Hope Leitner, Realtor®, CRS

Taking the Fear Out of the Mortgage Process A considerable number of potential buyers shy away from the real estate market because they’re uncertain about the buying process – particularly when it comes to qualifying for a mortgage. For many, the mortgage process can be scary, but it doesn’t have to be!   In order to qualify in today’s market, you’ll need a down payment  (the average down payment on all loans last year was 5%, with many buyers putting down 3% or less) , a stable income, and a good credit history. Once you’re ready to apply, here are 5 easy steps  Freddie Mac   suggests  to follow: Find out your current credit history and credit score – Even if you don’t have perfect credit, you may already qualify for a loan. The average FICO Score® for all closed loans in September was 737, according to  Ellie Mae. Start gathering all of your documentation – This includes income verification (such as W-2 forms or tax returns...

You may have noticed that REALTORS® seem to always think now is a good time to buy and they can usually justify it with solid reasoning.   While it can be true in general, a good time to buy has more to do with the individual than anything else.   There are four things to consider. It is a good time to buy a home when you have good credit.   Since the Great Recession and the housing crisis, lenders have been required to be sure that the borrowers have good credit.   This actually benefits not only the lenders but the borrowers because no one wants to buy something that they cannot afford and run the risk of losing it to foreclosure.   FHA has the most lenient FICO credit score of 580+.   VA requires a little higher at 620 while Fannie Mae guidelines on conventional mortgages require a 700 score. It is a good time to buy a home when you have a good job that gives you the income to qualify for the mortgage and the likelihood that you'll continue to be...

Buying a home can be SCARY…Until you know the FACTS Some Highlights: Many potential homebuyers believe they need a 20% down payment and a 780 FICO® score to qualify to buy a home. This stops many people from even trying to jump into homeownership! Here are some facts to help take the fear out of the process: 71% of buyers who purchased homes have put down less than 20%. 78.1% of loan applications were approved last month. In September, the average credit score for approved loans was 737.

5 Tips for Starting Your Home Search In today’s market, low inventory dominates the conversation in many areas of the country. It can often be frustrating to be a first-time homebuyer if you aren’t prepared. Here are five tips from realtor.com ’s article , “How to Find Your Dream Home—Without Losing Your Mind.” 1. Get Pre-Approved for a Mortgage Before You Start Your Search One way to show you’re serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage. Even if you’re in a market that is not as competitive, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach. This will help you avoid the disappointment of falling in love with a home well outside your price range. 2. Know the Difference Between Your ‘Must-Haves’ and ‘Would-Like-To-Haves’ Do you really need that farmhouse sink in the kitchen to be happy with your home choice? Would a two-car garage be a con...

3 Reasons This is NOT the 2008 Real Estate Market No one knows for sure when the next recession will occur. What is known, however, is that the upcoming economic slowdown will not be caused by a housing market crash, as was the case in 2008. There are those who disagree and are comparing today’s real estate market to the market in 2005-2006, which preceded the crash. In many ways, however, the market is very different now. Here are three suppositions being put forward by some, and why they don’t hold up. SUPPOSITION #1 A critical warning sign last time was the surging gap between the growth in home prices and household income. Today, home values have also outpaced wage gains. As in 2006, a lack of affordability will kill the market. Counterpoint The “gap” between wages and home price growth has existed since 2012. If that is a sign of a recession, why didn’t we have one sometime in the last seven years? Also, a buyer’s purchasing power is MUCH GREATER ...

3 Reasons to Use a Real Estate Pro in a Complex Digital World If you’re searching for a home online, you’re not alone; lots of people are doing it. The question is, are you using all of your available resources, and are you using them wisely? Here’s why the Internet is a great place to start the home-buying process, and the truth on why it should never be your only go-to resource when it comes to making such an important decision. According to the National Association of Realtors (NAR), the three most popular information sources home buyers use in the home search are: Online website (93%) Real estate agent (86%) Mobile/tablet website or app (73%) Clearly, you’re not alone if you’re starting your search online; 93% of home buyers are right there with you. The even better news: 86% of buyers are also getting their information from a real estate agent at the same time. Here are 3 top reasons why using a real estate professional in addition to a digital s...

Whether it is a cosmetic or a mechanical reason for upgrading a toilet, you may not know all the choices that are involved to choose the right one for your home.   The current toilet may have cracks or leaks in the bowl or tank.   It could be the aggravation of constant clogging or inefficient flushing.   Maybe there is damage in the porcelain bowl or built-up mineral deposits that are clogging the inlet holes or syphon tube. If frequent repairs have you on a first name basis with the plumber, it may be time to consider replacing the toilet.   There are a lot of things to consider and the following list may help you sort through the choices. Round, oval or compact oval ... There are two basic shapes of toilets: round and oval.   The round bowl requires less space and are less expensive.   The oval or elongated tend to be more comfortable but require more space from the wall than round ones.    Most manufacturers produce a compact oval m...

