Mortgage Industry News Archives - Jagoe Homes

How To: Prepare Your Credit to Purchase Your New Home

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How To: Prepare Your Credit to Purchase a New Home

Your credit score plays a big role in the purchase of your new Jagoe Home because it affects your ability to secure a mortgage through our preferred lender, FBC Mortgage. Conventional mortgage lenders will typically want a FICO score of at least a 620, but those who score above 580 may still qualify for an FHA loan. With that in mind, here are some steps you can take to prepare your credit before applying for a mortgage.

Review Your Credit Report

Good credit is increasingly important for other things such as landing that new job or getting the best deal on insurance. You should check your report annually to contest and remove any erroneous information. Many people use Credit Karma, Experian and annualcreditreport.com for a free report.

Do NOT Open New Lines of Credit

New credit and even just inquiries can lower your FICO score. New debt has to be factored into your ability to qualify for your loan. A common and tempting mistake is to open new store credit cards to save on a purchase.

Do NOT Close Extra Credit Card Accounts

Closing account can actually hurt your credit score by increasing your “utilization ratio.” You should also refrain from transferring credit card balances to a new zero percent card. It’s smart to save on interest, but it will damage your score in the meantime. That can undermine your loan approval.

Do NOT Close Judgment and Collection Accounts

Paying off judgment and collection accounts can actually cause credit score to fall, especially if the accounts are old. It’s usually best to satisfy these at closing, but you should always ask your loan officer first.

Make ALL of Your Payments On Time

Keeping an emergency savings and automating payments so you won’t forget or have things lost in the mail are two great ways to assure timely payments. A recent 30 day late mortgage payment can actually drop your score by as much as 100 points. That’s huge! You may pay a late fee, but you may also pay a higher rate on financing and insurance. That can add up to many thousands of dollars over the life of a loan.

A Low Score DOES Affect Your Interest Rate

Low credit scores will often trigger “loan level price adjustments,” which will translate to higher interest rates.

Get Started on Your Brand New, Jagoe Home TODAY!

Jagoe Homes provides mortgage programs designed to meet the needs of your individual financial situation. We are here to help! Talk to Jagoe Home’ preferred lender, FBC Mortgage, and get started!

Want Competitive Rates & MORE Financing Options?

Of course you do. Check our FBC selection:

Want Answers FAST?

FBC is a leading national direct mortgage lender—we have the resources and staff to GET IT DONE!

For Financing please call:

FBC Mortgage, LLC

Bambi L. Wiggins

Branch Manager
Mortgage Loan Originator
NMLS# 369809
Cell: 502-389-0088
BWiggins@fbchomeloans.com
www.FBCHomeLoans.com/bwiggins

Kevin Young

Mortgage Loan Originator
NMLS# 1577520
Cell: 904-673-3173
KYoung@fbchomeloans.com
www.FBCHomeLoans.com/kyoung

Kyle Chubboy

Mortgage Loan Originator
NMLS# 1763549
Cell: 352-978-1811
KChubboy@fbchomeloans.com
www.FBCHomeLoans.com/kchubboy

jagoe homes fbc mortgage

Home Affordability Reaches 18-Month High

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Home Affordability Reaches 18-Month High

If you took an economics course, then you know that the U.S. economy goes through highs and lows, ups and downs, and that affects affordability in the housing market. In fact, the housing market is a fantastic indicator of how well our economy is doing. Forbes reports that we are in the nation’s longest economic expansion… ever. Surely, if we are at an all-time high, we must dip back down eventually. After Wall Street saw a severe routing on Wednesday, the average person may think that we are heading into our next recession.

However, it’s important to read between the lines. The truth is, it’s never been more affordable to own a new home.

affordability

If you couldn’t afford a home 18 or 6 months ago, you may be able to afford one today.

The nation’s economy has been growing for 121 consecutive months. Now is a fantastic time to lock in your interest rate and get started on your dream home. Interest rates hover around 4% today, which is still a major low compared to the 8% interest rate before the last recession.

