Articles

Keeping up with the latest mortgage trends

What NOT to Do During a Recession

In an uncertain economy or an actual recession, you may be facing important decisions such as whether to purchase a car, invest in a risky stock, or become a cosigner for a family member. There are financial risks that everyone should seriously reconsider during risky economic times, including:

 

  • Becoming a Cosigner: Even in the best of times, cosigning on a loan is very risky. If the person taking out the loan forgets to make a payment or is consistently late with their payments, it is your credit history that will be impacted and you could also be asked to make those payments. In an economic downturn, the risks are much greater since the person taking out the loan can lose their job. If you feel you have no choice and must cosign for a loan, it is important to set aside some money in case the worst happens.

 

  • Taking out an Adjustable-Rate Mortgage: When buying a new home, you may choose to take out an adjustable-rate mortgage (ARM). In many cases, this may be a good move, especially if interest rates remain low. If the economy begins to falter, and you lose your job and interest rates increase, your monthly payments will increase. Late payments or non-payments will have an adverse impact on your credit rating, making it difficult to obtain a loan in the future.

 

  • Taking on Debt: Taking out a loan for a car or home may not be a problem when the economy is doing well as long as you make enough money to cover your monthly payments and contribute to your retirement savings. However, if the economy takes a turn for the worse, your risk goes up, especially if employment is not stable. If you are considering adding additional debt to your financial portfolio, this could complicate your financial situation if you become unemployed or your income is reduced. In a worst-case scenario, you could even be on your way to declaring bankruptcy.

 

  • Taking Your Job for Granted: In an economic slowdown, even large corporations can come under financial pressure. While this may simply mean cutting out the open bar at the holiday party, it could also mean cutting the shareholders’ dividends or laying people off. Most jobs become vulnerable during a recession so employees should do everything they can to make sure their employer maintains a positive opinion of their work product.

 

  • Taking Risks with Investments: It is important to always be thinking about the future by investing money. However, a shaky or uncertain economy may not be the best time for an increased level of risk. For example, taking on a new loan to purchase a second home or to add another floor to your home may not be the best idea if the economy is uncertain. If business slows, which can happen during a recession, you may not have enough money at the end of the month to pay your installments on time.

Contact the Mortgage Company with All the Answers

Superior Mortgage Company, Inc. knows everything about residential and commercial loans and offers a wide range of products and services to give you the best options for your mortgage loan. Call Superior Mortgage Company, Inc. at 845-883-8200 or email sales@superiormci.com for additional information.

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Fair Housing Rights for First Time Buyers

Looking for your first home can be an exciting time. It can also be a frustrating time if your efforts to find your perfect house are blocked by unfair or unscrupulous practices. Under the Fair Housing Act, housing discrimination is illegal in almost all housing whether it is private, public, or housing funded by the federal government.

Although the Fair Housing Act covers most housing, it does not cover single family homes sold or rented by the owner without the assistance of a real estate agent, housing belonging to religious organizations, private clubs that do not allow occupancy unless you are a member, and owner-occupied buildings with under four units.

Discrimination is Illegal

HUD’s Office of Fair Housing and Equal Opportunity (FHEO) is committed to ending housing discrimination and promoting economic opportunity through their housing laws. If you think that you may have been denied housing because of your race, gender, family status, national origin, color, disability, or religion, in violation of fair housing laws, you can file a complaint with the FHEO. 

Some examples of discriminatory practices may include:

  • Refusing to rent or sell property;
  • Denying that housing is available;
  • Evicting you without due cause;
  • Discouraging you from buying or renting;
  • Harassing you;
  • Retaliating against you because you filed a complaint;
  • Imposing different sale prices or rent charges based on your protected status;
  • Attempting to stop you from renting or buying by using threats, coercion, or intimidation; and,
  • Delaying or ignoring maintenance requests.

Housing providers must make reasonable accommodations and can modify or replace existing structures to help disabled individuals, and certain multifamily housing must be accessible to people who are disabled through the Americans with Disability Act (ADA).

Discriminatory Mortgage Lenders

Mortgage lenders, such as Superior MCI, are committed to providing fair and equitable loans and other financial assistance to people who are looking for the perfect mortgage for their family. The Fair Housing Act also makes it illegal for any mortgage company to refuse to provide information on loans or impose different points, fees, or interest rates based on race, gender, family status, national origin, color, disability, or religion. 

