Home Buying

4 Great Reasons to Buy This Spring!

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Here are four great reasons to consider buying a home today instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.9% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.8% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained around 4% over the last couple months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtorsare in unison, projecting that rates will increase by at least a half a percentage point this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You are Paying a Mortgage 

There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.

 

Posted by The KCM Crew

Don’t Let Your Luck Run Out [INFOGRAPHIC]

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Some Highlights:

  • The “Cost of Waiting to Buy” is defined as the additional funds it would take to buy a home if prices and interest rates were to increase over a period of time.
  • Freddie Mac predicts that interest rates will increase to 4.8% by this time next year, while home prices are predicted to appreciate by 4.8% according to CoreLogic.
  • Waiting until next year to buy could cost you thousands of dollars a year for the life of your mortgage!

 

Posted by The KCM Crew

Over Half of All Buyers Are Surprised by Closing Costs

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According to a recent survey conducted by ClosingCorp, over half of all homebuyers are surprised by the closing costs required to obtain their mortgage.

After surveying 1,000 first-time and repeat homebuyers, the results revealed that 17% of homebuyers were surprised that closing costs were required at all, while another 35% were stunned by how much higher the fees were than expected.

“Homebuyers reported being most surprised by mortgage insurance, followed by bank fees and points, taxes, title insurance and appraisal fees.”

Bankrate.com recently gathered closing cost data from lenders in every state and Washington, D.C. to be able to share the average costs in each state. The map below was created using the closing costs on a $200,000 mortgage with a 20% down payment.

Keep in mind that if you are in the market for a home above this price range. your costs could be significantly more. According to Freddie Mac,

“Closing costs are typically between 2 and 5% of your purchase price.”

Bottom Line

Speak with your lender and agent early and often to determine how much you’ll be responsible for at closing. Finding out that you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to.

 

Posted by The KCM Crew

8 Ways To Find Healthy Neighborhoods In Your City

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Neighborhoods that make it easy to go for a run or kick around a soccer ball could give your lifestyle a health boost.

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Your neighborhood could play a factor in your overall health. Here are some considerations to make during your house hunt.

From green space to traffic volume, the neighborhood in which you live could contribute to your health. Think about it: If your neighborhood lacks easily accessible areas for you to exercise, you’ll probably exercise less, at least outdoors. Just as the addition of playgrounds gives children a place to play, sidewalks, for example, can encourage you to get out and walk. And when you do spend time outside in your neighborhood, you’re more likely to get to know your neighbors, which adds to a feeling of community. So whether you’re shopping for a home for sale in Denver, CO, or Columbia, SC, here are some factors to weigh if a healthy neighborhood tops your list of must-haves.

1. Look for sidewalks and bike lanes

Being able to walk or bike for exercise or to conduct daily errands is good for you — plus, less traffic and air pollution means a healthier planet too. Even having access to public transportation can contribute to a healthy lifestyle, since there’s usually some walking to get to your bus stop or train station. “Safety and walkability to a vibrant mix of services, schools, and various modes of travel are keys,” says John Zinner, a Leadership in Energy and Environmental Design Fellow with the U.S. Green Building Council.

2. Don’t underestimate a lush tree canopy

New developments often produce houses that dot every “i” and cross every “t” on most people’s home wish lists. But some new neighborhoods and developments end up with a sparse tree canopy. That’s too bad, because not only do trees often enhance property values, but they can also contribute to a healthy neighborhood. “Tree canopies cool spaces,” says Cassy Aoyagi, president of FormLA Landscaping, a California sustainable-landscaping firm. A cooler lot means your HVAC system doesn’t have to work as hard in the heat of summer. Those trees can also provide shade for your outdoor pursuits. But the best part just might be that greenery in general is good for you. “Lush, green spaces have been shown to decrease stress, even mitigating symptoms of PTSD and ADHD,” Aoyagi says.

3. Look for neighborhoods with greenways, community gardens, and trails

The more access you have to nature — and nature’s bounty — the healthier you’ll probably be. “Locating a healthy neighborhood has increasingly become a must-have for many buyers,” says Danielle Schlesier, a Boston, MA, agent. “I point [buyers] toward the community parks-and-recreation website. There, they can see if there are local farmers markets, community fitness programs, greenway trail maps, and dog parks available.” Another great tool to locate your favorite healthy amenities is the Live Well layer in Trulia Maps.

4. Observe neighborhood social connections and activity level

Having a sense of security and even happiness comes with being able to socialize with your neighbors. Visit the neighborhood you’re considering at various times of day to see if people are out and about. Are neighbors chatting out front? Jogging on neighborhood streets? Out walking their dogs or playing with the kids? All of these are positive signs that a neighborhood has a thriving, active, and close-knit community.

