - https://northernvirginiamag.com/food/food-features/2020/11/06/where-to-order-your-thanksgiving-meal-to-go-in-northern-virginia/

Delaware - http://firststateupdate.com/2019/11/delaware-restaurants-open-for-thanksgiving-dinner-take-out/

Whatever your plans are this holiday season, stay safe. Remember to acknowledge and appreciate the things you are grateful for even in 2020. There's always something to be thankful for, and finding that something can be enough to carry you through.

Happy Thanksgiving from our Fairway family to yours.

How To Stand Out as a Competitive Buyer

Wed, 18 Nov 2020 13:00:03 GMT

The Housing Market is Hot

Winter is coming but the housing market is showing no signs of cooling down. With record low rates, competition for your perfect home is at an all-time high. That begs the question, how can you set yourself apart as the most competitive buyer?

Well, you’re in luck! We have 6 tips on ways to do just that. With a little preparation, some flexibility, and a personal touch your dream home can be yours for the taking.

Research, Research, Research.

If you are entering into the housing market right now, you’ll want to have a solid idea of what you want before you even start looking. Nail down exactly how many bedrooms you need, look into the school district and neighborhood life, and know your budget. The typical home across the United States spent just 53 days on the market in October 2020, which is 13 days less than the same time in 2019. There’s little time to make big decisions, so do your homework early and be certain of what you are looking for.

Get Pre-Approved

This is arguably the most important thing you can do to show you’re a serious, reliable and qualified buyer. A pre-approval from a lender shows sellers that you have the money to buy and that the deal will not fall apart due to a mortgage contingency. The pre-approval process gives your lender the ability to look at your complete financial picture by acquiring documentation of things like income, credit history, assets and more. Following a full review of your income, assets and liabilities, you’ll get a letter that you can use when shopping for a home outlining the estimated loan amount you’ve been pre-approved for. Don’t let the process stand in your way, it’s really very simple these days. A Loan Officer can walk through the information with you over the phone or you can even complete it online simply by using our apply now link and choosing your loan officer.

Think Big, Not Small

Buying a home is one of the largest financial decisions of your life. We get it, things like kitchen hardware and floor finishing's can set the tone for what could be your forever home BUT in a market like this, it’s important to focus on the big picture. If a home ticks off all the major items on your wish list (i.e. an extra bedroom, finished basement, and great outdoor space) then maybe it’s okay to overlook the outdated railings and brass doorknobs; you can always update those later. Don’t pass up what could be your dream home for minor renovations you can do yourself!

Bring Back Up

Finding experienced professionals to vouch for you is a huge help. During the home buying process, it’s important to find both a Real Estate Agent and a Loan Officer to help you through every step of the process. Your agent can help you in assessing the market and putting together a competitive offer, and your lender can speak to your finances and reliability as a buyer directly with listing agents and sellers. You shouldn’t have to do it alone, and you absolutely don’t have to.

Come in Strong

Making the perfect offer is dependent on the kind of market you’re in. A buyer’s market means inventory is high with less competition, a seller’s market means less inventory and a lot of competition. In the case of 2020-21, we are in a seller’s market. Making a soft offer before showing your best hand could be detrimental to your chances of snagging your dream home. Consult with your real estate agent about creating the best offer you can, considering your budget, the current market, and your flexibility. It’s also good to think about how much you can put towards a down payment or if your budget allows for an offer above the listed price. Again, consult with your Real Estate Agent and Loan Officer to create the best plan of action for you specially.

Add A Personal Touch

Selling a home is tough. The seller of the home you’re looking at has likely created their own stories and memories in the place they’re letting go of. Taking some time to write a personal letter to the seller can really go the extra mile. Explain what you love about the house or the neighborhood and a little bit about yourself. This will show the seller that you’re excited about the home, have only the best intentions, and that you appreciate their experience there. In a pile of offers, this can really set you apart.

