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Consumers and the MBA Agree: It?s Easier Now to Obtain a Mortgage

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A recent Fannie Mae survey has reported that a majority of home buyers believe it is easier now to obtain a mortgage than previous years. If
Acuity image mortgage availability 2consumer confidence is any indicator (which it is), this result suggests that mortgage availability is finally starting to improve.

The Mortgage Bankers Association believes that consumers are correct about the increased availability of credit in the mortgage industry. They also report that the availability of credit in the mortgage industry has increased primarily in markets for jumbo loans and refinance loans. The MBA?s chief economist, Mike Fratatoni, believes that much of this growth has been spurred by lenders who are using new qualified mortgage regulations to offer jumbo loans and refinance loans that offer better terms for consumers.

However, other economists who study the mortgage industry closely believe that a reduction in the number of mortgage defaults and delinquencies is also playing a key role in the expansion of credit in the mortgage industry. Encouraging increases in home sales and home values have allowed many homeowners who were on the brink of defaulting on their mortgages to trade their more expensive home for something more affordable.

Many economists believe these trends should give the mortgage industry the confidence needed to expand mortgage availability during the next 12 months. This assertion makes sense, as most mortgage industry analysts believe the majority of the toxic loans that were the cause of the 2008 credit crisis have finally been removed from most lenders? asset sheets.

Many economists and mortgage industry analysts believe lenders will use these trends and statistics as a signal to continue to expand mortgage availability programs to take advantage of low interest rates, encouraging job growth trends and tight home inventories. As a result, don’t be surprised to see more consumers take out more mortgages in 2014 to purchase homes!

The Best Social Media Platforms for Realtors

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Making good use of social media is a must-do for anyone who wants to be noticed in today?s marketplace. However, it?s understandable that some people and businesses may shy from taking advantage of social media?s boons because this new world can be quite overwhelming. There?s Facebook, Instagram, Pinterest, Tumblr, and a plethora of other platforms out there! Which of these services would work best for you and your business?

Below we provide a rundown of the prominent features of the four most widely-used platforms that can benefit realtors and others in the real estate world:

Facebook works best for personal interaction, and is actually not the most effective platform for businesses to use. However, realtors can employ Facebook?s many features to share tips, photos, to make announcements to garner attention and generate leads. The current downside, though, is that Facebook has started to require users to pay for increased visibility.

?Twitter requires that all posts be limited to 140 characters, yet it also allows users to include a link or photo. A great way to network with potential clients without sharing too much, Twitter can be a good means of garnering a following, especially if you provide intriguing tidbits based on your specific realtor expertise. People look to this platform as a source of news as well, so make sure you use it to say something newsy, more than to solely advertise.

LinkedIn is a good place to interact with others in the real estate industry. The platform allows others to see your credentials and to provide endorsement of your skills. Potential clients looking to size you up can view background information about you. This platform is also an ideal place to forge relationships, with businesses requiring your real estate expertise.

Google+ is a great way to boost your SEO (Search Engine Optimization), as Google favors anything posted there (This means that your Google+ profile has a greater likelihood of being ranked higher in search engine results). Additionally, the site also combines the best features of both Facebook and Twitter.

If you have limited experience with using social media to establish and spread your online presence as a realtor, don?t fear! As with any new strategy, there will be a learning curve initially, but it won?t be as steep as you think. Remember that it?s okay to try out different platforms to find those that have features you enjoy and are effective for your work. Before you know it, you will be creating inspired realtor content that gets shared. Now, get started! Soon enough you?ll be wondering why you weren’t involved years ago.

Consider the ROI When Remodeling the Home

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It?s easy for Acuity National Real Estate Solutions Remodeling the Homea homeowner to get their heart set on a particular design for a new kitchen or a particular style of bathroom for the master bedroom when remodeling the home. However, a savvy homeowner is going to think about the return on investment that they will get from a remodel prior to executing it. They will consider the question: ?Will I be able to recoup my investment when the time comes for me to sell my home??

