Are you afraid to buy your first home?

Everyone tells you one of the most major purchases you can make in your life time is your own home. However you hear what everyone says about the process and that makes you anxious! The “what if” or “Is it right” questions pop up in your head and it can make you spooked out about the process. So don’t worry! Put away the Xanax or Klonopin and let’s debunk some of the most common fears you might have on your home purchase.

“I’m afraid I can’t afford a home!” – Some buyers are afraid they are stuck in a black hole of major debt and their savings account will be drained where they couldn’t afford vacations and nice things and their food diet will be your typical ramen noodles you ate during college. Here is the reality: depending on what and where you are buying a home, most likely you will not be draining your savings account. With today loan programs that are offered to us, they could help first time home buyers with down payment assistance or some programs don’t require your arm, leg, and your first born in order to obtain a mortgage. The best way to see if you are financially ready to buy a home yet is by talking to your loan officer. They are trained to help you and see how much you can afford. Or you can also use our mortgage calculator to get a general idea of how much you will be paying or be able to afford.

“I change my mind more than I change my socks! I don’t want to buy a home I don’t like!” – Some buyers believe that their first home might be a living version of an average house in The Walking Dead – windowless, dreary, exposed piping, and hoping they won’t find severed limbs or random body parts lying around or the undead trying to eat you. However, interest rates are so low that homeowners can snag a great deal on a gorgeous home like The Simpsons’ house and pay less over the course of the loan. Keep in mind that with the economy being in a downturn, there are wonderful properties that are being sold for less than their value.

“I’m afraid the house I want to buy will cost me more money down the line!” – The good news is that most houses on the market are not money pits even if they are issues lurking in the shadows. If there are any issues like a leaking pipe in your home, you can do plenty to protect yourself over time. In order to avoid buying a money pit, hire a good home inspector. They will be able to see any signs of water damage, electrical, and plumbing red flags that could cost you down the road. They will also be able to advise you on potential repair costs, which you can use to leverage for the sellers and lower your purchase price.

“What if I overspend on my house?” – You find a house that you have fallen in love with! You already can picture yourself cooking dinner in the kitchen, spending time with your family in the family room and waking up to your amazing master bedroom suite! But wait… the asking price is a bit over your budget! Keep in mind, the asking price is what the seller is asking for. What you could buy it for could be a different picture. Your Realtor is trained to guide you to a realistic offer you can make to the seller. A trained agent will know the price points in the areas you are targeting in and can back them up with historical data and comps. You can also search prices of homes that were recently sold in the area so you can gain a better insight before you place an offer to the seller.

“Is it safer to rent?” –  When you are renting, it means you are not trapped in one place as you are with homeownership. The truth is, when you are renting, you are not building equity over time. Now think how scary that is! Not only you are losing on building equity, but over time you could be paying around $100 more a month and miss tax deductions for home owners. If you can picture yourself in an area over time, then it is worth buying.

Have any more doubts or fears? Call us at 973-577-7008 and let our team help put your fears to rest.

6 Things you may not know that are hurting your credit score

 

Do you ever forget things? Like the one item you went to the grocery store for, only to come out with a cart full of items and you forgot the one item? Or other things like paying your bills on time. We all know that not paying your bills on time will hurt your score, but there are other ways that you can do that will hurt your score.

