Category: Mortgage + Real Estate Tips

Big Boomers vs. Minimal Millennials

Even in a seller’s market, some baby boomers are having a hard time selling their big homes. The primary reason: millennials prefer more minimalistic living.

Realtor.com recently reported that boomers who are trying to sell the big home they’ve had for years are out there house hunting for the same type of home new homebuyers in the millennial generation are looking at. Both prefer a smaller, more modern home with an open floor plan in more urban suburbs and cities.

Millennials in particular are searching for more walkable towns in the suburbs and those that have many urban amenities, such as bike lanes, nearby shops and restaurants, and social events. They are shying away from the traditional giant homes with big back yards. They desire less to maintain with more to do in the area.

As a result, some real estate experts think that baby boomers may end up getting stuck with their giant homes or at least have a harder time selling them now.

What type of home are you looking for? Call me when you’re ready to get pre-approved for your purchase – big or small!

 

Source: Realtor.com

 

* Pre-approval is only offered on home purchase loans where a sales contract is not yet signed.  It is not a rate lock, loan approval, or commitment to lend.  You must submit additional information for review and approval.

Prices Start to Rise as Supply Tightens

The first quarter of 2017 saw a see-saw pattern in housing indexes.

What’s going down? The supply of homes on the market. Job growth is firing up demand for real estate, pushing buyers into bidding wars for the tight supply of homes on the market. There were 1.83 million previously owned homes available for sale at the end of March, down 6.6% from a year earlier, according to the National Association of Realtors.

What’s going up? Naturally then, home prices are rising. Home prices increased 6% in the first quarter from a year earlier as competition heated up for a scarcity of listings. Prices rose 1.4% on a seasonally adjusted basis from the previous three months, the Federal Housing Finance Agency (FHFA) said in a statement recently.

The FHFA index measures transactions for single-family properties financed with mortgages owned or securitized by government-sponsored Fannie Mae and Freddie Mac. It doesn’t provide prices. The national median price of an existing single-family home was $232,100 in the first quarter, up 6.9% from a year earlier, data from the Realtors group show.

What does that mean for us locally? Call me and we’ll talk more about it.

Source: National Mortgage News

Lending, Reimagined

Ever wonder what the future of mortgage lending will look like?

We’ve got a pretty good idea, since Skyline envisioned and created that future.

Imagine a mortgage process without any issues submitting documents. Borrowers can view the status of their loan from start to finish, giving them complete clarity on the biggest purchase of their lives.

The anxiety of financing a home is reduced, if not completely eliminated, and that means more satisfied and secure borrowers.

Clarity leads to speed and concision, which is good for all parties involved.

For loan officers, this means cutting the application process by 80% and perfecting digital marketing.

We’re achieving all these amazing advancements through our 2X digital platform.

Click here to learn more about 2X, and if you have questions, give me a call or shoot me an email.

Is Student Loan Forgiveness a Possibility for You?

Did you know that the government’s Public Service Loan Forgiveness Program promises to cancel any remaining student debt for those who work for the government or non-profits and have been making continuous payments for 10 years?

Wait! What? Loan forgiveness. Is that for real?

Yes, it’s a real program to encourage people who have big student loans to stay in lower-paying jobs serving the public such as teachers, public defenders, Peace Corps workers, and law enforcement officers.

To learn more about it, read the full article found here at CNN online.

If you have the right kind of loans, the right kind of job, and are enrolled in an income-driven repayment plan, you may qualify! If you’re interested in using your savings towards home ownership, call me when you’re ready to talk. 

The Subconscious Ways Facebook Is Influencing Your Home Buying Decisions

When people make life-altering financial decisions, they often turn to someone in their social network for guidance, even if that person doesn’t have much expertise.

Home values are skyrocketing, rising 5.9% in the most recent S&P/Case-Shiller index, hitting a 33-month high. Many renters are now itching to make an offer.

That desire can grow even more intense when you see your friends reap the benefits, according to a study published last year by economists from Facebook, Harvard, and New York University.

“People are influenced by their friends’ experiences,” says NYU finance professor Theresa Kuchler, one of the study’s co-authors. “People whose friends see house prices go up more are more optimistic about real estate and invest more in real estate.”

Kuchler notes that this phenomenon existed long before Facebook came around. “It is people’s friends in general — whether they interact online or offline — that have an effect on what people think about housing,” he said.

However, social networks like Facebook let people stay in touch more, especially over long distances.

The researchers found that if your friend’s home value increased by five percentage points — even if that friend lives in another city or state — you were 3.1% more likely to trade in your rental for a mortgage.

Friends of friends with ascending property values are also more likely to put a higher down payment on their home, buy a bigger house, and pay more for a property — again, even when they live in different cities.

Read the source article at time.com

What the Interest Rate Hike Means for Homebuyers

Today, the Federal Reserve announced that they were raising interest rates. This is the third consecutive interest rate hike, and the Fed is citing a strong economy and low unemployment as reasons for this decision.