In order to answer this question, homeowners first need to think about the other homes being sold in their neighborhood. How much are these homes going for? Will the remodel job a homeowner is planning to do make the home more expensive than what people would be willing to pay for in the neighborhood?

Buyers shop where they know they are going to find what they want. This means that if buyers want a home with a swimming pool, they are going to look for neighborhoods where most homes have swimming pools. Therefore, if your home is the only one in its division that has a swimming pool, it?s likely that buyers in your area aren?t considering pools and may not even know your home exists. It?s actually likely that an over-improved home will be more difficult to sell?

Remember to consider that not everyone has the same taste. Sometimes homeowners include features in their homes that are important to them but that many buyers could care less about.? Other times homeowners may make improvements in harmony with their own visions but which may be too radical for the buyers in their area.

Remodeling the home to mask a problem is a mistake. For example, an individual may have a kitchen that?s just too small. This person may choose to install expensive cabinets and counter tops, which is great?they look really nice?but in the end the kitchen is still too small for many buyers.

At the end of the day, when it comes to remodeling the home, homeowners must be realistic, if they?re considering selling in the future. They should make their home generic enough that another individual would be interested in it. When considering remodeling, a good rule to adhere to is to speak with a realtor or lender in your area. Ask them what they would consider to be reasonable updates that would add value to your home without alienating it from the market.

When Selling Your Home, Think Beyond Location

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When it comes to real estate, every home seller has heard the old advice that location is everything. Well, in reality, that?s just not true most of the time. While there is some truth to the claim that location makes a difference to potential buyers, this oversimplified perspective leaves out two critical factors buyers consider when seeking a home: condition and price.

The Problem with Relying on Location

Although location does have an impact on the value of a home, buyers don?t always mind an extra few minutes? drive to the beach when they can find a more affordable option down the road. In fact, plenty of potential buyers will turn down the penthouse or mountaintop villa when they can find a home in better condition at a lower cost. For this reason, your agent may tell you stories about oceanfront properties sitting on the market for ages because of sellers refusing to negotiate on pricing preference.

How Buyers View Condition

When touring prospective homes, buyers often take into consideration how the home?s current condition affects its value. While you may know that your faded carpets can be replaced, many buyers are ready for a home that is all set to be moved into immediately. Remodeling costs money and it?s time consuming. It?s especially a hassle when a family is just moving in. Really, no one wants to have to wait to move into a home because of its poor condition, and buyers are willing to continue their housing search if price doesn’t match current condition.

Why Fair Pricing Matters

If you believe your real estate skills are strong enough to sell your home solely based upon its location and condition, then go ahead and give it a try. However, you may be surprised to discover that you?ll be in for a long wait. This is especially true if you?re selling with the representation of a real estate agent who has likely already told you that your pricing is too high. Many homes on the market have continued to sit as buyers pass them by in favor of another home that better fits their budget and yet also offers plenty of amenities to suit their lifestyle.

So, the takeaway here is, when it comes to selling your home, always listen to your agent. She or he can help you avoid hosting showings where your house is left empty of visitors. Remember too, once your home hits the market, it?s no longer about you. Rather, it?s all about setting the right price.

Acuity Image Sellers Need to Think Beyond Location

How to Find the Mortgage Option that Works Best For You!

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If you want to take out a mortgage, you probably can. However, many mortgage options may not be in your best interest, and many home loans are sold by people who claim to be professionals but who are, in fact, not. Below we discuss some tips on how you can choose a mortgage option that works best for you.

First, use a mortgage payment calculator. Doing so will help you pick a mortgage option that is appropriate for your situation. Now let?s take a look at some mortgage requirements and options:

The Reimbursement Mortgage

If your income and savings are small, then a usual reimbursement mortgage may be ideal for you. With this option, you should have the ability to buy the house you want with payments you can afford. Additionally, a low start mortgage requirement might allow you access to a nicer residence or to lower mortgage payments if you expect your income to increase.

The Repayment Mortgage

For those with a good income but low savings, a usual repayment mortgage could be great for you, if you’re able to get one. If you want to pay off your mortgage early, then paying short-term here may be the best option. However, having a counteract mortgage linked to your current account could help with doing this far more easily.

