In a Hurry to Buy a Home? Speed Your Mortgage Approval up by Following This Checklist

Have you finally found your dream home after months of searching, only to discover that the seller has received other offers? Few circumstances can raise your stress level as much as finding yourself in a bidding war against another buyer. However, being unprepared by not having your finances in order can make the situation even worse. Let's take a quick look at a few ways that you can speed up your mortgage approval if you are in a hurry to buy your next home.

Pull Your Credit Report ASAP

The first step you will want to do is check your credit report so you have an idea what your mortgage lender will be seeing. You can get a free copy from the major credit reporting agencies up to once per year, so take advantage. There are scams out there, so be sure to only request a report from a government-approved credit agency.

Get All Of Your Paperwork Ready Before You Go In

You will want to gather up as much financial documentation as you can before heading in to meet with your mortgage advisor. Pay stubs, tax forms, and bank statements are all going to be required to prove that you are accurately reporting your current financial situation. You will also want to be able to provide reasons for any substantial loans or other transactions that have taken place in the past couple of years.

Share It All And Keep No Secrets

If you want your mortgage approval to come back quickly, it's best to be truthful and hold nothing back during the application process. If you lie or try to gloss over areas that you feel are a bit negative, it can end up delaying your approval. Be straight with your advisor and don't keep any secrets from them.

Work With A Professional Team

Last but not least, if you want the fastest possible mortgage approval you will want to work with a professional team. An experienced mortgage advisor knows the ins-and-outs of the mortgage marketplace. They know which lenders will be able to process quickly and which tend to be on the slower side. If you try to borrow a mortgage from a bank or large lender, you are tied into their process which may not be as quick as you would like.

When you're ready to buy a home, give us a call. Our real estate team is happy to help you find your dream home, no matter how much of a hurry you might be in. We look forward to assisting you!

Down Payments 101: Is It Worth It to Put More Than 20 Percent Down?

Are you thinking of buying a new home this spring or summer? If so, you're not alone. Many thousands of individuals and families alike will become homeowners this year. Whether you're a first-time buyer or a seasoned veteran of the housing market, you probably know there are significant choices to make. One of the big decisions you will have to ponder is how much you want to invest in your down payment.

With that in mind, let's try to answer the question of whether or not it is worth it to put more than 20 percent of the home's price in your down payment.

Ask Yourself: How Liquid Are You?

Before you can decide how much to put down, you first need to determine how liquid your finances are. That is, how much cash do you have access to? For example, if you are considering a $300,000 home, a 20 percent down payment is $60,000. If you have more than $60,000, fantastic. However, if you have less than that, you might have to do a bit of work to save up the remainder.

Even if you do have enough available cash now, you won't have access to it once you take possession of the home. It is important to leave yourself with some cash in case of emergencies or for other uses.

Higher Down Payment, Lower Interest Rate

If you do choose to invest more than 20 percent in your down payment, it's possible that you will gain access to a lower interest rate for your mortgage. Many lenders look favorably on homebuyers that are investing more of their own money and borrowing less. Be sure to check with your mortgage advisor to find out if you qualify for lower rates.

Lower Monthly Payments Await

Finally, choosing a down payment higher than 20 percent means that you will have lower monthly mortgage payments in the future. You are borrowing less so you will owe less. This can provide a nice boost to your monthly budget moving forward as you will have more free cash flow each month.

Try to keep in mind that there is no perfect answer to the question of how big your down payment should be. Choosing the best course of action means taking a good, long look at your current financial situation and deciding what your goals are. When you're ready to discuss buying a new home contact us. Our professional real estate team is happy to share our experience!

What's Ahead For Mortgage Rates This Week - January 29, 2018

Last week's economic news included releases on new and existing home sales along with weekly readings on mortgage rates and first-time jobless claims.

Home Sales Fall Due to Slim Supply of Home

December sales of previously-owned homes dipped to an 18-year low with a reading of 5.57 million sales on a seasonally-adjusted annual basis. Pre-owned home sales were expected to reach 5.73 million homes based on November's downwardly- revised reading of 5.78 million sales. December sales were 3.6 percent lower month-to-month, but were 1.10 percent higher year-over-year.

Analysts credited the shortage of sales to tight inventories of homes for sale. Low inventories of homes for sale have worsened, a situation that sidelines would-be buyers due to the slim selection of homes, rapidly rising prices and buyer competition.

Lawrence Yun, Chief Economist of the National Association of Realtors, said that December sales were lower in all four regions tracked by his organization. The Northeast had 7.50 percent fewer sales; The Midwestern region has 6.30 percent fewer sales in December and the South and West had 1.70 percent and 1.60 percent fewer sales.

Available homes reached a 3.20-month supply; the National Association of Realtors typically views a six-month supply of available homes as average. The national median home price was $246,800 in December and was 5.80 percent higher year-over-year.

Sales of new homes were also significantly lower in December, at an annual rate of 625,000 sales. Analysts expected 679,000 sales and November's reading showed a sales pace of 689,000 sales.

