Navy Fellas Realty Group

Real Estate, Residential sales and purchase

The Pros and Cons of ‘Mortgage Before Marriage’ for Young Couples

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The Pros and Cons of There was a time when a higher percentage of people were married before they committed to buying a home together, but it’s a lot more common to co-habit and invest in a home together. If you’re considering the commitment of a mortgage without being married, here are some things to be aware of before you start searching the market.

Relationship Status Won’t Affect Your Rates

It might seem like there are greater risks involved if two individuals purchasing a property are not legally bound, but it actually makes no difference to the mortgage lender. If two people are buying a home together, the lender is going to be assessing their credibility based on their individual credit reports and financial history, not on their relationship to each other. While it may seem like co-habiting will have an impact, the proof as far as lenders are concerned is in the numbers.

What’s Your Credit History?

Most people are aware of their credit history, whether they’ve had financial hiccups in the past or are still paying off a significant amount of debt. However, it is more difficult for some to know the financial background of their partner, and this can be more common when it comes to co-habiting. Because the lender will be looking at both credit scores, if you or your partner have had financial issues in the past, it can have an adverse impact on your application. While you may have a nearly perfect credit history, if your partner does not this can make mortgage approval more difficult.

In The Event Of Separation

Home ownership can involve significant hurdles after a divorce, but there will still be some legal and financial issues to wade through if you’ve never been married. Since it’s likely that you won’t want to continue to co-habit, there’s the possibility that one party will have to buy the other out, which can be a sizeable financial burden. While this type of situation may never come to fruition, it’s important to be aware of what might occur so you can be prepared.

There can be a lot of complexities involved in co-habiting whether you’re married or not, but it’s important to have an awareness of your partner’s financial history and be prepared for financial hurdles.

Considering a Spring Home Sale? Learn How to Appraise Your Selling Chances Like a Pro

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Considering a Spring Home Sale? Learn How to Appraise Your Selling Chances Like a ProThe springtime is known to be one of the best times to put your home up for sale. However, if you’re not necessarily planning on engaging a real estate agent, it’s important to be prepared for all of the hard work involved in putting your home up for sale. Whether you’re new to the market or you’ve never sold a home on your own before, here are some questions to ask yourself so you’re prepared for selling in the coming season.

Do You Know The Market?

The neighborhood you live in and the buying market you’re dealing with are important factors in how your home is going to sell, so you’ll need to know a little about both when determining your ideal price. By looking through the listings in the area and seeing what homes like yours have sold for, you may be able to give yourself a range for the offers you can expect.

How Will You Sell It?

One of the added benefits of social media is that you can use sites like Facebook and Twitter to announce your home sale and even highlight its best features. While this may make selling seem much easier, you’ll still need to make sure you have good photography that captures your home and a website where homebuyers can learn more details. Be aware that while these items may seem easy enough, it can take a lot of time to manage these details on your own.

Are You Prepared To Negotiate?

It’s a good feeling to get an offer on your home, but in all likelihood it will be less than what you’re expecting and this means engaging in the art of negotiation. According to the National Association of Realtors, those who sell their home generally get 10-20% less than those who utilize an agent, so it’s important to be comfortable negotiating before you dive in. If you’re confident in your acumen, you may want to go it alone, but if you have doubts, it can be a better financial decision to engage the help of an agent.

Before you decide to sell your home on your own, it’s worth appraising your skills to determine if it will be worth the time and effort you’ll have to put in. If you’ve come to the conclusion that you’d like to utilize an agent after all, contact one of our real estate professionals for more information.

What’s Ahead For Mortgage Rates This Week – January 9, 2017

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2017 started with good news; fixed mortgage rates were lower, but the national unemployment rate ticked upward and labor reports showed fewer openings for public and private sector jobs. Construction spending was higher in November.

