How Piggyback Loans Work

By: Ralph DiBugnara on August 21, 2025 By Erik Martin Published on July 28, 2025 https://www.bankrate.com/real-estate/escrow-process/ Understanding Escrow in Homebuying: A Beginner’s Guide If you’re in the process of buying a home — or even just thinking about it — you’re likely being introduced to a flood of unfamiliar terminology. One of the most important concepts to wrap your head around early on is escrow. It's not just another real estate buzzword; escrow is a critical part of nearly every home purchase, and it protects both buyers and sellers during what’s often the largest financial transaction of their lives. So what exactly is escrow, and why does it matter so much? Whether you're a first-time buyer or just a little rusty on the process, this guide will walk you through what escrow is, how it works at each stage of the homebuying journey, and how it continues to impact your finances even after you move in. What Is Escrow, and Why Do We Use It? At its core, escrow is a legal arrangement in which a neutral third party temporarily holds money or property until a particular condition has been met. In real estate, this is typically an escrow account where funds — usually from the buyer — are kept safe while all the terms of the home sale are completed. Think of it as a way to make sure that no money changes hands prematurely. The seller knows you’re serious because you’ve placed money into escrow, and you as the buyer are protected because the seller doesn’t receive those funds unless all contract terms are satisfied. How Escrow Works During a Home Purchase The escrow process begins as soon as your offer is accepted and the purchase contract is signed. This kicks off a series of steps where funds are held in trust and multiple conditions must be met — including inspections, appraisals, and legal paperwork — before money is released and ownership is transferred. Let’s break down the phases of escrow in a typical real estate transaction: Step 1: Opening the Escrow Account Once the purchase contract is signed, it’s time to deposit your earnest money into an escrow account. This is a good-faith deposit, typically 1% to 2% of the home’s purchase price. “Once an offer is made and accepted, the contract will stipulate when the escrow deposit is due,” says Ralph DiBugnara, president of Home Qualified. “In most cases, the deposit is split into two parts — first an initial, good-faith deposit followed by the remainder of the deposit.” This initial deposit is typically due within 7 to 10 days of signing. It's not an extra fee — it will later be applied toward your down payment or closing costs if the deal goes through. The escrow account itself is usually held by a title company, real estate attorney, or escrow agent — depending on local laws and customs. Their job is to stay neutral and ensure that all money and documents are handled correctly. Step 2: Appraisal and Inspection Once your offer is in escrow, your lender will require a home appraisal to confirm that the property's value matches the agreed purchase price. If the appraisal comes in low, you may need to renegotiate the price or cover the difference out of pocket. At the same time, you’ll have the opportunity to inspect the home. This is your chance to uncover hidden issues with the plumbing, roof, electrical systems, or structural integrity. If significant problems are discovered, you can either request repairs, negotiate a credit, or — in some cases — walk away from the deal (usually without losing your earnest money, as long as it's within your contractual rights). Step 3: Title Search and Insurance Your escrow officer will also coordinate a title search to ensure that the property is legally owned by the seller and free of claims or liens. As a buyer, you’ll be required to purchase lender’s title insurance — and optionally, owner’s title insurance — to protect against future legal issues. At this stage, your lender will also require you to secure homeowners insurance, which protects the property (and their investment) in the event of fire, theft, or other damage. Step 4: Final Walkthrough A day or two before closing, you’ll conduct a final walkthrough of the home to ensure it’s in the agreed-upon condition. This is not a second inspection, but a chance to verify that any negotiated repairs have been completed and nothing has changed since your last visit. If the seller agreed to leave appliances or fix something, now’s your chance to confirm it was done. Step 5: Closing the Deal About three business days before closing, your lender will provide a Closing Disclosure, outlining all final costs including escrow amounts, taxes, fees, and loan terms. Review it carefully to ensure everything matches what you expected. On closing day, you’ll sign your documents, provide your remaining down payment and closing costs (typically via cashier’s check or wire transfer), and the escrow agent will file the title with the county and release funds to the seller. Congratulations — you’re now a homeowner! But Wait — Escrow Doesn’t End There Even after the deal is done, escrow continues to play a role in your financial life — just in a different form. Now that you own the home, your lender or loan servicer will typically set up an escrow account to manage future payments for: Property taxes Homeowners insurance Mortgage insurance (if required) Instead of paying these large bills separately a few times per year, they’re divided into monthly amounts and included in your mortgage payment. Your lender collects these funds and pays the bills on your behalf when due. This setup can be incredibly convenient, helping you avoid late payments and budget more effectively throughout the year. Do I Have to Use an Escrow Account? Whether escrow is optional or required depends on several factors: If you’re using a government-backed loan (like FHA or USDA), escrow is typically mandatory. If you’re putting down less than 20% on a conventional loan, your lender