Getting a Mortgage Doesn't Require Perfect Credit!

Don’t Disqualify Yourself… 52% of Approved Loans Have A FICO® Score Under 750

 Monday August 28th, 2017  First Time Home Buyers, For Buyers, Move-Up Buyers

The results of countless studies have shown that potential home buyers, and even current homeowners, have an inflated view of what is really required to qualify for a mortgage in today’s market.

One such study by the Wharton School of Business at the University of Pennsylvania revealed that many millennials have not yet considered purchasing homes simply because they don’t believe they can qualify for a mortgage.

A recent article about millennials by Realtor.com explained that:

“About 72% of aspiring millennial buyers said they’re waiting because they can’t afford to buy…”

The article also explained that 29% of millennials believe their credit scores are too low to buy.The problem here is the fact that they think they will be denied a mortgage is keeping them from evenattempting to apply.

Ellie Mae’s Vice President Jonas Moe encouraged buyers to know their options before assuming that they won’t qualify for a mortgage:

“Many potential home buyers are ‘disqualifying’ themselves. You don’t need a 750 FICO® Score and a 20% down payment to buy.”

So, what credit score is necessary?

Below is a breakdown of the FICO® Score distribution of all closed (approved) loans in July from Ellie Mae’s latest Origination Report.

Over 52% of all approved loans had a FICO® Score under 750. Many potential home buyers believe that they need a score over 780 to qualify.

Bottom Line

If owning a home of your own has always been your dream and you are ready and willing to buy, or if you are a homeowner who wants to move up, find out if you are able to! Let’s get together to determine if your dreams can become a reality sooner than you thought! I work with several lenders who specialize in programs for clients who want to own a home in Keller, Saginaw, Fort Worth, North Richland Hills, Roanoke, Watauga and Hurst.  Many have programs for clients with scores under 700!  Contact me and I can put you in touch!

You might also enjoy reading...

• Why Is It Important to Use a Professional to Sell Your Home?
• What State Gives You the Most ‘Bang for Your Buck’? [INFOGRAPHIC]
• 58% of Homeowners See a Drop in Home Values Coming
• Sellers: Your Home is an Oasis in an Inventory Desert

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Home Prices Up 6.64% Across the Country!

Some Highlights:

• The Federal Housing Finance Agency (FHFA) recently released their latest Quarterly Home Price Index report.
• In the report, home prices are compared both regionally and by state.
• Based on the latest numbers, if you plan on relocating to another state, waiting to move may end up costing you more!
• Alaska & West Virginia were the only states where home prices are lower than they were last year.

The Bottom Line:

Fort Worth, Keller, Watauga and Saginaw homes for sale match or exceed the national averages right now. If you're thinking of selling your home and buying another, it's time to call me for an analysis. Waiting could cost you thousands if you're moving up! Visit my website at Mike4Houses.com!

You might also enjoy reading...

• What State Gives You the Most ‘Bang for Your Buck’? [INFOGRAPHIC]
• Why Is It Important to Use a Professional to Sell Your Home?
• Sellers: Your Home is an Oasis in an Inventory Desert
• More Boomerang Buyers Are about to Enter the Market

Owners Selling Their Homes Themselves Don't Save Money

Study: FSBOs Don’t Save Real Estate Commission

 Thursday August 24th, 2017  For Sellers, FSBOs

One of the main reasons why For Sale By Owners (FSBOs) don’t use a real estate agent is because they believe they will save the commission an agent charges for getting their house on the market and selling it. A new study by Collateral Analytics, however, reveals that FSBOs don’t actually save anything, and in some cases may be costing themselves more, by not listing with an agent.

In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.” (emphasis added)

Why would FSBOs net less money than if they used an agent?

The study makes several suggestions:

• “There could be systematic bias on the buyer side as well. FSBO sales might attract more strategic buyers than MLS sales, particularly buyers who rationalize lower-priced bids on with the logic that the seller is “saving” a traditional commission. Such buyers might specifically search for and target sellers who are not getting representational assistance from agents.” In other words, ‘bargain lookers’ might shop FSBOs more often.
• “Experienced agents are experts at ‘staging’ homes for sale” which could bring more money for the home.
• “Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.” If more buyers see a home, the greater the chances are that there could be a bidding war for the property.

Three conclusions from the study:

1. FSBOs achieve prices significantly lower than those from similar properties sold by Realtors using the MLS.
2. The differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%.
3. The sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.

