Locking in favorable terms with a fixed-rate mortgage. As of this writing, interest rates are at their historical rock-bottom. Receiving a fixed-rate mortgage lets you potentially lock in the most affordable terms we’ve seen.
The Money-Saving Secrets of the Home Purchase
If you’re tired of throwing rent toward the landlord, you can keep some of that money by putting it toward the principle of your very own home mortgage. Why bother? Here are some of the money-saving secrets that homeowners can enjoy:
Get pre-approved for a mortgage to do your research first. Ready to shop around? There’s no pressure. Get pre-approved for a mortgage and find out how much home you can afford—these are essential next steps that convince a home seller that you mean business.
Buy the home you can afford. When you know your total monthly liabilities, your income, and your credit rating, you can easily calculate just how much home you can afford. This will help ensure that you buy a house that remains a long-term blessing and not a strain on your budget.
The Stats: What You Need to Know Before You Buy a Home
Homeownership is common. In fact, statistics from 2019 show that the homeownership rate was a staggeringly high 64.8%, which means the majority of people have gotten out of the rent cycle and into their own home.
You don’t need experience. First-time home buyers constitute one-third of all home buyers, which means that you don’t have to feel intimidating by the home buying process, even if it’s your first time. It’s far more common to be going through this process for the first time than you might imagine.
The average length of time is low. Have house fever? You’d be surprised how quickly things can move. The average length of time between someone visiting a potential home for purchase and the closing date was only 73 days, or two and a half months.
Are you interested in finding out if a home purchase makes sense for you? Are you ready to join the ranks of homeowners and lock in potentially low rates?
2 Ways to Use Your FHA 203(k) Loan
Buy a Fixer-Upper (and Fix It Up)
Or... Renovate Your Current Home!
I recently moved to California for a job relocation and was very unfamiliar with the market and process. Lamar was a fantastic resource for me and my family! He was very thorough in all of his explanations about the process as well as helping to keep me up to date on any deliverables that I needed to provide. He kept up with me and provided regular updates so that I never felt behind on any task and I never felt as if anything came up without a complete explanation. He was also available to me at irregular hours which was very appreciated as we were on a tight timeline. Thank you for the great experience!- Benjamin Katchman
Lamar and his team were extremely knowledgeable and helpful from beginning to end. My loan was difficult for reasons beyond Lamar’s control and he advocated for me as his client. Lamar and the team were patient and generous with their resources. I would highly recommend Supreme Trust Mortgage.- Cahlea Whaley
Lamar was very clear about the process, timely, professional. Lamar answered all my questions about the process. Every time I called or emailed he got right back to me, even on the weekends. When I first contacted him he was out of town and as soon as he landed he called me to get my information to to start my refinance. Within two days I was already in process. If you want a streamlined process go with Lamar. I was both pleased and surprised it went so fast. I would recommend him to all my friends and family.- Karreimah Sanders
Working with Lamar was amazing. He is very knowledgeable and helped guide me through the Refi process, which I knew nothing about. Everything moved quickly and he was always available for any questions or concerns of mine. I highly recommend Supreme Trust.- Jae Warren
Buying a house is awful. The labyrinth of bureaucracy and ridiculous administrative requirements are the stuff of nightmares. Luckily, Lamar helped navigate the purchase process with ease. He was patient, understanding, and most of all, incredibly knowledgeable and efficient. I can’t thank him enough and highly recommend him as a lending agent.- Michael Watkins
As a first time home buyer and someone who is self employed, the home loan process can be difficult. Lamar worked with me every step of the way to help me qualify with my unconventional income documents and ensured I got a great deal. In this extremely competitive market there were a few hiccups that could've been very costly for me, but Lamar was committed to making sure my loan got approved and my house closed. He worked late hours and weekends while I was out of the country and even got me lender credits to stay true to the initial loan estimate I was given. Without Lamar my first time home buying experience could've been a nightmare, but thanks to him I ended up in my dream home.- Michael Tornabene
Lamar’s advice and support through closing was invaluable. He was polite, available, friendly, and knowledgeable. We could not have done it without him.- Nisa Jackson
Your Renovation Wish List Could Include...
Increase window size
Bring in more natural light
Finish a basement or attic
Create a mother-in-law apartment or guest space
Correct foundational issues
Protect your investment for the long-term
Add a detached garage when one does not exist
There’s room for everyone
Knock down walls
Open up the floor plan to create versatile, welcoming spaces
Flood-proof your property
Add a retaining wall to prevent expensive damage
Repair the pool
Tired of leaks and cracks? Fix the pool & start enjoying it
Expand or refresh the kitchen
Cooking is just more fun in an updated kitchen
Add square footage
Growing your family? Grow your home alongside it!
After remodeling, 74% of owners have a greater desire to be in their home, and 65% have increased enjoyment in their home.
How Does a Renovation Loan Work?
Depending on the types of repairs you plan to do, you have two options when it comes to securing a FHA 203(k) Renovation Loan: Limited and Standard.
The Limited 203(k) loan
The Limited 203(k) loan is for non-structural or “cosmetic” repairs. It covers up to $35,000 in renovation costs. With a Limited loan, you can do nearly anything that doesn’t affect the home’s structure! Think kitchen and bathroom remodels, carpet and flooring replacement, painting, appliance replacement, and much more.
The Standard 203(k) loan
The Standard 203(k) loan is a loan for projects with repair costs over $35,000. It can be used for structural or non-structural repairs. With a Standard Loan, you have even more flexibility. You can expand the home’s footprint, improve accessibility for differently abled people, and even move the home to a different site.
What You Need To Know About A Home Purchase
Why should I buy a home rather than rent?
Everyone’s situation is different. However, in the era of low interest rates, a new home purchase can make financial sense for a lot of people. Locking in these low interest rates can mean paying less for more square feet in some cases. That said, every person’s situation is different, and your motivations for buying a home (including the need for more space or privacy) may differ from other people.
How do I start the home buying process?
One of the best ways to show that you’re serious about buying a home is to get pre-approved for a mortgage. This will give you some leeway when it comes to making offers when you view homes. And in some cases, it’s viewed as a necessity when you go out shopping for homes. In many cases, the process is as simple as finding out what you can afford given your current income, levels of debt, and financial obligations. The good news: it’s a lot simpler than you think!
What kinds of financial commitments do I have to make?
There are a lot of options for financing when you make a home purchase, so don’t feel that you have to commit to any particular one at this point. You’ll find that it’s possible to make a 20% downpayment, for example, but there may be types of financing available that require far less—as low as 3%, depending on your situation.
Why is now a good time to buy a home?
Although every situation is different, low interest rates tend to mean generous financing terms for people taking on a home mortgage. Having a mortgage with low fixed interest rates, for example, can be a powerful hedge against inflation in periods of higher inflation—where in the interest rates are typically higher. But we should reiterate that every situation is different, and you should do what’s best for your situation and your own family.
What is the next step?
Click through our buttons above to find out whether you qualify for great terms on a new home purchase!