How to Make a Winning Offer on a Home

best mortgage rates today Elk River, best mortgage rates today Monticello, mortgage broker Ramsey, mortgage broker Rogers, mortgage broker St. Michael, mortgage broker Zimmerman, mortgage broker Elk River, Veteran home loan Elk River, Veteran home loan Zimmerman, VA Home Loan Elk River

Today’s homebuyers are faced with a strong sellers’ market, which means there are a lot of active buyers competing for a relatively low number of available homes. As a result, it’s essential to understand how to make a confident and competitive offer on your dream home. Here are five tips for success in this critical stage of the home-buying process.

  1. Listen to Your Real Estate Advisor

An article from Freddie Mac gives direction on making an offer on a home. From the start, it emphasizes how trusted professionals can help you stay focused on the most important things, especially at times when this process can get emotional for buyers:

“Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.”

A real estate professional should be the expert guide you lean on for advice when you’re ready to make an offer.

  1. Understand Your Finances best mortgage rates today Elk River, best mortgage rates today Monticello, mortgage broker Ramsey, mortgage broker Rogers, mortgage broker St. Michael, mortgage broker Zimmerman, mortgage broker Elk River, Veteran home loan Elk River, Veteran home loan Zimmerman, VA Home Loan Elk River

Having a complete understanding of your budget and how much house you can afford is essential. The best way to know this is to get pre-approved for a loan early in the home-buying process. Only 44% of today’s prospective homebuyers are planning to apply for pre-approval, so be sure to take this step so you stand out from the crowd. Doing so make it clear to sellers you’re a serious and qualified buyer, and it can give you a competitive edge in a bidding war.

  1. Be Prepared to Move Quickly

According to the latest Realtors Confidence Index from the National Association of Realtors (NAR), the average property sold today receives 3.7 offers and is on the market for just 21 days. These are both results of today’s competitive market, showing how important it is to stay agile and alert in your search. As soon as you find the right home for your needs, be prepared to submit an offer as quickly as possible.

  1. Make a Fair Offer 

It’s only natural to want the best deal you can get on a home. However, Freddie Mac also warns that submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Don’t make an offer that will be tossed out as soon as it’s received. The expertise your agent brings to this part of the process will help you stay competitive:

“Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home, and recent home sale prices in the area.”

  1. Stay Flexible in Negotiations

best mortgage rates today Elk River, best mortgage rates today Monticello, mortgage broker Ramsey, mortgage broker Rogers, mortgage broker St. Michael, mortgage broker Zimmerman, mortgage broker Elk River, Veteran home loan Elk River, Veteran home loan Zimmerman, VA Home Loan Elk RiverAfter submitting an offer, the seller may accept it, reject it, or counter it with their own changes. In a competitive market, it’s important to stay nimble throughout the negotiation process. You can strengthen your position with an offer that includes flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). Freddie Mac explains that there are, however, certain contingencies you don’t want to forego:

Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is”, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”best mortgage rates today Elk River, best mortgage rates today Monticello, mortgage broker Ramsey, mortgage broker Rogers, mortgage broker St. Michael, mortgage broker Zimmerman, mortgage broker Elk River, Veteran home loan Elk River, Veteran home loan Zimmerman, VA Home Loan Elk River

Today’s competitive market makes it more important than ever to make a strong offer on a home. Let’s connect to make sure you rise to the top along the way.

For a hassle-free mortgage consultation or a second opinion, contact Jim Riley with United Family Mortgage today at 763-568-0973.

 

Millennials: Is It Time to Buy a Bigger Home?

Best Mortgage Rates Today Elk River, FHA 203k Lenders Elk River, FHA Streamline Loan Elk River, Home Loans With No Down Payment Elk River, Mortgage Broker Rogers, Mortgage Broker St. Michael, Mortgage Broker Zimmerman, Veteran Home Loan Elk River, Zero Down Mortgage Ramsey

In today’s housing market, all eyes are on millennials.  Not only are millennials the largest generation, but they’re also currently between 25 and 40 years old. These are often considered prime homebuying years when many people begin to form their own households and invest in real estate. If you’re like many millennials who are spending much more time at home these days, you may have a growing need for more space or upgraded features, making moving more desirable than ever.