5. Scout out parks, sports courts, and places to play

The healthiest neighborhoods offer variety and versatility when it comes to recreation and active living. In addition to nature exploration resources like trails and greenways, look for neighborhoods that offer tennis or basketball courts, playgrounds, parks, fitness centers, and pools. You may have to pay for these extra amenities through homeowners’ association (HOA) fees, membership requirements, or simply higher home prices, but the ability to easily diversify your workouts can lead to greater health and fitness.

6. Go to a neighborhood association meeting

Mark your calendar for the next meeting of the neighborhood association or HOA in the areas you’re considering. In addition to meeting your potential neighbors, you could get an inside look at neighborhood concerns (such as safety issues or traffic congestion) and find out about future construction or plans for enhancements. You’ll also get a sense of how close-knit the community is. An active, positive group of neighbors working to continually improve their neighborhood can clue you in on future healthy upgrades coming to a neighborhood. Plus, if you’re trying to narrow down your options, going to a few of these meetings could help you decide where you’ll really feel at home.

7. Consider traffic volume

Limited traffic, both in volume and speed, can contribute to a healthy neighborhood. But what makes high traffic unhealthy, exactly? Noise, for one. The more traffic there is and the faster cars travel, the noisier the environment, which can affect your sleep and stress levels. There’s that pesky little pollution issue, for another. Plus, longer commutes due to higher traffic volumes can decrease your overall quality of life. Check what your possible commute could look like using the Commute layer in Trulia Maps.

8. Check to see if healthy essentials are within walking distance

Healthy neighborhoods incorporate plenty of ways to be active, but they also have essential services nearby, such as day care centers, pharmacies, doctors’ offices, a hospital, and urgent care. Easy access to affordable, nutritious food from supermarkets or farmers markets is important too — it’s even been associated with less obesity. And give your future new neighborhood bonus points if any of these essentials are within walking distance!

 

Posted by Laura Agadoni on Trulia

 

 

First Comes Love… Then Comes Mortgage?

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According to the National Association of REALTORS most recent Profile of Home Buyers & Sellers, married couples once again dominated the first-time homebuyer statistics in 2016 at 58% of all buyers. It is no surprise that having two incomes to save for down payments and contribute to monthly housing costs makes buying a home more attainable.

But, many couples are also deciding to buy a home before spending what would be a down payment on a wedding, as unmarried couples made up 14% of all first-time buyers last year.

If you’re single, don’t fret! Single women made up 18% of first-time buyers in 2016, while single men accounted for 8% of buyers. One recent article pointed to a sense of responsibility and commitment that drives many single women to want to own their home, rather than rent.

Here is the breakdown of all first-time homebuyers in 2016 by percentage of all buyers, income, and age:

Bottom Line

You may not be that much different than those who have already purchased their first homes. Meet with a local real estate professional today who can help determine if your dream home is already within your grasp.

 

Posted by The KCM Crew

Daydreaming About Your Perfect Home? Know What You WANT vs. What You NEED

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In this day and age of being able to shop for anything anywhere, it is really important to know what you’re looking for when you start your home search.

If you’ve been thinking about buying a home of your own for some time now, you’ve probably come up with a list of things that you’d LOVE to have in your new home. Many new homebuyers fantasize about the amenities that they see on television or Pinterest, and start looking at the countless homes listed for sale through rose-colored glasses.

Do you really need that farmhouse sink in the kitchen in order to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Could the ‘man cave’ of your dreams be a future renovation project instead of a make-or-break right now?

The first step in your home buying process should be to get pre-approved for your mortgage. This allows you to know your budget before you fall in love with a home that is way outside of it.

The next step is to list all the features of a home that you would like, and to qualify them as follows:

  • ‘Must Haves’ – if this property does not have these items, then it shouldn’t even be considered. (ex: distance from work or family, number of bedrooms/bathrooms)
  • ‘Should Haves’ – if the property hits all of the ‘must haves’ and some of the ‘should haves,’ it stays in contention but does not need to have all of these features.
  • ‘Absolute Wish List’ – if we find a property in our budget that has all of the ‘must haves,’ most of the ‘should haves,’ and ANY of these, it’s the winner!

Bottom Line

Having this list fleshed out before starting your search will save you time and frustration, while also letting your agent know what features are most important to you before starting to show you houses in your desired area.

 

Posted by The KCM Crew

Why Pre-Approval Should Be Your First Step

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In many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the amount of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.

Even if you are in a market that is not as competitive, knowing your budget will give you the confidence of knowing if your dream home is within your reach. 

Freddie Mac lays out the advantages of pre-approval in the My Home section of their website:

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you with this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.” 

Freddie Mac describes the 4 Cs that help determine the amount you will be qualified to borrow:

  1. Capacity: Your current and future ability to make your payments
  2. Capital or cash reserves: The money, savings and investments you have that can be sold quickly for cash
  3. Collateral: The home, or type of home, that you would like to purchase
  4. Credit: Your history of paying bills and other debts on time

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Bottom Line

Many potential home buyers overestimate the down payment and credit scores needed to qualify for a mortgage today. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so as well.

 

Posted by The KCM Crew