Tag: real estate blog

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.

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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

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Mortgage rates are on the rise

So if you haven’t noticed on the news, in the newspaper, or on the internet, mortgage rates are on an upward trend. Rates over the past few weeks have gone up from the historic lows that we have been accustomed to, 3 out of the past 4 weeks they’ve gone up to be exact. Don’t get me wrong, these rates are still low, but they may not be as low as they were a few months ago or late last year.

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The higher rates in all reality are going to impact the refinance business more than anything, because people who were on the fence about refinancing may be turned off from the rates going up and opt to stay with their current mortgage. Home buyers will still be in the market looking to grab their dream house, vacation house, and/or investment properties because in all reality these rates are still impressive and home affordability is the best it has ever been in years because of  interest rates.

USA Today spoke with the Freddie Mac’s Chief Economist, Frank Nothaft, and he believes the lowest rates are now behind us.

Bottom line: If you have been considering purchasing a home, talk to a lender, get pre-approved and start the home search. Prolonging this crucial step could essentially cost you and your family more money in the long run. If you are a current homeowner thinking of refinancing, call a lender and discuss some of the goals that you are looking to achieve and have them put some options together for you, the longer you wait on this step, the higher rates can potentially get and could crush any benefit that you could have taken advantage of by refinancing.

I’ve included a link below that shows the connection between rates and the 10-year tresury bond.

The Truth About Mortgage Rates

Thanks for viewing, please leave your comments below and as always contact me with any other questions or feedback, it’s greatly appreciated!

-Ed Stojancevich

If you’ve considered listing your home, now is the time to do so.

The first thing I looked at when I opened up my web browser this morning was an article by The Wall Street Journal writer Ruth Simon and The headline was “Is It Safe To Sell Your House Now?”  Now I have talked to numerous area realtors and I have had transactions on homes that had numerous offers on them, many of them full asking price, but the same issue is still coming up “we need more listings” is a common phrase among the areas realtors. The trend right now is that there are more buyers in the market than homes for sale, which in turn make it a seller’s market. some of the realtors that I have talked to said they are selling their listings faster than they can get more, which believe me is not a bad thing, but at the same point in time is making it a market for buyers to be more aggressive with their offers.

If at any point within the past couple of years you have been considering on selling your home, now may be the time to do so. Now may be the time to list your property so you can move, upgrade, or get into a different home that better fits your needs. This could be a great opportunity to increase the odds of you getting full asking price when listing your home. Here are a couple of tips I recommend doing if you plan on listing your home.

  • Contact a local realtor, or contact me if you need a great recommendation
  • Get a CMA (Certified Market Analysis) or BPO (Broker’s Price Opinion) done on your home, this will give you an idea of what to list the house at.
  • Do some early “Spring Cleaning” take away all the clutter, change the light bulbs, and take down any family pictures you have. You want for potential buyers to envision themselves living in your home, the family pictures could be a distraction from that.
  • Fresh coats of paint, clean the floors, and shampoo the carpets. You want your house looking as lean and clutter free as possible.

For more tips on what you should do to help sell your home fast please go to my contact page and leave me your information and I will send you a complimentary copy of “33 Ways to Sell Your Home Fast”

Thank you for viewing my blog, please write me with any questions, feedback, or if I can help you in any way. Don’t forget to subscribe!