For those millennials who already own a home, there’s a great opportunity to move up in 2021. Danielle Hale, Chief Economist at realtor.comexplains:

“Older millennials will be trade-up buyers with many having owned their first homes long enough to see substantial equity gains.”

Best Mortgage Rates Today Elk River, FHA 203k Lenders Elk River, FHA Streamline Loan Elk River, Home Loans With No Down Payment Elk River, Mortgage Broker Rogers, Mortgage Broker St. Michael, Mortgage Broker Zimmerman, Veteran Home Loan Elk River, Zero Down Mortgage RamseyEven if you bought a home sometime in the last few years, you may have more equity than you realize, and that’s a big factor to consider when you’re thinking about moving. According to the Homeowner Equity Insights Report from CoreLogic:

“In the third quarter of 2020, the average homeowner gained approximately $17,000 in equity during the past year. This marks the largest average equity gain since the first quarter of 2014.”

Growing equity can be the driver you’re looking for to fund your next move, especially if what you need in a home is changing right now. As equity builds over time, it can be put toward the down payment on your next home.

In addition to equity gains, today’s housing market affordability is powered by record-low mortgage rates, so moving at a time when you can get more for your money may be more realistic than you think.

Bottom Line

Best Mortgage Rates Today Elk River, FHA 203k Lenders Elk River, FHA Streamline Loan Elk River, Home Loans With No Down Payment Elk River, Mortgage Broker Rogers, Mortgage Broker St. Michael, Mortgage Broker Zimmerman, Veteran Home Loan Elk River, Zero Down Mortgage RamseyIf you’re a millennial thinking about moving this year, you’re not alone. Contact Aaron Redberg with United Family Mortgage in Elk River at 763-568-0973 for a hassle-free mortgage approval consultation.

*Re-posted by: https://www.keepingcurrentmatters.com/2021/02/16/millennials-is-it-time-to-buy-a-bigger-home/

Buy a Home Now or Later?

Best Mortgage Rates Today Elk River, FHA 203k Lenders Elk River, FHA Streamline Loan Elk River, Home Loans With No Down Payment Elk River, Mortgage Broker Rogers, Mortgage Broker St. Michael, Mortgage Broker Zimmerman, Veteran Home Loan Elk River, Zero Down Mortgage Ramsey

Historically low mortgage rates are a big motivator for homebuyers right now. In 2020 alone, rates hit new record-lows 16 times, and the trend continued into the early part of this year. Many hopeful homebuyers are now wondering if they should put their plans on hold and wait for the lowest rates imaginable. However, the reality is, acting sooner rather than later may be the actual win if you’re ready to buy a home.

According to Greg McBride, Chief Financial Analyst for Bankrate:

“As vaccines become more widely available and a return to normal starts to come into view, we’ll see mortgage rates bounce off the record lows.”

While only a slight increase in mortgage rates is projected for 2021, some experts believe they will start to rise. Over the past week, for example, the average mortgage rate ticked up slightly, reaching 2.79%. This is still incredibly low compared to the trends we’ve seen over time. According to Freddie Mac:

“Borrowers are smart to take advantage of these low rates now and will certainly benefit as a result.”

Best Mortgage Rates Today Elk River, FHA 203k Lenders Elk River, FHA Streamline Loan Elk River, Home Loans With No Down Payment Elk River, Mortgage Broker Rogers, Mortgage Broker St. Michael, Mortgage Broker Zimmerman, Veteran Home Loan Elk River, Zero Down Mortgage RamseyHere’s why.

As mortgage rates rise, the increase impacts the overall cost of purchasing a home. The higher the rate, the higher your monthly mortgage payment, especially as home prices rise too. Sam Khater, Chief Economist at Freddie Macsays:

“The forces behind the drop in rates have been shifting over the last few months and rates are poised to rise modestly this year. The combination of rising mortgage rates and increasing home prices will accelerate the decline in affordability and further squeeze potential homebuyers during the spring home sales season.”

What does this mean for buyers?

