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!
Karan is very knowledgeable, passionate and proactive. He was great at explaining how everything works and keeping you updated as you go along. He helped my wife and I purchase our first home and got us a much better deal than what the big banks were offering. I would highly recommend working with Karan to Buy or Sell a home 10/10 work and customer service.- Ray Narsey
Had a great experience working with Optimal loans team - Karan and Vivilya. Their knowledge on loan process and focus toward customer service is unparalleled. They have very competitive rates - and shop around to get the best rates for customers.- Sumeet Batra
Awesome all around! Optimal Homes & Loans made our refinance process a breeze. Karan and Vivilya were really great to work and provide top notch service. All communication was very open, honest, professional, and comfortable from first introductions to the finish line. They are well versed in the process, super responsive, and really just a pleasure to work with. I would highly recommend their services to all! Thank you!- Yogesh Kumar
Karan and Vivilya at Optimal Loans did a FANTASTIC job in helping us secure a loan with cash out. We received an awesome rate too. I would highly recommend this team for your re-fi or first loan needs. They are two of the nicest people I have ever met as well. They communicated very well through out he entire process through loan closure. Again, I would highly recommend this team to you. I will definitely work with them for my of my future loan needs.- Tracy Bruckner
Karan and Vivilya are a dream team! They did a wonderful job on my recent refinance even though my file is a little more difficult than the average homebuyer. Karan and Vivilya were both very helpful and extremely responsive throughout the entire process. They kept me up to date and included me every step of the way - which is hugely important to me. Aside from that, having a lender that is knowledgeable and passionate like Karan is makes all the difference. He's clearly chosen the right career because you can see he loves what he does - it shows in his conveyances and work ethic. I would highly recommend them to any level of homebuyer! Looking forward to working with them again soon.- Kristin Staat
I bought a Condo home with Karan Singh from Optimal Homes & Loans in August of 2021. I cannot stress how grateful I am to be able to work with a talented and exceptional Realtor such as Karan. He has been polite and courteous from the initial call to the final closing purchase of my new condo. I had limited knowledge and experience, as this was my first time buying a home. Karan has helped me every step of the way, guiding me with his experience, understanding my needs, and adapting throughout my home buying journey. During this journey, multiple unforeseen and unexpected issues continued to plague and block my final purchase, such as issues with my loan officer and the title company, and lack of coordination from my bank. But Karan kept his tenacity and assertiveness to keep other aspects of the purchasing process as smooth as possible.- Ben Blando
If you are looking for someone who knows what they're doing Karan and Vivilya are the best at what they do and have made refinancing an extremely smooth and stress-free process.They made the process as easy as possible and they’re extremely responsive. Everything was well explained in detail and handled on time. After dealing with a lot of other lenders and wasting my time, I’ve learned to go with someone who have the knowledge of what they are doing AND who values their customers. These guys won’t leave you hanging in the middle. They are with you until the very last step with their constant touch.They were quick to respond to all the questions and even any minor clarifications. I WOULD HIGHLY recommend Karan and his team to others without any doubt. Please don’t hesitate to contact him, I can guarantee you won’t be disappointed to work with him!!- Harinder Singh
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!