Patrick O'Shea - Edge Home Finance

Anyone saying "you need a 20% down payment to buy a house" is out of touch.

This myth has been killing the dreams of many for far too long.

Don't wait to buy. Buy and wait.

Also, we have a program that requires ZERO down payment on conventional loans (great for first-time home buyers!) 😱

Hit me up for details. 📲

If you want a 90-second tutorial on home finance education, read below.
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"What's your interest rate?" is a loaded question.

Most consumers who ask that within the first 2 minutes of a conversation with loan officer are setting themselves up to be taken advantage of.

The interest rate on your mortgage does not indicate whether you "got a good deal" or not.

If the loan officer or bank you are working with does not give you multiple options and explain each one- then you should find someone who will.

When you are "rate shopping" you must compare locked loan estimates AND all other costs involved.

These costs must include all closing costs and fees (loan origination, processing, underwriting, discount points, etc... Also, watch out for low-ball tax and insurance estimates!)

The most important part of home financing is working with someone you trust.

In general, buying down an interest rate in 2024 is probably not a smart play. (*Unless it's a temporary buy-down from seller concessions.)

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Does that make sense? I am trying to help people understand so they have a better home-buying experience- AND get a "better" deal.

First time home buyers, let’s do this!

First-time buyers were responsible for 29% of sales in December; Individual investors purchased 16% of homes; All-cash sales accounted for 29% of transactions; Distressed sales represented 2% of sales; Properties typically remained on the market for 29 days.

Friendly advice for anyone who wants to buy a home. (Whether it's your first or fifth.)

These simple but powerful principles make sure your focus is in the right place.

ps. Could I add anything else?

Most people don't understand this and I totally understand why.

We all heard the news: "The Fed Expects 3 rate cuts in 2024."

These "rate cuts" refer to the Federal Funds rate.

This is simply the interest rate that commercial banks use when they borrow and lend their extra reserves to one another overnight.

The good news is, this action will help inflation- causing mortgage interest rates to go down.

So, if you are home shopping now, be mindful of this because lower interest rates will drive home prices up and create more competition among buyers.

p.s. Remember all the people talking about a housing bubble? 🤔

🌈 PSA: Waiting until interest rates drop to buy a house is not the play.

Cheaper money = More expensive housing.

As interest rates begin to lower, purchase applications begin to rise.

In the spring, there will be balloons and open houses, huge lines for showings, and lots of offers.

*Also, you get better deals in the "off-season" because nobody wants to move when kids are in school- or its freezing outside. 🌬

Don't let the fear of a huge down payment hold you back from owning your own home. We're confident that we can help you get a mortgage with just 3% down. Take the first step towards your dream home and contact us today!

Higher credit scores lead to lower home loan interest rates. DM for details.

Did you know you can get an initial loan approval for the house of your dreams in as little as 15 minutes? It's one of the many advantages you'll discover if you work with an independent mortgage broker. Give us a call today and learn more about a cheaper, faster and easier loan process.

Did you know that a local independent mortgage broker can close a home 2-3 times faster than their retail competitor? It's just one of the many reasons to work with someone who puts your priorities first. Give us a call and let's get started.

“Bloodys with Home Buying Buddies”
This is a free event going down this Saturday. Come enjoy the Bloody Mary bar, bagels and great company. My friend and I are going to be chatting about the home buying process and answering questions about real estate. Bring some friends and roommates!

Bloodys with Home Buying Buddies Come learn about the home buying process while enjoying our delicious bloody mary bar.

Ready to take the next step and start shopping for a home? Make sure by getting pre-approved! Call today to learn how much home you can afford.

3 simple questions you should ask yourself before you are buying a home.

Here is some advice for anyone planning on buying a home. These 3 tips enabled me to become a home owner for the first time. I hope they are helpful!

