A recent CNBC report indicated that the mortgage markets are becoming less profitable for the big banks. The article reports a quarterly drop of 25 percent in origination’s for JP Morgan Chase; Citi’s origination’s were down 17 percent; and Wells Fargo decreased 14 percent.
Recent foreclosure numbers suggest that the housing market has improved significantly. The November 2015 delinquency rate is the lowest since December 2007.
With a rising real estate market and chances of finding a bargain a lot tougher, first time home buyers are having more trouble finding the right home for them. One thing that everyone agrees on is that having a mortgage lender or broker who has a reputation of closing loans fast helps when the seller is in a multiple offer situation.
A recent survey from the National Association of Realtors revealed that 83 percent of all renters want to own a home and 77 percent believe that home-ownership is part of their American Dream. The top two reasons for not currently owning are affordability of housing and flexibility of renting.
A recent survey revealed that the majority of loan applicants don’t compare interest rates when buying a new home. If you, a client, or someone you know is looking for a residential mortgage loan make sure they call D&V Home Mortgage as we are approved with the lowest rate lenders in the nation.
Home buyers are wise to take careful note of the houses around them before they make an offer on that picture-perfect home. Buying the most expensive house in the neighborhood isn’t always the best strategy. Sure, they’ll have bragging rights, but your buyers may need to be informed about some challenges during resale. After all, unloading the priciest home on the block and seeing an increase in equity isn’t easy. “A lot of buyers forget a home is an investment,” says Brendon DeSimone, a real estate expert and author of “Next Generation Real Estate.” “The world changes. Things happen fast. People transfer, people lose their jobs. Now imagine yourself as the seller of that home.” With the nicest home on the block, home owners who do any upgrades – even minor – may be doing a larger mismatch between their home and the surrounding homes.
By considering the home as an investment, buyers will look at homes that leave some room for improvement and that will allow them to build equity and hopefully even pay it off when they do sell. DeSimone actually recommends to his clients buying the worst house in the best neighborhood. “You can add value on your own,” he says. “If you’re choosing between an awesome house in a crappy location and an awful house in a great location, I would choose the latter.” Improvement doesn’t need to entail a total renovation either. DeSimone says just regular maintenance, refreshing the paint, and making minor repairs that the previous owner ignored could add to the home’s value.
Source: Realtor.com
Most real estate and mortgage professionals realize that the housing recovery has been extremely good since the low in 2012.
In November the Fannie Mae Home Purchase Sentiment Index indicated that consumers aren’t as optimistic about housing prospects for the future.
Fannie Mae concludes that the decrease in the sentiment index was mainly due to two things; Expected decrease in supply and affordability.
With current interest rates near an all-time low affordability is still high, but higher interest rates could derail consumer sentiment.
A recent TransUnion survey indicated that the majority of potential homebuyers planning on purchasing a home within the next 12 to 18 months don’t know how to improve their credit.
Even more surprising was the amount that didn’t even know what a credit score was made up of and that it directly impacted their mortgage loan interest rate.
If you are interested in purchasing a property within the next year and don’t know anything about a credit score call us today for a free consultation.
You may have heard that it is extremely difficult to get approved for a home loan to buy or refinance a condominium. That was the case for several years after the housing market crashed, but lenders finally have loosened the rules on condo financing. Borrowers seeking to get a condo loan these days will find more lenders to choose from and more condominiums that are eligible for financing. Mortgage giants Fannie Mae and Freddie Mac have eased some of the requirements on loans for condos, and a growing number of lenders offer loans that go outside the box of the condo rules in conventional financing, says industry experts.
You’ll still need good credit and stable income to qualify for a condo loan — just as you would with a loan to buy a house. But you are less likely to face restrictions relating to the property itself. When approving a condo loan, the lender wants to make sure the building is financially stable. Because the financial stability of a condo project depends on the owners paying their bills, lenders tend to view condo loans as a riskier investment than a house. Lenders are more flexible when analyzing condominiums’ financial stability.
Late in 2014, Fannie issued new guidelines to lenders allowing them to issue loans in developments where up to 15 percent of the owners were 60 days past due on monthly payments. The threshold had been 30 days. Another change made it easier to finance condos in new developments. Still, many condo buildings don’t meet Fannie and Freddie’s requirements; however, there are several options that have now become available for portfolio lending, as well.
Source: BankRate.com
Vacation home sales jumped to a record 1.13 million last year which is the highest rate since 2003
This is a 57% increase from 2013
As vacation home purchases soared, investment purchases dropped for the fourth straight year
Market share of investment sales dropped to 19% of the market from 20% in 2013