  1. Late Rent Payments – Your rent payment is normally due on the 1st of the month, and your landlord may have a grace period of a couple of days. You may think, “The landlord wouldn’t care if I am a couple of days over the grace period”, but that is not necessarily true. Did you know your landlord can pay to report your payment history to the credit bureaus? Yes, some landlords will take this route if you are late on your payments. So to avoid a negative score, pay your rent on time.
  2. Ignoring Fines – You may have a fine for returning or losing a library book, or you were 2 minutes late on the meter and gotten a parking ticket. You might not have the money or refuse to pay the fine, but did you know that those fines can add up and be reported to the credit bureaus? Your fines can be tallied up and sent to a collection agency. From there, the collections agency can report your outstanding amounts to the credit bureaus. So don’t make your problems worse by not paying your fines off in a timely manner. They are able to haunt you for a long time.
  3. Medical Bills – Unpaid medical debt is the number one reason why Americans today file for bankruptcy. To add insult to injury, if your medical debt is large and you have to file for bankruptcy, that damage can take a toll on your credit score for a good decade.
  4. Applying for credit – Your credit report gets pulled whenever you apply for any line of credit. However, if you have a large number of inquiries over an extended period of time, it shows the lender you are desperate for credit. However, inquiries within a 14-day period will appear as one inquiry. If you want to compare options by pulling your credit score, do them within a 14 day period to limit the damage on your credit score.
  5. Financing – With the holidays approaching, advertisements might to sell you to finance your brand new 4K TV with 0% interest rate or you can finance Jimmy’s new video game system with 0% APR for the next 2 years. Now, as tempting as this offer sounds to all of us, it might not be the best option for you. Why? Financing a purchase will open up a line of credit for that exact amount. When you make your monthly payments, you will increase your debt utilization ratio. Anytime you finance, the loan is looked at to the credit bureau as a “loan of last resort”. Oh… and “Loan of last resort” is our next and final topic!
  6. “Loan of last resort” – Let’s face it, life happens. Your car could break down randomly and it requires a costly repair, or you have a home repair that requires a chunk of change. If life little mishaps just happens to fall on your lap, you are able to take a payday loan to help pay for the repairs and such. However these types of loans with store financing are frowned upon by other lenders and it could impact your score.

So, as you can see, simple small mishaps or “forgetfulness” can hurt your credit score. For questions on how much it could hurt your score or how it could hurt your eligibility to buy your home, contact us at (973) 577-7008.

Top Performing Branch in Lagrangeville, New York Celebrates 10 Years with Ribbon-Cutting Ceremony, Industry Heavy Hitters in Attendance

dhill_asimpsonResidential Home Funding Corp. (RHFC) was proud to celebrate the 10-year anniversary of their Lagrangeville, New York branch this past week with a ribbon cutting ceremony at their 3,500-square foot location. The event offered more than food, drink, and fun – it was the overwhelming sense of victory and gratitude that left attendees inspired. Those in attendance included: Doug Hill, Branch manager; Adam Simpson, Sales Manager; Frank Kuri, Senior Vice President of Branch Development; Roberto Lupi, Partner and CEO; Mortgage Loan Originators Elda Gentile, John Jarvis and Sammy Sapek; Jean Dauenheimer, Processing Manager; and over 100 members of the local business community.

Success in the mortgage industry is not easy, especially when 2008 took most ships off course or far out to sea. But not for RHFC Lagrangeville, whose achievement only continues to grow as the ships leader – Branch Manager Doug Hill – guides his wildly talented team every step of the way. Perhaps the most inspiring was the testimonial given by Hill when reliving the action-steps he took to get here, including making personal sacrifices for his team in the beginning stages. “I’ve got the best people here and I couldn’t imagine them not being here today, so the sacrifices I made in the early days were all worth it.”

RHFC is known nationwide for providing the support, communication and keys for success to its branches. With over 40 locations across 12 states, this top 100 mortgage company* has proven time and time again that their lucrative business model and passion for their clients is what has not only set them apart, but what paves the way for continued growth and victory for years to come.

Lagrangeville, under the RHFC umbrella, funds all types of transactions such as basic residential purchases, refinances, reverse mortgages, investment properties, construction loans, mixed use, and more. At Residential Home Funding, there is a loan custom suited for almost every borrower, with each and every customer being treated like family.

*In March of 2016, Residential Home Funding Corp. was named on the list of the Top 100 Mortgage Bankers in America for the fifth time. This list is compiled by Mortgage Executive Magazine annually, ranking companies not only by their total volume, but also crediting them as “high performing” in periods of uncertainty. We Do Business in Accordance with the Federal Fair Housing Law.

Doug Hill, Branch Manager, can be reached at (845) 454-6088 ext 101, or dhill@rhfunding.com. You can also visit them at www.gorhf.com.

Home Maintenance: November Edition

Home Maintenance Tasks That Should be Done in November

Good news: it’s November! Bad news: December is coming around the corner! December welcomes cold weather, snow, and shorter days. However, is your home prepared for the winter season? If not, this month is the best time to maintain your home. But what should you do to prepare for old man winter?