Mortgage Rates Lower; Construction Spending Higher

Freddie Mac reported lower average rates for fixed rate mortgages as the average rate for a 5/1 adjustable rate mortgage crept up. The average rate for a 30-year fixed rate mortgage dropped by 12 basis points to 4.20 percent; The average rate for a 15-year mortgage fell 11 basis points to 3.44 percent while the average rate for a 5/1 adjustable rate mortgage gained three basis points to 3.33 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

Construction spending was higher in November according to the Commerce Department and reached the highest level since April 2006. The November reading was 0.90 percent higher as compared to an expected reading of 0.60 percent and October’s original reading of 0.50 percent, which was revised to 0.60 percent. Lower mortgage rates coupled with more construction could help ease low inventories of available homes and provide relief to first-time and moderate-income home buyers who’ve been challenged by rapidly rising home prices and mortgage rates.

Fewer New Jobless Claims: Unemployment Rate Rises

The government’s Non-Farm Payrolls report for December showed lower job openings for government and private sector employers with a reading of 156,000 jobs added against the expected reading of 180,000 job openings and November’s reading of 204,000 job openings.

ADP reported similar results for its December reading on private sector jobs; 153,000 jobs were created against November’s reading of 215,000 jobs created. Analysts said that hiring is increasing, but not as fast as in prior months. On average, 174,000 private-sector jobs were created monthly in 2016 as compared to a monthly average of 209,000 private sector jobs created in 2015.

Weekly jobless claims were lower last week with 235,000 new claims filed; 260,000 new claims were expected based on 263,000 new claims filed the previous week.

December’s national unemployment rate rose to 4.70 percent from 4.60 percent in November. Analysts said that the uptick was likely fueled by employers deleting former workers from their payrolls at year-end.

What‘s Ahead

This week’s scheduled economic reports include readings on job openings, consumer sentiment and weekly readings on new jobless claims and mortgage rates.

4 Things You Absolutely Should Not Do After You Apply for a Mortgage

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4 Things You Absolutely Should Not Do After You Apply for a MortgageIf you have a good credit history and are prepared to invest in a home, you may be feeling pretty confident about the mortgage process. However, it’s important to be aware that there are things that can have a negative impact on your application. Whether you’ve just submitted your documents or are getting close to it, here are some things you may want to avoid.

Acquiring New Credit

It may seem silly that something as minor as a new credit card can be a mark against your credit, but applying for new ones can be a bad sign to lenders. The problem is that this can be signal an unmanageable debt load, so you may be considered a high risk for not being able to make your payments.

Forget To Pay Your Bills

It’s easy enough to get lulled into the feeling that your mortgage application will be approved, but this doesn’t mean that you should forget your financial responsibilities. If you’ve had poor credit in the past and neglected paying your bills on time, now is not the time to do this. Instead, ensure that you’re paying all bills and any applicable minimum payments in advance of the due date so your credit score is not impacted.

Close Old Credit Cards

Many people think that closing out old credit cards can be a positive financial step forward and a good way to streamline their finances, but this can cause damage to your credit score. Because closing a credit card will change your available balance and bump up your debt load, it may mean that your debt percentage will increase. Instead of risking this, leave them active until you’ve received approval.

Quit Your Job

Few people will have the ability to quit their job when they’re applying for a mortgage, but doing this or incurring other fluctuations in your monthly income can cause problems with your application. If you are self-employed, there may be peaks and valleys in your finances, but a huge shift in what you bring home can show lenders that you’re not a solid bet.

There can be a lot of stress that comes along with the mortgage application process, but by paying your bills on time and staying on top of your payments, you can avoid negatively impacting your approval. 

Making the Grade: How to Research Local Schools Before Buying Your Next Home

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Making the Grade: How to Research Local Schools Before Buying Your Next HomeThere are so many things involved in moving into a new home in a different neighborhood that it can be easy to forget about the proximity of many nearby amenities. However, if you have children, the local schools available can make-or-break the decision on whether or not to invest in a house. If you’re wondering how you can find out more about the local school, let the following tips be your guide.