The most important thing to remember is to step back and enjoy the process as best you can. Having an experienced Real Estate Agent and Loan Officer on your team to support you can take a lot off your plate and make certain that your home buying experience is a positive one.

If you are looking for someone to stand in your corner, contact us today to see how Fairway Mid-Atlantic can help you secure the home of your dreams.

How Practicing Gratitude Can Change Your Life

Wed, 04 Nov 2020 13:00:02 GMT

Hello cold weather, football games, turkey trots, and grandma's homemade stuffing. It’s the start of the holiday season and you can almost feel hope in the air.

2020 has run us all through the ringer. From natural disasters and a global pandemic to rising tensions and a general feeling of uncertainty, this year has been nothing short of a rollercoaster. So how do we prepare for the season of thanks when so much seems to have gone wrong?

Our proposal, lean into it whenever possible. This season is all about giving thanks and giving back. When everything goes wrong, we can focus on the little things that are still good.

Practicing gratitude is not only simple, it’s proven to be life changing.

What Is Gratitude?

Gratitude, as stated by the leading scientific expert Robert Emmons, is an affirmation of goodness. The word itself comes from the latin word “Gratia” which translates to grace or graciousness. Practicing gratitude allows us to recognize the goodness outside of ourselves and appreciate the people or things that brought it into our lives. Not only does it increase our own happiness, but it encourages us to give the same experience to others.

Now you may be thinking, “well of course I am grateful for this and that, but why does it matter?”

The Benefits of Practicing Gratitude

Increases happiness, joy, optimism, and other positive emotions
Reduces anxiety and depression
Strengthens the immune system and encourages healthy behaviors
Better sleep
Strengthens relationships with others

Practicing gratitude is more than being aware of the positive things in your life, it is the practice of actively seeking out the good in every day. Rather than focusing on the big picture; like being grateful for your health and family, it’s being grateful for the little things. Things like the cute fuzzy socks on your feet or a smile from a stranger.

Finding little things in our everyday lives not only allows us to feel small doses of joy, it encourages us to recognize the good in everything every day.

How to Practice Gratitude

The thing about practicing gratitude is it’s simple. It doesn’t have to be a huge add on to your routine, rather an intentional moment or moments throughout the day. There are so many different ways to practice gratitude; if one idea doesn’t seem like your jam, you have options.

Keep a Gratitude Journal - or Post-It Notes or iNotes, whatever works for you. Take 5 minutes every morning or night to list 3-5 things you are grateful for. Think small. Comb through your day and pick out the little moments that brought you joy. As you continue to practice this, you will find that narrowing your list down to just 5 little things you’re grateful for is hard. The more we look for the good, the more we will find it.

Gratitude Letters - Write a letter to someone you are grateful for in your life. This can be a family member, a friend, a mentor, etc. Take 10 minutes to physically write a letter expressing why you are grateful for that person, how they have helped you specifically, where you are now and why you’re thinking of them. Boost the experience of this exercise by delivering the letter in-person so you can spread the joy.

Gratitude Walk/Meditation - Add 10-20 minutes to your morning routine to go on a walk or do a mediation practice centered in gratitude. If you’re going for a walk, you can think about or say aloud the things you’re grateful for or recognize the things you see on your walk that you can be grateful for (i.e. sun rays or birds chirping). If you’re doing a meditation practice, hone in on a person, thing, and/or moment that you have immense gratitude for. There are lots of guided walks/meditations that you can find online!

Our Challenge to You

We hope you have learned a little more about the benefits of practicing gratitude and have an idea of how you can start to implement a practice into your daily routine.

Practicing gratitude is so beneficial to our wellbeing that we want to challenge you to join us in a 5-Day Gratitude Practice. During these 5 days, we challenge you to participate in keeping a gratitude journal. Each day, you will spend 5 minutes meditating on and writing down 3 things you are grateful for that day.

