How Much is Enough?

For all your real estate needs, visit

http://www.rolandlow.com

One of the more difficult challenges to buying a home, whether you’re a first time home buyer or a tenth, is the amount of down payment required.  Generally speaking first time home buyers are the ones who struggle the most with coming up with the down payment.

Recent studies have shown that most people overestimate the down payment that is needed to purchase a home.  The survey conducted of renters and non-home-owners revealed that 39% of those surveyed believed that at least 15% of the purchase price would be required to buy a home.

Asked whether they felt they would qualify for a mortgage, only 28% said they believed they would qualify.  Respondents in this survey were not verified as to whether or not they would qualify, but in other surveys upward of 70% of participants would in fact qualify.

The truth of the matter is that home buyers can purchase a home with as little as 3.5% down.  Tennessee has a program that will enable first time home buyers who qualify to get a mortgage with zero down! Under the program a first time home buyer is someone who has not owned a home for three years or more. Certain restrictions apply.

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615-417-8182 or email me at RolandLow1@gmail.com.

Roland

OPEN HOUSE – Brentwood Beauty – $594,500!!

OPEN HOUSE – Brentwood Beauty – $594,500!!

920 Saratoga Drive, Brentwood

This weekend I will be holding an open house at a property that will surely not last long.  It is a 4 bedroom; 4 full bathrooms and 1 half bath; 3685 square feet; formal living room and dining room, first floor office; den with fireplace; large bonus room; covered deck with stone patio with fountain.  The basement is considered unfinished and is 2464 sq feet NOT include in the square footage above.

It has a three car garage; central vac and over an acre of land in Brentwood.  This home WILL be sold soon.  Stop by today and see what I mean.

Saturday, May 24     12:00 Noon – 4:00 PM

Sunday, May 25     2:00 PM – 4:00 PM

It is located at 920 Saratoga Drive, Brentwood.

Take I-65 to Concord Road.  Go east on Concord Road.  Go past Wilson Pike and turn left on to Saratoga Drive.  Take Saratoga drive to the end when it is a cul de sac.

If this sounds like an ideal house but you cannot attend the open house, contact me today and let me put my experience and expertise to work for you finding a dream home for you.

Roland

The Pitfalls of an Open House for Buyers’

The real estate market has become a “perfect storm” in the last couple of months.  Home prices are rising, although moderately, which has brought more homes on the market; mortgage interest rates remain historically low; banks are easing up on loan requirements; spring is in the air and people are poised to buy.  Overall, people are feeling better about the economy in general and real estate in particular.

One of the most common forms of searching for a house is visiting open houses.  I love open houses.  It is a way for a potential buyer to walk around and get the feel of the house, something that you cannot accomplish through the internet no matter how many pictures you post.

But there is one aspect of open houses that I would strongly caution potential buyers’ about and that is who you are talking too.  Usually when you walk into an open house or a model home, there will be a real estate agent present.  The initial conversation will go something like this on the part of the agent.  “Hi, come on in and look around.  By the way, my name is Susie Q (not her real name) and I am the agent representing the sellers.”

The agent will also provide you with some information about the property, possibly give you a sheet about the property, and will seem very nice and accommodating – and they are.  But the phrase above is very important: “…representing the sellers’.”  That phrase may seem harmless, and in general it is, but it is also an official notification that their role is to represent the sellers and any information that you share with the agent will most likely be passed on to the sellers.

All too often potential buyers will share how much they have been preapproved by their mortgage company.  If they have been preapproved for $300,000 and they share that information with the sellers’ agent, an offer of $290,000 will most likely not be accepted by the sellers’ because they now know that they are approved for $300,000.

Some of the best advice I can give any home buyer is to always get your own REALTOR to represent you in such an important transaction. And if you do visit an open house or a model without your agent, simply inform the agent on duty the name of the REALTOR representing you.

