Articles Tagged "Mortgage"

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May
31

Avoiding Buyer Burnout - Haring Realty

Even in a buyer's market with plenty of affordable houses with little competition, buying a home is a stressful endeavor. This stress is amplified in today's market, where prices remain high and scant inventory leads to bidding wars. You can quickly become emotionally drained between finding a home that suits your needs and navigating a grueling loan approval process. Our REALTORS® can take some of the strain off your shoulders, but it's just as important to arm yourself with information to avoid buyer burnout.

Read on for some tips and tricks on navigating what can be both a stressful and joyful journey.

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December
13

Buyer Closing Costs - Haring Realty

Buying a home is one of the most significant purchases most people will ever make. And, just like when you go shopping at the store, the sticker price is not the home's total price. This can come as a shock to many first-time home sellers and first-time homebuyers alike, which is why our REALTORS® want you to know everything about closing costs and how they affect the final price you pay for your new dream home.

  • Fees and Commissions
    You will also need to factor in real estate agent fees and commissions. These can be around 6%, but they vary depending on the agent. The seller is the party that typically pays the agent fees and commissions. The seller also pays for title insurance and any pro-rated property taxes on the property. It is also the seller's responsibility to pay any HOA fees, attorney fees, and escrow money owed to the buyer. To help ink the deal, some contracts allow the seller and buyer to split, or have the buyer pay 100 percent of, the owner's title fees on cash deals.

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November
8

VA Loans in 2021 - Haring Realty

Our REALTORS® know that no matter what your homebuying goals are, the process of getting a loan can seem intimidating. Whether you're looking at Mansfield or Ashland homes for sale, the question of financing looms large for most buyers.

If you're a U.S. military veteran, the Veterans Administration loan program may be a good fit for you.

Known popularly as the "VA home loan," it's one of the biggest benefits offered to America's veterans. It grants a wide range of perks compared to conventional loans, including no down payment and attractive rates. There are many other advantages that you might qualify for.

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September
20

Buy a Home - Improve Credit Score - Haring Realty

Before looking at Mansfield or Ashland homes for sale, many would-be buyers take time to improve their credit scores. As a general rule, the better your credit is, the easier it is to access home loans on favorable terms. That usually means better interest rates and saving thousands over a mortgage's life.

Our REALTORS® have helped many clients understand how to tackle this process. We have spoken to many people who have put off their plans to buy a home due to their low credit score, even when they have substantial current income.

Luckily, you can improve your credit score in 2021 no matter where you start from!

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June
7

Competitive Housing Market - Buy a Home - Haring Realty

Real estate markets across the country are red hot. It is not uncommon for sellers to receive numerous offers within days of listing their property. Time and time again, our REALTORS® have seen homes sell for well above their listing price. If you have your eye on the perfect property for your next home, we recommend taking the time to get prepared before you jump into the pool of buyers eager to get their hands on your dream home.

  • Preapproval
    Start by getting preapproved for a loan. This is more rigorous than a prequalification process and shows you precisely where you stand and how much the lender will loan for your purchase. There are multiple advantages to this when searching for Mansfield or Ashland homes for sale. It helps narrow down your search to only those properties within your price range. This speeds up the process considerably. It also shows you how high you can go if a bidding war breaks out. Equally important, when multiple offers are submitted, sellers are more likely to accept offers from preapproved buyers than those who are merely pre-qualified.

    In fact, be prepared to pay more than the listing price. This is especially true for well-maintained homes in desirable locations. It's not unheard of for homes to sell for 100-110% or more of the asking price. As you search, factor this into your calculations and search for homes that are 95% or less of your preapproval.

    Click Here to Read More...

April
19

FICO Score Importance - Buy a Home - Haring Realty

At Haring Realty, our REALTORS® know that some aspects of the home-buying process can be confusing.

Even buyers who have been through it all before don't know everything. And it can be even more worrisome for first-time buyers, who wonder about all the things they aren't familiar with yet. That can put a damper on the fun of looking at Mansfield or Ashland homes for sale.

