From everyone at Global Realty, we wish you a very happy New Year!
From everyone at Global Realty, we wish you a very happy New Year!
As we look back upon the past year, we would like to acknowledge those who have helped us shape our business. We are grateful to have the opportunity to express our thanks to those who have allowed us to do what we love; buying and selling homes. We hope that your holiday season is filled with joy, happiness and health. Happy holidays from everyone at Global Realty!
If you plan on buying a home in the next year, you may want to consider doing so this holiday season. While the rest of the market is focused on celebrating the holidays, you can focus on getting the best deal in town. Purchasing a home during the holiday season enables home buyers to extend better offers and purchase when demand is low.
Now, let’s take a look into the many benefits associated with buying a home during the holiday season!
Exactly What You Want, For Less
With demand for quality housing increasing, finding a home priced below its value is becoming more difficult. What you may not know, is that while demand is increasing, the number of potential home buyers dwindles during the holiday season. This reduction in demand can make buying and negotiating an easier process.
First Time Homebuyers Welcome
Purchasing your first home can be a painless experience if you opt to buy between November and January. Research collected from a study conducted by Realtor.com indicates that most individuals seeking to purchase a home in the next year will wait until the spring and summer months to buy. Why you may ask? Because these individuals refuse to switch homes during the school year and when family and friend interactions are at an all-time high. It is hard to entertain guests when your belongings are transferred from one home to another.
One way you can stand out in a sea of prospective buyers is to send home sellers letters regarding their homes. By taking a quick moment to write a letter to a homeowner indicating personal interest in their house sometimes motivates people to sell earlier. One downside of doing so is that it may indicate a willingness to spend during negotiations, so be careful!
Actively searching for a home is a time intensive process. Finding exactly what you want, at a price you can afford, is difficult on your own and where Global Realty can help immensely to make the process much easier and more enjoyable.
Buy Low, Save Money
Searching for a home during Michigan’s short and cold winter days pays off especially when sellers are motivated to get moving before the end of the year. One indicator of a seller’s urgency to move properties is their interest in timing. Opting to sell a home during the winter months makes it clear that they are interested in moving quickly.
The Best Holiday Treat
Moving into a new home during the holiday season is something special. Decorating for the holidays just after moving into your new home makes settling in a real treat. Take advantage of the season’s ability to improve seller’s moods and move into the home of your dreams. For more information on buying a home during the holiday season, please contact Global Realty.
You might be wondering why you should buy a house now as opposed to waiting. Right now there is an excellent opportunity to purchase a home in many areas in Metropolitan Detroit at low prices.
Real estate values are expected to rise in several Metropolitan Detroit neighborhoods
Real estate is expected to increase in value in several neighborhoods over the next 3-5 years. Speak with a real estate expert to get more information about these specific areas that present good buying opportunities.
Interest rates are expected to rise soon
Although, interest rates remain at historic lows, they are expected to rise soon which means that the opportunity for a low interest mortgage is starting to close. If you plan on buying in the next 6 months or sooner, you can still capitalize on low interest rates and buy a home with manageable mortgage payments.
Rent prices may rise in your area
As mentioned earlier, home prices are expected to rise in the next 3-5 years in several Metropolitan Detroit area neighborhoods, which means that rents may also increase.
Why buy a house now in the Metro Detroit area? Ask an expert.
It is always a good idea to get the advice of a real estate professional before you plan things out. Contact us today to ask any questions you may have.
We are very grateful to have amazing customers and friends. We wish you the happiest of holidays!
2017 brings both a new year of opportunity and an expected increase in home sales. Determining the path of mortgage rates is much more complex; though low rates throughout 2016 may indicate a potential for low rates in 2017.
If you are in the market to buy a home or are interested in refinancing your loan, these tips may help you manage your mortgage in 2017.
Borrow Only What You Can Afford to Repay
Forward looking borrowers tend to stretch their initial monthly payments into uncomfortable territory. By stretching payments and spending more than your income allows can get you in trouble.
A safe and smart approach means you only borrow what you can afford to pay based on your current situation. Debt obligations come from many aspects of our lives, paying for too expensive of a mortgage can make meeting ends difficult.
Save by Refinancing into a 15-year Loan
While experts expect mortgage rates to remain the same or rise in 2017, refinancing can be a good option. Some reasons you may want to investigate refinancing include: divorce, recovering from low credit, removing mortgage insurance, maintaining positive home equity, cashing out home equity, and saving money if the rate is lower than your initial rate.
