The Marketplace
Home Mortgage Blog

The Advantages of Getting Marketplace Approved

It’s no secret that getting pre-approved for a mortgage is one of the most important first-steps on the path to home ownership. However, it’s important not to overlook the pivotal decision that comes before that: choosing your mortgage lender.

Not all mortgage pre-approvals are created equally. Using a rapid pre-approval may seem convenient, but it puts you at risk for financing issues down the line. Opting for the quick and easy route could lead to delayed closings. In the midst of moving, having your closing date pushed back can be a logistical nightmare.  What’s worse,  a flimsy pre-approval could even lead to the loss of your dream home. That’s why it pays to get Marketplace Approved.

When you get Marketplace Approved, you receive a fully underwritten loan pre-approval in 5 day or less. This means that our underwriting team has taken an in-depth look at your financial circumstances and has given you a commitment to lend. Being fully underwritten makes your offer more reliable and thus more appealing in the eyes of a seller.

To double down on the strength of being Marketplace Approved, we offer our clients an unparalleled On Time Closing Guarantee*.  With our On Time Closing Guarantee, your home purchase closes on time or we pay the seller $5,000 and the buyer $1,500.

If you are serious about your home search, insist on the best pre-approval in the industry.  Save yourself from stress and potential heartbreak by getting Marketplace Approved.

*On Time Closing Guarantee: See program disclosure for complete terms and conditions

How the New Tax Bill Will Affect Homeowners

The new tax reform bill that was signed into law by Congress will be changing taxes related to home ownership in 2018 and beyond. If you are a homeowner, or are considering becoming one, be sure to meet with your tax professional to discuss how these changes will impact you.

SOME KEY CHANGES TO NOTE:

MORTGAGE INTEREST: Prior to the new tax bill, mortgage interest was deductible up to $1,000,000. With the tax reform bill in effect, it will only be deductible up to $750,000. This applies to all homes purchased after December 15, 2017 as well as second homes.

MOVING EXPENSES: Before this year, qualified homeowners relocating for a job could deduct their moving expenses from their taxable income. Moving forward, this deduction is only available to active duty members of the armed forces.

HOME EQUITY LINES OF CREDIT: Mortgage interest paid on Home Equity Lines of Credit will no longer be tax deductible.

STANDARD DEDUCTIONS: The tax reform bill will also change the standard deductions available to each household. With the new tax reform bill in place, the standard deduction has nearly doubled from $12,700 to $24,000. As a result, many homeowners may choose not to itemize their deductions in 2018.

If you have questions related to home ownership, the benefits of buying vs. renting, or the mortgage process, our experienced Loan Officers are available to help.
Source: https://www.congress.gov/bill/115th-congress/house-bill/1

Preparing for Your Spring House Hunt

Each spring as the temperatures warm up, so does the housing market. Even before the snow has melted, sellers are preparing their homes to be listed, and buyers a readying themselves for a search.

If you are among those who plan to buy a house this spring, here are the key first steps you should be taking to get started.

  1. Meet with an Experienced Loan Officer
    Meeting with a Loan Officer is one of the most important first-steps you can take once you realize you want to become a homeowner. Your Loan Officer will review your overall financial situation, go over mortgage options, and help you determine what homes will be within your price range. For this reason, it is important to get started on the mortgage process before you begin seeing properties with your Realtor. Meeting with your Loan Officer early on also gives you a chance to catch and address credit-related issues you may not be aware of. By meeting with your Loan Officer first, you will be prepared to act fast when you find your dream home. To connect with a Marketplace Home Mortgage Loan Officer or branch near you click here.
  2. Find a Realtor
    Once you have reviewed your financial situation, taken care of any issues, and understand your budget, your next step should be to find a Realtor. Your Loan Officer may have some helpful recommendations based on professionals they have worked with. Friends and family can also be great resources for agent referrals. Once you have met with a Realtor you feel comfortable working with, you can begin to determine your priorities and define the parameters of your search.
  3. Build Your Wish List
    Take some time to think about your priorities. This will be a big help once you begin your home search. Work with your Realtor to outline which neighborhoods, school districts, and amenities you are looking for. Determine which features are a preference and which are must-haves.Going into the spring market with a clear vision of what you are looking for will save valuable time and make it more likely that you will spot the house that is right for you when it hits the market.

In many areas the spring housing market can be hectic, but with a little planning, and the right home buying team, you can be sure you are off to a great start on your path to home ownership.

The Difference Between APR and Interest Rates

When you are comparing mortgage options, it is important to understand the difference between APR and interest rates. When you see a loan rate advertised, you’ll also see a corresponding APR (4.5%/4.762% APR). This Annual Percentage Rate is the total cost of your loan (interest and fees) expressed as a single number. The purpose is to give you one number for comparing multiple loans.

But it’s an imperfect science.The problem with using APR as designed is that the calculation applies to the entire length of the loan, and some people use mortgage loans for only a few years due to refinancing or sale. READ MORE

Simple Ways to Cozy Up At Home

It’s the time of the year when winter can start to lose it’s magic. The holidays have come and gone, and for many, the snow has started to wear out it’s welcome. However, that doesn’t mean you can’t still make the most of the cozy days ahead. READ MORE

Is a Home Inspection Required?

In the mortgage industry, we are often asked if a home inspection is required. In many cases, the answer is no. However, even when it is not required, a home inspection is certainly recommended.

You are making a large investment when you buy a home, and having a professional home inspector look at it could save you a lot of time and money in the long run.

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Looking Back on 2017

As we head into another year at Marketplace Home Mortgage L.L.C., we have a lot to be thankful for. 2017 was a year of tremendous growth.

We opened new locations in Sioux Falls, SD, Clive, IA, and Portsmouth, NH. We also hired 130 new employees across the country.

Throughout the year we were honored to receive some awards and recognition. In August, Marketplace Home Mortgage was named Best Mortgage Company in the Twin Cities by voters in the 2017 Twin Cities Business Magazine Reader Poll. As the year progressed, we were also recognized as Number 27 on the list of the 50 Fastest Growing Companies in the Twin Cities by Twin Cities Business Magazine.

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What To Do (And Avoid) When Refinancing

Mortgage interest rates are always changing, and if you bought your home when rates were higher, refinancing the existing mortgage could save you thousands of dollars over the course of your home loan. When you are preparing to refinance there are certain things you should avoid leading up to the transaction. Take a look at the list below and contact a Marketplace Home Mortgage Loan Officer to learn more about how you can get started.

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FHFA Announces an Increase in Loan Limits For 2018

On Tuesday, The Federal Housing Finance Agency (FHFA) announced an increase in maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2018.

The FHFA stated that loan limits will be raised to reflect the change in U.S. home prices. The press release distributed by the agency states:

According to FHFA’s seasonally adjusted, expanded-data HPI, house prices increased 6.8 percent, on average, between the third quarters of 2016 and 2017.  Therefore, the baseline maximum conforming loan limit in 2018 will increase by the same percentage.” – Federal Housing Finance Agency 

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5 Tips for Moving in the Winter

Winter can be a great time to become a homeowner. In many areas, the real estate market tends to slow down during the colder months.  With fewer buyers to compete with, you could get a great deal. One of the downsides to buying in the winter is having to move in unfavorable weather conditions, but with the right strategies and preparations, you can make sure your move goes as smoothly as possible. READ MORE

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