  1. Weatherproof the house – Take a look around baseballs, wall/ceiling junctures, windows and doors, lighting fixtures, switches, and electrical outlets. See if there are any cracks that would let your heat escape and allow the cold air come in. To spot big cracks in the places, turn off your lights in your place and ask a friend to shine a bright flashlight around the doors and windows. If you see the light peeping through, you have a big crack. To find smaller cracks, light a candle or incense stick and pass it around the potential areas. If you see the flame or smoke making waves, then you found a leak. If you find any leaks, you can seal gaps with caulk. For bigger cracks, call your handyman and have him install weather stripping.
  2. Service the HVAC system – You want to make sure your heating system is running during the cold winter season while saving money on your energy bills. You yourself can unclog and clean the HVAC grills in a dishwasher (however, we recommend doing this WITHOUT any dishes in the washer). You should also dust around the HVAC system as well as change the filters every couple of months. However once in a while you might want to hire an HVAC expert to inspect and tune up your system. They will be able to check the controls, lubricate moving parts, and make sure that there is no carbon monoxide leaking out.
  3. Clean dead leaves – Not only are dead leaves on your lawn are an eye sore, but they can also kill your lawn! So how do we tackle this? Rake your dead leaves and bag them to be removed!
  4. Clean patio furniture – Got dirt and grime on your patio furniture? Now is the best time to clean them or else in the spring time they will be frozen on and much more difficult to remove. A simple bucket of water with soap and a scrubber can do the trick or run a power washer onto the furniture for a quick clean.
  5. Secure your home from pests – Just like you, critters like rodents and bugs want to be in a warm environment. Your attic is the perfect winter retreat for them. Check to see if the roof tiles are damaged, if the attic vent is damaged, or if there are any holes in the house that would be flashing a “welcome” sign to unwanted guests. If you do happen to find any holes or entrances for critters, you can hire a reliable handyperson or painter that can patch your home’s exterior. That is, unless you really want your unwelcomed guests to live with you and your family.

Now if you follow the list, your winter season will be nice and cozy with very little hiccups down the road. For more tips and information, contact us at 973-577-7008.

4 Most Common Questions About Mortgages Answered

Real estate concept

4 Most Common Questions About Mortgages Answered

Everyone one when they grow up wants to buy a house or own property in their lifetime. However, like many people, you need to obtain a mortgage to buy a house unless you have half a million lying around your house. However everyone has questions about their mortgage, from the down payments to the interest rate. Your mother might tell you that you are required to put down 20% or your buddy tells you that your interest rate isn’t as advertise from company XYZ. So to help clear up some confusion, here are some of the most common questions home buyers ask about mortgages.

I heard you need to put down 20% for the down payment. How can I save that much?” Here’s the fact: the gold standard for a down payment for a mortgage is 20%. However, if you don’t have that much in savings, there are still plenty of ways to buy a house and put down less than 20%. The Federal House Administration loan (FHA) allows borrowers to put down as little as 3.5% for your home. However, to qualify for a FHA loan, your credit score can be less than perfect and you need to show steady employment for at least two years. If you are an active or retired military member (or a surviving spouse of a veteran), a Veteran Affairs loan (VA) allows you to put 0% down for your home. There are some other workarounds too! Some states offer loan programs that enable borrowers with low income to receive a down payment subsidy.

“Why is my mortgage’s interest rate you are offering me is higher than the one you are advertising?” Take a good look at that ad. If the interest rate is remarkably low with an asterisk, it will show a disclosure saying that is the best possible rate. To grab the BEST possible rate, you need to obtain a credit score of 750 and above and a low loan-to-value ratio, which means you are making a large down payment of at least 40% or more on the home price. If your borrowing scenario is not in the most perfect situation, you are considered more of a risk which will reflect your interest rate. Your interest rate will depend on your credit score, loan-to-value ratio, the loan amount, and the type of property you are buying like are you looking at single family houses or condos? So when you see an advertisement with a surprising low interest rate, take a good look at the fine print when you evaluate your loan options.