Right now, the inventory of houses for sale is also at a historic low, making it more challenging than normal to find a home to buy in many areas. As more buyers hit the market in the typically busy spring buying season, it may become even harder to find a home in the coming months. With this in mind, Len Keifer, Deputy Chief Economist for Freddie Macrecommends taking advantage of both low mortgage rates and the opportunity to buy:

“If you’ve found a home that fits your needs at a price you can afford, it might be better to act now rather than wait for future rate declines that may never come and a future that likely holds very tight inventory.”

Best Mortgage Rates Today Elk River, FHA 203k Lenders Elk River, FHA Streamline Loan Elk River, Home Loans With No Down Payment Elk River, Mortgage Broker Rogers, Mortgage Broker St. Michael, Mortgage Broker Zimmerman, Veteran Home Loan Elk River, Zero Down Mortgage RamseyBottom Line

While today’s low mortgage rates provide great opportunities for homebuyers, we may not see them stick around forever. If you’re ready to buy a home, it’s time for a hassle-free mortgage consultation, contact Aaron Redberg with United Family Mortgage in Elk River at 763-568-0973.  Take advantage of what today’s market has to offer.

 

*Re-posted by: https://www.keepingcurrentmatters.com/2021/01/19/should-i-wait-for-lower-mortgage-interest-rates/

 

Make the Dream of Homeownership a Reality This Year

Best Mortgage Rates Today Elk River, FHA 203k Lenders Elk River, FHA Streamline Loan Elk River, Home Loans With No Down Payment Elk River, Mortgage Broker Rogers, Mortgage Broker St. Michael, Mortgage Broker Zimmerman, Veteran Home Loan Elk River, Zero Down Mortgage Ramsey

In 1963, Martin Luther King, Jr. inspired a powerful movement with his famous “I Have a Dream” speech. Through his passion and determination, he sparked interest, ambition, and courage in his audience. Today, reflecting on his message encourages many of us to think about our own dreams, goals, beliefs, and aspirations. For many Americans, one of those common goals is owning a home: a piece of land, a roof over our heads, and a place where we can grow and flourish.

If you’re dreaming of buying a home this year, start by connecting with a local real estate professional to understand what goes into the process. With a trusted advisor at your side, you can then begin to answer the questions below to set yourself up for homebuying success.

1. How Can I Better Understand the Process, and How Much Can I Afford?

Best Mortgage Rates Today Elk River, FHA 203k Lenders Elk River, FHA Streamline Loan Elk River, Home Loans With No Down Payment Elk River, Mortgage Broker Rogers, Mortgage Broker St. Michael, Mortgage Broker Zimmerman, Veteran Home Loan Elk River, Zero Down Mortgage Ramsey

The process of buying a home is not one to enter into lightly. You need to decide on key things like how long you plan on living in an area, school districts you prefer, what kind of commute works for you, and how much you can afford to spend.

Keep in mind, before you start the process to purchase a home, you’ll also need to apply for a mortgage. Lenders will evaluate several factors connected to your financial track record, one of which is your credit history. They’ll want to see how well you’ve been able to minimize past debts, so make sure you’ve been paying your student loans, credit cards, and car loans on time. If your financial situation has changed recently, be sure to discuss that with your lender as well. Most agents have loan officers they trust and will provide referrals for you.  As a mortgage broker, United Family Mortgage also has access to down payment assistance programs.

According to ConsumerReports.org:

“Financial planners recommend limiting the amount you spend on housing to 25 percent of your monthly budget.”

Best Mortgage Rates Today Elk River, FHA 203k Lenders Elk River, FHA Streamline Loan Elk River, Home Loans With No Down Payment Elk River, Mortgage Broker Rogers, Mortgage Broker St. Michael, Mortgage Broker Zimmerman, Veteran Home Loan Elk River, Zero Down Mortgage Ramsey2. How Much Do I Need for a Down Payment?

In addition to knowing how much you can afford on a monthly mortgage payment, understanding how much you’ll need for a down payment is another critical step.  Thankfully, there are many different options and resources in the market to potentially reduce the amount you may think you need to put down.

