Through Guidance and Support, Stuart Epstein Assists a Former Client Again

"When I bought my first house, I worked with Stuart Epstein and his team and they did a great job holding my hand as a first-time buyer. So 5 years later, when I decided to move, of course I turned to Stuart again! What started as a fairly simple transaction became more complex with the terms of the sale of my house, and Stuart offered guidance and support all along the way. Without Stuart and his team, I fear my new purchase would not have been possible, but because of their attention to detail, quick response, and extensive knowledge of all of my options, my settlement was flawless.  

I would recommend Stuart Epstein and his team to new homebuyers and second-time homebuyers alike and I look forward to working with them in the future as well. Thank you so much, Stuart!"

-Julie

Can You Afford That Home? Perception vs. Reality

Stuart Epstein, the Maryland mortgage consultant, discusses the perceptions – and the reality – associated with home ownership and obtaining a mortgage.

Anyone who has paid attention to the economy over the past several years – in other words, all of us – might have the notion that the lending restrictions resulting from the economic meltdown have made it difficult or impossible to get a mortgage loan approved.

Indeed, a recent study by a major lender suggests that potential homeowners are overestimating the challenges involved in securing a mortgage loan, and the study reveals a few disconnects. While nearly 70 percent agree that now is a good time to buy a home, almost one-third feel that only people with high incomes can get a loan approved, and 64 percent believe that someone must have a “very good” credit score to be successful in obtaining a mortgage.

The issue is not that people are living beyond their means. Findings revealed that 82 percent of those surveyed said that they generally do not spend more than they earn, and more than 60 percent have money put away in a “rainy day fund.”

The biggest barrier to home ownership is considered the lack of funds for a down payment, especially among younger respondents. Almost half felt there were no desirable homes in a price range that would be affordable to them.

The reality is somewhat different. For example, FHA loans require a down payment as little as 3.5 percent of the purchase price, some conventional loans require as little as 3% down and programs such as VA and USDA require no money down. (44 percent of the survey respondents thought that a minimum of 20 percent down was required). 

In addition, there are many down payment assistance programs available that provide borrowers help with down payment and closing costs. The Maryland Mortgage Program and FHLB are two very popular 1^st time homebuyer programs in Maryland.

And as to the issues of affordability and credit scores, many lenders offer a wide variety of loan products to suit both the buyer and the home. Smaller lenders may have the flexibility that larger institutions lack.

The main lesson of the survey is that lenders in general have some educating to do in order to close the gap between the perception that qualifying for a mortgage is impossible for most, and the realities of the current marketplace.

Wondering if you’re qualified, or whether that home is affordable? Contact Stuart Epstein, Your Mortgage Consultant for Life. 

Fixed-Rate vs. Adjustable-Rate Mortgage

Stuart Epstein, the Maryland mortgage consultant, explains the difference between a fixed-rate and an adjustable-rate mortgage.

Just as you research which type of car is the most practical and suitable for your lifestyle, you need to do the same with a mortgage. There are two general types of mortgages -- fixed-rate and adjustable-rate. The entire list of mortgage types is much more extensive, but they all fall under one of these two categories. Determining which type of mortgage is the better choice for you is an important task to complete in the early stages of the home buying process. So, what’s the difference…and more importantly, which is best for me? 

Fixed-Rate Mortgage

This type of mortgage has an interest rate that will remain the same for the entire existence of the loan. Fixed rate mortgages are usually offered in terms of 10, 15, 20 or 30 years. Even though the interest rate is fixed, the amount of interest that you pay during the life of the mortgage depends on which term you choose.

An advantage of a fixed-rate mortgage is that your interest rate will never change even if the index of interest rates rises. This will help with budgeting because you will always know approximately how much your monthly payments will be over the course of the loan. Those payments may change somewhat if property taxes, insurance or other escrow items go up or down, but the largest components of your payment, principal and interest, will remain the same.

A disadvantage of this type of mortgage is that since your interest rate is fixed, you may pay more interest over time if rates fall.

Adjustable-Rate Mortgage (ARM)

With this type of mortgage, the interest rate fluctuates based on a specific benchmark. Initially, the interest rate will start out low, usually lower than the market rate, and then it can rise (or fall) over time. This initial rate could remain constant for months or years. After this introductory period, your interest rates and monthly payments will most likely rise, and your rate will fluctuate with market rates over the life of the mortgage.

