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Our Blog

Welcome to our blog! We're big on mortgage education and showing how awesome it is to live in and around Franklin, TN. We hope you learn something great about our home town of Franklin or mortgages in general. If you have any questions on anything you read, please don't hesitate to reach out and ask!

Relocating Tips & Tricks

March 7, 2023 by alex@patriotmortgagegroup.com

Relocating to a new state can be exciting and overwhelming, especially when you’re trying to buy a home at the same time. With proper planning and preparation, the process can be smooth and (mostly) stress-free! Here is a guide with tips and tricks on how to relocate and buy a home in a different state.

If you’re not familiar with what areas to look at, contact a mortgage broker ahead of time. Typically, you would think you want to reach out to a realtor, but mortgage brokers work with several realtors on a day to day basis and can connect you with the right one based on the area you’re looking in and who you might fit best with based on personalities. We can also recommend agents who are experienced at working with out-of-state buyers to help you navigate the unique challenges of buying a home in a new state.

Always be sure to get pre-approved for a mortgage before reaching out to a realtor and starting the house hunting process. This will ensure you are able to afford what you’re looking for and help determine the right areas for your budget. It will also help show you are a serious buyer for your realtor.

We always recommend you visit the new state and explore different neighborhoods before with your realtor if you can. This will give you a better understanding of the area and it’s immediate surroundings. If it’s not possible to visit in person, the realtor you select is even more crucial to ensure they know what you’re looking for and the area meets your standards. One thing you can do is use Google Maps and drive the streets on google to get a feel as well.

Make sure you select a good moving company. This is one reason it’s imperative to have a good realtor that’s experienced in out of state moves because they work more closely than mortgage brokers with identifying the right movers. If you are moving yourself and live in a place with a lot of people leaving, like California for example, you might want to consider looking at moving trucks in neighboring states if it’s convenient. For instance, if you live on the CA and AZ border, you might be able to pick up a moving truck from Phoenix cheaper than in CA if it’s convenient to pick one up from there.

Relocating and buying a home in a different state at the same time is a lot to handle at once. We’ve done it ourselves so we understand. However, with proper planning, guidance, and preparation it can be a surprisingly smooth transition. If you have any questions or want to get connected with the right realtor, let us know – we’re here to help!

FHA Loan Basics

March 3, 2023 by alex@patriotmortgagegroup.com

FHA loans are government-backed mortgages that offer a variety of benefits to homebuyers, particularly those who may not have the best credit score or a large down payment. In this article, we will discuss the advantages of using an FHA loan, the considerations you need to make when buying a condo with an FHA loan, and situations where FHA is not the best option.

Benefits of FHA Loans:

Lower Down Payment: One of the biggest advantages of FHA loans is that they allow homebuyers to put down a lower down payment, as low as 3.5%, making it easier for homebuyers to get into the housing market. Conventional loans will require at least 5% down, unless you are a first time homebuyer.

Easier Qualification: FHA loans have more lenient credit score requirements, which makes it easier for people with lower credit scores to qualify for a mortgage. It also is a much friendlier program with regard to pricing for lower credit scores compared to Conventional loans.

Lower Interest Rates: FHA loans typically have lower interest rates than Conventional loans, which can save you a good amount of money over the life of the loan. Of course, every situation is different but as a rule FHA loans are almost always worth evaluating.

More Flexible Requirements: FHA loans have more flexible requirements when it comes to debt-to-income ratios, which can make it easier for homebuyers to qualify for a mortgage.

Considerations when buying a condo with an FHA Loan:

If you’re considering buying a condo with an FHA loan, there are a few things you need to keep in mind. First, the condo project needs to have FHA approval. This means that the condo project has been reviewed and approved by the FHA, and meets certain requirements, such as having adequate insurance coverage, sufficient reserves, and no more than 50% of the units being rented out. You can check the status of a condo project by visiting the FHA’s website.

Another consideration is the condo association’s fees and rules. Make sure you understand the monthly fees, as well as any rules or restrictions on renting out the unit or making modifications. Additionally, you should be aware of any pending or current litigation involving the condo project.

FHA does allow single-unit approvals if the condo project is not currently approved by FHA, but those are approved on a case-by-case basis. We can help you determine if the condo you’re looking at might fit an FHA loan or not.

When is FHA not the best option?

While FHA loans are great loans, there are situations where they may not be the best option. For example, if you have a high credit score and a sizable down payment, you may be able to get better terms and lower fees on a Conventional loan. This is especially the case if you are putting down 20% because Conventional loans will not have monthly mortgage insurance when putting 20% or more down, like an FHA loan would. FHA loans require monthly mortgage insurance premiums no matter the size of your down payment.

