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Home Tips & Real Estate News

News and tips that will save you time and money!

Do NOT do this when applying for a home loan…seriously.

Looks like I am going to give you a two for one in blog posts this week. I know I did one yesterday, but since I have fallen behind, I have to make up the difference. So with that said welcome to my blog. I want to inform you about something that can absolutely destroy your chances of getting a loan, even if your loan has already been approved but you  haven’t closed yet. Most people think that once their loan is CTC (mortgage jargon for Clear-to-Close) they are open to do whatever they want. Wrong! Most knowledgable lenders will tell you up front, do not make any purchases, do not apply for any new credit, do not make any late payments and make sure everything that you have disclosed to us remains the same or gets better. Nothing, and I mean nothing will make us give you the Bernie Sanders stink eye faster than seeing a new debt show up on the credit report. Now let me tell you why.

When we take a look at your overall credit profile such as income, assets, credit history, job history, debt ratios, ect. We have to make sure it fits “inside the box,” because let’s face it, this isn’t the mortgage industry of 10+ years ago. We have to make sure that everything is well documented. Now once we do that and we issue a pre-approval or pre-qualification, you are all set to go find your new home. In the meantime, make sure you do the following:

  1. Continue to pay your bills on-time
  2. Do not deposit cash in the bank
  3. Do not charge up your credit cards
  4. Do not apply for new credit or request credit line increases
  5. Do not spend your down payment on anything besides your down payment
  6. If you are unsure about anything, contact your mortgage expert

These may sound like simple rules to follow, but you would be surprised. Doing any of these can seriously impact your loan approval and could prevent you from purchasing your brand new home. The reason being is that it can negatively impact your credit score and can drive up your DTI (mortgage jargon for debt-to-income) ratios which could prevent you from getting the loan. So while you’re out looking at homes and when you get under contract, make sure you have a good talk with your mortgage expert and they can help you a guide you throughout the way. Consistency is the key. Maintain your current credit and financial profile and your loan should get approved with little to no problems.

So you want to stay up to date on all of this information? Want access to interest rate trends, home searches, calculators and a bunch of other useful stuff? Then you need to download my free mortgage app. It is 100% free and you have access to all of my info, including this amazing blog, 24/7. All you have to do is click here and it will direct you to the download link. C’mon, you didn’t think I’d give you an awesome blog and not ask you to do me a solid now did you? As always, thank you for viewing my blog. Check out my app and your life will become 10,000% better (well maybe not, but it’s a free app, so it can’t hurt right?).

Be on the lookout next week for some new info and a new blog. Leave me your feedback below if there is anything else you want me to focus on for future blogs.

Ed S.

Rockstar Closer_Website_Red

 

Housing Shortage Causing Bidding Wars and Spike in New Construction.

BIDDING WAR

If there is one downside to a booming housing market, it’s that there are not enough homes on the market to satisfy the amount of buyers. You can refer to this as a seller’s market. Not enough homes on the market can mean buyers paying more for a home. This is not a bad thing, and in fact, can help home values. As a seller, take advantage of it. Quit listening to the “water cooler talk” at work when everyone thinks that they’re an expert at everything. There is a reason they are doing the job that they are doing and not selling homes, because they don’t have the slightest clue of what they are talking about! Check out this article from Realtor.com that gives you advice on how to win a bidding war.

So let’s get back at it. In the real estate market you will see peaks and valleys. It is the nature of the business. If you are considering selling your home, now is the time to get your home on the market. Demand is high and supply is low, this is bare basic economics and it doesn’t take rocket science to figure out that you will profit more than you would in  a buyer’s market. Well what happens if you are a buyer? You want a great deal, right? You want that amazing home that your family fell in love with, right? Then make an offer. Hire one of the areas Realtors (I can refer you to one if you don’t have one) and let them negotiate a great deal. In this business time is of the essence, so if you find something and you like it, then make an offer on the home. One of the common things that I hear buyers say often is that “I’m going to sleep on it and make an offer tomorrow.” Here’s the catch to that, someone else is thinking the same thing and by the time you are ready to submit an offer, the house is S-O-L-D and then they have regrets for not submitting an offer earlier.