The lower initial payments are a central advantage of an adjustable-rate mortgage, and may allow you to qualify for a larger loan. In addition, if market rates fall later on, your interest rate will drop as well.

A disadvantage of ARMs is that they can be unpredictable. You should always be prepared for increasing interest rates, especially given the historically low rates of the past several years. This can be problematic if you are on a tight budget and can only allocate a certain amount of funds for your mortgage. Many ARMs will have limits in place on how much, and how frequently, your rate can increase. Understand the terms of your loan and be certain you can handle a worst-case scenario if interest rates rise.

Here’s an example: A 5/1 Libor ARM 2/2/5.  A 5/1 ARM means that the introductory rate is set for the first 5 years, and after that it adjusts each year on the anniversary of the loan.  The annual adjustment is based on an “Index”, in this case, the 1 Year Libor plus a “Margin”.  The Libor right now is very low, around .5% and the typical margin is 2.25%, so the adjusted rate today would be 2.75% - not bad!  The 2/2/5 means that the maximum first and annual adjustment would be 2% and the lifetime maximum adjustment is 5%.  So if your starting interest rate was 3%, the maximum it could adjust to over the 30 years would be 8%.

Lenders offer 1, 3, 5, 7, and 10 year ARMS.  So the period of the rate being set depends on the type of ARM you choose.  If you purchase a home with the plan to live in that home for less than 10 years, and ARM may be a very smart choice for you. 

For more information on the difference between a fixed-rate and an adjustable-rate mortgage or how to determine which one is the best option for you, contact Stuart Epstein at 410.491.0200 or sepstein@baybankmd.com, your Mortgage Consultant for Life.

From Nervous to Relaxed, Stuart Epstein Helps a Client Through The Home Buying Process

Another touching testimonial from a client. Thanks Elaine, we enjoyed working with you!

My name is Elaine and I started the home buying process with Carrollton Mortgage in March 2014 as a first time home buyer. My first visit to the Timonium office was a pleasant one. I was very nervous and didn’t know what to expect as a new home buyer but Stuart, Jennifer made me feel like I was a part of a family and I soon relaxed. Stuart, Jennifer, Audrey and Lindsey were very patient and explained all the details and answered any questions that I had. I would recommend anyone to them because I want them to feel the same trust and confidence as I did. If I had to rate them on a scale of 1-5...5 being outstanding I’d give them 5.

I must give a special shout out to the receptionist...she is very nice. I love her friendly attitude and encouraging personality. She told me about her home buying journey and made me feel confident that I was in the right hands. Thank you

Thank you all very much and keep up the great work!

A Client's Positive and Supportive Experience with Stuart Epstein

When I was referred by a friend to Carrollton Mortgage Services and Stuart Epstein, I never expected such a positive and uncomplicated experience. The team is prompt, supportive, invested,and most importantly, dedicated and committed to making every step as comfortable as possible. When first meeting Stuart, I was nervous and terrified of being judged and perceived as an "unprepared buyer". My feelings were negated the moment I shook hands with him and was invited to his office. He is the most down to earth and friendly individual, while maintaining professionalism and investment in your needs. I was able to get in contact with him during hours in the evening when he was not in the office, and he was not at all bothered or unwilling to sacrifice some extra time. I also experienced all positive relationships with the staff as we coordinated the many documents and necessities needed for home buying. I will refer everyone I know to partake in the wonderful journey of home buying with Carrollton Mortgage, and I encourage even those with endless questions and concerns. All your insecurities or doubts will be reassured by this fabulous team!

-Megan Heath

Bay Bank Community Shred Day

Bay Bank Community Shred Day is Saturday May 3, 2014 from 9:00 am until noon. Need a secure way to get rid of personal documents? Bring your documents dice them for FREE!

Words from a Happy Client About Her Homebuying Process

It's always nice to hear from our clients and hear about their positive experiences...

Dear Stuart, Jen and Audrey:

I wanted to sincerely thank you for all of the time and effort you put into helping me close on my hew home!  This was such an easy and effortless process thanks to your hard work!  I will be sure to spread the word of your great customer service and efficient work to my friends and co-workers!  Again, THANK YOU!  

- K.J.C.

To everyone; our business continues to grow through your referrals. Thank you so much for your trust and support!

Are you looking for a better opportunity? CMS is Growing - Be a Part of It!