Bottom Line

If you are thinking of selling, FSBOing may end up costing you money instead of saving you money.

You might also enjoy reading...

• Why Is It Important to Use a Professional to Sell Your Home?
• To Stage…or Not to Stage? That Is the Question! [INFOGRAPHIC]
• 93.9% Of Homes in The US Have Positive Equity
• Do Your Future Plans Include a Move? What’s Stopping You from Listing Now?

Keeping Up with the Joneses!

Want to Keep up with the Joneses? Now’s the Time

 Wednesday August 23rd, 2017  For Buyers, For Sellers, Housing Market Updates, Move-Up Buyers

Does your current house fit your needs? Does it seem like everyone else is moving up and moving on to more luxurious surroundings? Are you wondering what it would take to start living your dream life?

Market conditions around the country have presented an opportunity like no other for those who are looking to make the jump to a premium or luxury home.

The National Association of Realtors reports that national inventory levels are now at a 4.3-month supply. A normal market, where prices appreciate with inflation, has 6-7-months inventory. The national market has echoed the conditions felt in the starter and trade-up markets as inventory has declined year-over-year for 25 consecutive months.

The chart below shows the relationship between the inventory of homes for sale and prices.

According to Trulia’s latest Inventory Report, the inventory of homes for sale in the two lower priced markets has dropped by double digit percentages over the last 12 months (16% for starter and 13% for trade-up homes). While the inventory of homes in the premium home category has dropped by only 4%.

This has created a seller’s market in the lower-priced markets, as 54% of homes were on the market for less than a month in the last Realtors Confidence Index, and a buyer’s market in the luxury market, where homes were on the market for an average of 160 days according to the Institute for Luxury Home Marketing.

Bottom Line

If you are even thinking of listing your home and moving up to a luxury home, let’s get together to evaluate your ability to do so. Homeowners across the country are upgrading their homes, why can’t you? Your dream home is waiting!

Local Perspective

Keller, Fort Worth and Saginaw in particular are seeing a split in the market that could really benefit "move up" buyers. Your present home has probably NEVER been worth more, but prices ABOVE the market average of about 220,000 are not going up as fast. It's the perfect time to buy your new home IF you have a plan with an experienced agent who can help you sell your existing home in the right time frame. I know one. Guess who? Visit www.Mike4Houses.com

Housing Bubble? What Housing Bubble?

58% of Homeowners See a Drop in Home Values Coming

 Thursday August 17th, 2017  For Buyers, Housing Market Updates, Move-Up Buyers

According to the recently released Modern Homebuyer Survey from ValueInsured, 58 percent of homeowners think there will be a “housing bubble and price correction” within the next 2 years.

After what transpired just ten years ago, we can understand the concern Americans have about the current increase in home prices. However, this market has very little in common with what happened last decade.

The two major causes of the housing crash were:

1. A vast oversupply of housing inventory caused by home builders building at a pace that far exceeded historical norms.
2. Lending standards that were so relaxed that unqualified buyers could easily obtain financing thus enabling them to purchase a home.

Today, housing inventory is at a 20-year low with new construction starts well below historic norms and financing a home is anything but simple in the current mortgage environment. The elements that precipitated the housing crash a decade ago do not exist in today’s real estate market.

The current increase in home prices is the result of a standard economic equation: when demand is high and supply is low, prices rise.

If you are one of the 58% of homeowners who are concerned about home values depreciating over the next two years and are hesitant to move up to the home of your dreams, take comfort in the latest Home Price Expectation Survey.

Once a quarter, a nationwide panel of over one hundred economists, real estate experts and investment & market strategists are surveyed and asked to project home values over the next five years. The experts predicted that houses would continue to appreciate through the balance of this year and in 2018, 2019, 2020 and 2021. They do expect lower levels of appreciation during these years than we have experienced over the last five years but do not call for a decrease in values (depreciation) in any of the years mentioned.

Bottom Line

If you currently own a home and are thinking of moving-up to the home your family dreams about, don’t let the fear of another housing bubble get in the way as this housing market in no way resembles the market of a decade ago. Fort Worth, Keller, Watauga, Saginaw, Haslet, Roanoke and all of Tarrant, Denton, Colin counties continue to see short inventories and steady appreciation.  With rates still low, it's the right time to make the move to your new home.

