The Real Estate StarRecently posted or modified blog posts in the category - Buying a Homehttps://www.firstsourcere.com/blog/Copyright FirstSourceRE.com2023-10-12T14:19:53-07:00tag:firstsourcere.com,2012-09-20:1359The Smart Move: Buying a Home Now and Refinancing Later for Lower RatesThe Smart Move: Buying a Home Now and Refinancing Later for Lower Rates
In today's ever-changing real estate market, prospective homebuyers often find themselves facing a dilemma: Should they buy a home now, despite current interest rates, or wait for potentially lower rates in the future? While the decision may seem daunting, there's a strategy that combines the best of both worlds. In this blog post, we'll explore the benefits of buying a home now and refinancing in a few years when rates are lower, and how First Source Realty can help you make this smart move.
1. Locking in Today's Prices:
The real estate market is known for its fluctuations, and housing prices can rise significantly over time. By purchasing a home now, you secure a property at today's prices, potentially saving you money in the long run. Waiting for lower interest rates to buy may mean paying a higher price for the same property down the line.
2. Building Equity:
Every mortgage payment you make contributes to building equity in your home. By buying now, you start building equity sooner rather than waiting for lower rates and potentially missing out on years of equity growth.
3. Enjoy Homeownership Sooner:
Buying a home now allows you to enjoy the benefits of homeownership sooner rather than later. You can personalize your space, establish roots in your community, and enjoy the stability and security that come with owning your own home.
4. Refinancing for Lower Rates:
One of the most significant advantages of this strategy is the ability to refinance your mortgage when interest rates drop in the future. Refinancing allows you to take advantage of lower rates without the stress of selling your current home and buying a new one. This can lead to reduced monthly payments and substantial savings over the life of your loan.
5. Improved Financial Position:
Refinancing to lower rates can improve your overall financial situation. With lower monthly mortgage payments, you'll have more disposable income to invest, save, or use for other financial goals.
How First Source Realty Can Help:
Our experienced real estate professionals at First Source Realty understand the intricacies of the housing market and the importance of making strategic decisions. We can guide you through the process of purchasing a home that suits your needs and budget today and help you explore refinancing options when the time is right.
Conclusion:
Buying a home now and refinancing in a few years when rates are lower is a savvy financial move that allows you to enjoy the benefits of homeownership while keeping an eye on future savings. At First Source Realty, we're committed to helping you make informed decisions that align with your long-term financial goals. Contact us today to take the first step towards securing your future through smart real estate investments. Don't miss out on the opportunity to lock in today's prices while preparing for a more financially advantageous future.2023-10-13T07:30:00-07:002023-10-12T14:19:53-07:00Robin Frankstag:firstsourcere.com,2012-09-20:624The Importance to Be Pre-Approved in the Homebuying Process?Why Is It so Important to Be Pre-Approved in the Homebuying Process?
<img width="750" height="410" src="https://files.mykcm.com/2020/08/26091204/20200827-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Why Is It so Important to Be Pre-Approved in the Homebuying Process? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/08/26091204/20200827-KCM-Share.jpg 750w, https://files.mykcm.com/2020/08/26091204/20200827-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/08/26091204/20200827-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
You may have heard that pre-approval is a great first step in the homebuying process. But why is it so important? When looking for a home, the temptation to fall in love with a house that’s outside your budget is very real. So, before you start shopping around, it’s helpful to know your price range, what you’re comfortable within a monthly mortgage payment, and ultimately how much money you can borrow for your loan. Pre-approval from a lender is the only way to do this.
According to a recent survey from realtor.com, many buyers are making the mistake of skipping the pre-approval step in the homebuying process:
“Of over 2,000 active home shoppers who plan to purchase a home in the next 12 months, only 52% obtained a pre-approval letter before beginning their home search, which means nearly half of home buyers are missing this crucial piece of paperwork.”
This paperwork (the pre-approval letter) shows sellers you’re a qualified buyer, something that can really help you stand out from the crowd in the current ultra-competitive market.
How competitive is today’s market? Extremely – especially among buyers.
With limited inventory, there are many more buyers than sellers right now, and that’s fueling the competition. According to the National Association of Realtors (NAR), homes are receiving an average of 2.9 offers for sellers to negotiate, so bidding wars are heating up.
Pre-approval shows homeowners you’re a serious buyer. It helps you stand out from the crowd if you get into a multiple-offer scenario, and these days, it’s likely. When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war and land the home of your dreams.
Danielle Hale, Chief Economist for realtor.com notes:
“For ‘a buyer in a competitive market, it’s typically essential to have pre-approval done in order to submit an offer, so getting it done before you even look at homes is a smart move that will enable a buyer to move fast to put an offer in on the right home.’”
In addition, today’s housing market is also changing from moment to moment. Interest rates are low, prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals (a loan officer and a real estate agent) making sure you take the right steps along the way and can show your qualifications as a buyer at the time you find a home to purchase.
Bottom Line
In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. If you’re ready to buy this year, let’s connect before you start searching for a home.
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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2020-10-07T08:33:00-07:002020-10-07T08:35:44-07:00First Source Realtytag:firstsourcere.com,2012-09-20:623The Cost of Renting Vs. Buying a Home [INFOGRAPHIC]<img width="1046" height="1129" src="https://files.mykcm.com/2020/08/27112012/20200828-MEM-1046x1129.jpg" class="attachment-entry size-entry wp-post-image" alt="The Cost of Renting Vs. Buying a Home [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/08/27112012/20200828-MEM-1046x1129.jpg 1046w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-556x600.jpg 556w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-948x1024.jpg 948w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-768x829.jpg 768w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-1423x1536.jpg 1423w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-1897x2048.jpg 1897w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-100x108.jpg 100w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-1484x1602.jpg 1484w" sizes="(max-width: 1046px) 100vw, 1046px" style="font-size: 17px;" />
Some Highlights
The <a href="https://www.zillow.com/research/affordability/" title="percentage" target="_blank" rel="noopener noreferrer">percentage</a> of income needed to afford a median-priced home today is declining, while that for renting is on the rise.
This is making buying a home an increasingly attractive option for many people, especially with low mortgage <a href="https://www.simplifyingthemarket.com/2020/08/14/mortgage-rates-payments-by-decade-infographic/?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" title="rates" target="_blank" rel="noopener noreferrer">rates</a> driving purchasing power.
Let’s connect if you’d like expert guidance on exploring your homebuying options while affordability is high.
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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2020-10-07T08:25:00-07:002020-10-07T08:27:04-07:00Robin Frankstag:firstsourcere.com,2012-09-20:622Three Ways to Win in a Bidding War<img width="750" height="410" src="https://files.mykcm.com/2020/08/28075138/20200831-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Three Ways to Win in a Bidding War | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/08/28075138/20200831-KCM-Share.jpg 750w, https://files.mykcm.com/2020/08/28075138/20200831-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/08/28075138/20200831-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
With so few houses for sale today and low mortgage rates driving buyer activity, bidding wars are becoming more common. Multiple-offer scenarios are heating up, so it’s important to get pre-approved before you start your search. This way, you can put your best foot forward – quickly and efficiently – if you’re planning to buy a home this season.
Javier Vivas, Director of Economic Research at realtor.com, explains:
“COVID-19 has accelerated earlier trends, bringing even more buyers than the market can handle. In many markets, fierce competition, bidding wars, and multiple offer scenarios may be the common theme in the weeks to come.”
Here are three things you can do to make your offer a competitive one when you’re ready to make your move.
1. Be Ready
A recent survey shows that only 52% of active homebuyers obtained a pre-approval letter before they began their home search. That means about half of active buyers missed out on this key part of the process.
Buyers who are pre-approved are definitely a step ahead when it’s time to make an offer. Having a pre-approval letter indicating you’re a qualified buyer shows sellers you’re serious. It’s often a deciding factor that can tip the scale in your direction if there’s more than one offer on a home. It’s best to contact a mortgage professional to start your pre-approval process early, so you’re in the best position right from the start of your home search.
2. Present Your Best Offer
In a highly competitive market, it’s common for sellers to pick a date and time to review all offers on a house at one time. If this is the case, you may not have an opportunity to negotiate back and forth with the sellers. As a matter of fact, the National Association of Realtors (NAR) notes:
“Not only are properties selling quickly, but they are also getting more offers. On average, REALTORS® reported nearly three offers per sold property in July 2020.”
Make sure the offer you’re presenting is the best one the sellers receive. A real estate professional can help you make sure your offer is a fair and highly competitive one.
3. Act Fast
With existing homes going like hotcakes, there’s no time to waste in the process. NAR reports how the speed of home sales is ramping up:
“Properties typically remained on the market for 22 days in July, seasonally down from 24 days in June and from 29 days in July 2019. Sixty-eight percent of homes sold in July 2020 were on the market for less than a month.”
In addition, NAR notes:
“Total existing-home sales…jumped 24.7% from June to a seasonally adjusted annual rate of 5.86 million in July. The previous record monthly increase in sales was 20.7% in June of this year. Sales as a whole rose year-over-year, up 8.7% from a year ago (5.39 million in July 2019).”
As you can see, the market is gaining steam. For two consecutive months houses have sold very quickly. Essentially, you may not have time to sleep on it or shop around when you find a home you love. Chances are, someone else loves it too. If you take your time, it may not be available when you’re ready to commit.
Bottom Line
The housing market is very strong right now, and buyers are scooping up available homes faster than they’re coming to market. If you’re planning to purchase a home this year, let’s connect to discuss the trends in our current area, so you’re ready to compete – and win.
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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2020-10-07T08:16:00-07:002020-10-07T08:22:54-07:00First Source Realtytag:firstsourcere.com,2012-09-20:619The 2020 Homebuyer Wish List [INFOGRAPHIC]<img width="1046" height="1536" src="https://files.mykcm.com/2020/09/03121217/20200904-MEM-1046x1536.jpg" class="attachment-entry size-entry wp-post-image" alt="The 2020 Homebuyer Wish List [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/09/03121217/20200904-MEM-1046x1536.jpg 1046w, https://files.mykcm.com/2020/09/03121217/20200904-MEM-409x600.jpg 409w, https://files.mykcm.com/2020/09/03121217/20200904-MEM-697x1024.jpg 697w, https://files.mykcm.com/2020/09/03121217/20200904-MEM-768x1128.jpg 768w, https://files.mykcm.com/2020/09/03121217/20200904-MEM-100x147.jpg 100w, https://files.mykcm.com/2020/09/03121217/20200904-MEM.jpg 1080w" sizes="(max-width: 1046px) 100vw, 1046px" style="font-size: 17px;" />
Some Highlights
The word “home” is taking on a whole <a href="https://www.zillow.com/resources/new-construction/rethinking-floor-plans-for-covid/" title="new meaning" target="_blank" rel="noopener noreferrer">new meaning</a> this year, and buyers are starting to look for new features as they re-think their needs and what’s truly possible.
From more outdoor space to virtual classrooms for their children, buyers have a <a href="https://www.simplifyingthemarket.com/2020/08/24/the-top-reasons-people-are-moving-this-year/?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" title="growing list" target="_blank" rel="noopener noreferrer">growing list</a> of what they’d like to see in their homes.
Let’s connect today if your needs have changed and your wish list is expanding too.
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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.2020-10-07T07:51:00-07:002020-10-07T07:53:25-07:00First Source Realtytag:firstsourcere.com,2012-09-20:363First-Time Buyers Are Searching for Existing Homes This Year<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="First-Time Buyers Are Searching for Existing Homes This Year | MyKCM" src="https://files.mykcm.com/2020/01/24062820/20200127-KCM-Share.jpg" srcset="https://files.mykcm.com/2020/01/24062820/20200127-KCM-Share.jpg 750w, https://files.mykcm.com/2020/01/24062820/20200127-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/01/24062820/20200127-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
In the latest Housing Trends Report, the National Association of Home Builders (NAHB) measured the share of adults planning to buy a home over the next 12 months. The report indicates the percentage of all buyers that will be first-time buyers looking to purchase a home grew from 58% in Q4 2018 to 63% in Q4 2019.
The results revealed,
“Millennials are the most likely generation to be making plans to purchase a home within a year (19%), followed by Gen Z (13%) and Gen X (12%)…Prospective buyers in the youngest two generations are primarily first-time buyers: 88% of Gen Z buyers and 78% of Millennial buyers are reaching out to homeownership for the first time in their lives.”
With a high demand from first-time homebuyers and a shortage of inventory in the current market, selling your existing home this year might be your best move. Why? Because when homebuyers begin their search, they’re not all looking for new construction. Many are eager to find a little charm and character in a place to call home – possibly yours.
In fact, according to the same study, there is a significant demand for existing homes:
“In terms of the type of home these prospective home buyers are interested in, 40% are looking to buy an existing home and 19% a newly-built home. The remaining 41% would buy either a new or existing home.”
With showing activity up among buyers and more new construction coming to market, as a homeowner, you have the opportunity to sell your existing house now and move up into a new one, or downsize into a home that better fits your current and ever-changing needs.
Bottom Line
Not all buyers are looking for a newly built house. If you’re ready to take advantage of low mortgage rates and a high demand for your existing home, let’s get together to determine how we will market the charming details of your current house to potential buyers.
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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.2020-01-27T08:11:00-07:002020-01-27T08:14:19-07:00First Source Realtytag:firstsourcere.com,2012-09-20:358Make the Dream of Homeownership a Reality in 2020
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Make the Dream of Homeownership a Reality in 2020 | MyKCM" src="https://files.mykcm.com/2020/01/17114834/20200120-KCM-Share.jpg" srcset="https://files.mykcm.com/2020/01/17114834/20200120-KCM-Share.jpg 750w, https://files.mykcm.com/2020/01/17114834/20200120-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/01/17114834/20200120-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
In 1963, Martin Luther King, Jr. led and inspired a powerful movement with his famous “I Have a Dream” speech. Through his passion and determination, he sparked interest, ambition, and courage in his audience. Today, reflecting on his message encourages many of us to think about our own dreams, goals, beliefs, and aspirations. For many Americans, one of those common goals is owning a home: a piece of land, a roof over our heads, and a place where our families can grow and flourish.
If you’re dreaming of buying a home this year, the best way to start the process is to connect with a Real Estate professional to understand what goes into buying a home. Once you have that covered, then you can answer the questions below to make the best decision for you and your family.