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

Home Buying Made Simple(er)

Home Buying Made Simple(er)

There are a vast number of potential home buyers in this country, many of which are very capable of buying a home, but remain on the fence for a wide variety of reasons.  Some are good reasons, and others are that they simply are not ready to buy a home.

The purpose of this article is to highlight issues of home buying and hopefully give some insight that will help you determine if it is the right time to buy a home.

Make no mistake, owning a home is a lot of work.  If the kitchen sink plugs up – you fix it or pay for someone to fix it.  If the grass needs to be cut –you cut it or pay for someone to cut it.  But in addition to the satisfaction of owning your own place, it is nationally 38% cheaper to own your home versus renting.  The truth be known, if you rent and something goes wrong, you still pay for the convenience of someone else fixing it.

Here are some things to think about if you are even remotely thinking of one day buying a home – these apply whether it is your first home or your tenth home.

First of all, if you are thinking of buying a home, don’t wait until you are ready to move and think you are going to find the home of your dreams.  It takes time and effort and work to make this happen.  I suggest that the earlier you start the better – a year in advance is not too early.

When you buy a home there are a lot of people that work on your behalf to make this happen, many of which are behind the scenes.  These include the obvious and not so obvious: REALTOR, mortgage officer, home inspector, appraiser, closing office, underwriters, contractors for repairs if necessary, movers, termite inspectors and many I am sure I am overlooking.

There are two people that are the focal point of your home buying – the REALTOR and the mortgage officer.  If you ask the mortgage person they will undoubtedly say they are the first person you should contact.  If you ask the REALTOR – you guessed it, they will say they are the first person you should contact.  As a REALTOR I suggest you call me first, but in reality either one is OK.  The important thing is that both positions be brought into the process early on.  If you do contact me first, the first thing I will ask you is whether you have been in touch with a mortgage officer.  If not, I will guide you to do so.

The reason I suggest the REALTOR first is because this position will be the focal point of the entire process and can be a great resource for all the other people you need to have involved including the mortgage officer.

Early on in the process I like to start sending properties on line and asking the clients what they like and don’t like about certain properties.  It is amazing how many times people will say that they want something specific about a house but after a while I learn that is not what they wanted.  For example: I had some clients that insisted on having a ranch home.  We looked at every ranch home this side of the Rockies, but none were what they were looking for.  When I got them to focus on what they liked about each home, I learned that what they wanted was a home with the master bedroom on the first floor.  That is a very different situation and one that we could easily focus on once we identified what they truly wanted.

About the same time it is important that buyers have a discussion with the mortgage person about their credit.  If you do this early enough and there are issues, there may be enough time to correct them before the closing date.  Also, and this is very important – do not make any major purchases or change anything financially without discussing it with the mortgage person first.  I cannot tell you how many times we have had buyers sign a contract to buy a house and then buy all new furniture or a new car right before the closing. It will most likely be enough to disqualify the buyer from the loan.

During this time it is also important to save money for your down payment if you haven’t already done so.  Buyers should expect to put at least 3.5% down for an FHA loan and 10% – 20% down for a conventional loan.  It is important to understand that there are a wide range of options out there and a good mortgage officer will be able to find one that suits you best.  I will also mention that there are some programs out there with zero down, but that doesn’t mean it’s the best option.

As you get closer to the date you would like to make your purchase it is important to decide what you would like to spend on your home.  All too often buyers’ think that they need to spend the full amount that the mortgage company will approve, but in reality, you may want to spend less if you have other things that are important such as traveling, or saving for college for their children.

Once you are at the point of making an offer on a house, the mortgage officer can provide a pre-approval letter.  This is a very important step that the REALTOR will want to provide to the sellers to show that you are a good prospect for purchasing their home.

Do not be discouraged during the process of negotiating.  I have never had a transaction that there were not offers and counter offers.  A good REALTOR will walk you through that process and act on your behalf.  My advice is that if you want this particular home, negotiate in good faith.  Remember, this should be a win-win for sellers and buyers.