New Home Sales Fall in December

Sales of new homes were lower in December but were strong overall for 2017. The Commerce Department reported 625,000 sales of new homes for December as compared to expectations of 680,000 sales and November's downwardly revised reading of 689,000 sales of new homes.

The annual sales pace of new homes was 9.30 percent lower in December than in November, but the sales price of new homes increased 14.10 percent year-over-year. The median price of a new home was $335,400, which was 2.50 percent higher year over year. A 5.6 month supply of new homes for sale reflected healthy market conditions for new homes.

Mortgage Rate, New Jobless Claims Higher

Mortgage rates rose for the third consecutive week with the average rate for a 30-year fixed rate mortgage 11 basis points higher at 4.15 percent; the average rate for a 15-year fixed rate mortgage was 3.62 percent and was 13 basis points higher. 5/1 adjustable rate mortgages averaged 3.52 percent and rose by six basis points. Discount points averaged 0.50 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages. Higher mortgage rates were attributed to an increase in the 10-year Treasury yield, which was at its highest rate since 2014.

First-time jobless claims rose last week after reaching a 45-year low the previous week. 233,000 new claims were filed last week; analysts expected a reading of 240,000 new claims filed against the previous week's reading of 216,000 new jobless claims filed. Bad weather, two holidays in January and seasonal layoffs at the end of the holiday shopping season contributed to the increase in new jobless claims.

What's Ahead

This week's scheduled economic reports include readings from Case-Shiller Home Price Indexes, homeownership rates, and inflation. The Bureau of Labor Statistics will release monthly reports on private and public-sector jobs and the national unemployment rate. Weekly readings on mortgage rates and first-time jobless claims will also be released.

Spring Is Coming: Get a Jump on Spring Cleaning and Breathe New Life into Your Tired Spaces

Spring is almost here – and with it, the need to clean out the clutter and freshen up your home. Let's explore a few tips that will help you to get a jump on your spring cleaning so that you can get outside and enjoy the nice weather later.

Need It? No? It's Got To Go!

Do you consider yourself a bit of a 'hoarder'? Is there furniture, appliances and other items in your home that have been collecting dust since the '90s? If so, it is time to minimalize your lifestyle. A great rule of thumb is the one in bold above – if you don't need it, it's time to get rid of it. Consider listing anything you don't need up for sale on a local resale marketplace as you may find an interested buyer willing to give your old stuff a new home. Once you have the clutter kicked out, the actual cleaning can begin.

Your Garage Is Not A Storage Locker

If your garage is so full of miscellaneous junk that you can barely get your car door open, it's time for a thorough cleaning. Again, the first mission is to get all of the stuff you don't need either thrown out or otherwise disposed of.

Letting go of your old possessions can be tough, but you will be amazed at how much space you have once it's all gone. And that space can be put to better use – once it's cleaned.

Consider Hiring Help For The Deep Clean

Finally, don't be afraid to enlist professional help if you are feeling overwhelmed. Having a couple of cleaners come into your home for a few hours is a cost-effective way to speed up the spring cleaning process. Note that it's best to have cleaners join you after the clutter has been removed, so they aren't wasting their time trying to move old furniture and other items you are going to dispose of anyway.

Unless you absolutely love washing walls and cleaning out closets, spring cleaning is rarely fun. However, it is necessary to ensure that your home stays in tip-top condition. If you have decided that you are in need of more space, or are looking to downsize your home, contact us today. Our friendly team of real estate professionals is happy to show you some beautiful options that will perfectly suit your needs.

Curious About Homeowners' Association (HOA) Fees? Here's What You Need to Know

If you are thinking of buying a condominium or a home that is part of a planned community, you have likely come across the term "homeowners' association" or HOA. In short, the HOA is a coalition of local homeowners who have banded together to manage the needs of the local community. Let's explore the concept of the homeowners' association, why they charge fees and what you can expect from your HOA if you buy a home that is part of one

HOA Fees Are Meant To Make Things Easier

HOA fees are meant to make your life easier. Common sense dictates that all homeowners won't be able to commit to investing some of their time in community upkeep. So the HOA charges a monthly fee to everyone to cover the costs of keeping everything in order. Of course, some HOAs can make mistakes or foolish investments that don't benefit all equally. But most are well-intended and do positive work.

What Do HOA Fees Cover?

Your HOA fees will be used to pay for needs that benefit all homeowners' in the community. If you live in a building, this will be everything from elevator maintenance to keeping the doors in good order. If you live in a townhouse complex or planned community, this includes landscaping, gardening, road maintenance and more. As long as your HOA leaders are doing their job, they will use fees to maintain and improve the community for everyone.

Some Pros And Cons Of HOA Fees

The main benefit of paying HOA fees is that you are offloading your share of the responsibility for building or community upkeep. In essence, you are trading a monthly payment so that you don't have to vacuum the common areas, change the light bulbs or worry about repairing the gate when it breaks. The main downside to paying HOA fees is that you only have a single vote as to how they are spent and you may disagree with other homeowners about the HOA's priorities.

