Refinancing to Pay for Renovations? Consider the VA’s Energy Efficient Mortgage Program

June 8, 2016 by

Refinancing to Pay for Renovations? Consider the VA's Energy Efficient Mortgage ProgramMaking renovations that are energy efficient is not just a great way to reduce energy output, but it’s also an effective way of decreasing monthly utility costs. It serves as a one-time investment that will save money in the long run.

However, renovations are costly and not everybody has the extra finances required to make energy efficient changes. This is where the VA’s energy efficient mortgage (or EEM) program comes into play.

The program is designed to allow veterans to apply for a new mortgage or refinance an existing one with extra funds to renovate the home to be up to energy efficient standards.

The Three Tiers Under The VA’s Energy Efficient Mortgage Program

The VA has three tiers for the cost of renovations to be done under the EEM program. The lowest, and easiest to be accepted for, is for improvements that will total under $3,000. A list of costs or a contractor’s quote may be required in the application process.

The second tier is for renovations that will cost between $3,001 and $6,000. This will require the homeowner or homebuyer to get a Home Energy Rating System report to detail how efficient a home is currently and what can be done to decrease its HERS rating.

The final tier is for any improvements to the home that will cost over $6,000. This is the most difficult tier to receive acceptance for as both the Department of Veterans Affairs and the private lender will need to approve the renovations.

Types Of Improvements Under The EEM Program

The program covers a variety of renovations for the home. These include: new insulation to walls, floors and ceilings, solar powered heating and cooling systems, thermal doors, thermal windows and new caulking and weather stripping.

There are also items that will not be covered by the program, including new roofing, vinyl siding and air conditioning units.

Using The EEM Program To Receive A Larger Loan

Any veteran or currently active military member looking to buy a brand new home can still benefit greatly from the energy efficient mortgage program. If a new home undergoes a HERS report and passes as being energy efficient, this can be applied to a VA mortgage to receive as much as $6,000 extra on the loan.

Speak with your local mortgage professional to go into more detail on the intricacies of refinancing under the EEM program and whether or not your home will qualify. 

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How Technology Is Creating an Easier Mortgage Approval Process

June 7, 2016 by

How Technology Is Creating an Easier Mortgage Approval ProcessFrom saving up for a down payment to sussing out the ideal lender, there are so many things involved in purchasing a home that can make it seem like a rather complicated undertaking. However, like a lot of things in our lives, technology has streamlined the process in recent years. If you’re currently searching for a home on the market, here are some new technological advancements that may make buying a little easier for you.

The Smart Phone Advantage

The paperwork and requirements associated with a mortgage may not have changed much in recent years, but smart phones have provided us with the instant ability to see all the necessary documents from anywhere. While there was once a time it required a lot of time in front of a computer, smart phones have enabled people to fill in, review and reply to documents on the go, which makes for a much more efficient – and mobile – process.

The Implementation Of The E-Signature

It may seem like something that has been around for a while, but up until recently an approving signature on a document had to be provided in person. With all the mortgage documents that are needed to get the ball rolling, this type of approval took up a lot of extra time. Nowadays, instead of having to rush out to sign a paper, our mobility and legal laws enable anyone applying for a mortgage to be able to provide an e-signature, which means there is no waiting around on the backend.

Consult Your Local App

Almost everything has an app these days, and the mortgage process is no different. While there is still a lot of paper and information required in order to get approved, the growing availability of mortgage apps enables you to instantly determine how much your monthly payments will be and what the real cost of your home is when it’s all added up. Instead of the guesswork, these apps can help you answer the question of whether or not a home is the right price.

The mobility and ubiquitous nature of today’s technology has made a lot of things much easier, and the mortgage process is no exception. From apps that can better manage your mortgage to the use of e-signatures, there’s no reason getting a mortgage loan has to be rife with stress. If you’re looking into buying a home, you may want to contact one of our mortgage professionals for more information.

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What’s Ahead For Mortgage Rates This Week – June 6, 2016

June 6, 2016 by

What's Ahead For Mortgage Rates This Week - June 6, 2016Last week’s housing related news was limited to Construction Spending and Freddie Mac’s mortgage rates survey, but labor reports suggested an economic slowdown may be in the works.