1. How Can I Better Understand the Process, and How Much Can I Afford?
The process of buying a home is not one to enter into lightly. You need to decide on key things like how long you plan on living in an area, school districts you prefer, what kind of commute works for you, and how much you can afford to spend.
Keep in mind, before you start the process to purchase a home, you’ll also need to apply for a mortgage. Lenders will evaluate several factors connected to your financial track record, one of which is your credit history. They’ll want to see how well you’ve been able to minimize past debts, so make sure you’ve been paying your student loans, credit cards, and car loans on time. Most agents have loan officers they trust that they can refer you to.
According to ConsumerReports.org,
“Financial planners recommend limiting the amount you spend on housing to 25 percent of your monthly budget.”
2. How Much Do I Need for a Down Payment?
In addition to knowing how much you can afford on a monthly mortgage payment, understanding how much you’ll need for a down payment is another critical step. Thankfully, there are many different options and resources in the market to potentially reduce the amount you may think you need to put down up front.
If you’re concerned about saving for a down payment, start small and be consistent. A little bit each month goes a long way. Jumpstart your savings by automatically adding a portion of your monthly paycheck into a separate savings account or house fund. AmericaSaves.org says,
“Over time, these automatic deposits add up. For example, $50 a month accumulates to $600 a year and $3,000 after five years, plus interest that has compounded.”
Before you know it, you’ll have enough for a down payment if you’re disciplined and thoughtful about your process.
3. Saving Takes Time: Practice Living on a Budget
As tempting as it is to settle in each morning with a fancy cup of coffee from your favorite local shop, putting that daily spend toward your down payment will help accelerate your path to homeownership. It’s the little things that count, so start trying to live on a slightly tighter budget if you aren’t doing so already. A budget will allow you to save more for your down payment and help you pay down other debts to improve your credit score. A <a title="survey" href="https://www.bankrate.com/mortgages/millennials-homeownership-sacrifices/" target="_blank" rel="noopener noreferrer">survey</a> of Millennial spending shows,
“70 percent of would-be first-time homebuyers will cut spending on spa days, shopping and going to the movies in exchange for purchasing a home within the next year.”
While you don’t need to cut all of the fun out of your current lifestyle, making smarter choices and limiting your spending in areas where you can slim down will make a big difference.
Bottom Line
If homeownership is on your dream list this year, take a good look at what you can prioritize to help you get there. Let’s get together today to discuss the best steps you can take to start the process. Email us at info@firstsourcere.com and set up a FREE Consulation and let's get started today. You can also call us at 504-754-0059
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.The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
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2020-01-20T08:31:00-07:002020-02-02T15:02:05-07:00First Source Realtytag:firstsourcere.com,2012-09-20:333Common Homebuying Fees <img width="950" height="633" src="https://assets.site-static.com/userfiles/795/image/Buyer_Ads_/fees-when-buying-a-home.png" />
When buying a home, most people focus on how much it costs and what interest rate they can get on the loan. While understanding the lending process is very important, there are some other important costs to consider as you prep for homeownership.
There are some fees, for instance, that must be paid upfront. Other fees can be rolled into your home loan. It's important to understand the difference and know what you'll be expected to pay out of pocket when you sit down at the closing table.
This list outlines the most common fees to know about when buying a home.
Private Mortgage Insurance
You may be required to purchase private mortgage insurance if you're putting less than 20 percent down on a home. Private mortgage insurance, commonly referred to as PMI, is typically provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. There are two kinds of payments: an upfront PMI premium and a monthly PMI premium. The upfront premium can be paid at closing, or be rolled into the loan. Just remember that rolling this payment into the loan--and the monthly PMI premiums--can affect the size of your mortgage payment.
Homeowner’s Insurance
When borrowing money to purchase a home, insurance is a requirement you can't skip out on. A homeowner's insurance policy combines personal liability insurance and hazard insurance to cover a dwelling and its contents. In many cases, this means buying a policy before closing on the home. You'll have to pay the first year's premiums to your insurance company to show that you have insurance in place before you close. After that, you can escrow the annual premiums into your mortgage payment.
Title Insurance
Title insurance is designed to protect the lender in case an issue arises with the title to the home you're buying. You're usually required to buy lender's title insurance, which is rolled into your closing costs or financed into the loan. Title insurance for yourself is optional, but it's something to consider if you're worried about a title issue affecting your ability to keep the home after the fact.
Appraisal Fees
An appraisal is needed so that the current fair market value for your home can be established for tax purposes. It's a written justification of the price paid for a property, primarily based on comparable sales of homes nearby. The lender needs the appraisal to make sure the home is worth the amount you want to borrow. This is one fee you'll pay to the lender upfront before the appraisal can take place.
Escrow Fees
During the closing process, an escrow account will usually hold the money while the buyer and seller finalize the agreement. In addition, you’ll probably have a portion of your monthly mortgage payment go into escrow in order to pay for property taxes and insurance. Essentially, you prepay some of the homeowner's insurance and property tax costs for the home ahead. Each month, part of your mortgage payment is diverted to this escrow account so that your annual property taxes and homeowner's insurance premium can be paid on their next due date.
Points or Origination Fees
An origination fee is paid to the bank or lender for their services in creating the loan. A point is 1 percent of the loan and is often worked into the total cost of the loan. Similar to escrow payments for insurance or property taxes, these additions can increase your monthly mortgage payment.
Credit Report Fees
In order to secure a loan, the lender will require a verified credit report. This fee is typically small, around $25, and the lender may ask you to pay it when the credit check is done, or add it into your closing cost total.
Document Preparation Fees
The lender, broker, or closing attorney will usually have a fee to cover the preparation of the required documents for the loan and closing paperwork. These fees are typically rolled in closing costs for the home and may be covered by either the home buyer or seller.
Survey Fee
A survey is a drawing or map showing the precise legal boundaries of a property and other details. If an existing survey of the land cannot be obtained, a new survey will have to be conducted in order to determine the exact boundaries of the property.
Pest or Mold Inspection
While not generally required for a brand new home, the purchase of an older home may require an inspection for pests such as termites as well as mold. This requirement can vary by location, and the cost usually runs between $200 and $500.
Property Taxes
In some cases, you may owe some property taxes immediately if the seller has already paid taxes for a time period where you will be the owner. Also, there may be other municipal taxes or fees for sewer or water that need to be taken care of. These fees are usually escrowed at closing.
State Recording Fees
Depending on where you live, there may be a fee required for recording and holding the information regarding the sale with your county register of deeds.
Keep in mind that not all of these fees will always apply and they may even vary from state to state. Some may be waived or paid for by the lender or home seller. Regardless, it's important that you understand what the fees are and who is responsible for paying them.
Before you finalize the purchase of your home, talk to your real estate agent, lender, or closing attorney and ask for a preliminary HUD statement. This standard form is used across the United States to itemize services and fees charged to the home buyer by the lender or broker when applying for a loan. Reviewing this statement before finalizing the purchase of your home will help you understand what fees you're responsible for.
By <a href="https://www.thebalance.com/jeremy-vohwinkle-4776185" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.thebalance.com/jeremy-vohwinkle-4776185&source=gmail&ust=1578418761458000&usg=AFQjCNGvsWF6wCzJjIzPXzajxoPNeTHIKw">Jeremy Vohwinkle</a>
2020-01-06T10:43:00-07:002020-01-06T10:48:26-07:00First Source Realtytag:firstsourcere.com,2012-09-20:2607 Tips for Buying a Home in 2020<img width="650" height="433" class="aligncenter wp-image-90819 size-full" alt="Couple standing in front of house" src="https://www.quickenloans.com/blog/wp-content/uploads/2014/05/CoupleInFrontOfHouse.jpg" sizes="(max-width: 650px) 100vw, 650px" />
As we trudge through snowdrifts or gaze out at bleak, rain-soaked streets, spring can seem a long time away. But, we have great news: It will be here before you know it. And as daffodils start popping up, so will the “For Sale” signs, as the spring home-buying season begins.
If your 2020 New Year’s resolution is to buy a new home, now is the time to start getting your ducks in a row. Just think, if you prepare now, when the holidays roll around next year, you’ll be entertaining in the home of your dreams.
Burnish Your Credit
Did you know that your credit score has a direct impact on how much you will pay for a home? That’s because lenders reserve the best rates for borrowers with pristine credit. Their credit gives lenders confidence that they will repay the loan. If your credit isn’t as high as you’d like, now is the time to address that. Doing these three simple things can make a big difference:
Make sure there are no errors on your credit report. Mistakes are more common than you would think— a quarter of Americans have found an error on their report, according to the Federal Trade Commission. If you find one, fix it.
Assess your credit Some consumers assume that it’s better to have fewer credit cards, but actually, credit longevity is one of the factors that makes up your credit score, so you might be hurting yourself if you close an old card. What’s more important is your credit utilization — that is, how much of your available credit you are using each month. Aim for just under 30% of your limit.
Pay your bills on time. Every time. No excuses. Late fees can cripple your credit score, so set your bills on automatic payment to make sure you never miss a due date again.
Choose a Lender
Getting your financing lined up in advance allows you to set a reasonable budget and shows potential sellers that you are a serious buyer, which makes the homebuying process far easier once you hone in on the house you want and make an offer. But choosing a mortgage lender can be a challenging process if you don’t know what to look for.
Rates should be just one consideration. You also want to look for a lender who has excellent customer service and a wide variety of programs so you can find one tailored to your financial needs. After all, a home is probably the largest purchase you’ll ever make, so you want to work with a mortgage lender who puts you first.
Secure a Mortgage Preapproval
By working with a mortgage lender so early in the process, you can get preapproved for your loan before you even start house hunting. With a preapproval in hand, you can be confident of the exact amount your lender will offer you (assuming nothing major changes in your financial life). This helps you zone in on houses in your budget and lets sellers know that the transaction will be worry-free on their end.
Getting a mortgage preapproval involves extra paperwork, but the great news is that when you do find a home you want, you can concentrate on more exciting things, like what flowers you’re going to plant in the yard or how you’re going to redo the bedroom.
Create a Solid Budget
Once you have your mortgage preapproval, you’ll have a good idea of how much your monthly payment will be. But if you’re a new homeowner, you might be surprised to find out that’s just one piece of the cost of owning a home. You’ll also have taxes, insurance, ongoing maintenance costs and sometimes, homeowners association dues.
A budget can help you create a realistic picture of how much it will cost to own your house, not just buy it. It’s also wise to start a fund for big-ticket items such as major repairs or replacements that may come up. An <a href="https://www.quickenloans.com/blog/can-afford-unexpected-500-emergency-not-need-emergency-fund" target="_blank" rel="noopener">emergency fund</a> gives you the peace of mind that you won’t go into debt when an unexpected bill comes your way. Consider all of these factors to create a realistic budget that will help you see how much money is already spoken for each month … and whether that new living room furniture might need to wait.
Make a List of Home Wants and Needs
Sure, it’s fun to just jump online and start looking at homes, but you’re going to become overwhelmed … and, quite possibly, sidetracked by the bells and whistles you’ll see as you browse. Yes, that bedroom fireplace is awesome, but no, it’s probably not a priority.
First, you’ll want to start with home necessities, such as how many bathrooms and bedrooms you need; what school district is important to you, and whether the home needs to be close to public transportation and amenities.
Then, move on to the wants, taking into consideration your lifestyle and what’s really important to you — whether it’s a kitchen made for entertaining, a spacious backyard that will accommodate a swing set, or an office so you can finally write that amazing novel. When you have a clear picture of your priorities, it’s easier to pass up that six-car garage that’s appealing but not really necessary.
Interview Real Estate Agents
House hunting can quickly become a daunting task, so it’s helpful to have someone by your side who has your best interests at heart to help you at the negotiating table and keep you focused as you look at houses.<br /> It’s worth taking the time to interview several agents before choosing one. Find out about their experience in the areas were you’re looking — some well-connected agents may even be able to help you find homes before they hit the market — as well as their experience with a buyer like you.
You’ll also want someone who is compatible personality-wise; you’ll be spending a lot of time with this person — sometimes under stressful conditions, so don’t underestimate the importance of having someone you get along with. Communication styles matter, too — does the agent prefer to call, text or email, and how often? Setting expectations up-front can go a long way in a positive relationship.
Start Visiting Homes
And now — finally — comes the fun part. Once you have all the building blocks lined up, you’ll be ready to visit homes that are in your price range and include most of your necessities and many of your wants. Put together a list of open houses and stop by to see what’s on the market.
Even if you’re not quite ready to commit, the more houses you see, the better grip you’ll get on your own style and the types of amenities that should be standard in your price range. If you’ve kissed a lot of frogs, you’ll recognize a prince immediately and be ready to leap.
Ready to get the process going? Contact us today for a free mortgage quote and more information on how to kick off the homebuying process.
2019-12-28T08:00:00-07:002019-09-17T13:17:16-07:00Robin Frankstag:firstsourcere.com,2012-09-20:331Year-Over-Year Rental Prices on the Rise
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Year-Over-Year Rental Prices on the Rise | MyKCM" src="https://files.mykcm.com/2019/12/16092923/20191226-KCM-Share.jpg" srcset="https://files.mykcm.com/2019/12/16092923/20191226-KCM-Share.jpg 750w, https://files.mykcm.com/2019/12/16092923/20191226-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2019/12/16092923/20191226-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Looking ahead, 2020 is projected to be a strong year for homeownership. According to the Freddie Mac Forecast,
“We expect rates to remain low, falling to a yearly average of 3.8% in 2020.”
If you’re currently renting, 2020 may be a great time to think about making a jump into homeownership while mortgage rates are low.
As noted in the National Rent Report,
“the national rent index increased by 1.4 percent year-over-year.”
With average rents on the rise, this year-over-year increase may not sound like much, but it can add up – fast. The math on how much extra it will cost you over time surely doesn’t lie.
Here’s an example: On a $1,500 rental payment, an increase of 1.4% adds an additional $21 dollars per month to your payment. When multiplied by the twelve months in a year, it’s a $252 overall annual increase. The price continues to multiply when you rent year after year, as rental prices rise.