Smaller repayment mortgage requirement loans may be best if you have a lot of savings but a small income. If you can commit funds to a much better return as compared to the monthly interest payment, then you should receive the best repayment mortgage loan that the earnings can leverage.

Additionally, because preliminary payments are usually quite expensive, it?s important to ensure that you earn an individual income that covers your expenses. If your earning is less than the loan, paying over 30% of you income could be very challenging. If your income is larger than your loan, however, then it may be wise to allow 50% of your respective income, as doing so would be less challenging for you.

Lastly, if you purchase a home just as an investment, you might need professional assistance. A professional should be able to help you obtain the most optimal deal on a mortgage that fits within your financial situation. Additionally, if you have doubts about being a new landlord and owning a number of houses, it might make sense for you to take advantage of the assistance of an expert specializing in such mortgages before taking the mortgage out yourself.

Realtors: How to Engage Leads With Your Website

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As a real estate agent, you probably find that maintaining constant engagement with leads is tremendously valuable for your business. You also probably understand that an important way to achieve this lasting connection is with your website. Here we discuss some ways to really maximize the impact of your website and simultaneously build client engagement by offering free and ongoing information.?

One way to offer free information to potential clients is to have a blog, and to update this blog on a regular basis (very important for your SEO optimization). Now, this blog may be your own commentary, or you may want to provide links on your site to other articles that you think are interesting and trustworthy, especially since there are so many articles out there already written by skilled pros in your industry. For instance, various marketing companies may be a suitable source for linkable blogs.

If you?re considering blog topics, feel free to browse those we?ve already posted on the Acuity website. You can provide cautionary or advisory tidbits of expertise, reflections, updates on what?s going on with your business or sales. For instance, you can bust out an article about tips to guarantee the highest value for your home. A read-through like this would not only attract sellers, but would also keep them coming back to
Acuity rewrite engage leads with your website 2your for more!

When considering blog topics, it?s important to have articles that are not only for sellers but are also for those interested in buying a home. Some folks out there may browse your site simply to learn more about the real estate business. In all, you should cover enough information to answer all basic questions you can think of and to explore unique topics.

Another effective way of maintaining communication with leads is to produce a newsletter. Doing so, really, can be as simple as giving people an opportunity to regularly read your material through subscriptions via email. The consistency of good quality material should in turn produce more leads for you. Hint?make sure to send the newsletter to everyone on your email list at least once a month to keep them engaged.

Another hint?if the concept of a newsletter is new to you, consider using a template! Do a test run with the template to see how well readers respond to your newsletter. Remember, you can always tweak it here and there as you go along, and soon you?ll learn just what your readers like. As with the realtor website, the newsletter should contain a hybrid of your original material and information gathered from other sources. Eventually, you?ll have the perfect layout.

The Kitchen is the Heart of the Home

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Many people trying to sell their home don?t realize just how important the kitchen is in this process. However unassuming some may think the kitchen is, the room can actually play a big role in selling a house. After all, there?s a lot of truth to the old saying, ?the stomach is the way to the heart.?

The kitchen, some would argue, is the real heart of a home. It?s where many of us both eat and spend time with family. A kitchen can also be the main show piece of a house. You see it everyday, and visitors may see it at almost every visit. So, it?s no surprise that today?s buyers want houses with up-to-date and/or just plain charming kitchens.

Of course, kitchens can be quite expensive to renovate. In fact, many homeowners spend much more money and energy renovating a kitchen than they would any other room in the house. These sorts of projects require a lot of time and labor; there?s a lot more to renovating kitchens than just adding a new layer of paint.

Really, prospective renovators often deal with a dizzying array of tiling, flooring, cabinetry, and counters. Buyers do want houses with up-to-date kitchens, but they most certainly don?t want to do the job themselves. The vast majority of buyers want a kitchen that?s ready for use on move in day.

So, what are buyers looking for in kitchens? The answer to this question depends on the price range of the home.

As a seller, you do not want to price yourself out of the market. If houses in your neighborhood are selling for $100,000 with tidy kitchens, then you do not need to upgrade to marble, travertine, or granite at the price tag of $40,000. You just won?t find any buyers.