Construction Spending Slips in April, Mortgage Rates Mixed

According to the Commerce Department, overall construction spending slipped in April to -1.80 percent as compared to March’s reading of +1.50 percent and May’s expected reading of +0.70 percent. Residential construction spending was 1.50 percent lower, which doesn’t help ongoing shortages of available single-family homes. Builders have repeatedly cited labor shortages and lack of developed lots as obstacles to building more homes. Year-over-year construction spending was 4.50 percent higher.

Freddie Mac reported higher rates for fixed-rate mortgages while the average rate for a 5/1 adjustable rate mortgage was one basis point lower at 1.87 percent. Rates for a 30 year fixed rate mortgage averaged two basis points higher at 3.66 percent; rates for a 15-year fixed rate mortgages were three basis points higher at 2.92 percent. Average discount points were unchanged for all loan types at 0.50 percent.

Labor Reports Indicate Slowing Jobs Market And Economy

According to the Non-farm Payrolls report for May, U.S. jobs increased at their lowest rate in five years with 38,000 new private and public sector jobs added. Temporary hiring also hit its lowest reading in seven years, which was seen as a negative as temporary jobs often transition to permanent positions.

Analysts said that May’s extremely low reading for jobs created indicates that a revision is likely. This inconsistency was supported by the national unemployment rate of 4.70 percent, but the lower jobless rate was attributed to workers leaving the labor force.

ADP’s May reading for private sector jobs rose to 173,000 jobs against expectations of 165,000 jobs and April’s reading of 268,000. This reading was further evidence that the Non-farm Payrolls report was likely inaccurate.

Last week’s new jobless claims fell to a five-week low of 267,000 as compared to expectations of 279,000 new claims and the prior week’s reading of 268,000 new claims.

What’s Ahead This Week

Economic news scheduled for this week include a speech by Federal Reserve Chair Janet Yellen on Monday; this speech could foreshadow the Fed’s decision to raise or not raise the Fed’s target federal funds rate during its FOMC meeting later this month.

Readings on job openings and consumer sentiment will be released along with weekly reports on mortgage rates and new jobless claims.

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4 Financial Benefits of Home Ownership

June 3, 2016 by

4 Financial Benefits of Home OwnershipHome ownership may be one of the most familiar goals of adulthood, but there’s more than one reason why so many people flock towards this type of investment and leave the rental market behind. If you’re trying to decide if you should make the big plunge towards buying, here are some benefits of saving up for a down payment and finding the right place to settle in.

It’s More Economical

Many people eschew home ownership simply because it can be hard to wrangle together the funds for a down payment. However, while a monthly rental is money you’ll never see again, the money you put down on a mortgage is being invested back into your home, making for a solid investment you can capitalize on later.

Instant Tax Deductions

The interest that you pay on your mortgage payment can be one of the most tumultuous aspects of purchasing a home, but you may not know that you actually have the ability to deduct many associated costs on your taxes. From origination fees to property taxes, there are plenty of costs that go along with your home that can be claimed for a refund when tax time comes!

Paying A Lower Price

The real estate market fluctuates every day, but one thing is for the certain: the median price of a home is on the rise. While low inflation rates may not be ideal if you’re selling, they can mean a better deal if you’re delving into the market for the first time. Just remember, it’s important to buy a home you can afford as anything that goes beyond your budget is not a solid investment.

A Built-In Savings Account

It may be important to have liquid assets outside of the equity you have in your home, but many people struggle to pay off their home and save money at the same time. While saving outside of your monthly mortgage payment is still important, putting money down on a home is an act of investing, and it’s one you’ll likely make a solid profit on when you decide to sell.

There can be many financial benefits to renting in the short term, but purchasing a home is a more solid financial decision when it comes right down to it. If you’re considering a home and would like to know more about your options, you may want to contact one of our mortgage professionals for more information.

