Buying A Home Is More Affordable Than Renting In 54% Of US Counties


According to ATTOM Data Solutions’ 2018 Rental Affordability Report, “buying a median-priced home is more affordable than renting a three-bedroom property in 240 of 447 [or 54% of] U.S. counties analyzed for the report.”

For the report, ATTOM Data Solutions compared recently released fair market rent data from the Department of Housing and Urban Development with reported income amounts from the Department of Labor and Statistics to determine the percentage of income that a family would have to spend on their monthly housing cost (rent or mortgage payments).

Daren Blomquist, Senior Vice President of ATTOM Data Solutions had this to say:

“Although buying is still more affordable than renting in the majority of U.S. housing markets, the majority is shrinking as home price appreciation continues to outpace rental growth in most areas.”

However, the report also shows that the average fair market rent rose faster than average weekly wages in 60% of the counties analyzed in the report (266 of 447 counties). With rents rising, many renters should consider buying a home soon.

Bottom Line

Rents will continue to rise, and mortgage interest rates are still at historic lows. Before you sign or renew your next lease, let’s get together to help you determine if you are able to buy a home of your own and lock in your monthly housing expense.

Don’t Let Fear Stop You from Applying for a Mortgage


A considerable number of potential buyers shy away from jumping into the real estate market due to their uncertainty about the buying process. A specific cause for concern tends to be mortgage qualification.

For many, the mortgage process can be scary, but it doesn’t have to be!

In order to qualify in today’s market, you’ll need to have saved for a down payment (73% of all buyers made a down payment of less than 20%, with many buyers putting down 3% or less), a stable income and good credit history.

Throughout the entire home buying process, you will interact with many different professionals, all of whom perform necessary roles. These professionals are also valuable resources for you.

Once you’re ready to apply, here are 5 easy steps that Freddie Mac suggests you follow:

  1. Find out your current credit history & score – even if you don’t have perfect credit, you may already qualify for a loan. The average FICO® Score of all closed loans in September was 724, according to Ellie Mae.
  2. Start gathering all your documentation – income verification (such as W-2 forms or tax returns), credit history, and assets (such as bank statements to verify your savings).
  3. Contact a professional – your real estate agent will be able to recommend a loan officer that can help you develop a spending plan, as well as determine how much home you can afford.
  4. Consult with your lender – he or she will review your income, expenses, and financial goals to determine the type and amount of mortgage you qualify for.
  5. Talk to your lender about pre-approval – a pre-approval letter provides an estimate of what you might be able to borrow (provided your financial status doesn’t change), and demonstrates to home sellers that you are serious about buying!

Bottom Line

Do your research, reach out to professionals, stick to your budget, and be sure that you are ready to take on the financial responsibilities of becoming a homeowner.

2 Myths That May Be Holding Back Buyers


Fannie Mae’s article, “What Consumers (Don’t) Know About Mortgage Qualification Criteria,revealed that “only 5 to 16 percent of respondents know the correct ranges for key mortgage qualification criteria.

Myth #1: “I Need a 20% Down Payment”

Fannie Mae’s survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 76% of Americans either don’t know (40%) or are misinformed (36%) about the minimum down payment required.

Many believe that they need at least 20% down to buy their dream home, but many programs actually let buyers put down as little as 3%.

Below are the results of a Digital Risk survey of Millennials who recently purchased a home.

2 Myths That May Be Holding Back Buyers | MyKCM

As you can see, 64.2% were able to purchase their home by putting down less than 20%, with 43.8% putting down less than 10%!

Myth #2: “I need a 780 FICO Score or Higher to Buy”

The survey revealed that 59% of Americans either don’t know (54%) or are misinformed (5%) about what FICO score is necessary to qualify.

Many Americans believe a ‘good’ credit score is 780 or higher.

To help debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans. As you can see below, 54.7% of approved mortgages had a credit score of 600-749.