All things considered, whether or not you have a favorable view of your HOA generally comes down to you. If you are the type that likes to share their opinion and is willing to commit the time to improve your local community, you may want to join your HOA. However, if you are less interested in having someone spend your money, you might disagree with their approach. Whatever the case, when you are ready to buy or sell your next home, contact our professional real estate team. We're happy to help you find the right home – HOA or not.

NAHB: Home Builder Confidence Drops in January

Homebuilder confidence in housing market conditions dipped two points in January; ongoing challenges including labor shortages and materials costs were cited by the National Association of Home Builders, which provides monthly readings on home builder sentiment. Three component readings of the Housing Market Index declined by one point each. Readings for current sales conditions, housing market conditions for the next six months and for buyer traffic within new single-family housing developments were 79, 78 and 54 respectively.

Readings over 50 indicate positive builder sentiment. The reading for buyer traffic seldom exceeds 50. Current readings support continued builder confidence in current and future housing market conditions. NAHB Chief Economist Robert Dietz said housing demand should continue to grow in 2018 based on the gauge of future market conditions remaining in the 70s range. Real estate pros have repeatedly cited slim inventories of homes for sale as driving rapidly rising home prices.

NAHB estimated 1.125 million housing starts for 2018, which was 2.70 percent higher than for2017. The Commerce Department released its annual rate of housing starts in December at 1.192 million starts; Building permits were issued at the annual rate of 1.302 million permits issued in December, based on November's annualized reading of 1.303 million permits issued.

Regional Builder Confidence Readings Rise

Regional readings for builder confidence were higher in all four regions tracked by NAHB. Calculated on a three-month rolling average, the Northeast gained five points for an index reading of 59; The Midwest posted a one-point gain for a January reading of 70. The South posted a one-point gain for an index reading of 73 and the West reported a two-point gain for a reading of 81.

Analysts said throughout 2017 that building more homes would be the only way to solve the housing shortage and resulting challenges including rapidly rising home prices that eliminate first-time and moderate-income home buyers out of affordable home prices and home financing options

Selling Your Home to Millennials? 3 Tips That Will Help You Get the Sale Closed

Are you thinking of selling your home this year? If so, you are almost certainly going to interact with millennial homebuyers. This generation numbers around 80 million and are the fastest-growing consumer demographic in the country. As their earning power continues to increase, millennials are now turning their attention to real estate. In today's post, we'll share three tips that you can use to help make your listing more attractive to younger millennial homebuyers.

Minimalize As Much As Possible

Is your home full of trinkets and other clutter? If so, it might be best to box all of that up and store it during the home selling process. This generation tends to lean more towards a minimalist lifestyle and a 'quality over quantity' mentality. They are also highly social, which means that open space for mingling is more important than having large, clunky pieces of furniture all over the place. If you have large living areas, try to stage them with more of an open concept in mind.

Embrace Technology And Make Upgrades

As you might imagine, millennials are very tech-savvy and gravitate towards homes that already have their technology interests in mind. Of course, you do not need to run out and invest in a massive solar panel setup for your roof – although solar is certainly popular. Smaller, more thoughtful investments like strong WiFi signals, Internet-connected thermostats and video-based home security options are all useful tech upgrades.

Highlight The Local Community And Amenities

Finally, you will want to highlight your local community as much as possible. Everything from the local elementary and middle schools to walking trails to community centers and shopping is important to the millennial crowd. Many of this generation prefer walking and cycling over driving and aren't interested in long, horrific commutes to work each morning. If you have a nice coffee shop or bakery that you like to frequent, try to have some of their products on hand at your open house as well.

Following the selection of tips above is sure to make your home more attractive to millennial homebuyers. To learn more about how to sell to younger buyers, or to list your home for sale, contact us today. Our professional real estate team is happy to meet with you and share how we can get your home sold quickly.

What's Ahead For Mortgage Rates This Week - January 22, 2018

Last week's economic news included readings on home builder confidence, housing starts and building permits issued. Weekly readings on mortgage rates and new jobless claims were also released; the week wrapped with the University of Michigan's report on consumer sentiment.

Home Builder Confidence Dips, Remains in Positive Territory

According to the National Association of Home Builders, builder confidence dropped two points in January to 72, but high demand for homes continued to provide builders with positive outlooks on housing market conditions. While continued concerns over labor and lot shortages were cited, home builders surveyed for January's Housing Market Index said that High demand for homes and recent tax legislation kept more builders confident than those who were not. Any reading over 50 indicates positive builder sentiment.

Housing Starts, Building Permits Fall in December

Housing starts fell 8.20 percent in December according to the Commerce Department. 1.192 million starts were forecast on a seasonally- adjusted annual basis; analysts expected a reading of 1.280 million starts based on November's reading of 1.299 million starts. 1.302 million building permits were issued in December on a seasonally-adjusted annual basis. November's reading was higher at 1.303 million building permits issued.

