Author: erick.merced

Closing on your home is an exciting time that is the culmination and celebration of months of hard work. However, home ownership doesn’t end at the closing table. Here are a few things for homeowners to expect in their first year post-closing.

What to Expect on Closing Day

On the day of closing, your loan officer will be working around the clock to make sure everything is in order. They’ll ensure all your financial statements are accurate and the necessary paperwork is ready. Once you sign, the paperwork is double-checked. Your title company then transfers the money and you officially own a new home.

What to Expect in the First Month After Closing

Once you move in, your insurance and mortgage companies will begin to reach out. Your title company prepares an insurance policy and sends it to you within 30 days of closing. This policy protects you in case there is something wrong in your title. Additionally, you should receive the details of your mortgage within the first month. This information will be in a first payment letter, which is typically due one month after you close.

Other Post-Closing Events to Expect

There is still a long list of to-dos to complete once you make your first mortgage payment, especially in the first months of the year. If your new home is your primary residence, file a homestead exemption to receive a tax break.

Tax season runs February through April, and it’s a busy time of year. There are several mortgage tax breaks you can take advantage of, including a mortgage interest deduction. Your escrow account, which holds funds related to property taxes, will send you its yearly analysis around February.

Finally, your county will send its yearly property assessment (in Florida it is called a TRIM notice) in August. If you feel like it’s too high, you may want to consider contesting it.

Refinancing

Keep an eye on the economy and make sure to contact your Loan Officer if you notice that interest rates have improved. You may be able to save on your monthly payments by refinancing your loan. Even if rates are the same or higher, you may still benefit by taking cash out for home repairs, a daughter’s wedding, college expenses, or other debt consolidation.

Enjoy Homeownership with Butler Mortgage

Buying a home can be an exciting and intimidating process. If you’re a first-time homeowner in Central Florida, consider financing through Butler Mortgage. Our mortgage experts have worked with both first-time and seasoned homeowners in Central Florida for more than 25 years. Let us help you find the right loan solution for you by calling 407-931-3800 or by filling out our free consultation form online.

The home buying process can certainly be a long and involved journey. There are many moving parts and boxes to check. In a sense, it’s almost like buying a car. There is shopping around to do, loan rates to secure, and value to assess.

If you’re in the market to buy or refinance a home, you’re probably aware that some form of inspection will need to take place to determine your home’s value. This is known as a home appraisal, and it’s a very important step in the overall home purchasing process. Therefore, it’s important for you to understand just what a home appraisal is, and how it plays into your home buying/refinancing journey.

Defining a Home Appraisal

To put it simply, a home appraisal is the estimated value of a home typically determined by two factors:

• A complete inspection of the property
• Comparison to recently sold homes in the area

It’s also important to distinguish between a home appraisal and a general inspection. Both occur before a home purchase, but only a home appraisal is required while an inspection is just highly recommended. Furthermore, an appraisal assesses a home’s value while an inspection verifies its condition.

How Long is a Home Appraisal Valid?

Typically, a home appraisal’s results are valid for about 4 months. Market conditions change often, so an appraisal’s lifetime is generally short. If you do not close on your home within that window of time, you will be required to order another appraisal.

After your home is appraised, the appraising party will assign a value to the property and send their assessment to the mortgage lender. If the home is appraised at or above your asking price, you can begin the process of closing on your home once your loan is finalized.

Get Desirable Home Mortgage Rates at Butler Mortgage

To get the best mortgage rates to fit your budgetary needs, contact the professionals at Butler Mortgage. For over 25 years, the team at Butler Mortgage has worked with both first-time and seasoned buyers wanting to own a home in Central Florida. Let us help you find the right loan solution for you by calling 407-931-3800 or by filling out our free consultation form online.

Currently, it’s a seller’s market, so many houses are selling at prices that are significantly above market value. This can be quite advantageous for current homeowners looking to sell or refinance their home. Refinancing, in particular, is a great option to take as it can result in lowered monthly mortgage payments, shortened home loan durations, and access to built equity.

Whether you bought your home recently or many years ago, you might be wondering how soon you can refinance after purchasing your home.