Sellers: Your Home is an Oasis in an Inventory Desert

 Wednesday August 16th, 2017  For Sellers, Move-Up Buyers

First-time homebuyers are flocking to the real estate market by the thousands to find their dream homes in order to make their dreams of homeownership a reality. Unfortunately for many, the inventory of starter and trade-up homes in the US has struggled to keep up with demand!

According to the National Association of Realtors (NAR), the inventory of homes for sale dropped 7.1% year-over-year to a 4.3-month supply and is down for the 25th consecutive month.

Some homeowners may be hesitant to list their homes for sale because they are worried that they will also have a problem finding a home to buy and move in to. This is a legitimate concern; no one wants to sell their home quickly and not have anywhere to live.

But there is good news! If you are thinking of moving up to a luxury or premium home, there is more inventory available in these markets and you may even get a great deal on a home that has been on the market for a while.

If you are the owner of a starter home and you are looking to move into a trade-up home, or if you are just looking to relocate to a new area in a home of the same size, there is still hope!

In many markets, homeowners are building contingency plans into their contracts. This means that the homeowner builds in extra time before they close in order to find their dream home and they are upfront about the contingency with any buyers who come to see the house.

Your home is an oasis to buyers who are searching for homes in today’s market. The right buyers will sympathize and wait for you and your family to find your next home.

Bottom Line

Don’t let the fear of not finding a home to move in to stop you from moving on with your life. Let’s get together to discuss ways to set expectations with potential buyers from the start. Have you wanted to sell your home and buy another but afraid that you won't be successful? I have PROVEN methods that can make it happen. Many of my clients are now enjoying their new home in Keller, Watauga, Saginaw, Fort Worth, Haslet and Roanoke. They sold their existing home in a matter of days (and sometimes HOURS) of putting it on the market and used the profit from the sale to buy their new home. Contact me and lets talk about how to make that happen for you!   Contact me at Mike4Houses.Com

Homes Are Selling Quickly Nationwide. Are You Ready to Act When The Right Home Comes Along?

Homes Are Selling Quickly Nationwide

 Tuesday August 15th, 2017  For Sellers, Housing Market Updates, Move-Up Buyers

The National Association of Realtors (NAR) recently released their latest Existing Home Sales Report, which revealed that homes were on the market for an average of 28 days in June. This is a slight increase from the 27 days reported in May, but down from 34 days reported a year ago.

54% of homes across the country were on the market for less than a month in June!

Among the 27 states with homes selling in 30 days or less are Washington, Utah, California, and Colorado. The map below was created using results from NAR’s Monthly Realtors Confidence Index Survey.

Bottom Line

Buyer demand is increasing as the inventory of homes available for sale remains low. If you are thinking about listing your home for sale this year, let’s meet up so I can help you take advantage of current market conditions!  Keller, Saginaw, Watauga, North Richland Hills, Roanoke, and Fort Worth rank at the top for homes selling quickly.   If you are shopping for a home do these things:  1.Get pre-approved with a lender so your offer is more likely to be accepted and you know your price range. 2.  Contact me to have a free custom home search site set up that keeps you informed so when the perfect home comes on the market, you don't miss it.

Where Have All The Homes Gone?

"What happened to all the homes? I hear this question a great deal from buyers shopping for a home. This article from REALTOR® Magazine gives some insight. The fear of finding a new home to fit changing lifestyles before selling is a factor here in Fort Worth, Keller, Watauga, North Richland Hills, Roanoke and Saginaw. My advice if you're thinking of selling your home and buying another is 1. Have your home READY to list. Do your market research for a realistic price, consult an agent and have the home ready to sell. If your home is in good condition now, have the listing photos taken and have your agent prepared to activate the listing on a moment's notice. 2. Investigate "bridge loan" opportunities that would allow you to buy a home and THEN market yours. It will remove the need for a "contingent on sale: clauses that can make your offer to buy the house less attractive and give you flexibility to have your existing home in ideal condition by by moving out then completing minor upgrades like painting rooms or doing minor upgrades to get the best price. 2. Find your new home and get it under contract. (If you did step 2 and have your bridge financing in place, GREAT! Now you can close and move even before the next step.) 3. Put your home on the market at a fair market price and have a plan from your agent for marketing the first days it's on the market. In short inventory situations, you have your BEST opportunity in the first days it' on the market. Your objective is to get the maximum exposure for the house and let buyers compete for the home.