Home builders are more than happy right now. What happens when people can’t find their perfect home? They build it. I was driving through Northwest Indiana the past few weeks and I have noticed a TON of new homes being constructed. It’s a good thing, but with the improved housing market comes higher price per square foot. You’ll be paying more for that home as well. Now, don’t get me wrong, building a new home isn’t a bad thing. You just have to be prepared to wait while it is being constructed. I have seen homes go up in as little as 90 days, then I have seen homes take a year. It all depends on what you are getting done, what kind of upgrades you’re getting and also the weather has to cooperate as well.

Why am I telling you this? I know what you’re thinking, “he is just trying to get us to buy a home quicker, or wants the quick sale.” That couldn’t be further from the truth. I have a list of buyers right now waiting to find their next home. Unfortunately, some of them have already made these same mistakes that I mentioned above and have missed out on homes that they fell in love with. I don’t want this to happen to you. Learn from the mistakes of others. So here is what I recommend:

  1. Get your ducks in a row (get pre-approved and get all of your financial documents together) Check out my blog about this here.
  2. Work with a Realtor and figure out where you want to buy and what is a comfortable price range.
  3. Once you find a home that you love, DON’T WAIT! Talk with your Realtor and submit a fair offer on the home.
  4. Get your offer accepted
  5. Work with the best mortgage guy in the business (me, of course!) and let’s turn that homeownership dream into a reality.

So now that you have some great tips about this market. I am going to ask you a favor. I need you to subscribe to my blog. I know I said I was going to do these weekly, but work has been SLAMMED. I owe it to you all to make this blog happen weekly, so my commitment to you is to have a new blog up by Wednesday of every week. In the mean time, go and download my mobile app. It has a link to my blog, a home search, mortgage calculators and so much more. You can get it by clicking here. I designed this app for my business partners and for my clients. Any feedback that you have, leave it below. Have any blog suggestions? Leave me a comment below. I will give you content overload, just let me know if you want me to touch on anything specific.

Thanks for reading and  the lookout next week!

-Ed. S

Rockstar Closer_Website_Red.png

 

 

 

 

The Perfect Storm in Real Estate is Now.

gulf-storm1

So what do I mean by the perfect storm? Is it because rates are low? Is it because buying a home is more affordable now than it ever has been? Is it because inventory is low? Actually, it is a blend of all of these factors, thus, the perfect storm. Get it? So let me tell you what I am currently experiencing and what local real estate professionals throughout my community are experiencing. People are finally starting to realize that now is a great time to buy a home. They are finally listening to what everyone has been telling them for the past 4 years. This is a good thing, but it does have a downside. If you are looking at a home and want to think about writing an offer on that home, you may have already missed the boat. Due to the lack of inventory, if you find a home that you really like, then you have to put an offer in right away or take the risk of losing that home. Many local Realtors have said that they had clients lose out on homes because they didn’t make an offer right away. So I have a word of advice, if you love it, then make an offer on the home. Make a good offer on the home as well, especially if it becomes a multiple offer situation.

If you are looking to sell your home, let me clear up a very common myth that people believe. “I am going to wait until Spring to list my home because homes don’t sell in Winter.” That is so inaccurate it makes me want to laugh. Ask any local Realtor and they will tell you that Winter is a great time to list your home. Why, you ask? The reason being is that inventory is typically low, like it is now, and you will attract more serious buyers. People who are out looking at homes when it is cold or snowing outside are more serious buyers, they are out looking in homes during the bad weather because they are serious about buying and ready to make an offer on the perfect home, which could be yours.

Look at these article from CNN Money, Realtor.com and Forbes. They are all stating that 2016 is the year to buy a home. Luckily, rates have hit a 3-year low, prices on homes have been consistent and there are programs available that offer down payment options that are well below the mythical 20%. It is shocking how many people believe that the only way they could buy a home is if they have 20% down payment. This is simply not true. There are plenty of mortgage options available. I recommend having a conversation with a knowledgeable mortgage loan officer and figure out what is going to be the best possible position for you and your family.