will likely require an escrow account. If you’re putting down 20% or more, you may have the option to waive escrow — but not all lenders allow it. Even if it’s not required, many buyers choose to keep an escrow account for the ease of budgeting and peace of mind. Can I Cancel My Escrow Account Later? In some cases, yes. If you’ve built enough equity or meet specific conditions set by your lender, you might be able to close your escrow account. But there may be fees or restrictions, and not all lenders allow it. Always check with your lender directly before making any decisions. Final Thoughts: Why Escrow Matters Escrow isn’t just a technicality — it’s a safeguard that ensures fairness, security, and smoothness in your homebuying process. From protecting your deposit to managing future expenses, escrow plays a behind-the-scenes role that makes the complex process of buying (and owning) a home much more manageable. As Ralph DiBugnara explains, “The initial deposit is typically due within seven to 10 days of signing the contract. This earnest money will eventually be applied to your overall down payment on the home.” Knowing how and why that money is handled through escrow helps you stay in control of your purchase. So next time you hear someone mention “escrow,” you can smile confidently — because now, you get it. Key Takeaways Escrow protects both buyer and seller during a home sale by safely holding funds until conditions are met. Your earnest money deposit is a critical part of the escrow process and shows you're serious about the purchase. After buying, escrow helps you budget by including taxes and insurance in your monthly mortgage payments. While escrow accounts are sometimes required, they can also be a helpful tool even when optional. Looking for more homebuying tips? Let me know if you'd like a guide on inspections, appraisals, or mortgage pre-approval next!

By: Ralph DiBugnara on August 12, 2025 By Erik Martin Published on July 22, 2025 https://www.bankrate.com/mortgages/joint-mortgage/ Considering a Joint Mortgage? Here’s What You Need to Know Buying a home is a big step—and for many, joining forces with a trusted partner, friend, or family member can make it much more achievable. That’s where joint mortgages come into play. Whether you're looking to increase your purchasing power or simply want to share financial responsibility, a joint mortgage might be the right move. But it also comes with unique considerations you’ll want to understand before signing on the dotted line. Let’s break down the basics. What Is a Joint Mortgage? A joint mortgage is when two or more people apply for a mortgage together, combining their incomes and assets to strengthen their application. This is most common among spouses, partners, friends, or family members. “It commonly involves two people — usually spouses, joint partners, friends or family members — who pool their income and assets together to buy a home,” says Ralph DiBugnara, President of Home Qualified. It’s important to note: a joint mortgage doesn’t automatically mean joint ownership of the home. Only the names listed on the property title determine who legally owns the home. How It Works In a joint mortgage, all borrowers are equally responsible for repaying the loan. That means if one person misses a payment, the lender will expect the other borrower(s) to cover it. Credit scores for all applicants are reviewed, and while some lenders may emphasize the highest score, others could raise interest rates if one score is significantly lower. Requirements for a Joint Mortgage Each lender has its own criteria, but generally, all applicants must: Be at least 18 years old Meet debt-to-income (DTI) and loan-to-value (LTV) ratio requirements Provide steady proof of income and employment Meet minimum credit score thresholds Pros & Cons of Joint Mortgages ✅ Pros: More Buying Power: “The main benefit is the ability to purchase more of a home than you would be able to buy on your own,” says DiBugnara. “More income and/or assets equals the ability to borrow more money.” Shared Costs: Joint mortgages allow you to split monthly payments, making it easier to manage your budget and save for future goals. 🚫 Cons: Shared Risk: If one party can’t pay, the others are still liable. Credit Impact: Your borrowing ability for future loans could be affected. Complex Exit Strategies: If one person wants out, refinancing or selling may be necessary. When Joint Mortgages Make Sense A joint mortgage could be a good fit if: You’re married or in a long-term, financially committed relationship You’re buying with someone you trust completely You’re cohabitating and sharing responsibility for property upkeep Avoid joint mortgages with people you barely know or don’t fully trust financially—this is a long-term legal commitment. What Happens If… One co-borrower wants out? They’ll need permission from the others to sell their share or force a sale through legal means. A co-borrower passes away? Remaining borrowers still owe the full mortgage. The home may go through probate if ownership isn’t clearly outlined. Someone stops paying? Everyone’s credit could suffer, and the home could go into foreclosure if payments lapse. Ready to Apply? Applying for a joint mortgage requires: Filling out an application for each borrower Submitting documentation (income, debt, employment history, etc.) Signing loan paperwork at closing—all parties must be present Heads-up: joint mortgage processing can take longer than individual loans, so patience is key. Final Thought If you're confident in your financial partnership and want to boost your homebuying power, a joint mortgage can be a smart move. “With more income and assets combined, you’re in a stronger position to qualify for a mortgage and afford the kind of home you really want,” says DiBugnara. Still unsure? Let’s talk through your options together. Whether you’re planning to buy solo or with someone else, we’re here to guide you every step of the way.

