Category: Mortgage + Real Estate Tips

Avoid These Roadblocks to Closing

“Clear to close!”

That is definitely one of my favorite phrases of all time. But getting to that point can sometimes be challenging.

According to the REALTORS® Confidence Index, which is based on responses from more than 2,500 Realtors nationwide, 23 percent of real estate professionals say they faced closing delays for a transaction in March, and 7 percent say the sale contract was terminated altogether.

Respondents to the survey say the two main reasons were clients having trouble obtaining financing, followed by appraisal issues.

How can you avoid these top two major roadblocks to closing?

Get Pre-Approved Before Looking for a Home*

The best way to ensure your funding will be ready when it comes time to close on a home is to work with me in advance. We’ll review all your finances, get your pre-approval letter prepared, and arm you with the knowledge you need to know exactly how much you can afford, how much you will need to put down and what will be due at closing.

Work With Licensed Professionals

Getting your finances in line isn’t the only important step in the closing process. You will need a professional Realtor by your side to guide your house hunting, making a strong offer, getting appraisals and negotiating any work that needs to be done before closing.

Real estate practitioners say a shortage of appraisers, valuations that are not in line with market conditions, and “out-of-town” appraisers who are not familiar with the local market are the biggest problems they face concerning appraisals. Having an experienced agent as your advocate can help with some of these other roadblocks.

 

While not every process goes perfectly smoothly, with Skyline Home Loans you can count on us to work our hardest to secure your loan and help you avoid obstacles along the way. Call me today to learn more and let’s get you clear to close!

Source: REALTORS® Confidence Index and National Mortgage News

*Pre-approval is only offered on home purchase loans where a sales contract is not yet signed.  It is not a rate lock, loan approval, or commitment to lend.  You must submit additional information for review and approval.

How House Hunting with Millennials Is Changing Real Estate

Millennials — people born between 1981 and 1997 — made up the biggest share of homebuyers in 2016 at 34 percent, according to a recent National Association of Realtors (NAR) study. Eleven percent of those millennial homebuyers purchased new builds.

As a major force in the home buying economy, millennials are changing the game for Realtors.

What’s the difference?

Millennials want a streamlined process, usually see fewer homes than older generations, and are more tech savvy. Some Realtors even report writing up contracts for homes based entirely off text messages.

They do their homework in advance too. With websites like Zillow, Trulia and HomeFinder,  millennials tend to come to agents with a list of houses they want to see already weighing all their options. But what’s online isn’t always accurate or updated. That’s where a qualified and professional agent can still help guide the tech savviest of clients.

Reports also indicate that budgeting and financial planning are characteristics of millennial homebuyers. Even though about a third of the generation has debt in the form of student loans, they are good at making budgets and saving for what they need. The NAR study found that 85 percent of millennial homebuyers said their purchase was a good investment.

Times and buyers may be changing but some things – like working with professionals and relying on updated data – likely won’t for a long time to come.

Source: National Mortgage News

It’s a Good Time to Trade Your Student Debt for Home Debt

Fannie Mae, the government-controlled mortgage giant, is taking steps to make it easier for millions of student loan borrowers to own a home or refinance a mortgage. Student debt has become an increasing concern, amid worries that borrowers burdened by education loans are postponing home buying , causing a drag on the economy. The average undergraduate now leaves college with more than $30,000 in student debt, according to the Institute for College Access and Success.

Fannie Mae, which buys home loans originated by lenders that meet its standards, said Tuesday that it was easing the path for student loan borrowers — and those who may have co-signed such loans — in three ways, said Jonathan Lawless, vice president for customer solutions at Fannie Mae.

 

Read the source article at The New York Times

Mortgage rates tumble to fresh 2017 low

Yesterday, interest rates fell to the lowest they’ve been all year! This is great news for those who are ready to purchase a home or are considering refinancing.

Mortgage rates can change at any moment; that’s why it’s so important to strike while the iron is hot.

Rates for home loans fell in line with Treasury yields, nudging mortgage rates to the lowest level of the year, Freddie Mac said Thursday.