With Jagoe Homes and our preferred lender, FBC Mortgage, we can get you prequalified for your brand new, Jagoe Home today! Build on your own site in Southern Indiana or Western Kentucky, or choose a home site in one of our beautiful, conveniently located communities in Bowling Green, Louisville and Owensboro, Kentucky, and Newburgh, Evansville and Huntingburg, Indiana.

Jagoe Homes and FBC Mortgage make your home buying experience simple!

Visit a Jagoe Model Home and speak with a New Home Sales Consultant to get started! We are here to help! Chat with an Online Sales Consultant to set your appointment, or Take a Virtual Tour of select home plans.

Click Here to get prequalified with FBC Mortgage.

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THIS WEEKEND ONLY – Saving You Green

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THIS WEEKEND ONLY – Jagoe Homes is Saving You Green!

Purchase a Move-In Ready Jagoe Home and Get:
  • One of the following FBC Mortgage Rate Programs:
    • 2.625% (APR 5.969%) FBC Mortgage 2/1 Rate Buydown FHA or Conventional**
    • 3.99% (APR 4.064%) FBC Mortgage Conventional Permanent Rate Buydown***
    • 3.99% (APR 5.052%) FBC Mortgage FHA Permanent Rate Buydown****
  • Reduced Pricing on Select Move-In Ready Homes*
  • Up to $2,000 in Closing Costs*****

Offer only valid from March 15th – March 18th, 2019.

View Available Jagoe Move-In Ready Homes that Qualify!

FBC Mortgage, LLC is an Equal Housing Lender. NMLS# 152859. All products are subject to credit and property approval. Programs, rates, program terms and conditions subject to change without notice. Not all products are available in all states or for all amounts. Other restrictions and limitations may apply.

*St. Patrick’s Interest Rate offer & Reduced Pricing good on Jagoe Select Move-In Ready Homes that are under agreement no later than March 18th, 2019. Limited to 1 select Move-In Ready Home per community.

**2.625% 2/1 Rate Buydown FHA Rate, 3.5% down payment, 30 year fixed rate loan after 2nd year. Interest rate based on minimum credit score of 640, lock rate of 45 days, close by 04/30/2019, and is subject to change daily, other restrictions may apply. APR 5.696%.

***3.99% Conventional Permanent Rate Byuydown, 15% down payment, 30 year fixed rate. Interest rate based on minimum credit score of 740, lock rate of 45 days, close by 04/30/2019, and is subject to change daily, other restrictions may apply. APR 4.064%.

****3.99% FHA Permanent Rate Buydown, 3.5% down payment, 30 year fixed rate. Interest rate based on minimum credit score of 640, lock rate of 45 days, close by 04/30/2019, and is subject to change daily, other restrictions may apply. APR 5.052%.

*****Up to $2,000 in clsoing costs from Jagoe Homes based on using their approved lender, FBC Mortgage. Pre-paids not included.

How Much of a Down Payment Do YOU Need?

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How Much of a Down Payment Do YOU Need for Your New Home?

Once home buyers begin the process of building their new home, they often overlook the importance of a Down Payment. This can be a daunting, tall hurdle for some. So, how much do you REALLY need to put down on a home?

Plan Ahead and Save

Many home buyers have dreamed or at least done some research months, maybe years before they are finally ready to start the building process. Once you know that you are ready to build your new home, it’s important to start saving up for your Down Payment. This is the amount of money you spend upfront to purchase the home and is typically combined with a home loan to fulfill the total purchase price of a home. In addition to your Down Payment amount, your credit score, credit history, total debt and annual income will influence how much of a loan you can qualify for.

Zillow offers a great tool, the affordability calculator, to approximately calculate how much home you can afford. Here you enter in your annual income, monthly debts and a Down Payment amounts to generate the overall price of a home you can comfortably afford.

The Standard for a Down Payment

A 20 percent Down Payment is considered ideal, and it also gives you many benefits. Putting that larger amount down lets you avoid paying private mortgage insurance (PMI), it can help you qualify for a lower interest rate, which can help you save thousands over the life of your loan.  It will also give you more equity faster, and it will result in a smaller monthly mortgage payment.

