The 2018 holiday season has officially begun! We hope you are as excited as we are. We’d like to take a moment to express our gratitude to all of you this Thanksgiving. We have met some truly wonderful people, and we’re proud to have helped so many reach their real estate goals over the years.
We wouldn’t be where we are today without all of your support.
Enjoy your Thanksgiving dinner with all of your family and friends— that’s what we plan to do!
In the meantime, please don’t hesitate to reach out to us if you have any real estate questions. We would be happy to help you. Happy Thanksgiving, Jan Leasure
This summer might be the last opportunity for you to take advantage of rising home prices and high demand. Here’s why.
Summer is here, which means the high season for real estate. If you've been thinking of selling your home, you might be in for a golden moment.
However, it might not last long. Let me explain why, with a few details of the current real estate market.
Right now, homes are selling in record time. This May, it took just 34 days on average for a home to go under contract, which broke last year's record of 36 days.
Home prices also continue to rise. In fact, they've been rising for six straight years. For the past two years, this growth has been accelerating. As a consequence, 27.6% of the homes sold in May sold above their list price.
All of this is due to a woefully short supply of homes on the market. In fact, the total supply of homes is 5.4% lower this year than it was at the same time last year.
However, the real estate market might be on the cusp of change. Mortgage rates have been rising, and now stand near their highest levels in seven years. As a result, pending home sales were down as of April. A recent Redfin survey also found a drop in customers touring homes for the first time in 27 months.
What's going on? The home price surge might be nearing its end. Overall, home affordability is dropping: Over the past 6 years, there has been a 48% increase in average home prices, while wages increased only 14%.
While some sellers are still managing to sell at higher prices than listed, nearly a quarter of sellers actually had to lower their prices this April.
If you do decide to sell right now, you would have an easy time of it, and you could get top dollar for your home. That's because demand and prices are both still high.
If you decide to wait, things might go south quickly. That’s because the market may be reaching the limits of price growth and may be stalled by higher mortgage rates.
If you want to take advantage of current conditions by buying or selling a home any time in the near future, don’t hesitate to reach out and give me a call or send me an email today. I look forward to hearing from you soon.
Home affordability is shrinking fast. Here’s what you should do to get ahead of the curve.
Home affordability is shrinking rapidly, according to research by Arch Mortgage Insurance. In the first quarter, affordability (defined as the size of the monthly mortgage payment needed to buy a home) dropped by 5%. This was mainly due to the increase in mortgage rates. As a consequence, more people are now stretched and taking on greater debt relative to their income. Other buyers are being pushed out of the market altogether.
That's not all. Affordability is expected to drop an additional 15% to 20% by the end of the year. That's because home prices continue to rise, and the Federal Reserve is expected to ratchet up its reference interest rate, which often leads mortgage rates, three more times this year.
What does this mean for you?
If you're looking to sell, you won't have a hard time finding a buyer. Even with decreasing affordability, demand for homes still far outstrips supply. That means that this spring and summer might see an additional rush on the real estate market. It also means that right now might be a very good time to list your home if you've been thinking about selling for a while.
There’s no need to panic if you’re a homebuyer.
On the other hand, if you are thinking of buying a home, you might think that this news spells doom for you. However, there's no need to panic. While affordability is dropping, it is still well above historic averages (just like current mortgage rates). In fact, Arch Mortgage Insurance estimates that homes are now 15% to 20% more affordable than they have been in the period from 1987 to 2004. When rates go up, it will affect what your monthly payments will be on a new home. From this perspective, it makes sense to move now in case you've been looking to buy before rates rise further.
So what's the next step? If you’re thinking about buying or selling a home, give us a call. We’d be happy to answer any questions you may have. We look forward to hearing from you soon.
When I’m working with one of my clients, one of the first pieces of advice I give—especially to first-time home buyers who have limited income and limited reserves in the bank—is to always negotiate a closing cost credit. A closing cost credit results in the seller paying your closing costs. They’re not giving you money at closing; instead, what they’re doing is building in the cost of your closing into the purchase of your home.
For example, let’s say you’re purchasing a home that costs $100,000. Borrows may step in and want to lowball the seller by offering $85,000 thinking that they’re going to get you a great deal. The problem is that closing costs in the state of Illinois total about $5,000. It doesn’t matter what the price of the home is—closing costs will always total $5,000.
