Taking the Fear out of the Mortgage Process

 

Taking the Fear out of the Mortgage Process | Simplifying The Market

A considerable number of potential buyers shy away from jumping into the real estate market due to their uncertainty about the buying process. A specific cause for concern tends to be mortgage qualification.

For many, the mortgage process can be scary, but it doesn’t have to be!

In order to qualify in today’s market, you’ll need to have saved for a down payment (the average down payment on all loans was 11% last month, with many buyers putting down 3% or less), a stable income and good credit history.

Throughout the entire home buying process, you will interact with many different professionals, all of which perform necessary roles. These professionals are also valuable resources for you.

Once you’re ready to apply, here are 5 easy steps that Freddie Mac suggests to follow:

https://goo.gl/sylSJD


Posted on October 31, 2016 at 5:02 pm
Bradley Mulliner | Posted in Buying/Selling Tips, Helpful Articles | Tagged , , ,

Starting to Look for a Home? Know What You WANT vs. What You NEED

In this day and age of being able to shop for anything anywhere, it is really important to know what you’re looking for when you start your home search.

If you’ve been thinking about buying a home of your own for some time now, you’ve probably come up with a list of things that you’d LOVE to have in your new home. Many new homebuyers fantasize about the amenities that they see on television or Pinterest, and start looking at the countless homes listed for sale with rose-colored glasses.

http://https://goo.gl/0PD3ql


Posted on October 19, 2016 at 4:41 pm
Bradley Mulliner | Posted in Buying/Selling Tips, Helpful Articles, new home | Tagged ,

“2016” Best Real Estate Markets!

Just how strong is our real estate market? According to an article recently reported by New York Times citing the U.S. Census Burear data, the sales of new single family homes were higher this past July that in nearly the past 10 years.

In a study performed by Wallet Hub's analysts which compared 300 U.S. cities across 16 key metrics to help prospective home buyer find the most attractive real estate markets, Portland, Hillsboro and Beaverton all ranked in the top 50.

Based of the findings o

Source: WalletHub for article.

 

 

 


Posted on September 12, 2016 at 5:19 pm
Bradley Mulliner | Posted in Helpful Articles |

Yes Curb Appeal Matters in a “HOT MARKET”

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In todays “HOT MARKET” it is still a matter of importance before listing your home to remember – You only make a first impression once.

Many sellers are under the assumption that their home will sell as it is.  This may be so, but do you want to risk not getting the highest price possible.  This all starts with the first impression.  This first photo seen on line is usually the outside of the home, this first thing a buyers see when driving past the home is the exterior.  Why not take the extra effort in making  the curb appeal of your home the best you absolutely can before listing your home.

Here are a few simple suggestions that will not break the bank but will have a tremendous effect on the curb appeal of your home.

Entrance

  • Repaint the front door and replace the hardware
  • Update the house numbers
  • Add or update light fixtures by the entrance
  • Rinse or sweep the driveway regularly and reseal holes and cracks

Roof

  • Check your roof for any missing or badly curled or damaged shingles that need to be replaced.
  • Clear all gutters and downspouts of any debris

Landscaping

  • Trim any overgrown shrubs, remove weeds and tidy up planting areas.
  • Add colorful flowers and shrubs where possible
  • Add new barkdust if this is something that you already have in place.
  • Keep the lawn trimmed

Fence

  • Walk the fence looking for loose slats or missing components. Make sure all the latches and gate are working properly
  • repaint if necessary

Overall

  • Wash everything- the windows, front door, porch and garage doors.
  • Pressure wash the driveway and sidewalks and siding.

These are just a few simple things that will help improve the overall curb appeal of your home.

Remember Selling your home is work and buying a home is fun, make your home stand out to the buyers.

 


Posted on May 20, 2016 at 4:15 pm
Bradley Mulliner | Posted in Buying/Selling Tips, Helpful Articles | Tagged , , ,

Unwarranted condo? Should I buy?

Should you buy a condo that is unwarranted?  This is a great question.  What exactly does it meant to be unwarranted?  “Condo projects and properties which don’t meet Fannie Mae and Freddie Mac warrantability standards are known as non-warrantable. Meaning the financing may be harder to obtain” says Gina Pool-The Mortgage Reports.

“Condo projects and properties which don’t meet Fannie Mae and Freddie Mac warrantability standards are known as non-warrantable.

Non-warrantable condos are more challenging to borrow against.

