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Matt Gouge

Loan Officer |NMLS 1088993

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As your trusted UMortgage Loan Originator, my goal is to simplify the mortgage process to make your home loan experience easy to navigate! Please reach out so I can help start your home financing journey.

Serving Homebuyers In:

  • California
  • Florida

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Your Mortgage Questions, Answered!

Understanding the Basics of Buyer Agency Agreements

As you're gearing up to embark on your homebuying journey, you'll probably want an experienced real estate professional to guide you through some of the intricacies and nuances that come with the process. When you find a trustworthy real estate agent to work with, they might ask you to sign a buyer agency agreement. This agreement outlines the terms of your collaboration as you navigate the ins and outs of securing a mortgage for your dream home. What is a Buyer Agency Agreement? Simply put, a buyer agency agreement is a contract between you and the real estate agent or agency that you choose to work with during your homebuying journey. It will outline the terms, conditions, and expectations a buyer can expect from their real estate agent. As a result of the recent NAR settlement, buyer agency agreements are required to be signed by buyers and real estate agents before the pair begin working together on the purchase of a home. These agreements aren't anything new, and they simply exist as a means to set clear expectations for both the agent and the buyer before the process beings. What are the Usual Terms of a Buyer Agency Agreement? These buyer agency agreements can vary based on the agent you choose to work with. Before signing this contract, it's important to understand exactly what's expected to ensure that you're getting exactly what you expect throughout the buying process. Below are the most common terms included: Agent's Responsibilities: The most common and often most important terms you'll find in your buyer agency agreement are the agent's responsibilities. Simply put, these responsibilities are the tasks you can expect your agent to perform for you until you close on your home. It can include scouting potential listings and open houses, writing and sending your offer letter, and completing your closing paperwork. Term Length: The homebuying process is complicated, and, because of a multitude of factors, can be drawn out for as long as a year. Your buyer agency agreement will typically outline the duration of time that you can expect to work with your agent. The term length is negotiable, so if you have a clear idea about your homebuying time frame, be upfront with your agent so it's agreed upon in the contract. Commission: Real estate agents earn their living on a commission when they close a deal. Most commonly, the buyer's and seller's agents receive a commission that ranges between 4-6% of the property's sale price. If the buyer's and seller's agents are the two brokers of this transaction, they will typically split the commission. Most commonly, agents receive this compensation through seller concessions or closing costs, but it's important to understand exactly how your agent expects to be compensated before you get started to avoid any unexpected costs. Exclusivity: As we mentioned above, your agent receives their compensation at the end of the deal. Because of this, it's often in their best interests to ensure that you will commit to working exclusively with that agent to protect themselves in the long run. There are buyer agency agreements that include non-exclusivity and exclusivity, so make sure to scan your agreement for these terms to avoid breaking the terms of your contract. Termination: It's not ideal, but if you or your agent partner are either unsatisfied with the partnership or you face an unexpected roadblock in your homebuying journey, there will typically be a termination contingency baked into the contract. Why Should You Care About Your Buyer Agency Agreement? Buying a home is one of the biggest commitments you can make. It's crucial to work with experienced real estate and mortgage professionals who can guide you through the process and look out for your best interests. Having set agreements in place and a thorough understanding of every party's expectations is the first step towards a smooth and stress-free homebuying experience. When you begin working with an agent, it's important to be straightforward and upfront with your desires, expectations, and timeline for your homebuying journey. While putting pen to paper can feel like a big moment, a buyer agency agreement is a commonplace contract that protects both you and your agent and lays the foundation for a successful homebuying experience. By formalizing your relationship with a mortgage professional, you gain reassurance knowing you have someone in your corner who's advocating for your best interests. If you're searching for a trustworthy and experienced real estate agent to help you achieve your dreams of homeownership, feel free to reach out! I have plenty of experienced partners who possess the necessary market knowledge, neighborhood savvy, and value to help you find a house that feels like home sweet home.