Mortgage Rates Rise, New Jobless Claims

Freddie Mac reported higher mortgage rates for the second week in a row. The average rate for a 30-year fixed rate mortgage rose five basis points to 4.04 percent; the average rate for a 15-year fixed rate mortgage rose five basis points to 3.49 percent and the average rate for a 5/1 adjustable rate mortgage was unchanged at 3.46 percent. Discount points averaged 0.60 percent for 30-year fixed rate mortgages and 0.50 percent for 15-year fixed rate mortgages. Discount points averaged 0.30 percent for 5/1 adjustable rate mortgages.

New jobless claims were lower with 220,000 new claims filed as compared to estimates of 250,000 new claims. 261,000 new claims were filed the prior week. Consumer sentiment was lower in January with an index reading of 94.40. Analysts expected the consumer sentiment index to reach 98.00, based on December's reading of 95.90 percent, but uncertainty over tax benefits connected with recent legislation and rising interest rates contributed to the lowest consumer sentiment index reading since July.

What's Ahead

This week's scheduled economic reports include readings on new and existing home sales along with weekly readings on mortgage rates and first-time jobless claims.

How Much Is the Right Amount to Commit to Your Down Payment? Let's Take a Look

Are you thinking about buying a new home? If you are going to take out mortgage financing, one consideration you will have is your down payment, which is the amount you pay up front in cash to cover some of the purchase cost. Let's consider a few points that will help you to decide how much is the right amount for your down payment.

How Much Do You Have?

The most obvious question you will need to answer is: how much do I realistically have to place as a down payment? Keep in mind that your down payment is money that you aren't going to see again until you sell your home. While you want to invest a significant amount for reasons we will share below, you still need to maintain a cash cushion of a year's salary or so in case you fall ill or lose your job.

More Down, Less Monthly

The main case for putting as much as you can into your down payment is that the more you invest, the less you have to borrow. This means that over time, you will pay less interest and you will also have lower monthly payments. Keep in mind that with today's low interest rates it's a bit less of a burden to carry a large mortgage. However, these rates may swing upwards over the years, which will increase your costs.

The Need For Private Mortgage Insurance

If you're going to put less than 20 percent down on your home, you're almost certainly going to be required to purchase mortgage insurance. There are numerous options available to you, including those offered by the Federal Housing Administration or FHA. Your mortgage lender will share this and other private insurance policies that will protect you.

Don't Forget About Lost Opportunity Cost

Finally, don't forget to factor in the lost opportunity cost that comes with investing a large down payment. Unless you have a terrible money manager, your mortgage interest rate is likely to be less than you would be able to make investing the difference in your financial portfolio. If you're thinking about putting an extra $50,000 in your down payment, consider that you might be able to make 5 to 10 percent on that over the next decade. There are no guarantees in investing, so speak with a professional for further guidance.

If you are ready to start shopping for your dream home, contact your trusted real estate professional today.

On Time, Every Time: How Being Late on Monthly Payments Can Affect Your Mortgage

Are you the type of person that struggles with remembering to pay their bills on time? You're not alone. People across the country regularly submit late monthly payments, inflicting terrible damage to their credit. Let's take a quick look at how paying your loan or other monthly payments late can have a negative impact on your mortgage.

Your Credit Score Is At Risk

As you already know, almost all banks, credit cards, mortgage companies and other lenders rely on your credit score to help assess the risk of lending money to you. Paying any of your payments late – even something as small as your mobile phone bill or a department store credit card – can result in negative marks showing up on your credit report. If you are late enough times or fail to repay the late payment in full, then your score will start to drop

Refinancing Can Be Affected

If you already have a mortgage, then a lower credit score can be a problem when you try to refinance. The process of refinancing involves taking out a new mortgage, in which your lender will reassess your risk using your credit score as one of the indicators. If you have been making late payments, you might end up having to settle for a higher interest rate or you may even be declined for the new mortgage.

Making A Late Payment? Contact Your Lender

If you are caught in a bind and have to make a late payment, it is best to call your lender as soon as possible. First, there may be a grace period in which you can be a few days late without any penalty. If that little bit of breathing room is all you need to get caught up, you're set. If not, you can let them know your circumstances and discuss what options you have.

It is essential to pay your monthly payments on time, even if it means making some small sacrifices in other areas. The better your credit score looks, the more opportunities you will have to make positive financial moves in the future. Ready to start looking for your next home? Contact your local real estate professionals today.

Buying a New Home in a Hot Real Estate Market? Here Are 4 Tips You Will Need to Be Successful

Are you in the market for a new house? In a buyer's market, finding and closing on a beautiful home can seem very easy. However, if you are shopping when the market is hot, you may end up fighting bidding wars and losing your dream home to a competing buyer. Let's take a look at four tips that you will need to be successful when house hunting in a hot local real estate market.

Tip #1: Do Your Research Ahead Of Time

It should go without saying that in a hot market you will need to move quickly. Making an effort to do all your research ahead of time will ensure that you do not have to later, once you've found the perfect dream home. Check in with your real estate agent to find out what paperwork and other material will be needed.

