First-Time Homeownership Driven By Millennials
According to the National Association of Realtors, first-time home buyers are getting off the sidelines and purchasing homes. The share of home purchases by first-time buyers rose to 35% this year from 32% last year. This is a great sign that the job market is finally getting better for those who have less experience in the workforce. The low mortgage interest rates are also helping with...Published Interest Rates Misleading
There has been a lot of buzz lately regarding the difference between the published interest rate and the rate that is actually offered to borrowers. The interest rate published as the “average rate” by Fannie Mae and Freddie Mac is always lower than the actual interest rate offered by mortgage lenders or brokers. The reason for this discrepancy are loan level pricing adjustments “LLPA”. The published rate is the rate offered to borrowers with no negative loan level pricing adjustments. These can include credit score, loan to value, property type, and many other factors. When you are shopping for your next home loan keep in mind that you probably will not qualify for the “average rate” published on...Fannie Mae Day 1 Certainty
Day 1 Certainty is a new offering Fannie Mae is giving their lender partners. This should mean greater speed and simplicity when lenders deliver loans to Fannie Mae. This will increase efficiency for lenders when verifying income, assets, and employment. There will also be additional improvements for customers eligible for a property inspection waiver (PIW). This efficiency should mean the an easier and more hassle-free loan process....Referral Partners Matter
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...Having the Nicest Home on the Block a Challenge
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:...Connect With Us