Contact Superior Mortgage Company, Inc.

Superior Mortgage Company, Inc., specializes in residential and commercial loans. We provide a wide range of products and services as well as the best products and services available. Regardless of whether you want to purchase a first home, vacation home, or commercial property, we can help. If you are interested in refinancing your home or need a Home Equity Line of Credit (HELOC), we can help. Even if your credit is not where you want it to be, contact the mortgage company to obtain the information you need to make the best decision. Call us at 845-883-8200 or email sales@superiormci.com. We look forward to hearing from you.

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4 Things Every First-Time Home Buyer Must Do in Advance

Life takes you to amazing places, but it is your love that gets you home. Are you ready to buy your first home? It is natural to feel the stress, as you are taking one of the most important steps in your life. Let’s make your experience of first home buying worth the biggest and best purchase of your life.

1. Make Your Own Budget

Imagine, you are interested in buying a home, but the price quoted is unaffordable. It may leave you heartbroken. If you try to cobble up finances, it may add to your stress. Therefore, a first home buyer must determine the affordability before selecting a property. 

Start with your salary and find out how much you can repay monthly. Another important thing for a first-time homebuyer to consider is the down payment.  

The availability of online loan calculators makes it easier to plan your finances and get a clear idea of the amount to pay. It is advisable to restrict your mortgage liabilities to 30% of your income.

2. Consider Down Payment Assistance

The down payment varies from 3 to 20 percent of the house price. If you have not enough savings, explore the option of down payment assistance. Go through the details of eligibility, the pros, and cons of any such federal, state, county, and nonprofit program.

The assistance covers part of the payment or the full down payment. It can be of three types.

  • Down payment grants: You don’t have to repay the amount.
  • Forgivable second mortgage: It comes with zero-percent interest or a deferred repayment. 
  • Matched savings programs: It is a kind of matching grant. 

Check the eligibility, conditions, recapture period, and requirements, such as credit score and the debt-to-income ratio.

3. Get Ready for the Mortgage 

To apply for a mortgage, the first thing you need is a good credit score. It has a bearing on both the loan approval and the interested rate to be offered. Start by checking your credit reports. Even you can use online or offline resources to verify your credit score. If you see any discrepancy, get it corrected. Pay your balances and avoid the card for two billing cycles. Don’t apply for new cards until you buy your own house. It helps improve the score.

Next is preparing all your documents. You need to have the W-2 income statement by your employer, bank statements, and paystubs in order. If you are into a profession or business, you need last three tax returns to submit.

4. Start Mortgage Shopping

Contact different banks and lenders for mortgage pre-approval. It is free and does not impose any liability. Analyze the terms each offer. Consider both fixed and adjustable interest rates based on your tenure and the prevailing economic condition. Never forget to ask about mortgage fees. Ask them the charges for preparing documentation. Check both online and with local banks to see the difference between various mortgage quotes.

The excitement as a first-time homebuyer is discernible and you have a lot to think and do before finalizing your preferred home. With a proper, step-by-step plan, you can make it easy, free from any hassle, and an exhilarating experience to share with others.

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3 Things Every First-Time Home Buyer Should Do in Advance

Are you ready to buy your first home? It is natural to feel the stress, as you are taking an important step.  Make your experience of first home buying worthy of one of the biggest and best purchases of your life.

1. Determine Affordability Before Selecting a Property

Start with your income and figure out how much you can repay monthly. Another important thing for a first-time homebuyer to consider is the down payment.  

The availability of online loan calculators makes it easier to plan your finances and get a clear idea of the amount to pay. It is advisable to restrict your mortgage liabilities to 30% of your income.

2. Get Ready for the Mortgage 

To apply for a mortgage, the first thing you need is a good credit score Start by checking your credit reports. Use available resources to verify your credit score. If you see a poor rating, correct it. Pay your balances and avoid the card for two billing cycles. Don’t apply for new cards until you buy your own house. It helps improve the score.

Next prepare your documents. You need to have your tax information such as W-2 income statement by your employer, bank statements, and paystubs in order. If you own a business, you need to submit your last three tax returns.

3. Start the Mortgage Process

Consider checking with Superior MCI before you look anywhere else. We will be happy to meet with you and offer you the best rates available.