By: Ralph DiBugnara on August 8, 2025 By Michael Letendre Published: July 14, 2025 https://www.newhomesource.com/learn/how-to-choose-a-home-builder/ Choosing a home builder isn’t just about selecting a company to construct your house—it’s about hiring a trusted partner to guide you through one of the most important financial and emotional journeys of your life. From construction quality to communication styles, the builder you choose will shape everything from your budget to your stress level. Here are eight essential questions every buyer should ask before signing on the dotted line. 1. What’s Their Track Record and Experience? Not all builders are created equal. A builder’s history with similar projects can be a strong predictor of how yours will go. You want to see more than a flashy website or a pretty brochure—you need proof of performance. Ask about completed projects that match your home’s size, style, or level of customization. A well-established builder should have a portfolio of comparable work and be comfortable providing references. 2. Can You Tour an Active Job Site? Model homes are great—but they’re also staged to perfection. The real insight comes from seeing how a builder manages an actual construction site. Is it clean? Are materials protected? Is work being done efficiently? How a builder runs a job site can tell you a lot about their priorities, especially when it comes to quality control and organization. Don’t settle for a showroom when you can observe the real process in action. 3. How Is the Payment Schedule Structured? Not all builders follow the same payment timelines. Some request significant upfront deposits; others tie payments to specific construction milestones. Ask for a detailed schedule that outlines when each payment is due and what it corresponds to. A milestone-based payment plan ensures that your money is going toward actual progress—not just promises. 4. What Are the Full Financial Terms? The list price on a new home doesn’t always reflect the full cost of ownership. Financing offers, interest rate buydowns, closing cost assistance, and even inflated rates disguised by "discounted" pricing can all impact your bottom line. Don’t just focus on the price tag—dig into what you'll actually pay each month and over time. 5. How Much Customization Is Possible? Some builders stick to rigid packages. Others allow for nearly full customization. Knowing how flexible your builder is upfront can save you time, money, and disappointment. Before committing, ask what options you’ll have when it comes to layout, finishes, and upgrades. Can you move a wall? Add a window? Change the flooring? Small changes can have a big impact on your satisfaction. 6. What Do Past Clients and Local Agents Say? Online reviews can be helpful, but they rarely give you the full story. Instead, talk to people who work with builders regularly—especially local real estate agents. "Public reviews and buyer agent feedback are some of the most valuable tools for evaluating a builder," said Ralph DiBugnara, President of Home Qualified. Agents often have inside knowledge of how a builder handles problems and whether they deliver consistent quality. If several agents say the same thing—good or bad—pay attention. 7. How Do They Compare to Other Builders? No single builder is perfect for everyone. Take the time to shop around. Ask the same questions to multiple builders and compare their answers, pricing, flexibility, and included features. One builder might offer more long-term value—like pre-plumbing a basement for future expansion—while another might have a smoother process or better warranty terms. 8. What’s in the Contract? Don’t wait until closing day to review the fine print. Request a sample contract early in the process and go through it line by line. Look for clarity on change orders, warranties, timeline expectations, and penalties for delays. Contracts that are vague or overly one-sided are red flags. Final Takeaway Buying a new home is more than picking out floor plans and finishes. It’s a long-term relationship with a builder who will either make the experience smooth—or stressful. Do your due diligence. Ask hard questions. And don’t rush into anything without a full understanding of what’s ahead. As Ralph DiBugnara put it best: “Public reviews and buyer agent feedback are some of the most valuable tools for evaluating a builder.” Take your time, ask the right questions, and invest in the builder that’s right for you. The peace of mind is worth it.