Follow along with us on our Instagram @FIMCMidAtlantic for daily prompts, our own gratitude list, and fun extras. (Starting Nov. 9th)

5 Scariest Home Buying Myths: Busted

Wed, 21 Oct 2020 13:00:02 GMT

Don't Believe Everything You Hear

Scared to swallow watermelon seeds ‘cause a watermelon will grow in your stomach? Maybe you’ve been extra careful not to swallow your gum or else it would be stuck for 7 years. Or what about waiting 30-minutes after you eat to swim? We all believe in small myths that influence decisions we make everyday.

We recognize that the home buying process is cited as one of the most stressful things someone will go through in their lifetime. With little-to-no basic education about the home buying process, no wonder there are so many myths surrounding it.

Well, look no further! We’re breaking down 5 of the most common home buying myths so you can finance your dream home without all the stress.

Myth #1 - A 20% Down Payment is a Must

Nope. This myth comes from the interest of the banks. A 20% down payment acts as insurance in case a borrower were to default on their mortgage. Over time, the mortgage industry has developed many programs and products that assist with down payments and make it more affordable upfront.

FHA loans, or loans backed by the government, require as low as a 3.5% down payment, conventional loans start as low as 3%, and specialty VA loans offer assistance to military families as well. USDA loan products offer 100% financing for eligible borrowers and properties. There's a variety of options available for any situation.

With rising student loan debt and the increase in home prices, saving for 20% can feel nearly impossible, but the good thing is that it’s not the rule.

Myth #2 - I Need Perfect Credit

No again. Who even has perfect credit?! While your credit score plays a big role in determining your loan amount and rate, most lenders require a median FICO score of 620 with some loan programs dipping lower.

Along with a lower minimum credit score, lenders can use other forms of credit as well. This could be past rent and bill records or your student loan repayment history.

For more information on credit and the home buying process, check out our blog on Understanding Credit here

Myth #3 - Renting is Cheaper

Definitely not! Paying rent is actually just paying the mortgage of the landlord (plus some). Most people will dedicate 30% of their monthly income to rent. Add in utilities, insurance, car payments, groceries, etc. there’s little left to be put in savings.

Buying a home is a big purchase for sure, but it is also an investment. Paying your own mortgage allows you to build equity, which contributes to your wealth, and your ability to buy a new home down the road. If your home value has increased over time, you will eventually be paying less in mortgage payments than you would be renting for years.

Myth #4 - It's Not The Right Time To Buy

So, when is it the right time? Some will have you believe that you have to buy in a specific season or month, others will say it’s all about the rates. The truth is, it’s all about you!

The best time to buy is whenever you feel the most confident and ready. Buying a home is a HUGE decision! The weather outside or the small change in a percentage shouldn’t stop you from moving into your future home. Make a plan for how you’ll save up, find trusted professionals to guide you along the way, and find the right time for you.

Myth #5 - I Don't Need Help

Yes, you do! You can find everything online today. You could have the idea to start a business one day and be up and running in the next all because google had every answer. That’s not the case with buying a home!

While you should definitely do your research, including professionals who know the process inside and out takes most of the pressure off of you!

Finding a Real Estate Agent and a Loan Officer you trust is a must! Working together, these two professionals can help you find the home of your dreams, a budget that works for you, and a speedy process with as little stress as possible.

BONUS MYTH - All Lenders Are The Same

Absolutely NOT! Just like you will shop around for the right home for you, you should shop around for the right lender for you too.

Lenders vary in many ways, from product options to service, speed and technology; and finding the right fit is imperative to finding the home of your dreams. A lender should want to know all about you and your goals, not just your budget.

We hope we have busted some of the home buying myths keeping you from buying your dream home. If you are ready to take the next step, contact us today!

Breast Cancer Awareness Month

Wed, 07 Oct 2020 13:03:59 GMT

Be Prepared

Fall is upon us and that means time to prepare your home for the cold. As we get our homes ready for winter and do all necessary checks and maintenance, it’s imperative we also remember to take care of ourselves.

October is Breast Cancer Awareness Month and it’s critical we all do our part to raise awareness. Here are some stats on the prevalence of breast cancer in the U.S.

