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!
Fantastic service! Zach and his team took such great care of us when we refinanced our home. From the details in their explanation of every piece of information, to the consistent follow-ups to ensure we were taken care of, I can’t even begin to express how grateful we are for their attention. And here’s the kicker, we weren’t the only ones they were taking care of and they managed to make us feel like we were. I highly recommend Zachary Kraus Mortgage for your next Purchase or Refinance Loan.- Janice Amante-Molina
Zack and his team are nothing less than amazing! He is personable, professional and extremely knowledgeable. Zack and his team are always willing to go above and beyond for me and my clients and that is something that I value in a Mortgage professional. As a realtor communication and customer service are extremely important to me. The Zack Kraus team is by far the best in the business. I would highly recommend Zack and his team to anyone looking to purchase or refinance.- Blanca Vargas
Zack and his team did an amazing job helping us out with our first mortgage! They were with us every step of the way explaining every thing in detail and answered all of our questions promptly. Zack and his team made us feel extremely comfortable with the entire process and we didn’t feel rushed or pressured to make any decisions and we went at our pace and closed on time! I would not hesitate to recommend the Kraus mortgage team for anyone's mortgage or refinance needs. If I ever need that type of assistance again I will be leaning on Zack and his team for their knowledge and expertise.- Zachariah Markadonis
My husband and I recently went with Zach Kraus to inquire about purchasing our first house, and he was great! Zach is very professional, knowledgeable and was very responsive. We were very confused and stressed about the whole purchasing process and he made sure everything was explained to us clearly. Couldn’t be happier with the whole experience. We will definitely be recommending him to others in the future.- Stephanie Martinez
I am a Realtor and LO in CA. I was lucky enough to have found Zack and his team to refer my out of state clients to. They are extremely knowledgeable and professional. It is nice to know that my referrals are in good hands. Zack and his mortgage lending team definitely have my recommendation.- Souk Kraus
Zack and his team helped me and my family purchase our first home! The process was so seamless. They were very professional and efficient. They answered all my questions. Being a first time homebuyer I was so nervous; but they made it very easy and walked me through the whole thing. I will be purchasing with them again soon on my next home !- Jacky Martinez-Sanchez
Zachary and his team have helped us with two refinances over the years, and I couldn't be more pleased. We have been able to take years off of our mortgage and lower our rate. He is professional and informative, straightforward and honest. The Kraus team makes refinancing easy and they were extremely attentive and helpful when we had questions. I would recommend Zachary and his team to anyone who is looking for help with home buying or refinancing.- Greg Kirchen
Helped me closed in 6 days! The staff were very responsive and helpful with every step of the loan process. Definitely recommend for anyone who needs a loan whether a first time buyer or an investor!- Kevin Nguyen
Zack and his efficient team were outstanding to work with. They made the entire process seamless, simple, and easy.
I am pleased with their service and highly recommend working with this team for your mortgage needs.- Steven Pahl, Jr.
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!