First Time Home Buyer Tips

Bob Vaughan

With today’s housing environment, you’re going to see a lot of competition when putting in an offer for a purchase. Having all of your metaphorical ducks in a row before you put in your offer should make you ready to make decisions involving purchasing a home.

  1. Get your credit score and down payment together. Having a strong credit score will help ensure you qualify for a mortgage for your home purchase and help you receive a more favorable rate. Having your down payment saved will allow you to put more money down on your home and possibly avoid paying PMI.
  2. Get preapproved for a mortgage. Knowing what homes are in your price range will eliminate wasting time looking at homes you can’t afford.
  3. Choose a great Realtor. Pick an agent who has experience with the market you’re looking in.
  4. Understand the mortgage process. While you may not need to know the minor details of the entire process, knowing your timeline and what documents you will need to provide will help save you time and stress worrying you may be forgetting something.

Existing Home Sales Dip Again

Bob Vaughan

For the fourth month in a row, sales of existing homes have dropped according to a report from the National Association of Realtors. The main factor behind the volume of existing home sales dropping is that the inventory of homes for sale continues to dwindle. This low inventory is causing median existing-home prices to rise (23.6% from May 2020 to May 2021) pricing some buyers out of the market. Region by region. the Midwest saw an increase in existing home sales month-over-month, but the Northeast, South, and West fell by 1.4%, .4%, and 4.1% respectively. Year-over-year each of these regions saw a double digit rise in existing home sales. As home builders rush to build on already purchased lots and materials to build remain tough to find, existing home sales may see a bounce back in the next few months.

Mortgage Application Volume Rises Once Again

Bob Vaughan

In the week ending June 18th, mortgage application volume rose once again. This 2.1% increase is the second consecutive rise in application volume. Refinances also saw a volume jump for the second week in a row, rising by 4% in conventional loan refinances specifically. Refinances made up 62.5% of total mortgage applications this past period.

 

  • The FHA share of total mortgage applications fell from 9.6% to 9.5% this past week.
  • The VA share of total mortgage applications fell from 11.5% to 11.2% this past week.

More Mortgage Applications Being Submitted

Bob Vaughan

Following three weeks in a row of decreases, mortgage application number have rebounded for the period ending June 11th. Applications for both new purchase mortgages and refinances rose in volume this week, but refinances saw the biggest increase with a 5.5% gain. Year-over-year purchase application volume is down 17%, but levels remain historically high compared to other years. Refinances made up 61.7% of total mortgage applications in this past period.

 

  • The FHA share of mortgage application volume increased from 9.5% to 9.6% this past week.
  • The VA share of mortgage application volume increased from 11.2% to 11.5% this past week.

As Summer Nears, Mortgage Application Volume Dwindles

Bob Vaughan

Mortgage application volume once again saw a decrease last week falling 3.1%. This marks the third week in a row that less mortgage applications have been submitted according to a report from the Mortgage Bankers Association. Refinance applications specifically saw a 5% drop this past week (the period ending June 4th). When you compare these numbers to last year, less people are applying for purchase mortgages and home prices are continuing to rise.

 

  • The FHA share of mortgage application volume decreased from 9.6% to 9.5%.
  • The VA share of mortgage application volume increased to 11.2% from 10.9%.

VA-like Housing Bill Proposed for First Responders and Teachers

Bob Vaughan

New legislation would offer a benefit similar to VA loans to first responders and teachers looking to buy homes. This new bill called the Homes for Every Local Protector Educator and Responder Act was introduced on May 13th. This bill would allow first responders and teachers to finance up to 100% of the price of their home purchase subject to FHA loan limits. Similar to an FHA loan, borrowers would pay an up-front mortgage insurance premium which could also be financed. This would replace the monthly insurance premium. The new program, if passed, would be administered by the Federal Housing Administration. Under this proposed bill public/private school teachers, prison guards, police officers, firefighters, paramedics, and emergency medical technicians would all be eligible for this benefit.

Fewer Mortgage Applications Submitted Last Week

Bob Vaughan

For the second straight week, mortgage application volume has taken a 4% dip. Refinance activity has also dropped for the second straight week. Compared to 2020, purchase applications are down about 2% but still remain high in comparison to most other years. Inventory continues to be an issue for potential buyers as the prices are rising due to increased demand relative to available homes. These pricing increases are causing some buyers to feel priced out of the market and discouraging them from applying for home mortgages.

 

  • The FHA share of mortgage application volume increased to 9.6% from 9.1%.
  • The VA share of mortgage application volume decreased to 10.9% from 11.2%.

Save Money on Future Real Estate Taxes When Selling Your FL Home

Bob Vaughan

Starting in 1995, if you own a primary residence in the state of Florida, you can apply for a tax benefit called Save Our Homes. This benefit can be applied to all primary residences in the state of Florida and limits the increase in a property’s assessed value to 3% per year. As market values rise, this can help limit the increase in your real estate tax bill. When selling a primary residence, this benefit can be transferred to your new home through a process called portability. If your new residence has a market value higher than your former residence, the portability amount is determined by finding the difference in the assessed value of your former home from its market value. Assume your previous residence has a market value of $500,000 but the assessed value is $300,000. That means that the assessed value of your new home can be reduced by $200,000 for tax purposes due to portability – which can result in big real estate tax savings. The maximum amount that can be ported is $500,000. If you’ve sold a home and did not transfer your prior benefit, you have two years from the time of your sale. For more information on Save our Homes and portability, check with your local property appraiser.

New Mortgage Application Volume Drops 4%

Bob Vaughan

This week marked the first decrease in mortgage application volume in the past three weeks after two straight increases. Refinances made up about 61.4% of total mortgage application volume this past week. Year-over-year refinance activity is down 9%, but this could be expected as last year saw record levels of refinances. Purchase activity was 4% lower this week than a year ago, but again this was expected due to last years high levels.

 

  • The FHA share of mortgage application volume dropped to 9.1% from 9.2% last week.
  • The VA share of application volume dropped to 11.2% from 12%.

Back to Back Rises in Mortgage Application Volume

Bob Vaughan

According to the latest report from the Mortgage Bankers Association, home mortgage application volume increased for the second straight week for the week ending May 14th, 2021. Refinance volume is once again fluctuating to mirror mortgage rates, but over all refinances made up 63.3% of mortgage applications during this past week. Desire to buy a home is still high across the country, but the lack of inventory is remaining a problem for the purchase market. The increasing cost of building materials such as lumber is increasing the average cost to build a single-family home by around $35,000. If this trend continues, the prices of already completed homes will continue to rise also as people are beginning to be priced out of the new home market.

 

  • The FHA share of total mortgage application volume dropped from 9.9% to 9.2% this past week.
  • The VA share of total mortgage application volume increased to 12% from 11.7% this past week.