Tip #2: Get A Mortgage Pre-approval

Once you have found your dream home, you may discover that other buyers are interested or have submitted bids. In this case, it is crucial that you can demonstrate that you have your mortgage financing pre-approved. Remember that the seller wants to close their sale quickly and for the best price. Showing up with pre-approved mortgage financing proves that you are serious about buying their home.

Tip #3: Be Ready To Pounce (But Don't Be Hasty!)

Speaking of being serious, it is essential that you are ready to pounce on the right listing. A hot market means that you won't be the only potential buyer checking out a home. The last thing you want to do is find the right house, then end up losing the chance to buy it because of unnecessary delays.

Tip #4: Small Sacrifices Are Okay

The final tip to keep in mind is that sometimes you will have to make a small sacrifice to close the deal. For example, the seller may want some special terms added to the agreement. Alternatively, they might ask you to pick up some of the closing costs. Whatever the case, keep in mind that a hot market means that you lose a bit of leverage. If it's a small sacrifice, it might be worth it.

Buying a house in a hot real estate market can be challenging, but a little preparation will go a long way in ensuring you are the winning bidder. When you are ready to buy your next home, get in touch with your local real estate professionals.

What's Ahead For Mortgage Rates This Week - January 16, 2018

Last week's economic releases on inflation, core inflation, and retail sales. Weekly readings on mortgage rates and new jobless claims were also released.

Inflation and Retail Sales Ease in December

Consumer prices fell from November's reading of 0.40 percent growth to o.10 percent growth in December, which matched expectations. The Core Consumer Price Index, which excludes volatile food and energy prices, dropped to 0.30 percent from November's growth rate of 0.40 percent. Analysts expected a Core CPI reading of 0.20 percent for December.

Retail sales were lower in December as compared to November's reading of 0.90 percent growth month-to-month; December's retail sales grew by 0.40 percent. Core retail sales, which excludes automotive sales grew by 0.40 percent in December as compared to November's growth rate of 0.90 percent. Analysts expected retail sales to increase by 0.50 percent. Retail sales excluding automotive sales also grew by 0.40 percent as compared to an expected reading of 0.30 percent and November's growth rate of 1.30 percent

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported higher average mortgage rates last week with rates for a 30-year fixed rate mortgage averaging four basis points higher at 3.99 percent. Mortgage rates for a 15-year fixed rate mortgage were six basis points higher at an average of 3.44 percent. The average rate for a 5/1 adjustable rate mortgage was one basis point higher at an average of 3.46 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

First-time jobless claims rose to 268,000 filings as compared to 248.000 new claims expected and 258,000 new jobless claims filed the prior week. Last week's new jobless claims.

What's Ahead

This week's economic releases include readings from the National Association of Home Builders, Commerce Department reports on housing starts and building permits issued and a report on consumer sentiment from the University of Michigan.

Looking to Buy a Home in 2018 and Don't Know Where to Start? Here's a Few Tips

Are you a renter that has become tired of paying someone else's mortgage and not building any equity? Or a homeowner who has a growing family and is in need of more space? Whatever the case, if you are in the market for a new home there is no time like the present. Let's explore a few tips that will help you to prepare for the home buying experience.

Tip #1: Prepare For A Busy Spring Season

First, it should be pretty obvious that you aren't the only house hunter on the market. Other local individuals and families alike will be searching for a new house to call their own. As you may know, the spring is generally when the local real estate market starts to heat up. So, if you are looking to buy, you may want to address your needs earlier in the spring rather than later. The sooner you can get the paperwork signed, the less of a chance you end up in a bidding war.

Tip #2: Mortgage Rates May Be Trending Up

While this is in no way a prediction, there have been some indications that mortgage interest rates may be trending higher in 2018. If this does end up being the case, the cost of buying a home is going to be a little bit more. So if you can move quickly and get your mortgage pre-approved now, you may find that you end up with a better deal than those families who wait until the summer to make a move.

Tip #3: Prepare Your Finances And Credit In Advance

Finally, it's a great best practice to ensure that your personal finances are prepared in advance. Your real estate agent will be able to assist you with which documentation you will need to have ready. You should also check in with one of the major credit reporting agencies. They will be able to advise you as to whether you have any issues with your credit rating or FICO score.

Buying a home is always an exciting experience – one which can be relatively stress-free if you are prepared. When you are ready to discuss buying your dream home or to view available listings in the local area, give our offices a call. We are here to help you find the perfect house, condo or apartment to suit your needs.

Stuck in a Bidding War? 3 Ways to Win Without Busting Through Your Mortgage Approval Amount

Are you planning to make an offer on a new home in a hot housing market? If so, one possibility is that you are going to end up bidding against other buyers who are looking to buy the same home. Unfortunately, in some cases bidding wars are inevitable, and they can be a significant source of stress. Let's take a look at three ways that you can win a bidding war without having to spend more than you can afford.