"It’s always a good idea to negotiate a closing cost credit"
Why are closing costs uniform across the board? This is because they represent an accumulation of several different service fees calculated independently from the home’s price, such as the appraisal, the home inspection, the cost of homeowners insurance, etc. Your closing costs, then, can sometimes exceed your down payment. That’s why negotiating a closing cost credit is a good idea.
If you have any questions about closing costs, don’t hesitate to call me today or send me an email. I’m here to answer all of them.
If you'd like my free e-book of the Top 10 Credit Do's and Don'ts, you can contact me!
Fall is in full swing, and we are back again for another mortgage minute. Today we are talking about how to assemble your home buying team.
If you want your purchase to move along smoothly, it’s critical to gather a good team to back you up. You’re the buyer, yes, but you’re also the coach, so you need great people working around you.
It’s essential that every member works together and communicates with you, from choosing your property, going through the mortgage process, and celebrating at closing.
Your purchase team is made up of your real estate agent, a home inspector, your real estate attorney, your mortgage lender, and even the closer at the title company. Choosing the right agent is critical, because each brings with them special talents and skills to get the transaction done.
Take everything into consideration with your decision to choose an agent with whom you feel comfortable. We work with some of the best agents in the business, who are available at a moment’s notice to help you find the home of your dreams. We recommend checking out some of the websites of some of our top agents (listed in the video above) and get to know them before you decide on who to hire.
If you have any questions, or would like a recommendation from us, feel free to give us a call or send us an email. We look forward to hearing from you!
If you'd like my free e-book of the Top 10 Credit Do's and Don'ts, you can contact me!
Today, I want to discuss documenting your mortgage. If you don't, you may get in trouble with the mortgage police!
Tightening regulations are making the mortgage process more complicated than ever.Deadlines for signing your loan documents, ordering the appraisal, and getting the file into underwriting are now actually contained in the sales contract.
Guidelines now dictate that YOU are responsible for how smoothly the process will go. This makes it critical that you provide all required documentation to your lending team with plenty of time to spare. The fact of the matter is, the mortgage process is intrusive, as all of your financial information is needed in order to get approved for a loan.
Since the mortgage process isn't known as a fun one, it's crucial that you do all you can to make it go as smooth as possible.When we request every document that you've signed in the last 24 months, provide it with a smile! W-2s, tax returns, bank statements, and identification are only a handful of the documents we'll ask for!
The faster we can provide you, your agent, and your attorney with the coveted document we call a Clear to Close, the better! Give us a call if you have any questions about this process, we're always available to help!
If you'd like my free e-book of the Top 10 Credit Do's and Don'ts, you can contact me!
Today, we want to offer some quick tips on how to prepare for the home buying process.
If
you were planning to sell your home, would you list it without any
preparation? Probably not - you would clean, make repairs, and work to
make your home more appealing.Preparing to get a home mortgage is very similar: you begin by cleaning your financial house.
If
you're a first-time home buyer, you should consider the
pre-qualification at least 6-12 months prior to looking for your home.You
need to have your credit evaluated by a mortgage professional, as
online credit score companies use a different model than lenders. If you
go online and find that you have a score of 720, don't be shocked when a
bank runs your credit and it actually turns out to be 660.
When
applying for a mortgage loan, you will need to have some money in the
bank, as you'll need money for a down payment and closing costs. Money
is crucial in this process! We can't count cash toward your down
payment, and any gift must be sourced in detail. If you're purchasing
with a co-borrower, we need to qualify them.Additionally, if you're unsure of what you qualify for, we need to educate you and help you resolve collections.
If
we start in advance, we can guide you so that by the time you find a
home and fill out an application, all your problems have been resolved
in advance and your financial house is already in order.
If
you would like more information about the process, or if you're ready
to get started, give us a call or shoot us an email. We would love to
hear from you!
If you'd like my free e-book of the Top 10 Credit Do's and Don'ts, you can contact me!
Today we're going to be chatting about some restaurants in Libertyville.Considering that we save the average borrower anywhere from $70-$450, we think that you might want to spend that money atone of the eighty-seven restaurants located here in Libertyville.