There are Many Ways to Cultivate a Down Payment

Saving money over time is just one way to build up enough money for your Down Payment. In fact, there are many financing options available! Many people building their new home use the net proceed from the sale of their existing home. Additionally, some home buyers choose to fund part or all of it with the sale of personal property of value other than real estate.

Our new Buy & Save plan helps you save the necessary funds to buy your brand new Jagoe home. A Jagoe New Home Sales Consultant helps you set up a specific schedule during the building process that allows you to make weekly or monthly payments so your Down Payment is fully funded in time to close.

Gift Funds are another way to partially or wholly fund your payment. This is usually an outright gift of cash from a relative, employer, labor union, charitable organization, government agency or public entity.

For More on Down Payment Assistance, Visit Our Website!

down payment
You Do Not Have to Put Down 20 Percent

While getting a Zero-Down Payment loan is challenging and you have to meet a strict set of criteria, there are other programs that offer lower down payments that may be more achievable.

One of the most popular of the Low-Down Payment loans is a Federal Housing Administration (FHA loan), which allows for 3.5 percent down. One of the downfalls of this program, however, is that you still have to pay mortgage insurance premiums to protect the lender if you default on your loan.

Buyers are also taking advantage of two Fannie Mae loans; Conventional 97 and HomeReady mortgages, which both allow for a minimum down payment of just 3 percent. HomeReady mortgages are designed for creditworthy, low to moderate income borrowers, with expanded eligibility for financing homes in designated low-income, minority, and disaster-impacted communities. Conventional 97 mortgages are designed to help creditworthy home buyers who would otherwise qualify for a mortgage but may not have the resources for a larger down payment.

Outside of these Fannie Mae, FHA, VA and USDA loan types, there are state and local assistance programs that can help you get into a home with a low-down payment. There are also towns that offer incentives to move there, ranging from student loan forgiveness to free lots of land to build on. Even though these programs don’t cover your down payment for you, they can help you save money elsewhere if you can come up with the initial down payment up front.

Contact Your Jagoe New Home Sales Consultant to Get Started TODAY and Speak to Our Preferred Lender, FBC Mortgage!

jagoe homes fbc mortgage

6 Ways to Be Home with Jagoe in a Seller’s Market

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6 Ways to be Home with Jagoe in a Seller’s Market – 2018 Housing Market Trends

What is a seller’s market? Simply put, it’s a market where there are more home buyers than sellers. Based on basic laws of supply and demand, this means that sellers have the upper hand. You will likely sell your used home quickly, perhaps even for over asking price, with minimum argument or push-back from the buyer. Here’s what buyers need to know about a seller’s market and how to survive them.

  • Home prices are rising in U.S. cities, and inventory is tight, meaning that there just aren’t enough homes to go around. When you think about it, even though the number of homes being built has increased over the past ten years, it has not kept up with the population growth.
  • Where are the hottest seller’s markets? The main metric used when evaluating housing markets is home price appreciation. With the greater imbalance of supply and demand, the price appreciation will get faster. Generally, when there’s an increase in the number of people moving to a town, demand for housing begins to exceed supply. Just as well, an influx of new companies and jobs can fuel population growth that turns areas into seller’s markets.

seller's market

  • The term “Housing Starts” refers to the number of new homes on which builders have started construction in any particular month. Because new construction directly affects supply, a decrease in housing starts can result in a seller’s market. See what the new construction trends are in Owensboro, Bowling GreenLouisville and Evansville.
  • Are you in a true seller’s market? Home buyers and sellers can evaluate whether they’re in a buys or sellers market by a few variables.
    1. Average days on market (DOM): This measurment shows the median age of real estate listings in your area. If homes are selling in your neighborhood in about ten days, then it’s a strong seller’s market. You can find what the average DOM is in your city using this Local Market Trends tool.
    2. The asking price vs. the final home price: In seller’s markets, bidding wars can often irrupt among buyers, which means sellers may enjoy a final sales price that’s equal to their asking price. So, if a home is listed at $450,000 and sells for $450,000, $460,000, or higher, that’s a seller’s market. In a strong seller’s market, the final sales price is typically at least 10% higher than the asking price.
    3. Home prices over time: Rising home prices over time is a sure sign of a seller’s market.
  • Buying a home in a seller’s market means that you need to be competitive. Make sure to get a mortgage pre-approval letter before you start shopping so that a seller knows that you are serious. You may also have to waive some contingencies to edge out other buyers.