You should always take a good look at the competition. Use MLS listings or open houses in your area to find out what your competitors? kitchens look like.

Do the other houses in the area have new granite counters and solid wood cabinets in today?s designer colors? If so, then you may want to make that same move. Do these homes have stainless steel appliances and other features like wine coolers, trash compactors, or updated dishwashers?

Also, consider, are you in an upscale neighborhood? Is so, then you have to think high-end for that kitchen of yours. Older houses may have nice kitchens, but buyers often consider the time and money it would take to renovate them in the future. You may want to make a concession price-wise if you don?t want to make the upgrades yourself.

Really, though, there is no need to be overwhelmed. Kitchens can be updated with just a few simple changes. You can alter the paint, de-clutter, update the appliances, and get a lower end granite or faux granite for a lower price. You can save a lot of money by doing some of the work yourself.

Nice kitchens sell homes. If you?re thinking of selling, do yourself a favor and find out about other kitchens in the area. Doing so should allow you to find out what you need to do to your own kitchen to make your home a real competitor in the local market.

A Few Tips for the Mortgage Borrower!

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Mortgage rates are on the rise, and borrowers really can?t afford to wait long to take out a mortgage? Here are ten mortgage tips for borrowers in 2014 to keep you on top of your game!

?1.?Act quickly to get a good rate.?Interest rates are likely to rise in 2014. Lock in a low rate while you still can!

?2.?Look into refinancing now.?You may still have a chance to save money with a refinance. Check with a lender now to evaluate your situation.

?3.?Keep your records in order.?New regulations in 2014 will require lenders to examine borrowers more closely than in the past. You will need to have good financial records to show that you are able to make the mortgage payments.

?4.?Use the competitive market to your advantage when you buy.?Mortgage lenders are more dependent on new homebuyers for their business in 2014 than they?ve been in a while. As a buyer, this fact gives you a significant advantage as you encourage lenders to compete for your business.

?5.?Pay careful attention to your spending.?If you have too many obligations to pay, you could have trouble getting a mortgage. Watch your spending closely, and keep your debt payments as low as possible. Of all our mortgage tips for 2014, this may be the most important one.

?6.?Work on your credit.?A better credit rating always means a better deal on loans, so be careful with your credit score. Your best chance of obtaining a good deal on a mortgage is if you have a credit score of at least 720.

?7.?Know your rights before you borrow.?Borrowers in 2014 will enjoy enhanced rights due to new regulations. These rights may be useful to you, but you can?t assert your rights if you don?t know what they are!

?8.?Beware of FHA loans.?FHA loans can often be attractive for first-time homeowners, but watch out. If you carry an FHA loan you will have to carry mortgage insurance at additional cost for the life of the loan.

?9.?Keep your mortgage options open.?If you expect to keep your house for 10 years or less, consider taking out an adjustable-rate mortgage instead of a fixed-rate mortgage. This option is only viable if you know that you won?t be keeping the house long-term.

?10.?Relax and don?t overreact.?The threat of rising mortgage rates might indeed motivate you, but don?t let the pressure cause you to make a hasty decision. Choose your home carefully, and don?t buy a house until you are comfortable that it is the right one for you.

Choosing the Mortgage Term That is Right for You!

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Negotiating mortgages can certainly be a daunting task for first-time buyers. Many potential borrowers don?t fully understand a mortgage?s risks and costs, much less know exactly what mortgage type is right for them. 15-year mortgages can be very attractive because of their low interest rates when compared to 30-year mortgages, but that doesn?t mean they?re the right choice for everyone.

Different types of mortgages structure their payments differently, meaning that buyers need to consider not just what they are willing to pay for a loan but also what they will be paying over the long-term. Here we discuss some of the most essential questions you should consider before choosing a mortgage term:

1. Can you afford a 15-year mortgage?

Compared to a 30-year mortgage, a 15-year mortgage has a lower rate, but there?s a tradeoff there where you have to make higher monthly payments. Since 15-year borrowers have now promised to pay off their loan in 15 years, rather than in 30, each individual payment will be larger. In the long run, you do save on interest payments, because you pay off the balance faster, but the higher mortgage payments may make it harder to save for retirement, college funds, or other investments. Saving money long-term may just not be worth the price of financial strain for the next 15 years! If the higher mortgage payments are going to be difficult for you to scrape together each month, a 30-year mortgage may actually be the better choice for you.

