Hope Leitner, Realtor®, CRS

Most people who have car, home and health insurance have probably made claims and wouldn't consider being without it.   However, it might be difficult to find a homeowner who has made a claim on their title insurance which could lead a person to think that it may not be necessary.   Title insurance covers the largest investment most people have and if there was a loss, it could be devastating.   Title insurance indemnifies the policy holder from financial loss sustained from defects in the title to the property.   The policy holder is determined by their interest in the property.   An owner's title policy protects the owner of the property from title issues that may arise other than the mortgages that are being placed on the property at the time of purchase.   The title of the property goes back in time to check that clear title (no unsatisfied liens or levies and poses no question to legal ownership) was passed from owner to owner up to the current seller. A mortgagee

Some people don't need a reason to buy a home, they just want it.   That can be enough justification by itself.   Other people need some solid logic before they're ready to make the commitment.   The following reasons might help you to make a decision. Pride of ownership ... among the most popular reasons given by homebuyers is that they want a place they can call their own and decorate and improve it the way they want.   It is a place to feel safe and secure and a place for their family.   They can share it with their friends and enjoy living in it. Good investment ... Homeowners have a 80 times greater net worth than renters.   By investing in a home that appreciates over time, it contributes to an increasing equity.   The high loan to value mortgages that are available combined with the low mortgage rates also contribute to the investment through leverage which has been described as "using other people's money" to control an investment. Inte

Homeownership Rate Remains on the Rise In the third quarter of 2019, the U.S. homeownership rate rose again, signaling another strong indicator of the current housing market. The U.S. Census Bureau announced , “The homeownership rate of 64.8 percent was not statistically different from the rate in the third quarter 2018 (64.4 percent), but was 0.7 percentage points higher than the rate in the second quarter 2019 (64.1 percent).” Today there is still a lack of inventory , particularly at the entry and middle-level segments of the market, but that is not stopping buyers from making every effort to pursue homeownership. The many financial and non-financial benefits continue to drive the American Dream and will likely do so for generations to come. Bottom Line If you’re thinking of buying a home, let’s get together to make your dream a reality.

75 Years of VA Home Loan Benefits Today, on Veterans Day, we salute those who have served our country in war or peace, and we thank them for their sacrifice. This year marks the 75 th anniversary of VA Home Loan Benefit offerings through the Servicemen’s Readjustment Act , also known as the GI Bill . Since 1944, this law has created opportunities for those who have served our country, ranging from vocational training to home loans. Facts About VA Home Loans: Nearly 24 million home loans have been guaranteed by the Veterans Administration. Nearly 82% of VA home loans are made with no down payment . The VA also provides grants to help seriously disabled Veterans purchase, modify, or construct a home to meet their needs. Last year the VA provided 2,000 grants totaling $104 million. Benefits of a VA Home Loan: No down payment No Private Mortgage Insurance* Lower credit score requirements Limitation on closing costs Lower average interest rates * Mo

Before looking for a home, you need to know how much you can afford. While you may have a number in your head, the lender has the final say. Securing a pre-approval from a lender helps make the home buying process easier and helps to avoid delays. Many buyers confuse the terms pre-qualification and pre-approval. They mean two different things. In simple terms, a pre-qualification is an estimate of what you can afford. A pre-approval is a conditional approval based on the proof you provide. The pre-qualification is a preliminary step some borrowers take to get a feel for what price home they can afford. Based on your income, assets, and estimated credit score, lenders can estimate what you can afford. It's important to know, there's nothing binding about a pre-qualification. It's simply a starting point.    When you are serious about buying a home, though, you want a pre-approval. Before you shop for a home, meet with a recommended lender to get a pre-approval

Forget the Price of the Home. The Cost is What Matters. Home buying activity (demand) is up, and the number of available listings (supply) is down. When demand outpaces supply, prices appreciate. That’s why firms are beginning to increase their projections for home price appreciation going forward. As an example, CoreLogic increased their 12-month projection for home values from 4.5% to 5.6% over the last few months. The reacceleration of home values will cause some to again voice concerns about affordability. Just last week, however, First American came out with a data analysis that explains how price is not the only market factor that impacts affordability. They studied prices, mortgage rates, and wages from January through August of this year. Here are their findings: Home Prices “In January 2019, a family with the median household income in the U.S. could afford to buy a $373,900 house. By August, that home had appreciated to $395,000, an increase

Millennials: Here’s Why the Process is Well Worth It. Millennials have waited longer than any other generation to become homeowners, but the wait for this cohort is just about over. According to National Mortgage News ,   “Millennials, those young adults now aged 23 to 38, are now entering their peak household formation and homebuying years. ” If you’re a Millennial, you’re already well aware that you’re among a generation of those who favor fast-paced, real-time answers – and results . When you’re ready to make a decision, it’s go-time, and you probably want the latest technology at your fingertips to make it happen. National Mortgage News agrees, stating, “Millennials are different than previous generations—not only in their delayed homebuying but also in how they approach interactions with financial institutions, including mortgage lenders. Taking a picture of a check on their phone and depositing it without visiting a branch is not novel, it’s the

The #1 Reason to List Your House in the Winter Many sellers believe spring is the best time to put their homes on the market because buyer demand traditionally increases at that time of year. What they don’t realize is if every homeowner believes the same thing, then that’s when they’ll have the most competition. So, what’s the #1 reason to list your house in the winter? Less competition. Housing supply traditionally shrinks at this time of year, so the choices buyers have will be limited. The chart below was created using the  months supply  of listings from the  National Association of Realtors. As you can see, the  ‘sweet spot’  to list your house for the most exposure naturally occurs in the late fall and winter months (November – January).   Temperatures aren’t the only thing that heats up in the spring –  so do listings! In 2018, listings increased from December to May. Don’t wait for these listings and the competition that comes with them to come to the market before

Planning on Buying a Home? Be Sure You Know Your Options. When you’re ready to buy, you’ll need to determine if you prefer the charm of an existing home or the look and feel of a newer build. With limited  existing home inventory  available today, especially in the starter and middle-level markets, many buyers are considering a new home that’s recently been constructed, or they’re building the home of their dreams. According to Robert Dietz,  Chief Economist  at the  National Association of Home Builders  (NAHB) , “The second half of 2019 has seen steady gains in single-family construction, and this is mirrored by the gradual uptick in builder sentiment over the past few months.” This is great news for homebuyers because it means there is additional  inventory  coming to the market, giving buyers more choices. The most recent data from NAHB shows, “The inventory of new homes for sale was 321,000 in September, representing a 5.5 months' supply. The median sales price

Maybe you're not ready to move into it but that doesn't mean that you shouldn't take advantage of the present opportunities to acquire the home you want to live in during retirement. The combination of the low mortgage rates, high rental rates, positive cash flows and tax advantages can help you get it paid for by the time you're ready to move into it. Your tenant could literally buy your retirement home for you.  One idea would be to finance it with a 15-year loan that will have a lower rate than a 30-year loan and it will obviously be paid for in half the time. With every monthly rental check from your tenant, you make the payment on the mortgage which includes a portion that reduces debt and builds equity. Even if you don't have the home paid for by the time you retire, your equity will be larger.  Consider you sell your current home which could be paid for by then  when you are ready to move into this retirement home .  Taxpayers can exclude up to $500,000 o