What FICO® Score Do You Need to Qualify for a Mortgage? While a recent announcement from  CNBC  shares that the average national FICO ®  score has reached an all-time high of 706, the good news for potential buyers is that you don’t need a score that high to qualify for a mortgage. Let’s unpack the credit score myth so you can to become a homeowner sooner than you may think. With today’s  low interest rates , many believe now is a great time to buy – and rightfully so!  Fannie Mae  recently noted that 58% of Americans surveyed say it is a good time to buy. Similarly, the  Q3 2019 HOME Survey  by the  National Association of Realtors  said 63% of people believe now is a good time to buy a home. Unfortunately, fear and misinformation often hold qualified and motivated buyers back from taking the leap into homeownership. According to the same  CNBC  article, “For the first time, the average national credit score has re...

What You Need to Know About the Mortgage Process [INFOGRAPHIC] Some Highlights: Many buyers are purchasing homes with down payments as little as 3%. You may already qualify for a loan, even if you don’t have perfect credit. Your local professionals are here to help you determine how much you can afford, so take advantage of the opportunity to learn more.

Condensation occurs when the air has too much moisture in it which is felt as high humidity.   The water deposits on various surfaces that are cooler than the air itself.   Several things can contribute to the high humidity such as cooking, dishwashers, clothes dryers, bathing and long showers.   If the home has a crawl space under the floor, inadequate ventilation or insulation can cause moisture in the home.  There seems to be a difference of opinions about whether to vent or not vent.  First, determine if you are having a problem and then, weigh the options available to find the best solution. Condensation that forms on windows and other surfaces in your home can cause damage to window trim, frames, drywall, floor coverings and sub-floors as well and the interior framing. To reduce condensation in a home, the moisture saturating the air needs to be reduced.   Just as steam from a shower can fog a mirror, warm air holds more moisture.   When th...

3 Signs the Housing Market Is on the Rebound The residential real estate market has been plodding along for most of the year. However, three recent reports show the market may be on the verge of a rebound: 1. Existing Home Sales  (closed sales) are up, marking two consecutive months of growth. 2. Pending Home Sales  (contracts signed) are up with each of the four major regions reporting both month-over-month growth and year-over-year gains in contract activity. Here is the month-over-month growth: The Northeast rose 0.7% The Midwest increased 0.6% The South increased 1.4% The West grew 3.1% 3. Buyer Traffic  (the number of people shopping for a home) is up compared to the same time last year, and  for the first time in 13 months . The Northeast is up 5.9% The Midwest increased 1.3% The South is up 2.7% The West grew 2.2% In their most recent report,  ShowingTime   Chief Analytics Officer , Daniil Cherkasskiy explained: “The trend...

How Does the Supply of Homes for Sale Impact Buyer Demand? How Does the Supply of Homes for Sale Impact Buyer Demand? | MyKCM The price of any item is determined by supply, as well as the market’s demand for the item. The National Association of REALTORS (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for their monthly REALTORS Confidence Index. Their latest edition sheds some light on the relationship between seller traffic (supply) and buyer traffic (demand). Buyer Demand The map below was created after asking the question: “How would you rate buyer traffic in your area?”How Does the Supply of Homes for Sale Impact Buyer Demand? | MyKCMThe darker the blue, the stronger the demand for homes is in that area. The survey shows that in 3 of the 50 U.S. states, buyer demand is now very strong; only 2 of the 50 states have a ‘weak’ demand. Overall, buyer demand is slightly lower than this time last year but remai...

When a whole lobster was presented at the table of a restaurant, the customer noticed there was only one claw on it.   He asked what happened to the lobster and the waiter said, maybe he lost a fight with another lobster.   The customer replied to the explanation by saying "then, bring me the winner." There are approximately 1.3 million REALTORS® in the U.S.   The July 2019 Existing Home Sales annualized about 5.4 million units with a listing side and a selling side that totals 10.8 million transactions.   That means that the average number of units sold per agent is 8. In any given market, 20% of the agents are selling 80% of the homes.   260,000 agents are selling 8,480,000 or an average of 32 transactions sides.   Some markets are dominated by 10% of these successful agents selling 90% of the market.   If that were the case, 130,000 agents are selling 9,720,000 or an average of 75 transactions sides. The question you should ask yourself is...