A year ago today, mortgage interest rates were around 3%. Everyone was house shopping as if it were Black Friday- there were videos of open houses with lines around the block of people who were willing to pay way too much for a home that didn’t even check all their boxes. There was barely any inventory and it felt like most purchases came from iBuyers paying cash to scoop up anything that was available. A statement to summarize the sentiment of my average pre-approved client would be “I’m over it.”
Let’s fast forward to now. Interest rates have more than doubled, and although home prices have cooled off- I see many buyers still hoping to “time the market” or wait until rates drop. In theory, I understand the logic behind that- but if that’s what everyone’s thinking, the competition will return, and the market will shift back to favor the seller. Not to mention that once rates drop, sellers will be more inclined to sell/move, because they can get a good rate when they make a new purchase.
I do believe rates will drop significantly in the next year or 2. Right now the smart play is to get the house you want; leverage buying power and get some seller concessions! My last purchase closing the seller paid for about 95% of the client’s closing costs! Use the seller concessions to either permanently or temporarily buy down the rate. When everyone else is overbidding when rates drop, the educated consumers will be refinancing on the house they bought now.
There are so many great ways to use seller concessions. Take advantage while the opportunity is there!

Truth ⬆️ Always remember- a high interest rate will still build you equity because you are also paying principal. With rent, you’re just paying your landlord’s mortgage.

The VA loan is the best loan program available. I’m happy to help those who served our country. 🇺🇸 🏡

We have access to new loan limits NOW.

We now have early access to next year's conforming loan limits. This can be huge for buyers that were in borderline jumbo territory.

patrickjoshea.com

If your house isn't selling, most people think a price reduction is the answer. While that's not a bad idea, see how in this case a seller buy down goes a lot further and costs the seller less. On top of that, the buyer saves thousands.

2/1 Buy down vs Price Reduction As the market is trending to put a little more control into the hands of the buyers, we are seeing some price reductions. But is that the most effective use...

DAMN, this is absolutely horrible. This industry (and humanity in general) needs to be better. I hope this article brings attention to the issue and we can do away with blatant and often ignored racism that still lingers in so many aspects of our world.

Black Couple Files Lawsuit Over Low Home Appraisal Surging Nearly $300,000 After Trying ‘Whitewashing Experiment’ John Hopkins University professor Nathan Connolly and his wife Dr. Shani Mott filed a housing discrimination complaint against loanDepot and 20/20 Valuations.

Looking to expand your real estate portfolio? This is a DSCR (debt service coverage ratio) loan that allows you to use the market rent of the property to qualify, rather than your current income. Reach out for more info and to explore all the possibilities for real estate investment.

Invest in yourself and your future by going from a renter to a homeowner! Do you want to pay your own mortgage, or your landlord's? Start building equity now!

Is our country on the verge of a recession?
Inflation is happening right before our eyes. It doesn't just make the cost of goods go up, but it erodes the buying power of fixed investments like mortgage bonds. These bonds have been purchased by investors in that past, and promise a rate of return that is no longer as strong because the dollar is not as valuable as it was before. That's why, for the most part, interest rates have shot up almost 2 points since January.
If we do face a recession, and interest rates continue to increase, there is still a positive aspect to it all- the housing market is STRONG. Just last year alone, home prices rose 18% in the CoreLogic Home Price Index, the largest annual gain recorded in its 45-year history.
Also, just take a look at the chart below. Historically, the housing market remains strong through a recession. Would you rather wait to buy?

Although this chart stops at Jan 2021, it can still put things in perspective. Interest rates have been bouncing all over the place. Safe to say we are in the "5% range" now. Since the beginning of this year, we have gone up around 2 percentage points. HUGE jump in such a short time frame. BUT, zoom out, look at the big picture.
This is just a simple reminder.

Inflation is real- the housing market, home appreciation, interest rates going bananas… the fed has now changed the 4 basic food groups- bread, cheese, strawberries, and grapes. Get balanced in this March madness.

https://patrickjoshea.com/.

Imagine that, humans are valuable.

Human Lenders Are More Valuable Than Ever The Mortgage Bankers Association (MBA) estimates that lenders helped home buyers with $1.6 trillion of loans in 2021.