No Comments

How Your Home’s Value Grows Your Family’s Wealth

Over the next five years, home prices are expected to appreciate 3.64% per year on average and to grow by 18.4% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

So, what does this mean for homeowners and their equity position?

As an example, let’s assume a young couple purchased and closed on a $250,000 home in January. If we look at only the projected increase in the price of that home, how much equity will they earn over the next 5 years?

How Your Home’s Value Grows Your Family’s Wealth | MyKCM

Since the experts predict that home prices will increase by 5.0% this year alone, the young homeowners will have gained $12,500 in equity in just one year.

Over a five-year period, their equity will increase by nearly $49,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.

Bottom Line

Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today!

No Comments

5 Common Home Buying Mistakes

When making the leap into what is the typically the biggest financial decision people ever make, buying a home is exciting, and also distressing.    There is a lot of room for error, so play it smart rather than making mistakes that could cost thousands of dollars.

  1. Shopping for a home without an experienced agent

Everyone looks at homes for sale online, out of curiosity as well as to gather a sense of what is available and at price look like. But if you’re serious about buying a home, you need an experienced advocate looking out for your best interests. Your agent will expertly navigate every step of the home-buying process beside you, including finding the best property, writing a winning offer, negotiating inspection repairs and cruising through to closing.

  1. Evaluate mortgage options

It’s necessary to get pre-approved for a home loan before you begin earnestly searching for a house You can’t know that you are getting the best deal unless you can compare offers. However, applying with too many lenders can lower your credit score and can generate unwanted calls and solicitations. Contact two or three lenders and compare rates and closing cost to determine the best one for you

  1. Don’t hold out for your “dream home”

Frankly, the perfect home, (perfect location, size, condition, features and price), may not exist. Create a list of “musts” and “wants” to identify criteria for your Realtor, but don’t insist on checking everything on the list. Limited inventory means some compromises might be necessary in order for buyers to find their home.

  1. Don’t make lowball offers

Of course, you want the best deal, but don’t miss out on the right home with a foolishly low offer. A survey from Inman found that 15 percent of real estate agents say the third-largest mistake people make when buying a home is offering too little for a property (behind not talking to a lender first and taking too long to make an offer). If your offer offends the seller, they may not even consider making a counteroffer.

  1. Don’t make any big purchases before you close

You found a great house, the seller accepted your offer, but until the loan is closed it still must go through underwriting. Underwriters will look at your credit to make certain nothing has changed since the pre-approval. If you’ve established any new debt since then, such as a new car or you’ve maxed out your credit cards, your credit score will be impacted which could raise your interest rate or, possibly result in a rejection of your mortgage application.

Your best bet is to trust your Realtor to help you make informed and accurate decisions throughout the home buying process. The Platinum Group Realtors have the experience, knowledge, and resources to help ensure your experience is as stress-free and relaxing as possible. Need a complimentary Platinum opinion about your home? Call today: 719-955-8578.

No Comments

Thinking About Buying? Know Your Credit Score

Knowing your credit score or getting a recent copy of your credit report is one of the first steps that you can take toward knowing how ready you are to start the home buying process.

Make sure all the information listed on your report is accurate and work to correct any mistakes. The higher your credit score, the more likely you will be to receive a better interest rate for your mortgage, which will translate into more ‘home for your money.’

Many potential buyers believe that they need a 750 FICO® Score or higher to be able to purchase a home. The truth is that according to Ellie Mae’s Origination Report, over 53% of loans were approved with a FICO® score under 750 last month!

Here are some tips for improving your credit score:

  • Make payments, including rent, credit cards, and car loans, on time.
  • Keep your spending to no more than 30% of your limit on credit cards.
  • Pay down high-balance credit cards to lower balances, and consider balance transfers to free up credit.
  • Check for errors on your credit report and work toward fixing them.
  • Shop for mortgage rates within a 30-day period — too many spread-out inquiries can lower your score.
  • Work with a credit counselor or a lender to improve your score.

Once you know your score, your next step will be finding a lender and getting pre-approved for a mortgage. Doing this will ensure that you know your budget before you start looking for your dream home.

No Comments

Why Sell Now Instead of Later? The Buyers are Out Now

Each year, most homeowners wait until the spring to sell their houses because they believe that they can get a better deal during the normal spring buyer’s market. However, recently released data suggests that a seller’s best deal may be available right now. The concept of ‘supply & demand’ reveals that the best price for an item will be realized when the supply of that item is low and the demand for that item is high. Let’s see how this applies to the current residential real estate market.

SUPPLY

It is no secret that the supply of homes for sale has been far below the number needed for over a year. A normal market requires six months of housing inventory to meet the demand. The latest report from the National Association of Realtors (NAR) revealed that there is currently only a 4.2-month supply.

Supply is currently very low!!

DEMAND

A report that was just released tells us that demand is very strong. The most recent Foot Traffic Report (which sheds light on the number of buyers out looking at homes) disclosed that there are more buyers right now than at any other time in the last twelve months. This includes more buyers looking at homes right now than at any time during last year’s spring market.

Demand is currently very high!! 

Bottom Line

Waiting until the spring to list your house for sale made sense in the past. This year is different. The best deal is probably available right now.

No Comments

Do You Know How Much Equity You Have in Your Home?

CoreLogic’s latest Equity Report revealed that 91,000 properties regained equity in the first quarter of 2017. This is great news for the country, as 48.2 million of all mortgaged properties are now in a positive equity situation.

Price Appreciation = Good News for Homeowners

Frank Nothaft, CoreLogic’s Chief Economist, explains:

One million borrowers achieved positive equity over the last year, which means risk continues to steadily decline as a result of increasing home prices.”

Read more

No Comments

5 Reasons You Should Sell This Summer

Here are five reasons listing your home for sale this summer makes sense.

1. Demand Is Strong

The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other to buy a home.
Read more