Typically, a condo is considered warrantable if:

  • No single entity owns more than 10% of the units in a project, including the developer
  • At least 51% of the units are owner-occupied
  • Fewer than 15% of the units are in arrears with their association dues
  • There is no litigation in which the homeowners association (HOA) is named
  • Commercial space accounts is 25 percent or less of the total building square footage

Because of these rules, some of the common property types which fall into the non-warrantable category include condotels, time shares, fractional ownership properties, and other projects which require owners to join an organization, such as a golf club.

Manufactured housing projects and other developments which are not legally considered real estate are also excluded from warrantability, including house boat and motor home projects.

When you’re buying a condo, one of the first questions you should ask your real estate agent or lender is related to the building’s warrantability.

A warrantable condo will get you access to lower mortgage rates than a non-warrantable condo because warrantable condos are lower risk to the bank.” According to a recent article written by Gina Pool- The Mortgage Reports.

As a buyer it is very important to do your due diligence in determining all the facts about a condo development before making the decision to purchase.  You will need to have a detailed conversation with both your agent and lender to make sure you fully understand the risks involved in purchasing an non-warrantable condominium.


Posted on April 8, 2016 at 5:27 pm
Bradley Mulliner | Posted in Uncategorized |

Appraisal Woes in 2016?

“The fourth quarter RESI found that title agents continue to believe that property valuation issues will be the most likely cause of title order cancellation over the coming year.”

So far this year I have already had to deal with a low appraisal and I have had other agents comment on the same issue, especially when the appraiser has been out of area appraiser. This caught both myself and the listing agent off guard as we both had supporting comps that supported both the listing price and the offer price.

“This shouldn’t come as a surprise. In a housing market where supply is very low and demand is very high, home values increase rapidly. One major challenge in such a market is the bank appraisal. If prices are jumping, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the price when performing the appraisal for the bank.”

WORD FOR THE WISE

If you are listing your home and expect offers above listing price, be prepared for the conversation that the appraiser may not show the same value as the offer presented.  Make sure there is a significant down payment and that you have a plan in place for negotiation in this situation.

If you are a buyer and you not putting a significant down payment down on a home, your agent had better be sure that the offer is supported by comparable comps and as recent as possible. Another buyer beware opportunity for the buyer to avoid the pit falls of not getting the home you love because of the appraisal.

Bottom Line

“Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be even more difficult than the first. ” According to an article by Keeping Current Matters.

Let’s get together and discuss how this may impact the sale of your home.


Posted on March 4, 2016 at 4:25 pm
Bradley Mulliner | Posted in Buying/Selling Tips, clients, Helpful Articles, new home owners, Uncategorized |

“Harvard: Why Owning A Home Makes Sense Financially”

Harvard: Why Owning A Home Makes Sense Financially | Keeping Current Matters

Eric Belsky, the Managing Director of the Joint Center of Housing Studies at Harvard University expanded on the top 5 financial benefits of homeownership in his paper –The Dream Lives On: the Future of Homeownership in America.

Here are the five reasons, each followed by an excerpt from the study: 

1.) Housing is typically the one leveraged investment available.

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

2.) You're paying for housing whether you own or rent.

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.” 

3.) Owning is usually a form of “forced savings”.

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

4.) There are substantial tax benefits to owning.

“Homeowners are able to deduct mortgage interest and property taxes from income…On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5.) Owning is a hedge against inflation.

“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”

Bottom Line

We realize that homeownership makes sense for many Americans for an assortment of social and family reasons. It also makes sense financially. If you are considering a purchase this year, contact a local professional who can help evaluate your ability to do so.

 


Posted on February 17, 2016 at 10:14 pm
Bradley Mulliner | Posted in Buying/Selling Tips, clients, Helpful Articles, new home, new home owners, Real Estate Activity |

What is the forecast like?

Holding Firm Against the Tide | Realtor Magazine

 

Steady U.S. economic growth will help lift home sales moderately in 2016, but persistent inventory shortages will continue to put upward pressure on prices, holding back first-time buyers. That’s a thumbnail of the year ahead for home sales, according to NAR Chief Economist Lawrence Yun.

Home buyers are difinately feeling the pinch as they are trying to find homes to purchase.  Portland and its surrounding areas found the lowest months of inventory in the month of Decmeber.  What is the forecast like for 2016? click on this article for a glimpse of whats to come in 2016.

http://realtormag.realtor.org/news-and-commentary/economy/article/2016/01/holding-firm-aga


Posted on February 2, 2016 at 12:15 am
Bradley Mulliner | Posted in Uncategorized |

Did You Know?

https://bcmthekeytoyournewhome.wordpress.com/2016/01/06/did-you-know

"For years, first-time home buyers have made up around 40 percent of all buyers. However, since the recession, this percentage has been shrinking. In 2015, they made up just under 30 percent of the market share, according to the National Association of REALTORS®. "

As a Realtor in the Portland and SW Washington markets, I have realized the need to help get new buyers educated in the process of buying a home. In a market that is growing as rapidly as our's is, first time home  buyers need to know the ins and outs before even looking for a home.