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

Home Buyers’ – It’s Time to Cut Loose!!

A recent study of potential home buyers revealed some very interesting information. In the study a “potential home buyer” was someone who wanted to buy a home in the next 24 months. In the study, 56% of the home buyers said they were waiting purchase a home because of fear of being rejected by lenders!

Buyers – It’s Time to Cut Loose!!

The survey also found that 74% of potential buyers who need a mortgage say they have not contacted a real estate agent or a mortgage officer yet to get the ball rolling. The biggest reason given is the misconception that borrowers need a credit score of 770 or higher. In addition, about a third of the potential buyers said they believe their debt-to-income ratio was too high to qualify.

But these fears are greatly overblown. About a third of new loans had a FICO score below 700 and in Tennessee there are programs for as low as 650. Debt-to-income ratios are not as high as many people expect either. The ratio for FHA loans is 28%.

The most important thing to remember is that these numbers are changing constantly. The prices of homes are increasing and the interest rates for mortgages is expected to creep up. It is important that if you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

What’s The Big Hold-Up In the Real Estate Market? – Read On

What’s The Big Hold-Up In the Real Estate Market? – Read On

You cannot pick up a paper or turn on the news without hearing something about the real estate market.  If the market so much as hiccups – “The Market Has Plummeted” the next day “The Market Has Soared.”  But the truth of the matter is that there has been fantastic head way in the real estate market for the last year or two, depending on where you live.

 

The number of short sales and foreclosures has dropped dramatically; mortgage interest rates remain very low; mortgages are easier to obtain and more homes are coming on the market for sale.

But there are two areas that still remain a problem.  The first is the amount of debt that many buyers, especially first time home buyers have, and the second issue is that there are not enough homes on the market, especially in some geographical areas.

As more and more buyers come into the market, sellers are often times winding up with asking price or bidding wars.  This will encourage more potential sellers to place their home on the market.

But there are four reasons why many people who may want to sell, may not.

1. Low Equity: Approximate 19% of the homes on the market have low equity established. A home owner who wants to list his house because that is what they owe, rather than the market price is wasting their time. These homes will undoubtedly stay off the market or will not sell for quite some time.
2. Low Mortgage Rate: Homes owners that may want to sell, but have a very low interest rate may be reluctant to sell their home only to pay a higher interest on the next home they buy.
3. Purchased or refinanced in the past seven years: A recent study showed that 14% of the homes were purchased or refinanced in the past seven years giving the home owners a reduced interest rate. Couple that with the idea that home owners are not moving every few years as in times past, and many of these homes will remain off the market.
4. Company or investor owned: Approximate 3% of the homes are owned by a company or an investor. With home prices dropping so dramatically in the last few years and interest rates so low, many companies and investors swooped up properties. With home prices rising somewhat, but interest rates still low, and rental rates increasing, many of these homes will stay off the market for the foreseeable future.

Whether you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

And The Survey Says: Consumer Confidence in Housing is Hot!

A recent survey across the country indicates that the confidence in the housing market is showing strong gains, and not just in one or two categories, but across the board.

Now is the time to buy or sell!

A year ago only 26 percent said it was a good time to sell a house – now 38 percent believe it’s a good time to sell. To complement the selling aspect; a year ago 52 percent said it was a good time to buy a house – today 69% say it’s a good time to buy.

A majority of those surveyed also stated that it is easier to obtain a mortgage today than it was a year ago. The fact of the matter is that the housing market and mortgage markets are coming together. Requirements for loans have eased considerably and yet the mortgage interest rates are holding steady at around 4.5%. There are programs in Tennessee with little or nothing down.

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please don’t hesitate to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com

Roland

 

Source: Daily Real Estate News / Tuesday, April 8, 2014

Home Prices Pick Up at Fastest Pace in 7 Years

Buying a home is easier than you may think!