Price Is Important, But It's Not Everything

The first consideration to keep in mind is that price is important, but it isn't the sole consideration that sellers make when deciding which offer to choose. In fact, for many home sellers, the price is secondary to a variety of other factors.

For example, consider whether or not the sellers need to close quickly. Perhaps they are moving to a new city, or have already bought a new house and are looking to get out of their old one. If you have your mortgage financing pre-approved and your paperwork in order, you can promise a shorter close than other buyers may be able to provide.

Have A Face-To-Face Conversation With The Listing Agent

It's worth investing the time in a sit-down chat with the seller's real estate agent to find out what their motivations are. Are they selling for the money, are they moving, are they under pressure or just getting rid of the house to make an upgrade? All are factors that you can use to your advantage in a bidding war.

Another great tip: be sure to find out where the sellers plan to live once they sell their home. If they want to stay in the house, you may be able to buy it and lease it back to them. That's a difficult offer to refuse.

Be Flexible, But Be Firm

Finally, keep in mind that you will need to be flexible to win a bidding war, but you should remain firm. Don't bend your offer or terms too much. If you table a great offer and still lose the bidding war, that's life. You can move on and find another great home to live in.

If you are in a hot real estate market, it's a good idea to mentally prepare for a bidding war when you submit an offer on a new home. For more insight, contact us today.

How to Run a Quick Financial Health Check Before You Apply for a Mortgage

Are you planning on using a mortgage to help cover the cost of a new home? If so, you will want to prepare your finances and figure out how you will manage all those wallet-draining monthly expenses. Let's take a look at how to run a quick financial health check to ensure you are ready to apply for a mortgage.

Update (Or Start) Your Monthly Budget

First, it is essential to get the basics out of the way. If you haven't already, it's time to start a monthly budget to keep track of your income and expenses. Once you have a mortgage, it will be important to prioritize your monthly payments so that you don't end up falling behind.

Starting a budget is easy and can be done with mobile apps, software, a spreadsheet or a pen and paper. List all sources of income so that you know exactly how much cash you are working with. Then, list out every one of your expenses. It can be tough to remember them all, so consider using debit and credit card statements from the past few months as a reminder.

Get A Copy Of Your Credit Report

Next, you will want to get a copy of your credit report so you can see what potential mortgage lenders will see when assessing your financial history. This is a free service that you can request once per year, so be sure to take advantage. Note that you will want to use government-approved websites for requesting your credit report. Be wary of scams.

Do You Have A Down Payment?

A down payment is not required for every home purchase, but having one saved up can make the buying process easier. The amount you will want to have saved up will depend on the cost of your home, whether you plan on carrying private mortgage insurance and a variety of other factors. If possible, try to save up an amount close to (or more than) twenty percent of the home's purchase price.

Ready? Chat With A Professional

Now that you have run a quick financial health check, it is time to meet with a real estate professional. Contact us today.

Can I Buy a Piece of Land and Build a House on It With a Mortgage? Yes -- Here's How

Have you been hunting for a new house without finding one that suits your needs? If so, one option that you may want to consider is building a new construction home on a choice piece of land. In today's blog post we will explore a few different mortgage options for those who are looking to build a brand-new home.

Qualifying For A Construction Mortgage

As with any mortgage product, the first step you will want to take is to begin the qualification process. As your lender does not have a completed house to use as collateral for your loan, qualifying can take a bit longer than usual. Your mortgage lender will gather information about the home you plan to build, including its size, features and who is contracted to build it. The more information you can provide during the qualification process, the better. You might find it helpful to have your builder or general contractor involved as they will have many of the answers needed.

Construction-to-Permanent Mortgages

One type of new construction mortgage is known as a 'construction-to-permanent' loan. With this kind of mortgage, you only go through the closing process once. In many cases, while your home is being built you are only responsible for paying off the mortgage interest each month. Once your home is finished, your lender will convert this mortgage into a standard mortgage like any other. You can choose from a variety of amortization periods, interest rates and more.

Standalone Construction Loans

A standalone new construction loan is a bit different. With this product, you borrow money to finance the construction of your home and then again as a permanent mortgage once the home is completed. These loan and mortgage combinations require you to go through the closing process twice and thus your fees may be a bit higher. However, if you are currently living in a home and won't have much cash until it is sold, this might be the right product for you.

As you can see, building a new home on a piece of land is a bit different than the typical home buying process. To learn more about land available in your area, contact us today. Our professional team is happy to share our expertise.

What's Ahead For Mortgage Rates This Week - January 8, 2018

Last week's economic reports included readings on construction spending, minutes of the most recent meeting of the Fed's Federal Open Market Committee. Labor reports including ADP, Non-Farm Payrolls, and national unemployment were released along with weekly readings on mortgage rates and new jobless claims.

