If you're considering buying a home while dealing with unpaid taxes, you might be wondering how your tax debt affects your mortgage approval. The good news is, it is possible to buy a home even if you owe taxes. Here’s what you need to know about how owing taxes can impact your homebuying process. How Owing the IRS Affects Buying a Home You might not need to wait until your tax debt is completely paid off to apply for a mortgage. It’s important to speak with a loan officer who can guide you through your options based on your specific financial situation. If you’ve been paying off your tax debt through a payment plan, be sure to let your loan officer know and provide … [Continue Reading...]
Experiencing bankruptcy can feel like a significant setback, but it doesn’t mean the end of your dream to own a home. With time, effort, and careful planning, you can rebuild your financial foundation and secure a mortgage. Here are some key steps to guide you through the process of buying a home after bankruptcy. Step 1: Get a Professional Credit Assessment After your bankruptcy is discharged, there is typically a waiting period before you can apply for a mortgage—usually two years for Chapter 7 bankruptcy and as little as one year for Chapter 13, depending on the loan type. Use this time to focus on improving your credit score. Your credit report will be closely scrutinized by … [Continue Reading...]
As the holiday season surrounds us with its warmth and cheer, we reflect on the incredible connections we’ve made this year. To our valued clients, whether we’ve worked together already or you’re considering partnering with us—thank you for trusting us to be part of your journey. This season is not only a time for celebration but also a moment to appreciate the opportunities ahead. We’re truly grateful for the chance to help you achieve your dreams, whether it's finding the perfect home or planning for a brighter financial future. As we step into the new year, we’re filled with hope and excitement for what’s to come. May this holiday season bring you … [Continue Reading...]
Refinancing can help homeowners save money, but it’s essential to determine if the potential savings outweigh the upfront costs. One key tool in making this decision is calculating the refinance break-even point. This simple calculation reveals how long it will take for your monthly savings to cover the costs of refinancing. Here’s everything you need to know about determining when refinancing will pay off. What Is the Refinance Break-Even Point? The refinance break-even point is the time it takes for the savings from lower monthly payments to equal the total costs of refinancing, such as closing fees and other expenses. For example, if your closing costs are $4,000 and you save … [Continue Reading...]
The rate cut by the Federal Reserve was hotly anticipated, and as predicted, they proceeded with the reduction, signaling the possibility of further cuts depending on inflation data. Although markets were generally receptive to the positive news, other government-related issues had dampened the high spirits temporarily. Outside of the rate decision, the PCE Index (the Federal Reserve’s preferred inflation indicator) has performed positively by beating the forecast. In addition, the Consumer Sentiment was exactly where it should be as expected. PCE Index The PCE index increased a scant 0.1% last month, the government said Friday. That’s the smallest rise in three months and just … [Continue Reading...]
Buying a home is a huge milestone, and the excitement of closing can lead many buyers to quickly accept any mortgage offer without fully understanding its terms. One important detail to watch for is whether your mortgage includes a prepayment penalty. This fee can be an unwelcome surprise, so it’s crucial to know what you’re signing up for before finalizing your loan. What is a Prepayment Penalty?A prepayment penalty is a fee that some lenders charge if a borrower pays off their mortgage within a specified period, typically during the first two to five years. Though less common, some loans still include this clause. The lender charges the penalty to recoup the loss of expected … [Continue Reading...]