If you’re concerned about saving for a down payment, start small and be consistent. A little bit each month goes a long way. Jumpstart your savings by automatically adding a portion of your monthly paycheck into a separate savings account or house fund. AmericaSaves.org says:

“Over time, these automatic deposits add up. For example, $50 a month accumulates to $600 a year and $3,000 after five years, plus interest that has compounded.”

Before you know it, you’ll have enough for a down payment if you’re disciplined and thoughtful about your process.

3. Saving Takes Time: Practice Living on a Budget

As tempting as it is to pass the extra time you may be spending at home these days with a little retail therapy, putting that extra money toward your down payment will help accelerate your path to homeownership. It’s the little things that count, so start trying to live on a slightly tighter budget if you aren’t doing so already. A budget will allow you to save more for your down payment and help you pay down other debts to improve your credit score.

survey of millennial spending shows, “68% reported that shelter in place orders helped them save for their down payment.” Danielle Hale, Chief Economist at realtor.com, also notes:

“If there is any silver lining to the current economic landscape, it’s that mortgage rates are hanging around record lows…Additionally, shelter-in-place orders helped many who were fortunate enough to keep their jobs save for a down payment — one of the largest hurdles of buying a home. The combination of low rates and the opportunity to save is enabling many millennials to move up their home buying timeline.”

While you don’t need to cut all of the extras out of your current lifestyle, making smarter choices and limiting your spending in areas where you can slim down will make a big difference.

If homeownership is your dream, get started today with a hassle-free mortgage pre-approval consultation.  Contact Aaron Redberg at 763-568-0973.

 

*Re-posted by:https://www.keepingcurrentmatters.com/2021/01/18/how-to-make-the-dream-of-homeownership-a-reality-this-year

 

Is Buying a Home Today a Good Financial Move?

0 down mortgage ramsey, 0 down mortgage ramsey mn, 0 down mortgage, 0 down mortgage Elk River, 0 down mortgage Elk River MN, apply for va home loan ramsey, apply for va home loan ramsey MN, apply for va home loan

There’s no doubt 2020 has been a challenging year. A global pandemic coupled with an economic recession has caused heartache for many. However, it has also prompted more Americans to reconsider the meaning of “home.” This quest for a place better equipped to fulfill our needs, along with record-low mortgage rates, has skyrocketed the demand for home purchases.

This increase in demand, on top of the severe shortage of homes for sale, has also caused more bidding wars and thus has home prices appreciating rather dramatically. Some, therefore, have become cautious about buying a home right now.

The truth of the matter is, even though homes have appreciated by a whopping 6.7% over the last twelve months, the cost to buy a home has actually dropped. This is largely due to mortgage rates falling by a full percentage point.

Let’s take a look at the monthly mortgage payment on a $300,000 house one year ago, and then compare it with the same home today, after it has appreciated by 6.7% to $320,100:

best mortgage rates today elk river, best mortgage rates today, best mortgage rates today ramsey, best mortgage rates today ramsey mn, down payment assistance elk river, down payment assistance, down payment assistance ramsey

Compared to this time last year, you’ll actually save $87 dollars a month by purchasing that home today, which equates to over one thousand dollars a year.

But isn’t the economy still in a recession?

mortgage broker elk river, mortgage broker, mortgage broker Monticello, mortgage broker ramsey, mortgage broker ramsey MN, mortgage broker Otsego, mortgage broker rogers, mortgage broker rogers MN, mortgage broker st. michael

Yes, it is. That, however, may make it the perfect time to buy your first home or move up to a larger one. Tom Gil, a Harvard trained negotiator and real estate investor, recently explained:

“When volatile assets are facing recessions, hard assets, such as gold and real estate, thrive. Historically speaking, residential real estate has done better compared to other markets during and after recessions.”

That thought is substantiated by the fact that homeowners have 40 times the net worth of renters. Odeta Kushi, Deputy Chief Economist for First American Financial Corporation, recently said:

“Despite the risk of volatility in the housing market, numerous studies have demonstrated that homeownership leads to greater wealth accumulation when compared with renting. Renters don’t capture the wealth generated by house price appreciation, nor do they benefit from the equity gains generated by monthly mortgage payments, which become a form of forced savings for homeowners.”