I heard the best option for me is a 30 year fixed-rate loan. Is that true?” Just like clothing, there is no one size fits all when it comes to your loan options. For example, even though adjustable-rate mortgages (ARM) have a bad rap, they do make sense if you plan to move before the rates adjust. If you can’t afford a home with a fixed rate, ARM might be the best bet since fixed interest rate is slightly higher than adjustable-rate mortgages.  However, a 15-year loan might make more sense than a 30 year loan if you can afford the bigger monthly bills. When you choose a 15 year loan, you will be paying far less interest than a 30 year in both time and the rate itself.

“What is private mortgage insurance and why am I required to have it?” If you are putting down less than 20% on the home, you will have to pay private mortgage insurance or PMI. PMI is there just in case you are not able to pay your mortgage. When you don’t pay your mortgage, your lender will lose money, and that’s when PMI steps in. PMI is an extra 0.3% to 1.15% of your home loan. The sum can be large, but it makes sense if you want to buy a home now than later when you have 20% to put down. Still don’t like PMI? The other option is asking if your lender cover the mortgage insurance. The drawback? You will be paying a higher interest rate. Ask your mortgage consultant if paying PMI is cheaper in the long run than a higher interest rate.

Have any other questions we didn’t answer yet? Contact us at 973-577-7008 and we can find a licensed mortgage originator who can answer any questions you have.

Marriages and Mortgages: The Essence of your Adult Life

Marriages and mortgages: they are two very big parts of our lives, but the effect of each on the other is sometimes forgotten.  When you decide who that lucky significant other is you’ll want to keep in mind that marriage and its legalities can have financial implications when it comes to your mortgage. We’re here to tell you exactly what those implications are and educate you so you can confidently make the right decisions for the best experience with both a marriage and a mortgage. 

 

Most people don’t realize marriage’s legalities in relevance to mortgage aren’t limited to the initial union.  Divorce, separations, prenuptial agreements, alimonies, etc. – all of these can have an effect on your mortgage. 

 

Prenuptial agreements are made by the couple prior to marriage and are put in place to divide their debts and assets should the marriage fail.  Most couples may not have purchased a home yet and will decide whether or not to add the house to the prenup after marriage.  While this is the average case, some unmarried couples actually use a prenup before marriage to protect their investments.

 

With a prenuptial agreement you’ll probably want to decide whose name will be on the home’s title, the mortgage, and who will be paying it.  This is because of all the regular checks the lender/banker makes on assets, debts, credit, and finances in general are now twofold as they will take into account what part of those are actually yours and which aren’t.

 

Alimony payments can reduce or increase your eligibility to borrow when either paying it or receiving it.  When paying, it can be considered a debt and when receiving, it can be considered income.  Both cases are dependent upon the consistency of the payments and ability to provide any and all necessary documentation.  If payments are inconsistent the banker will not be able to take them into account.  The more documentation you have prepared the better, because the required documents may seem to be a stretch at times with uncomfortable details being shared.  Just remember the banker doesn’t care about that, all they want are the financial details to allow them to move forward with your mortgage.

 

When dealing with any legal issues, it may be best to consult a lawyer to fully understand the extent of effects they may have.  

 

Now that you’re equipped with knowledge on two of the cornerstones of your adult life – marriage and mortgage – go ahead and collect your documentation.  You will make better decisions and even benefit from each, the marriage and the mortgage, so make sure you do.

American Cancer Society Making Strides against Breast Cancer 5k held in Westchester

Top Mortgage Company* Continues its Charitable Efforts to Participate and Raise Funds for Society

This past Sunday, the American Cancer Society held its annual Making Strides against Breast Cancer 5k walk in Westchester, NY. The event had hundreds in participation, with the walk being held at Manhattanville College in Purchase, NY.

Employees of Residential Home Funding Corp. (RHFC) attended and participated in the walk, raising over a thousand dollars to go towards the fundraiser. The participation of RHFC employees and investors in this event reinforces the company’s consistent efforts to always keep charity on the top of its list of priorities.

Weather proved to be lovely the day of the event, with the sun making an appearance, contributing to the full hearts and spirits of those who walked and cheered. The walk brimmed with positivity, perseverance, and pink. RHFC employees who participated included Karina Castellanos, Gloria Asenjo, Sylvana Gordillo and family, Anthony Giordano and son, and Jamie Tate-Kenneally and daughter.