Let's talk about some of our favorite spots.We love outdoor patios because we can take our office dog with us,and this is why we love Mickey Finn's. They make and serve their own microbrews, and have been doing so since 1994. Their blarney balls are an excellent appetizer, just don't eat too many! (http://mickeyfinnsbrewery.com/)
Another favorite of ours is Chili U.They serve a variety of gourmet chilis such as African Chicken Chili and Thai Shrimp Chili. They also have a great outdoor patio. (http://chili-u.com/)
Casa Bonita is just down the street and they have upscale Mexican cuisine with great margaritas to match.They have a wonderful patio that is heated, which allows year-round dining. (http://www.casabonitalibertyville.com/)
If you're looking for a place with great ambiance,then you must head to Firkin.They have a huge selection of craft beers and possibly the best burger in the entire state. (http://www.firkinrestaurantlibertyville.com/)
We can't talk about restaurants in Libertyville andnot talk about the Picnic Basket.It started out as a small deli and has morphed into a gourmet sandwich shop with great salads, soups, and vegetarian offerings. (http://www.picnicbasketfood.com/)
If you'd like my free e-book of the Top 10 Credit Do's and Don'ts, you can contact me!
Usually, I take technical aspects of the mortgage world and try to break them down into more understandable terms. Today, I want to do something a bit different. I want to introduce you to the team that helps ensure your loan goes through without a hitch!
Lisa is a credit analyst and is usually the first point of contact when beginning the lending process.
Jacque is our file opener, or as we like to call her, the mortgage detective. She'll be collecting all your financial documentation.
Amy is our senior processor and is responsible for packaging your loan as nicely as possible for underwriting and making sure all conditions are met so you can meet your required moving date!
I'm so glad you've had the opportunity to meet my team. We can't wait for you to come to the office and work with us personally!
Welcome back and happy New Year! It’s tax time and nobody looks forward to that. I have some exciting news, though. Did you know that if you itemize your taxes you are able to deduct up to $1 million of total mortgage interest?
You can also deduct $100,000 of equity mortgage interest. Make sure to check with your accountant or give me a call if you have any questions.
Also, if you know of anyone who is thinking of buying, be sure to send them my way!
Thanks for joining me today. One question I get asked frequently is: What does it take to buy a home? Obviously, there are a lot of important requirements before you can step into your dream home, but I've boiled it down to the three most important must-haves for buyers.
1) Credit. You've got to have a credit history. You start a credit history when opening a credit card, purchasing an item with a loan, or attending higher education and taking out student loans. Whether that credit score is good or not depends on whether your payments have been timely. And a good credit score is needed and you need a credit score of at least 640.
2) Two year job history. A lender wants to know that you have a steady income and verify how much you will be making in ratio to your mortgage payments.
3) Money. Of course I'm stating the obvious, but you may not need as much as you think. With the FHA loan, you can put down as little as 3.5%. That is $3,500 for every $100,000 that you borrow.
If you have any questions about how to qualify for a home or what your credit score may be, please give me a call today and thanks for watching!
You’re probably sick of hearing about how great the market is and how you need to make your move now. Has anyone ever told you why you should make your move now? Interest rates and home prices are increasing, and with each increase, there is a decrease in your purchasing power.
Are you a first time homebuyer? Are you thinking of buying in the spring or summer? Now is the time to come and talk to us. We can help you with a strategy and make sure you’re approved. Find out more about how we can help you get ready to buy your first home!
Welcome back! For the past few videos I’ve been telling you everything you CAN’T do, but now I have a list of different things you can do to improve your credit.
• Join a credit program. It may have a slight cost, but these programs alert you when there are any unauthorized uses on your card. Stop any damage before it starts.
• Make your payments on time. One missed car or mortgage payment can terminate the loan process immediately.
• Use your credit normally. Continue to use your card and pay on time as normal, just don’t overcharge.
• Keep in contact with loan originator. If you receive a collection letter or anything that you think may affect your credit, notify your lender immediately.
If you have any questions about how to improve your credit, give me a call. Thanks for watching!
Welcome back to my video bog! Last time I talked about things to avoid when you are applying for a mortgage. Well, I have a few more tips for you!
The first is do not go out and make new purchases. Just last week I had a couple that was all set for their loan. Then they cosigned for a relative’s car purchase. Because of that new $425 monthly payment, they were no longer approved for their loan. So, please do not go out and purchase a car, furniture or cosign for anyone!
Secondly, do not consolidate your credit cards. Some people think if they close their cards and consolidate to one payment their credit will be better. In reality, though, when you close a credit card, you lose all your credit history.
Thirdly, do not max out or overcharge your credit accounts. These two things can damage your credit by as much as 100 points. Plus, it can take months to untangle.
If you have any more questions about applying for a mortgage, please give me call! Thank you for watching!
