Posted by Jeffrey Chubb on Tuesday, October 29, 2019 at 2:05 PMBy Jeffrey Chubb / October 29, 2019Comment
Buying a Home in Massachusetts Can Be Scary… Until you know the facts!
Hi, I am Jeff Chubb and I wanted to share with you some truth’s when it comes to buying a Massachusetts home. There are many myths out there that are keeping our friends and family from buying a home…
“I need 20% down in order to buy a home” – This is the most common myth we hear. Potential Massachusetts home buyers are constantly being told they need 20% down in order to buy a home. This just simply is not the case. 71% of buyers who purchased homes put down 20% OR LESS. And today you can buy a home for as little as 3.5% down. If you are a Veteran then can even qualify for VA programs with 0% down. Consider this, the average down payment is 6%. AND down payments can even be gifted. (Thanks Mom and Dad!).
“I need an 800 Credit Score” This is the 2nd biggest myth when buying a home in Massachusetts. In September, the average credit score for approved loans was 737. But there are FHA programs that will give a borrower a mortgage with a credit score of 580 or higher. Financing is complex which is why it always makes sense to speak with a mortgage banker.
“Getting approved for a mortgage is hard when buying Real Estate in Massachusetts” – Last month 78.1% of loan applications were approved. I think it is important to remember that a bank isn’t trying to turn someone down, but they are cutting some pretty large checks and need to verify everything is in order. This can be a frustrating part of the process, but the good news is… They don’t ask for a blood sample AND you the light at the end of the tunnel results in a set of keys and owning a piece of the American Dream.
“Interest Rates are high” – Historically speaking...
Posted by Jeffrey Chubb on Thursday, October 24, 2019 at 10:13 AMBy Jeffrey Chubb / October 24, 2019Comment
Bye Bye FICO Scores? And What It Means to You.
I am Jeff Chubb and I wanted to share with you the news that the Federal Housing Finance Agency is now allowing Fannie Mae & Freddie Mac to use an alternative credit scoring model, Vantage Score. And what this means for you and your friends and family when buying a home.
The FICO scoring model was introduced in 1989 and is used by 90% of lenders.
Compared to VantageScore which was introduced in 2006. It’s developers say this model is a more predictive scoring model that is easier to understand and apply.
Many banks are using a combination of FICOs and VantageScore models for mortgages, however until now this was not the case for mortgages secured by a government entity. How much does this matter? In 2017, government backed mortgages accounted for nearly 70% of all mortgages originated in the U.S.
Are we surprised that our Government Backed Mortgage agencies were late to the party?
So what are the differences, how does Vantage Score Group Credit Information?
- Payment history - Age & type of credit - Percentage of credit limit used - Total balances and debt - Recent credit behavior and inquiries - Available Credit
Compared to the 5 categories that FICO uses:
- Payment history - Amounts owed - Length of credit history - New Credit - Credit...
Posted by Jeffrey Chubb on Tuesday, October 15, 2019 at 11:16 AMBy Jeffrey Chubb / October 15, 2019Comment
Closing Cost Credits and How to save $Thousands at the closing table when buying a ? home
I wanted to share with you what a closing cost credit is and how you can use them to help save you a LOT of money ? at the closing table.
- What is a Closing Cost Credit - When Should you talk to your agent about closing costs? - How to confirm amount of closing cost credits - What happens if you ask for a larger credit then you use? - Why a Seller May Say no
If you would like to learn more about the current market conditions whether buying or selling a home throughout Massachusetts, email ? at [email protected], or give us a call ☎️ at 617-480-2600 or visit us online.
We look forward to being your real estate resource.
Posted by Jeffrey Chubb on Friday, October 4, 2019 at 2:15 PMBy Jeffrey Chubb / October 4, 2019Comment
Thinking of selling your home? Renovating your kitchen or adding a spare room can seem like a good idea when it comes to home improvements, but there are some upgrades that end up costing you more than what you’ll get in return. If you plan on being in your home for a while, then you probably don’t mind losing out on a little money in order to get your dream home. When it’s time for you to sell, though, you want to get the best bang for your buck. You also want to keep in mind that just because you upgrade your home, doesn’t mean you’re guaranteed a profit when selling your home. It would be best to consult a realtor and plan how much money to spend on making home upgrades and how much money to spend on marketing your home. Here is a list of some home upgrades that could break the bank:
Major Kitchen Remodel
The kitchen is one of the focal (and selling) points of the home. (Everyone loves food!) Of course, it would make sense to remodel it to be up-to-date and trendy. However, this upgrade only has about a 60-65% return value. On average, you can expect to spend about $60,000 for new appliances...