By: Ralph DiBugnara on August 8, 2025 By Michael Letendre Published: July 14, 2025 https://www.newhomesource.com/learn/how-to-choose-a-home-builder/ Choosing a home builder isn’t just about selecting a company to construct your house—it’s about hiring a trusted partner to guide you through one of the most important financial and emotional journeys of your life. From construction quality to communication styles, the builder you choose will shape everything from your budget to your stress level. Here are eight essential questions every buyer should ask before signing on the dotted line. 1. What’s Their Track Record and Experience? Not all builders are created equal. A builder’s history with similar projects can be a strong predictor of how yours will go. You want to see more than a flashy website or a pretty brochure—you need proof of performance. Ask about completed projects that match your home’s size, style, or level of customization. A well-established builder should have a portfolio of comparable work and be comfortable providing references. 2. Can You Tour an Active Job Site? Model homes are great—but they’re also staged to perfection. The real insight comes from seeing how a builder manages an actual construction site. Is it clean? Are materials protected? Is work being done efficiently? How a builder runs a job site can tell you a lot about their priorities, especially when it comes to quality control and organization. Don’t settle for a showroom when you can observe the real process in action. 3. How Is the Payment Schedule Structured? Not all builders follow the same payment timelines. Some request significant upfront deposits; others tie payments to specific construction milestones. Ask for a detailed schedule that outlines when each payment is due and what it corresponds to. A milestone-based payment plan ensures that your money is going toward actual progress—not just promises. 4. What Are the Full Financial Terms? The list price on a new home doesn’t always reflect the full cost of ownership. Financing offers, interest rate buydowns, closing cost assistance, and even inflated rates disguised by "discounted" pricing can all impact your bottom line. Don’t just focus on the price tag—dig into what you'll actually pay each month and over time. 5. How Much Customization Is Possible? Some builders stick to rigid packages. Others allow for nearly full customization. Knowing how flexible your builder is upfront can save you time, money, and disappointment. Before committing, ask what options you’ll have when it comes to layout, finishes, and upgrades. Can you move a wall? Add a window? Change the flooring? Small changes can have a big impact on your satisfaction. 6. What Do Past Clients and Local Agents Say? Online reviews can be helpful, but they rarely give you the full story. Instead, talk to people who work with builders regularly—especially local real estate agents. "Public reviews and buyer agent feedback are some of the most valuable tools for evaluating a builder," said Ralph DiBugnara, President of Home Qualified. Agents often have inside knowledge of how a builder handles problems and whether they deliver consistent quality. If several agents say the same thing—good or bad—pay attention. 7. How Do They Compare to Other Builders? No single builder is perfect for everyone. Take the time to shop around. Ask the same questions to multiple builders and compare their answers, pricing, flexibility, and included features. One builder might offer more long-term value—like pre-plumbing a basement for future expansion—while another might have a smoother process or better warranty terms. 8. What’s in the Contract? Don’t wait until closing day to review the fine print. Request a sample contract early in the process and go through it line by line. Look for clarity on change orders, warranties, timeline expectations, and penalties for delays. Contracts that are vague or overly one-sided are red flags. Final Takeaway Buying a new home is more than picking out floor plans and finishes. It’s a long-term relationship with a builder who will either make the experience smooth—or stressful. Do your due diligence. Ask hard questions. And don’t rush into anything without a full understanding of what’s ahead. As Ralph DiBugnara put it best: “Public reviews and buyer agent feedback are some of the most valuable tools for evaluating a builder.” Take your time, ask the right questions, and invest in the builder that’s right for you. The peace of mind is worth it.

By: Ralph DiBugnara on August 1, 2025 By: Paul Centopani July 31, 202 https://themortgagereports.com/32667/mortgage-rates-forecast-fha-va-usda-conventional Mortgage shoppers may have something to smile about heading into August. The average 30-year fixed mortgage rate dropped slightly to 6.72% at the end of July, marking the second straight week of declines and continuing a 28-week streak of staying below 7%. While that’s a promising sign, most housing experts aren’t predicting a dramatic drop anytime soon. Instead, the outlook for August suggests rates will hold steady or inch downward as inflation data and economic indicators continue to evolve. Mortgage Rate Recap - Where We Stand According to Freddie Mac: 30-Year Fixed Rate (July 31): 6.72% (down from 6.74% the week prior) 15-Year Fixed Rate: 5.85% (down from 5.87%) This modest decline comes despite a 3.8% drop in mortgage applications, signaling continued uncertainty and caution from prospective homebuyers. Will Rates Fall in August? Most industry experts agree: rates will likely remain stable or trend slightly lower this month. The market is waiting on several critical factors, including: Inflation data from July (to be released mid-August) Labor market