buying a house

Statistics About Low Inventory of Homes in Fall 2015

/ Elaine Hilton

Existing Home Sales Slow Amongst Tight Inventory [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • Existing Home Sales slowed down slightly in August but remained 6.2% higher than August 2014.

  • Inventory levels remain below the 6 months necessary for a normal market at a 5.2-month supply.

  • First Time Buyers rebounded in August to make up 32% of sales, matching a 2015 high.

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.

10 Quirky Ways To Save For Your Down Payment

/ Elaine Hilton

Okay, you have decided to buy a home, now what?  The first thing you will need is your down payment and nerdwallet.com has some fun and easy ways to do just that.

  1.  The $5.00 Bill Savings Plan:  Ever time you receive a $5.00 bill, as change, a gift or you find the bill on the street, SAVE IT.
  2. Keep the Change: There are several ways that some banks offer to do this.  As an example, Bank of America debit card holders can sign up for a program that rounds the purchase price up to the next whole dollar and puts the change in a linked savings account.
  3. Open a Savings Account:  Salary bonuses, tax refunds, and raises go right into your savings account.
  4. Automatic Transfers:  You’re trying to save money here.  Let your bank know that every month you want a specific amount transferred from your checking to your savings.
  5. Keep your Old Car:  Calculate what your new car payment would have been and put that amount in your savings account every month.
  6. See it and Believe It:  Paste a picture of your dream home on the frig and wrap that picture around your most used credit card.  Look at that picture when you grab that card to spend some money. Continue reading →

3 Reasons Why The Housing Market Is Still Looking Up in 2015

/ Elaine Hilton

With rents continuing to rise, and they are now at a seven year high, it makes sense to buy a home.  This year both Fannie Mae and Freddie Mac created programs that would allow first time home buyers to purchase with only 3 per cent down!   As interest rates are  historically low, and home values continue to moderately increase, it is a great time to buy!

Unemployment has significantly dropped, and the job market is robust.  As the economy continues to grow stronger, confidence in the potential home buyer grows.   There is  broader optimism to take the plunge and buy a home.

Home prices continue to rise nationally, indicating that the bad times are behind us!  With home prices stabilizing , interest rates continuing to stay low, and  housing affordability continuing, home ownership becomes a goal that many now want to obtain.