However, potential homebuyers don’t need to worry about mortgage rates increasing as the Fed makes their announcement.

The Fed raised short-term interest rates today, but mortgage rates, particularly for the 30-year fixed rate mortgage, are determined by the 10-year Treasury bond. Bonds are influenced by market conditions, global events, etc. and not by the Federal Reserve.

For those considering buying a home, know that though mortgage rates can increase at any moment, they won’t go up just because the Fed raised interest rates.

Source: HousingWire.com, June 14, 2017

Avoid These Roadblocks to Closing

“Clear to close!”

That is definitely one of my favorite phrases of all time. But getting to that point can sometimes be challenging.

According to the REALTORS® Confidence Index, which is based on responses from more than 2,500 Realtors nationwide, 23 percent of real estate professionals say they faced closing delays for a transaction in March, and 7 percent say the sale contract was terminated altogether.

Respondents to the survey say the two main reasons were clients having trouble obtaining financing, followed by appraisal issues.

How can you avoid these top two major roadblocks to closing?

Get Pre-Approved Before Looking for a Home*

The best way to ensure your funding will be ready when it comes time to close on a home is to work with me in advance. We’ll review all your finances, get your pre-approval letter prepared, and arm you with the knowledge you need to know exactly how much you can afford, how much you will need to put down and what will be due at closing.

Work With Licensed Professionals

Getting your finances in line isn’t the only important step in the closing process. You will need a professional Realtor by your side to guide your house hunting, making a strong offer, getting appraisals and negotiating any work that needs to be done before closing.

Real estate practitioners say a shortage of appraisers, valuations that are not in line with market conditions, and “out-of-town” appraisers who are not familiar with the local market are the biggest problems they face concerning appraisals. Having an experienced agent as your advocate can help with some of these other roadblocks.

 

While not every process goes perfectly smoothly, with Skyline Home Loans you can count on us to work our hardest to secure your loan and help you avoid obstacles along the way. Call me today to learn more and let’s get you clear to close!

Source: REALTORS® Confidence Index and National Mortgage News

*Pre-approval is only offered on home purchase loans where a sales contract is not yet signed.  It is not a rate lock, loan approval, or commitment to lend.  You must submit additional information for review and approval.

How House Hunting with Millennials Is Changing Real Estate

Millennials — people born between 1981 and 1997 — made up the biggest share of homebuyers in 2016 at 34 percent, according to a recent National Association of Realtors (NAR) study. Eleven percent of those millennial homebuyers purchased new builds.

As a major force in the home buying economy, millennials are changing the game for Realtors.

What’s the difference?

Millennials want a streamlined process, usually see fewer homes than older generations, and are more tech savvy. Some Realtors even report writing up contracts for homes based entirely off text messages.

They do their homework in advance too. With websites like Zillow, Trulia and HomeFinder,  millennials tend to come to agents with a list of houses they want to see already weighing all their options. But what’s online isn’t always accurate or updated. That’s where a qualified and professional agent can still help guide the tech savviest of clients.

Reports also indicate that budgeting and financial planning are characteristics of millennial homebuyers. Even though about a third of the generation has debt in the form of student loans, they are good at making budgets and saving for what they need. The NAR study found that 85 percent of millennial homebuyers said their purchase was a good investment.

Times and buyers may be changing but some things – like working with professionals and relying on updated data – likely won’t for a long time to come.

Source: National Mortgage News

It’s a Good Time to Trade Your Student Debt for Home Debt

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Fannie Mae, the government-controlled mortgage giant, is taking steps to make it easier for millions of student loan borrowers to own a home or refinance a mortgage. Student debt has become an increasing concern, amid worries that borrowers burdened by education loans are postponing home buying , causing a drag on the economy. The average undergraduate now leaves college with more than $30,000 in student debt, according to the Institute for College Access and Success.

Fannie Mae, which buys home loans originated by lenders that meet its standards, said Tuesday that it was easing the path for student loan borrowers — and those who may have co-signed such loans — in three ways, said Jonathan Lawless, vice president for customer solutions at Fannie Mae.

 

Read the source article at The New York Times

Mortgage rates tumble to fresh 2017 low

Yesterday, interest rates fell to the lowest they’ve been all year! This is great news for those who are ready to purchase a home or are considering refinancing.

Mortgage rates can change at any moment; that’s why it’s so important to strike while the iron is hot.

Rates for home loans fell in line with Treasury yields, nudging mortgage rates to the lowest level of the year, Freddie Mac said Thursday.

The 30-year fixed-rate mortgage averaged 4.08%, down 2 basis points during the week. The 15-year fixed-rate mortgage averaged 3.34%, down from 3.36%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.18%, down one basis point.

Those rates don’t include fees associated with obtaining mortgage loans.

The 10-year Treasury yield fell five basis points during the week as investors continue to re-assess the expectations for fiscal stimulus and economic growth that followed the November election even as fresh geopolitical worries flared. The benchmark government bond breached a key technical level, 2.30%, twice during the week.

Read the source article at MarketWatch