trends and wage growth Federal Reserve sentiment about rate cuts Tariff developments and global supply chain risks Though some experts are optimistic, most believe any downward movement in rates will be gradual, not dramatic. Ralph DiBugnara, President, Home Qualified Prediction: Rates will moderate "July’s Fed meeting will most likely show us more of the same strategy we have seen this year—which is hold interest rates and no raise or cut. The Fed Chairman seems to want to see a significant drop in inflation before he agrees to cut. But there is a chance he can reverse course slowly to a cutting strategy because of the immense amount of pressure he is receiving. Not only is the President calling for a cut but the world economy has seen multiple countries cut rates over 2025." "If he does cut, I do not think it will be fast and probably will bleed over into 2026." Summary of Other Expert Outlooks Danielle Hale (Realtor.com) believes a cooling inflation print in August could help bring rates closer to 6.4% by year-end. Selma Hepp (Cotality) expects the Fed to stay on hold this month, citing mixed employment signals and weak homebuyer demand. Sam Williamson (First American) points to tariff-related price pressures and a cautious Fed stance, predicting rates will hover in the upper 6% range. Tony Julianelle (Atlas Real Estate) expects rates to stay “range-bound,” with no sharp moves unless inflation or employment data surprises the market. Marc Halpern (Foundation Mortgage) notes sluggish consumer confidence and low home sales are limiting rate movement for now. Kelly Zitlow (Cornerstone Capital Bank) points out that the Fed remains cautious, and geopolitical and trade risks continue to cloud the outlook. Mortgage Rate Trends: Where We're Headed in 2025 Although rates are higher than they were during the pandemic years, they remain below historic averages—and may trend slightly lower in the coming months. Month Avg 30-Year Rate July 2024 - 6.85% August 2024 - 6.50% September 2024 - 6.18% October 2024 - 6.43% November 2024 - 6.81% December 2024 - 6.72% January 2025 - 6.96% February 2025 - 6.84% March 2025 - 6.65% April 2025 - 6.73% May 2025 - 6.82% June 2025 - 6.82% July 2025 - 6.72% The National Association of Realtors predicts the third-quarter average could settle around 6.4%, while the Mortgage Bankers Association forecasts 6.8%. Either way, rates appear to be trending slightly lower heading into the fall. Though higher than the ultra-low rates of 2020 and 2021, today’s rates remain well below the 50-year historical average of 7.8%. That means buyers with good credit can still secure a competitive rate by historical standards. Strategies for Mortgage Shoppers in August 1. Get Pre-Approved, Not Just Pre-Qualified This helps you move faster when making an offer and shows sellers you’re a serious buyer. 2. Have Your Financial Documents Ready With rates still fluctuating, speed is critical. Being prepared can help you lock in a favorable rate when opportunity strikes. 3. Shop Around for Lenders Rates can vary significantly between lenders, especially during uncertain periods. Getting 3–5 quotes can save you thousands. 4. Choose the Right Loan for Your Situation VA Loans: Ideal for eligible veterans and service members. No PMI, competitive rates. FHA Loans: Great for lower credit scores or minimal down payments. Conforming Loans: Flexible with just 3% down and good credit. USDA Loans: For rural buyers with low to moderate income. Jumbo Loans: Best for high-priced homes exceeding conforming loan limits. 5. Monitor Inflation and Economic Data The mortgage market is data-driven. If inflation readings and job numbers come in cooler than expected, you may see rates ease. But a surprise spike could cause an upward reversal. Final Thoughts: Be Prepared, Not Reactive While August may not bring a major drop in rates, the signs are pointing toward eventual relief later this year. The Fed continues to monitor inflation and economic signals, and although immediate cuts aren’t likely, a downward bias is building into fall. If you're planning to buy or refinance, staying informed, getting pre-approved, and actively comparing lenders will put you in the best position—no matter which way rates move in the short term. Looking to lock in the best rate today? Start comparing lender offers to find the most competitive deal for your situation.

By: Ralph DiBugnara on July 17, 2025 By Paul Centopani Reviewed By Aleksandra Kadzielawski July 11, 2025 https://themortgagereports.com/121026/first-time-home-buyer-advice-q3-2025 Mortgage shoppers may have something to smile about heading into August. The average 30-year fixed mortgage rate dropped slightly to 6.72% at the end of July, marking the second straight week of declines and continuing a 28-week streak of staying below 7%. While that’s a promising sign, most housing experts aren’t predicting a dramatic drop anytime soon. Instead, the outlook for August suggests rates will hold steady or inch downward as inflation data and economic indicators continue to evolve. Mortgage Rate Recap - Where We Stand According to Freddie Mac: 30-Year Fixed Rate (July 31): 6.72% (down from 6.74% the week prior) 15-Year Fixed Rate: 5.85% (down from 5.87%) This modest decline comes despite a 3.8% drop in mortgage applications, signaling continued uncertainty and caution from prospective homebuyers. Will Rates Fall in August? The expert consensus leans toward stability, with some potential for gradual downward movement depending on inflation reports, labor market trends, and the Fed’s next moves. Ralph DiBugnara, President, Home Qualified Prediction: Rates will moderate "July’s Fed meeting will most likely show us more of the same strategy we have seen this