Category Archives: Mortgage Blog

A GIFT to Homebuyers! Guild’s Payment Advantage program lowers the buyer’s rate by 1% for their first year on us!

Posted on by
Reply

Payment Advantage is a Conventional loan for homebuyers wanting to save on their payments now as rates continue to rise. For eligible homebuyers, Payment Advantage will lower your payment for the first year by paying 1% of your interest rate for year one of your mortgage.
 
BONUS – Loans locked on or before 3.31.2023 can be paired with Guild’s Payment Protection Program to be able to refinance once rates drop in the future with no lender fees.

The emotional security of owning your own home immense! With home values coming down, and sellers more apt to provide incentives, now you can add peace of mind with Guild’s new programs. Let’s Talk! Text, call, or email me for more details @ 916-257-1470 @ dtharp@guildmortgage.net

Download Flyer Here!

The above information is for educational purposes only. All information, loan programs, and interest rates are subject to change without notice. All loans are subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions.

*For Payment Protection Programs full terms and conditions, visit www.guildmortgage.com/homebuyer-protection

NEW!!! Help your Sellers sell their home FASTER by locking in the rate for your potential buyer.

Posted on by
Reply

Rates are rising—let’s get your listing sold now! Our LockNow and Sell program takes the uncertainty out of homebuying.

Guild Mortgage’s LockNow and Sell program guarantees the interest rate for your listing even if rates continue to rise.

By the seller locking in a rate,* buyers can feel sure about their purchase—there’s no need to wait for rates to drop as their rate will not increase at the time of purchase. And if rates go down, the homebuyer can utilize a float-down option.
 
Here are the details:

check iconSecure today’s rate on your seller’s property for 60 days*
check iconConventional, FHA, VA, or USDA financing is available, so the homebuyer can choose the financing that’s right for them**
check iconThe seller must commit to providing a 2% seller incentive to buydown the homebuyer’s interest rate

*$1,500 non-refundable upfront lock-in fee applies to secure the interest rate for the future of the homebuyer for 60 days. **Additional loan level price adjustments may apply based on credit score, occupancy, loan term, loan-to-value, or guideline requirements. A seller incentive of 2% of the final sales price is required to pay for the buydown costs or closing costs, whichever the homebuyer selects. For use by Real Estate Professionals only. Not intended for public use or distribution.

You get exclusive access to this program now. Text, call, or email me for more details @ 916-257-1470 @ dtharp@guildmortgage.net

LockNow and Sell Faster
Sell your listing FASTER and stand out from the crowd by offering a locked rate with your listing!
Download Flyer Here!

The above information is for educational purposes only. All information, loan programs, and interest rates are subject to change without notice. All loans are subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions. Consult the LockNow and Sell Program Guidelines for eligibility information and LockNow and Sell Agreement for full program terms. Subject to change without notice. A seller incentive of 2% of the final sales price is required to pay for the buydown costs or closing costs, whichever the homebuyer selects. For J.D. Power 2021 award information, visit jdpower.com/awards.

With Inflation Rising, Is This The Right Time To Buy a Home?

Posted on by
Reply

Inflation has been the word du jour of late, and we all feel it. My ah-ha moment was when I filled up my tank a few weeks ago at my favorite gas station, and gas was $6 a gallon! We are not alone in this pain, as folks are feeling this worldwide. According to an energy data tracking company, gas prices in the U.S. ranked 70th among the 170 counties tracked. For our friends in Germany, gas is pushing $9, while in Hong Kong, it’s over $11!

Having been a mortgage professional in Sacramento for two decades, I get asked a lot, “Is this the right time to buy?” and second most popular question, “What’s your rate?”. These are excellent questions, as I, too, seem to always focus on the financial benefits of homeownership. Thankfully, my new homebuyers remind me daily that owning a home is not a purely financial investment but a life-changing event. It provides stability for your family in a neighborhood you love and creates lasting memories as you turn that house into your home.

I am strongly inclined that you are reading this blog because you have been considering buying a new home. And I suspect the current economy might be putting a damper on those dreams. Are you basing this mood on emotion and fear? Have you considered the actual benefits of owning your piece of the pie? With home prices way up and inflation increasing the cost of life’s basic expenses, is now the right time to dive into your first mortgage? And if you wait, could you be priced out of the market altogether? You might not be entirely surprised by my answer. If you are ready for a long-term commitment and can comfortably afford the monthly mortgage payment and ongoing homeownership costs, then YES, YES, YES. It may be your perfect time to buy.

Let me hit you with some financial data regarding inflation and buying versus renting. According to a Stanford University study (January 2020), residential real estate has historically been an “investment safe-haven” during inflationary periods. In addition, during another moment of surging inflation (the 1970s), home prices rose relative to the size of the economy. Great news for homeowners since it meant their home’s increasing value helped offset rising costs elsewhere.

