The Most Frequently Asked First-Time Homebuyer Questions

I realize it may seem daunting to ask what you feel may be the simple or even, er, “stupid” questions when you are a first-time homebuyer.  But by all means, DO NOT let your “pride” get in the way.

Questions like:

  • What is a pre-approval and how long is it good for?
  • Do I need 20% down?
  • Will applying for a mortgage hurt my credit?
  • Should I shop multiple lenders?
  • What’s the best type of loan to get?
  • When can I lock an interest rate?
  • How much are closing costs?
  • How does my lender get paid?

You’d be surprised to realize how many would love to know these answers and this short, fun video below covers each of them.

Still haven’t found what you’re looking for?

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

How to Rock the 2023 Conforming Loan Limits!!!

I ain’t foolin’!

Even though there’s been a whole lotta interest rate hikes in 2022.  And even though there’s been a whole lotta rumbling about home values declining in some areas, the FHFA will again be increasing the conforming loan limits into 2023.

This means that where the one-unit conforming limit was $647,200 in 2022, it will become $726,200 in 2023.

And in high-cost (aka high balance) metropolitan statistical areas like much of CA, NY and other housing-expensive counties, you may see the conforming limit go from $970,800 all the way up to $1,089,300.

Note that FHA and VA loan limits fall outside of this change, so if you need to know the specific loan maximums for any program, in any area, just get in touch!

Been a long time!

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

How to Rock a Low House Appraisal Value!!!

You found the perfect home…

And the seller accepted your offer…

And your mortgage application is underway…

Until your appraisal comes in low.  What now???

Never mind all the bad advice that swirls around this dilemma.  There are a handful of effective ways to deal with an appraisal value that comes in under your offer price, so if you find yourself in this stressful situation today, get in touch.  Or perhaps you’re a Realtor or buyer looking to better understand all of the tactics and tips that you can use to negotiate a low appraisal in today’s challenging real estate market.  If so, come as you are and let’s learn how to rock a low appraisal value today. 

Smells like teen spirit,

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

How to Rock an FHA Home Loan!!!

Are FHA loans just for first time home buyers?  

Is an FHA mortgage the best choice if you have bad credit?

What if you have a low down payment, or even no down payment from your own savings?

If you’re ready to quit renting right here and right now, let’s learn how to rock an FHA home loan:

Watching the world wake up,

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

How to Buy a New Home Before Selling Your Current One!!!

Living in a “crowded house” but can’t find a way to buy that perfect new home before selling your existing one?  Don’t dream it’s over! There are mortgage programs that are specifically created to allow you to use proposed rental income from your existing home — also known as a “departing residence” in this case — to help with your mortgage qualification.  After all, most Americans are working hard enough to afford one mortgage payment, let alone two.

If you’ve been told that you don’t qualify for a new home until you sell your current home, but you otherwise have a down payment saved and ready to go, get in touch and let’s see if a departing residence mortgage is a good fit for you.

There is freedom within,

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

How to Rock a 10% Down Payment!!!

Why go home to your grungy apartment when you can buy your first home instead?  Oh, what’s that?  Haven’t saved the full 20% down payment?  Live in a part of the country where home prices and loan sizes easily outpace the capacity of conforming, FHA and even VA loans?

Let’s learn how to rock the best of the 10% down jumbo mortgage options, some without PMI, and jam on why with a changing real estate market, you may be in luck with half the down payment you thought it might otherwise take. 

Jeremy’s spoken,

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

How to Rock a Family Opportunity Loan

Looking to purchase or refinance a home for your elderly parents who wouldn’t otherwise be able to obtain a mortgage on their own?

Looking to assist a disabled or special needs adult child with housing or his/her own?

Or how about putting a college-bound child into off-campus housing that you decide to purchase?

All of these are both common scenarios and often difficult ones as viewed by the inflexible guidelines in the mortgage industry.  Until now…

The Family Opportunity Mortgage can be a great way to thread the needle of otherwise detrimental occupancy requirements for primary homes, second or vacation homes and investment/rental homes.  And if used in the right situation, the Family Opportunity loan will often permit you to obtain lower rates and lower down payment requirements.

So, let’s get so low in the weeds like sisters Anne and Nancy Wilson of Heart and ambush this beneficial mortgage program today! 

Grateful to know about the Family Opportunity loan?  Give me a like or subscribe on YouTube!

Ooh, barracuda!

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709
 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

How to Rock a Bridge Loan

If you’ve been lamenting how tough it is to get your offer to buy a home accepted these days, think about how much more difficult it is for those who must buy a new home BEFORE selling their existing one.  After all, it’s practically impossible to make a contingent offer — defined as one that would allow you to sell your existing home first.

It’s usually in this stressful environment that someone well-meaning; a friend, a co-worker, even a Realtor, will swoop in and advise our buyer to “Just get a bridge loan!,” as if there is a simple, ready-made solution for our otherwise complex problem. 

So, let’s go under the bridge and learn about the waters that run the “buy before sell” dilemma.  Let’s figure out if a bridge loan is the right fit for you, or if perhaps a HELOC, a cash-out refinance or some other mortgage product can help you reach the higher ground. 

If you don’t ever wanna feel like you do right now, and you want to buy that great new place before you sell your current property, give me a like or subscribe on YouTube!