FHA loans can be a great option for homebuyers who may not have the best credit score or a large down payment. They offer lower down payments, easier qualification, lower interest rates, and more flexible requirements. However, when buying a condo with an FHA loan, it’s important to make sure the project has FHA approval and to understand the condo association’s fees and rules. Additionally, if you have a high credit score and down payment, you may want to explore other loan options. When working with us, we always evaluate every program you qualify for to ensure you’re getting the best financial fit for you and your family.

Living in Franklin, TN

March 2, 2023 by alex@patriotmortgagegroup.com

Thinking about moving to Franklin, TN? Here’s a little bit about the place we call home! Franklin, TN is a charming, historic, and vibrant city located just 21 miles south of Nashville. It’s close enough to be outside Nashville but still drive to for a game, concert, or if you just want to hit Broadway. Franklin is known for its rich history, beautiful architecture, and thriving arts and culture scene. Franklin is a great place to live or visit.

One of the things that makes Franklin unique is its plethora of local events. From live music performances to outdoor festivals, there’s always something going on in Franklin. One of the most popular events is the Main Street Festival, which takes place each April. This festival features over 200 artisans, food vendors, and performers, and draws in thousands of visitors each year to our little downtown. Other popular events include the Pumpkinfest in October and the Dickens of a Christmas celebration in December.

If you’re looking for fresh, locally sourced produce and handmade goods, Franklin’s farmers’ markets are not to be missed. The Franklin Farmers Market takes place every Saturday from May to October and features a wide range of vendors offering everything from fruits and vegetables to homemade jams and baked goods. The market is also a great place to grab lunch, with food trucks and other vendors offering delicious eats.

Another highlight of living in Franklin is the revitalization of the Factory at Franklin. Originally built in 1929 as the headquarters of the Dortch Stove Works, the Factory has been transformed into a mixed-use facility featuring shops, restaurants, event spaces, and more. Today, the Factory is home to over 70 businesses, including a brewery, a chocolatier, and a fitness studio.

If you’re a business owner, you’ll also be happy to hear that Franklin is part of the Williamson County Chamber of Commerce. It’s an extremely active and supportive chamber that goes out of its way to help small business and large businesses build connections and prosper. This is a very business friendly area.

If you’re in the area or just looking to move in the future, be sure to come check out our the Main Street Festival in April for another year of live music, food, and shopping. In June, the Franklin Rodeo will take place, with bull riding, barrel racing, and other rodeo fun. And in July, the Franklin Jazz Festival will showcase some of the best jazz musicians in the region.

Franklin, TN is a great place to live and raise a family. There’s always something to see and do.

2023 VA Funding Fee Changes: What You Need to Know

February 28, 2023 by alex@patriotmortgagegroup.com

If you are a veteran or active-duty military member looking to buy a home in Tennessee using a VA loan, you should be aware of some upcoming changes to the VA Funding Fee. Starting for VA loans closing in April 2023, the VA funding fee will decrease for veterans. In this article, we will explain what the VA funding fee is, how the changes will affect VA loans in Tennessee, and what you can do to prepare.

What is the VA Funding Fee?

The VA funding fee is a one-time fee that is paid by veterans who use a VA loan whenever they purchase or refinance a home. The fee is used to help offset the cost of the VA loan program, which is designed to provide home financing options to veterans and active-duty military members.

The VA funding fee is a percentage of the loan amount and can be paid upfront at closing or rolled into the loan amount. The significant majority of the time, the VA funding fee is automatically rolled into the loan amount and not paid out of pocket. The amount of the fee varies based on factors such as the veteran’s down payment amount, the type of loan, and whether the veteran has used a VA loan before.

2023 VA Funding Fee Changes in TN

For VA loans closing April 7, 2023 and on, the VA funding fee will be reducing. The fee will decrease for almost all uses of the VA loan by .15%. In some cases, where the VA funding fee is at its highest, you will see a .3% reduction in the funding fee. The VA funding fee is the highest if you are doing a VA cash out loan OR if you are buying a home, putting less than 5% down, and it is not your first time using the VA loan. Typically in those situations the VA funding fee would have been 3.6%, but will now be 3.3%.

For example, a first-time homebuyer in Tennessee who uses a VA loan to buy a home with no down payment will see their funding fee decrease from 2.3% to 2.15% of the loan amount. A borrower who has used the VA loan before and buys a new home with no down payment will see their funding fee decrease from 3.6% to 3.3%.

It’s important to note that if you have a 10% or greater service connected disability then you will be exempt from the VA funding fee entirely.

What You Can Do to Prepare

Since this is a positive change, there’s really nothing you need to do ahead of time to prepare for this. The biggest worry is if you are currently in process with a VA loan and have not closed yet. If you fall in this category and your loan is set to close prior to these changes taking effect, it may be worth while seeing if you would be able to extend your closing to benefit from the lower funding fee.

