buyer

Rent vs Buy

/ Elaine Hilton

Buying a Home Remains 35% Less Expensive than Renting! | Keeping Current Matters

Here is a great article from the Keeping Current in Real Estate Blog.

In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States. The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide!

The other interesting findings in the report include:

  • Interest rates have remained low and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation. “In the past year, these two trends have made homeownership even more affordable compared with renting.”
  • Some markets might tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy.
  • Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.  

Bottom Line

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, lock in your housing cost with a mortgage payment now.

Home Loan Application

/ Elaine Hilton

What you will need to have to make your home loan application

There are numerous home loans available today, including FHA, VA and Conventional.  All of these loans will require you to fill out a loan application.   This process is much easier if you are prepared.  Here is a list of required items you are going to need:

1.  Latest 2 paycheck stubs

2.  Last 2 years W-2’s or 1099’s

3.  If self-employed; last 2 years tax returns

4. Most recent bank statements  (all your accounts for 2 months)

5.  Loan and lease information on other real estate owned

6.  Drivers license or other form of ID

Your lender may want more information and if they do, they will ask for it.  Like the boy scouts, “Be prepared”, and you will have completed your loan application in no time!

Do You Really Think Your Landlord Pays for Repairs?

/ Elaine Hilton

A recent article that appeared on Nasdaq.com addressed the issue of whether it is best to buy or rent in today’s real estate environment. The article was very fair in discussing both options.

“For some people, the choice is very clear: Buying a home can be more costly, given the cost of the purchase itself, plus taxes and insurance, plus maintenance and repairs.”

This argument is often made in defense of renting. However, we don’t believe it makes logical sense. They claim that, as a renter, you won’t have the expenses of “taxes and insurance, plus maintenance and repairs”. Do they really believe that the landlord pays all those expenses for their tenants?

The vast majority of landlords own rentable real estate as a form of investment. As any other investor would, they expect to make a return on that investment (ROI) – otherwise known as profit. In order to make a profit, the landlord needs to include EVERY expense they incur into the rent…AND THEN ADD A PROFIT MARGIN!!

We think it is incorrect to advise a prospective renter that they won’t have the same expenses that a homeowner would have. They just pay those expenses to a landlord with a “premium” built in.

What Does It Really Mean To Be “Represented” By A REALTOR®?

/ Elaine Hilton

1.) Being Understood

Being Understood By Your Realtor or Real Estate AgentBeing “represented” by a REALTOR® means that you have an advocate who is putting themselves in your shoes. They will listen intently to you. They want as much information about your situation as possible so that they can best help you. They will do everything they can to earn your respect so that you will use them again in the future. Understanding our clients needs and wants is essential for success in this business.

We work hard to understand you and your needs. Each of my home buying and selling clients are different. Some may want to list their house for sale and need advice on staging and adding upgrades to get the best value. Others may be relocating due to military orders and need to find a house in the next 7 days. Everyone’s situation is different. They all require special attention to make sure that their needs are met and their expectations are exceeded. If your REALTOR® truly understands you and your situation, you are in good hands! Continue reading →