year—which is hold interest rates and no raise or cut. The Fed Chairman seems to want to see a significant drop in inflation before he agrees to cut. But there is a chance he can reverse course slowly to a cutting strategy because of the immense amount of pressure he is receiving. Not only is the President calling for a cut but the world economy has seen multiple countries cut rates over 2025." "If he does cut, I do not think it will be fast and probably will bleed over into 2026." Other Expert Predictions Danielle Hale (Realtor.com): Expects mortgage rates to gradually fall as inflation data improves, possibly reaching the 6.4% range by year-end. Selma Hepp (Cotality): Anticipates no Fed rate cut in August but sees growing pressure for action in September due to mixed employment and housing data. Tony Julianelle (Atlas Real Estate): Believes rates will stay in a tight range unless there's a significant shift in inflation or labor figures. Sam Williamson (First American): Projects mortgage rates to remain in the upper 6% range until a clearer disinflation trend emerges. Kelly Zitlow (Cornerstone Capital Bank): Cites Fed caution and global instability as key reasons for continued rate moderation. Matt Pettit (Mountain West Financial): Notes that while optimism remains for future rate cuts, the timeline appears delayed. Mortgage Rate Trends: Where We're Headed in 2025 Although rates are higher than they were during the pandemic years, they remain below historic averages—and may trend slightly lower in the coming months. Month Avg 30-Year Rate July 2024 - 6.85% August 2024 - 6.50% September 2024 - 6.18% October 2024 - 6.43% November 2024 - 6.81% December 2024 - 6.72% January 2025 - 6.96% February 2025 - 6.84% March 2025 - 6.65% April 2025 - 6.73% May 2025 - 6.82% June 2025 - 6.82% July 2025 - 6.72% The National Association of Realtors predicts the third-quarter average could settle around 6.4%, while the Mortgage Bankers Association forecasts 6.8%. Either way, rates appear to be trending slightly lower heading into the fall. Strategies for Mortgage Shoppers in August 1. Get Pre-Approved, Not Just Pre-Qualified This helps you move faster when making an offer and shows sellers you’re a serious buyer. 2. Have Your Financial Documents Ready With rates still fluctuating, speed is critical. Being prepared can help you lock in a favorable rate when opportunity strikes. 3. Shop Around for Lenders Rates can vary significantly between lenders, especially during uncertain periods. Getting 3–5 quotes can save you thousands. 4. Choose the Right Loan for Your Situation 5. Monitor Inflation and Economic Data The mortgage market is data-driven. If inflation readings and job numbers come in cooler than expected, you may see rates ease. But a surprise spike could cause an upward reversal. VA Loans: Ideal for eligible veterans and service members. No PMI, competitive rates. FHA Loans: Great for lower credit scores or minimal down payments. Conforming Loans: Flexible with just 3% down and good credit. USDA Loans: For rural buyers with low to moderate income. Jumbo Loans: Best for high-priced homes exceeding conforming loan limits. Final Thoughts: Be Prepared, Not Reactive While August may not bring a major drop in rates, the signs are pointing toward eventual relief later this year. The Fed continues to monitor inflation and economic signals, and although immediate cuts aren’t likely, a downward bias is building into fall. If you're planning to buy or refinance, staying informed, getting pre-approved, and actively comparing lenders will put you in the best position—no matter which way rates move in the short term. Looking to lock in the best rate today? Start comparing lender offers to find the most competitive deal for your situation.

By: Ralph Dibugnara July 29, 2025 n this power-packed episode of the Real Estate Talk Podcast, hosts Rob Kyleman and Joshua Britt sit down with Ralph DiBugnara—president of HomeQualified and VP at New American Funding. With over $40 billion in closed loans and decades of real estate and mortgage experience, Ralph dives deep into the evolving housing market, the future of credit scoring, rising costs, Airbnb oversaturation, crypto’s role in real estate, and the generational shifts reshaping buyer behavior. Whether you’re a first-time homebuyer, agent, or investor, this episode is a masterclass in surviving—and thriving—in today’s unpredictable market. Key Takeaways: 1. The Market Is Local—Really Local “It’s almost like dealing with different countries. ”Ralph emphasizes that the housing market is no longer just cyclical—it’s fragmented. With wildly different inventory, pricing, and demand across states, agents and buyers must now adopt hyper-local strategies. 2. Rising Costs Are the Real Barrier “Interest rates are high, taxes are high, insurance is high, cost of goods is high. "Affordability in 2025 is being attacked from all angles. Between a 6-million-unit housing deficit, multiple-offer bidding wars, and inflation across the board, Ralph stresses that buyers need patience—and strategy—to win. 3. Value Lies in the Fixer-Upper “You either have to buy something older and do the work, or find something that needs to be reconstructed and do the work. "With turnkey homes out of reach for many, Ralph advocates for long-term investment in value-add properties. While rehab costs are also rising, the opportunity lies in sweat equity. 4. Time Is the Great Equalizer in Real Estate “If you can hold on for five years, you can outrun a bad investment. "Ralph shares a personal story of a condo he held through the 2008 crash and sold 20 years later for a profit—highlighting real estate’s resilience versus volatile investments like stocks or crypto. 