Construction Spending Rises; Driven by Residential Building

Residential construction drove November construction spending surpassed expectations of a 0.50 percent increase; Overall, construction spending rose by 0.80 percent in November. Residential construction was up 7.90 percent year-over-year. Single-family home construction rose 8.90 percent year-over-year. Rising rates of single-family construction is good news for homebuyers, who have faced obstacles due to short inventories of available homes. Analysts expected Q4 2017 construction pace to be the highest since Q1 2016.

While more homes for sale could help ease rapidly rising home price, rising mortgage rates could sideline first-time and moderate-income buyers, but Fed policymakers had mixed opinions about raising the federal funds rate forecast for 2018.

Fed Policy Makers Divided Over Projected Interest Rate Hikes

Minutes for the FOMC meeting held December 12 and 13 reflected varied views among Committee members about three projected interest rate hikes in 2018. Analysts watch Fed policy decisions carefully as raising the target federal funds rate typically causes mortgage rates and consumer lending rates to rise.

Labor markets continued to grow and although mortgage lending standards eased somewhat, lenders remained reluctant to fund mortgages and auto loans for those with low credit scores. Inflation hovered beneath the Fed's objective of two percent, but FOMC members voted to raise the target federal funds rate of 1.25 to 1.50 percent. This increase remained within the accommodative range according to FOMC members.

Mortgage Rates, New Jobless Claims

Average mortgage rates were lower across the board last week. Rates for 30-year fixed rate mortgages averaged 3.95 percent which was four basis points lower than the previous week. Rates for a 15-year fixed rate mortgage were six basis points lower at an average of 3.38 percent; rates for 5/1adjustable rate mortgages averaged 3.45 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

New jobless claims rose by 3000 claims to 250,000 new claims, which exceeded expectations of 240,000 new claims and prior week's reading of 247,000 first-time jobless claims. December readings for the labor sector included ADP payrolls, which tracks private-sector jobs. 250,000 jobs were added in December as compared to November's reading of 185,000 jobs added. The Commerce Department reported 148,000 new public and private sector jobs added in December against November's reading of 252,000 jobs added. Analysts expected 195,000 new jobs to be added in December. National unemployment held steady at 4.10 percent, which matched expectations and November's reading.

How to Find the Perfect Tenant for Your Basement Suite

Do you have an empty basement or separated suite in your home? If you have a suite sitting empty, you are missing out on collecting some extra monthly income in the form of rent. Let's take a look at a quick four-step process that will help you find the perfect tenant to rent out your basement suite.

Step 1: Play By The Rules

Is this your first time renting out a home or suite to a tenant? If so, you will want to do a bit of research first. Read up on Fair Housing Rules and other regulations as these will inform you of your responsibilities as a landlord. Keep in mind that you cannot discriminate in any way when it comes to race, religion, gender, family status or disability. Anyone who applies must be given a fair chance.

Step 2: Be Specific In Your Advertising

When you place a rental listing, be as specific as possible in what you are looking for in a tenant. If you are a single, quiet person, you may want someone similar as you will be compatible. Conversely, if you are a young couple, you may clash with a retired senior or someone older. Be as specific as possible but remember that you cannot be discriminatory.

Step 3: Meet Potential Tenants In Person

Be sure to take the time to meet with every short-listed applicant in person. If you are not comfortable with having so many strangers over to your home, consider meeting at a local coffee shop. An in-person meeting will allow you to visually assess the person and determine if your personalities are a fit for living in the same home.

Step 4: Don't Skip The Checks

Finally, don't take any shortcuts when performing background, credit and other checks. Ask your tenant for at least one or two references that you can call to verify their rental history. Investing in a credit check will help to assess their risk of missing monthly rent payments. And if necessary, a criminal records check can let you know if they have been in trouble with the law.

As long as you are well-prepared and diligent, finding a suitable tenant for your basement suite can be a painless process. To learn more about real estate opportunities in the local area that are perfect for rentals, contact us today. Our real estate team will be happy to show you around.

Buying a Rental Property? These 4 Key Tips Will Ensure You Buy One That Turns a Profit

Are you starting to grow bored of watching your money go nowhere sitting in a bank account? With today's interest rates doing little to encourage saving, many individuals are looking elsewhere for new investment opportunities. In today's blog post we'll share four essential tips for buying a profitable rental property. Let's get started.

Buy A Property With Year-Round Potential

Many real estate investors agree that the best rental properties are those that generate income every day of the year. The most straightforward situation to manage is one where you have stable, long-term tenants in place that aren't going to move or change often. Browse local property listings around schools, colleges, and large employers to see if there are any suitable homes for sale. Once you gain experience and invest in other properties, consider branching out into vacation or short-term stay homes. But to get started, aim for stability.

Predict Your Income And Expenses

Next, you will want to craft a budget. Have a look through rental listings in your target communities to see what renters are currently paying. This will give you some idea of your potential rental income for a similar-sized home. You can then compare this to your estimated monthly mortgage payment, taxes, utility costs, and repairs. It is impossible to predict precisely how much you will need, but this exercise can quickly prove whether this area is likely to be profitable.