2 Myths That May Be Holding Back Buyers | MyKCM

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream home may already be within your reach. Call me! 407-925-7721 Cell or Text

Student Loans = Higher Credit Scores


According to a recent analysis by CoreLogic, Millennial renters (aged 20-34) who have student loan debt also have higher credit scores than those who do not have student loans.

This may come as a surprise, as there is so much talk about student loans burdening Millennials and holding them back from many milestones that previous generations have been able to achieve (i.e. homeownership, investing for retirement).

CoreLogic used the information provided on rental applications and the applicants’ credit history from credit bureaus to determine if there was a correlation between student loan debt and credit scores.

The analysis concluded that:

“Student loan debt did not prevent millennials from access to credit even though it may delay their homebuying decisions.”

In fact, those with a higher amount of debt actually had higher credit scores.

“Renters with student loan debt have higher average credit scores than those without; and those with higher debt amounts have higher average credit scores than those with lower student loan debt amounts.”

Bottom Line

Millennials are on pace to become the most educated generation in our nation’s history, with that comes a pretty big bill for education. But there is a light at the end of the tunnel:

“Despite the fact that student loan debt has grown into the nation’s second largest consumer debt, following mortgage, and has created a significant financial burden for millennials, it does not appear to prevent millennials from accessing credit.”

Want to speed up closings? 6 tips


CHICAGO – Dec. 15, 2016 – Homebuyers anxious to move into their new house in a hurry may be discouraged to discover that the average time from contract to close is 50 days, according to Ellie Mae. But Realtors can help clients shorten that timeframe by encouraging a more focused home search and being proactive about paperwork, among other things.

An organized buying process is particularly important for relocation clients and customers who hope to sell one property before buying another. In both cases, buyers tend to be working against tight moving deadlines.

Tips to help buyers complete a transaction faster:

  • Get pre-approved, not just pre-qualified. A pre-qualification is just a quick conversation with a lender who may have only glanced at the borrower’s credit score. A pre-approval is a more thorough review of their credit history. A pre-approval “makes your offer look stronger,” says Adriana Mollica, a sales associate with Teles Properties in Beverly Hills, Calif. “It also minimizes any surprises that may delay or force a cancelation during escrow.”
  • Narrow down options. Buyers with have a long wish list of desired home features are rarely satisfied by the houses they see. Realtors should have a heart-to-heart talk if these buyers also hope to move in quickly and discuss whether their desires are plausible for the area and price range they’re searching in, says Michael Shaffer, broker-associate at LIV Sotheby’s International Realty in Greenwood Village, Colo. Buyers should narrow their wish list down to the top must-have features and look at only at homes that fit the criteria.
  • Look at homes that have lingered on the market. Homeowners who haven’t sold quickly enough are often the most motivated to negotiate a deal. Buyers should understand the leverage they have when making an offer on a home that has been on the market for a long time, but remember that “a long time” means different things in different various areas. “In some markets, that may be a week or two,” Shaffer says. “In others, it could be a year or more.”
  • Don’t make lowball offers. A strong offer doesn’t have to meet the full list price – but it may mean vowing to make a larger downpayment, offering up more earnest money or accepting an early closing date. Sellers who have a sense of commitment from a buyer may be more likely to accept an offer, particularly as the end of the year nears.
  • Waive contingencies – maybe. Contingency clauses notoriously spark delays, but buyers should weigh whether to give them up. Some contingencies may be worth fighting for. Clients shouldn’t suffer from buyer’s remorse later or land in financial trouble because they waived contingencies.
  • Put paperwork in order. Buyers should already have at least three months of bank statements, pay stubs and letters of explanation for any unusual expenses or financial gifts that are being applied toward a downpayment. Even with a pre-approval, buyers will need paperwork to finalize the transaction, and having it ready upfront could save time. “In most cases, things get held up because paperwork and information isn’t readily available,” says Raena Casteel of the Casteel Little Real Estate Group in Tucson, Ariz.

Source: “Got the Need for Speed? 10 Timely Tricks for Buying a Home in a Hurry,”® (Dec. 12, 2016)

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