seller's market

6 Ways to Be Home with Jagoe
  1. Did you know? From start to finish, Jagoe will complete the home of your dreams in 120 days! View our Building Process.
  2. Want to know? What kind of monthly payment gets you into your new dream home? A visit to our website helps you find out fast! Check out our Finance Options.
  3. Is your credit dinged? Our pros know how to help hardworking people get the home they deserve. It starts on our website. Yes, we make it that painless! Help to Improve Credit.
  4. Love interior design? Want to be the interior design decision maker? Building a Jagoe home gives you limitless options. Visit our website for ideas! Pick Your Options.
  5. Can’t wait? You don’t have to. We have beautiful, brand new homes all ready for you to move in. Find one in your community by visiting our website! Ready to Move-In Now.
  6. Want to save up to $30,000? We have gorgeous, band new homes all ready for you to move-in, and you’ll save big! Pick a Bunch of Savings.

Do you need help financing your new Jagoe Home? Visit our website for First Time Homebuyer Help, our Mortgage Center, Home Loan Learning Center, and Down Payment Assistance, or learn about our SureTrade Program!

 

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Home Ownership is Still the Best Option

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Home Ownership is Still the Best Option, According to Lenders

Home ownership is still the best option in the market areas of Owensboro, Bowling Green, Huntingburg, Evansville, Newburgh, and Louisville .  Affordability constraints have emerged as one of the biggest challenges to the continued housing recovery since the 2008 crash. However, based on the breakeven rate, it will be a long time before renting becomes the more sensible and attractive option.

home ownership

Today, mortgage rates are still at an all-time low – 4.00% for a 30-year conventional loan. Even if mortgage rates were to rise by a considerate amount, they are not likely to impact home buying nationally to any significant degree. That is the conclusion that many have reached when looking at the so-called mortgage breakeven rate, which refers to the rate at which mortgages would need to be at to make rent the more sensible option.

On a national level, the mortgage breakeven rate is generally believed to be around 8% or higher. This means that, all things being equal, the cost of buying would be the same as the cost of renting when mortgage finance rates are 8%. Of course, the breakeven rate varies across regions and is said to be much lower – perhaps 5% to 6% – in places like San Francisco and new York City.

While mortgage rates are widely expected to rise as policymakers roll back post-crisis stimulus programs, they remain less than half of the breakeven rate. The average commitment rate on a 30-year fixed-rate mortgage averaged 3.90% in the week ended August 10, according to Freddie Mac. The 15-year fixed rate was 3.18% and the 5-year adjustable rate was 3.14%. Rates peaked in December, when the 30-year fixed rate climbed to 4.32%. They have been in general decline ever since, partly in response to monetary policy expectations.

Of course, the breakeven rate doesn’t tell the whole story. It doesn’t consider the myriad of other affordability challenges that have made homeownership less attractive than rent, especially for first-time buyers. Stagnant wages, surging home values and supply-side constraints have all made homeownership out of reach for many Americans.

However, there is no denying that an increased demand for housing is on the rise, especially with low inventory numbers. Unemployment is the lowest it has been in 16 years and job creation remains steady. As a result, home prices are up in 64 consecutive months when measured in year-over-year terms. For now, the housing market appears to be on even keel as there are more positive factors boosting it than dragging it down.

Based on the trajectory of home values, buying remains the logical choice.  While rates and homes prices remain low they are steadily moving upward, so NOW is the right time to take advantage of your Buying Power!