Bottom Line

With home prices still increasing and mortgage rates perhaps poised to begin rising as well, buying your first home, or moving up to a home that better fits your current needs, likely makes a ton of sense.

For a hassle-free consultation, contact Aaron Redberg with United Family Mortgage in Elk River at 763-568-0973.

The #1 Misconception in the Home Buying Process

0 down mortgage Monticello, best mortgage rates today Elk River, best mortgage rates today Monticello, FHA streamline loan Elk River, home loans with no down payment Elk River, mortgage broker Elk River, mortgage broker Monticello, mortgage broker Rogers, mortgage broker St. Michael, mortgage broker Zimmerman

After over a year of moderating home prices, it appears home value appreciation is about to re-accelerate. Skylar Olsen, Director of Economic Research at Zillow, explained in a recent article:

 “A year ago, a combination of a government shutdown, stock market slump and mortgage rate spike caused a long-anticipated inventory rise. That supposed boom turned out to be a short-lived mirage as buyers came back into the market and more than erased the inventory gains. As a natural reaction, the recent slowdown in home values looks like it’s set to reverse back.”

veteran home loan Elk River, zero down home loans Elk River, zero down mortgage Elk River, zero down mortgage Ramsey, 0 down mortgage Elk River, FHA 203k lenders Elk River, FHA 203k lenders Zimmerman, home construction loans Elk River, mortgage broker Big Lake, mortgage broker Otsego CoreLogic, in their January 2020 Market Pulse Report, agrees with Olsen, projecting home value appreciation in all fifty states this year. Here’s the breakdown:

  • 21 states appreciating 5% or more
  • 26 states appreciating between 3-5%
  • Only 3 states appreciating less than 3%

The Misconception

Many believe when real estate values are increasing, owning a home becomes less affordable. That misconception is not necessarily true. In most cases, homes are purchased with a mortgage. The current mortgage rate is a major component of the affordability equation. Mortgage rates have fallen by almost a full percentage point since this time last year. Another major piece of the equation is a buyer’s income. The median family income has risen by 5% over the last year, contributing to the affordability factor. Black Knight, in their latest Mortgage Monitor, addressed this exact issue:

“Despite the average home price increasing by nearly $13,000 from just over a year ago, the monthly mortgage payment required to buy that same home has actually dropped by 10% over that same span due to falling interest rates…Put another way, prospective home buyers can now purchase a $48K more expensive home than a year ago while still paying the same in principal and interest, a 16% increase in buying power.”

Bottom Line

VA home loan Zimmerman, veteran home loan Zimmerman, zero down home loans Zimmerman, zero down mortgage Zimmerman, apply for VA home loan Ramsey, down payment assistance Ramsey, FHA mortgage interest rates Ramsey, home construction loans Ramsey, home loans with no down payment Ramsey, mortgage broker Albertville If you’re thinking about purchasing a home, realize that homes are still affordable even though prices are increasing. As the Black Knight report concluded:

“Even with home price growth accelerating, today’s low-interest-rate environment has made home affordability the best it’s been since early 2018.”

For a Hassle-Free consultation with United Family Mortgage on: Home Refinancing, First-Time Home Buyer Mortgage, Zero-Down Mortgage, Home Construction Loan or VA Home Loan, contact DJ Riley today at 763-276-3960 or via email  djriley@unitedfamilymortgage.com.

mortgage broker Ramsey, mortgage broker Rogers, mortgage broker St. Michael, mortgage interest rates Ramsey, VA home loan Ramsey, zero down mortgage Ramsey, Fannie Mae home loans Ramsey, veteran home loan Ramsey, zero down home loans Ramsey, down payment assistance Ramsey

*Re-posted by: https://www.mykcm.com/2020/02/20/the-1-misconception-in-the-homebuying-process/

The Overlooked Financial Advantages of Homeownership

0 down mortgage Monticello, best mortgage rates today Elk River, best mortgage rates today Monticello, FHA streamline loan Elk River, home loans with no down payment Elk River, mortgage broker Elk River, mortgage broker Monticello, mortgage broker Rogers, mortgage broker St. Michael, mortgage broker Zimmerman
There are many clear financial benefits to owning a home: increasing equity, building net worth, growing appreciation, and more. If you’re a renter, it’s never too early to make a plan for how home ownership can propel you toward a stronger future. Here’s a dive into three often-overlooked financial benefits of home ownership and how preparing for them now can steer you in the direction of greater stability, savings, and predictability.