Home prices nationwide, which include distressed sales, soared 10.2 percent year-over-year, according to CoreLogic’s February report. It’s the largest year-over-year increase in home prices since March 2006. It also marks the twelfth consecutive monthly increase in national home prices, according to CoreLogic’s report.

When excluding distressed sales, home prices rose 10.1 percent year-over-year in February, according to CoreLogic.

“Nationally, home prices improved at the best rate since mid-2006, marking a full year of annual increases and underscoring the ongoing strengthening of market fundamentals,” says Anand Nallathambi, president and CEO of CoreLogic.

CoreLogic predicts that home prices — excluding distressed sales — will likely rise 11.4 percent year-over-year from March 2012.

“The rebound in prices is heavily driven by western states,” says Mark Fleming, CoreLogic’s chief economist. “Eight of the top ten highest appreciating large markets are in California, with Phoenix and Las Vegas rounding out the list.”

The five states with the highest price appreciation as of February 2013, according to CoreLogic, were:

• Nevada (+19.3%)
• Arizona (+18.6%)
• California (+15.3%)
• Hawaii (+14.6%)
• Idaho (+13.5%)

If you are thinking of buying or selling talk to a REALTOR who can give you the information you need to make an informed decision. You can also visit http://www.rolandlow.com.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

Source: Daily Real Estate News | Thursday, April 04, 2013

 

 

Mortgage Interest Rates

 

The real estate market continues to rebound throughout most of the country.  Some areas, especially those that were hit hard in the recession are showing large rebounds.

Below is a chart of the mortgage interest rates as of April 4, 2014 in the Nashville, Tennessee market.

If you are thinking of buying or selling, talk to a REALTOR who can give you the answers you need to make an informed decision.  One of the most crucial factors you can do when buying is to select a REALTOR and mortgage officer who can work together to make it happen.

For mortgage information call John Phillips, FirstBank, at 615 309-1515.

For all real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

 

What’s In Store for the Housing Market This Spring?

After a year of rapid price appreciation across most housing markets in the U.S., many first-time home buyers are hopeful to enter the market this spring. Recent reports have shown that the harsh winter conditions have dampened home sales and slowed price gains. It is typical for more real estate transactions to occur in the warmer months, and many potential buyers have been idly waiting for the selling season to start. As spring takes hold, here are some things to look for:

Spring 2014 Housing Market

Housing inventory: 2013 was plagued with record-low inventory levels, which made it challenging for some buyers to enter the market. When home prices rise as they did last year, homeowners are usually encouraged to put their houses on the market. As the spring selling seasons begins, it is likely that more homeowners will list their property for sale. However, housing inventory is still anticipated to be low in 2014, according to MSN. Fortunately, the price spikes seen in 2013 are unlikely to be repeated this year, which can provide more affordable options for buyers.

The fixed-rate debate: Many first-time home buyers opt to get a long-term, fixed-rate mortgage. Mortgage rates are still relatively low, which makes these home loans a great option for first-time buyers hoping to live in their home for several years. Buyers are typically searching lock in a low rate for the entire length of their mortgage.

One reason that market trends are shifting is the shrinkage of federal support and mortgage guarantees. This will likely bring more mortgages back into the private market. It was recently announced that the federal government plans to eliminate Fannie Mae and Freddie Mac in the near future, which will change the mortgage market for private lenders. Additionally, mortgage rates may rise as as the Federal Reserve pulls back stimulus spending over the next year. As a result, it is possible that lending standards may soon tighten, which could make it harder for some borrowers to qualify for fixed-rate home loans.

However, this news is not all bad. For one, there is a greater likelihood that fewer mortgages will fall into default and foreclosure with stricter lending practices. The change can also give rise to new hybrid mortgages that involve both fixed and adjustable rates. This means that homeowners can receive a low rate mortgage for a certain period of time before the rate changes based on market conditions. For many borrowers, this type of mortgage can enable them to make a new home purchase and have some stability with mortgage payments. Many homeowners are partial to adjustable-rate mortgages as well because the initial interest is typically much lower than comparable fixed-rate loans, at least initially.
If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.
As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.
Roland

More Banks Lower FICO Score Requirements

More Banks Lower FICO Score Requirements

More banks are lowering minimum FICO score requirements in an attempt to shore up lending for underserved borrowers.