History shows how average rental prices have been increasing each year, and there doesn’t seem to be much end in sight. Here’s a look at how rents have grown since 2012 alone:<a href="https://files.simplifyingthemarket.com/2019/12/16092852/20191226-MEM-ENG.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="450" class="aligncenter wp-image-90634" alt="Year-Over-Year Rental Prices on the Rise | MyKCM" src="https://files.mykcm.com/2019/12/16092852/20191226-MEM-ENG.jpg" /></a>Why not lock down your monthly housing expense, and at the same time build additional net worth for you and your family? If you’re thinking about buying a home, consider the financial benefits of what homeownership can do for you, especially while the market conditions are strong and current mortgage rates are low.
Bottom Line
With average rents continuing to rise, now may be a great time to stabilize your monthly payment by becoming a homeowner and locking into a low mortgage rate. Let’s get together to discuss how taking advantage of the current market conditions might work for you.
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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-12-26T09:11:00-07:002019-12-26T09:13:45-07:00First Source Realtytag:firstsourcere.com,2012-09-20:323It’s ‘National Roof Over Your Head’ Day!<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="It’s ‘National Roof Over Your Head’ Day! | MyKCM" src="https://files.mykcm.com/2019/11/22092640/20191203-KCM-Share.jpg" srcset="https://files.mykcm.com/2019/11/22092640/20191203-KCM-Share.jpg 750w, https://files.mykcm.com/2019/11/22092640/20191203-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2019/11/22092640/20191203-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Did you know that each year in the United States, we celebrate “National Roof Over Your Head Day” on December 3rd?
As noted on the National Calendar, it was “created as a day to be thankful for what you have, starting with the roof over your head. There are many things that we have that we take for granted and do not stop to appreciate how fortunate we are for having them.”
From bungalows to cottages, and farmhouses to treehouses, today we show our appreciation and gratitude for the places we call home. Owning the roof that shelters us is something many renters still aspire to, knowing there are so many financial and non-financial benefits to homeownership.
According to the 2019 State of the Nation’s Housing from the Joint Center for Housing Studies of Harvard University,
“Cost-burdened renters now outnumber cost-burdened homeowners by more than 3.0 million. In addition, renters make up 10.8 million of the 18.2 million severely burdened households that pay more than half their incomes for housing.”
Homeownership drives many benefits, including providing families with a place to feel secure. It also helps promote confidence that they are investing proactively in themselves and their communities. That is why there are 77.7 million owner-occupied housing units in the United States.
Many, however, fear it is too expensive to own a home. In reality, however, it’s actually more expensive to rent. Here’s the breakdown as a percentage of income necessary for <a title="both" href="https://www.zillow.com/research/affordability/" target="_blank" rel="noopener noreferrer">both</a> – affording median rent and owning a home:<img width="600" height="450" class="aligncenter wp-image-90516 size-medium" alt="It’s ‘National Roof Over Your Head’ Day! | MyKCM" src="https://files.mykcm.com/2019/12/02112402/20191203-MEM-600x450.jpg" />
Bottom Line
Today we pause to appreciate the places we call home, and all of the other reasons we have to be truly thankful. For those who don’t own yet and would like to, it’s a wonderful time to start identifying the steps to take toward homeownership. Let’s connect today to begin creating your plan.
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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.2019-12-03T08:14:00-07:002019-12-03T08:16:06-07:00First Source Realtytag:firstsourcere.com,2012-09-20:313Buyer Demand Growing in Every Region
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Buyer Demand Growing in Every Region | MyKCM" src="https://files.mykcm.com/2019/11/07065132/20191113-KCM-Share.jpg" srcset="https://files.mykcm.com/2019/11/07065132/20191113-KCM-Share.jpg 750w, https://files.mykcm.com/2019/11/07065132/20191113-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2019/11/07065132/20191113-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Buyers are out in full force this fall, increasing the demand for homebuying in all four regions of the country.
According to the latest ShowingTime Showing Index,
“Home showing activity was up again nationwide with a 4.6 percent rise in traffic, as the traditionally slow fall season began with a marked boost in buyer interest.”
Buyers clearly have the right idea, as mortgage rates have dropped over a full percentage point since the fall of 2018. They’ve hovered in a historically low range since this summer, making the overall cost of homeownership significantly more attractive and affordable.
Here’s the breakdown of how ShowingTime reports current buyer traffic patterns across the country:
“The West Region, which until August had experienced 18 consecutive months of flagging home buyer traffic, lead the four regions in year-over-year improvement with an 8.9 percent increase in buyer activity.
The South followed with a 6.4 percent increase, the largest such improvement in the region since April 2018, with the Northeast Region’s 5.6 percent increase the next largest among the four regions.
The Midwest’s more modest 0.8 percent year-over-year growth rounded out the nation’s promising month.”
<a href="https://files.simplifyingthemarket.com/2019/11/07065150/20191113-MEM.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="450" class="aligncenter wp-image-90263" alt="Buyer Demand Growing in Every Region | MyKCM" src="https://files.mykcm.com/2019/11/07065150/20191113-MEM.jpg" /></a>With ShowingTime reporting “nationwide growth for the second consecutive month, a first since December 2017 – January 2018”, it’s one more reason why selling your house this winter is the way to go. List while buyers are on the market, before competition with other sellers pops up in your neighborhood.
Bottom Line
If you’re thinking of waiting until spring to sell, think again! Let’s get together to discuss listing your house now while buyer traffic is actively surging throughout the country.
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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-11-13T09:11:00-07:002019-11-13T09:14:24-07:00First Source Realtytag:firstsourcere.com,2012-09-20:312Homeownership Rate Remains on the Rise<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Homeownership Rate Remains on the Rise | MyKCM" src="https://files.mykcm.com/2019/11/07081538/20191112-KCM-Share.jpg" srcset="https://files.mykcm.com/2019/11/07081538/20191112-KCM-Share.jpg 750w, https://files.mykcm.com/2019/11/07081538/20191112-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2019/11/07081538/20191112-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
In the third quarter of 2019, the U.S. homeownership rate rose again, signaling another strong indicator of the current housing market.
The U.S. Census Bureau announced,
“The homeownership rate of 64.8 percent was not statistically different from the rate in the third quarter 2018 (64.4 percent), but was 0.7 percentage points higher than the rate in the second quarter 2019 (64.1 percent).”
<a href="https://files.simplifyingthemarket.com/2019/11/07081452/20191112-MEM-ENG.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="450" class="aligncenter wp-image-90268" alt="Homeownership Rate Remains on the Rise | MyKCM" src="https://files.mykcm.com/2019/11/07081452/20191112-MEM-ENG.jpg" /></a>Today there is still a lack of inventory, particularly at the entry and middle-level segments of the market, but that is not stopping buyers from making every effort to pursue homeownership. The many financial and non-financial benefits continue to drive the American Dream and will likely do so for generations to come.
Bottom Line
If you’re thinking of buying a home, let’s get together to make your dream a reality.
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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-11-12T09:46:00-07:002019-11-12T09:48:47-07:00First Source Realtytag:firstsourcere.com,2012-09-20:310Planning on Buying a Home? Be Sure You Know Your Options.<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Planning on Buying a Home? Be Sure You Know Your Options. | MyKCM" src="https://files.mykcm.com/2019/11/04062156/20191105-KCM-Share.jpg" srcset="https://files.mykcm.com/2019/11/04062156/20191105-KCM-Share.jpg 750w, https://files.mykcm.com/2019/11/04062156/20191105-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2019/11/04062156/20191105-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
When you’re ready to buy, you’ll need to determine if you prefer the charm of an existing home or the look and feel of a newer build. With limited existing home inventory available today, especially in the starter and middle-level markets, many buyers are considering a new home that’s recently been constructed, or they’re building the home of their dreams.
According to Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB),
“The second half of 2019 has seen steady gains in single-family construction, and this is mirrored by the gradual uptick in builder sentiment over the past few months.”
This is great news for homebuyers because it means there is additional <a title="inventory" href="https://www.nahb.org/news-and-publications/press-releases/2019/10/new-home-sales-remain-stable-in-september.aspx" target="_blank" rel="noopener noreferrer">inventory</a> coming to the market, giving buyers more choices. The most recent data from NAHB shows,
“The inventory of new homes for sale was 321,000 in September, representing a 5.5 months' supply. The median sales price was $299,400. The median price of a new home sale a year earlier was $328,300.”
Another added bonus is that builders are very aware of buyer demand in this segment, so they’re now building in a price range where there are more interested buyers ($299,400 instead of $328,300). With a reduced sales price and low-interest rates, today’s buyers have strong purchasing power.
Bottom Line
If you’re thinking of buying a home, you may want to consider a new build to meet your family’s needs. Let’s get together to discuss the process and review what’s available in our area.
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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-11-05T08:02:00-07:002019-11-05T08:04:38-07:00First Source Realtytag:firstsourcere.com,2012-09-20:308How to Determine If You Can Afford to Buy a Home<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="How to Determine If You Can Afford to Buy a Home | MyKCM" src="https://files.mykcm.com/2019/10/29071344/20191030-KCM-Share.jpg" srcset="https://files.mykcm.com/2019/10/29071344/20191030-KCM-Share.jpg 750w, https://files.mykcm.com/2019/10/29071344/20191030-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2019/10/29071344/20191030-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The gap between the increase in personal income and residential real estate prices has been used to defend the concept that we are experiencing an affordability crisis in housing today.
It is true that home prices and wages are two key elements in any affordability equation. There is, however, an extremely important third component to that equation: mortgage interest rates.
Mortgage interest rates have fallen by more than a full percentage point from this time last year. Today’s rate is 3.75%; it was 4.86% at this time last year. This has dramatically increased a purchaser’s ability to afford a home.
Here are three reports validating that purchasing a home is in fact more affordable today than it was a year ago:
CoreLogic’s Typical Mortgage Payment
“Falling mortgage rates and slower home-price growth mean that many buyers this year are committing to lower mortgage payments than they would have faced for the same home last year. After rising at a double-digit annual pace in 2018, the principal-and-interest payment on the nation’s median-priced home – what we call the “typical mortgage payment”– fell year-over-year again.”
The National Association of Realtors’ Affordability Index
“At the national level, housing affordability is up from last month and up from a year ago…All four regions saw an increase in affordability from a year ago…Payment as a percentage of income was down from a year ago.”
First American’s Real House Price Index (RHPI)
“In 2019, the dynamic duo of lower mortgage rates and rising incomes overcame the negative impact of rising house price appreciation on affordability. Indeed, affordability reached its highest point since January 2018. Focusing on nominal house price changes alone as an indication of changing affordability, or even the relationship between nominal house price growth and income growth, overlooks what matters more to potential buyers – surging house-buying power driven by the dynamic duo of mortgage rates and income growth. And, we all know from experience, you buy what you can afford to pay per month.”
Bottom Line
Though the price of homes may still be rising, the cost of purchasing a home is actually falling. If you’re thinking of buying your first home or moving up to your dream home, let’s connect so you can better understand the difference between the two.
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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.2019-10-30T07:36:00-07:002019-10-30T07:40:10-07:00First Source Realtytag:firstsourcere.com,2012-09-20:298Depending on the Price, You’re Going to Need Advice<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Depending on the Price, You’re Going to Need Advice | MyKCM" src="https://files.mykcm.com/2019/10/21094640/20191022-KCM-Share.jpg" srcset="https://files.mykcm.com/2019/10/21094640/20191022-KCM-Share.jpg 750w, https://files.mykcm.com/2019/10/21094640/20191022-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2019/10/21094640/20191022-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
To understand today’s complex real estate market, it is critical to have a local, trusted advisor on your side – for more reasons than you may think.
In real estate today, there are essentially three different price points in the market: the starter-home market, the middle-home market, and the premium or luxury market. Each one is unique, and depending on the city, the price point in these categories will vary. For example, a starter or lower-end home in San Francisco, California is much more expensive than almost any other part of the country. Let’s explore what you need to know about each of these tiers.
Starter-Home Market: This market varies by price, and these homes are typically purchased by first-time home buyers or investors looking to flip them for a profit. Across the country, homes in this space currently have less than 6 months of inventory for sale. That means there aren’t enough homes on the lower end of the market for the number of people who want to buy them. A low supply like this generally increases competition, drives bidding wars, and sets up an environment where homes sell above the listing price. According to data from the National Association of Realtors (NAR) on realtor.com,
“The desire for affordability continues to push down the inventory for homes listed for less than $200,000.00.”
Middle-Home Market: This segment is often thought of as the move-up market. Typically, the buyer in this market is moving up to a larger, more custom home with more features, all coming at a higher price. Across the country, this market is looking more balanced than the lower end of the market, meaning it has closer to a 6-month supply of inventory for sale. This market is more neutral, but leaning towards a seller’s market.
Premium & Luxury Home Market: This is the top end of the market with larger homes that have even more custom features and upgrades. Nationwide, this market is growing in the number of homes for sale. In the same realtor.com article, we can see that year-over-year inventory of homes in this tier has grown by 4.7%. Today, there are more homes available in the premium and luxury space, leading to more of a buyer’s market at this end.
Bottom Line
Depending on the segment of the market and the price point you’re looking at, you’re going to need the advice of a true local market expert. Let's get together to help you navigate the home-buying or selling process in your market.
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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-10-22T07:08:00-07:002019-10-22T07:15:18-07:00First Source Realtytag:firstsourcere.com,2012-09-20:2973 Reasons to Use a Real Estate Pro in a Complex Digital World
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="3 Reasons to Use a Real Estate Pro in a Complex Digital World | MyKCM" src="https://files.mykcm.com/2019/10/07073758/20191009-Share-KCM.jpg" srcset="https://files.mykcm.com/2019/10/07073758/20191009-Share-KCM.jpg 750w, https://files.mykcm.com/2019/10/07073758/20191009-Share-KCM-600x328.jpg 600w, https://files.mykcm.com/2019/10/07073758/20191009-Share-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re searching for a home online, you’re not alone; lots of people are doing it. The question is, are you using all of your available resources, and are you using them wisely? Here’s why the Internet is a great place to start the home-buying process, and the truth on why it should never be your only go-to resource when it comes to making such an important decision.
According to the National Association of Realtors (NAR), the three most popular information sources home buyers use in the home search are:
Online website (93%)
Real estate agent (86%)
Mobile/tablet website or app (73%)
Clearly, you’re not alone if you’re starting your search online; 93% of home buyers are right there with you. The even better news: 86% of buyers are also getting their information from a real estate agent at the same time.