Home Refinance Options and Timeframe Considerations

Generally speaking, you can refinance almost immediately after purchasing a home; however, depending on your servicer and loan officer, you may only qualify for some of the following refinance options:

• Cash-Out Refinance – In this refinance option, you borrow extra funds against your existing home equity (of which you might not have much if you recently purchased). This usually involves a six-month waiting period.
  
• FHA Streamline Refinance – If your original mortgage used an FHA loan, you must wait 210 days from the original closing date to refinance.
  
• Rate and Term Refinance – One of the easiest refinance options to qualify for, rate and term refinances usually don’t have a waiting period.
  
• After a Mortgage Forbearance – If you underwent mortgage forbearance, you typically must either bring your mortgage current or make three on-time payments to be eligible for a refinance.

If you are considering a home refinance but not sure where to start or if you would qualify, then consult with the professionals at Butler Mortgage. 

Explore Your Home Refinance Options with Butler Mortgage

For over 25 years, Butler Mortgage has worked with both first-time and seasoned buyers wanting to own a home in Central Florida. We can help walk you through your mortgage refinance options and secure you desirable rates that fit your budgetary needs.

Let us help you find the right loan solution for you by calling 407-931-3800 or by filling out our free consultation form online.

Buying a home is as exciting as it is stressful, especially for first-time home buyers. However, getting your ducks in a row credit-wise can be tough and could delay the mortgage approval process. Fortunately, if you’re making the switch from renting a home to buying one, recent updates to Fannie Mae’s underwriting guidelines could work in your favor.

Typically mortgage lenders consider an applicant’s credit score during the application process. If your lender works with Fannie Mae, the company that backs most mortgages in the U.S., your rental payment history could also help you secure the loan.

How Does Rent Payment Consideration Work?

With this new feature, Fannie Mae will automatically recommend that your lender factor in your rental payment history if they believe your case would benefit from it. That means, if you’ve been making rental payments of over $300 per month and the lender is able to obtain a 12-month Verification of Asset (VOA) report, then your likelihood of qualifying for a mortgage may improve.

Rent Payment Consideration Qualifications

To be eligible for rent payment consideration, a borrower must:

• Be a first-time home buyer
• Have been renting for at least 12 months with a rent payment of $300 or more per month
• Have a credit score

Other qualifications that must be met for rental payment consideration:

• The mortgage loan must be a purchase transaction
• The property must be secured by a principal residence

Before this update, first-time home buyers were at a disadvantage if their rental history was not on their credit report. Now, a record of consistent rental payments can help give homebuyers the boost they need to secure a mortgage.

Mortgages That Work for You

If you’re a first-time home buyer applying for a mortgage, reach out to Butler Mortgage. For over 25 years, we’ve worked with both first-time and seasoned buyers wanting to own a home in Central Florida and throughout the state. Let us help you find the right loan solution for you by calling 407-931-3800 or by filling out our free consultation form online.

If you’re a first-time home buyer, the closing process can be a confusing collection of factors and terms. However, when going into your first mortgage transaction, it’s important to be familiar with the many different aspects of the process. One of the more unfamiliar concepts in the mortgage process is mortgage points.

A Breakdown of Mortgage Points

Depending on your financial situation, mortgage points can work very well in your favor as you can use points as a trade for interest on your mortgage. Generally speaking, one point is 1% of your loan amount. Therefore, if you borrow $150,000, one point would be $1,500.

When you opt to buy mortgage points, you are “purchasing” a lower interest rate on your loan than if you did not opt to buy the points. However, one point does not equal a 1% deduction in your interest rate. For example, that one point may equal a quarter of a percent reduction of your interest rate.

Although buying mortgage points means a higher up-front closing cost, it can potentially save you big in the long term, often saving borrowers thousands of dollars.

Are Mortgage Points Right for You?

You are in no way obligated to purchase mortgage points in your real estate transaction. If you are in the financial position to do so, it can be quite beneficial. However, if you need assistance with closing costs, you might consider asking for a lender credit to ease up on closing costs in exchange for a slightly higher interest rate.

Rely on the Professional Mortgage Services of Butler Mortgage

If you are unsure where you stand on possibly being able to purchase mortgage points in your home purchase, contact the professionals at Butler Mortgage. For over 25 years, Butler Mortgage has worked with both first-time and seasoned buyers wanting to own a home in not only Central Florida, but throughout the state. Our mortgage experts can review your options and help you secure a desirable mortgage rate that fits your budgetary needs.