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Case-Shiller: Home Price Growth Expands to All Metro Areas

June 2, 2016 by

Case-Shiller: Home Price Growth Expands to All Metro AreasMarch home prices were again dominated by the Northwest with Portland, Oregon posting a year-over-year gain of 12.30 percent followed by Seattle, Washington’s year-over-year gain of 10.80 percent.

Denver, Colorado rounded out the top three cities with a year-over-year gain of 10.00 percent. San Francisco, California, which consistently posted double-digit gains in recent months slipped to a year-over-year gain of 8.50 percent. This may indicate that prices in high cost metro areas are nearing their peak.

S&P Dow Jones Chair David M Blitzer attributed outsized price gains to the shortest supply of available homes since the mid-1980s. Homes for sale account for only two percent of U.S. households. To put rapidly increasing home prices in context, the S&P Case-Shiller 20-City Home Price Index was 11.50 percent below its peak in March, 2006.

Case-Shiller’s 20-City Home Price Index posted a 5.40 percent gain year over year, which was equal to its year-over-year price gain in March 2015. Month-to month home prices gained 0.90 percent; analysts had estimated year-year growth of 5.10 percent and a month-to-month gain of 0.70 percent. All cities in the 20-City Housing Market Index posted gains in month-to-month and year-over-year readings.

Pending Home Sales Exceed Expectations

Pending home sales in April supported trends noted in Case-Shiller’s 20-City Home Price Index. Regional results for pending home sales in April rose by 1.20 percent in the Northeast while pending sales were unchanged in the Midwest. The South posted pending sales gain of 6.80 percent and the West recovered with an 11.40 percent rise in pending sales for April.

Based on April’s pending home sales readings, real estate pros expect a jump in closed sales in May. Home buyer demand remains resilient according to Lawrence Yun, chief economist for the National Association of Realtors. Mr. Yun also said that the key to continued expansion of home sales is providing buyers sufficient supplies of affordable homes. Builders may provide relief by increasing construction, but have cited shortages of labor and developed land as constraints on new construction. Active demand for high-end homes has also focused construction on higher priced homes.

Mortgage applications are also increasing, which indicates that more homes are being purchased by owner-occupant buyers than investors. Relatively low mortgage rates and waning investor interest could provide buyers relying on financing a leg-up in competing for available homes. 

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3 Ways to Add Emotional Cues to Make Buyers Feel at Home for a Quicker Sale

June 1, 2016 by

3 Ways to Add Emotional Cues to Make Buyers Feel at Home for a Quicker SaleThere are a lot of ways you can effectively stage your home to snag the attention of potential buyers, but there are often a few extra things you can do to really engage the senses of your guests. If you’re hoping for an instant offer and are pulling out all the stops to sell your home, here are some ways you can emotionally engage with visitors to your home.

Carefully Choose Your Color Scheme

You probably already have a fairly distinct color palette in your home, from the couch you’ve purchased to the tone of your paint, but that doesn’t mean you can’t spice it up with a few carefully chosen pieces. Neutrals like white, brown and grey are a great place to start, but instead of letting the room speak for itself, add a punch of color – like bright pillows or a bold throw – that will add instant appeal and make your home a little more memorable. Just remember that it’s important to use colors and patterns that aren’t too bright, as these can overwhelm your space.

Remove Your Most Personal Items

Many homeowners think it’s a great idea to have a lot of personal items around to draw people into their house, but too many items like this can actually distract your guests and may even make them feel uncomfortable. Before organizing your open house, ensure that you remove excess personal items like fridge photographs and frayed posters. Instead, stick with items like artwork or coffee table books which will still exude personality but won’t make potential buyers feel like they’re intruding.

Consider The Sense Of Smell

The senses are often drastically under-appreciated when it comes to staging your home, but they can actually go a long way in getting a lot more interest. Because smell can provide other positive cues that merely looking cannot, baking some cookies or muffins beforehand can be a powerful means of providing a great first impression and making visitors feels like they’re home. The addition of room spray or music may also mean potential homebuyers won’t mind lingering a little longer.