Carrington Mortgage Services is the latest company to announce that it has lowered its minimum FICO score to 550. It also has expanded guidelines on several FHA, VA, and USDA loan programs to aid those with FICO scores below 640.

Wells Fargo, the nation’s largest mortgage lender, said in February that it was lowering its minimum FICO score requirements on FHA-backed mortgages from 640 to 600. The move, bank officials said, was aimed at “opening up our credit box more.”

One in three consumers have a FICO score below 650, according to Carrington. The lender is refocusing its business on targeting the underserved segment and eliminating conventional and jumbo loans. It is limiting its acceptance of wholesale submissions with FICO scores above 680 starting April 1, except for VA loans, HousingWire reports.
“Effectively meeting the needs of clients in the underserved market requires the ability to both originate quality loans and appropriately service them after the fact,” says Ray Brousseau, executive vice president of Carrington’s mortgage lending division. “Both Carrington’s lending platform and specialty servicing business were created to serve this particular market segment. That uniquely positions us as the lender of choice for this population of borrowers and the mortgage brokers and real estate agents who work with them. Our message is clear: You can count on Carrington to serve the underserved and get the tough loans done right.”

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com

Roland
Source: REALTOR Magazine

 

Economist: 3 major things you need to know about the 2014 housing market | REwired

Economist: 3 major things you need to know about the 2014 housing market | REwired.

Spring Hill Real Estate Market

Spring Hill Real Estate Market

For anyone looking to buy a home now is the time – not next month, next week or tomorrow – but now!  The market in Spring Hill/Thompsons Station area is still a good value for your money, but as you can see from the graph below the market is heating up.

The median price of homes in Spring Hill for the last twelve months is $173,500.  The median list price is $276,360.  The variance is due in large part to lower priced homes selling faster than more moderately priced homes.  The number of homes on the market in Spring Hill – both Maury and Williamson Counties is 319 active listings.  That number dropped 8% from the previous month.  That drop in inventory will undoubtedly result in higher prices for sellers down the road.

Real Estate Market Trend for Spring Hill, Tennessee

Regardless of the median listing prices or the median selling prices, the important fact to look at is the overall upward trend in both listing and sale prices.  This trend is expected to continue for some time to come.

If you are thinking of buying or selling talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

Home Buying vs. Renting

 

Home Buying vs. Renting

A recent report by Trulia stated that it is now cheaper to buy a home than rent in all 100 large U.S. cities.  The low mortgage interest rates have kept homeownership at a very affordable rate; whereas a shortage of rental property has resulted in sharp increases in rent.

Trulia said that a 30 year fixed rate of 4.5% resulted in buying being 38% cheaper than renting nationally.

While home buying continues to be a great option, many first time home buyers are struggling with credit scores; high debt ratio and other factors that may hinder obtaining a mortgage.

That being said, there is a lot of misinformation that is being reported.  The Trulia report went on to give examples of the cost of buying a home.  In the examples they used they consistently figured in a 20% down payment.  Most home buyers, especially first time home buyers, do not have 20% to put down on a house, and the truth of the matter is that there are numerous programs out there that will require as little as 3.5% down.

In addition, many states, including Tennessee, have programs for first time home buyers to help them with their down payment.

One of the best bits of advice I can give, especially to a first time home buyer, is to talk to a REALTOR earlier rather than later.  I suggest that if you would like to own a home, a year before your target date is not too early to start the process.