Contact me and I will do a free Comparative Market Analysis so you know what similar homes have sold for in your neighborhood and advise you on the best way to maximize your sale return and the most efficient way to find your new home.

2 Major Reasons Why Inventory Is So Low

DAILY REAL ESTATE NEWS | FRIDAY, AUGUST 11, 2017

Inventory of available homes on the market is the lowest it’s been in two decades, but the reasons may surprise you. Two of the likely culprits are baby boomers and homeowners who are simply satisfied with their home, according to realtor.com®’s Housing Shortage Study. 

Baby boomers are showing a desire to age in place in their current homes, and their refusal to sell is creating a clog in the market, according to the study. Eighty-five percent of baby boomers surveyed say they are not planning to sell their home in the next year. That means 33 million properties—many of which are urban condos or suburban single-family homes—will stay off the market. Many of those properties would be popular choices for millennials, a generation still largely waiting in the wings to break into homeownership. 

“Boomers, indeed, hold the key to those homes the market desperately needs, both in the urban condo and the detached suburban home segment,” says realtor.com® chief economist Danielle Hale. “But with a strong economy and rising home prices, there’s really no reason for established homeowners to sell in the short term. Although downsizing might be on the minds of boomers, they face the same inventory shortages and price increases plaguing millennials.”

Furthermore, 63 percent of respondents to the survey indicate that their current home meets the needs of their family. They cite low interest rates (16 percent), recently purchasing their home (15 percent), and needing to make home improvements and low property taxes (each at 13 percent) as reasons not to sell. “Life events drive real estate transactions,” Hale says. “When the majority of homeowners feel their family’s needs are being met by their current home, there is nothing compelling to them to put their home on the market.”

There may be hope that more starter homes will hit the market soon. Possibly offsetting the low supply of starter homes, which is down 17 percent year over year, 60 percent of respondents to realtor.com®’s survey who did say they plan to sell in the next year are millennials who want to move to a larger home or one with nicer features.

“The housing shortage forced many first-time home buyers to consider smaller homes and condos as a way to literally get their foot in the door,” says Hale. “Our survey data reveals that we may see more of these homes hitting the market in the next year, but whether these owners actually list will depend on whether they can find another home.”

Source: realtor.com®

Hey, Millennial Homeowners!! It May Be Time to Sell

Contrary to what many believe, Millennials are not the ‘renter’ generation. Millennials purchased a larger percentage (34%) of homes in the U.S. than any other age group in 2017 and the most recent Census Bureau report shows that the homeownership rate among Millennials is finally on the rise.

Many Millennials took advantage of post housing crash prices and the First-Time Homebuyers’ Tax Creditand jumped into homeownership in 2010. If you are one of these buyers, now may be the time to sell for many reasons. Here are a few:

1. Equity Build-Up

Home prices have been on the rise since the beginning of 2012 and your house may have appreciated by more than you think. ATTOM Data Solutions, in their Q2 2017 U.S. Home Sales Report revealed that:

“…homeowners who sold in the second quarter realized an average price gain of $51,000 since purchase — the highest average price gain for home sellers since Q2 2007, when it was $57,000.

The average home seller price gain of $51,000 in Q2 2017 represented an average return of 26 percent on the previous purchase price of the home, the highest average home seller return since Q3 2007, when it was 27 percent.”

2. Projected Home Price Increases

If you just got married or just found out you are about to become a parent, you may have plans to move up a bigger home or perhaps move to a different area. Waiting to buy a more expensive home in this market probably doesn’t make sense. The experts contacted for the Home Price Expectation Survey are projecting home prices to increase by nearly 5% over the next year. Yes, your house’s price will increase but not as much as a home currently valued higher than yours.

3. Projected Interest Rate Increases

The Mortgage Bankers’ Association, Freddie Mac, Fannie Mae and the National Association of Realtors are each projecting mortgage rates to increase over the next year.

Higher PRICES + Higher INTEREST RATES = LARGER MORTGAGE PAYMENTS.

Bottom Line

If you are lucky enough to be one of those Millennials who purchased a house in 2010 (or even later), now might be the perfect time to move up to the home of your dreams!

Do you know what your home would bring in the current market?   Keller, Saginaw, North Richland Hills, Watauga, Hurst, Roanoke and Fort Worth have all seen great increases in market price.   I'll be glad to run an analysis for you at no charge so you know you home's selling price range in the current market.   You may be amazed!