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Understanding the Basics of Mortgage Rate Buydowns

Plenty of homeowners find themselves waiting for mortgage rates to drop before hitting the housing market. While there’s much more that goes into homeownership preparedness than a low mortgage rate, there are multiple ways to lower your rate without having to rely on market movements. Between temporary and permanent rate buydowns, you can lower your monthly mortgage payment by lowering your interest rate either temporarily or permanently. Although they sound similar, there are plenty of differences between the two types of rate buydowns and several factors that might make one better for specific homebuyers than another. Below, we’ll outline the benefits and major differences between rate buydowns to help you understand what might be best for your unique circumstances. Permanent Rate Buydowns Permanent rate buydowns are a strategy where homebuyers pay additional upfront fees (commonly referred to as points) to their lender in exchange for a reduced interest rate over the entire term of the loan. Unlike temporary rate buydowns, which only offer reduced rates for a set period, typically at the beginning of the loan, permanent buydowns provide lasting savings by prepaying a portion of the interest upfront. This investment offers stability and predictability, as borrowers can budget for lower monthly payments over the entire loan term, particularly advantageous in a rising interest rate environment. Determining whether a permanent mortgage rate buydown is right for you depends on various factors including your financial situation, short and long-term future plans, and market conditions. Homebuyers prioritizing long-term savings and stability, especially if they plan to stay in their home for an extended period, may find permanent buydowns appealing. However, it's essential to weigh the upfront cost against potential long-term savings. Temporary Rate Buydowns Temporary rate buydowns allow homebuyers to secure a reduced interest rate for a specified period at the beginning of the loan term. Unlike permanent rate buydowns, temporary buydowns provide short-term relief by lowering initial monthly payments. While temporary rate buydowns provide immediate relief with reduced initial payments, they return to the original rate after the specified period. Because of this, the interest rate reduction can be particularly beneficial for borrowers with budget constraints, those expecting their income to increase in the future, or those who plan to refinance after a short period. Temporary rate buydowns can be paid by buyers, but there are certain situations where homebuyers can use seller concessions or specific offers from builders to earn reduced mortgage payments for the first year or first couple years of their loan. Rate buydowns are a great option for homebuyers looking to reduce their monthly mortgage payment for either a temporary or permanent period. While the two sound similar, they have different costs associated and aren’t always the best option for every buyer. If you have any questions about what kind of rate buydown might be right for you, feel free to reach out for a free consultation!

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Housing Market Update | Week of April 29

Last week’s inflation data came in a little hotter than expected and, combined with slowed GDP growth and low jobless claims, mortgage rates rose slightly last week. With inflation moving in the wrong direction the last three months, there will be a much bigger emphasis on the job market breaking for the Fed to cut rates this year. We have three big pieces of employment data coming this week as well as the Federal Reserve’s 2-day May meeting ending on Wednesday, so expect some movements this week. Next week, May 6th at 11:30am, we are recapping the Federal Reserve meeting during a special edition of our Monday Market Update. Our resident market experts will recap the meeting and review what was said by Fed Chairman, Jerome Powell, to provide a look ahead at what we can expect with the summer housing market. This event will be free to stream live on YouTube, follow this link and subscribe for a notification when we go live! Last Week's Rate Recap - Rates Rose Slightly The Federal Reserve has been trying to slow the rate of inflation since 2022, but last week’s PCE data showed that we are continuing to trend away from their target of 2.7%. Although the PCE report came in as expected, it still sent stocks and mortgage bonds higher and put increased pressure on labor data to get our desired rate cuts this year. This Week's Rate Forecast - Rates Could Be Volatile This week we have two main areas of focus for the housing market and mortgage rates. Tomorrow and Wednesday, the Federal Reserve will hold its May Fed Meeting. Although a rate cut is unfortunately all but off the table, Jerome Powell’s press conference will give us insight into their path forward. We also have multiple labor reports, and, as we mentioned earlier, an increase in unemployment will be key for any future rate cuts. We’ll have the ADP employment report on Wednesday, initial jobless claims on Thursday, and the BLS jobs report on Friday, so expect some volatility in the second half of the week. Once again, our market experts will be offering a full breakdown of the Fed Meeting and how the decisions made and rhetoric released will impact the housing market next Monday at 11:30am ET on YouTube live. This presentation is free to stream and will offer loads of educational insight that will help empower you this purchase season. You can watch this and all our weekly Market Update streams right here on the UMortgage YouTube channel!

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