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Monday, November 25, 2013
How Long Should You Expect to Close on Your Next Home?
Welcome back and joining us again is Al Ripple from Johnson Bank. Today I wanted to talk about the process from once a buyer receives an accepted offer to closing with most people wanting to know how long this process will take. Al explained that the timeframe is driven by the dates in the contract; usually that’s 30-45 days. The process is at mercy of the workload of the appraiser, having the documentation submitted and what the contract calls for.
If the borrower is well prepared, the closing process can be done within two weeks. In regards to a buyer’s interest rate being locked in, we can lock the rate in for (at the longest) 70 days. The buyer can also let the rate-lock expire and lock at a different interest rate. Al also stated that the quicker the borrow locks their interest rate, they can usually obtain a lower rate.
If you have any questions for Al, reach him at (414) 852-7022. Thanks and have a great day!
Thursday, November 7, 2013
Why Banks Ask You For So Much When Applying For a Loan
Welcome back! Today we have a guest speaker, Al Ripple from Johnson Bank to discuss financing. One of the most common questions that Al receives is “why are you asking me for so much paperwork?” This is understandable as a few years back, none of this was really necessary.
“Everything was based on your credit profile, but now the pendulum has swung back to where it was 10 years ago where you have to qualify for a loan prove it,” Al said. This has happened because everything is underwritten to the standard of an investment; lenders pool these loans and sell them into the secondary market. If you have a pool of loans that have the income, assets and credit histories documented, it shows they have the willingness to repay their obligations. Investors are only interested if the peace of mind is there. This is the reason for asking for all the paperwork; this has to be done in order to meet lending requirements.
Typical things we ask for is the most recent 30 day pay stub, past two years of W2 and most recent 60 days of bank statements. Mistakes in years past of not verifying incomes and issuing loans to people with low credit scores and caused financial catastrophe.
If you have any questions about what may be required for the loan process, reach out to Al at (414) 852-7022 or give us a call at (262) 797-6453. Thanks again and have a great day!
Wednesday, October 9, 2013
Interest Rates – How They Affect Sellers
Hello, everyone. Welcome back to my video blog! Last time we spoke, we went over the effects the recent increasing rates has on buyers. Today, let’s go over how they affect sellers. Allan Ripple from Johnson Bank is here with us as well!
Let’s recap what happens to buyers as rates increase: your buying power lessens with each percentage increase. This means homes can become less affordable and you are getting less home for your dollar. Because buyers lose power, sellers have to drop their prices.
When rates increase, we see increased activity in the short term. Buyers get off the fence and purchase the home. As rates continue to increase and they become too high, fewer buyers will be able to afford a new home. Also, most sellers are buyers as well.
If you have any questions, please give The Roth Team a call! Thanks for watching!
Tuesday, October 1, 2013
How Increasing Interest Rates Affect Buyers
Welcome back to my blog! I have Allan Ripple from Johnson Bank here with us today and I wanted to talk about the increasing interest rates and how they affect buyers.
A lot of people have asked me where interest rates are headed and I thought Allan would be the best person to help us understand.
Well, to predict where interest rates are going, it’s important to understand what is driving the interest rates. The Federal Reserve has been supporting the lending market by purchasing mortgage-backed securities. This has kept interest rates artificially low. This is known as Quantitative Easing.
Over the past couple of meetings, the Federal Reserve has hinted that they will be backing off. Since then, we have seen an increase in interest rates.
As interest rates increase, there is a scaling effect on buying power. If interest rates are at 4.5 percent, for every $100 in principal and interest payment, it gives you $19,600. If you have a principal and interest payment of $500, it gives you about $100,000.
If you have any questions, please give Mike or me a call!
Thursday, September 12, 2013
Hey, guys! Thanks for visiting my real estate blog!
Everyone always wants to know when the best time is to buy a new home. They want the best deal at the best time. Well, I have a list of five reasons why NOW is the time to buy.
1. Prices are increasing. Median prices in the greater Milwaukee have gone up in some areas as much as 10 percent and they are continuing to increase.
2. Interest rates are still historically low. Although, rates have increased by about a point, they are still lower than we could hope for! When my wife and I bought our first house, we had an option of 18.5 percent fixed rate mortgage!
3. It’s easier to get a mortgage. Banks and lenders are soliciting money for buyers to purchase a home. If you have a job, good credit score and a good down payment, you can buy a home!
4. It’s still cheaper than renting. Renting has gone sky high. That means you would be paying the same amount to rent as to buy! And if you rent you don’t get all the tax benefits as a homeowner would!
5. You aren’t competing with as many investors. When foreclosures and short sales were occurring more often, a lot of investors were involved in the market. Now, you don’t have as much of that competition.
These are five reasons you shouldn’t wait to buy a home! Please call me if you have any questions or if you are thinking about buying and selling!
Wednesday, September 4, 2013
Milwaukee Market Update August 2013
We’ve had a lot going on in our market lately. Throughout the summer you may have seen different articles in the Milwaukee Journal talking about activity in the real estate market.
In June an article titled, “Is the Buyer’s Market Ending?” was published. To answer that question, it is ending. At the time the article came out, sales were up 15 percent.
Another article came out in July talking about the increase of sale prices. Prices were up 12.3 percent from July of last year.
Then, in August, sales were up 18.7 percent and prices were up 9 percent. What does this mean?
We are seeing a shift from a buyer’s market to a seller’s market. Why is this? In 2011 we had a total inventory of around 11,380, that’s about a 10-month supply of homes. Now, though, inventory is at 8,840 with only about a 5-month supply. That’s half!
Because there are fewer homes available, it drives prices up. This is the perfect time to sell your home. The average days-on-market is only 69!
This is still a great time for buyers, though, too! Interest rates are historically low and while buyers won’t be able to negotiate as much with sellers, they can still get a fantastic price.
If you have any real estate questions or know someone who is ready to buy or sell, give me a call!
Thursday, August 8, 2013
The answer to that question lies between you and the buyer. Essentially, a home inspector has to report what they see; if what they see is a defect, they have to disclose it on the report.
Now, if it is truly a defect it has to be disclosed to not only that buyer, but any other buyer you sell your home too. So, in most instances in order to sell you will probably need to fix that defect; most buyers won’t assume that problem.
The other option besides you fixing it, is offering a credit to the buyer so they can fix it after closing. This is only an option if the buyer’s lender allows it.
What if you as a seller can’t afford to fix the defect? The Roth Team has contractors we work with; the repair would be done and we would take the money out of your closing proceeds.
Again if you have questions on inspections or anything else, feel free to give us a call. We’d love to help!
Thanks and have a great day!