5. Social Media Is a Tool—If You Stay Real “I’m not trying to be a market predictor. I just show what I’m actually going through. "For agents or investors looking to build a brand in 2025, Ralph suggests using platforms like Instagram and YouTube to share real, unfiltered experiences—not just glossy wins. 6. The New Investor Trap: Chasing Shiny Objects “Social media can speed up a process that shouldn’t be sped up. "The Growth Trap,” as Ralph calls it in his book, describes when people stall without realizing it. In real estate, that often comes from trying to skip steps. His advice? Partner with experienced investors and learn from their pain. 7. Vantage 4.0: A Double-Edged Sword? “The credit score model may look better for younger generations—but banks will still adjust their risk standards. "Vantage 4.0 may give credit for non-traditional habits like Afterpay or rent payments, but Ralph warns it won’t replace due diligence or underwriting fundamentals. 8. Airbnb: Not What It Used to Be “The market got flooded, regulations tightened, and now you’re competing with corporations. "Ralph notes that while Airbnb was once a goldmine, it’s become saturated, over-regulated, and competitive—especially in non-tourist towns. Viable short-term rental markets remain, but they’re rare and hyper-regulated. 9. Crypto Is Coming… But Not How You Think “Most lenders see it like stocks—real, but you’ll need to liquidate it to use it.”While crypto is gaining acceptance, it won’t fully enter mainstream mortgage underwriting until privatization of Fannie/Freddie or non-QM lenders step in. 10. 2025 Forecast: No Major Rate Drops Yet “We might see a symbolic cut, but it won’t move the needle much.”With global pressure mounting and recession shadows growing, Ralph predicts minor rate cuts in the near term but warns that substantial relief likely won’t come until Jerome Powell exits the Fed in 2026. Standout Quotes from Ralph DiBugnara :“Real estate, long-term, will outrun all the bad investments you make in it.”“Every loss I take in this business, I treat as an expensive education. ”The only way I see value in buying real estate right now is buying older or distressed and doing the work.”“Social media is reality TV—just show your actual reality and you’ll connect. ”Crypto is a real asset now—but you’ll still need to liquidate to use it in most lending situations.” Final Thoughts: Ralph’s blend of street-smart experience and big-picture insight makes this episode a must-watch for anyone navigating today’s housing market. His honesty, resilience, and forward-thinking approach remind us: the rules of the game may change, but fundamentals—patience, knowledge, and community—never go out of style. Watch the full episode: Disruptors Network YouTube Channel Get Ralph’s book: The Growth Trap – Available on Amazon Explore Ralph’s platform: HomeQualified.com. For a visual overview and additional insights, you can watch the full video here: https://www.youtube.com/watch?v=tkc2Hvmh6F4

By: Ralph DiBugnara on July 17, 2025 By Paul Centopani Reviewed By Aleksandra Kadzielawski July 11, 2025 https://themortgagereports.com/121026/first-time-home-buyer-advice-q3-2025 Thinking About Buying a Home? Read This First. Navigating the housing market can feel overwhelming—especially if you’re buying for the first time. With fluctuating rates, changing inventory levels, and mixed signals in the economy, it’s no surprise that many would-be buyers are unsure whether to jump in or wait it out. But here’s the good news: Quarter 3 of 2025 is shaping up to be surprisingly favorable for first-time buyers—if you know how to move smart. ________________________________________ What Makes Q3 2025 Different? Across the country, inventory is increasing, concessions are becoming more common, and prices in overheated markets are starting to cool. Some areas, like parts of Florida and Texas, are seeing oversupply, while others remain highly competitive. That’s why understanding your local market is key. According to housing expert Ralph DiBugnara, president of Home Qualified, the real advantage for first-time buyers this quarter lies in access to support. “What new home buyers are getting the benefit of is much more down payment assistance and grant programs than have been available over the last 15 years,” Ralph says. “This has been a major positive in helping new buyers.” ________________________________________ How to Navigate the Chaos Even with uncertainty around the economy and government policy, Ralph emphasizes the importance of staying grounded and disciplined. “The best thing a new home buyer can do in today’s market is create a personal budget and stick to it,” he advises. “High rates, high insurance costs, and possible bidding wars can always make it seem like spending more is necessary. I believe having a budget that includes what housing payment is affordable can keep buyers out of making a bad investment.” In other words, you don’t need to chase perfection—you need to pursue what’s right for you. ________________________________________ Opportunity + Strategy = Advantage If you’re a first-time buyer in Q3 2025, you’re in a unique position: • There are more homes on the market than we’ve seen in years. • Sellers are offering rate buydowns, concessions, and flexibility. • You may now qualify for programs that can significantly reduce upfront costs. It’s a window that rewards preparation and patience. And the buyers who win are the ones who know their numbers, understand their needs, and act when the right opportunity appears. ________________________________________ The Bottom Line It’s not about waiting for the market to be perfect—it’s about being ready when it’s good enough for your goals. Q3 2025 might just be that moment. If you’re serious about buying your first home, now’s the time to align your finances, lean on trusted professionals, and make your move with confidence. Need help understanding your options? Let’s talk down payment programs, current rates, and how to get pre-approved. Shoot me a message, and let’s get you one step closer to the keys

