Emanuel Stewart - Reliant Home Lending

6 Money Making Tips For The First Time Home Seller

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6 Money Making Tips For The First Time Home SellerToday’s homebuyers can have specific ideas and personal preferences that influence their decision on what attracts them to a particular property. While some prefer a fixer-upper, many desire a home that’s as close to turn-key as possible.

First time home sellers may help expedite the process with these six home selling tips. 

Determine Right Listing Price

A home priced competitively in its market typically sells faster. Professional REALTORS® know the area and look at comparative listings to help determine the right listing price.

First time home sellers often think their home should list higher, and this can turn away buyers. Trust a real estate agent to know the right price that will attract potential buyers for a sale that makes all parties happy.

Curb Appeal Makes a Difference

Great curb appeal has the power to attract buyers and create a positive first impression. Simple enhancements add to curb appeal:

  • Mow the lawn or make sure the walk/driveway is clear of snow/ice
  • Prune overhanging branches and trim bushes
  • Remove any sickly or dead vegetation
  • Replenish missing mulch or rocks in landscape beds
  • Replace worn house numbers and/or mailbox
  • Add fresh potted plants to porch for pop of color
  • De-clutter yard by removing lawn ornaments/art and all kids’ toys
  • Have all exterior lighting in working condition

A fresh coat of paint on the front door, clean windows, and a sidewalk swept free from leaves and debris also add to the overall welcoming look. 

De-clutter and Depersonalize

Once potential buyers enter the home, it’s time to make another important impression. Homebuyers should be able to visualize themselves living in the space.

De-cluttering and depersonalizing the home helps. The fewer items in a room, the larger the space feels. Key areas to de-clutter include the kitchen and bathroom, in particular the countertops. Remove all personal items, storing out-of-sight in a closet or cabinet. 

In addition, remove personal photographs and large collections if possible. Children’s rooms don’t need to be completely depersonalized, but it’s essential to de-clutter the space to show it to its best advantage.  

Repairs and Replacements

Every home has a few small items that need repair but have fallen to low priority. Before listing the home, take the time to make these repairs and replacements.

Tighten that loose cabinet in the kitchen, replace the torn bathroom window screen, and refresh the caulk in the showers. Sometimes it’s the little things that turn off homebuyers and these small repairs may be the tipping point for a sale. 

Offer the Extras

In a competitive market, offer extras to entice buyers. Generally, these extras are appliances that stay with the home as part of the sale. Other extras a seller may include within the price of the home are items like window treatments and outdoor accessories like patio furniture. 

Consider a Pre-inspection

A pre-inspection can help reduce concerns potential buyers have regarding the home’s current condition. It’s a way to reassure buyers that the house doesn’t have any hidden issues.

However, getting a pre-inspection doesn’t mean homebuyers won’t want their own home inspection, too. Consult with a real estate professional to help determine if a pre-inspection may be helpful.

First time home sellers don’t have to be overwhelmed with the process. With the right preparation and the help of a professional real estate agent, home selling can move swiftly. 

 

Should You Consider an Adjustable Rate Mortgage For Your Home Purchase?

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Should You Consider an Adjustable Rate Mortgage For Your Home Purchase?With mortgage rates finally looking like they may move upward a bit as the overall market improves the adjustable rate mortgage starts to come into play again. Better known as the ARM home loan, the adjustable rate mortgage can be a flexible, powerful tool, depending on how it is used.

ARMs Can Help Save On Total Interest Expense

When rates were higher years ago, the ARM was an alternative way to obtain financing for a home without paying as much in interest with every payment. This was ideal for folks who felt that a few years forward the regular market rates would drop or they didn’t plan to stay in the same home for a number of years.

By trading away the mundane predictability of a 30-year fixed loan, the borrower was rewarded with a lower cost loan via an ARM. However, after a short period, anywhere from six month to ten years, the ARM would reset and the rate charged would change to a specific market index.

ARMs became all the rage in the early and mid-2000s as people bought homes to then sell them quickly with rising property values. It was low cost interest paid for large sums of financing, which was then paid back and profits were made just holding a home two years or so and well within the typical ARM period. However, when the real estate market went south a number of years back, many had to hold onto homes longer and rates reset to a higher, floating rate index.

