First Time Buyers

What Kind of Home is the Perfect Choice for You?

Buying a home is usually the most expensive purchase you will ever make. It will shelter your family, provide security, and be your investment into the future. But what kind of home is right for you? Are you looking for a single-family home, condo, co-op, or townhome? How many floors do you want? How much square footage? Do you need a one or two-car garage? Would you like a pool? If you are feeling overwhelmed by all the choices, Superior MCI can help to break it down.

The Choices

A single-family home is an unattached home for only one family and has some green space on every side. You are completely responsible for any maintenance, repairs, upkeep, landscaping, and structural extras you wish to add.

A townhome is very much like a single-family home except that you are typically sharing a wall with a neighbor. The property is usually narrower than a single-family home and may have more than two floors. The homeowners’ association (HOA) is generally in charge of the common areas belonging to all the townhome owners. Monthly dues are paid to the HOA by the townhome owners for upkeep, maintenance, and repair of the common areas. Structural changes to the townhome are generally not permitted.

A condominium, or condo, is a group of apartments where the homeowner owns the air between the walls but not the physical walls, ceilings, or floors of the unit. The HOA takes care of cleaning the windows, fixing pipes, and maintaining common areas such as a pool. In other words, condo owners share ownership of the common areas. The HOA collects monthly dues for the upkeep of the building.

A co-op is a bit confusing because they aren’t seen as real property. In essence, when you buy a co-op, you become a shareholder in the corporation that owns the property. If the property is a multi-family building, you have exclusive rights to your unit. Co-ops are popular in urban areas and require a monthly maintenance fee for repair and maintenance. The co-op board controls decisions relating to the building, including who can buy a co-op in the building.

Ask Yourself Questions

To find out which home is best for you and your significant others, there are several facts to consider, such as:

· How big is your family?

· Do you have pets?

· Do you have a lot of stuff?

· Are you a ‘do-it-yourself’ person who likes home projects?

· If you think a co-op is for you, can you handle co-op board drama and putting your personal life on blast for a co-op board? Co-op boards can reject your application without letting you know why.

· Besides your mortgage, condo and co-op fees can add up. If your shared property needs repair, maintenance, and upkeep, can you afford an assessment added on to your monthly costs?

· Generally speaking, if you buy a single-family home, you are free to live in it as you wish. If you buy a condo, co-op, or townhouse, chances are you will be restricted from doing what you want by the covenants, conditions, and restrictions (CC&R’s) of your homeowners’ association.

Superior Mortgage Co., Inc. has all the information you need 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 Co., Inc. at 845-883-8200 or email sales@superiormci.com for additional information

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Mortgages for Self-Employed People

Getting approved for a mortgage takes determination. Getting approved for a mortgage can be even more daunting when you are self-employed. You will typically need to show more documentation related to your income, assets, debt-to-income ratios (DTI), and taxes. Knowing what is involved beforehand is helpful in making the process proceed smoothly.

First Things First

When you are considering getting a mortgage, remember that the lender wants to see that your income is consistent and stable. Make sure your income tax returns are completed for the last two years. If you have not filed your current taxes, you can submit a profit and loss statement as long as it is audited by a certified public accountant (CPA). A lender generally takes an average of your yearly income for the last two years. 

Credit Scores

The higher your credit score, the easier it will be to obtain a mortgage. If your credit score is under 700, you may wish to work on improving it before applying for a mortgage. Monitor the three credit scores to make sure that all the information on it is 100 percent accurate. If not, correct any errors as soon as possible. 

Assets

To offset a lower credit score, or if your business is not currently generating the income you would like, consider a larger down payment. You may want to put 20 percent down, even if the lender is asking for five percent, to compensate for a riskier income profile.

Debt-to-Income Ratio

Debt-to-Income ratio (DTI) is a formula used by the mortgage industry that determines if your income is sufficient to repay the mortgage loan that you are applying for. It is broken down into two components. It will calculate what your new mortgage payment will be and divide it by your stable monthly income. For example, if you earn $4,000 monthly, and your loan will require monthly payments of $1,000, your housing DTI will be 25 percent. Lenders usually would like the ratio to be 28 percent or lower. The mortgage payment includes any property taxes, insurance costs, private mortgage insurance if applicable, and homeowner’s association fees. 

DTI is also calculated with all of your recurring debt besides housing and can include credit card payments, car loans, child support, utility bills, and other expenses. Lenders are looking for your DTI ratio to be approximately 36 percent. However, if your down payment is substantial and you have good credit, a lender will look at the total picture to make their decision.

Superior Mortgage Co., Inc. specializes in residential and commercial loans, providing a wide range of products and services to give you the best options for your mortgage loan. Regardless of whether your credit score and DTI ratios need improving, we want to help. We will help you make the smartest choice because our experience and skills are second to none. Call Superior Mortgage Co., Inc. at 845-883-8200 or email sales@superiormci.com for additional information. Let us help make your dreams a reality. 

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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 Co., Inc.

Superior Mortgage Co., 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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