Successfully staging a home can be a matter of common sense, but engaging a buyer’s emotions can go a long way towards making an even better impression. Contact your mortgage professional for more information.

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What’s Ahead For Mortgage Rates This Week – May 31, 2016

May 31, 2016 by

What's Ahead For Mortgage Rates This Week - May 31, 2016Last week’s economic reports included new home sales, pending home sales along with weekly mortgage rates and new jobless claims.

New Home Sales Surpass Expectations

Sales of new homes surpassed expectations and the prior month’s reading. April’s reading of 619,000 sales exceeded expectations of 523,000 new homes sold and 531,000 new homes sold in March.  New home sales rose by 16.60 percent on a seasonally adjusted annual basis, which was the highest increase in 24 years. 

Analysts said that April’s new home sales indicate that builders are increasing production of new homes to meet high demand for homes. Short inventories of available homes are credited with driving up demand and home prices. Buyers seeking family homes are contending with investor buyers and cash buyers in popular markets.

With affordability becoming limited in many cities, first time and moderate income homebuyers aren’t buying as many homes as they once did. This development contributes to slowing markets, as move-up buyers generally rely on first time buyers to purchase their homes. 

Shortages of available homes has pressured home builders to break ground on new home construction projects, but builders continue to cite labor shortages and a lack of buildable lots as reasons why they aren’t building homes as fast as homes are needed. 

Pending Home Sales Numbers Suggest Peak Buying Season Returns

Pending home sales were also higher than forecast in April with a reading of 5.10 percent as compared to expectations of 0.80 percent for April and the March reading of 1.60 percent. Pending home sales gauge future closings for home sales and reached their highest level in 10 years and posted a year-over-year gain of 4.60 percent. 

Three of four regional readings for pending home sales posted gains, with home sales in the Midwest posting slower growth. On a year-over-year basis, he South posted a gain of 6.80 percent and the Northeast posted a gain of 1.20 percent. The West saw a jump in pending sales with a reading of 11.40 percent after posting a negative reading in March. 

April’s expansion in new and pending sales suggests that the peak home buying season is back.

Mortgage Rates Rise; New Jobless Claims Fall

Freddie Mac reported higher average mortgage rates. The rate for a 30-year fixed rate mortgage was six basis points higher at 3.64 percent; the rate for a 15-year mortgage rose eight basis points to 2.89 percent. The average rate for a 5/1 adjustable rate mortgage rose seven points to 2.87 percent. Discount points averaged 0.50 percent for all mortgage types. 

New jobless claims dipped last week to 268,000 as compared to an expected reading of 275,000 new claims and the prior week’s reading of 278,000 new claims. Analysts said that New York school employees that were eligible for benefits boosted jobless claims earlier in May due to a non-typical law that allows some school workers to draw unemployment during school closures such as spring break or labor disputes.

What‘s Ahead This Week

This week’s scheduled economic news includes Case-Shiller Home Price Indices, construction spending and reports on inflation, core inflation and consumer sentiment. No reports were scheduled for Monday due to the Memorial Day holiday. 

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How Offering Buyer Incentives Will Get Your House Sold Faster

May 27, 2016 by

How Offering Buyer Incentives Will Get Your House Sold Faster

Why The Added Incentive?

It may seem like keeping your home in good condition and pricing it according to its market value is good enough, but in more difficult market times many people have opted for extras that may boost the appeal of their home. While the wrong incentive strategy can make it look like you have a home that is not worth the asking price, there are classy ways value can be added that can still engage the right buyer.

Determine Your Ideal Buyer

If you’ve already decided that your ideal offer is a perfectly fair deal, you’ll want to consider what kind of incentives will successfully attract the buyer you’re looking for. Instead of merely dreaming up something that will be ineffective, determine a profile for who they are whether it’s young or old, single or family oriented so that you can offer benefits that will be marketed to them. By using incentives that are linked to their interests and lifestyle, you may be able to pique their curiosity enough that they’ll make a visit.