Here are 3 top reasons why using a real estate professional in addition to a digital search is key:
1. There’s More to Real Estate Than Finding a Home Online. It’s a lonely and complicated trek around the web if you don’t have a real estate professional to also help you through the 230 possible steps you’ll face as you navigate through a real estate transaction. That’s a pretty staggering number! Determining your price, submitting an offer, and successful negotiation are just a few of these key steps in the sequence. You’ll definitely want someone who has been there before to help you through it.
2. You Need a Skilled Negotiator. In today’s market, hiring a talented negotiator could save you thousands, maybe even tens of thousands of dollars. From the original offer to the appraisal and the inspection, many of the intricate steps can get complicated and confusing. You need someone who can keep the deal together until it closes.
3. It Is Crucial to Make a Competitive and Compelling Offer. There is so much information out there in the news and on the Internet about home sales, prices, and mortgage rates. How do you know what’s specifically going on in your area? How do you know what to offer on your dream home without paying too much or offending the seller with a lowball offer?
Dave Ramsey, the financial guru, advises:
“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”
Hiring a real estate professional who has his or her finger on the pulse of the market will make your buying experience an informed and educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.
Bottom Line
If you're ready to start your search online, let’s get together. You’ll want someone who is educated and informed at your side who can answer your questions and guide you through a process that can be complex and confusing if you go at it with the Internet alone.
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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-10-16T07:13:00-07:002019-10-16T07:15:53-07:00First Source Realtytag:firstsourcere.com,2012-09-20:290What to Expect from Your Home Inspection<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="What to Expect from Your Home Inspection | MyKCM" src="https://files.mykcm.com/2019/09/30125258/20191001-Share-KCM.jpg" srcset="https://files.mykcm.com/2019/09/30125258/20191001-Share-KCM.jpg 750w, https://files.mykcm.com/2019/09/30125258/20191001-Share-KCM-600x328.jpg 600w, https://files.mykcm.com/2019/09/30125258/20191001-Share-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
You made an offer and it was accepted. Your next task is to have the home inspected prior to closing. Agents often recommend you make your offer contingent upon a clean home inspection.
This contingency allows you to renegotiate the price you offered for the home, ask the sellers to cover repairs, or in some cases, walk away if challenges arise. Your agent can advise you on the best course of action once the report is filed.
How to Choose an Inspector
Your agent will most likely have a short list of inspectors they’ve worked with in the past to recommend to you. HGTV suggests you consider the following five areas when choosing the right home inspector for you:
1. Qualifications – Find out what’s included in your inspection and if the age or location of your home may warrant specific certifications or specialties.
2. Sample Reports – Ask for a sample inspection report so you can review how thoroughly they will be inspecting your dream home. In most cases, the more detailed the report,<br />the better.
3. References – Do your homework. Ask for phone numbers and names of past clients who you can call to discuss their experiences.
4. Memberships – Not all inspectors belong to a national or state association of home inspectors, and membership in one of these groups should not be the only way to evaluate your choice. Membership in one of these organizations does, however, often mean continued training and education are required.
5. Errors and Omission Insurance – Find out what the liability of the inspector or inspection company is once the inspection is over. The inspector is only human, after all, and it is possible they might miss something they should see.
Ask your inspector if it’s okay for you to tag along during the inspection, so they can point out anything that should be addressed or fixed.
Don’t be surprised to see your inspector climbing on the roof or crawling around in the attic and on the floors. The job of the inspector is to protect your investment and find any issues with the home, including but not limited to: the roof, plumbing, electrical components, appliances, heating and air conditioning systems, ventilation, windows, fireplace and chimney, foundation, and so much more.
Bottom Line
They say, ‘ignorance is bliss,’ but not when investing your hard-earned money into a home of your own. Work with a professional you can trust to give you the most information possible, so you can make the most educated decision about your purchase.
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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.2019-10-01T07:20:00-07:002019-10-01T07:24:12-07:00First Source Realtytag:firstsourcere.com,2012-09-20:283Start Your Fall Home Search TODAY!!
<img width="1275" height="705" src="https://assets.site-static.com/userfiles/795/image/Buyer_Ads_/Picture3.png" />
Finding and purchasing a home that will meet your needs is a significant and often stressful time. Our goal is to make this transition as smooth as possible. We are experts in the area, and once we learn what it is that you’re looking for, finding your dream home is simple.
Before you start looking for a home you should ask yourself a few questions:
Where do you want to live? Are there particular neighborhoods or communities that you like?
What kind of house would you like (need)? Are you looking for a particular style? How many bedrooms and bathrooms do you want?
Is a home office a necessity? Do you need a bonus room or flex-room?
Do you entertain often? Is a home suitable for entertaining something you’re looking for?
Do you want a yard, pool, gated or guard gated community?
Have you determined your price range or consulted a lender to determine the best price range?
Searching for your dream home can be a time-consuming experience. Working with our professional team will make the process much more efficient!
2019-09-18T08:53:00-07:002019-09-18T09:11:47-07:00First Source Realtytag:firstsourcere.com,2012-09-20:282What Buyers Need to Know About HOAs
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="What Buyers Need to Know About HOAs | MyKCM" src="https://files.mykcm.com/2019/09/13085056/20190918-Share-KCM.jpg" srcset="https://files.mykcm.com/2019/09/13085056/20190918-Share-KCM.jpg 750w, https://files.mykcm.com/2019/09/13085056/20190918-Share-KCM-600x328.jpg 600w, https://files.mykcm.com/2019/09/13085056/20190918-Share-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
When searching for a home, you may end up selecting a property in a community with a Homeowners Association (HOA). Before you buy, it’s important to know how an HOA works and what they mean for you.
According to a recent article on realtor.com,
“In a nutshell, an HOA helps ensure that your community looks its best and functions smoothly…The number of Americans living in homes with HOAs is on the rise, growing from a mere 1% in 1970 to 25% today, according to the Foundation for Community Association Research.”
An HOA is governed by a board nominated by those living in the neighborhood. It is designed to make sure the residents have a support structure to maintain the value of the community while abiding by a set of guidelines called Common Restrictive Covenants (CC&R),
“Simply put, CC&Rs are just the rules you'll have to follow if you live in that community. Unlike zoning regulations, which are government-imposed requirements on how land can be used, restrictive covenants are established by HOAs to maintain the attractiveness and value of the property.”
It's important for homeowners to understand that each HOA is a little different, and they usually have monthly or quarterly fees required for homeowners. These fees can vary based on property size, number of residents, amenities, and more. There may be additional fees charged to homeowners if the reserve fund for the HOA cannot cover a major or unexpected cost, like severe storm damage.
The fees, however, also help maintain common areas such as swimming pools, tennis courts, elevators (for high-rise buildings), and regular wear and tear. Although they are an added cost to the homeowner, an HOA can be a major benefit when it comes to maintaining the value of your neighborhood and your property.
The same article continues to say,
“After your offer to buy a home is accepted, you are legally entitled to receive and review the community's CC&Rs over a certain number of days (typically between three and 10)…If you spot anything in the restrictive covenants you absolutely can't live with, you can bring it up with the HOA board or just back out of your contract completely (and keep your deposit).”
Most lenders will factor your HOA fees into your loan package, ensuring the amount of the loan is appropriate for what you can truly afford.
There are some great benefits to having an HOA oversee your neighborhood, and it’s important to understand what fees, structures, and regulations will come into play if there is an HOA where you’d like to live.
Bottom Line
When you’re looking at a potential property to buy, let’s get together so you have a professional who can help you understand the neighborhood’s HOA structure and fees. This way, you’ll feel confident and fully informed when buying a home.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-09-18T07:21:00-07:002019-09-18T07:24:10-07:00First Source Realtytag:firstsourcere.com,2012-09-20:280Home Prices Increase in Every Price Range
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Home Prices Increase in Every Price Range | MyKCM" src="https://files.mykcm.com/2019/09/16070920/20190917-Share-KCM.jpg" srcset="https://files.mykcm.com/2019/09/16070920/20190917-Share-KCM.jpg 750w, https://files.mykcm.com/2019/09/16070920/20190917-Share-KCM-600x328.jpg 600w, https://files.mykcm.com/2019/09/16070920/20190917-Share-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
CoreLogic’s Home Price Index (HPI) Report revealed,
“National home prices increased 3.6% year over year in July 2019 and are forecast to increase 5.4% from July 2019 to July 2020.”
They also analyzed four individual home-price tiers, showing the increase in each.
Here’s the breakdown:
<a href="https://files.simplifyingthemarket.com/2019/09/16070518/20190917-MEM.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="450" class="aligncenter wp-image-89276" alt="Home Prices Increase in Every Price Range | MyKCM " src="https://files.mykcm.com/2019/09/16070518/20190917-MEM.jpg" /></a>To clarify the methodology, CoreLogic explains,
“The four price tiers are based on the median sale price and are as follows: homes priced at 75% or less of the median (low price), homes priced between 75% and 100% of the median (low-to-middle price), homes priced between 100% and 125% of the median (middle-to-moderate price) and homes priced greater than 125% of the median (high price).”
What does this mean if you’re selling?
Price appreciation can differ depending on your price range. If you’re a homeowner thinking of selling, let’s get together to find out how much your home is increasing in value, so you can price it competitively for today’s market.
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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-09-17T06:55:00-07:002019-09-17T06:57:55-07:00First Source Realtytag:firstsourcere.com,2012-09-20:273Looking for the perfect home?<img width="1920" height="1040" src="https://assets.site-static.com/userfiles/795/image/Buyer_Ads_/is_it_time_for_a_home_with_room_for_a_BBQ.jpg" />
Buying a Home in South East LA
Finding and purchasing a home that will meet your needs is a significant and often stressful time. Our goal is to make this transition as smooth as possible. We are experts in the area, and once we learn what it is that you’re looking for, finding your dream home is simple.
Before you start looking for a home you should ask yourself a few questions:
Where do you want to live? Are there particular neighborhoods or communities that you like?
What kind of house would you like (need)? Are you looking for a particular style? How many bedrooms and bathrooms do you want?
Is a home office a necessity? Do you need a bonus room or flex-room?
Do you entertain often? Is a home suitable for entertaining something you’re looking for?
Do you want a yard, pool, gated or guard gated community?
Have you determined your price range or consulted a lender to determine the best price range?
Searching for your dream home can be a time-consuming experience. Working with our professional team will make the process much more efficient!2019-09-11T10:01:00-07:002019-09-17T07:12:31-07:00Robin Frankstag:firstsourcere.com,2012-09-20:246Homes For Sale <img src="https://assets.site-static.com/userfiles/795/image/Homes_for_Sale.gif" width="1200" height="900" />2019-08-02T08:04:00-07:002019-08-02T08:06:14-07:00Robin Frankstag:firstsourcere.com,2012-09-20:2423 Powerful Reasons to Buy a Home Now
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="3 Powerful Reasons to Buy a Home Now | MyKCM" src="https://files.mykcm.com/2019/07/22125549/20190725-Share-KCM.jpg" srcset="https://files.mykcm.com/2019/07/22125549/20190725-Share-KCM.jpg 750w, https://files.mykcm.com/2019/07/22125549/20190725-Share-KCM-600x328.jpg 600w, https://files.mykcm.com/2019/07/22125549/20190725-Share-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Whether you are a first-time buyer or looking to move up to the home of your dreams, now is a great time to purchase a home. Here are three major reasons to buy today.
1. Affordability
Many people focus solely on price when talking about home affordability. Since home prices have appreciated throughout the past year, they assume homes are less affordable. However, affordability is determined by three components:
Price
Wages
Mortgage Interest Rate
Prices are up, but so are wages - and interest rates have recently dropped dramatically (see #2 below). As a result, the National Association of Realtors’ (NAR) latest Affordability Index report revealed that homes are MORE affordable throughout the country today than they were a year ago.
“All four regions saw an increase in affordability from a year ago. The South had the biggest gain in affordability of 6.9%, followed by the West with a gain of 6.0%. The Midwest had an increase of 5.8%, followed by the Northeast with the smallest gain of 1.8%.”
2. Mortgage Interest Rates
Mortgage rates have dropped almost a full point after heading toward 5% last fall and early winter. Currently, they are below 4%.<br /><a href="https://files.simplifyingthemarket.com/2019/07/22125454/20190725-MEM.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="450" class="aligncenter wp-image-87840" alt="3 Powerful Reasons to Buy a Home Now | MyKCM" src="https://files.mykcm.com/2019/07/22125454/20190725-MEM.jpg" /></a>Additionally, Fannie Mae recently predicted the average rate for a 30-year fixed mortgage will be 3.7% in the second half of 2019. That compares to a 4.4% average rate in the first quarter and 4% in the second quarter.
With mortgage rates remaining near historic lows, Fannie Mae and others have increased their forecasts for housing appreciation for the rest of the year. If home price gains are about to re-accelerate, buying now rather than later makes financial sense.
3. Increase Family Wealth
Homeownership has always been recognized as a sensational way to build long-term family wealth. A new report by ATTOM Data Solutions reveals:
“U.S. homeowners who sold in the second quarter of 2019 realized an average home price gain since purchase of $67,500, up from an average gain of $57,706 in Q1 2019 and up from an average gain of $60,100 in Q2 2018. The average home seller gain of $67,500 in Q2 2019 represented an average 33.9 percent return as a percentage of original purchase price.”
The longer you delay purchasing a home, the longer you are waiting to put the power of home equity to work for you.
Bottom Line
With affordability increasing, mortgage rates decreasing, and home values about to re-accelerate, it may be time to make a move. Let’s get together to determine if buying now makes sense for your family.
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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-07-25T07:02:00-07:002019-07-25T07:07:47-07:00First Source Realtytag:firstsourcere.com,2012-09-20:231Now’s the Time to Move-Up and Upgrade Your Current Home!
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Now’s the Time to Move-Up and Upgrade Your Current Home! | MyKCM" src="https://files.mykcm.com/2019/07/04094027/20190708-Share-KCM.jpg" srcset="https://files.mykcm.com/2019/07/04094027/20190708-Share-KCM.jpg 750w, https://files.mykcm.com/2019/07/04094027/20190708-Share-KCM-600x328.jpg 600w, https://files.mykcm.com/2019/07/04094027/20190708-Share-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Homes priced at the top 25% of the price range for a particular area of the country are considered "premium homes." In today’s real estate market, there are deals to be had at the higher end! This is great news for homeowners wanting to upgrade from their current house.