This article discusses this very topic.

 The ‘Missing Link’ in Housing

Daily Real Estate News | Tuesday, January 05, 2016

 

For years, first-time home buyers have made up around 40 percent of all buyers. However, since the recession, this percentage has been shrinking. In 2015, they made up just under 30 percent of the market share, according to the National Association of REALTORS®. 

For years, first-time home buyers have made up around 40 percent of all buyers. However, since the recession, this percentage has been shrinking. In 2015, they made up just under 30 percent of the market share, according to the National Association of REALTORS®.  

As a Realtor in the Portland and SW Washington markets, I have realized the need to help get new buyers educated in the process of buying a home. In a market that is growing as rapidly as our's is, first time home  buyers need to know the ins and outs before even looking for a home.

This article discusses this very topic.

 The ‘Missing Link’ in Housing

Daily Real Estate News | Tuesday, January 05, 2016

 

For years, first-time home buyers have made up around 40 percent of all buyers. However, since the recession, this percentage has been shrinking. In 2015, they made up just under 30 percent of the market share, according to the National Association of REALTORS®. 

Read moreDos and Don'ts for a First-Time Home Buyer

The decrease of first-time home buyers will have broad economic implications, housing analysts say. Without first-time home buyers, an entire cycle of home ownership is stalled. Current home owners are usually unable to sell their homes and move up. And without move-up transactions, many older people can’t sell and downsize for retirement. 

“In terms of the real-estate recovery, the missing link is first-time home buyers,” says Rob Chrane, founder and CEO of Down Payment Resource. “They’ve been at record lows. Part of it is legitimate reasons. Part of it is just ignorance.”

It’s not that millennials don’t show an interest in home ownership: according to a survey conducted by Fannie Mae, 56 percent of respondents between the ages of 18 and 34 plan to buy a home next time they move. 

But housing analysts say that the real estate industry has an important part in bringing them into home ownership by driving home the financial benefits and teaching them about ways to make homeownership possible.

“Ignorance about the process, concern about the economic outlook, and some skepticism about ownership are all hobbling the return of first-timers,” according to a recent article by MarketWatch. 

Only 23 percent from Fannie Mae’s survey said they were familiar with low-down payment programs, such as those offered by the Federal Housing Administration. Consumers believed on average that they need 16 percent for a down payment in order to qualify for a mortgage, according to the survey. Lower-educated and lower-income consumers, renters, African-Americans, and seniors were more likely to assume they needed a higher down payment to qualify for a mortgage.

But in reality, homes can be purchased with as little as a 3 percent down payment. Rules enacted in 2015 that decreased the amount of mortgage insurance borrowers must pay on FHA loans and Fannie Mae and Freddie Mac lowering down payment minimums may have boosted first-time participation slightly, say housing analysts. 

Chrane urges the real estate industry to educate would-be buyers on the possibilities to home ownership. 

“There are more options out there than they realize, and they really need to look into them before they give up,” says Chrane. 

Source: “Why First-Time Home Buyers Are Staying on the Sidelines,” MarketWatch (Dec. 31, 2015)

If you would like to attend my home buyers seminar on January 12,2016 please contact me at http://bradmulliner.com/contact-me/.

The decrease of first-time home buyers will have broad economic implications, housing analysts say. Without first-time home buyers, an entire cycle of home ownership is stalled. Current home owners are usually unable to sell their homes and move up. And without move-up transactions, many older people can’t sell and downsize for retirement. 

“In terms of the real-estate recovery, the missing link is first-time home buyers,” says Rob Chrane, founder and CEO of Down Payment Resource. “They’ve been at record lows. Part of it is legitimate reasons. Part of it is just ignorance.”

It’s not that millennials don’t show an interest in home ownership: according to a survey conducted by Fannie Mae, 56 percent of respondents between the ages of 18 and 34 plan to buy a home next time they move. 

But housing analysts say that the real estate industry has an important part in bringing them into home ownership by driving home the financial benefits and teaching them about ways to make homeownership possible.

“Ignorance about the process, concern about the economic outlook, and some skepticism about ownership are all hobbling the return of first-timers,” according to a recent article by MarketWatch. 