The excitement in being a first-time homebuyer is real. There is a lot to think about and do before finalizing your home purchase. With a step-by-step plan, you can make it easier, free from any hassle, and an exhilarating experience to share with others.

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First Time Home Owner Series: Should a Starter Home be Your Dream Home?

Just because you can afford a 2,500-square-foot home sitting on an acre lot doesn’t mean you should buy it. When shopping for a starter house, some first-time buyers will get pre-approved for a mortgage and then shop based on the maximum they can borrow. If the mortgage company said they can afford it, then why not go for the home at the top of the budget? But doing that can create a bad financial situation if the homeowner is struggling to pay the mortgage each month or if all of the money is tied up. If all of your money goes to maintain your home, you may quickly accumulate debt.

Experts say it’s best to stay in the home you purchase for five to seven years to recoup the costs and to see some return on your investment. Purchase a property you can afford. Instead of going all-in with your first home, opt for a more affordable starter home that won’t break the budget and leaves room for entertainment or unexpected life expenses that will undoubtedly arise.

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First Time Home Owner Series: What Features Should You Look For?

What are your basic desires concerning a home? Are you looking for a large kitchen? A big backyard? Lots of rooms to grow a family. 

What type of neighborhood do you want to live in? A quiet neighborhood – or one that is bustling with stores and people on the street late at night?

This may be the largest purchase you make in your life. You’ll want it to be one that you will be happy with for a long time. You deserve to have it fit both your wants and needs as closely as possible.

View lots of homes, and as you do, be flexible but keep your basic list of needs and wants firmly in mind. Don’t settle for a house just because it’s convenient. When it’s right you’ll know it.

At Superior Mortgage Company, Inc., we specialize in residential and commercial loans and provide the best products and services available. Whether you are purchasing, refinancing or in need of a home equity loan, and regardless of any credit problems, we can help you. Contact the company with the answers you need. Please call us at 845-883-8200. We look forward to hearing from you.

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First Time Home Owner Series: What Type of Home Are You Looking For?

Consider your long-term goals. Do you want the freedom and independence of owning your own home? Would you rather make mortgage payments instead of paying rent to a landlord? With your own home, you are your own property owner.

What options are there when purchasing a residential property? 

Consider these:

  • Traditional single-family home
  • Duplex
  • Townhouse
  • Condo
  • Co-op (housing cooperative)
  • Fixer-upper (Careful! This can wind up costing more than you bargained for)

Each of these options has pros and cons which need to be considered carefully in light of your goals.

At Superior Mortgage Company, Inc., we specialize in residential and commercial loans and provide the best products and services available. Whether you are purchasing, refinancing or in need of a home equity loan, and regardless of any credit problems, we can help you. Contact the company with the answers you need. Please call us at 845-883-8200. We look forward to hearing from you

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First Time Home Owner Series: Who Is A First Time Home Buyer?

According to HUD (US Department of Housing and Urban Development, a first-time homebuyer should be one of the following:

  • Someone who has not owned a principal residence for 3 years
  • A single parent who only owned a home with a spouse – while married
  • A displaced homemaker who only owned with a spouse
  • An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.
  • An individual who has only owned a property that was not in compliance with state, local or model building codes—and which cannot be brought into compliance for less than the cost of constructing a permanent structure.

Principal Residence: 

A principal residence is a primary location that a person inhabits. It does not matter whether it is a house, apartment, trailer, or boat, as long as it is where an individual, couple, or family household lives most of the time.

At Superior Mortgage Company, Inc., we specialize in residential and commercial loans and provide the best products and services available. Whether you are purchasing, refinancing or in need of a home equity loan, and regardless of any credit problems, we can help you. Contact the company with the answers you need. Please call us at 845-883-8200. We look forward to hearing from you.