About Residential Home Funding

*In March of 2016, Residential Home Funding Corp. was named on the list of the Top 100 Mortgage Bankers in America for the fifth time. This list is compiled by Mortgage Executive Magazine annually, ranking companies not only by their total volume, but also crediting them as “high performing” in periods of uncertainty. Founded in 2000, RHFC is a big mortgage lender that doesn’t act like one. As the 66th largest mortgage banker in America, they are licensed direct lenders in 12 states including CT, DC, DE, FL, GA, MD, NC, NJ, NY, PA, SC, and VA, while still treating each and every customer like family. RHFC funds all types of transactions such as basic residential purchases, refinances, investment properties, construction loans, mixed use, and more. Residential Home Funding Corp. is a direct FNMA lender and also originates FHA and VA loans to NJ and beyond. They are a direct FNMA lender and have LAPP approval. Their program is excellent for first time buyers allowing low down payments, gift money, and flexible underwriting standards on credit and debt to income ratios. At Residential Home Funding, there is a mortgage loan custom suited for almost every borrower, having built their reputation on service and efficiency. We Do Business in Accordance with the Federal Fair Housing Law. Visit Residential Home Funding Corp. at www.RHFunding.com.

Details on Shocking Fundraiser for Children with Cancer

Company Raises Thousands for 3, 11 and 13-Year-Old’s While Playing Golf

America’s top Mortgage Company* Residential Home Funding Corp. (RHFC) held its 8th annual charitable golf outing and dinner last Wednesday, October 5th at Ballyowen Golf Club in Hamburg, NJ. The fundraiser was hosted by the company’s RHF Foundation, with 100% of the proceeds from the outing going to three families with children who suffered from cancer. A large donation was also given to the St. Joseph’s Hospital Pediatric Department, the Dean Michael Clarizio Cancer Foundation (DMCCF), and the L.E.A.D. Program (Law Enforcement Against Drugs).

The Mission of the RHF Foundation is to “Provide Funding to Help Children with Acute Medical Conditions.” The RHF Foundation is committed to enhancing the healing environment for children with acute medical issues. Their goal is to fund programs that make hospital stays less frightening and more enriching for a child.

The event was completely sold out, and RHFC was overwhelmed by the support. There was more money raised than ever before with endless donations from sponsors, attendees, and volunteers. There were 144 golfers and 180 guests at the dinner where checks were personally handed to the families that were affected by the terrible disease. It was a night filled with emotion, and RHFC was incredibly honored to have had the opportunity to make a difference in the lives of these families.

 

About Residential Home Funding

*In March of 2016, Residential Home Funding Corp. was named on the list of the Top 100 Mortgage Bankers in America for the fifth time. This list is compiled by Mortgage Executive Magazine annually, ranking companies not only by their total volume, but also crediting them as “high performing” in periods of uncertainty. Founded in 2000, RHFC is a big mortgage lender that doesn’t act like one. As the 66th largest mortgage banker in America, they are licensed direct lenders in 12 states including CT, DC, DE, FL, GA, MD, NC, NJ, NY, PA, SC, and VA, while still treating each and every customer like family. RHFC funds all types of transactions such as basic residential purchases, refinances, investment properties, construction loans, mixed use, and more. Residential Home Funding Corp. is a direct FNMA lender and also originates FHA and VA loans to NJ and beyond. They are a direct FNMA lender and have LAPP approval. Their program is excellent for first time buyers allowing low down payments, gift money, and flexible underwriting standards on credit and debt to income ratios. At Residential Home Funding, there is a mortgage loan custom suited for almost every borrower, having built their reputation on service and efficiency. We Do Business in Accordance with the Federal Fair Housing Law. Visit Residential Home Funding Corp. at www.RHFunding.com.

Lake Mohawk Labor Day 5k Raises 5k

Residential Home Funding Corp. Sponsors Event, Donations go to Lake Mohawk Preservation Foundation

The 1st Annual Labor Day 5k was held at Lake Mohawk in Sparta, NJ on September 5th in an effort to raise money for the Lake Mohawk Preservation Foundation. The race is a new Labor Day morning tradition in Lake Mohawk Plaza, and was immediately followed by the final Lake Mohawk Ski Hawks show of the season.