Much of the demand for housing over the past couple of years has come from first-time buyers looking for their starter home. Many of the more expensive homes listed for sale have not seen as much interest.
According to ILHM’s Luxury Report, this mismatch in demand and inventory of luxury and premium homes has created a Buyer’s Market. For the purpose of the report, a luxury home was defined as one that costs $1 million or more.
“A Buyer’s Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point.”
The authors of the report were quick to point out that current conditions at the higher end of the market are no cause for concern.
“While luxury homes may take longer to sell than in previous years, the slower pace, increased inventory levels and larger differences between list and sold prices, represent a normalization of the market, not a downturn.”
Luxury can mean different things to different people. To one person, luxury is a secluded home with plenty of property and privacy. To another, it could be a penthouse at the center of a bustling city. Knowing what characteristics mean luxury to you will help your agent find you the home of your dreams.
Bottom Line
If you are debating upgrading your current house to a premium or luxury home, now is the time!
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-07-09T08:45:00-07:002019-07-09T08:48:44-07:00First Source Realtytag:firstsourcere.com,2012-09-20:226Having a Professional on Your Side Makes All the Difference!<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Having a Professional on Your Side Makes All the Difference! | MyKCM" src="https://files.mykcm.com/2019/06/01102939/20190625-Share-KCM.jpg" srcset="https://files.mykcm.com/2019/06/01102939/20190625-Share-KCM.jpg 750w, https://files.mykcm.com/2019/06/01102939/20190625-Share-KCM-600x328.jpg 600w, https://files.mykcm.com/2019/06/01102939/20190625-Share-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
In today’s fast-paced world where answers are a Google search away, there are some who may wonder what the benefits of hiring a real estate professional to help them in their home search are. The truth is, the addition of more information causes more confusion.
Shows like Property Brothers, Fixer Upper, and dozens more on HGTV have given many a false sense of what it’s like to buy and sell a home.
Now more than ever, you need an expert on your side who is going to guide you toward your dreams and not let anything get in the way of achieving them. Buying and/or selling a home is definitely not something you want to DIY (Do It Yourself)!
Here are just some of the reasons you need a real estate professional in your corner:
There’s more to real estate than finding a house you like online!
There are over 230 possible steps that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions are, to ensure you achieve your dream?
You Need a Skilled Negotiator
In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible renegotiation of that offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.
What is the home you’re buying or selling worth in today’s market?
There is so much information on the news and on the Internet about home sales, prices, and mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively and correctly price your home at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a lowball offer?
Dave Ramsey, the financial guru, advises:
“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”
Hiring an agent who has his or her finger on the pulse of the market will make your buying or selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.
Bottom Line
Today’s real estate market is highly competitive. Having a professional who’s been there before to guide you through the process is a simple step that will give you a huge advantage!
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-06-25T06:56:00-07:002019-06-25T06:58:57-07:00First Source Realtytag:firstsourcere.com,2012-09-20:225Young First-Time Buyers Are Saving for Their Dream Homes<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Young First-Time Buyers Are Saving for Their Dream Homes | MyKCM" src="https://files.mykcm.com/2019/06/17093630/20190620-Share-KCM.jpg" srcset="https://files.mykcm.com/2019/06/17093630/20190620-Share-KCM.jpg 750w, https://files.mykcm.com/2019/06/17093630/20190620-Share-KCM-600x328.jpg 600w, https://files.mykcm.com/2019/06/17093630/20190620-Share-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Young buyers (Millennials & Gen Z) have waited longer than previous generations to enter the housing market for their first home. However, this hasn’t stopped them from dreaming about the home they will eventually buy. Many spend hours searching listings and building Pinterest boards of their favorite home features.
According to a survey from Open Listings, 70% of single renters are more likely to spend their Sunday nights swiping through house listings than dating profiles.
All that time window shopping has led 45% of millennials to expect the first home they buy to be their “dream home”! They are willing to wait longer, save more for a larger down payment, and are pickier about the listings they want to tour and the features that they want to see in their first home.
Waiting a little longer to buy a home than their parents or grandparents did has also helped young buyers become more established in their careers prior to making such a large purchase. Lawrence Yun, NAR’s Chief Economist, recently commented,
"Older millennials are now entering the prime earning stages of their careers, and the size and costs of homes they purchase reflect this. Their choices are falling more in line with their Gen X and boomer counterparts."
In some areas of the country, high competition in the starter home market forces young buyers to wait longer. The extra money they save during that time opens their search to bigger, more expensive homes.
If this trend continues, older millennials will skip the starter home altogether, going straight to a trade-up or premium home instead.
Bottom Line
If you are one of the many young renters planning on buying your first home soon, let’s get together to help determine what type of home will best suit your present and future needs.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.2019-06-20T13:10:00-07:002019-06-20T13:12:55-07:00First Source Realtytag:firstsourcere.com,2012-09-20:2204 Most Popular Bottom Line Investments in America
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="4 Most Popular Bottom Line Investments in America | MyKCM" src="https://files.mykcm.com/2019/05/14144241/20190523-Share-KCM.jpg" /><br /><br />
Every year, Gallup surveys Americans to determine their choice for the best long-term investment. Respondents are given a choice between real estate, stocks, gold, and savings accounts.
For the sixth year in a row, real estate has come out on top as the best long-term investment! That has not always been the case. Gallup explains:
“Between 2008 and 2010, covering most of the Great Recession period that saw plummeting home and stock values, Americans were as likely to name savings accounts or CDs as the best long-term investment as they were to name stocks or real estate.”
This year’s results showed that 35% of Americans chose real estate, followed by stocks at 27%. The full results are shown in the chart below.
<a href="https://files.simplifyingthemarket.com/2019/05/15094859/20190523-MEM-1.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="337" class="aligncenter wp-image-85478" alt="4 Most Popular Bottom Line Investments in America | MyKCM" src="https://files.mykcm.com/2019/05/15094859/20190523-MEM-1.jpg" /></a>
Bottom Line
Now that the real estate market has recovered, so has the belief of the American people in the stability of housing as a long-term investment.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-05-23T08:03:00-07:002019-05-23T08:06:05-07:00First Source Realtytag:firstsourcere.com,2012-09-20:219Boomerang Buyers: Don’t Be Afraid to Buy a Home Again!
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Boomerang Buyers: Don’t Be Afraid to Buy a Home Again! | MyKCM" src="https://files.mykcm.com/2019/05/15085823/20190522-Share-KCM.jpg" /><br /><br />
According to CoreLogic, from 2006 to 2014 “there were 7.3 million housing foreclosures and 1.9 million short sales.” The hesitation some Americans feel after experiencing a foreclosure brings to mind the old saying: “Fool me once- shame on you. Fool me twice- shame on me.”
According to the 2019 Home Buyer Report from NerdWallet,
“Thirteen percent of Americans have lost a home due to a financial event such as foreclosure in the past 10 years. More than 6 in 10 of them (61%) have not bought a home since, and 20% of those who haven’t repurchased say they never plan to again.”
This makes sense. They don’t want to go through the same pain again. As a cornerstone of the American dream, nobody wants to lose homeownership. But let’s illustrate this simply: Recall learning to ride your first bike during your childhood. Did you stop riding it because you fell on the ground and scraped your knees? Or did you get back on and try again until you were able to ride without falling?
Purchasing a home is not as simple as learning to ride a bike, but the concept is the same! There are many things necessary to learn that affect the ability to get the financing needed to purchase a home. Past occurrences can determine if there is a waiting period. In other words, you need to let your knees heal before you try again!
As we’ve mentioned in the past, homeownership has many financial and non-financial benefits. Each person needs to go over the pros and cons, taking the time to figure out what is best for their family. Should they continue renting, or should they try to buy again?
The good news is that some “boomerang buyers” are getting back into the market. They’re getting back on their bike!
“Of 2.8 million former homeowners whose foreclosures, short sales or bankruptcies dropped off their credit reports from January 2016 to November 2018, 11.5% have obtained a new mortgage, according to a study by credit rating agency Experian for USA Today.”
NerdWallet’s report also mentioned:
6% plan to buy a house this year.
39% intend to buy over the next 3 years.
58% say they will purchase within 5 years.
Bottom Line
If you lost a home due to a financial event but would like to review your options, let’s get together to help you create a plan to obtain a home in the future! 504-754-0059 info@firstsourcere.com
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-05-22T07:46:00-07:002019-05-23T05:53:56-07:00First Source Realtytag:firstsourcere.com,2012-09-20:217What is Really Happening with Home Prices?<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="What is Really Happening with Home Prices? | MyKCM" src="https://files.mykcm.com/2019/05/13111818/20190516-STM-share.jpg" />
Home values have softened over the last twelve months. We are no longer seeing 6-7% annual appreciation levels for the national housing market. The current numbers are closer to 4%. Some have suggested that year-over-year appreciation levels could fall to 3% or less this year.
However, a stronger-than-expected economy and a good spring housing market have changed some opinions. Some analysts are now predicting that home value appreciation may begin to increase as we move forward.
Here are three examples:
Mark Fleming, Chief Economist of First American
“Data on the movement of unadjusted house prices during the early spring home-buying season won’t be available for a few more months, but it’s quite likely that price appreciation will accelerate again.”
CoreLogic’s April “Home Price Insights”
“Home prices nationwide, including distressed sales, increased year over year by 3.7% in March 2019 compared with March 2018…The CoreLogic HPI Forecast indicates that home prices will increase by 4.8% on a year-over-year basis from March 2019 to March 2020.”
Pulsenomics’ Quarterly “Home Price Expectation Survey”
The 2018 4th Quarter survey called for 3.8% appreciation for 2019.
The 2019 1st Quarter survey raised the appreciation projection for this year to 4.3%.
Bottom Line
Price appreciation has slowed over the past year. However, a strong economy and a good housing market have many experts thinking that home values might re-accelerate moderately throughout the rest of this year.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-05-16T10:29:00-07:002019-05-21T07:22:11-07:00First Source Realtytag:firstsourcere.com,2012-09-20:214USDA Rural Mortgage Loan Basics <img width="750" height="410" src="https://assets.site-static.com/userfiles/795/image/GettyImages-514408623-56a646fd3df78cf7728c34b0.jpg" />
Tagged the “Farmers Loan” decades ago, USDA rural mortgage financing is unique in the mortgage market. Along with VA financing, the United States Department of Agriculture offers one of the only true 100% financing options.
No down payment. 100% mortgage financing.
Geographically restricted to American “rural” areas and limited to borrowers with low to moderate incomes, rural financing serves valiantly a normally underserved housing demographic.
USDA Office of Rural Development (RD) is an agency of the United States Department of Agriculture which runs programs intended to improve the economy and quality of life in rural America. Rural Development has an $86 billion loan portfolio and administers nearly $16 billion in program loans, loan guarantees, and grants through their programs.
On October 13, 1994, the Department of Agriculture was reorganized under the Federal Crop Insurance Reform Act of 1994 and Department of Agriculture Reorganization Act of 1994. Under that act, USDA Rural Development was created to administer the former Farmers Home Administration (FmHA) non-farm financial programs for rural housing, community facilities, water and waste disposal, and rural businesses.
Rural Areas
The term "rural area" means any area, as confirmed by the latest decennial census of the Bureau of Census, which is not located:
within a city, town, or incorporated area that has a population of greater than 20,000 inhabitants; or
an urbanized area contiguous and adjacent to a city or town that has a population of greater than 50,000 inhabitants
The USDA further clarifies their guidelines, specifically the guidelines for areas that might have previously been prime “rural” territory, but grew up and is no longer “rural."
Any area classified as ‘‘rural’’ or a ‘‘rural area’’ prior to October 1, 1990, and determined not to be ‘‘rural’’ or a ‘‘rural area’’ as a result of data received from or after the 1990, 2000, or 2010 decennial census, and any area deemed to be a ‘‘rural area’’ at any time during the period beginning January 1, 2000, and ending December 31, 2010, shall continue to be so classified until the receipt of data from the decennial census in the year 2020, if such area has a population in excess of 10,000 but not in excess of 35,000, is rural in character, and has a serious lack of mortgage credit for lower and moderate-income families.
Confused yet? No worries, it is not as intimidating as it sounds. If you are in small town America you will, in likelihood, have areas of your community eligible for rural mortgage financing.
All that said, you are likely asking what is in it for you? Is USDA financing a legitimate consideration for your mortgage loan? What are the benefits for rural homeowners?
Benefits of USDA Financing
The major benefits are:
100% mortgage LTV based on the APPRAISED value
Zero down payment and no minimum contribution required.
No limit on seller concessions or gift
Low mortgage insurance rates
Low-interest rates
Flexible Credit Guidelines
Property must be in a rural eligible location
The Rural Housing Loan program is a product of the U.S. Department of Agriculture. It's partially funded by program borrowers. Similar to the Federal Housing Administration's FHA mortgage, the USDA uses homeowner-paid mortgage insurance premiums to keep the USDA home loan program going.
Many areas in the River Parishes qualify for this loan. If you have questions or would like more information, contact us at 504-754-0059 and one of our associates will be glad to assist you and provide you with a list of lenders that offer this product.
At the time of writing, Elizabeth Weintraub, CalBRE #00697006, is a broker-associate at Lyon Real Estate in Sacramento, California.
2019-05-14T07:18:00-07:002019-05-14T07:27:41-07:00Robin Frankstag:firstsourcere.com,2012-09-20:213A Lack of Inventory Continues to Impact the Housing Market<img width="750" height="410" src="https://assets.site-static.com/userfiles/795/image/20190513-Share-KCM.jpg" />
The housing crisis is finally in the rear-view mirror as the real estate market moves down the road to a complete recovery. Home values are up and distressed sales (foreclosures and short sales) have fallen to their lowest point in years. The market will continue to strengthen in 2019.
However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory! <a title="Buyer demand" href="https://www.mykcm.com/2019/04/18/buyer-demand-surging-as-spring-market-begins/">Buyer demand</a> naturally increases during the summer months, but supply has not kept up.
Here are the thoughts of a few industry experts on the subject:
Lawrence Yun, Chief Economist at National Association of Realtors
“Further increases in inventory are highly desirable to keep home prices in check, the sustained steady gains in home sales can occur when home price appreciation grows at roughly the same pace as wage growth.”
