Financial

Highland Shores, Highland Village, TX | Moving Up to Your Dream Home? Don’t Wait!

Moving Up to Your Dream Home? Don’t Wait!

Moving Up to Your Dream Home? Don’t Wait! | Simplifying The Market

Mortgage rates are just one important aspect of buying a home. The interest rates are an important component when considering the purchase of a home if you are going to finance it.  They can affect buyers buying power. The majority of people finance and that means interest rates, so if interest rates increase… your buying power decreases. Now is the time to move up since you are considering a move.

At a local level in Highland Village,TX, buyer confidence remains strong with beautiful homes in a lakeside setting.     

Particularly in and around Highland Shores 75077 zip code. The addition of new stores and business entities in the area makes Highland Village one of the greatest areas of Highland Shores, Highland Village, TX.         

Today we would like to talk to you about  Moving Up to Your Dream Home? Don’t Wait!

Mortgage interest rates have risen by more than half of a point since the beginning of the year, and many assume that if mortgage rates rise, home values will fall. History, however, has shown this not to be true.

Where are home values today compared to the beginning of the year?

While rates have been rising, so have home values. Here are the most recent monthly price increases reported in the Home Price Insights Report from CoreLogic:

  • January: Prices were up 0.5% over the month before.
  • February: Prices were up 1% over the month before.
  • March: Prices were up 1.4% over the month before.

Not only did prices continue to appreciate, the level of appreciation accelerated over the first quarter. CoreLogic believes that home prices will increase by 5.2% over the next twelve months.

How can prices rise while mortgage rates increase?

Freddie Mac explained in a recent Insight Report:

“In the current housing market, the driving force behind the increase in prices is a low supply of both new and existing homes combined with historically low rates. As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”

Bottom Line

If you are thinking about moving up to your dream home, waiting until later this year and hoping for prices to fall may not be a good strategy.

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How to Get the Most Money from the Sale of Your House

How to Get the Most Money from the Sale of Your House | Simplifying The Market

Every homeowner wants to make sure they maximize the financial reward when selling their home. But, how do you guarantee that you receive maximum value for your house? Here are two keys to insuring you get the highest price possible.

1. Price it a LITTLE LOW

This may seem counterintuitive. However, let’s look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In actually, this just dramatically lessens the demand for your house. (see chart)

Impact of Price on Visibility | Keeping Current Matters

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so demand for the home is maximized. In that way, the seller will not be fighting with a buyer over the price but instead will have multiple buyers fighting with each other over the house.

In a recent article on realtor.com, they gave this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

2. Use a Real Estate Professional

This too may seem counterintuitive. The seller may think they would net more money if they didn’t have to pay a real estate commission. Yet, studies have shown that typically homes sell for more money when handled by a real estate professional.

Recent research posted by the Economists’ Outlook Blog revealed:

“The median selling price for all FSBO homes was $210,000 last year. When the buyer knew the seller in FSBO sales, the number sinks to the median selling price of $151,900. However, homes that were sold with the assistance of an agent had a median selling price of $249,000 – nearly $40,000 more for the typical home sale.”

Median Selling Price FSBO vs Agent | Keeping Current Matters

Bottom Line

Price it at or slightly below the current market value and hire a professional. That will guarantee you maximize the price you get for your house.

Where Are Mortgage Rates Headed? This Winter? Next Year?

Where Are Mortgage Rates Headed? This Winter? Next Year? | Simplifying The Market

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to look at where rates are headed when deciding to buy now or wait until next year.

Below is a chart created using Freddie Mac’s October 2015 U.S. Economic & Housing Marketing Outlook. As you can see interest rates are projected to increase steadily over the course of the next 12 months.

Where Are Mortgage Rates Headed? This Winter? Next Year? | Simplifying The Market

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

According to CoreLogic’s latest Home Price Index, national home prices have appreciated 6.4% from this time last year and are predicted to be 4.7% higher next year.

If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

Bottom Line

Even a small increase in interest rate can impact your family’s wealth. Let’s meet to evaluate your ability to purchase your dream home.

KNOW BEFORE YOU OWE…new rule, new mortgage disclosures

New Forms & New Rules

Photo from the Consumer Protection Bureau website

The article by the consumer financial protection bureau helps to explain the recent changes in  the Know Before You Owe mortgage disclosure rule which became effective Oct 3rd, 2015. The required disclosures for getting most mortgages have been redesigned to help you shop around to compare offers and find the loan that’s the best for you. The consumer financial protection bureau will also require lenders to give you more time to review the terms of your mortgage before accepting them, so that you can ask questions of your lender or seek advice from lawyer.

You will now have three business days to review your Closing Disclosure before you close, for most kinds of mortgages. This new rule is a part of the Bureau-wide “Know Before You Owe” mortgage initiative. They have been working to make the costs and risks of financial products and services clearer, in order for the consumer to make better, more informed decisions. Most buyers  felt there wasn’t enough time to review their documents before they were closing, so this new rule gives the buyer time to review the documents and better understand them before signing off on the mortgage loan. There are some things, that if changed about the loan, must be given an additional three day review period. Minor, ordinary changes do not require an additional three-day review period.

You may have been familiar with the terms Good Faith Estimate (GFE) and HUD-1 Statement in the past. These are now being replaced with a more understandable form called the Loan Estimate (LE) and the Closing Disclosure (CD)

Click here for the Loan Estimate (LE) Explainer TOOL

This tool above, will walk you through the loan estimate form so you can understand it thoroughly. It should reflect a particular loan you discussed with your lender. Check to see that everything matches your expectations. If something looks different from what you expected, ask why.

Closing Disclosure (CD) Explainer TOOL

A Closing Disclosure, must be provided to you from your Lender three business days before your scheduled closing. Make sure you use these three days wisely. You need to double check and make sure all the details are correct. If something seems off, you need to ask your lender. You want to resolve any concerns as soon as possible especially if something looks different than what you expected-it needs to be resolved immediately.

The video below from Dawn Moore will help to explain further questions you may have. Remember if you have questions you can ask your lender or title company too.

When should you have the Closing Disclosure (CD)?

threedayclosingdisclosurerule

We hope to provide you with things of great value so you can make educated decisions!

Photo & links from the official website of the United States Government-Consumer Financial Protection Bureau (CFPB).

#1 Reason to List Your House Today

#1 Reason to List Your House Today | Simplifying The Market

If you are debating listing your house for sale this year or even early next year, here is the #1 reason not to wait!

Buyer Demand Continues to Outpace the Supply of Homes For Sale

According to the National Association of REALTORS’ (NAR) Foot Traffic report, there are more buyers out in the market right now than at any other time in the past three years.

The graph below shows the significant increase in foot traffic experienced this year compared to 2014.

Foot Traffic Year-Over-Year | Simplifying The Market

The latest Existing Home Sales report shows that there is currently a 5.2-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market and well below August 2014 numbers.

The chart below details the year-over-year inventory shortages experienced so far in 2015:

Inventory Supply | Simplifying The Market

Bottom Line

Let’s get together to discuss the inventory levels in your neighborhood and discuss a plan to help you gain access to the buyers who are ready, willing and able to buy today!