• According to breastcancer.org, about 1 in 8 women in the United States will develop invasive breast cancer over the course of her lifetime.

• While the risk for women is exponentially higher, women are not the only ones at risk. It is estimated that about 1 in 883 men will develop invasive breast cancer over the course of his lifetime.

• It is estimated that approximately 30% of all new cancer diagnoses in women will be breast cancer, making it the most commonly diagnosed cancer among women aside from skin cancer.

Just as we can’t fix everything in our homes without the advice and guidance of a professional, that is that same for you and your health! At home self-checks are a great first step, but make sure to follow all doctor recommendations. If you have any health concerns, please consult a medical professional.

Below, check out some things to look out for in terms of your home and health this fall.

Home Maintenance Checklist

1. Bring in your outdoor furniture

2. Drain your outdoor faucets and turn off your exterior water lines

3. Clean out your gutters

4. Check for drafts and seal your windows

At Home Breast Self Check

1. Look in the mirror for visible changes in your breasts standing straight on, then with your hands on your hips and again with your hands over your head.

2. While lying down with a pillow behind your head use your index, middle and ring fingers to feel your breast for any lumps

3. Examine the areas surrounding the breast

4. Repeat the exam each month at the same time

If there is anything you need assistance with as you prepare your home for the cold, please contact us!

If you are looking for more information on breast cancer, some great resources are:

Breastcancer.org

Team Hope

American Cancer Society

Fairway Mid-Atlantic is donating $5 for every closed loan in October., 2020 to Team Hope.

Home Buying Steps

Thu, 06 Aug 2020 15:02:07 GMT

Steps to Buying a Home

So, you’re thinking about buying a home but want more information on what the homebuying process looks like? We’re here for you! The homebuying process can seem overwhelming if you don’t break it down step-by-step. Once broken down, it is much more manageable and remember, we’re here to guide you each step of the way.

Step 1: Consultation

Thinking about buying a home?! Well you’re in the right place. Simply contact us and we’ll talk you through your homebuying goals, your financial goals and the steps we’ll take together to help you cross the finish line.

Step 2: Get Pre-Approved

Now that we’re on the same page with your goals, let’s get you pre-approved. In order to provide you with a true pre-approval, versus a pre-qualification, we’ll need to collect a few things.

1. A copy of your most recent paystub

2. The last 2 years W2s and tax returns

3. The last 2 months bank statements

Additionally, we will pull your credit so that we have an accurate picture of your financial situation. Once we have all of the necessary documentation, we can accurately tell you how much you can afford.

Step 3: Find The Perfect Home

This is the fun part! Go find the home of your dreams. Once you do, we’re here to help you make your dream a reality.

Step 4: Submit Application

Now that you’ve found your home, it’s time to truly apply for your mortgage. We can take your mortgage application in whatever way works best for you; over the phone, in-person, via our web portal or even through our FairwayNOW app.

We’ll need you to send over your most recent pay-stub and bank statements so that everything is up to date and accurate.

Step 5: Processing and Underwriting

Once you have completed your mortgage application, we will submit everything to our operations team. They will review the file, ask us for any necessary additional information and then approve your mortgage. At this point we will have a more accurate picture of closing costs and how much money you will need to bring with you to the closing table.

Don’t worry, there are many ways to structure the loan so that you feel most comfortable with your down payment, monthly payment and the cash needed to close.

Step 6: Pre-Closing

Prior to closing we will review the steps you need to take to get your money to the closing table. Make sure you talk with us before you send any money anywhere to avoid any sort of wire fraud scam. We have your back! Any questions you have on the homebuying or closing process, we can answer them and will make sure you are ready to go for closing.

Step 7: Closing

Closing day is here! You’ll sign all of your paperwork and your new home will be yours! Don’t forget to bring your photo ID and the cash to close.

We recognize that buying a home is the largest financial purchase you will likely ever make, and we don’t take that for granted. We are here every single step of the way to make sure you feel supported and confident in your decision. Mortgages are what we do, but to us the homebuying process is about people first.