Bottom line, if you can buy, then do it now. You don’t want to be in the “I wish I would have done that,” crowd. Take action today and call a Realtor, call a loan officer, find out what your options are and see why so many people are buying instead of renting. You are literally throwing your money away each month you rent instead of buying. Contact me today and I can help you with the process and put you in contact with an amazing Realtor who can find you your dream home.

Click here to view a previous blog of what you need to start the buying process. I also have a free mobile app that you can download by clicking here.

If you want more useful information, then don’t forget to subscribe to my blog. See you all next week!

-Ed

Why trusting a smart phone to close your mortgage is anything but smart.

rockets

So if you weren’t living under a rock, I assume that you watched at least a portion of Super Bowl 50. The game itself might not have been that impressive, but I did see some funny commercials. One in particular comes to mind, it was Rocket Mortgage from Quicken Loans. The commercial made it seem that it would be hassle free and easy to obtain a mortgage with their “push button get mortgage,” phrase. The voice actor states “you can get a mortgage on your phone, and if it could be that easy, wouldn’t more people buy homes?” I’ll be the first one to tell you, these ideas are the types of things that can cause a housing collapse. You know people thought loans that didn’t require borrowers to show proof of their income or assets were a good idea too, but that didn’t work out so well now did it? So now with Rocket Mortgage, Quicken claims that you can obtain an “8-minute mortgage.” I am not the only one that thinks this is encouraging another housing crash, check out this article by Time Magazine. The article highlights different tweets from people criticizing the company for “encouraging another sub-prime crisis.” Here is another article, this time by Yahoo! that drills Quicken for their ad. It’s amazing to think the same company that the United States filed a lawsuit against (find the Department of Justice Press Release here) for improperly originating FHA Insured loans is the same company trying to make an “8-minute mortgage.”

Here is a good analogy for you, and I know this first hand. Every year around tax time you see all these commercials for these online tax programs where you can do it yourself. At first, I thought that this was a great idea until I realized how much money I was losing by not utilizing an accountant. Quicker is not necessarily better, cheaper is not always better and obtaining a mortgage on a phone app…well that’s just ludicrous. There is a reason accountants are in business, because they can help you, they understand your situation and they try to minimize your overall tax burden.

Listen, here is what you need to know and it may not be what you want to hear. Obtaining a mortgage is not “easy,” and it shouldn’t be. Buying a home is a lot different than shopping for a pair of shoes or buying music online, that comparison is ridiculous. A home is a huge financial commitment and it requires having a team of local professionals who have your back. Having the right team working for you can result in a easy transaction. The importance of working with someone local is vital. It is important to work with local Realtors, loan officers, insurance agents, title companies and so on. These are the people that live in the communities that you’re buying in, they know the ins and outs of the communities and can help guide you in the right direction. When talking to a loan officer, you need someone who is going to understand what your financials are, help establish your goals, help overcome potential roadblocks, help you prepare when submitting an offer and many other important factors involving your home purchase. You will not receive this type of hands on treatment from your smart phone or a call center located halfway across the country. Local professionals have a personal commitment to make sure you’re happy and are taken care of. We will see you from time to time in the local stores, local sporting events and throughout the community. We are welcoming you to our community and we want the best experience for you and your family.

Now I can’t promise you and “8-minute mortgage,” but I can sure assure you a pleasant experience that you won’t forget. I can assure you that I will help you determine what will be the best loan program for you and your family. I can assure you that I can put you in contact with some of the top realtors in my area to help you find that dream home. I can assure you that from start to finish you will know the progress on your loan. Finally, I can assure you that you’ll be so happy with my service and loan program that you will refer me your family, friends and coworkers. If you are looking for an “8-minute mortgage,” I can confidently tell you that I am not your guy. If you’re looking for the best program possible to ensure your family’s financial success, then look no further, I can make this a reality.

I have a custom mobile app and you can click here to download my app. This was made specifically to give you housing market updates, mortgage calculations, a home search and other valuable resources. It is NOT intended to close your loan in 8 minutes 🙂

For more online resources visit my website by clicking here, or fill out the form below and I can add you to my email list.

Be on the lookout for my new blog next Monday.