Conclusion

The changes to the VA funding fee that will take effect April 2023 will have a positive impact on most veteran borrowers in Tennessee who use VA loans to purchase or refinance a home. Below is a full chart of the new VA funding fee in all scenarios.

If you are a veteran yourself reading this, thank you for raising your hand to enlist and for the sacrifices you’ve made for our country. We’ll forever be grateful and hope that we can give back to you when you buy a home or refinance.

Discount Points in Mortgages: How They Work and What You Get

February 24, 2023 by alex@patriotmortgagegroup.com

Discount points are one of the most commonly used tools in mortgage financing. They allow you to lower your interest rate, which can save you thousands of dollars over the life of your loan. In this article, we will explore what discount points are, how they work, and what you get by paying them.

What are Discount Points?

Discount points, also known as mortgage points are an upfront fee paid to the lender at closing in exchange for a lower interest rate on the mortgage loan – the cost “discounts” the interest rate. One discount point is 1% of the loan amount and can typically reduce the interest rate by around 0.375%. However, depending on the market sometimes one discount point can reduce the interest rate by more than .375% or less. We can help you weigh the overall interest rate savings vs cost in your exact situation.

How Do Discount Points Work?

Discount points work by lowering the interest rate on your mortgage loan. When you pay discount points, you are essentially prepaying a portion of the interest that would be due over the life of the loan. This reduces the lender’s risk and allows them to offer you a lower interest rate.

For example, let’s say you are taking out a $300,000 mortgage with an interest rate of 4.5%. If you pay one discount point, or $3,000, the interest rate may be reduced to 4.125% or 4.25%. This can save you a lot of money over the life of the loan, as you will be paying less interest over the term. However, if you are planning on refinancing or selling in the near future – it’s important to discuss that with us so we can make sure you will benefit from that up front cost.

What You Get by Paying Discount Points

By paying discount points, you can get a lower interest rate on your mortgage loan, which saves you a lot of money over the life of the loan. This can be especially beneficial if you plan to stay in your home for a long time, as the savings really add up over the years.

Paying discount points can also help you qualify for a larger loan amount, as it reduces your monthly mortgage payment. This can be particularly helpful if you are on a tight budget, or weren’t able to use some of your income in the qualification process for one reason or another.

Conclusion

In summary, discount points can be a very useful tool in mortgage financing. They allow you to lower your interest rate and save money over the life of your loan. By paying discount points, you can also qualify for a larger loan amount and reduce your monthly mortgage payment. If you are considering paying discount points, it’s important to weigh the cost and your long term plans with the home against the potential savings to determine if it’s the right option for you. As always, if you have questions we can help guide you through this evaluation and make recommendations.

Debunking the Myth: Mortgage Companies Do Not Sell Your Information

February 23, 2023 by alex@patriotmortgagegroup.com

One of the biggest misconceptions about the mortgage industry is that mortgage companies sell their customers’ personal information. However, this couldn’t be further from the truth for 99% of them. In reality, it is the credit bureaus – Experian, Equifax, and TransUnion – that sell customer information to third-party companies for mere pennies, leading to the bombardment of phone calls and mailings from other companies. In this article, we will explain how this process works and how customers can opt out of pre-screen offers.

Mortgage Companies and Customer Information

Mortgage companies take customer privacy very seriously and are legally bound to protect their customers’ personal information. They do not sell customer information to third-party companies or share it without their customers’ explicit consent. In fact, mortgage companies are subject to strict regulations under federal and state law, which require them to protect customer information. If there is any sharing of information whatsoever with any affiliated companies they are legally required to disclose that to you in writing.

Credit Bureaus and Customer Information

On the other hand, credit bureaus such as Experian, Equifax, and TransUnion are not bound by the same privacy regulations as mortgage companies. They collect and compile customer information, including credit history, address, phone number, email, employment information, etc and sell it to third-party companies for marketing and pre-screening purposes. This is how some mortgage lenders obtain customer information and reach out unsolicited to potential borrowers with offers via phone, mail or email.

Opting Out of Pre-Screen Offers

If you are tired of receiving pre-screened offers for mortgage loans and other financial products, you can opt out of these offers by going to www.optoutprescreen.com. You can also opt out by contacting the credit bureaus directly online or by phone. The process is simple and free but www.optoutprescreen.com is the most efficient way to opt out. Once you opt out, the credit bureaus will stop selling your information for pre-screening purposes, and you will no longer receive these offers.

It is important to note though, if you opt out online then the opt out is only good for 5 years. If you choose to, when you visit www.optoutprescreen.com you can fill out the mail in form and be permanently opted out.

Conclusion

In conclusion, mortgage companies do not sell their customers’ personal information, and the phone calls and mailings that consumers receive are a result of credit bureaus selling customer information to third-party companies. By opting out of pre-screen offers, you can reduce the number of unsolicited calls and mailings you receive when you apply for a mortgage.

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