Take a Web-Search To SchoolMatch.com

One of the benefits of so many things being online these days is that local schools are no exception, and SchoolMatch.com is a great resource that puts this information at your fingertips. While you’ll have to pay a fee to get the details on many public and private institutions, this resource features ratings on schools throughout the country which can make it worth the price.

Contact The NAEYC

With a wealth of information on preschools, kindergartens and elementary schools located throughout the country, the National Association for the Education of Young Children is another helpful website to visit. While the organization offers informational pamphlets that can help you decide a school’s benefits, you can also call in if you want to speak with someone directly about a particular institution.

Make A Visit To The Neighborhood

While it can take a lot of time to visit the schools in the neighborhood you’re considering, this is a great way for you to get a sense of the area you’re moving to and what it affords. By taking a walk through the hallways to view the building’s upkeep and even visiting the office to talk with the Principal, you’ll be able to decide whether it’s a good fit.

Talk To An Agent

It might seem a bit strange to talk to a realtor about local schools, but real estate agents are responsible for providing a multitude of information to potential homebuyers so they have to be in the know. Whether they’re able to help you with a house or not, it’s certain they’ll have some of the basic details about your neighborhood’s educational offerings, whether it’s good or bad.

There are a variety of amenities that can improve the appeal of a new neighborhood, but good schools are a necessity when it comes to the kids.

Let’s Talk Closets: How to Organize Your Closet Spaces Without Breaking the Bank

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Let's Talk Closets: How to Organize Your Closet Spaces Without Breaking the BankThere is a particular pleasure in a well-organized closet; not to mention the space and energy-saver that it becomes! And the best part is that you don’t need to spend tons of money to get a dapper closet space. A lot of the work is just thinking outside the (clothing) box.

Plan The Closet First

Before anything else, sit down and plan out your closet. Measure it so you know the exact dimensions (if you need to grab a rod or drawers, you’ll know what size fits). Clean out your closet (to get a better idea of its contents and space), then plan out what you want it to store. Having a clear idea of how you want to organize the space will prevent impulse purchases and conflicting organizational strategies.

Optimize The Contents

Your closet is essentially a functional space, so treat it that way. Think about what you want to have easy access to, and what can be rotated into storage. (Bulky winter coats, for example, can be stored elsewhere until winter rolls around). Once your closet is pared down, look for items that you can donate: think anything you haven’t worn in a year or more.

Optimize The Space

Even if you have a small closet, it can be a mighty space. Optimize what you have by using the walls and the door for hanging storage, and by stacking items. Wire shelving is cheap and easy to install, and is great for seeing at a glance what’s there. A movable closet rod (for hangers) can be pushed up for more storage, and pulled down for easy access. And what about the double-hanger trick; hooking one item’s hanger off another’s? This way you can pair items that go together to save time and save space. Or use shower rings on hangers to store scarves; multiple scarves looped on one hanger; and hang baskets under shelves to maximize space.

Organize The Space

Experts say that organizing items by color is not the most efficient method; instead, group items by activity or function. Pants are with pants, dresses with dresses. Use labels to make access and maintenance easy. Put the most frequently used items in the center and at eye-level, and make sure drawers are slightly below eye-level for the easiest perusal. Finally, think creatively: use hanging shoe bags for other items, hang jewelry off spruced-up paint stir sticks, store entire sheet sets in their pillowcases.

If you have questions or need input, contact your local real estate agent. After all, they have closets of their own. Who knows what organizing expertise they can share?

Understanding Real Estate Contracts and What You Can Expect to Find

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Understanding Real Estate Contracts and What You Can Expect to FindThere are a lot of things that go into the successful sale of your home, but many people are unfamiliar with the intricacies of the contract. Whether you consult with your real estate agent or plan on diving in on your own, it’s important to be clear on the terms. If you’re wondering what you can expect when it comes to the contract, here are some pointers on what to watch out for.

Real Estate Jargon

A real estate contract would not be complete without the professional terminology, so you’ll see words like amortization, price-to-income ratio and title that may impact the meaning of your contract. Instead of going it blind, search the Internet for terms or consult with your real estate agent to provide a clear explanation.