A Few Incentives To Consider

There are a lot of great opportunities for snagging new interested parties with an incentive, the bonus being that you won’t need to offer it up until the time you sell your home. If you’re located close to a beach resort, you may want to give away a surfboard or kayak; providing a gift card for a local restaurant or a golf membership can also be a great idea. While most people will not want to go to the extreme of giving away their transportation, some have gifted their luxury car in order to seal the deal.

A home in good condition and at the right price can often snag a purchasing offer, but if your home is lingering on the market, incentives can go a long way too.

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4 Tips to Staging Your Home on a Budget

May 27, 2016 by

4 Tips to Staging Your Home on a BudgetMany people think that staging a home effectively is a matter of money, but there are easy ways to dress it up and make it shine that don’t come with a high cost. If you’re looking for some economical tips that will go a long way in making a positive impression, here are a few ways to get your home prepared.

Pack Away The Personal

There are certain unique features in any house that can have a positive impact on potential homebuyers, but personal items will actually make it harder for guests to imagine themselves in your home. For a cost-free save, ensure that you pack away personal mementos and pictures so that guests aren’t distracted by the details of your life.

Keep It Clutter Free

An untidy home will have an instantly negative impact on the perception of your visitors, so you may want to enlist the help of your entire family to clean it from top to bottom. Instead of keeping papers and magazines that have been sitting around for years, sift through any coffee table piles and bedroom corners and discard all the things that will catch the eye too easily.

Take Out The Toolbox

If you’ve been postponing a few minor fix-ups like a damaged shelf or a loose door, now is the time to head to the hardware store and get these jobs done. Potential homebuyers will be looking at every aspect of your home, and maintenance will figure heavily into how interested they are, so an inability to deal with the small details can cue them to a home they shouldn’t invest in.

Do A Deep Clean

Cleaning the house, especially a sizeable one, can be the bane of many a homeowner but there’s no other time that cleaning properly is more important than when you’re staging it. While a dirty, dusty house may mean your guests won’t pay attention to your home’s best features, a newly clean home will provide visitors with a blank canvas from which to draw their conclusions.

From major overhauls to unique decorations that draw the eye, there are many great ways to stage a home, but making the small fixes and doing a deep clean are easy to do and don’t require a lot of cash. If you’re preparing to put your home on the market, you may want to contact one of our local real estate professionals for more information.

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Did You Know?: 4 Ways That a Real Estate Attorney Can Make Your Home Purchase Easier

May 26, 2016 by

Did You Know?: 4 Ways That a Real Estate Attorney Can Make Your Home Purchase Easier It is common for home buyers to take steps to keep their out-of-pocket expenses to a minimum, and many will try to avoid paying for optional services for this reason. While you may not want to pay for all optional services, there are some that can be truly beneficial to you even if they are not required. After learning more about the services provided to you by a real estate attorney, you may be ready to seek out these professional legal services for your upcoming purchase.

Explaining the Contract

A real estate sales contract can be confusing to understand because parts of it use real estate or legal jargon. Your real estate attorney can review the contract for you to ensure that your rights are protected, and he or she can also help you to better understand your obligations and requirements under the contract.

Assisting With Title Research

A real estate attorney can also assist you with researching the title. Everything from liens and covenants to easements and more may impact your ownership of the property. The real estate attorney will provide you with more information to ensure that you have title to the property free and clear.

Helping You With the Mortgage Documents

A mortgage is a legally binding agreement. You will be contractually bound by the terms of the mortgage. From the monthly payment obligation to the ability of the lender to foreclose on the property if you do not follow through on the terms of the mortgage, there are many legal nuances to consider. The real estate attorney can review these documents on your behalf before you sign them.

Representing You at Closing

Your closing is both a financial and a legal process. This is where you will sign all of the mortgage, title and sales documents to finalize the purchase. Generally, after closing, you will own the property and will be contractually tied to the mortgage. While many documents will be available for your attorney to review before closing, there may be last minute changes or other documents available at closing that your attorney has not reviewed. Your attorney can represent your interests and answer your questions at the closing table.

You do not need a real estate attorney to assist you throughout the purchase process. However, you can see that there are many beneficial services provided to you by an attorney. Contact your trusted mortgage professional for more information.

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