Treat Your Rental Properties Like A Business

Since you have already taken the first steps with a budget, you might as well continue down the path to a full business structure. Most real estate investors set their portfolio up in an incorporated or limited-liability company, which reduces personal exposure. It can also be an efficient way to manage any legal issues that arise as your investments grow. Also, there will be significant tax advantages, including being able to write-off expenses such as repairs, contractor work, and renovations.

Work With Experienced Professionals

Speaking of contractors, it's worth reminding to only work with experienced professionals who are licensed, certified and have references. Paying for quality work up-front ensures that you won't have to deal with hefty repair bills due to shoddy workmanship. When you are ready to invest in rental properties, give us a call. Our professional real estate team is happy to share listings that are perfect for investment and rental income generation.

The Pros and Cons of a Large Down Payment When Buying a Home

If you are in the market for a new home, one of the considerations you will need to make is how much to invest in your down payment. Let's take a quick look at some of the pros and cons of making a large down payment when buying your next home.

A Large Down Payment Has Its Benefits

If you have the funds available, you may find a bit of an advantage in a large down payment. The following are a few potential benefits that you may realize.

You Can Afford More 'House'

If you are aiming for a large, luxurious home a significant down payment can help you get there. As long as your credit is in line with your needs, a large down payment leaves more room in your mortgage.

You May Pay Less Interest
Conversely, if you don't need to carry a big mortgage you can choose a shorter amortization period for your mortgage. A shorter loan period means that you are likely to pay less in interest.

You Might Not Need PMI

If you can afford to invest more than 20 percent of the home's value in your down payment, you may not be required to purchase private mortgage insurance.

A Few Of The Downsides

Of course, there are some potential downsides to using a large portion of your available cash as a down payment:

Do You Have The Money?

A large down payment doesn't make a lot of sense if your finances can't tolerate that hit right now. If you have your down payment and little else, you might want to reconsider.

You Will Be Less Liquid In The Short Term

Keep in mind that once you sign the closing paperwork, your down payment cash is gone. This will leave you a bit less liquid in the short term since you would need to sell your home to get that cash back out.

You Can't Invest That Money Elsewhere

You won't be able to use these funds for other investment purposes. Of course, real estate is an investment itself so this may be less of a concern.

Still Have Questions? Get In Touch

Choosing the right amount for a down payment is a decision best made with professional help. Contact your local real estate professional and we will be happy to share our experience and insight.

What's Ahead For Mortgage Rates This Week - January 2, 2018

Last week's economic readings included Case-Shiller Home Price Indices, pending home sales and consumer confidence. Weekly readings on mortgage rates and new jobless claims were also released.

Case-Shiller: Home Prices Continue Growth

Case-Shiller Home Price Index reports indicated incremental growth in October with home prices growing month-to-month 0.70 percent for the S&P Case-Shiller 30-City Home Price Index. The 20-city index posted 6.20 percent gains year-over-year. Western cities continued to post the largest gains; Seattle, Washington led with a year-over-year growth of 12.70 percent. Las Vegas, NV and San Diego, California rounded out the top three with year-over-year home price growth of 10.20 percent and 8.10 percent.

Pending Home Sales Subject to Slim Inventory of Available Homes

Homes under purchase contract rose by 0.20 percent in November as compared to an increase in pending sales of 3.50 percent in October. Analysts expected pending sales to rise by 0.50 percent in November. Extremely low inventories of available homes continued to dampen home purchases in November. The National Association of Realtors® said there was a 3.40 months' supply of homes for sale as compared to an average reading of a six months supply.

Small inventories of homes for sale constrict sales by driving up prices, increasing buyer competition and challenging buyers to find homes they want buy among limited choices.  Pending sales varied by region with the Northeast posting a 4.10 percent increase in pending sales; the Midwest posted an increase of 0.40 percent in pending sales The South posted a decline in pending sales of -0.40 percent. The West posted a decrease of 1.80 percent, which could indicate that rapidly rising prices in Western markets are topping out. Analysts said that the disparity between pending home sales and completed sales of pre-owned homes made it difficult to accurately assess the future housing market trends.

Mortgage Rates Rise, Consumer Confidence Highest in 17 Years

Freddie Mac reported higher average mortgage rates last week. Rates for a 30-year fixed rate mortgage averaged five basis points higher at 3.99 percent; the average rate for a 15-year fixed rate mortgage was six basis points higher at 3.44 percent. The average rate for 5/1 adjustable rate mortgages was eight basis points higher at 3.47 percent. Discount points were unchanged on average at 0.50 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages. Analysts had forecast a hike in mortgage rates after the Fed raised its target federal funds rate.

Consumer confidence rose to its highest rate in 17 years in November. December's month-to-month index reading was 122.10 as compared to an expected reading of 127.5 and November's reading of 128.6.  Although confidence dipped in December, analysts said that consumers are confident about jobs and the economy.

What's Ahead

This week's economic readings include releases on construction spending, ADP and Non-farm payrolls and the National unemployment rate. Weekly readings on mortgage rates and first-time jobless claims will also be released