4 Benefits of Using a VA Loan to Buy a Home

01. No Requirement for Private Mortgage Insurance (PMI) – One of the most significant advantages of utilizing a VA loan is the absence of private mortgage insurance (PMI) requirements. Unlike conventional loans, which often require PMI for borrowers with a down payment below 20%, VA loans do not impose this additional monthly expense. PMI can significantly increase the overall cost of a mortgage, making VA loans an attractive option for those seeking to save money in the long term.

02. Zero Down Payment – Another notable benefit of VA loans is the ability to purchase a home without making a down payment. Traditional mortgage programs typically demand a substantial down payment, which can pose a significant financial barrier for many homebuyers. With a VA loan, eligible borrowers can finance up to 100% of the home’s value, eliminating the need to accumulate a sizable upfront payment. This aspect of VA loans not only enables easier entry into homeownership but also preserves valuable savings for other purposes, such as home improvements or emergencies.

What do you think of these 4 benefits of using a VA loan to buy a home?

03. No Prepayment Fees – Flexibility is a key advantage of VA loans, as they do not impose prepayment penalties. Prepayment penalties are charges incurred when borrowers pay off their mortgage ahead of schedule or make larger payments to reduce their principal balance. By eliminating these fees, VA loans empower borrowers to make additional payments or even pay off their mortgages early without incurring any financial penalties. This feature grants greater financial freedom, allowing homeowners to save money on interest and potentially become debt-free sooner.

04. Lower Minimum Credit Score Threshold – Obtaining a mortgage often requires a good credit score, which can be a challenge for some homebuyers. However, VA loans typically have more lenient credit score requirements compared to conventional loans. While individual lenders may have their own credit score standards, VA loans generally offer greater flexibility, accepting lower minimum credit scores. This accessibility enables more aspiring homeowners with less-than-perfect credit histories to secure favorable loan terms and realize their dreams of homeownership.

Utilizing a VA loan to purchase a home comes with an array of compelling advantages. The absence of private mortgage insurance (PMI) requirements reduces monthly expenses, while the ability to secure a loan with zero down payment enables easier access to homeownership. The elimination of prepayment fees promotes financial flexibility, and the lower minimum credit score threshold broadens eligibility for a wider range of homebuyers. These benefits make VA loans an attractive option for veterans and active-duty military personnel looking to embark on their homeownership journey. If you are eligible for a VA loan, it’s worth exploring this opportunity and taking advantage of the numerous benefits it offers. Ready to start your home buying journey? Visit us here!

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5 hidden costs of buying a home

Closing Costs

Closing costs are fees that are paid at the time of closing, which is when the sale of the home is finalized. These costs typically include fees for things like the title search, appraisal, and legal fees. Depending on the cost of the home and the location, closing costs can be significant, and can range from a few thousand dollars to tens of thousands of dollars. It’s important to budget for these costs when you’re planning to buy a home.

Moving Costs

Once you’ve purchased your new home, you’ll need to move all of your belongings into it. This can be a significant expense, especially if you’re moving a long distance or have a lot of belongings. Some of the expenses you might encounter when moving include hiring a moving company, renting a moving truck, buying packing supplies, and paying for storage if you need to store your belongings temporarily.

Home Inspection

Before you purchase a home, it’s important to have it inspected by a professional home inspector. The cost of a home inspection can vary, but it’s generally a few hundred dollars. While this cost may seem like a lot, it’s worth it to ensure that you’re not buying a home with serious issues that could cost you thousands of dollars in repairs down the line.

Title Insurance

Title insurance is an insurance policy that protects you in case there are any issues with the title of the home you’re purchasing. This can include things like liens, easements, or other legal issues that could affect your ownership of the home. The cost of title insurance can vary, but it’s usually a few hundred dollars. While it’s not required by law, it’s highly recommended that you purchase title insurance to protect yourself in case there are any issues with the title.

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Let’s take a look at the 4 items you’ll need to collect before applying for a home loan.

01. Proof of Income – Lenders want to see that you have the ability to pay for the home after closing. Because of this they will ask you to provide proof of income. This will consist of 2 years of tax returns and your latest w-2’s. Lenders do not require you to be at the same job for 2 years, but they will want to see consistent income, ideally in the same field. 