2. Is this your first home?

For first-time buyers, a 30-year mortgage is often a smarter choice because of those lower monthly payments. Long-term mortgages can help take an expensive house and make it an affordable option for first-time homebuyers.

For homebuyers who are certain they will be reselling the house in a short amount of time, however, there?s also the option of taking out an adjustable-rate mortgage. This type of mortgage term has a low, fixed rate for a certain period of time. After that time expires, interest rates could rise and buyers could pay more. This type of mortgage is best for those who only plan to own the house for a few years before reselling it.

3. Are you looking to refinance?

Refinancing from a 30-year mortgage to a 15-year mortgage can be a good option for some people. If you?re keeping up well with your 30-year mortgage, it might be possible to refinance it to a 15-year mortgage with similar payments. This change might be a good option, especially right now, because of the difference between interest rates. In the past, the spread between the 30-year and 15-year fixed rate mortgages has been around a quarter percent, but the current spread is around 1% in some areas.

4. Will you be retiring soon?

Borrowers who take out 15-year mortgage are typically at least 40 years old. These borrowers prefer to pay off their mortgages faster, in the hopes of retiring with little to no debt on their house. Of course, as we mentioned earlier, higher monthly payments can make it difficult to set aside the money for retirement, so that should be taken into consideration as well.

5. Do you follow your savings plan strictly?

If you are a disciplined saver who follows their savings plan to the letter, you may be able to get past the higher monthly payments of a 15-year mortgage and be able to set aside enough money for long-term future plans. Many people, however, choose a 30-year mortgage term because their lower individual monthly payments mean they can be more flexible with their savings plan, and have less chance of having to dip back into their savings for emergencies.

What are Closing Costs??

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Many first-time home buyers may be unaware of some of the hidden costs associated with getting a mortgage, especially those that arise at closing. Often, homebuyers think that the best mortgage is one with the lowest interest rate, but this is not necessarily true. We discuss some of the hidden costs of closing here, to help both veteran and new home buyers alike.

Almost all of the ?hidden? costs from a closing relate to the set of fees that the mortgage lender is charged by other companies involved in the process. Usually, these fees are passed on to the buyer to deal with, though a few costs are assessed by the lender. Regardless, all of these fees are settled at closing, earning them the name ?closing costs.?

These costs usually account for 2% to 5% of the total, but that may vary. Costs and fees typically come from payment of:

? The credit report

? Loan-origination

? Legal fees

? Home inspection, appraisal, and survey(s)

? Title insurance and searches

? Deposit for escrow

? Recording fees

? Underwriting

Additionally, the purchaser may increase his or her costs by using discount points to lower the interest rate of the loan, which does lead to saving over the long term. The buyer pays the majority of the closing costs; however, in some cases, other parties may pay some or all of the costs. One example of this would be a Veterans Affairs loan.

Some lenders actually offer mortgages with no closing costs. However, it?s important that homebuyers recognize that these costs will likely be built into the mortgage itself. Either the buyer or seller will pay these fees eventually.

Closing costs can significantly increase the amount of money required to be on hand when the purchase is finalized. Consider this example: a home sells for $250,000 with the buyer paying an initial down payment of 10% (so, $25,000). The buyer will need additional money at closing?around 5% of the purchase price, or $12,500, making the total required $37,500. The costs associated with closing increase the amount the buyer must pay at closing by almost 50% in this example!

Fortunately, lenders are required by law to provide a good-faith estimate (GFE) of these costs shortly after the loan application is submitted. Legally, the final settlement cannot stray from the GFE by more than 105%, at most. It?s still important to recognize, though, that borrowers can get an unpleasant surprise if they?re unprepared to pay at least something on closing.