The Advantages of Adjustable Rate Mortgages

Today, the advantage of the ARM again presents itself as rates begin to rise, offering again lower interest rates for home financing for a typical one to ten years. But these tools still include the rate reset after the intro period to consider, and with mortgage rates on an upward trajectory for the next few years it’s worth noting that the loan may cost more when the switch happens.

Thus a borrower should remember to look at the ARM as a shorter-term borrowing tool. A few options that can off-set the potential added interest rate costs in the future are:

 

  • sell the home prior to the reset date while verifying that there is no pre-payment penalty period
  • sell the home for a substantial amount more than it was bought for based on price appreciation or property improvement
  • refinance to a fixed-rate loan at a later date to avoid potentially higher index-based floating rates

 

The same caveat from a decade ago applies to today’s ARMs: they can be extremely valuable for up-front borrowing savings, but borrowers need to always remain aware of the included reset date and what it means for further financial obligations down the line.

As always, talk with your trusted mortgage loan professional to examine the best course of action for your personal situation.

Questions and Answers Regarding The Veterans Loan Program

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Questions and Answers Regarding The Veterans Home Loan ProgramOwning a home is important to military veterans just like the majority of other consumers.  The Veteran’s Administration has provided an exceptional benefit for those who have served (or are currently serving) in any of the armed forces. And this VA Loan Program is helping thousands of service members achieve the goal of home ownership.

There are a number of questions that come up regarding the fees and qualifications of the VA Loan Program.  

What Are The Specific VA Fees?

Many veterans and active military personnel like the fact that VA loans don’t require private mortgage insurance (PMI). PMI has served as a thorn in the side countless home buyers who couldn’t manage a 20 percent down payment. The good news is that VA loans don’t requre mortgage insurance, even with no down payment at all.

To compensate for the absence of mortgage insurance, the government charges most borrowers a VA Funding Fee. Depending on individual circumstances and the type of funding you need (first-time home purchase versus refinance, for example), this fee can range from.5 percent to 3.3 percent of your mortgage amount.

Fortunately, applicants on disability and surviving spouses may be exempt from this requirement. 

Are There Any Administrative Concerns Regarding VA Home Loans?

VA loans are generally as easy to attain as any other government or conventional mortgage loan products, but they do have some unique qualifications to consider. These issues just need to be known and addressed appropriately throughout the transaction to ensure it goes smoothly.

For instance, if you and your spouse both serve in the military and you want to buy a home together, each of your VA entitlements must go through separate processing and approval procedures.

A VA loan also calls for a specific type of home appraisal called a Minimum Property Requirements (MPR) inspection. This should not be confused with the traditional home inspection. The MPR is the required appraisal by an independent VA appraiser. These appraisers typically dig into the home’s tiniest details, which can also be helpful by uncovering potential issues with the home.

Any home improvement or construction work currently under way may delay the approval process. You can minimize these issues by making sure that both your lender and your REALTOR have extensive experience in working with VA loans.

How Can A VA Loan Save Me Money?

Properly finessed, a VA loan for the right amount, and at the right interest rate, can edge out conventional loans. For instance, that VA Funding Fee, unwelcome as it might seem, could cost substantially less than the down payment you might otherwise put down on a conventional loan — without the need to pay mortgage insurance premiums for the first several years of your home ownership.

While the monthly mortgage payments might not look dramatically different on paper, even a savings of $100 a month can make an enormous difference to your financial health over the life of your mortgage loan.

VA loans can indeed provide some important benefits and buying power for our nation’s past and present military service professionals. Take the time to examine all your options so you can obtain the mortgage loan package that best serves your specific needs and goals.

Ultimately, however, you should probably sit down with a skilled mortgage professional who can run these numbers for you in detail and advise you on your wisest course of action.

