Getting Pre-Approved Should Always Be Your First Step

Getting Pre-Approved Should Always Be Your First Step | Keeping Current Matters

In many markets across the country, the number of buyers searching for their dream homes greatly out numbers the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. The first step in the home buying process is to get pre-qualified or pre-approved for a mortgage… before starting your home search.

Even if you are in a market that is not as competitive, understanding your budget will give you the confidence of knowing if your dream home is within your reach.

Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you with this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:

  1. Capacity: Your current and future ability to make your payments
  2. Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
  3. Collateral: The home, or type of home, that you would like to purchase
  4. Credit: Your history of paying bills and other debts on time

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Bottom Line

Many potential home buyers overestimate the down payment and credit scores needed to qualify for a mortgage today. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so.

A Tale of Two Real Estate Markets

A Tale of Two Markets [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • A trend that has been emerging for some time now is the contrast between inventory & demand in the Premium & Luxury Markets vs. the Starter & Trade-Up Home Markets and what that’s, in turn, doing to prices!
  • Inventory continues to rise in the luxury & premium home markets which is causing prices to cool.
  • Demand continues to rise with low inventory in the starter & trade-up home markets, causing prices to rise!

Yes, Interest on Home Equity Loans is Still Deductible

Original post on the National Association of REALTORS® blog. 

There’s been confusion since the big tax law was enacted over the deductibility of interest on home equity loans. NAR has been saying that the interest is still deductible for the part of the loan that’s used for home repairs, renovations, and additions. And that’s the correct interpretation, according to the IRS. The agency confirmed that in a memo about a week and a half ago.

VRE 82 image

The part of the loan that’s used on the house to fix something or improve it remains deductible under the new tax law. Loan proceeds that are used for personal living expenses or anything not related to improving the home are not deductible.

The clarification is looked at in the latest Voice for Real Estate news video from NAR.

 

Robert Freedman

Robert Freedman is director of multimedia communications for the NATIONAL ASSOCIATION OF REALTORS®. He can be reached at rfreedman@realtors.org.

Mortgage Interest Rates Have Begun to Level Off

Mortgage Interest Rates Have Begun to Level Off | Keeping Current Matters

Whether you are a buyer searching for your first home, or a homeowner looking to move up to your next home, you should pay attention to where mortgage interest rates are heading.

Over the course of 2018, according to Freddie Mac’s Primary Mortgage Market Survey, rates have increased from 3.95% in the first week of January to 4.40% in the first week of April.

At first glance, the difference between these numbers in such a short amount of time could be concerning, but if we look at the graph below, we’ll see that rates have already started to level off and return to the mark set in February.

Mortgage Interest Rates Have Begun to Level Off | Keeping Current Matters

This is great news for anyone looking to buy a home this spring! The spring is always one of the busiest seasons for home buying, and with rates increasing even more, buyers have come off the fence to lock in great rates! This is still great advice as the experts believe that rates will continue to rise throughout the year.

Every month, Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors release their projections for where they believe mortgage rates will be in the coming months. If we take the average of what each of the four organizations is predicting for the second quarter, rates are expected to rise to about 4.48% by June.

That average climbs to 4.73% by the end of this year.

So, what does this mean?

Waiting until the end of the year to buy, with rates still projected to increase, will end up costing you more money on your monthly mortgage payment. For every $250,000 you need to borrow to purchase your dream home, you will spend $49.21 more per month, $590.52 per year, and over $17,700 by the end of your 30-year mortgage.

And that’s just the impact of your interest rate going up!

Bottom Line

If you are ready and willing to purchase a home, find out if you’re able to by sitting with a local real estate professional who can evaluate your needs and help you with next steps!

Orland Park, Illinois Real Estate and Homes For Sale

Are you looking to buy or sell a home in Orland Park? Judy Glockler has been helping clients buy or sell homes in Orland Park and the surrounding areas for four decades! Combine that with being part of the #1 Real Estate Brokerage in Orland Park in sales and volume, Coldwell Banker Residential, Judy’s knowledge of the local market goes unmatched.

Integrity, award-winning client service and truly listening to her clients and having their best interest in mind are some of the many reasons for her industry-leading high percentage of repeat clients and referrals. Mention this blog post to receive a free home warranty, at closing, as a thank you, when you work with Judy.

Call or email for more information: (708) 529-JUDY.  We look forward to the opportunity to work with you.

Click for current homes and land for sale in Orland Park.

Lockport Real Estate Market Update – March 2018

How is the Lockport, Illinois residential real estate market? Click play on the video below to learn more about the Lockport real estate market activity for March 2018.

Overall, the number of active listings is down 35% from last year and down 12% from last month. The increase of units sold increased 91% from last month! It might be a great time to sell. If you are on fence, or would like to know what your home is currently worth, go ahead and give us a call. Mortgage rates are also expected to increase, so consider that as well.

Thinking of buying or selling We are local – and based in two Coldwell Banker offices in the region.  Contact The Glockler Group – award-winning client service & expertise for over four decades.

 

Homes for Sale in Homer Glen, Illinois

Are you looking for a home in Homer Glen? We are three generations in Homer, two generations of Real Estate, putting clients’ interests first. We know the market unlike any other we’ve met. We have been working in the Homer area (back before it was Homer) since 1978! Thinking of buying or selling in Homer Glen or the surrounding areas? We look forward to the opportunity to work with you. Please call (708) 529-JUDY and see why working with The Glockler Group makes all the difference.

Click here for the most recent market update video at the time of this writing. 

Click here to see a current list of homes and land for sale in Homer Glen.

Lastly, here is our website solely focused on Homer Glen homes and land.

 

New Lenox Real Estate Market Update – March 2018

How is the New Lenox, Illinois residential real estate market? Click play on the video below to learn more about the New Lenox real estate market activity for March 2018.

Overall, the number of active listings is down 19% from last year and down 12% from last month. There is less inventory. It might be a great time to sell. If you are on fence, or would like to know what your home is currently worth, go ahead and give us a call. Mortgage rates are also expected to increase, so consider that as well.

Thinking of buying or selling We are local – and based in two Coldwell Banker offices in the region.  Contact The Glockler Group – award-winning client service & expertise for over four decades.

 

Bolingbrook Real Estate Market Update – March 2018

How is the Bolingbrook, Illinois residential real estate market? Click play on the video below to learn more about the Bolingbrook real estate market activity for March 2018.

Overall, the number of active listings is down 34% from last year and down 17% from last month. With fewer homes for sale than this time last year, it might be a great time to sell. If you are on the fence, or would like to know what your home is currently worth, go ahead and give us a call. Mortgage rates are also expected to increase, so consider that as well.

Thinking of buying or selling We are local – and based in two Coldwell Banker offices including one in Naperville.  Contact The Glockler Group – award-winning client service & expertise for over four decades.

 

Orland Park Real Estate Market Update – March 2018

How is the Orland Park, Illinois residential real estate market? Click play on the video below to learn more about the Orland Park real estate market activity for March 2018.

Overall, the number of active listings is down 29% from last year and down 7% from last month. The days on market is down from last year, a positive trend in the local inventory turn over rate. With fewer homes for sale than this time last year, it might be a great time to sell. If you are on fence, or would like to know what your home is currently worth, go ahead and give us a call. Mortgage rates are also expected to increase, so consider that as well.

Thinking of buying or selling We are local – and based in two Coldwell Banker offices including one in Orland Park.  Contact The Glockler Group – award-winning client service & expertise for over four decades.