Only 23 percent from Fannie Mae’s survey said they were familiar with low-down payment programs, such as those offered by the Federal Housing Administration. Consumers believed on average that they need 16 percent for a down payment in order to qualify for a mortgage, according to the survey. Lower-educated and lower-income consumers, renters, African-Americans, and seniors were more likely to assume they needed a higher down payment to qualify for a mortgage.

But in reality, homes can be purchased with as little as a 3 percent down payment. Rules enacted in 2015 that decreased the amount of mortgage insurance borrowers must pay on FHA loans and Fannie Mae and Freddie Mac lowering down payment minimums may have boosted first-time participation slightly, say housing analysts. 

Chrane urges the real estate industry to educate would-be buyers on the possibilities to home ownership. 

“There are more options out there than they realize, and they really need to look into them before they give up,” says Chrane. 

Source: “Why First-Time Home Buyers Are Staying on the Sidelines,” MarketWatch (Dec. 31, 2015)

If you would like to attend my home buyers seminar on January 12,2016 please contact me at http://bradmulliner.com/contact-me/.

 


Posted on January 6, 2016 at 7:37 pm
Bradley Mulliner | Posted in Buying/Selling Tips, Helpful Articles | Tagged , , , ,

Portland homes selling in less than a month in Q3.

Portland homes selling in less than a month in Q3.

Still not sure whether or not it a good time to sell your home?  Homes are definitely selling quickly as long as they are price right. Yes this is still a sellers market in most areas around the Portland market and with the lack of inventory it appears that it is going to remain this way for a while.

SEATTLENov. 12, 2015 /PRNewswire/ — Matthew GardnerWindermere Real Estate Chief Economist, found Portland homes were on the market an average for just 27 days in the third quarter of 2015. This represents a drop in 10 days from the second quarter. Multnomah and Washington Counties also saw homes sell in less than a month.

“The average time it took to sell a home in the region was 92 days, with thePortland market in particular dropping from 37 to 27 days. This shows that the hot Portland economy is causing the demand to keep supply flying off the shelves,” said Gardner. He added one caveat, “There was a decline in state employment in September and the unemployment rate did rise, but I do not see this as a trend so much as a temporary blip.”

Looking at how the situation compares to the same time last year, the supply shortage drove home prices 6.1 percent higher year-over-year to $309,565. “What’s more impressive, sales activity rose by 21.6 percent when compared to the third quarter of 2014, exceeding the 20.9 percent year-over-year growth rate that we saw in the second quarter,” said Gardner.

As a result, Gardner believes that the housing market has tipped even further in favor of sellers. For Portland area buyers, this means it’s more important than ever to do the prep work to be able to move fast when buyers find a home they wish to buy:

  • Get pre-approved for a mortgage in advance (unless making an all-cash offer), and be ready to document the funds to be used for a down payment.
  • Retain an experienced buyer’s agent, who knows the local area and whom you trust. Go with them to see properties within 24-48 hours of listing.
  • Have advance discussions on what to write into offers: escalation clauses, quickness of home inspection, and even offering to rent the home back to the seller after the sale to give them more time to move. If the buyers and their agent have already confirmed those decisions, they can move faster in writing up the offer when the time comes.

Matthew Gardner joined Windermere Real Estate in July 2015 as its national Chief Economist with over 25 years of professional experience both in the U.S. and U.K.  Gardner has watched the Oregon economy and housing market for his entire career, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics.

To read more from the third quarter Gardner Report and about Matthew Gardner, visit http://www.windermere.com/blogs/.

About Windermere Real Estate

Windermere Real Estate is ranked the largest regional real estate company in the Western U.S. with over 300 offices and 7,000 agents serving communities in AlaskaArizonaCaliforniaColoradoHawaiiIdaho,MontanaNevadaOregonUtahWashington, and Mexico. Last year, Windermere closed over 77,000 sides for more than $27 billion in dollar volume. The Windermere family has a proud heritage of serving our neighbors via the Windermere Foundation, which funds services for low-income and homeless families. Since 1989, the Windermere Foundation has contributed more than 30 million dollars towards improving lives in the communities where we live and work. For more information, visithttp://www.windermere.com.

If you are a looking at buying a home, in this article there are some great tips that you should do the make the process go smoother, or you can visit http://bradmulliner.com/buying-and-selling-tips/ for more information.

Photo – http://photos.prnewswire.com/prnh/20151111/286564

SOURCE Windermere Real Estate

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Posted on November 13, 2015 at 7:27 pm
Bradley Mulliner | Posted in Buying/Selling Tips, clients, Helpful Articles, new home, new home owners, Real Estate Activity, Uncategorized | Tagged , , , ,