By Ralph Dibugnara March 13, 2025 March 8, 2025 By Martin Dasko According to a recent Realtor.com report, the median asking rent price for the 50 largest metropolitan areas was down 0.2% annually in January, making the cost of living that bit easier to afford. The research found that even though the median rent increased from $1,695 in December to $1,703 in January, it was the 18th consecutive month where rents fell on an annual basis. The positive for renters is that there are numerous major metro areas where the rent is more affordable now. These are the top metros where rent is more affordable than last year. The list is organized by percentage price drop year over year. The rent prices are for any unit, from a studio to a two-bedroom condo. Denver-Aurora-Centennial, Colorado Year-over-year rental price change: -5.6% Median monthly rent: $1,796 Income spent on rent: 20.2% Income spent on buying: 33.4% Austin-Round Rock-San Marcos, Texas Year-over-year rental price change: -4.8% Median monthly rent: $1,467 Income spent on rent: 17.2% Income spent on buying: 30.3% San Diego-Chula Vista-Carlsbad, California Year-over-year rental price change: -4.8% Median monthly rent: $2,695 Income spent on rent: 31.4% Income spent on buying: 57.7% Memphis, Tennessee-Mississippi-Arkansas Year-over-year rental price change: -4.3% Median monthly rent: $1,177 Income spent on rent: 21.1% Income spent on buying: 30.8% Riverside-San Bernardino-Ontario, California Year-over-year rental price change: -4.1% Median monthly rent: $2,065 Income spent on rent: 28.8% Income spent on buying: 43.6% Chicago-Naperville-Elgin, Illinois-Indiana Year-over-year rental price change: -3.6% Median monthly rent: $1,776 Income spent on rent: 24.6% Income spent on buying: 24.8% Dallas-Fort Worth-Arlington, Texas Year-over-year rental price change: -3.5% Median monthly rent: $1,445 Income spent on rent: 19.5% Income spent on buying: 29.3% Phoenix-Mesa-Chandler, Arizona Year-over-year rental price change: -3.5% Median monthly rent: $1,488 Income spent on rent: 20.4% Income spent on buying: 36.6% San Francisco-Oakland-Fremont, California Year-over-year rental price change: -3.3% Median monthly rent: $2,708 Income spent on rent: 24.3% Income spent on buying: 41.4% Atlanta-Sandy Springs-Roswell, Georgia Year-over-year rental price change: -2.9% Median monthly rent: $1,565 Income spent on rent: 21.4% Income spent on buying: 28.4% Does Buying in These Areas Still Make Financial Sense? With rental prices dropping, it’s worth exploring if it still makes sense to purchase a home in one of these areas. Here are a few key points to consider before making a decision. Low Rents Could Be an Opportunity To Enter the Real Estate Market Lindsey Harn, a real estate agent at Christie’s International Real Estate, said she’s a big believer in buying when the right opportunity comes along. She added, “If rents are lower, landlords may finally be ready to sell their properties, which means you have more inventory and more options to consider when buying.” If you’re looking for a place to live, this may be an excellent opportunity to get your foot in the door without competing with as many cash investors. Low rental rates could indicate that the local landlords aren’t making as much in profit and may be looking to liquidate their assets. This could be an ideal time to browse through listings to see if you could purchase a home for a lower listing price. Buying May Help Stabilize Your Monthly Payments Ralph DiBugnara, a real estate expert and president of Home Qualified, pointed out that renting has been cheaper than owning in major cities for longer than anyone expected. He explained, “Even though this has been great news for renters, long-term rental will continue to rise, and the only way to fix your housing payment is to have financing or own real estate.” DiBugnara believes your mortgage payment will be lower than rent payments in five years, which would help stabilize your monthly housing expenses. He also mentioned that renters will struggle to lower costs without downsizing their space, while homeowners could refinance at a lower rate in the future to bring down how much they’re spending. DiBugnara said, “I believe owning will always be more advantageous than renting for long-term financial health.” Consider Your Personal Situation Even though rent prices are slowly decreasing in many major metros across the country, this doesn’t necessarily reflect your financial situation. As always, you should take into account your own personal situation before deciding on a significant investment like a home. You’ll want to think about some of these factors before deciding if it makes sense to buy or rent: Your job stability: If your job isn’t stable or if you’re concerned about potential layoffs, you don’t want to commit to homeownership, because the expenses could quickly pile up. Your savings and debt: If you have consumer debt or if your savings account isn’t where you want it to be, you’ll want to continue focusing on saving up until you’re ready to commit to homeownership. Your lifestyle: If you’re looking to start a family or just want some stability in your life, purchasing a home may make sense. It’s clear that the market is going through some changes. You want to ensure that you review all possible options with your living situation so that you make a decision that aligns with your needs and goals.