If you are thinking of buying or selling talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, or if you have questions, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

Source: Housing Wire Magazine / LinkedIn

Steps to Buying a Home This Spring

Steps to Buying a Home This Spring

With the economy clearing turning around and mortgage rates still extremely low, this spring will be an ideal time to buy a home.  If you are thinking of selling, this is also an ideal time to sell as interest rates for buyers are low enabling them to spend more on the house and less on the interest.

If you are a first time home buyer the sooner you start the process the better.  All too often first time home buyers wait too late to begin the process and then find themselves under the gun to accept a home that is not ideal, or they wind up extending their lease because they have run out of time.  If you are renting and want to buy a house, contacting a REALTOR a year in advance is not too soon – the sooner the better.

If your goal is to buy a house in the next year make sure that everything you do is taking you in that direction.  For example:  ensuring that your finances are in order is a primary undertaking, but doing some things that may seem to make sense may actually do you more harm than good.  That is why it is critical to talk to a REALTOR who can steer you in the steps you need to take.  One of the most important things a REALTOR can do is to get you in touch with a mortgage officer who can help you obtain a mortgage that is right for you.

One of the first things many home buyers will do is to begin applying on line for home loans from many different sources.  This can actually harm your credit score.  A good mortgage officer will sit down with you and analyze your financial status and make recommendations of how to improve your score or to advise you how to maintain your score.

All too often home buyers will come in the office thinking that they are ready to buy a house and they have spent the last year or so paying off and closing their credit cards, but they wind up with little or no cash for the funds they need.  Often time there is a fine balance between the cash you have and the credit cards you need to pay down.  This is where a professional REALTOR and mortgage officer team can be a big help.

For full disclosure, let me be perfectly honest with you.  If you talk to a mortgage officer first they will undoubtedly tell you that you should select a mortgage officer first.  If you talk to a REALTOR they will undoubtedly tell you to select a REALTOR first.  In reality it makes no difference which you select first as long as they are both working well together.

That being said, I will say that as a REALTOR I do believe it is more productive to select a REALTOR first, and here is why:  The REALTOR will be working with you every step of the way.  A REALTOR can help you select a mortgage officer, the home you are searching for, a home inspector, closing company, title insurance, home owners insurance company, a moving company, lawn service, painter if needed and on and on.  The REALTOR is more of a focal person in this transaction.  The mortgage officer, although certainly critical to the process, will deal with only one aspect of the transaction.

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to email me at RolandLow1@gmail.com.

Roland

5 Tips to Help Clients Improve Their Credit Score

5 Tips to Help Clients Improve Their Credit Score

No credit or a bad credit score can be an obstacle to home buying, but there are steps that clients can take to help their credit score.
1. Get a credit card…really!  A credit card is a credit-building tool when used correctly. Charging a few affordable purchases each month, and then pay the bill in full (before the due date), will build up credit.  However, it is important to not miss or make any late payments to avoid the interest backlash.

2. Keep an eye on credit card balances.  On the other side of the coin, it is important to only use credit cards for purchases that could easily be paid out of pocket.  Racking up big balances can hurt your credit score, regardless if the balance is paid in full.  It’s a good idea to stick to 10 percent of the credit limit.

3. Review credit report and fix errors. Because of the number of errors found on credit reports, people are entitled to a free credit report each year, and they should get into an annual habit of requesting and reviewing their report. If they spot incorrect credit limits, closed accounts, or other errors on their credit reports, they should dispute them right away.

4. Leave paid debts on credit report.  Not all old debts are bad. Documentation of past debts, such as a car loan, provides a track record of how people have handled and paid debts, which can be good for their credit. The longer the history of good debt, the better it is for the score.

5. It doesn’t hurt to ask.  If your clients have debt and are looking to pay it off quickly, simply asking the lender if they will lower the interest rate may work in their favor.  If there is one or two late payments on their statements, suggest that they ask for a goodwill deletion, which can payoff in the long run.

If you are thinking of buying or selling, talk to a REALTOR who can give you the answers you need to make an informed decision.