1. You Won’t Always Have a Monthly Housing Payment

According to a recent article by the National Association of Realtors (NAR):

“If you’ve been a lifelong renter, this may sound like a foreign concept, but believe it or not, one day you won’t have a monthly housing payment. Unlike renting, you will eventually pay off your mortgage and your monthly payments will be funding other (possibly more fun) things.”

VA home loan Zimmerman, veteran home loan Zimmerman, zero down home loans Zimmerman, zero down mortgage Zimmerman, apply for VA home loan Ramsey, down payment assistance Ramsey, FHA mortgage interest rates Ramsey, home construction loans Ramsey, home loans with no down payment Ramsey, mortgage broker AlbertvilleAs a homeowner, someday you can eliminate the monthly payment you make on your house. That’s a huge win and a big factor in how home ownership can drive stability and savings in your life. As soon as you buy a home, your monthly housing costs will begin to work for you as forced savings, coming in the form of equity. As you build equity and grow your net worth, you can continue to reinvest those savings into your future, maybe even by buying that next dream home. The possibilities are truly endless.

2. Home Ownership Is a Tax Break 

One thing people who have never owned a home don’t always think about are the tax advantages of home ownership. The same piece states:

“Both the interest and property tax portion of your mortgage is a tax deduction. As long as the balance of your mortgage is less than the total price of your home, the interest is 100% deductible on your tax return.”

Whether you’re living in your first home or your fifth, it’s a huge financial advantage to have some tax relief tied to the interest you pay each year. It’s one thing you definitely don’t get when you’re renting. Be sure to work with a tax professional to get the best possible benefits on your annual return.

veteran home loan Elk River, zero down home loans Elk River, zero down mortgage Elk River, zero down mortgage Ramsey, 0 down mortgage Elk River, FHA 203k lenders Elk River, FHA 203k lenders Zimmerman, home construction loans Elk River, mortgage broker Big Lake, mortgage broker Otsego 3. Monthly Housing Costs Are Predictable

A third item noted in the article is how monthly costs become more predictable with home ownership:

      “As a homeowner, your monthly costs are most likely based on a fixed-rate mortgage, which allows you to budget your finances over a long period of time, unlike the unpredictability of renting.”

With a mortgage, you can keep your monthly housing costs steady and predictable. Rental prices have been skyrocketing since 2012, and with today’s low mortgage rates, it’s a great time to get more for your money when purchasing a home. If you want to lock-in your monthly payment at a low rate and have a solid understanding of what you’re going to spend in your mortgage payment each month, buying a home may be your best bet.

Bottom Line

If you’re ready to start feeling the benefits of stability, savings, and predictability that come with owning a home, let’s get together to determine if buying a home sooner rather than later is right for you. mortgage broker Ramsey, mortgage broker Rogers, mortgage broker St. Michael, mortgage interest rates Ramsey, VA home loan Ramsey, zero down mortgage Ramsey, Fannie Mae home loans Ramsey, veteran home loan Ramsey, zero down home loans Ramsey, down payment assistance Ramsey

For a Hassle-Free consultation with United Family Mortgage on: Home Refinancing, First-Time Home Buyer Mortgage, Zero-Down Mortgage, Home Construction Loan or VA Home Loan, contact DJ Riley today at 763-276-3960 or via email djriley@unitedfamilymortgage.com.