Let us help you find the right loan solution for you by calling 407-931-3800 or by filling out our free consultation form online.

Buying a home is both a big investment and life decision. While owning a home may be cheaper than renting one in the long run, becoming a homeowner definitely comes with its fair share of expenses outside of monthly mortgage payment and utilities.

Before you make the decision to buy a home, here are a few homeownership expenses that you should consider.

Homeowner Expenses to Keep in Mind             

• Homeowners insurance – This expense is essential because it covers your home from the damages caused by catastrophic events such as fires and hurricanes. Homeowners insurance does exclude some natural disasters such as floods and earthquakes—also known as Acts of God.
  
• Property taxes – Every year, homeowners have to pay property taxes that are calculated by the local government and are based on the value of the property. Property taxes are also usually included in the mortgage payment.

• Community fees – If you are buying a home in a neighborhood, you may have to pay a homeowner’s association (HOA) fee.
  
• Escrow prepaids – An escrow account holds funds used to pay property taxes and insurance. During closing, you may need to make an initial deposit to your escrow account so that the account isn’t at zero.
  
• Mortgage insurance – If your down payment is less than 20%, your lender may have you pay for mortgage insurance and include it in your monthly payment. Lenders do this to lower the risk when they give out a loan, otherwise qualifying for one is difficult.
  
• Maintenance – If you’ve rented an apartment or a home before, your landlord was typically responsible for any property maintenance. Owning a home means any maintenance property falls onto you, such as a roof replacement or a broken fridge.
  
• Closing costs – This cost can vary depending on your location, but it’s generally 1% to 3% of the property’s price. Other closing fees generally include lender’s costs, document prep, appraisal, and deed recording costs.

The Right Mortgage for First-Time Homeowners

If you’re looking to buy your first home, trust the mortgage professionals at Butler Mortgage to guide you through the mortgage process. Our team has worked with both first-time and seasoned buyers for over 25 years in Central Florida and will help you secure desirable mortgage rates that fit your budgetary needs.

To get started, call Butler Mortgage today at 407-931-3800 or fill out our free consultation form online.

Equity is a commonly used term in the real estate market. Whether you’re a first-time buyer or planning to move, you’ve probably heard it used once or twice. While home equity can be a confusing concept to understand, once you do, it can help you in a number of ways. Here are the basics of home equity and how you can use it.

What Is Home Equity?

Home equity is the difference between how much you owe in mortgage payments and the value of your home. For example, if you owe $100,000 on your mortgage loan and your home’s value is $150,000, then your current home equity is $50,000.

Home equity will increase as you pay your mortgage and the value of your home increases. It can also decrease if the value of your home drops faster than the rate at which you pay your mortgage.

How Can You Use Home Equity?

Home equity can be used to pay for anything from home renovations to college tuition to large purchases. Equity can be tapped into with a couple of options. One is by applying for a home equity line of credit (or HELOC). This type of loan is usually issued for a percentage of the amount of existing equity you have in your home. Essentially, the higher your home equity, the bigger the loan will be.

The second way is to do a “cash out refinance” loan. The benefit of this type of loan is that you will only have one payment to make and if prevailing interest rates are lower than your original mortgage loan, it would be wise to take advantage of this for your full balance, therefore lowering your overall monthly payment.

When you decide to sell your home, you can profit from your home equity if you sell your home for more than it is worth. While you may not receive the full amount of home equity due to closing costs and commissions, this sum could be large enough to make a down payment on a newer, larger home.

How to Build Home Equity

Increasing your home equity is achievable if you:

• Make a Large Down Payment – A big down payment can lead to a reduced mortgage and increased equity in your new home.
  
• Pay Off Your Mortgage – Paying your mortgage on time and in amounts greater than the minimum due will help you to build home equity and pay off the principal balance of your mortgage faster.
   
• Renovate Your Home – Home renovations add desirable curb appeal to homes and, thereby, increase property value.

A Mortgage Expert You Can Trust

Butler Mortgage has been serving Osceola and Orange counties since 1994, and we also assist customers throughout the state of Florida. We’ve worked with first-time and seasoned homeowners for more than 25 years and are committed to finding a mortgage that suits your needs.

Let us help you find the right loan solution for you by calling 407-931-3800 or by filling out our free consultation form online.