The 30-year fixed-rate mortgage averaged 4.08%, down 2 basis points during the week. The 15-year fixed-rate mortgage averaged 3.34%, down from 3.36%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.18%, down one basis point.

Those rates don’t include fees associated with obtaining mortgage loans.

The 10-year Treasury yield fell five basis points during the week as investors continue to re-assess the expectations for fiscal stimulus and economic growth that followed the November election even as fresh geopolitical worries flared. The benchmark government bond breached a key technical level, 2.30%, twice during the week.

Read the source article at MarketWatch

Millennials would really prefer to live in these 10 cities

Younger home shoppers are set to become the No. 1 homebuying cohort throughout the coming years, but they’re not opting to buy a home just anywhere. Realtor.com took advantage of its website user data to create a list of the top 10 markets where Millennials are looking for a home. While a chunk of the cities on the list are affordable, it’s not true for all of them.

Outside of being in a market with a lot of similarly aged people, the report also broke out exactly how affordable these markets are, along with the unemployment rate.

Read the source article at U.S. Housing Finance News

Will You Go Mobile This Summer?

Are you looking to go mobile this summer and explore our country living in an RV? If so, there are lots of factors to consider for your new home away from home.

Type of Adventure

Will you be taking the RV out just for weekend trips or do you plans to spend a few weeks at a time on the road? Or could it even be a trip lasting several months? Be sure you think about the type and length of your adventure before considering the type of RV to buy.

Types of RVs

After planning your course, then it is time to determine which type of RV will best fit your needs. Here are the different types:

  • Class A Motorhomes – ideal for long distance, bigger families, living in style. Typically include living rooms, sofas, dining tables, TVs, complete kitchens, full bathroom(s), bedroom(s) and closet space. This is the most expensive option with price ranges from $60,000 to more than $1 million.
  • Class B Motorhomes – similar in features to the Class A, but in a smaller size. It is ideal for 2-3 travelers and more like driving a large sized SUV.
  • Class C Motorhomes – a mix between Class A and B, this type is a popular rental RV. Range from 20-40 feet so the size can be close to the Class A but the amenities are not as plenty. This is a good choice for a long weekend or possibly a week away.
  • Travel Trailers – a lightweight, towable option that can sleep up to six people. Sizes range from 12-33 feet and some offer designer-grade interiors. This option is a hit for those who want to leave their trailer on a campsite while exploring surrounding areas with the tow vehicle.
  • Fifth-Wheel Trailer – Easier and more stable to pull than a travel trailer. Excellent for long distance travel or a quick trip to the mountains. Range in size from 18-40 feet long.
  • Pop-Up Trailer – Smallest and lightest of the trailer options. Most economical too with prices starting at $4000. These can normally be towed safely by a minivan and are easy to park. Considered the “starter” RV because many people purchase these affordably to test the waters with camping and road travel before investing in a full-sized motorhome.
  • Sport Utility RV Trailer – This is the newest option of trailer which has a garage area built into the rear to haul motorcycles, quad runners, watercraft, etc. The garage is separated by a solid wall from the rest of the trailer.
  • Truck Camper – This option slide into the bed of a pickup truck, can be offloaded and then set up at a camping site. Typically include a bedroom, small kitchen, toilet and shower.

Rent or Buy?

If you’re a newbie to the RV world, most experts suggest that you rent the rig you’re interested in a few times before you buy. Time to get planning a test weekend adventure or two!

Purchasing Tips

If you’re like most RVers, you’ll probably be financing at least part of your purchase. Check to see what type of loan you can obtain before you go shopping.

TAX TIP: Because virtually every motorhome and many trailers feature beds, kitchens, sinks, and bathrooms, the IRS considers them to be homes. And that means that the interest on your loan may be tax deductible as a home mortgage.

As with any type of home, everyone’s tastes and needs are different. Be sure to do your homework before investing in an RV.

Happy trails to you!

Source: Reserve America

Skyline Financial Corp. and its loan officers are not tax advisors. Always consult a tax professional for details.