To download the PDF, please click here.

The Do’s and Don’ts of Getting a Mortgage

Most borrowers want their mortgage closing to be simple and stress-free. That is why it is important to avoid the behaviors that can have an adverse effect on the mortgage application process, and to do the things that keep your financial picture frozen in a stable position until the loan closes.

Follow the basic steps below and you should have a worry-free experience when going through the mortgage process:

Do: 

• Continue making your mortgage or rent payments: Late payments on existing mortgages, car loans, or student loans are reported to the Credit Reporting Agency (CRA). A thirty day late payment can cost a potential homeowner several points on their credit score.

• Stay current on all your existing accounts: You can still use credit cards during the home buying process, but it is important to keep them in good standing.  Any deviations from normal spending patterns can seem suspicious.

• Keep working at your current employer: It is important to keep your income and employment information consistent during the mortgage application process.

• Keep your same insurance agency: Keeping your insurance agency the same is an essential step to making a smooth mortgage application process.

• Continue living at your current residence: Keep your contact information the same.  Changes in residence can show instability, which can negatively affect the mortgage closing process.

• Call your loan officer if you have any questions: If you have questions during the loan process, feel free to call me directly at 410.491.0200 or email at sepstein@baybankmd.com.

Don’t:

• Quit your job: Don’t make changes with your employment or income.

• Change bank accounts: Don’t make changes to your financial accounts.

• Open a new cell phone account: Don’t make changes to your contact information. Also, some cell phones plans rely on credit scores.

• Make unusually large deposits into your checking or savings accounts: Deposit amounts that are out of the ordinary will raise questions from the underwriter unless the deposit is a documented gift. Similarly, don’t make large transfers from one account to another.

• Make changes to the purchase contract: Don’t make changes to the purchase contract without first consulting your lender.

• Make large purchases (car, jewelry, boat, etc.): This can also include starting large home improvement projects, furniture, joining a fitness club, or financing any elective medical procedures.

• Apply for a new credit of any kind: It is important to not establish any new lines of credit during the loan application process, whether it is a credit card or a new loan.

• Finance furniture purchases: Furnishing a new house can be exciting.  However, some furniture retailers offer credit extensions for purchases. This can also affect your credit score.

• Pay off charge offs or collections without speaking to your mortgage lender: Paying off old collections can cause a drop in credit score.  Your mortgage loan officer will tell you to make a payment if it is necessary to secure the loan.

• Pay off loans or credit cards: Don’t pay off any loans, credit cards, or outstanding debt without first speaking to your mortgage lender.

• Close credit card accounts: Closing any credit card accounts can affect the debt to available credit limit ratio. Wait until after the mortgage has closed to cancel any credit card accounts.

• Max out or over charge credit card accounts: Once potential homeowners are engaged in the mortgage process, it is important to keep credit cards below 30% of the available limit.

• Consolidate debt: Consolidating debt can change the debt-credit ratio to where it becomes over 30% of the available limit.

For more information, please contact Stuart Epstein at 410.491.0200 or email at sepstein@baybankmd.com.

Kind Words from Another Satisfied Client

"With the help of Stuart Epstein and Jennifer Grosholz at Carrollton Mortgage Services/Bay Bank I am officially a home owner!

 

The house buying process is not for the faint of hearts. It involves a lot of time and energy just to find a house that you are interest in. Luckily for me, I had Stuart and Jennifer on my side for the loan process which saved me a ton of time AND energy. They are both informed about new home-buyer loans/grants, which was extremely helpful for me and ended up reducing my out of pocket expenses by THOUSANDS. They were also extremely helpful with keeping me in the loop with any documents needed to make the process move forward flawlessly.

 

I would HIGHLY recommend Stuart Epstein at Carrollton mortgage Services/Bay Bank for anyone interested in buying a house!"

 

- Ashley J.

FHLB Is Back for 2014!

FHLB IS BACK!

Federal Home Loan Bank of Atlanta
(FHLB) - $5,000 Grant!

The First-time Homebuyer Program (FHP) provides matching funds for down-payment and closing-cost assistance to low- and moderate-income homebuyers. Federal Home Loan Bank of Atlanta partners with member financial institutions to make awards of up to $5,000 per household. The money is distributed to eligible homebuyers on a first-come, first-served basis.

Check with us on 2014 Income limits to see if you/your buyer is eligible today!
 

Let Us Work for You! 