These are great reasons for refinancing because the process will place you in a more financially stable position. Refinancing into a 15-year mortgage can save you money in two ways. First, if the interest rate is lower than a standard 30-yr mortgage rate, interest is paid in a shorter time. Second, higher payments each month can expedite the payment process if you can afford the increase.
Always Maintain Savings
A major myth that homeowners hold is that using their savings to pay higher down payments is a good decision, though this is not always the case. Savings, whether it be liquid cash or near-liquid investments, enable mortgage holders to pay their payments during times of unexpected financial burdens. When you have reserves available in case of emergency, you can maintain a stable relationship with your lender by paying on time.
Your specific lender will calculate a minimum reserve needed to qualify for a mortgage to protect their investment in you. There is a possibility that the reserve requirements may require you to pay a down payment below 20% and that mortgage insurance will be necessary. If this is the case, holding off on the mortgage until more reserves can be collected is a great idea. Lenders are much happier to work with individuals who can afford regular payments, have good credit, and possess a small reserve of savings, than to receive a major down payment.
The depletion of saving reserves is a top home-buyer mistake! Do not fall into this trap.
Use FHA to Obtain a Loan with Imperfect Credit
The Federal Housing Administration (FHA) offers many insured loans which enable borrowers with imperfect credit to obtain a home mortgage. The average credit score in 2016 for an FHA homebuyer was near 686; whereas, the average homebuyer presented a credit score of 753.
To qualify for a FHA loan, a minimum credit score of 580 is needed, along with a down payment which can be as low as 3.5%. Higher down payments can enable homebuyers with credit scores less than 680 to get one too.
Show Patience during Underwriting
While applying for a loan based on your credit, it is important to maintain simple spending. Lenders will be evaluating your spending and historical use of credit to determine if you are a good or risky borrower.
Lenders also look at your credit score and report, meaning that substantial charges to credit can be a problem. Keep this in mind while you are attempting to apply for loans.
Consider Refinancing into a VA Loan
If you are currently eligible for a VA-guaranteed mortgage, and are interested in refinancing, you are in luck! Homeowners with mortgages can refinance their mortgage from a conventional type, specifically FHA-insured, into a VA loan. Although fees vary, you may be able to save a lot of money by refinancing your loans.
A Cash-Out Refinance May Work for You
A Cash-Out refinance is when homeowners decide to refinance their mortgage for more than the amount owed, allowing the borrower to pocket the difference. These types of mortgages were very popular during the real estate boom of the 2000’s, and have regained popularity as consumers seek new capital. Cash-Out refinancing can enable you to collect capital to do home improvement projects or for non-home uses.
Zero-Down VA Loans
Veterans Affairs-guaranteed mortgages are extremely popular, though commonly underused by homebuyers. An eighth of mortgages were guaranteed by the VA in 2016. Many veterans are unaware of the VA based loans which can benefit them.
VA loans are available to honorably discharged veterans, those on active duty, as well as spouses. Low rate benefits and zero-down payment required on specific loans can allow prospective homebuyers on the edge of committing to a home, the ability to purchase it.
No-Closing-Cost Mortgage Options
Closing costs can increase the final home purchase price quite a bit. By opting to pay for the closing costs and associated fees out of pocket, you may experience the lowest rates available. The typical no-closing-cost mortgages are attractive to individuals who plan on selling their home soon. If you are close to needing mortgage insurance, this may not be a good option as this can push your reserves below the needed threshold.
Small/ No Down Payments
Homebuyers typically associate mortgages with sizeable down payments, though this is no longer the norm. Prospective homebuyers can obtain a mortgage with low to no down payment required.
As always, consult with a licensed financial expert regarding your investments and financial decisions to make sure they are best for you.
Global Realty offers cash for homes in the Metropolitan Detroit Area. If you are looking to sell your home quickly, this might be the right option for you.
Cash Sales Are Fast
A major benefit of cash for home sales is the fact that they are completed fairly quick compared to other methods of selling your home. If you plan on moving in a short period of time to another city, have inherited a relative’s home, or just want to sell your home fast, a cash sale can make a lot of sense for your particular situation.
To learn more about cash for home sales, please give us a call.