Six Reasons You Should Buy a Home in 2017

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If you’re thinking about purchasing a home in 2017, you’re not the only one. Here’s why…

This is the perfect time of the year to “warm up” for the house hunt so that you can hit the ground running in 2017 as soon as you’re ready to buy your new home. Whether you’re looking in Southern Indiana or Western Kentucky, the prep work is relatively the same.

Check your Credit Score

A credit score is a numerical representation of your credit report. FICO scores range from 300 to 850, and the higher your score, the better. Typically, you’ll get the best interest rate on a loan if your score is 740 and above. A higher credit score should warrant you a lower mortgage rate. A lower rate, although it may only be one or two percent lower, can mean saving you thousands of dollars a year. If your credit score falls short, get busy repairing it!

Don’t Open New Credit Cards

Tempting as saving at checkout can be, opening new credit in 2017 may hurt your chances of getting a mortgage, or at least of getting the best rate on a loan. By opening a new credit card account, you’ve created a new line of credit. That credit line, and what is borrowed, can change the application numbers and jeopardize the application.

Keep Tabs on Interest Rates

If you hear that interest rates are at historic lows, or that interest rates are on the rise, you should not assume that you can get the rock-bottom rate in 2017. Not everyone gets the same interest rate on a mortgage loan. It depends on your financial picture and on the lender you choose. Closing costs can vary as well, although Jagoe Homes currently offers up to $2000 in closing costs with our new incentive based on using our approved lender, American Mortgage Services Company.

2017

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Purchasing a Home is now 38% Cheaper Than Renting

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Is renting or buying a better financial bet?  Although the gap between renting and buying is narrowing across the U.S., home ownership is still 38% cheaper than renting.  Rising mortgage rates and home prices have narrowed the gap over the past year, though rates have recently dropped and price gains are slowing.  Now, at a 30-year fixed rate of 4.5%, buying is 38% cheaper than renting nationally.

Even though prices increased sharply in many markets over the past year, low mortgage rates have kept home ownership from becoming more expensive than renting.  Perhaps the best financial reason to buy is that it enables you to gradually acquire ownership, or equity.  Renting has the serious downside of not acquiring equity, so renters never end up owning and must continue to pay rent, perhaps for their entire lives.  Yet, if people rent at low enough costs, they may have money left over to invest and make up for their lack of home equity — if they have the discipline to put money aside.

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Six Stellar Reasons to Purchase a Home in 2016

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We are well on our way into 2016, and counting down the days until we can walk outside without becoming a human popsicle.  For those of you who plan on purchasing a home in this new year there’s a whole lot to celebrate.  Why, you ask?  A variety of financial vectors have dovetailed to make this the perfect storm for home buyers to get out there and make a fantastic offer.  Here are six reasons to be thankful for home builders while ringing in the new year:

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Three Often Overlooked Real Estate Tax Breaks

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Minimize what you’ll owe and maximize what you’ll get back at tax time by reviewing these often overlooked real estate tax breaks.

Like clockwork, at the beginning of each new year, it seems that folks start making plans to either buy a home, move up or downsize, or simply spruce up and upgrade their current home as part of a New Year’s resolution.  And then, of course, there’s tax season. Prep work begins as soon as those big envelopes start arriving in the mail, containing an assortment of tax forms — documenting everything from what we earned last year to what we paid out for mortgage interest.

The first step is to make sure you’re not actually missing any tax deductions and breaks. The tax code is 4 million words and more than 70,000 pages long. But here’s a dirty little secret: most Americans tap into fewer than 15 pages of it.

To ensure you’re not missing out on anything you’re due, consider these three real estate–related tax breaks that are often missed, overlooked, and underused.

taxState and Local Tax Breaks for Green Home Improvements

As the recession recovery made its way into full swing back in 2013, many renters and current homeowners began embarking down a path of buying homes that are energy efficient for a variety of reasons, including cash savings on utility bills.  Many of those improvements are eligible for state, county, and/or city tax credits — or tax breaks. If you’ve installed low-E windows, insulation, low-flow plumbing appliances, tankless water heaters, or solar panels last year, dig up your receipts. Trust us, it’s worth the time.

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