As always, if I can help with any of your real estate needs, please don’t hesitate to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com

Roland

Source: REALTOR Magazine

 

 

Top 10 Tips for Mortgage Borrowers for 2014

Top 10 Tips for Mortgage Borrowers for 2014

The clock is ticking for buyers and homeowners who want to grab a low mortgage rate in 2014. But if you stay on top of your game, keep your finances in order and act quickly, you can still grab attractive mortgage deals.

These 10 mortgage tips can help you with your mortgage decisions in 2014.

1.       Document your finances

Lenders will be extra diligent when underwriting home loans in 2014, as new mortgage regulations go into effect in January. The rules put pressure on lenders to verify that borrowers have the ability to repay their loans.

Keep good records of your finances, including bank statements, tax returns, W-2s, investment accounts and any other assets you own. Be ready to explain any unusual deposits to your accounts. Yes, the $500 that Grandma deposited in your account for Christmas could delay your loan closing if you can’t prove where the money came from.

2.       Lock a rate as soon as you can.

Rates will likely climb in 2014 as the Federal Reserve is expected to reduce the pace of the economic stimulus program that has long helped keep rates low. If you are planning to get a mortgage, lock in a rate as soon as you are comfortable with the numbers.

3.       Refinance now – if you still can.

Many homeowners lost the opportunity to refinance at a lower rate when rates jumped in 2013. But those who are still paying more than 5 percent interest on their home loans might still have an opportunity.

If you think you may be able to save with a refinance, but you are not sure, it doesn’t hurt to try. Speak to a loan officer and take a look at the numbers to see if refinancing still makes financial sense for you after you consider how long it will take to break even with the closing costs.

4.       Buyers – use your bargaining power

As mortgage rates climbed, lenders lost a big chunk of their refinance business. In 2014, they will turn their attention to homebuyers and will fiercely compete for their business. Buyers should take advantage of bargaining power they gain with that increased competition. Shop around for the best deal and look beyond the interest rate on the loan.

5.       Learn your rights as a borrower

Mortgage borrowers will get many new rights as consumers this year when new mortgage rules created by the Consumer Financial Protection Bureau go into effect in 2014. If you run into issues with your mortgage servicer in 2014 or fall behind on your payments, make sure you are aware of your rights and put them to use.

6.       Take good care of your credit

It’s nearly impossible to get a mortgage without decent credit these days. That will continue to be the case in 2014. If you are planning to get a mortgage, monitor your credit history and score until your loan closes. The best mortgage rates usually go to borrowers with credit scores of 720 or higher. You may still get a mortgage with a score of 680, but lower scores will mean higher rates or higher closing costs.

7.       Don’t overspend

Lenders don’t want to give out loans to borrowers who will have little money left each month after they pay their mortgages and other debt obligations such as credit cards and student loans. If that becomes the case, the lender will tell you that your DTI, or debt-to-income ratio, is too high and you don’t qualify for a loan. Try to keep your monthly debt obligations, including your mortgage and property taxes, below 43 percent of your income.

8.       Consider alternative mortgage options such as ARMs

Mortgage rates are rising, but there are alternatives to grab a lower rate, depending on your plans.

A homeowner planning to keep a house for seven to 10 years could take advantage of lower mortgage rates by choosing a seven- or 10-year ARM instead of the 30-year traditional fixed-rate mortgage. Rates on adjustable-rate mortgages can be as much as one percentage point lower than on fixed-rate loans.

If you are not sure for how long you plan to keep the house, a fixed-rate loan is probably the better choice.

9.       Considering an FHA Loan? –

FHA loans have long been popular among first-time homebuyers because they require low down payments and have somewhat less strict underwriting standards than conventional loans. But they come at a price. Mortgage insurance premiums on FHA loans are likely to continue to rise in 2014, and after recent changes, the borrower is now required to pay for mortgage insurance for the life of the loan. Try to qualify for a conventional loan before you apply for an FHA mortgage.

