Home Owner Newsletter for July 2016

If you are looking for tips to manage your stress level when you are buying a new home while selling your current home, information on mortgage loans, DIY tips, or just a fun summer recipe, check out this month's edition of the Home Owner's Newsletter by clicking the link below.

https://bhhsmarketingresource.com/p/c3e7bbdaa78376224d8899c674961e3b/2341163

Great Advice for the Soon-to-Be College Graduates

http://www.marketwatch.com/story/warren-buffetts-snowball-retirement-advice-2015-11-16?mod=realtor

I Want to Apply for a Mortgage. Now What?

What Do You Actually Need to Get a Mortgage?

Fannie Mae recently released their “What do consumers know about the Mortgage Qualification Criteria?” Study.  The study revealed that Americans are misinformed about what is required to qualify for a mortgage when purchasing a home.  Here are three takeaways:

• 59% of Americans either don’t know (54%) or are misinformed (5%) about what FICO score is necessary
• 86% of Americans either don’t know (59%) or are misinformed (25%) about what an appropriate Back End Debt-to-Income (DTI) ratios is
• 76% of Americans either don’t know (40%) or are misinformed (36%) about the minimum down payment required

Whether buying your first home or moving up to your dream home, knowing your options will definitely make the mortgage process easier. Your dream home may already be within your reach.

2015: The Best Year for Housing Sales Since 2006

          

Powered by the prospect of increasing mortgage rates for 2016 and warmer than typical weather in November and December, existing-home sales in 2015 were up 7.7 percent over 2014, marking the best year since the boom of 2006.

 

 According to numbers provided by the National Association of Realtors, the median existing-home price for all housing types was in December was up 7.6 percent to $224,100, and the number of distressed homes-short sales or foreclosures-dropped to 8 percent in December, down from 11 percent in December of last year. Additionally, homes sold quicker. On average, homes stayed on the market for 58 days in December, which is below the 66 days in December 2014.

With limited inventory, mortgage rates continuing to increase, the increasing number of millennials beginning to hit the home-buying market, it is a great time to sell your home. If you or someone you know has been considering making a change, let us help you sift through all the details of this fun and exciting process. 

 

 

Rent vs. Buy: Either Way You're Paying a Mortgage

Rent vs. Buy: Either Way You’re Paying

 A Mortgage

There are some people that have not 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 your mortgage or your landlord’s.

As The Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.

That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Christina Boyle, a Senior Vice President, Head of Single-Family Sales & Relationship 

Management at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have 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.

The graph below shows the widening gap in net worth between a homeowner and a renter: 

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting with home values and interest rates projected to climb.

Contact me to get started down the road to home ownership: 757-636-1340

New Year's Resolutions for the Future Homebuyer

Are you looking to buy or invest in a home in 2016? Here are a few New Year’s Resolutions you can make to help get you to the closing table this year.

ESTABLISH AND MAINTAIN GOOD CREDIT

Establishing and maintaining good credit plays a vital role in the home buying process. First, start out by reviewing your credit history and determine which areas you need to improve on. Set a monthly spending limit and stick to it! A monthly spending limit will help you stay organized and will ensure you won’t overspend. Note, it is important to pay your bills on time to improve your credit. You can get a free copy of your credit report anytime at https://www.annualcreditreport.com/index.action.

SAVE FOR A DOWN-PAYMENT 

Very few people have the means to immediately pay off their home and therefore must save for a down payment. A down payment is a percentage of your home’s purchase price that you pay upfront. To ensure you have money set aside, establish a monthly budget. Start by creating a spreadsheet that shows your monthly gross income and your expenses for each month.  Set time aside each month to review your budget and spending habits and determine where you can cut costs.

GET PREAPPROVED BY A LOAN OFFICER & DETERMINE WHAT YOU CAN AFFORD

It’s imperative to know what you can afford before you start your home search. Contact your mortgage lender to find out what you can afford and determine what monthly payment is right for you. Getting pre-approved upfront will help you make sure you start your search in the right direction. While applying for your mortgage be sure to have your supporting documentation together to help ease the process of approval along. Below are standard items needed for the mortgage approval process.

1. Copies of Federal Tax Returns (1040s) for the previous two years. All pages. (2012 if using VHDA)
2. Copies of all W-2’s for the previous two years. Please provide local street addresses. (No PO Box addresses for employers).
3. Copies of current pay stubs covering the past 30 days, preferably with YTD earnings being reported.
4. Copies of most recent bank statements covering the past sixty days for all checking, savings, stocks, bonds, CDs, IRAs, 401Ks, mutual funds, etc.- all pages.

**For more information on Monarch’s preapproval process click here.**

MOST IMPORTANTLY DO NOT MAKE THESE MISTAKES! 

• Quit your job or get another job unless it is the same line of work and for equal or more money. Please call your loan officer if this should occur.
• Allow anyone to make an inquiry on your credit report.
• Purchase an automobile.
• Purchase any other real estate.
• Any large purchase appliances, furniture, etc.

** Todd McLaughlin, loan officer at Monarch Mortgage, is a contributor to The Wealth Development Network** 

Contact Todd @ 757-869-7782 or tmclaughlin@monarchmortgage.com

www.monarchmortgage.com

Equal Housing Lender

Introduction

Happy New Year!

With a new year comes new resolutions, goals and dreams for many of us. Join a gym, save more money, and eat better are the typical yearly cliches. However, one dream that is constant for many year-in and year-out is to develop more wealth. That's what we are here to do: help individuals develop wealth through home ownership and real estate investment.

To help you develop wealth and realize the joys of homeownership, we will provide you with relevant real estate news and information locally, as well as shared national content. In addition to providing specific information for property investment and home ownership, my network includes local mortgage lenders and contractors. The local lenders will provide timely information on rates, loan programs, and local analysis of national events. The contractors, of course, will provide information on quick house fixes and improvements.

Additionally, you can expect "Neighborhood News", a feature element to highlight specific areas in the region.

Check back weekly for the latest information from our local experts to help you develop your wealth.

Kevin