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Home Appraisal Tips to Maximize Home Value 2

There are several things sellers can do to pump up the value of their home. The best advice is to be prepared before the appraisal takes place. Tips for increasing the value of your home include:

  • Vetting the Competition:  Research what homes are selling for in your area. You can access public property records through sites such as ‘Open Listings.’ Look at homes that are similar to yours that have sold in the last six months. Stay within a few miles radius of your home and look for homes with comparable square footage, layout, upgrades and condition.
  • Completing Minor Repairs and Fixes:  If you have a list of projects that need to be finished, do them now. These may be a running toilet flush, a squeaky door or a non-working garbage disposal. Although these are small details, they add up to the overall condition of your home. Take a tour around your home with a pad and pencil and take note of needed repairs.
  • Improving the Look of the Outside:  Your home’s exterior plays an important part in assessing its value. Always think of your home’s curb appeal. Repair any loose roof shingles or clogged gutters. Make sure the pathway to the garage and front door are clutter-free and well-lit. Make sure your lawn is mowed the day before the appraiser is due to arrive and think about adding some decorative finishes to your doorway.
  • Making Cosmetic Upgrades:  There is always the possibility that if you invest a lot of money into remodeling your home, you may not recoup your investment in added value. However, smaller cosmetic upgrades are always worth the effort. You can add a fresh coat of paint, replace a damaged bathroom vanity and get newer fixtures with little money or effort. With a small investment of time, your home will get a new and updated look.
  • Documenting the Improvements:  Make a note of all the improvements you have done over the years and make a list of any big upgrades and the dates they were done. Save the paperwork from the upgrades as it helps to validate your statements as well as help the appraiser assess the quality of work that was done.
  • Cleaning Your Home Thoroughly:  Generally, a clean house will rank higher in terms of overall condition than a home that appears dirty.
  • Giving Your Appraiser Space:  You may be tempted to give him or her a tour of your home and point out all the improvements you have made. Resist this impulse as professional appraisers do this every day and know what to look for. If you follow them around, you may run the risk of annoying them or revealing too much about the home. Be polite and cordial and available to answer any questions they may have during, or at the end, of the appraisal.

At Superior Mortgage Company, Inc., we specialize in residential and commercial loans and provide the best products and services available. Whether you are purchasing, refinancing or in need of a home equity loan, and regardless of any credit problems, we can help you. Contact the company with the answers you need. Please call us at 845-883-8200. We look forward to hearing from you.

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Home Construction Loans

Many people dream of building a brand new home to their exact specifications. However, home development is complicated and challenging if you need to get a loan to pay for it.

A construction loan is usually a short-term, interim loan necessary to pay for building a house. As work on the home progresses, the lender pays out money in stages. The short term usually has a maximum of one year with variable rates that go up and down depending upon the prime rate. The loans rates are higher than typical permanent mortgage loans. To get approval for the loan, the lender will review the construction timetable, detailed plans and a realistic budget. When approved, the borrower will be put on a bank draft schedule that coincides with the project’s construction stages and will only make interest payments during construction. There are two main types of construction loans, including:

  • Construction to Permanent Loan – After borrowing to pay for the construction costs to build your home and you move in, the loan is converted into a permanent mortgage, making it a two-in-one loan. The borrower then has only one set of closing costs to pay. During the construction phase, you pay interest on the outstanding balance on a variable interest rate which fluctuates up and down. With a permanent mortgage and a possible loan term of 15 to 30 years, the payment covers a fixed or variable interest rate as well as the principal amount.
  • Construction Only Loan – These are two separate loans; one for the home’s construction, which is usually a year or less, and a mortgage loan to pay off the construction. With this type of loan, your down payment can be smaller. This is a good option for people that own a home and are building another home. Although cash is temporarily limited in the present, once the home sells there will be more money to pay the mortgage on the completed house. You have two separate sets of fees for these loans and if your financial situation becomes unstable, you may have difficulty qualifying for it.

Qualify for a home construction loan may be more difficult than qualifying for a traditional mortgage. With traditional mortgages, your home is your collateral, meaning that the bank can seize your home if you default. In a home construction loan, the bank cannot do this so their risk is much bigger. To offset the risk, there are more stringent requirements to get the loan, including good to excellent credit, a stable income, a low debt-to-income ratio and a 20% down payment. Your lender may want detailed information about the lot, house size, materials used and which contractors will be working on the house.

If you want to build a new home, the road ahead may be challenging. The more you know, the easier the challenges. All the more reason to work with Superior Mortgage Co., Inc. We specialize in residential and commercial loans, will answer all your questions and proudly provide the best products and services available.  Whether you want to purchase, refinance or take advantage of a home equity loan, we can help. Contact us at 845-883-8200.    

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