There were 25 volunteers and 245 runners in attendance. The event was organized by Bill Askin and Todd Hooker from Askin & Hooker, LLC, Attorneys at Law. There were over 20 event sponsors, including New Jersey’s own Residential Home Funding Corp. The morning of the event brought out lovely weather, while runners jogged across the beautiful lake. $5,000 was raised to benefit Lake Mohawk’s Preservation Foundation, a 501(c)3 tax exempt organization.

 

About Residential Home Funding

*In March of 2016, Residential Home Funding Corp. was named on the list of the Top 100 Mortgage Bankers in America for the fifth time. This list is compiled by Mortgage Executive Magazine annually, ranking companies not only by their total volume, but also crediting them as “high performing” in periods of uncertainty. Founded in 2000, RHFC is a big mortgage lender that doesn’t act like one. As the 66th largest mortgage banker in America, they are licensed direct lenders in 12 states including CT, DC, DE, FL, GA, MD, NC, NJ, NY, PA, SC, and VA, while still treating each and every customer like family. RHFC funds all types of transactions such as basic residential purchases, refinances, reverse mortgages, investment properties, construction loans, mixed use, and more. Residential Home Funding Corp. is a direct FNMA lender and also originates FHA and VA loans to NJ and beyond. They are a direct FNMA lender and have LAPP approval. Their program is excellent for first time buyers allowing low down payments, gift money, and flexible underwriting standards on credit and debt to income ratios. At Residential Home Funding, there is a mortgage loan custom suited for almost every borrower, having built their reputation on service and efficiency. Visit Residential Home Funding Corp at www.RHFunding.com.

We Do Business in Accordance with the Federal Fair Housing Law
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Residential Home Funding Corp. Sponsors Event – John Finkle Recognized by FLEOA for his Support

mortgage-loans-for-policeFederal Law Enforcement Officers Association (FLEOA) holds 2nd Annual Awards Banquet, Honors Top Supporters

The Federal Law Enforcement Officers Association (FLEOA) Foundation held their 2nd annual awards banquet this past weekend in Ft Lauderdale, Florida. The awards dinner was held at the beautiful Bahia Mar hotel, and was attended by law enforcement members that included FBI, Unites States Secret Service, Homeland Security, DEA, ATF, United States Customs, and others. A few of the prestigious awards included prosecutor of the year, FLEOA lifesaving award, investigative excellence, and special agent of the year.

Residential Home Funding Corp. (RHFC) – a top 100 mortgage company* – has over 40 locations across the east coast, including Florida. RHFC was one of the events main sponsors, and is listed in their 1811 monthly magazine as the only mortgage provider for their association nationwide.

John Finkle – a retired police chief – works as a Mortgage Loan Originator for RHFC and helps manage their Mortgages for Champions Program. Mortgages for Champions offers loans to police officers, doctors, EMT, nurses, government, and firefighters with no lender closing costs as a thank you to our heroes. At the awards dinner, FLEOA honored Finkle and presented him a plaque in appreciation of his support for their foundation.

About Residential Home Funding

*In March of 2016, Residential Home Funding Corp. was named on the list of the Top 100 Mortgage Bankers in America for the fifth time. This list is compiled by Mortgage Executive Magazine annually, ranking companies not only by their total volume, but also crediting them as “high performing” in periods of uncertainty. Founded in 2000, RHFC is a big mortgage lender that doesn’t act like one. As the 66th largest mortgage banker in America, they are licensed direct lenders in 12 states including CT, DC, DE, FL, GA, MD, NC, NJ, NY, PA, SC, and VA, while still treating each and every customer like family. RHFC funds all types of transactions such as basic residential purchases, refinances, investment properties, construction loans, mixed use, and more. Residential Home Funding Corp. is a direct FNMA lender and also originates FHA and VA loans to NJ and beyond. They are a direct FNMA lender and have LAPP approval. Their program is excellent for first time buyers allowing low down payments, gift money, and flexible underwriting standards on credit and debt to income ratios. At Residential Home Funding, there is a mortgage loan custom suited for almost every borrower, having built their reputation on service and efficiency. Visit Residential Home Funding Corp at www.rhfunding.com.

We Do Business in Accordance with the Federal Fair Housing Law

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