Give it away, give it away, give it away now,

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709
 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

How to Rock Cryptocurrency As Your Down Payment

The mere mention of the words “bitcoin” or “cryptocurrency” or “blockchain” is sure to evoke comments and reactions that will be far-reaching.  There will be the speculators who rolled the dice and came up winners, or who are still white-knuckling their wild ride.  There will be financial technicians who have been forced to grasp how this technology has the potential to disrupt the exchange of currency as we know it.  But more than the reactions of either of these two subsets, you’ll encounter the expressions of the mostly and mildly bewildered.  Because really, when it comes to cryptocurrency, most people are downright confused:

  • About what it is.
  • About how it works.
  • And for us in the real estate world, about whether you can use bitcoin and other digital currencies to buy residential real estate.

So take a quick video tutorial with me on how to rock the use of cryptocurrency as your down payment!

Thinking about rocking the rebel currency on your next home purchase?  Give me a like or subscribe on YouTube!

Ground control to Major Tom,

Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709
 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

10% Down Payment Mortgage

But I don’t get it.  2020 started just like the many of the years that preceded it.  Sure, there was a seasonal slowdown in home buying activity as we got through 2019’s holiday season and got the new year underway, but with interest rates at historic lows, a strong seller’s market in the San Francisco Bay Area and lots of buyer competition for any desirable home that came on the market, it looked like deja vu all over again for anybody looking to purchase a home.  In other words, here we go again with having to come up with a large down payment (or even all cash), a push to offer without any contingencies in your contract and a general sense that it was going to take an act of God to actually get into contract.

Well, we got the act of God part.  Just not the one that any of us, save for the disbanded Global Health Security and Biodefense Unit, had planned on…

So, here we are, going into the heart of the spring buying season, in the middle of shelters-in-place and a COVID-19 pandemic.  Yet with all due respect given to the very real health concerns most of us share, real estate is an essential activity and some buyers and sellers have no choice but to be “on the market.”  For a handful of these buyers, who are not yet in a position to have saved a full 20%, or who have seen the value of their stock portfolios decimated by recent market volatility, a 10% down payment may be the only realistic way to purchase a home during the months to come.

The good news is that they can still do it.

“What is 80-10-10 Financing?”

I remember my grandmother calling the refrigerator a “Frigidaire” and our jeans “Dungarees.”  So it is with 80/10/10 financing.  It’s sort of the brand name we bandy about when what we’re really discussing is a concept, and the manifestation of that concept is subordinate financing, AKA as a “piggyback loan.”  Most simply described, a buyer using this structure will be obtaining two loans instead of one in the purchase of a home.  This is often referred to in broad strokes as an “80-10-10” loan.

“How Do 80/10/10 Loans Work?”

When we say “80/10/10” we are specifically implying the following:

  • A first mortgage to 80% of the home’s purchase price.
  • A second mortgage equal to 10% of the home’s purchase price.
  • A buyer’s down payment for the remaining 10% of the purchase price.

Since the lending world is replete with guidelines, it doesn’t always play out exactly this way, and for any number of reasons.  Just keep in mind that “80-10-10” could also just as easily be 75-15-10, or sometimes when we need to use a conforming first mortgage, you could even see a 62-28-10, for example.  You get the idea, we don’t always have to be at a strict 80% and 10% for the loan amounts.  But no matter how we structure the transaction, the sum of both loan amounts plus the down payment will equal 100% of the purchase price.

“Can I Qualify for a Piggyback Mortgage”

 When obtaining a jumbo 80-10-10 loan, the first mortgage will typically be a fixed rate loan (30-year fixed) or a hybrid ARM (10/1 ARM, 7/1 ARM or 5/1 ARM).  The second mortgage is most often a home equity line of credit (HELOC).  There can be different qualifying criteria for both loans and your loan officer will have to navigate two sets of guidelines in most cases.  Not all loan originators are adept at subordinate financing but for my clients, the pre-approval process for a piggyback loan is identical to the process for obtaining a single loan — we understand it on every level.  While an 80-10-10 can sometimes be harder to obtain than a single loan, there are also cases where it can enable an approval that otherwise would not exist.  For example, a buyer may not qualify for a single loan of $750,000, but may pass with flying colors if the loan is restructured as a first mortgage of $625,000 and a second loan of $125,000.  Same total sum borrowed, but two very different outcomes.

In a very uncertain time, we presently have the capacity to allow a buyer to make a 10% down payment, using the 80-10-10 structure, on a purchase price almost as high as $2,200,000.  And here in the San Francisco Bay Area, this is not an uncommon scenario.  Sellers may not have the luxury of waiting around to get multiple offers in a market defined by the great uncertainty we all face today.  But in these challenging times of being shut in, will lie opportunity for the buyer who may have previously been shut out.  If I can help you better understand the inner workings of a 10% down payment mortgage option, we are available and open for business.

Take care and stay safe,

Rob Spinosa
Vice President of Mortgage Lending
Guaranteed Rate
NMLS: 22343
Cell/Text: 415-367-5959
rob.spinosa@rate.com
Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960
Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate’s Human Resources Department.

Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood Chicago, IL 60613 – (866) 934-7283