#RealBrokerLLC #granbyct #ctrealestate #StephenSimardRealtor #GranbyRealtor
0 Comments
Do headlines have you questioning what’s going to happen with home prices? Experts forecast home prices will not fall or depreciate. Instead, they’re likely to continue appreciating, but at a more moderate, decelerated pace. If you want to discuss what’s going on with home prices in our local market, DM me today.
Source: KCM #homepriceappreciation #dreamhome #realestate #homeownership #realestategoals #expertanswers #stayinformed #staycurrent #powerfuldecisions #confidentdecisions #instarealestate #instarealtor #realestatetipsoftheday #realestatetipsandadvice #keepingcurrentmatters #StephenSimard #RealBrokerLLC Once you’ve applied for a mortgage to buy a home, there are some key things to keep in mind. While it’s exciting to start thinking about moving in and decorating, be careful when it comes to making any big purchases. Here are a few things you may not realize you need to avoid after applying for your home loan.
Don’t Deposit Large Sums of Cash Lenders need to source your money, and cash isn’t easily traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer. Don’t Make Any Large Purchases It’s not just home-related purchases that could disqualify you from your loan. Any large purchases can be red flags for lenders. People with new debt have higher debt-to-income ratios (how much debt you have compared to your monthly income). Since higher ratios make for riskier loans, borrowers may no longer qualify for their mortgages. Resist the temptation to make any large purchases, even for furniture or appliances. Don’t Co-Sign Loans for Anyone When you co-sign for a loan, you’re making yourself accountable for that loan’s success and repayment. With that obligation comes higher debt-to-income ratios as well. Even if you promise you won’t be the one making the payments, your lender will have to count the payments against you. Don’t Switch Bank Accounts Lenders need to source and track your assets. That task is much easier when there’s consistency among your accounts. Before you transfer any money, speak with your loan officer. Don’t Apply for New CreditI t doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), it will have an impact on your FICO® score. Lower credit scores can determine your mortgage interest rate and possibly even your eligibility for approval. Don’t Close Any Accounts Many buyers believe having less available credit makes them less risky and more likely to be approved. This isn’t true. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those aspects of your score. In Short, Consult an Expert To sum it up, be upfront about any changes when talking with your lender. Blips in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. If your job or employment status has changed recently, share that with your lender as well. Ultimately, it’s best to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature. Bottom Line You want your home purchase to go as smoothly as possible. Remember, before you make any large purchases, move your money around, or make any major life changes, be sure to consult your lender – someone who’s qualified to explain how your financial decisions may impact your home loan. Source:KCM #FirstTimeHomeBuyers#ForBuyers#MoveUpBuyers #StephenSimard #RealBrokerLLC If you own a home, your net worth likely just got a big boost thanks to rising home equity. Equity is the current value of your home minus what you owe on the loan. And today, based on recent home price appreciation, you’re building that equity far faster than you may expect – here’s how it works. Because there’s an ongoing imbalance between the number of homes available for sale and the number of buyers looking to make a purchase, home prices are on the rise. That means your home is worth more in today’s market because it’s in high demand. As Patrick Dodd, President and CEO of CoreLogic, explains: “Price growth is the key ingredient for the creation of home equity wealth. . . . This has led to the largest one-year gain in average home equity wealth for owners. . . .” Basically, because your home value has likely climbed so much, your equity has increased too. According to the latest Homeowner Equity Insights from CoreLogic, the average homeowner’s equity has grown by $64,000 over the last 12 months. While that’s the nationwide number, if you want to know what’s happening in your area, look at the map below. It breaks down the average year-over-year equity growth for each state using the data from CoreLogic. The Opportunity Your Rising Home Equity Provides
In addition to building your overall net worth, equity can also help you achieve other goals like buying your next home. When you sell your current house, the equity you built up comes back to you in the sale. In a market where homeowners are gaining so much equity, it may be just what you need to cover a large portion – if not all – of the down payment on your next home. So, if you’ve been holding off on selling or you’re worried about being priced out of your next home because of today’s ongoing home price appreciation, rest assured your equity can help fuel your move. Bottom Line If you’re planning to make a move, the equity you’ve gained can make a big impact. To find out just how much equity you have in your current home and how you can use it to fuel your next purchase, connect with a trusted real estate advisor. Source: KCM #ForSellers#HousingMarketUpdates#MoveUpBuyers#Pricing#StephenSimard#RealBrokerLLC As we celebrate Juneteenth, let’s reflect on the work that still needs to be done so there's equitable access to housing for all.
Source: KCM #juneteenth #BlackHomeownership #realestate #homeownership #homebuying #realestategoals #realestateexpert #realestateagency #keepingcurrentmatters #StephenSimard #RealBrokerLLC Today we take time to honor and recognize the past and present experiences of Black Americans. When it comes to real estate specifically, equitable access to housing has come a long way, but the path to homeownership is still steeper for households of color. The Gap in Homeownership Rate in America It’s a more challenging journey to achieve homeownership for some buyers, as shown by the measurable gap between the overall average U.S. homeownership rate and that of non-white groups. Today, Census data shows the lowest homeownership rate persists in the Black community (see graph below): This graph clearly indicates there’s a gap that still exists in the percentage of people in each community who are able to achieve homeownership.