P.S. Remember, that from time rockets do explode. #RocketsExplode

-Ed

 

 

Why it’s smart to get qualified BEFORE you start looking at homes.

the more you knowSo you have been looking online at homes. You end up seeing one that is everything that you have been wanting. You call a Realtor to show you the home. You go and see the home and you fall in love. You want to submit an offer, then it hits you…THIS HOME IS OUT OF YOUR PRICE RANGE! Unfortunately, this tends to happen when people start the home buying process. Everyone is eager to start looking at homes, but they fail to get their ducks in a row and line up their financing before they start looking. It is a lose/lose situation when you start the home search before you get your financing in line, and I’ll tell you why.

One of the most important steps of buying a home is making sure you are qualified to purchase a home. The last thing that you want to happen is to fall in love with a home then come to find out that you can’t afford it, or there is something preventing you from buying a home in general. There are many benefits to getting pre-qualified or pre-approved for a home. When you are ready to submit an offer, the sellers will know that you have already done the work beforehand to obtain financing and that you are a qualified buyer. This can also help you with the negotiation when buying a property. There are 2 main people that you need to become comfortable with and trust during this process, a Realtor and a loan officer. Ultimately you want to work with a great, and I emphasize great, Realtor that has local knowledge and can negotiate a fair price for you. Another must when buying a home is make sure you are working with a loan officer that knows their stuff. Sure, any bank has a loan officer that is getting paid a tiny salary, sits behind a desk all day and will tell you exactly what you want to hear. That’s easy! Make sure you are dealing with a professional who knows the ins and outs of the mortgage business in order to find you and your family the best program possible. Often times, what you want to hear is a lot different than what you need to know, so work with someone who will guide along the right path the first time around.

Here are some of the items that you should consider gathering together when you want to start the home buying process, and believe me, your loan officer will LOVE YOU if you are well prepared. Again, this is just some brief information and each situation can be different, but if you have the majority of this ready to go, you’ll be in great shape.

  • Identification ( State IDs or Driver’s License or Passport)
  • Most recent pay stubs for the past 30 days
  • Most recent 2 years of Federal tax returns and W2s or 1099s (if you’re self-employed, let them know because there is additional requirements that will be needed)
  • Recent bank statements for the past 2 months
  • Homeowner’s insurance agent name and number
  • Addresses of any additional properties that you own
  • **If applicable** Divorce decree/Bankruptcy discharge paperwork/Child support order

All of this is information that is extremely useful because it will help your loan officer better comprehend your current financial position and see if you are eligible to purchase a home. Also, let the loan officer know how much you are comfortable with spending. I hear way too often that a loan officer will issue a pre-qualification for a set price and it’s a price way higher than what the buyers want to spend. The way I look at it is that I want to put people in a mortgage that is comfortable for them, so it doesn’t matter if you qualify for a $400,000 home if you are only comfortable spending $250,000. So make sure you are prepared with how much you are comfortable spending for the down payment and for your monthly mortgage payment.

Now to the meat and potatoes of my blog! If you want a no-nonsense, straight to the point, knowledgeable loan officer with access to some of the best programs in the industry, then you need to look no further. OK, well maybe a little bit further. First, you need to contact me and I will give you a FREE home financing analysis to see if I can get you qualified to make that first step.  Secondly, I work with some of the area’s top Realtors and I can put you in contact with them to help you find your dream home. Next, we close your loan and you move into your home. Finally, because both the Realtor and myself were so good at getting you the perfect home, the perfect loan and amazing service all you need to do is refer your friends, family, co-workers, heck even strangers, over to us so that we can help make their dreams come true as well.

Now I want to offer you all something else that is completely FREE! You can download my free mobile app for your cellphone. It has a ton of resources at the palm of your hands. You can search homes, local schools, taxes, mortgage payments, rates and a bunch of other cool stuff absolutely FREE, all you have to do is  CLICK HERE.

Now that you’re a little more prepared for your home search, leave me some feedback below on what you want me to blog about next. Be on the lookout every Monday for a new blog post, and thanks for reading!