 

*Re-posted by: https://www.mykcm.com/2020/02/17/the-overlooked-financial-advantages-of-homeownership/

#1 Answer to the Housing Shortage

best mortgage rates today Elk River, best mortgage rates today Monticello, best mortgage rates today Ramsey, best mortgage rates today Zimmerman, down payment assistance Elk River, down payment assistance Monticello, down payment assistance Ramsey, down payment assistance Zimmerman, zero down home loans Elk River, zero down home loans Ramsey, zero down home loans Zimmerman, zero down mortgage Elk River, zero down mortgage Ramsey, zero down mortgage Zimmerman

#1 Answer to the Housing Shortage: New Construction

The biggest challenge to today’s housing market is the shortage of housing inventory for sale. A normal market would see a six-month supply of homes for sale. Currently, that number is below four months. This is the major reason home prices have continued to appreciate at higher levels than historic averages.

The good news is that builders are now starting to build more homes in lower price ranges.

Builder Confidence is Up

The Housing Market Index from the National Association of Home Builders (NAHB) reveals that builder confidence increased last month. HousingWire quoted NAHB Chief Economist Robert Dietz about the reason for the increase in confidence amongst builders.

“The HMI measure of future sales conditions reached its highest level since June 2005, a sign of growing consumer confidence in the new home market. Especially as existing home inventory remains tight, we can expect increased demand for new construction moving forward.”

Builders are Meeting the Needs of Today’s Purchaser VA home loan Elk River, VA home loan Monticello, VA home loan Ramsey, VA home loan Zimmerman, veteran home loan Elk River, veteran home loan Ramsey, veteran home loan Zimmerman, home construction loans Elk River, home construction loans Monticello, home construction loans Ramsey, home construction loans Zimmerman

Builders are not only jumping into the market – they are doing a better job of matching current demand. The Wall Street Journal recently reported:

“In a shift, new households are overwhelmingly choosing to buy rather than rent. Some 854,000 new-owner households were formed during the first three months of the year, more than double the 365,000 new-renter households formed during the period, according to Census Bureau data.”

The WSJ article went on to say:

“Home builders are beginning to shift their focus away from luxury homes and toward homes at lower price points to cater to this burgeoning millennial clientele.”

The graph below compares 2016 to 2017 new construction sales by price point. As we can see, builders are slowly beginning to shift to prices more favorable to the first-time and non-luxury buyer.

mortgage broker Albertville, mortgage broker big lake, mortgage broker Elk River, mortgage broker Monticello, mortgage broker Otsego, mortgage broker Ramsey, mortgage broker rogers, mortgage broker St. Michael, mortgage broker Zimmerman, veteran home loan Elk River, veteran home loan Ramsey, veteran home loan Zimmerman

 

home loans with no down payment Elk River, home loans with no down payment Ramsey, home loans with no down payment Zimmerman, mortgage broker Albertville, mortgage broker Big Lake, mortgage broker Elk River, mortgage broker Monticello, mortgage broker Otsego, mortgage broker Ramsey, mortgage broker Rogers, mortgage broker St. Michael, mortgage broker Zimmerman

Bottom Line

There is a drastic need for a larger supply of home inventory to meet the skyrocketing demand. Builders are finally doing their part to help rectify this situation.

For a Hassle-Free consultation with United Family Mortgage on: Home Refinancing, First-Time Home Buyer Mortgage, Zero-Down Mortgage, Home Construction Loan or VA Home Loan, contact DJ Riley today at 763-276-3960 or via email djriley@unitedfamilymortgage.com.

 

*Re-posted by: https://www.mykcm.com/2017/05/18/1-answer-to-the-housing-shortage-new-construction/

Using your builder’s lender might not be the best for you

apply for va home loan elk river, apply for va home loan, 0 down mortgage ramsey, 0 down mortgage ramsey mn, 0 down mortgage, apply for va home loan ramsey, apply for va home loan ramsey mn, apply for va home loan, best mortgage rates today Monticello, best mortgage rates today Monticello mn, best mortgage rates today, best mortgage rates today ramsey, best mortgage rates today ramsey mn, best mortgage rates today Zimmerman, down payment assistance ramsey, down payment assistance ramsey mn, down payment assistance, fannie mae home loans ramsey, fannie mae home loans ramsey mn

home construction loans elk river, home construction loans Monticello, home construction loans ramsey, home construction loans ramsey mn, home construction loans, home construction loans Zimmerman, new construction mortgage elk river, new construction mortgage ramsey mn, new construction mortgage ramsey, new construction mortgage Zimmerman, new construction mortgage rogers, new construction mortgage, home loans with no down payment ramsey, home loans with no down payment ramsey mn, mortgage broker rogers, mortgage broker, va home loan ramsey, va home loan ramsey mn