02. Proof of Assets – Supplying the lender with proof of assets help the lender decide the type of mortgages you qualify for and sometimes even the interest rate you receive. Most common assets include cash, physical assets (like cars, boats, homes), and liquid assets (like 401ks, stocks, bonds). Supplying proof of all assets will help the lender qualify you for a higher loan amount than they’d be able to without proof. Still have questions on what to include? Consult your CPA!

While the bank *may* ask you for more documentation, these are the core 4 items you need to get started!⁠

03. Good Credit – Most loans have a minimum credit score requirement to qualify. Having a good credit score suggests that you have no problem making payments on time. Usually, the better your credit – the better your interest rate. The most common loan requirements are as follows: Conventional – 620, FHA – 500, VA – 640, and USDA – 640. 

04. Employment Verification – Your lender will require verification of employment to issue a pre approval letter and again right before closing. These documents can include an employment verification letter, a recent pay stub, or anything else to prove an employment history and confirm income. 

Interested in starting your home buying journey? Click here to connect with a Sage & Cedar agent and set up a one on one buyer education meeting! 

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3 Reasons to Buy a Home in 2023

01. Evening out home prices – It is predicted that home prices will continue to even out as interest rates fluctuate over 2023. This means you could purchase a home now, and refinance in a year if rates go down.

02. Switch to a buyers market – The Zillow Home Price Expectations Survey show that higher mortgage rates may impact demand enough to reduce the amount of competition between homebuyer in 2023, giving buyers more leverage than sellers.

Does buying a home in 2023 make sense for you?

03. Long-Term ROI – In 2000, average US home value was $126,000 – a 106% increase in two decades. If your personal goals are centered around creating roots in a community, building long term return on investment, or creating/growing your family (whatever that may look like), there is no time like the present!

Interested in starting your home buying journey with a Sage & Cedar agent? Click here to schedule a meeting to talk about the process, lenders, the current market, and answer any questions you may have! We look forward to hearing from you!

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Here are the top 5 things we often find during a new construction home inspection.

01. Nail holes and damage to roof shingles – Boards are commonly nailed to the roof so that workers can gain footing while working on the roof, the holes from these nails are commonly left in place and will eventually cause leak issues. Also, ladders are sometimes put on roofs and the ladder feet do damage to the roof shingles. These damaged shingles typically go unnoticed and are not replaced.

02. Gaps in the roof line – Roofline gaps are a common entry point for rodents. These are found where the roof singles lap into the gutters

03. Yard grading – It is important that all grading slope away from the home so that water can be controlled. Many times, grading is done improperly around the home or is installed too high. Both can cause future headaches for you. 

It is common to find work that just wasn’t fully completed and the builder does not know about it.

04. Incomplete work – It is common to find work that just wasn’t fully completed and the builder does not know about it. This could include disconnected duct pipes, missing paint, missing siding, missing roof material, missing insulation, appliances not fully installed, etc. 

05. Doors – Door installation can be tricky. It is common to find exterior doors that have daylight gaps around them and interior doors that don’t fit the frame correctly. 

Interested in starting the home buying process? Click here to connect with a Sage & Cedar agent!

Want to start your search online? Click here!

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If you’re looking for a home to buy in the Atlanta area, you’ll be quick to realize that there’s a MAJOR supply & demand issue! But…why?

Builders are having issues finding qualified contractors, and there are fewer & fewer choosing to build now because of the inflation in lumber and supplies it takes to build a home. Let’s talk about building a home – supply and demand.
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In addition to NOT wanting to lose money, the number of homes they *CAN* complete is cut down because they’re running out of product due to COVID-related inefficiencies. Things like appliances and electrical supplies are on backorder or are just not being produced right now.⁠
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Things like appliances and electrical supplies are on backorder or are just not being produced right now.

To put it short, In order to build homes now, the cost is much, much higher. Builders simply don’t want to lose major $$$ on building properties that would cost less to build once the supply process comes down.⁠
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So if you’re in the building process right now, hold tight! Hopefully, as things return to a more normal, balanced state we will see builders pick up speed on the process. If you’re looking to get started with an S&C agent, contact us here!

Or start your new construction home search here! 

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