1) What should you look for in a mortgage company when you are ready to get a pre-approval?
We’re currently living through the hottest market in real estate history. Rates are at all-time lows, houses have never been more in demand, and to get your offer accepted you have to find ways to stick out in a crowd. Buying a home is emotional and the FOMO (fear of missing out) can be real. If you choose the right mortgage planner, they’ll get you the information you need quickly and guide you on how to make your offer look strong compared to the others. Most importantly, they’ll close you on time with little to no stress. The team you put around you — attorney, realtor and mortgage planner — will dictate the experience you have. Choose wisely; your team matters!
2) What programs are available for renovation loans?
Renovation loans have been growing in popularity since we all started quarantining. A reno loan allows you to build any work you want to do to your house (even a pool) into your loan and draws are given after closing to help you pay your contractor as the work is completed. The most commonly used programs are the conventional HomeStyle loan and the FHA 203(k) renovation mortgage. Reach out to your mortgage planner if you’re considering this and they'll discuss the projects you want to complete, the cost, and what effect it would have on your monthly mortgage payment. Money has never been cheaper to borrow than it is now and home improvement shows are all the rage. It can help you turn your house into the perfect oasis for you and your family.
3) In COVID times, many people may have struggled to pay their mortgage. Could you still get approved for a loan if you are in forbearance?
The forbearance programs have been an ongoing and constantly evolving issue for the mortgage industry, especially during these times. Depending upon the type of loan you have, the options for coming out of forbearance and refinancing can differ. In a conventional loan, it can be as easy as catching up on the missed payments, or making three consecutive payments once the forbearance is over. An FHA loan could be much longer depending on the type of refinancing that you’re trying to do. Consult your mortgage planner before signing those forbearance papers to make sure you’re making the right decision for your future. If you can make your mortgage payment, always make it. Forbearance should only be used if it’s truly needed, not to just skip out on a few mortgage payments. The ramifications of utilizing it could affect the plans you have for your home in the future.
4) Any tips for our readers?
If you own a home, do look into refinancing if your rate is over 3.25%. There can be real tangible benefits to it. Don’t sit on the sidelines; this is the cheapest money you’ll ever be able to borrow in your life! Take advantage of it and put yourself in a better situation. You can buy your first home or investment property, or refinance to a lower term and pay your house off sooner. The benefits are endless in a market like this, but the worst thing you can do is nothing!
Brian Woltman is a Bridgewater native and a graduate of Bridgewater-Raritan High School and Monmouth University where he minored in Information Technology and received a Bachelor of Science degree in Economics. He currently resides in Mendham with his wife Marie and daughter Brielle. He has over fifteen years of experience in the mortgage industry and has recently received the following accolades:
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Mortgage Executive Magazine Top 1% Mortgage Originator in America 2019, 2020
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Scottsman Guide Verified Top Producer in America 2019, 2020
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National Mortgage News Top Originator in America 2019, 2020
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New Jersey Magazine 5 – Star Lender 2021
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Social Survey Top 100 Originator in America For Service Scores 2019, 2020
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