Want to speed up closings? 6 tips

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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,” realtor.com® (Dec. 12, 2016)

© Copyright 2016 INFORMATION, INC. Bethesda, MD (301) 215-4688

Whether You Rent or Buy: Either Way You’re Paying a Mortgage

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There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

Christina Boyle, Senior Vice President and Head of Single-Family Sales & Relationship Management at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

Bottom Line

This holiday season, why not give yourself the gift of homeownership? Lock in your housing costs for the next 30 years and guarantee you are the one building wealth.

4 Reasons to Buy Your Dream Home This Winter

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As the temperature in many areas of the country starts to cool down, you might think that the housing market will do the same. This couldn’t be further from the truth! Here are 4 reasons you should consider buying your dream home this winter instead of waiting for spring!

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.3% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.2% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates are Projected to Increase

Your monthly housing cost is as much related to the price you pay for your home as it is to the mortgage interest rate you secure.

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage are currently at 4.08%. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way You’re Paying a Mortgage

There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

The ‘Great News’ About Rising Prices

Recently there has been a lot of talk about home prices and if they are accelerating too quickly. In some areas of the country, seller supply (homes for sale) cannot keep up with the number of buyers out looking for a home, which has caused prices to rise.
The great news about rising prices, however, is that according to CoreLogic’s latest US Economic Outlook, the average American household gained over $11,000 in equity over the course of the last year, largely due to home value increases.
The map below was created from CoreLogic’s report and shows the average equity gain per mortgaged home from June 2015 to June 2016 (the latest data available).


For those that are worried that we are doomed to repeat 2006 all over again, it is important to note that homeowners are investing their new found equity in their homes and themselves, not in depreciating assets.
The added equity is helping families put their children through college, and even invest in starting small businesses, allowing them to pay of their mortgage sooner or move up to the home that will better suit their needs now.
Bottom Line
CoreLogic predicts that home prices will appreciate by another 5% by this time next year. If you are a homeowner looking to take advantage of your home equity by moving up to your dream home, let’s get together to discuss your options!

3 Questions to Ask Before Buying Your Dream Home

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If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family will have your best interest at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.

Ask yourself the following 3 questions to help determine if now is actually a good time for you to buy in today’s market.

1. Why am I buying a home in the first place?

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.

For example, a recent survey by Braun showed that over 75% of parents say “their child’s education is an important part of the search for a new home.”

This survey supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the four major reasons people buy a home have nothing to do with money. They are:

  • A good place to raise children and for them to get a good education
  • A place where you and your family feel safe
  • More space for you and your family
  • Control of that space

What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

According to the latest Home Price Index from CoreLogic, home values are projected to increase by 5.3% over the next 12 months.

What does that mean to you?

Simply put, if you are planning on buying a home that costs $250,000 today, that same home will cost you an additional $13,250 if you wait until next year. Your down payment will need to be higher as well to account for the higher home price.

3. Where are mortgage interest rates headed?

A buyer must be concerned about more than just prices. The ‘long term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.

The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac have all projected that mortgage interest rates will increase over the next twelve months as you can see in the chart below:

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Bottom Line

Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions will help you make that decision then call me if you are ready to buy!

4 Reasons to Buy This Fall

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It’s that time of year; the seasons are changing and with them come thoughts of the upcoming holidays, family get-togethers, and planning for a new year. Those who are on the fence about whether or not now is the right time to buy don’t have to look much further to find four great reasons to consider buying a home now, instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.4% over the next year. The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects home values to appreciate by more than 3.5% a year for the next 5 years.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Remain at Historic Lows

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained at or below 3.5% for 13 consecutive weeks. The Mortgage Bankers Association, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time next year.

Any increase in rates will impact YOUR monthly mortgage payment. A year from now, the percentage of your income that you spend on housing will increase substantially if you choose to wait.

3. Either Way You Are Paying a Mortgage

Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage – either your mortgage or your landlord’s. As a paper from the Joint Center for Housing Studies at Harvard Universityexplains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does–as Americans intuit–end up making more financial sense than renting.”

4. It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings. Call me at 407-925-7721 Cell or Text!

Doors

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Doors say more about our home than you might think. A pretty front door is like lipstick on a woman. It’s just the right touch to finish off your “look.”

These are three doors on a country stone house that I saw in North Carolina. Don’t know why they installed three doors right next to each other but they must have a strong desire to welcome a lot of guests to this home. It’s rather charming.

Something tells me whether you choose door number 1, 2, or 3…you are going to be glad you knocked.