10.   Don’t panic

Yes, mortgage rates will likely climb in 2014. But don’t panic, thinking you have to buy a home now to grab a low rate. If you are shopping for a home, do your best to move quickly, but remember that this is one of the biggest financial decisions of your life. Get your mortgage and buy your home when you feel ready.

If you are thinking of buying or selling a home, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please don’t hesitate to drop me an email at RolandLow1@gmail.com.

Roland

source: Polyana da Costa, Bankrate.com

 

Why Buying is Better Than Renting

Reason 1: Mortgages are cheap

Even though rates have spiked about 1% over the past year or so, at a 4.5% interest rate, 30-year mortgages are still very cheap on a historical basis. This is significant because in many cases, it is actually cheaper on a monthly basis to own a home than rent. In the market I live in, $350,000 gets you a relatively basic three-bedroom home, and I live in a hurricane-prone area, so we have to pay flood and windstorm insurances, which brings the total mortgage payment on a $350,000 house to about $2,400. The same house would easily command $2,700 per month in rent.

Reason 2: Your life, your way

Want to get a new family pet? Go for it! Want to landscape your yard, put in a pool, add on another bedroom, or remodel your kitchen? These are some things that are out of the question in virtually any rental situation and can be as easy as applying for a building permit if you own your own home.

If you’re a dog lover, finding an apartment can be a nightmare. Many of my friends who rent their houses are stuck with kitchens that look like something from a 70s TV show, and their landlords seem to be in no rush to update anything. The freedom to make your home truly your own is one of the best reasons to buy a house.

Reason 3: Credit

This may seem somewhat unimportant, since most people in a position to buy a house already have very good credit. Regardless, a mortgage will certainly report to the credit bureaus, and a rental company will almost certainly not. There are few items on a credit report that demonstrate financial responsibility and general stability in life better than a long history of on-time mortgage payments.

Reason 4: Equity

Having equity that can be tapped into if necessary is a big plus for homeowners. Having equity in your home is not only important to help pay emergency expenses, home improvements, or your kid’s college tuition, but simply having the equity available to you makes it much easier to get a loan for almost anything else. If you have, say, $75,000 in home equity, a bank will feel much better loaning you $20,000 to buy a boat than if you were renting an apartment.

Reason 5: Not an investment, but still much better than renting for your financial health

Even though I’ve said your home is not a good investment, at least in the traditional sense of the word, it is still exponentially better for your long-term financial health than being a lifelong renter.

Let’s say you buy a $200,000 house, and you put $40,000 down. This would make your mortgage payment $810.70 for 30 years at a 4.5% interest rate. At the end of the 30 years, you own the home free and clear, and hopefully it’s appreciated significantly in value.

If you pay the same amount in rent, after 30 years, you’ll have paid a total of $291,852 in housing payments. This is also a glorified scenario, as rental rates usually rise over time, making your actual total even more. At the end of 30 years, you’ll have absolutely nothing to show for all of the money you spent.

So, while owning your home only provides 3%-5% annual returns on a long-term basis, this is still far better than paying out hundreds of thousands of dollars and not building any equity whatsoever. Homeownership is still the way to go!

if you are thinking of buying or selling, talk to w REALTOR who can give you the answers you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to email me at RolandLow1@gmail.com.

Roland

A Vacation Rental Could Make Your Trip Special

A Vacation Rental Could Make Your Trip Special

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

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Roland

 

Mortgage Interest Rates Remain Stable

The mortgage rates are remaining very stable as the real estate market continues to rebound.  Below are examples of rates as of Tuesday, November 19, 2013.

You can now follow me on my Social Media sites Facebook and Twitter for up to date information and some fun articles.

My Facebook Page: https://www.facebook.com/pages/Roland-Low

My Twitter Page: https://twitter.com/RolandLowRE

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to email me at RolandLow1@gmail.com.

Roland