Jessica Lautz, Vice President of NAR
“There’s a supply-demand mismatch… More inventory is needed at the lower end and a price reduction may be needed at the upper end.”
Danielle Hale, Chief Economist of Realtor.com
“Heading into spring, U.S. prices are expected to continue to rise and inventory is expected to continue to increase, but at a slower pace than we’ve seen the last few months as fewer sellers want to contend with this year’s more challenging conditions… A buyer’s experience will vary notably depending on the market and price point they’re targeting.”
Bottom Line
If you are thinking of selling, now may be the time! Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price!
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-05-13T08:17:00-07:002019-05-13T09:17:23-07:00First Source Realtytag:firstsourcere.com,2012-09-20:209How to Ask a Home Seller to Pay a Closing Cost Credit <img width="1024" height="768" src="https://assets.site-static.com/userfiles/795/image/business-communication-connection-people-concept-660182950-5abbf9bdae9ab80037d548bf.jpg" />
Counterintuitive as it sounds, home sellers often pay part or even all of their buyer's closing costs. Let's look at the circumstances under which these closing cost credits occur and how to get a seller to agree to them.
Which Kind of Homebuyers Seek a Closing Cost Credit?
Buyers who ask for a closing cost credit are often first-time homebuyers. They might be obtaining a Federal Housing Authority (FHA) loan or Department of Veterans Affairs (VA) loan, programs whose generous terms enable people with little in the way of upfront reserves to become homeowners. The FHA requires buyers to make a down payment of only 3.5 percent of the home's purchase price; the VA requires no down payment at all.
Many of these types of buyers do not have the ready cash to pay the closing costs, which, while they can vary tremendously depending on the municipality, typically range from 2 to 5 percent of the home's purchase price. However, better-heeled buyers may also lack the liquidity to pay closing costs that can run into the tens of thousands of dollars, especially after they've made the 20 percent down payment that conventional mortgages require. So, those buyers, too, might ask the seller for closing cost assistance.
How Much Can a Closing Cost Credit Be?
Although the seller needs to be amenable to the idea, naturally, the matter of paying the closing costs isn't totally up to him. The buyer's mortgage lender usually sets restrictions as to how large the credit can be. Some lenders limit it to 3 percent of the purchase price, for example. Nor do lenders like the credit to exceed the actual amount of the closing costs.
Say the purchase price of a home is $300,000 and the maximum credit the lender allows is 3 percent, or $9,000—but the closing costs end up totaling 2 percent, or $8,000. The $8,000 is all the lender would officially allow, although that $1,000 of unused credit could be applied if the buyer's agent and lender used a little ingenuity—buying down the interest rate if nothing else.
Negotiating a Credit: A Bigger Purchase Price
The primary way many buyers get the sellers to pay a closing cost credit is by agreeing to a higher purchase price. For example, let's say a home is listed at $300,000 and the buyers are figuring on 3 percent in closing costs. If you were to divide the sales price by .97, that would equal $309,278. So, a buyer would offer that amount (maybe rounding it up to $310,000), contingent on receiving a $9,278 credit. Even with paying that credit, the seller still nets $300,000.
The drawback to this approach comes if the buyer's lender does not appraise the home at $310,000. If there is no provision for this in the purchase contract, the seller could be stuck paying a credit based on the higher sales price and netting less than anticipated.
Negotiating a Credit: A Fast Close
Another popular approach to getting the seller to pay closing costs relates to escrow—that tense period between the signing of the contract and the actual completion of the deal. Sellers want qualified buyers who will not cause any problems during the escrow period, like making a fuss about issues uncovered by the home inspection. If a buyer offers to accept the home in its as-is condition and not demand major repairs, it could encourage the seller to agree to some credits: a small price in return for the assurance escrow will close without hassles.
Negotiating a Credit: Other Trade-Offs
If the seller seems reluctant to offer a credit, a buyer could ask for a different sort of break—such as halving the down payment or earnest money—leaving funds for the closing costs. Alternatively, the buyer could ask for a little discount on the home's price (sellers usually work a little flexibility into the price tag anyway), which will, in turn, lower the closing costs. Finally, if the seller does not want to pay the full amount of the closing costs, ask if she'll pay a smaller percentage of them.
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California. 2019-05-08T07:16:00-07:002019-05-13T09:30:00-07:00Robin Frankstag:firstsourcere.com,2012-09-20:207We Buy Homes for Cash! Are These Deals for Real? <img width="750" height="410" src="https://assets.site-static.com/userfiles/795/image/WePayCashforHomes-5663a8ab3df78ce161a3d896.jpg" />
Cash buyers for houses used to be referred to as equity purchase companies (EPs) before the boom of social media. Now they're sometimes referred to as "opportunity investors"—with good cause.
The emphasis should be on the word "opportunity." These are companies that purchase homes from sellers who are in distress and must sell as quickly as possible. They might offer to close on the property with lightning speed, usually within 30 days because they don't have to deal with arranging for financing. They offer cold, hard cash and typically waive inspection contingencies. The entire transaction is supposed to take place like a snap of the fingers.
These offers often seem like lifelines to owners who are desperate to get out of their homes and their loans as quickly as possible.
These Buyers Target Certain Sellers
These cash-paying buyers often advertise the types of situations they're searching for in the hope that someone will recognize his own predicament among them and call. Opportunity investors typically look for:
Sellers who can't sell or whose listings have expired
Sellers who are divorcing
Sellers in bankruptcy
Homes in probate
Homes in foreclosure
Sellers whose employers have transferred them
Owners who are evicting tenants
Vacant homes
Trashed or damaged homes
No-Commission and No-Fee Promises
Generally, these companies will point out that you'll pay no real estate commissions, but sellers net more by hiring a listing agent most of the time. Agents often get as much as 125 percent of a home's fair market value. You won't get this from a fast-cash buyer.
Think about it. These buyers would profit even more if they charged a commission. Most don't charge commissions because there's such a strong conflict of interest. They don't want to get sued. The only thing worse than ripping off a seller is ripping them off on top of squeezing a commission in under dual agency.
These operators typically process the sales in-house instead of hiring an outside service, and they pay for their own title policies or even skip title insurance altogether. They save every dime they can.
And if any outfit proposes fees and wants them up front, this is a real warning sign that you're dealing with a shyster. Real estate agents take their commissions at the end of the deal. Ask yourself why this person wants money in advance.
What Happens If You Call That Phone Number?
If you bite and call, the buyer will most likely make a prompt appointment with you to come to your home. She'll want to know early in the meeting how much you owe on your mortgage. Everything begins with this number. If you still owe your mortgage lender $50,000, you can bet this is exactly how much the fast-cash buyer will offer. She won't budge and go higher. You'll get just enough cash—maybe—to cover your loan balance.
She most likely won't make an offer until after looking over your property, and—surprise! —the value she assigns to it will closely correspond with the amount of your outstanding loan.
How Much Do Cash Buyers Pay?
The strategy used by cash-for-homes companies is to negotiate the lowest price possible for your home. On average, they'll offer about 65 percent of a home's fair market value.
These buyers will sometimes take title "subject to" your existing loan, meaning that they'll take over your mortgage payments. But if you don't pay off your mortgage with the cash you receive, you'll still be on the hook for that loan until it is paid off. "Subject to" transactions are generally against the law.
Cash buyers raise pools of money or use lines of credit to cash you out, and the less cash they give you, the faster they will close.
The fast-cash buyer will then turn around and resell your home to a conventional buyer for a higher sales price after closing, making a whopping profit in the process. And you most likely lost any legal right for recourse that you might have had if you hadn't signed on the dotted line.
Is Anything Good About These Deals?
Fast cash offers usually pose more problems than they purport to solve, and you'll have to look hard to find a silver lining depending on your needs and what has you considering this type of deal in the first place.
You won't have to wait and worry about the buyer being approved for financing, and if your place requires extensive repairs, you won't have to foot the bill for those repairs before closing. Things like inspections and appraisals are typically taken off the table as well.
Do Your Homework
Your first tip regarding the legitimacy of such a buyer will be the company's sign. Does it bear a company name or just a phone number? If it's just a phone number, ask yourself why. Wouldn't you want to get your business name out there?
Any fast-cash buyer who is even halfway legitimate will almost certainly have a website. Go online and look for it. Try to trace the posted phone number to find a name associated with it if that's the only information you have, but you might not have much luck. Many of these buyer’s route phone calls through services so they're untraceable.
You might be surprised by what you find if you can find a name. Some of these buyers are real estate firms masquerading as opportunity investors—at least on their signs or in their advertising. They're just trying to lure you in to get your listing. But even that might be preferable to a real fast-cash buyer.
Look for a Better Business Bureau review if you're able to pin down a company name, as well as other customer reviews.
A More Conventional Alternative
You might want to consider listing your home for sale with a reputable, full-service brokerage if you aren't truly desperate. Fast-cash buyers don't care about the finer details of the transaction, and selling a home involves so many potential legal pitfalls that you could be leaving yourself wide open for disaster if they go unattended because you didn't use a reputable broker.
Getting a more traditional, solid, and lucrative deal can involve as little as finding the right real estate agent and making some minor repairs and cosmetic adjustments to your home. You'll receive cash either way, whether you sell to a fast-cash buyer or to a conventional buyer. The difference is that a conventional buyer will probably pay more for your home and will also take out financing that will pay off your existing loan.
In cases where you're truly struggling to sell, you might want to consider other alternatives to home selling. You might want to rent your home for enough to cover your mortgage payments or offer a lease-to-own option. A fast-cash buyer is not your only choice.
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
2019-04-30T07:34:00-07:002019-05-13T09:30:21-07:00First Source Realtytag:firstsourcere.com,2012-09-20:186What Credit Score Do You Need To Buy A House?
<img width="750" height="410" alt="What Credit Score Do You Need To Buy A House? | MyKCM" src="https://files.mykcm.com/2019/03/14074930/20190319-Share-KCM.jpg" /><br /><br />
There are many misconceptions about the credit score needed to buy a house. Recently, it was reported that 24% of renters believe they need a 780-800 credit score to be considered for a mortgage. The reality is they are misinformed!
Only 25% of the Americans have a FICO® Score between 740 and 800. Here is the breakdown according to Experian:
16% Very Poor (300-579)
18% Fair (580-669)
21% Good (670-739)
25% Very Good (740-799)
20% Exceptional (800-850)
Randy Hopper, Senior Vice President of Mortgage Lending for Navy Federal Credit Union <a title="said" href="https://www.bankrate.com/finance/credit/low-credit-score-borrowers-get-mortgage.aspx?utm_source=twitter&utm_medium=organic_social" target="_blank" rel="noopener noreferrer">said</a>,
“Just because you have a low credit score doesn’t mean you can’t purchase a home. There are a lot of options out there for consumers with low FICO® scores,”
There are many programs available with low or no credit score requirement. The Federal Housing Administration (FHA) now requires a minimum FICO® score of 580 if you want to qualify for the low down payment advantage. The US Department of Agriculture (USDA) does not set a minimum credit score requirement, but most lenders require a score of at least 640. Veterans Affairs (VA) loans have no credit score requirement.
As you can see, none of them are above 700!
It is true that the average FICO® score for all closed loans in January was 726, but there are plenty of people taking advantage of the low credit score requirements. Here is the average FICO® Score of closed FHA Loans since April 2012 according to Ellie Mae:<a href="https://files.simplifyingthemarket.com/2019/03/15122514/MEM-Average-FICO-Score-of-Closed-FHA-Loans.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="450" alt="What Credit Score Do You Need To Buy A House? | MyKCM" src="https://files.mykcm.com/2019/03/15122514/MEM-Average-FICO-Score-of-Closed-FHA-Loans.jpg" /></a>As you can see, that number has been dropping for the last seven years. As a matter of fact, the average FHA Purchase FICO® Score reported in January 2019 was 675!
One of the challenges is that Americans are unsure about their credit score. They just assume that it is too low to qualify and do not double check. Credit.com confirmed that only <a title="57%" href="https://blog.credit.com/2018/08/how-much-do-americans-actually-know-about-credit-scoring-186118/" target="_blank" rel="noopener noreferrer">57%</a> of individuals sought out their credit score at least once last year.
FICO® reported,
“Since October 2009, the average year-over-year FICO® Score has steadily and consistently increased, from a low of 686 in 2009 to the latest high of 704 as of 2018.”
Here is the increase in the average US FICO® Score over the same period of time as the graph earlier.
<a href="https://files.simplifyingthemarket.com/2019/03/15122347/MEM-US-Average-FICO-Score.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="450" alt="What Credit Score Do You Need To Buy A House? | MyKCM" src="https://files.mykcm.com/2019/03/15122347/MEM-US-Average-FICO-Score.jpg" /></a>
Bottom Line
At least 84% of Americans have a score that will allow them to buy a house. If you are unsure what your score is or would like to improve your score in order to become a homeowner, let’s get together to help you set a path to reach your dream!
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.2019-03-19T07:01:00-07:002019-03-19T07:07:27-07:00First Source Realtytag:firstsourcere.com,2012-09-20:1837 Things To Avoid After Applying for a Mortgage!
<img width="750" height="410" alt="7 Things To Avoid After Applying for a Mortgage! | MyKCM" src="https://files.mykcm.com/2019/03/12112557/20190313-Share-KCM.jpg" /><br /><br />
Congratulations! You’ve found a home to buy and have applied for a mortgage! You are undoubtedly excited about the opportunity to decorate your new home! But before you make any big purchases, move any money around, or make any big-time life changes, consult your loan officer. They will be able to tell you how your decision will impact your home loan.
Below is a list of 7 Things You Shouldn’t Do After Applying for a Mortgage! Some may seem obvious, but some may not!
1. Don’t change jobs or the way you are paid at your job! Your loan officer must be able to track the source and amount of your annual income. If possible, you’ll want to avoid changing from salary to commission or becoming self-employed during this time as well.
2. Don’t deposit cash into your bank accounts. Lenders need to source your money and cash is not really traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.
3. Don’t make any large purchases like a new car or new furniture for your new home. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher debt to income ratios… higher ratios make for riskier loans… and sometimes qualified borrowers no longer qualify.