Specifics On The Sale

Information regarding the specifics of your property will be present in the contract, and it’s important to check this information before signing on the dotted line. While the address and location of your home are important, it’s also critical to verify the purchase price that has been decided upon, the closing date on the property and any other items that have been negotiated and agreed upon.

Be Aware Of Withdrawal Terms

It can be easy to be taken away by excitement once you’ve received the perfect offer on your home, but it’s important not to lose sight of everything that’s required before the sale has been finalized. One of the most important parts of the contract is the withdrawal terms that are laid out, so be certain you’re aware of what your rights are if you or the homebuyer decides to withdraw from the process.

Watch For Seller’s Responsibilities

If you, as a seller, do not remain committed to the terms of the contract this can be a deal breaker, so ensure that you’ve familiarized yourself with exactly what’s required of you. This may include everything from the maintenance on the property to offer negotiations, so it’s important to comply with these terms.

Dealing with a real estate contract can be confusing for the layman, so it’s worth your while to have a trusted real estate agent around who will be able to explain it. From withdrawal terms to seller responsibilities, there are plenty of things you should be aware of before sealing the deal. If you’re currently embarking on selling your home, you may want to contact one of our real estate professionals for more information.

Six Key Reasons You’ll Want to Work With a Real Estate Agent When Pricing Your Home

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Six Key Reasons You'll Want to Work With a Real Estate Agent When Pricing Your HomeWhether you know a little bit about the market or you’ve sold a home before, you may be considering pricing your own home to avoid the assistance of a real estate agent. However, there are a number of benefits associated with consulting an agent when selling your home. Before making a final decision, consider the following tips.

They Know The Neighborhood

It’s great if you have familiarity with market prices, but knowing a neighborhood is key when it comes to determining price. The right agent will be able to help you arrive at a price that is good for your home and practical for the area you’re selling in.

Is The Market Hot?

The price may be right, but if the market has cooled off, you may have to make a compromise in order to sell it. Instead of trying to arrive at this on your own, an agent will be able to provide insights into the best strategy.

They’ve Sold In The Area

A local agent may have sold properties in your area recently and may be well aware of the price potential. With this added expertise, they can walk the line between your ideal price and what you can get.

Preparing A Plan B

An agent may agree to go with a higher selling pricing if you’re committed to it, but they will also help you make another plan if the price doesn’t work out. It’s disappointing to not get what you’re asking for, but it’s better to have a plan just in case.

Saving On Stress

It’s one thing to decide on the price of your home, but it’s quite another to deal with all the stress if it lingers on the market without an offer. If an agent assists you in determining your price, they’ll also be there to shoulder some of the stress.

When It Comes To Negotiating

The negotiation following a home offer is make-or-break for selling your home, so having an agent is a great benefit. While they won’t be able to make the decision for you, they can serve as a helpful guide in determining an appropriate counter offer.

Many homeowners want to embark on selling their home on their own, but a real estate agent can be very helpful in determining a purchase price and assisting with the negotiations. If you’re currently getting prepared to sell your home, contact one of our real estate professionals for more information.

What’s Ahead For Mortgage Rates This Week – January 2, 2017

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Last week’s economic reports were in short supply due to the Christmas holiday. Events reported included Case-Shiller home price indices, pending home sales and weekly readings on mortgage rates and new jobless claims. Consumer confidence was also released.

 

Case–Shiller Readings Indicate No Slowdown in Home Price Gains

Case-Shiller’s October readings for its home price indices showed continued growth in home prices. In spite of rising home prices and mortgage rates, high demand for homes and slim supplies of homes for sale continued to fuel higher home prices.

According to Case-Shiller’s national home price index for October, home prices rose 5.60 percent on an annual basis as compared to September’s reading of 5.40 percent. The 20-city home price index rose to 5.10 percent from September’s reading of 5.00 percent. Case-Shiller’s 10-city index also gained 0.10 percent in October with a reading of 4.30 percent year-over-year.