Understanding Credit

Fri, 24 Jul 2020 14:54:56 GMT

Credit is one of the crucial factors when applying for a mortgage. Did you know, you have three credit scores from three different credit bureaus? We look at all three scores and use the median score for the homebuying process.

Your credit score tells lenders (hi, that’s us) just how likely you are to pay your mortgage on time every month and understanding what impacts your credit score is important as you start your journey to owning a home.

What Impacts a Credit Score?

Late payments in general as well as those that lead to charge-off’s and collection accounts
High credit utilization – typically using over 50% of your credit limits can decrease your credit scores
Numerous credit inquiries in a short time period can have a negative impact on your credit. Don’t worry us pulling your credit at pre-approval and at the start of the application won’t drastically hurt your score.
Too much – or too little – credit can also have a negative impact. You need a credit history to qualify for a mortgage, but you also don’t want to open lines of credit for no reason.

Here are some useful credit-related tips to help you prepare for the home loan application process:

Pay debts on time every month and avoid making late payments of 30 days or greater because they will adversely impact credit.
Be careful not to overuse credit cards
Avoid closing accounts with zero balances. It’s best to leave them open until they automatically drop off the credit report.
If there are outstanding collections, it’s best to work out a repayment plan with the collection agency and only agree to make payment in full if the collection agency agrees to delete the collection account upon their receipt of the full balance.

fairwaymidatlantic

Q1 Recap

Q1 2023 Market Outlook

A Look Back

Where We Are Today

Finding The Right Listing Agent For You

First Time Homebuyer Programs - What's Right For You?

Buying vs. Building Your New Home

Saving For a Home vs. Paying Off Debit

Mortgage Interest Rates: Some Perspective

Is Buying A Home (Still) Affordable

Back to Basics

Is Buying a Home Still Affordable?

Housing Market Update: Q2 2022

Is Spring The Best Time To Buy A House

Spring Market 2022

Tips For Home Buyers and Sellers This Spring

Home Buying Process: Green Flags

How Credit Affects The Home Buying Process

What Impacts a Credit Score?

How Your Credit Score Affects Your Mortgage Package

2022 Housing Market Update

Strong Purchase Market

Home Prices

Mortgage Interest Rates

2022 & Beyond

How To Prepare For Homeownership In 2022

What Are You Looking For?

Asses Your Finances

Research Agents & Lenders

Make Your Home Buying Plan & Go

Suburban Living Vs. City Living

Wilmington, DE Market Tour

Red Flags To Look Out For During The Home Buying Process

Spotty Communication

Lack of Photos

Home Maintenance Neglect

DIY Renovations

Rates Too Good To Be True

Rehoboth Beach, Delaware Market Tour

When Is The Right Time To Refinance Your Home?

Define Why You're Refinancing Your Home

Timing Is Everything

The Benefits of Refinancing

Timing Is Everything

Understand All Your Options

Selling Your Home in 2021

Don't Take Advantage

You're Allowed To Be Picky

Don't Skip The Small Stuff

You'll Be On The Other Side Soon

The Cost Of Waiting

New Construction Vs. Existing Homes

New Construction

Pros

Cons

Existing Homes

Pros

Cons

What Does Homeownership Mean To You: Home vs. Investment

How To Continue Practicing Balance After The Pandemic

5 Things You Should Know Before Buying Your First House

What Do You Want In A Home?

Find Your Real Estate Agent

Making A Down Payment

Home Inspections

Speed Is Everything

Housing Market Forecast 2021:Industry Changes & Future Outlook

Federal Housing Finance Agency (FHFA) Director Change

Second Home and Investment Properties

Federal Housing Administration (FHA) Changes

Mortgage Interest Rates ﻿

Inventory

Benefits of Homeownership

Anatomy of Your Monthly Mortgage Payment

Prinicpal & Interest

Taxes

Insurance

Other Fees

The Home Buying Process: Closing

Mortgage Interest Rates