4. Don’t co-sign other loans for anyone. When you co-sign, you are obligated. As we mentioned, with that obligation comes higher ratios as well. Even if you swear you will not be the one making the payments, your lender will have to count the payment against you.
5. Don’t change bank accounts. Remember, lenders need to source and track assets. That task is significantly easier when there is consistency among your accounts. Before you even transfer money between accounts, talk to your loan officer.
6. Don’t apply for new credit. It doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.
7. Don’t close any credit accounts. Many clients have erroneously believed that having less available credit makes them less risky and more likely to be approved. Wrong. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both those determinants of your score.
Bottom Line
Any blip in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. The best advice is to fully disclose and discuss your plans with your loan officer before you do anything financial in nature. They are there to guide you through the process.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.2019-03-13T07:03:00-07:002019-03-13T07:07:37-07:00First Source Realtytag:firstsourcere.com,2012-09-20:176No Worries… Home Prices Coming in for a SOFT Landing<img width="750" height="410" alt="No Worries… Home Prices Coming in for a SOFT Landing | MyKCM" src="https://files.mykcm.com/2019/02/25080953/Share-KCM6.jpg" /><br /><br />
Home prices have appreciated considerably over the last five years. This has some concerned that we may be in for another dramatic correction. However, recent statistics suggest home values will not crash as they did a decade ago. Instead, this time they will come in for a soft landing.
The previous housing market was fueled by an artificial demand created by mortgage standards that were far too lenient. When this demand was shut off, a flood of inventory came to market. This included heavily discounted distressed properties (foreclosures and short sales).
Today’s market is totally different. Mortgage standards are tighter than they were prior to the last boom and bust. There is no fear that a rush of foreclosures will come to market. The Mortgage Bankers’ Association just <a title="announced" href="https://www.firstsourcere.com/blog/3-reasons-why-we-are-not-heading-toward-another-housing-crash/">announced</a> that foreclosures are lower today than at any time since 1996.
Case Shiller looks at the percentage of appreciation as compared to the same month the year prior. Here is a graph of their findings over the last ten months:
<a href="https://files.mykcm.com/2019/02/26112032/20190228-ENG-MEM.jpeg" target="_blank" rel="noopener noreferrer"><img width="600" height="450" alt="No Worries… Home Prices Coming in for a SOFT Landing | MyKCM" src="https://files.mykcm.com/2019/02/26112032/20190228-ENG-MEM.jpeg" /></a>
As we can see, home price appreciation is softening as more inventory comes to market. This shows that real estate prices are not crashing, but merely returning toward historic appreciation numbers of 3.6% annually.
Bottom Line
Home prices are leveling off. Long term, that is a good thing for the housing market.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-02-28T08:05:00-07:002019-02-28T08:09:53-07:00First Source Realtytag:firstsourcere.com,2012-09-20:1682019 Will Be a Great Year for Buyers AND Sellers<img width="750" height="410" src="https://assets.site-static.com/userfiles/795/image/20190213-KCM-Share.jpg" />
Many homeowners believe that rising<a href="https://www.firstsourcere.com/blog/the-cost-across-time-infographic/"> interest rates</a> and <a title="home prices" href="https://www.firstsourcere.com/blog/what-is-the-cost-of-waiting-until-next-year-to-buy/">home prices</a> have scared away buyers and therefore have not listed their houses for sale. However, the truth is that buyers who were unable to find a home last year are out in force, and there are even more coming!
NerdWallet’s 2018 Home Buyer Report revealed that:
“Approximately one-third (32%) of Americans plan to purchase a home in the next five years. Millennials are most likely to have such a purchase in their five-year plan (49%), versus 35% of Generation X and 17% of baby boomers.”
As we can see, buyers are optimistic! According to the report, here are the top reasons Americans plan to buy:
<a title="2019 Will Be a Great Year for Buyers AND Sellers | MyKCM" class="use_kcm_lightbox" href="https://files.mykcm.com/2019/02/13123535/ENG-MEM.jpg" target="_blank" rel="noopener noreferrer"><img width="600" height="450" class="alignnone wp-image-82442" alt="2019 Will Be a Great Year for Buyers AND Sellers | MyKCM" src="https://files.mykcm.com/2019/02/13123535/ENG-MEM.jpg" /></a>
The most common reason Americans prioritize buying is that they believe it’s a <a title="good investment" href="https://www.mykcm.com/2019/01/03/belief-in-homeownership-as-an-investment-is-far-from-dead/">good investment</a>!
If you’re a homeowner looking to sell, 2019 is the perfect year to put your house on the market. But why?
Buyers want to buy
No competition!
At least 3 of the renowned organizations that report on real estate market trends predict that homeowners are going to wait until 2020 to list their homes, leading to a nice increase in sales (as shown in the graph below).
<a title="2019 Will Be a Great Year for Buyers AND Sellers | MyKCM" class="use_kcm_lightbox" href="https://files.mykcm.com/2019/02/13122546/ENG-MEM2.jpeg" target="_blank" rel="noopener noreferrer"><img width="600" height="450" class="alignnone wp-image-82440" alt="2019 Will Be a Great Year for Buyers AND Sellers | MyKCM" src="https://files.mykcm.com/2019/02/13122546/ENG-MEM2.jpeg" /></a>
Don’t wait for a competitive market; be ahead of the curve and sell your house at the best possible price!
Bottom Line
There are plenty of buyers entering the market! Whether you’re a first-time homebuyer or a current homeowner looking to move-up to your next home, let’s get together to discuss your real estate needs!
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-02-19T08:23:00-07:002019-02-19T08:37:31-07:00First Source Realtytag:firstsourcere.com,2012-09-20:165First Comes Love… Then Comes Mortgage? Couples Lead the Way<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="First Comes Love… Then Comes Mortgage? Couples Lead the Way | MyKCM" src="https://files.mykcm.com/2019/02/08053842/2019-02-14-Share-KCM.jpg" />
According to the National Association of REALTORS most recent Profile of Home Buyers & Sellers, married couples once again dominated the first-time homebuyer statistics in 2018 at 54% of all buyers. It is no surprise that buying a home is more attainable with two incomes to save for down payments and contribute to monthly housing costs.
However, many couples are also deciding to buy a home before spending what would be a down payment on a wedding. Last year, unmarried couples accounted for 16% of all first-time buyers.
If you’re single, don’t fret! Single women made up 18% of first-time buyers in 2018, while single men accounted for 10% of buyers. One recent <a title="article" href="http://www.abc-7.com/story/34440795/single-women-buying-more-homes-than-men" target="_blank" rel="noopener noreferrer">article</a> pointed to a sense of responsibility and commitment that drives many single women to want to own their home, rather than rent.
Here is the breakdown of all first-time homebuyers in 2018 by percentage of all buyers, income, and age:
<a title="First Comes Love… Then Comes Mortgage? Couples Lead the Way | MyKCM" class="use_kcm_lightbox" href="https://files.mykcm.com/2019/02/08053704/2019-02-14-NM-ENG.jpeg" target="_blank" rel="noopener noreferrer"><img width="600" height="450" class="alignnone wp-image-81923" alt="First Comes Love… Then Comes Mortgage? Couples Lead the Way | MyKCM" src="https://files.mykcm.com/2019/02/08053704/2019-02-14-NM-ENG.jpeg" /></a>
Bottom Line
You may not be that much different than those who have already purchased their first homes. Let’s get together to determine if your dream home is already within your grasp!
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-02-14T08:34:00-07:002019-02-14T08:45:58-07:00First Source Realtytag:firstsourcere.com,2012-09-20:156How to Get a Better Perspective on Affordability<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="How to Get a Better Perspective on Affordability | MyKCM" src="https://files.mykcm.com/2019/02/06102954/2019-02-07-Share-KCM.jpg" />
Headlines spotlight the fact that buying a home is less affordable today than it was at any other time in more than a decade. Those headlines are accurate.
Understandably, buying a home is more expensive now than immediately following one of the worst housing crashes in American history. Over the past decade, the market was flooded with distressed properties (foreclosures and short sales) selling at 10-50% discounts. There were so many that this lowered the prices of non-distressed homes in the same neighborhoods. As a result, mortgage rates were kept low to help the economy.
Prices have since recovered. Mortgage rates have increased as the economy has gained strength. This has impacted housing affordability. However, it’s necessary to give historical context to the subject of affordability.
Two weeks ago, CoreLogic reported on what they call the “typical mortgage payment”. As they explain:
“One way to measure the impact of inflation, mortgage rates and home prices on affordability over time is to use what we call the ‘typical mortgage payment.’ It’s a mortgage-rate-adjusted monthly payment based on each month’s U.S. median home sale price. It is calculated using Freddie Mac’s average rate on a 30-year fixed-rate mortgage with a 20 percent down payment…
The typical mortgage payment is a good proxy for affordability because it shows the monthly amount that a borrower would have to qualify for to get a mortgage to buy the median-priced U.S. home…
When adjusted for inflation, the typical mortgage payment puts homebuyers’ current costs in the proper historical context.”
Here is a graph showing the results of CoreLogic’s research:
<img id="image" src="https://files.mykcm.com/2019/02/06103037/2019-02-07-Mem-ENG.jpeg" />
As the graph indicates, the most recent calculation remained 28% below the all-time peak of $1,275 in June 2006. That’s because the average mortgage rate at that time was 6.68%. As seen in the graph, both today’s typical payment and CoreLogic’s projection for the end of the year are less than it was in January 2000.
Bottom Line
Even though home prices are appreciating at a slower rate, home affordability will likely continue to slide. However, this does not mean that buying a house is an unattainable goal in most markets. It is still less expensive today than it was prior to the housing bubble and crash.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-02-07T08:26:00-07:002019-02-07T08:34:48-07:00Robin Frankstag:firstsourcere.com,2012-09-20:151Belief in Homeownership as an Investment is Far from Dead<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Belief in Homeownership as an Investment is Far from Dead | MyKCM" src="https://files.mykcm.com/2019/01/02125142/20180103-Share-STM.jpg" />
Following last year’s real estate market was like riding a rollercoaster. The market started off strong in 2018 and then softened before finishing with a mild flurry. However, one thing that did not waiver was America’s belief that owning a home makes sense from a financial standpoint.
An end-of-the-year survey by the Federal Reserve Bank’s Center for Microeconomic Data revealed that:
“The majority of households continue to view housing as a good financial investment.”
And that percentage has increased over the last three years.
<img id="image" src="https://files.mykcm.com/2019/01/02125200/20180103-STM-ENG.jpeg" />
Bottom Line
Though there is some uncertainty as to how the real estate market will perform over the next twelve months, one thing remains very certain: America’s belief in homeownership.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-02-01T08:12:00-07:002019-02-01T08:15:48-07:00First Source Realtytag:firstsourcere.com,2012-09-20:148Is Student Loan Debt A Threat to Homeownership? No!<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Is Student Loan Debt A Threat to Homeownership? No! | MyKCM" src="https://files.mykcm.com/2019/01/28083112/20190129-Share-KCM.jpg" />
Over the course of the last thirty years, a shift has happened. An entire generation has been raised to believe that a college education is their key to unlocking opportunities that were not available to their parent’s or grandparent’s generations.
Due to this, student loan debt has soared to $1.5 trillion and represents the largest category of debt, surpassing credit card and auto loan debt in 2010 and never looking back. As more and more Americans continue their education amongst rising tuition costs, this number will no doubt increase.
Many housing experts have blamed student loans for a drop in the homeownership rate for young families, and to an extent, they’ve been right. Increased debt at the time of graduation has no doubt limited young people from being able to afford a home at the same rate as their parents or grandparents did at the same age.
In a recent Forbes article, the author explained that “in just the class of 2017, the average student has about $40,000 in debt — almost enough for a 20% down payment on a median-priced home.”
The Federal Reserve set out to determine exactly how much impact student loan debt has had on the homeownership rate of those 18-34 (millennials). Their results found that,
“Every $1,000 in student loan debt delays homeownership by about 2.5 months, but it doesn’t prevent homeownership entirely.
In fact, by the time college grads reach their 30s, those with student loan debt have a homeownership rate nearly identical to those who didn’t take out loans.” (emphasis added)
In the Wall Street Journal’s coverage of the Fed report, they found that recent graduates prioritize paying off their student loans over saving for a down payment, despite their desire to be a homeowner. Many with debt want to “get that monkey off (their) back (before they) make any new investments.”
This has just delayed the wave of young home buyers from hitting the market. But as Danielle Hale, the Chief Economist at realtor.com warns,
“2020 will be peak millennial, the year when the largest number of millennials will turn 30.”
By age 30, those who attained a bachelor’s degree right after high school will be one or two years away from paying off their loans and will have been in their career long enough to earn a higher salary.
In the long run, research shows that attaining a bachelor’s degree or more actually increases the chances that someone will become a homeowner.
Bottom Line
If you are one of the many millennials who has prioritized paying down your student loans over saving for a down payment, you’re not alone. Even if you are a couple years away from paying off your loans, let’s get together to help you determine if waiting really is the best decision for you!
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-01-30T08:16:00-07:002019-01-30T08:25:55-07:00First Source Realtytag:firstsourcere.com,2012-09-20:141Do You Prefer the Charm of an Existing Home?<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Do You Prefer the Charm of an Existing Home? | MyKCM" src="https://files.mykcm.com/2019/01/17110530/20190122-Share-KCM.jpg" />
When homebuyers begin their research, they want to see all their available options! In many cases, they will include both new construction and existing homes in their search; but is a new construction home really the house of their dreams?
According to a recent <a title="survey" href="https://wp.zillowstatic.com/28/ZG-NC-Consumer-Housing-Trends-Report-2018-b7e34b-2dfc3a.pdf" target="_blank" rel="noopener noreferrer">survey</a> by Zillow, of the 38% of total buyers that added new construction to their list, only 11% ultimately purchased a newly constructed home!
They added that 71% of these buyers are repeat buyers who are financially secure, with 45% using the <a title="money" href="https://www.firstsourcere.com/blog/25-of-homes-with-a-mortgage-are-now-equity-rich/%20" target="_blank">money</a> from the sale of their previous homes to make a purchase.
Below are some reasons why buyers are interested in purchasing a new build:
Everything in the house is new/never used (49%)
To be close to family (41%)
The home is the best value for their money (37%)
Appealing home features (34%)
Desirable location (34%)
So, then why did most of the buyers surveyed choose not to purchase a new home?