For my renters who have been stalking the market but are now not sure they want to buy, I always ask, “Is your rent going down?” According to CNN Business, rents in Sacramento jumped 19.5% from 2020 to 2021. For those wanting to make the leap to owning a home, “rising rents will remain a motivating factor even as for-sale home prices and mortgage rates continue to climb,” said Danielle Hale, Realtor.com’s chief economist. 

With home prices seeing such a jump over the previous few years, I have to drive the point with my new buyers that few of us are lucky enough to find our dream home the first time. So, think about compromising to find that sweet, happy medium instead of trying to get everything you want. The power of homeownership starts with your first purchase, and buyers have to start somewhere so they can eventually get to where they want to go. So, reach out to your favorite realtor to find that balance between home size, neighborhood, price, and all the bells and whistles.

Is Buying a Home a Hedge Against Inflation?

Homeownership, for many, is the ultimate American dream. Of course, people may not want to own a home for many reasons, but there’s no denying that being a homeowner can hugely impact your net worth. According to a CNBC.com article (Sept 2020), in 2019, homeowners in the U.S. had a median net worth of $255,000, while renters had a net worth of just $6,300. Let that soak in for a minute. 

However, don’t think this answers all your financial needs. Buying a home is a big deal and not something to take lightly. Take your time to review the financials with your realtor, your mortgage person, and possibly a financial planner. Owning a home is a big responsibility to pay for and maintain. If you don’t feel you can stay rooted in that home for at least a few years, then renting might be the best route. 

The above information is for educational purposes only. All data, loan programs, and interest rates are subject to change without notice. All loans are subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for complete eligibility requirements on tax deduction.

NEW! Anyone need an ALL CASH OFFER program?

Posted on by
1

I am excited to announce that Guild is releasing an all cash program to help our buyers win the deal.

This program allows my credit-approved borrowers to submit an all-cash offer, using proof of funds from Guild, to enter into contract with no financing or appraisal contingencies. Yes, you heard this right. If Guild Mortgage cannot close the buyer’s loan in time to meet the contract requirements, they will guarantee to pay cash for the home and then close the buyer’s loan. AND we can also couple this with our fantastic Lock and Shop program. So lock your rate today, find your dream home, offer in cash, and we finalize the loan.

This is a game changer for us, and you get exclusive access to this program now because I am on the pilot program. Text or call me for more details (916-257-1470 dtharp@guildmortgage.net)

Download Flyer Here!

The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction. For Lock and Shop full terms and conditions, visit www.guildmortgage.com/cap-hbe-terms. Consult the CashPass Program Guidelines for eligibility information and CashPass Program Agreement for full program terms. Subject to change without notice. A non-refundable participation fee, along with a minimum 2% earnest money deposit is required for participation in this program. Other costs may apply.

What You Should Know About Down Payment Gifts

Posted on by
Reply

With an extreme lack of inventory facing so many of my buyers right now, they need all the help they can get. The biggest obstacle for many is the lack of money for a down payment. Thankfully, one solution is to get some help in the form of a gift from a family member, close friend, or a charitable organization. 

As a mortgage professional, I have become very familiar with the IRS code on this topic because there is so much confusion regarding the tax implications of giving a cash gift to help a loved one buy a home. Before I delve deeper into this, a disclosure: I am not a licensed tax preparer and don’t ever want to be one – I have mad respect for tax professionals. This article is not to advise specific tax guidelines but instead give some useful, general information to help lead you in the right direction. Please seek a tax professional for more detail.

The 2021 annual gift exclusion will not change from its current $15,000 that you can give to as many individuals – your kids, grandkids, their spouses – as you’d like, without gift tax consequences. The person receiving the money does not have to report it to the IRS or pay gift or income tax on its value. However, if you give the gift and it’s more than $15,000 per individual, you will want to pay close attention to the following. 

Here is the good news for most of us. Unless you are gifting more than $11.7 million, you will pay no taxes on that gift. Yes, you heard me right. I am talking millions here – Thanks to the lifetime gift tax exemption, you can give away $11.7 million tax-free throughout your entire life and not pay one penny on gift taxes. Of course, this could change as new tax policies get enacted, so be sure to always check with Uncle Sam or your tax professional before writing that check.

When my clients learn about this little nugget, they realize worrying about gifting more than the yearly allotment of $15,000 is a moot point. Most will not pay any taxes on the gift as most of us cannot fathom having $11.7 million to give our loved ones when we pass. According to the Joint Committee on Taxation (2015), only 2 out of 1000 people who die – owe any estate tax. So gift away, my friends! Show your loved ones how much you care now that you have this critical information in your pocket!