The Younger Mortgage Market: Move Over Millennials, Gen Z Is Moving Into Home Ownership

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The Younger Mortgage Market Generation ZAlthough the majority of the Generation Z population make $25,000 or less per year, they really have embraced the American Dream of home ownership. According to a recent survey by Zillow, 97 percent of Gen Z renters asked were confident they will be homeowners in the future, whereas only 55 percent of Millennials were

82 percent of Gen Zers who were renting identified home ownership as the most important component of the American Dream — more than Millennials, even though that group is presently the largest segment of homebuyers, according to data from the National Association of Realtors.

So Who Exactly Are Generation Z?

While precise definitions vary, Generation Z are generally known as people born from the late 1990s to early 2000, and they are just beginning to come of age in the housing market. Many currently are renters, but they do not appear content to stay renting for long.  

That could be due to seeing rental prices skyrocketing across the country, or less than ideal rental situations may be a factor — nearly half are living in spaces less than 1,000 square feet, and 82 percent of those Gen Zers share rent with another person, according to MarketWatch.

This Generation Is Bigger Than The Millennials

The Generation Z crowd outnumbers their older Millennial peers by about one million, positioning them to be a force driving the home buying and building market soon. While they are experiencing one of the most competitive housing markets in recent history, that doesn’t seem to phase Gen Zers.

More than 77 percent say they would forgo business ownership in favor of home ownership, and more than 50 percent would be willing to give up social media networking for a year to obtain their dream home, according to a recent Time Magazine survey.

Three in five teens have already begun saving toward their dream home, so while most Gen Zers hope to be homeowners by the age of 28, (three years lower than the national average) they are getting a good start toward meeting that goal. Due to their savvy tech skills and inherent digital nature, Gen Zers are poised to buy homes more efficiently and faster than previous generations of renters.

When navigating the rental market, 33 percent of Gen Z renters are able to find new accommodations in a month or less, probably because they submit more applications per search, at approximately 3.1 applications per property search versus 2.4 for Gen Xers and 2.2 for Baby Boomers, according to a recent Zillow report.

 

What’s Ahead For Mortgage Rates This Week – April 2nd, 2018

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What's Ahead For Mortgage Rates This Week April 2nd, 2018 Last week’s economic releases included readings from Case-Shiller, pending home sales, and consumer sentiment. Weekly reports on mortgage rates and first-time jobless claims were also released.    

Case-Schiller: Home Prices Continue to Rise

According to Case-Shiller Home Price Index reports for January, U.S. home prices continued to rise at a rapid pace with the national home price index rising at a seasonally-adjusted annual rate of 6.20 percent. Case-Shiller’s 20-City Home Price Index rose by 6.40 percent year-over-year. Seattle, Washington held the top spot with year-over-year home price growth of 12.90 percent.

Las Vegas, Nevada reported year-over-year home price growth of 11.20 percent. After a lull in home price growth, San Francisco, California home prices grew by 10.20 percent year-over-year. The only city to lose ground in the 20-City Index was Washington, D.C., which posted a drop of 0.40 percent in January, but posted a year-over-year gain of 2.40 percent.

David M. Blitzer, Chairman of the Dow Jones S&P Indices Committee, said that rapidly rising home prices were all about supply and demand. Growing demand and slim supplies of homes for sale were again cited as the primary reason for rapidly rising home prices. Faced with limited choices and rising mortgage rates, more buyers could be sidelined until demand subsides or inventories of available homes increase.

Mortgage Rates, New Jobless Claims Fall

Freddie Mac reported slight drops in average mortgage rates last week. 30-year mortgage rates dropped by one basis point to 4.44 percent; 15-year mortgage rates averaged one basis point lower at 3.90 percent, and rates for 5/1 adjustable rate mortgages also dropped by one basis point to 3.66 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 fell last week with 215,000 new claims filed. Analysts expected 230,000 new claims to be filed based on the prior week’s reading of 227,000 new claims filed.

Consumer Sentiment dipped lower in March with an index reading of 101.4, which fell below expectations of 102.0 and February’s index reading of 102.0.

What‘s Ahead

This week’s scheduled economic reports include readings on construction spending, and labor-related readings on ADP payrolls, Non-Farm payrolls and the national unemployment rate. Weekly readings on mortgage rates and new jobless claims will also be released.

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