 

These things can hurt your chances of getting your mortgage approved

Let’s face it, that beautiful home you have been eyeballing is calling your name. You want the home, you like the home, but most people don’t want the mortgage that comes with the home because of the “dreaded mortgage process.” It’s not as hard to obtain a mortgage as some might think. So let me tell you about a few things that can and will hurt your chances of obtaining a mortgage. Then, I’ll tell you how to make the process easier.

  • Do not open new credit cards or new credit accounts.
  • Do not switch jobs during the mortgage process without contacting your loan officer.
  • That new car/truck/SUV you have been looking at? Don’t buy it!! (Adding on new payments to your credit will raise your debt-to-income ratios and could prevent you from obtaining your mortgage.)
  • Looking for new appliances, TV’s, furniture and other furnishings for your new house? WAIT! Do not buy anything or charge anything during the process. (Adding these payments to your credit will affect your mortgage approval.)
  • Do not pay your bills late! (It doesn’t take rocket science to realize this can hurt you.)
  • Do not deposit cash into your bank account. (Funds need to be sourced and cash does not leave a very good paper trail, so don’t deposit it!)
  • Not disclosing information or providing inaccurate information to your loan officer. (Things like addresses to properties that you own, child support payments, prior bankruptcy, prior foreclosure, IRS tax liens, just to name a few, will impact your approval.)

The easiest thing that you can do is be completely upfront with your loan officer about your finances, credit, assets and anything else related to purchasing a home. It is 10X’s easier to catch any potential road bumps upfront, instead of during the mortgage process. This will create fewer headaches for you, the Realtors, your loan officer and anyone else involved during the loan process.

Most people make the lending process way harder than it has to be. There is a process to everything. Anyone who has obtained a mortgage has gone through it in some way or another. Make sure you work with the right people, make sure you have all of your ducks in a row before you start looking at homes and most importantly get your lender the documents that they need when they request them.

If you can accomplish 100% of what I suggested in this article, the chances of your mortgage experience going smoothly will increase exponentially.

Now, you didn’t think I was going to give you mortgage advice and not ask you contact me now did you?

Want to buy a home? Looking to purchase your home quickly? Hassle-free? Get a great program? Then what you need to do is click this link and download my FREE Mobile App! It is your 24/7 real estate resource and it has all of my contact information within the application.

Best of luck on your new home purchase!

Ed Stojancevich 219-973-6644 call/text me today!

Ed@AMMortgageGroup.com

Click here to view my website. www.RockstarRealEstates.com

 

SOLD – 5104 Brookstone Ct, Indianapolis

Stories of SOLD - Jennifer Blandford's Zionsville Real Estate Blog

5104 BrookstoneLindsey was REALLY frustrated with the process of selling her house.  Neither of her two prior agents had been able to sell her adorable little house.  But then neither had performed any advertising whatsoever – not even the most basic methods! There was no flyer box, there was just one open house after Lindsey had begged. The photos online were terrible and dark.  One of her prior agents even stood her up for a scheduled appointment because he was on the golf course and forgot.  Wow.  She got Jennifer’s contact info from a friend, and the rest is history.  Jennifer handled the listing of Lindsey’s adorable home in her usual manner, and an acceptable offer was received within 21 days.  Just a simple amount of attention was all Lindsey needed to get that house sold.  She told Jennifer later on that she was “blown away” by the effort that was put…

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Housing Affordability Edges Higher in First Quarter

Great article! Housing affordability was up in the first quarter. Home prices are climbing and now may be the most opportune time to buy a home, you’ll get the most “bang for your buck.”

Eye on Housing

Slightly lower median home prices along with steady mortgage rates contributed to higher housing affordability in the first quarter of 2014, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). In all, 65.5 percent of new and existing homes sold between the beginning of January and end of March were affordable to families earning the U.S. median income of $63,900. The HOI in the fourth quarter of 2013 was 64.7 percent.

HOI Q114

The national median home price dipped from $205,000 in the fourth quarter to $195,000 in the first quarter while average mortgage interest rates were virtually unchanged, moving from 4.54 percent to 4.57 percent in the same period.

Syracuse, N.Y. was the nation’s most affordable major housing market, as 93.7 percent of all new and existing homes sold in this year’s first quarter were affordable to families earning the area’s median income of $67,700.   Other major…

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