1) Location
Buyers could not find new construction in the desired neighborhood, and some felt that new construction is not established (e.g., landscaping, community, neighbors).
2) Timing
Buyers face the end of a lease or sale of their previous property and could not wait for a house to be built.
3) Price
Some buyers felt that new construction base prices were deceiving. Adding upgrades and HOA fees no longer made the home fit in their price range.
4) Appeal
For some buyers, new construction homes are too “cookie cutter,” and models are limited. Others feel that the charm and uniqueness of an existing house trumps one that’s never been lived in.
Bottom Line
Not all buyers are looking for a newly built house! There are many buyers looking for “the charm and uniqueness” of an existing home. If you are considering selling your house, don’t wait! Let’s get together to come up with a plan to feature the charming details of your house to future buyers.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.2019-01-23T08:26:00-07:002019-01-23T08:39:17-07:00First Source Realtytag:firstsourcere.com,2012-09-20:137What is the Cost of Waiting Until Next Year to Buy?<img width="1046" height="1354" class="attachment-entry size-entry wp-post-image" alt="What is the Cost of Waiting Until Next Year to Buy? [INFOGRAPHIC] | MyKCM" src="https://files.mykcm.com/2019/01/17092430/Cost-of-Waiting-MEM-ENG-1046x1354.jpg" />
Some Highlights:
The cost of waiting to buy is defined as the additional funds it would take to buy a home if prices & interest rates were to increase over a period of time.
Freddie Mac predicts interest rates to rise to 5.1% by the end of 2019.
CoreLogic predicts home prices to appreciate by 4.8% over the next 12 months.
If you are ready and willing to buy your dream home, find out if you are able to!
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein. 2019-01-18T13:26:00-07:002019-01-18T13:43:52-07:00First Source Realtytag:firstsourcere.com,2012-09-20:135Last Chance! Homes are a Bargain Compared to Historic Norms<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Last Chance! Homes are a Bargain Compared to Historic Norms | MyKCM" src="https://files.mykcm.com/2019/01/14111044/20190117-Share-KCM.jpg" />
A loaf of bread used to be a nickel. A movie ticket was a dime. Not anymore. Houses were also much less expensive than they are now. Inflation raised the price of all three of those items, along with the price of almost every other item we purchase.
The reason we can still afford to consume is that our wages have also risen over time. The better measure of whether an item is more expensive than it was before is what percentage of our income it takes to purchase that item today compared to earlier. Let’s look at purchasing a home.
The COST of a home is determined by three major components: price, mortgage interest rate, and wages. The big question? Are we paying a greater percentage of our income toward our monthly mortgage payment today than previous generations? Surprisingly, the answer is no.
Historically, Americans have paid just over 21% of their income toward their monthly mortgage payment.
Though home <a href="https://www.firstsourcere.com/blog/the-best-time-to-list-your-house-today/">prices</a> are higher than before, wages have risen as well. And, the most important component in the cost equation – the mortgage rate – is dramatically lower than it was in the 1970s, 1980s, 1990s, and 2000s.
Today, according to the latest Home Affordability Index just released by the National Association of Realtors, Americans are paying 17.4% of their income toward their mortgage payment. That is much lower than the 21% average previous generations have paid.
<a title="Last Chance! Homes are a Bargain Compared to Historic Norms | MyKCM" class="use_kcm_lightbox" href="https://files.mykcm.com/2019/01/14111015/20190117-MEM-ENG.jpeg" target="_blank" rel="noopener noreferrer"><img width="600" height="450" class="alignnone wp-image-81433" alt="Last Chance! Homes are a Bargain Compared to Historic Norms | MyKCM" src="https://files.mykcm.com/2019/01/14111015/20190117-MEM-ENG.jpeg" /></a>
Bottom Line
The cost of purchasing a home today is a bargain compared to previous generations when we look at it from a percentage of income basis. However, with mortgage rates expected to increase and home prices continuing to appreciate, that will not always be the case. Whether you are buying your first home or looking to move-up to a more expensive home, purchasing sooner rather than later probably makes sense.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2019-01-17T09:00:00-07:002019-01-17T09:09:57-07:00First Source Realtytag:firstsourcere.com,2012-09-20:131Buying a Home Young is the Key to Building Wealth<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Buying a Home Young is the Key to Building Wealth | MyKCM" src="https://files.mykcm.com/2019/01/11101102/20190115-KCM-Share.jpg" />
Homeowners who purchase their homes before the age of 35 are better prepared for retirement at age 60, according to a new <a title="Urban Institute" href="https://www.urban.org/urban-wire/buy-young-earn-more-buying-house-age-35-gives-homeowners-more-bang-their-buck" target="_blank" rel="noopener noreferrer">Urban Institute</a> study. The organization surveyed adults who turned 60 or 61 between 2003 and 2015 for their data set.
“Today’s older adults became homeowners at a younger age than today’s young adults. Half the older adults in our sample bought their first house when they were between 25 and 34 years old, and 27 percent bought their first home before age 25.”
The full breakdown is in the chart below:
<a title="Buying a Home Young is the Key to Building Wealth | MyKCM" class="use_kcm_lightbox" href="https://files.mykcm.com/2019/01/11101008/20190115-MEM-ENG.jpeg" target="_blank" rel="noopener noreferrer"><img width="600" height="338" class="alignnone wp-image-81426" alt="Buying a Home Young is the Key to Building Wealth | MyKCM" src="https://files.mykcm.com/2019/01/11101008/20190115-MEM-ENG.jpeg" /></a>
The study goes on to show the impact of purchasing a home at an early age. Those who purchased their first homes when they were younger than 25 had an average of $10,000 left on their mortgage at age 60. The 50% of buyers who purchased in their mid-twenties and early-30s had close to $50,000 left, but traditionally had purchased more expensive homes.
<a title="Buying a Home Young is the Key to Building Wealth | MyKCM" class="use_kcm_lightbox" href="https://files.mykcm.com/2019/01/11101035/20190115-MEM-ENG2.jpeg" target="_blank" rel="noopener noreferrer"><img width="600" height="338" class="alignnone wp-image-81427" alt="Buying a Home Young is the Key to Building Wealth | MyKCM" src="https://files.mykcm.com/2019/01/11101035/20190115-MEM-ENG2.jpeg" /></a>
Many housing experts are concerned that the homeownership rate amongst millennials, those 18-34, is much lower than previous generations in the same age range. The study results gave a great reason why this generation should consider buying instead of signing a renewal on their lease:
“As people age into retirement, they rely more heavily on their wealth rather than their income to support their lifestyles. Today’s young adults are failing to build housing wealth, the largest single source of wealth, at the same rate as previous generations.
While people make the choice to own or rent that suits them at a given point, maybe more young adults should take into account the long-term consequences of renting when homeownership is an option.”
Bottom Line
If you are one of the many young people debating whether buying a home this year is right for you, let’s get together to discuss your options!
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein. 2019-01-15T08:08:00-07:002019-01-15T08:12:47-07:00First Source Realtytag:firstsourcere.com,2012-09-20:1305 Reasons to Hire a Real Estate Professional Before Entering the Market!Whether you are <a title="buying" href="https://www.mykcm.com/2018/01/23/why-you-need-a-professional-on-your-team-when-buying-a-home/">buying</a> or <a title="selling" href="https://www.mykcm.com/2018/04/24/thinking-of-selling-your-home-why-you-need-a-pro-in-your-corner/">selling</a> a home, it can be quite the adventure. In this world of instant gratification and internet searches, many sellers think that they can ‘For Sale by Owner’ or ‘<a title="FSBO" href="https://www.mykcm.com/2018/05/24/selling-your-house-on-your-own-could-cost-you/">FSBO</a>,’ but it’s not as easy as it may seem. That’s why you need an experienced real estate professional to guide you on the path to achieving your ultimate goal!
The 5 reasons you need a real estate professional in your corner haven’t changed but have rather been strengthened by the projections of higher mortgage interest rates and home prices as the market continues to pick up steam.
1. What do you do with all this paperwork?
Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true real estate professional is an expert in his or her market and can guide you through the stacks of paperwork necessary to make your dream a reality.
2. So you found your dream house, now what?
There are over <a title="230 possible steps" href="https://www.flkeysboardofrealtors.com/wp-content/uploads/2014/12/The_Critical_Role_of_the_REA_2.pdf" target="_blank" rel="noopener noreferrer">230 possible steps</a> that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions are, to ensure you achieve your dream?
3. Are you a good negotiator?
So maybe you’re not convinced that you need an agent to sell your home. After looking at the list of parties that you will need to be prepared to negotiate with, you’ll soon realize the value in selecting a real estate professional. From the buyers (who want the best deals possible), to the home inspection companies, all the way to the appraisers, there are at least 11 different people who you will need to be knowledgeable of, and answer to, during the process.
4. What is the home you’re buying/selling really worth?
It is important for your home to be priced correctly from the start in order to attract the right buyers and shorten the amount of time that it’s on the market. You need someone who is not emotionally connected to your home to give you its true value. According to a recent <a title="article" href="https://magazine.realtor/daily-news/2018/07/16/the-cost-of-selling-without-a-real-estate-agent" target="_blank" rel="noopener noreferrer">article</a> by the National Association of Realtors, FSBOs achieve prices significantly lower than the prices of similar properties sold by real estate agents:
“FSBOs earn an average of $60,000 to $90,000 less on the sale of their home than sellers who work with a real estate agent.”
Get the most out of your transaction by hiring a professional!
5. Do you know what’s really going on in the market?
There is so much information out there on the news and on the internet about home sales, prices, and mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively and correctly price your home at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a lowball offer?
Dave Ramsey, the financial guru, advises:
“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”
Hiring an agent who has his or her finger on the pulse of the market will make your buying or selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.
Bottom Line
You wouldn’t replace the engine in your car without a trusted mechanic, so why would you make one of the most important financial decisions of your life without hiring a real estate professional?
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein. 2019-01-14T08:53:00-07:002019-01-14T08:58:34-07:00First Source Realtytag:firstsourcere.com,2012-09-20:128Buying a House This Year? This Should Be Your 1st Step!<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Buying a House This Year? This Should Be Your 1st Step! | MyKCM" src="https://files.mykcm.com/2019/01/08065801/20190114-Share-KCM.jpg" />
In many markets across the country, the number of buyers searching for their dream homes <a title="outnumbers" href="https://www.firstsourcere.com/blog/how-does-the-supply-of-homes-for-sale-impact-buyer-demand/">out numbers</a> the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show that you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.
Even if you are not in an incredibly competitive market, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach.
Freddie Mac lays out the advantages of pre-approval in the ‘<a title="My Home" href="http://myhome.freddiemac.com/buy/get-pre-approved.html" target="_blank" rel="noopener noreferrer">My Home</a>’ section of their website:
“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”
One of the <a title="many advantages " href="https://www.mykcm.com/2018/08/07/5-reasons-to-hire-a-real-estate-professional-before-entering-the-market/">many advantages </a>of working with a local real estate professional is that many have relationships with lenders who will be able to help you through this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”
Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:
Capacity: Your current and future ability to make your payments
Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
Collateral: The home, or type of home, that you would like to purchase
Credit: Your history of paying bills and other debts on time
Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.
Bottom Line
Many potential homebuyers overestimate the down payment and credit scores necessary to qualify for a mortgage. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so today.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein. 2019-01-14T08:43:00-07:002019-01-14T08:52:43-07:00First Source Realtytag:firstsourcere.com,2012-09-20:124Buying A Vacation Property? Now Is A Good Time!<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Buying A Vacation Property? Now Is A Good Time! | MyKCM" src="https://files.mykcm.com/2019/01/07093051/20190108-Share-STM.jpg" />
Every year around this time, many homeowners begin the process of preparing their homes in case of extreme winter weather. Some others skip winter all together by escaping to their vacation homes in a warmer climate.
For those homeowners staying at their first residence, <a title="AccuWeather" href="https://www.accuweather.com/en/weather-news/is-a-plunge-polar-vortex-in-store-for-northeastern-us-this-winter/70007048" target="_blank" rel="noopener noreferrer">AccuWeather</a> warns:
“The late-week cold shot should fade next week, but this is a warning shot for winter’s return late in the month and early February.”
Given this, it’s time to go and stock up on winter weather supplies! However, if you’re tired of shoveling snow and dealing with the cold weather, maybe it’s time to consider obtaining a vacation home!
According to the <a title="Investment & Vacation Home Buyers 2018 Report" class="use_kcm_lightbox" href="https://www.nar.realtor/sites/default/files/2018-investment-and-vacation-home-buyers-infographic-07-02-2018-2400w-4194h.png" target="_blank" rel="noopener noreferrer">Investment & Vacation Home Buyers 2018 Report</a> by NAR:
“72% of vacation property owners and 71% of investment property owners believe now is a good time to buy.”
It’s time to take advantage of the equity in your home. As the latest <a title="Equity Report" href="https://www.attomdata.com/news/market-trends/home-sales-prices/home-equity-underwater-report-q3-2018/" target="_blank" rel="noopener noreferrer">Equity Report</a> from ATTOM Data Solutions stated:
“Nearly 14.5 million U.S. properties (are) equity rich — where the combined estimated amount of loans secured by the property was 50 percent or less of the property’s estimated market value — up by more than 433,000 from a year ago to a new high as far back as data is available, Q4 2013.
The 14.5 million equity rich properties in Q3 2018 represented 25.7 percent of all properties with a mortgage.”
This means that over a quarter of Americans who have a mortgage would be able to use some of their home equity to make a significant down payment toward a vacation home, and many are doing just that! According to the same report by NAR:
“33% of vacation buyers purchased in a beach area, 21% purchased on a lakefront, and 15% purchased a vacation home in the country.”
Many homeowners who are close to retirement will use some of their equity to purchase vacation homes, which may eventually become their permanent homes post-retirement!
Bottom Line
If you are a homeowner looking to take advantage of your home equity by investing in a vacation home, let’s get together to discuss your options!
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein. 2019-01-08T13:11:00-07:002019-01-08T13:24:45-07:00Robin Frankstag:firstsourcere.com,2012-09-20:118Give Us Call Today!
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2018-12-13T14:13:00-07:002018-12-13T14:31:57-07:00First Source Realty