Seattle, Washington, Portland, Oregon and Denver, Colorado had the highest year-over-year home price gains in October with readings of 10.70, 10.30 and 8.30 percent respectively. David M. Blitzer, Managing Director and Chairman of the S&P Indices Committee, said that “Home prices and the economy are both enjoying robust numbers,” but he also cautioned that rising mortgage rates and home prices growing faster than wages continue to pose obstacles for some home buyers. The Federal Reserve is expected to raise its federal funds rate in 2017, which is expected to prompt rising mortgage rates.

 

Mortgage Rates Mixed, Pending Home Sales Fall

Pending home sales fell 2.50 percent in November. Analysts said that post-election reaction helped to drive mortgage rates higher, which made homes less affordable for first-time and moderate-income buyers; Sellers and buyers may have postponed decisions to sell or buy as they waited for volatile post-election responses to ease.

According to the National Association of Realtors®, pending home sales fell to their lowest level in almost a year with an index reading of 107.30 in November. September’s reading was 110.00. The holiday season and rising mortgage rates were seen as contributing to fewer pending home sales.

Freddie Mac reported the ninth consecutive week that fixed rate mortgages rose. In the final mortgage rates survey for 2016, the average rate for a 30-year mortgage rose two basis points to 4.32 percent; the average rate for a 15-year fixed rate mortgage was three basis points higher at 3.55 percent. 5/1 adjustable rate mortgage rates averaged 3.30 percent, which was two basis points lower than the prior week. Discount points averaged 0.50 percent for all three mortgage types.

New jobless claims were lower last week with a reading of 265,000 new claims filed. Analysts had expected 270,000 new claims filed based on the prior week’s reading of 275,000 new claims filed.

In spite of rising home prices and mortgage rates, consumer sentiment was higher than expected in December with a reading of 113.70 as compared to expectations of 110.00 and November’s reading of 109.40.

 

What‘s Ahead

Next week’s scheduled economic reports include Labor Department releases on Non-Farm Payrolls, and the national unemployment rate. ADP payrolls and weekly readings on mortgage rates and new jobless claims will also be released. Financial markets will be closed on Monday in observance of New Year’s Day.

Selling This Winter? 4 Negotiation Tips to Ensure a Speedy Home Sale

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Selling This Winter? 4 Negotiation Tips to Ensure a Speedy Home SaleIt’s a great feeling to get an offer on your home, but there can be a lot of details that go into seeing the negotiation through to completion. If your home is currently on the market and you’re expecting buyers to snap it up soon, here’s what you’ll need to know to get your ideal price in no time at all.

Remember To Counter Offer

A potential buyer will generally offer you a price that is lower than what they are willing to pay to see if they can get it, so it’s important to not get so excited by it that you give up on negotiating. While it’s a necessity to be a little flexible on price, it’s still important to get an offer you can feel good about.

Give Them Time, But Not Too Much

It’s important to give buyers the time needed to mull over any counter offers or final negotiations, but you don’t want to stave off other potential buyers in the interim. Instead of missing out on other viable buyers, give the interested party a frame of time to decide so they and you can walk away without hesitation when it’s passed.

Continue To Communicate

If you don’t express any measure of interest for a buyer’s offer, there’s a good chance they’ll walk away, so ensure you’re communicating clearly about your price expectations and the value of your home. By keeping the potential buyer aware of your reasoning and timelines, they’ll probably be impressed by your professionalism, which can work in your favor.

Don’t Forget About Home Repairs

It may be easy to forget about the importance of the home inspection, but any issues uncovered can change the offer price of your home or cause negotiation breakdown if there’s a significant problem. Instead of getting derailed, ensure that you’re willing to drop down your purchase price to cover necessary repairs or get the fixes made yourself so the deal can move forward.

There are a lot of details to work out when it comes to selling a home, but negotiations are key in maintaining a potential buyer’s interest. By keeping the communication lines open and being clear about your timeline, you may be well on your way to a home sale. If you’re getting ready to put your home on the market, contact your trusted real estate professional for more information.