What FICO® Score Do You Need to Qualify for a Mortgage?

apply for va home loan elk river, apply for va home loan, 0 down mortgage ramsey, 0 down mortgage ramsey mn, 0 down mortgage, apply for va home loan ramsey, apply for va home loan ramsey mn, apply for va home loan, best mortgage rates today Monticello, best mortgage rates today Monticello mn, best mortgage rates today, best mortgage rates today ramsey, best mortgage rates today ramsey mn, best mortgage rates today Zimmerman, down payment assistance ramsey, down payment assistance ramsey mn, down payment assistance, fannie mae home loans ramsey, fannie mae home loans ramsey mn

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 reached 706, according to FICO®, the developer of one of the most commonly used scores by lenders.”

This is great news, as it means Americans are improving their credit scores and building toward a stronger financial future, especially after the market tumbled during the previous decade. With today’s strong economy and increasing wages, many Americans have had the opportunity to improve their credit over the past few years, driving this national average up.

Since Americans with stronger credit are now entering the housing market, we are seeing an increase in the FICO® Score Distribution of Closed Loans (see graph below):

fannie mae home loans Zimmerman, fha 203k lenders ramsey, fha 203k lenders ramsey mn, fha approved lenders ramsey, fha approved lenders ramsey mn, fha approved lenders, fha loan application ramsey, fha loan application ramsey mn, fha loan application, fha mortgage interest rates ramsey, fha mortgage interest rates ramsey mn, fha mortgage interest rates, fha streamline loan ramsey, fha streamline loan ramsey mn, fha streamline loan, freddie mac mortgage rates today ramsey, freddie mac mortgage rates today ramsey mn, freddie mac mortgage rates today, freddie mac mortgage rates today Zimmerman

But hang on – don’t forget that this does not mean you need a FICO® score over 700 to qualify for a mortgage. Here’s what Experian, the global leader in consumer and business credit reporting, says:

FHA Loan: “FHA loans are ideal for those who have less-than-perfect credit and may not be able to qualify for a conventional mortgage loan. The size of your required down payment for an FHA loan depends on the state of your credit score: If your credit score is between 500 and 579, you must put 10% down. If your credit score is 580 or above, you can put as little as 3.5% down (but you can put down more if you want to).”

Conventional Loan: “It’s possible to get approved for a conforming conventional loan with a credit score as low as 620, although some lenders may look for a score of 660 or better.”

USDA Loan“While the USDA doesn’t have a set credit score requirementmost lenders offering USDA-guaranteed mortgages require a score of at least 640.”

VA Loan: “As with income levels, lenders set their own minimum credit requirements for VA loan borrowers. Lenders are likely to check credit scores as part of their screening process, and most will set a minimum score, or cutoff, that loan applicants must exceed to be considered.”

home construction loans elk river, home construction loans Monticello, home construction loans ramsey, home construction loans ramsey mn, home construction loans, home construction loans Zimmerman, new construction mortgage elk river, new construction mortgage ramsey mn, new construction mortgage ramsey, new construction mortgage Zimmerman, new construction mortgage rogers, new construction mortgage, home loans with no down payment ramsey, home loans with no down payment ramsey mn, mortgage broker rogers, mortgage broker, va home loan ramsey, va home loan ramsey mnRelated topics: 62% of Buyers Are Wrong About Down Payment Needs

Bottom Line

As you can see, plenty of loans are granted to buyers with a FICO® score that is lower than the national average. If you’d like to understand the next steps to take when determining your credit score, let’s get together so you can learn more.

For a Hassle-Free consultation on Home Refinancing, First-Time Home Buyer Mortgage, Zero-Down Mortgage, Home Construction Loan or VA Home Loan, contact DJ Riley today at 763-276-3960 or via email djriley@unitedfamilymortgage.com.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.