Jan 17, 2018 | Home Mortgage Tips
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.
Jan 16, 2018 | Mortgage Rates
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.
Jan 13, 2018 | Around The Home
In an age of rapidly changing technology, doing things like programming in temperature changes and monitoring your home security from afar are becoming common. Fortunately, having a smarter home is even easier these days with Alexa, which was created by Amazon in 2014 as a smart home assistant. If you’re looking for an instant home upgrade that will utilize the smartest technology on the market, here’s why Alexa might be a great option for you.
Hands-Free Convenience
Whether you’re doing laundry or cutting up vegetables, being able to do a lot of tasks around the home hands-free can be a great benefit. Fortunately, with Alexa, users can use their voice to get things done whether it’s activating an app, turning on their music or even getting the weather report.
Control The Temperature
Having to set up the temperature in your home so it goes down at night and heats up throughout the day can be a challenge, particularly since the outside temperature is always changing. Fortunately, Alexa allows you to make adjustments to the temperature wherever you are. Whether you want to increase, decrease or set the temperature, the command is as easy as: “Alexa, set the temperature to 67.”
Adjusting The Lights
In addition to the temperature, Alexa also gives you the ability to adjust the lights in your home using a variety of different commands. Whether you want to turn the lights on or off, dim the lights or even adjust their color temperature, you just need to call Alexa’s name. Conveniently, you can even create groups of lights that will turn on at a specific command!
Making Simple Purchases
Whether you want to order take-out for dinner from places like Domino’s or purchase home necessities that you’re running low on, all you need to do is engage Alexa with the appropriate command. While some users have encountered early issues using Alexa to order products, it tends to work well for household items that you order frequently.
There are many home upgrades available on the market, but Amazon’s Alexa is a great choice for those who want a product that’s easy to use and technologically adaptable. And when you’re ready to upgrade to a more tech-friendly home, visit reviews.com for a detailed comparison of some of the better systems available.
Jan 11, 2018 | Home Mortgage Tips
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.
Jan 10, 2018 | Home Mortgage Tips
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.
