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.