One subject comes up again and again: Financing. Where to find a mortgage and how to get the best deal.

Choosing the best mortgage for you can save you thousands of dollars across the life of your mortgage. But buyers often go into the process knowing little about one of the most important factors that can influence your mortgage terms: your FICO score.

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February
15

Pre-Approval Process - Buy a Home - Haring Realty

Our REALTORS® at Haring Realty strive to make homebuying easier. When looking at Mansfield and Ashland homes for sale, clients often have lots of questions. It's no surprise concerns around financing are common. That's not just true for first-time homebuyers, either: Whether they're buying a first place or a place to retire, everyone wants the best deal.

But the process of getting a mortgage can be complex. It's easy to get confused, which is one reason why the right real estate pro is such a valuable ally. One question that often doesn't get asked – because buyers don't have all the information at first – is this: "How does pre-approval affect my home search?"

Pre-approval can have a positive impact on your finances and the whole buying process.

Here's what to know.

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February
10

Overcoming Homebuying Obstacles - Haring Realty

It's a competitive real estate market. For first-time homebuyers, the goal of homeownership can appear difficult to achieve. While it's true that there are obstacles in the path, it's not impossible to overcome them and beat the odds. Our REALTORS® know how to help first-time homebuyers position themselves in the market to purchase the home they desire. 

Overcoming the Obstacles to Homeownership

  • Strict Lending Requirements
    This is often the most daunting obstacle first-time homebuyers need to tackle. Overcoming it requires a multi-prong approach that starts with trimming the budget. Eliminating unnecessary spending, paying off credit card debt, and consolidating existing loan obligations at a lower interest rate are essential steps. It pays big dividends. It will help first-time homebuyers save money for the down payment, and it reduces the debt-to-income ratio. It also helps boost the credit score a few points, which allows buyers to qualify for a lower interest rate.

    Click Here to Read More...

November
25

Securing a VA Loan - Haring Realty

If you've spent even a tiny amount of time shopping around for a mortgage, then you know it's not exactly a picnic. Our REALTORS® understand that securing a home loan is easily the least fun part of the home buying process, but it's an unavoidable one. 

That said, many homebuyers have a loan option they may not have considered: VA Loans. For those who qualify, a VA loan is an amazing resource, arguably much better than a conventional mortgage. So if you're looking at Mansfield homes for sale, be sure to carefully consider all your loan options. 

What is a VA Loan?

VA Loans are backed by the U.S. Department of Veterans Affairs and are designed to provide a simple and affordable route to homeownership for military, veterans and their families. Since VA Loans were first offered under the Servicemen's Readjustment Act in 1944, they have helped countless current and former service members finance their homes. 

Click Here to Read More...

March
6

Buy a Home with New Job

Even if you're new to a job, you can still fulfill your dream of owning a home. When you search for Mansfield homes for sale, you're destined to find the perfect residence in a neighborhood that fits your lifestyle. While your new job may present financing challenges, some mortgage companies will find ways to work around the obstacles.

Our REALTORS® believe that the path to homeownership is easier when you know what to expect. That's why we created a "First-Time Buyers Guide: Buying a Home With a New Job" with information to help you through your home-buying process.

Click Here to Read More...

September
6

What You Need to Qualify for a Home Loan
Everyone knows conditions in the real estate market can change fast.  When things are looking favorable, buyers should move as quickly as they can to secure the funding they need and go after the home of their dreams.

Still, the process can be complex. Even with the help of a skilled real estate agent, an informed buyer is in the best position to get a great deal on a mortgage loan.

There are a lot of misunderstandings about mortgages, but the topic is not as tough as it appears.

Click Here to Read More...

November
8

 

It's Not Always Marriage Before Mortgage | MyKCM

There are many people sitting on the sidelines trying to decide if they should purchase a home or sign a rental lease. Some might wonder if it makes sense to purchase a house before they are married and have a family. Others may think they are too young. And still, others might think their current income would never enable them to qualify for a mortgage.