How Homeownership Impacts Household Wealth One of the challenges that could make buying a home harder for these groups is how difficult it can be to accumulate wealth. Even today, there are obstacles certain racial and ethnic groups, especially the Black community, still face. A recent article from NextAdvisor explains: “The median Black household earns 61 cents for every dollar earned by a comparable White household, according to the Economic Policy Institute. This not only makes it more difficult to afford a home, but also to accumulate and pass on generational wealth.” This can delay or prevent many from achieving homeownership, challenging their ability to grow their net worth and build wealth that can pass down to future generations – a point that’s clear in a 2022 report from the National Association of Realtors (NAR): “Given that homeownership contributes to wealth accumulation and the homeownership rate is lower in minority groups, data shows that the net worth for these groups is also lower. At $188,200, the net worth of a typical white family was nearly 8 times greater than that of a Black family ($24,100) in 2019.” It’s important to talk about the experience Black homebuyers may have and the challenges they may face as they pursue their dream of homeownership. The inequity that remains in housing can be a point of pain and frustration. That’s why it’s so important for members of diverse groups to have the right team of experts on their sides throughout the homebuying process. These professionals aren’t only experienced advisors who understand the market and give the best advice. They’re also compassionate allies who will advocate for your best interests every step of the way. They can point you to important resources and tools that can help you throughout your journey to homeownership. Bottom Line Opportunities in real estate improve every day, but there are still equity challenges that many face. Reach out to a trusted local real estate professional so you have an advocate on your side to help you achieve your dream of homeownership. Source: KCM #FirstTimeHomeBuyers#ForBuyers#HousingMarketUpdates#StephenSimard #RealBrokerLLC Source: KCM #GranbyRealtor #StephenSimardRealtor #RealBrokerLLC #ARecessionDoesntEqualaHousingCrisis Some Highlights
Source: KCM #ForSellers#HousingMarketUpdates#Infographics#StephenSimard #RealBrokerLLC Experts in the real estate industry use a number of terms when they talk about what’s happening with home prices. And some of those words sound a bit similar but mean very different things. To help clarify what’s happening with home prices and where experts say they’re going, here’s a look at a few terms you may hear:
Where Home Prices Have Been in Recent Years For starters, you’ve probably heard home prices have skyrocketed over the past two years, but homes were actually appreciating long before that. You might be surprised to learn that home prices have climbed for 122 consecutive months (see graph below): As the graph shows, houses have gained value consistently over the past 10 consecutive years. But since 2020, the increase has been more dramatic as home price growth accelerated. So why did home prices climb so much? It’s because there were more buyers than there were homes for sale. That imbalance put upward pressure on home prices because demand was high and supply was low. Where Experts Say Home Prices Are Going While this is helpful context, if you’re a buyer or seller in today’s market, you probably want to know what’s going to happen with home prices moving forward. Will they continue that same growth path or will home prices fall? Experts are forecasting ongoing appreciation, just at a decelerated pace. In other words, prices will keep climbing, just not as fast as they have been. The graph below shows home price forecasts from seven industry leaders. None are calling for prices to fall (see graph below): Mark Fleming, Chief Economist at First American, identifies a key reason why home prices won’t depreciate or drop:
“In today’s housing market, demand for homes continues to outpace supply, which is keeping the pressure on house prices, so don’t expect house prices to decline.” And although housing supply is starting to tick up, it’s not enough to make home prices decline because there’s still a gap between the number of homes available for sale and the volume of buyers looking to make a purchase. Terry Loebs, Founder of the research firm Pulsenomics, notes that most real estate experts and economists anticipate home prices will continue rising. As he puts it: “With home values at record-high levels and a vast majority of experts projecting additional price increases this year and beyond, home prices and expectations remain buoyant.” Bottom Line Experts forecast price deceleration, not depreciation. That means home prices will continue to rise, just at a slower pace. Connect with a trusted real estate professional to get a full picture of what’s happening with home prices in your local market and to discuss your buying and selling goals. Source: KCM #ForBuyers#ForSellers#HousingMarketUpdates#Pricing#StephenSimard #RealBrokerLLC Do you have questions about home prices, mortgage rates, or inflation in today’s housing market? Are you wondering how it impacts you when you buy or sell? If so, DM me for copies of these digital guides so you have the information you’re looking for to make your move with confidence.
Source: KCM #buyingahome #sellingyourhouse #realestateguides #realestate #homeownership #homebuying #realestategoals #realestateagency #realestateadvice #realestatemarket #realestateexperts #realestateagents #keepingcurrentmatters#StephenSimard #RealBrokerLLC |
Archives
October 2022
Categories
All
|