Please call Stuart directly at 410.491.0200 or sepstein@baybankmd.com.

 

View our flyer here. 

Realtors and Homebuyers: A Major Market Shift is Happening – Be Prepared!

We always hear about buyers' markets and sellers' markets in real estate – but do you know which one we are in right now?  Well, this may depend on where you are buying or selling, but my experience over the last few months is that we are in the middle of a BIG TIME shift that we have been awaiting for eight years.  Now if you are in the market to buy a home this year, don’t let this scare you.  In fact, it may be the most opportunistic time to buy in years! 

Let’s explore this first with a few simple observations…..

• There is a shortage of inventory on the market right now.  Although the number of homes for sale fluctuates by area and neighborhood, there are 5 buyers for every 2 houses on the market right now.  Naturally by supply and demand, this creates competition and drives prices up.  The good news is that with the spring market comes a lot of new inventory, so buyers who are prepared will be in the driver’s seat.
• There are more cash buyers in the market this year, which also drives up prices, without the appraisal contingencies to worry about.
• Interest rates on the rise – The Fed has tapered its stimulus from $85 billion to $65 billion in monthly purchasing of mortgage backed securities. This has resulted in higher rates, as we saw last fall when rates went from the 3’s to the 4’s overnight.  As we see the economy improve coupled with further Fed tapering, rates will continue to go up, creating more urgency from buyers.

OK – So Why is this Good News for Everyone? 

 

For buyers, the cost of money is still cheap.  With the national average FHA 30 year fixed rates below 4% and Conventional 30 year fixed rate just above 4%, getting in now is KEY.  As mortgage rates rise, so do interest rates on your savings and other investments. Locking in on a low fixed rate while all other rates go up gives you the best of both worlds.

 

Also, lenders are expanding product offerings.  We are starting to see more options for Conventional loans like old the 80/10/10, and 5% down with No Monthly PMI.

 

Sellers who may have not been able to sell for the last few years, or were previously unwilling to sell in a down market, will now be reconsidering the move since they may be able to get more for their home than they did last year or the year before.

 

Buyers – Be Prepared!

 

If you are in the market to buy a home this year, start by talking to a lender NOW.  Actually, talk to a couple lenders. 

• Find out what you qualify for before you start looking at houses.  The last thing you want to do is find your dream home, and then lose it to another buyer because you haven’t gotten your ducks in a row.  If you are scrambling at the last minute to secure a loan, you might not make the best choice in lender or loan type.
• If you are a 1st time homebuyer, you may be eligible for FREE money toward down payment and closing costs.  That’s right – FREE Money!  Not all lenders participate in all programs, so make sure you get hooked up with a knowledgeable lender.
• Have your lender show you on paper how one loan compares with another, what the costs are, and how each loan option affects your cash out-of-pocket and monthly payment.  The loan that your friend, family member, or co-worker got may not be the right loan for you. 
• If you are having a hard time understanding the information being given to you by your lender, don’t be afraid to ask questions until you do understand.  For most people, this is the largest obligation you will take on, and you should make sure you make informed decisions.

This is a very exciting time for anyone buying or selling a home.  Having a dedicated, caring, competent lender makes all the difference. 

 

Please call or email me if you would like more information on mortgage products and getting pre-approved so you are prepared when you or your client find your home of choice.

The Stuart Epstein Team at Carrollton Mortgage Services Just Got Stronger!

I am very excited to announce that we have just hired Audrey Thompson as our Mortgage Processor. Audrey comes to us with over 30 years’ experience in the business. Her wealth of knowledge and expertise in all loan programs will certainly enhance our ability to be the best lender around. I can’t tell you how thrilled we are to have Audrey join us!

Don’t forget we are still the GO-TO LENDER for all the 1st Time Buyer programs, including CDA and FHLB. We just rolled out a new Construction Perm Loan with great rates.

We also currently have a fixed rate product right now with rates as low as * 2.75% (APR 2.909)!

As always, we are honored when you choose us to be of service to you and your clients. Please let us know how we can help you!

                                                                 * Rates Subject to Change

Happy New Year!
Stuart Epstein
Production Manager
NMLS#789382
Stuart’s Assistant: Jennifer Grosholz (410) 427-7263 jgrosholz@baybankmd.com
Stuart’s Processor: Audrey Thompson (410) 427-7275 athompson@baybankmd.com