We want to share what the typical first-time homebuyer actually looks like based on the National Association of REALTORS most recent Profile of Home Buyers & Sellers. Here are some interesting statistics on the first-time buyer:

It's Not Always Marriage Before Mortgage | MyKCM

Unmarried couples jumped up to the third spot, right after their married counterparts and single women. Many couples are buying a home before spending what would be a down payment on a wedding.

Bottom Line

You may not be much different than many people who have already purchased their first home. Let's get together to determine if your dream home is within your grasp.

October
18

How Historically Low Interest Rates Increase Your Purchasing Power | MyKCM

According to Freddie Mac's latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 3.47%. Rates have remained at or below 3.5% each of the last 16 weeks, marking a historic low.

The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.

Purchasing power, simply put, is the amount of home you can afford buy for the budget you have available to spend. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain monthly housing budget.

The chart below shows what impact rising interest rates would have if you planned to purchase a home within the national median price range, and planned to keep your principal and interest payments at or about $1,100 a month.

How Historically Low Interest Rates Increase Your Purchasing Power | MyKCM

With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5%, (in this example, $6,250). Experts predict that mortgage rates will be closer to 4% by this time next year.

Act now to get the most house for your hard earned money.

October
7

 


Mortgage Rates by Decade Compared to Today [INFOGRAPHIC] | MyKCM

Some Highlights:

  • The interest rate you secure for your mortgage greatly influences your monthly housing costs.
  • In the 1980s, 30-year fixed mortgage rates averaged in the high 12s making the monthly principal and interest payment over $2,000.
  • Interest rates are still at historic lows; this is a great time lock in your housing cost and protect yourself from increasing rents, or refinance your current mortgage.
September
7

 

Is the Current Pace of Home Sales Sustainable? | MyKCM

There are some experts questioning whether the current pace of residential home sales is sustainable. Are too many people buying homes like in 2004-2006? Are we headed for another housing crisis? Actually, if we look closely at the numbers, we can see that we are looking at a very healthy real estate market.

Why the concern?

Some are looking at the last three years of home sales and comparing them to the three years just prior to the housing bubble. Looking at the graph below, we can understand that thinking.

Is the Current Pace of Home Sales Sustainable? | MyKCM

However, if we go further back in history, we can see the real picture. After taking out the "boom & bust" years, the pace of sales is growing at a quite natural pace.

Is the Current Pace of Home Sales Sustainable? | MyKCM

And new home sales are way below historic numbers. Trulia's Chief Economist Ralph McLaughlin explains:

"Adjusted for population, [new home sales] are at about 63% of their fifty-year average level—way better than 2011, but nowhere near heated."

August
30

 

 

Why Is There So Much Paperwork to Sign to Get a Mortgage? | MyKCM

We are often asked why there is so much paperwork mandated by the bank for a mortgage loan application when buying a home today. It seems that the bank needs to know everything about us and requires three separate sources to validate each and every entry on the application form.

Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.

There are two very good reasons that the loan process is much more onerous on today's buyer than perhaps any time in history.

1. The government has set new guidelines that now demand that the bank prove beyond any doubt that you are indeed capable of affording the mortgage.

During the run-up in the housing market, many people 'qualified' for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can't happen again.

2. The banks don't want to be in the real estate business.

Over the last seven years, banks were forced to take on the responsibility of liquidating millions of foreclosures and also negotiating another million plus short sales. Just like the government, they don't want more foreclosures. For that reason, they need to double (maybe even triple) check everything on the application.

However, there is some good news in the situation.

The housing crash that mandated that banks be extremely strict on paperwork requirements also allows you to get a mortgage interest rate as low as 3.43%, the latest reported rate from Freddie Mac.

The friends and family who bought homes ten or twenty ago experienced a simpler mortgage application process but also paid a higher interest rate (the average 30 year fixed rate mortgage was 8.12% in the 1990's and 6.29% in the 2000's). If you went to the bank and offered to pay 7% instead of less than 4%, they would probably bend over backwards to make the process much easier.

Bottom Line

Instead of concentrating on the additional paperwork required, let's be thankful that we are able to buy a home at historically low rates.

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