Chris Nooney

Goldwater Bank

Archives for July 2018

What’s Ahead For Mortgage Rates This Week – July 23rd, 2018

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What's Ahead For Mortgage Rates This Week 7-23-18Last week’s scheduled economic releases included readings from the National Association of Home Builders and Commerce Department readings on housing starts and building permits issued. Weekly readings on mortgage rates and new jobless claims were also released

NAHB Housing Market Index Unchanged in July

The National Association of Home Builders Housing Market Index held steady in July despite concerns connected with tariffs on building materials. Analysts said that high demand for homes continued to fuel builder confidence in housing market conditions, but some analysts said that housing market conditions may be at or near peak.

Builder confidence in current market conditions was unchanged with a reading of 74; confidence in housing market conditions within the next six months rose two points to 75. Builder confidence in buyer traffic in new single- family developments also rose two points to 52. Any reading over 50 indicates that more builders are confident about housing market conditions than not.

Commerce Department: Housing Starts, Building Permits Fall

June housing starts fell according to the Commerce Department with 1.173 million starts on a seasonally-adjusted annual basis. Housing starts were 12.30 percent lower than downwardly-revised readings for May. Building permits issued also fell in June. 1.273 million permits were issued on a year-over-year basis as compared to May’s reading of 1.301 million permits issued year-over-year. Builders faced difficulty in producing homes at attractive pricing due to increased costs of building materials.

Builder confidence in buyer traffic in new single-family developments rose two points to an index reading of 52 in June. Summer months typically see more home buyer traffic due to school vacations providing a transitional period for families seeking new homes.

Mortgage Rates Mixed, Weekly Jobless Claims Fall

Freddie Mac reported mixed and minimal movement in mortgage rates last week. Mortgage rates for 30-year fixed rate mortgages were one basis point lower at 4.52 percent; rates for a15-year fixed rate mortgages averaged 4.00 percent which was two basis points lower. Rates for 5/1 adjustable rate mortgages averaged one basis point higher at 3.87 percent.  Discount points averaged 0.40 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell to 207,000 claims filed, which was lower than the expected reading of 224,000 new claims filed and the prior week’s reading of 215,000 new claims filed.

What’s Ahead

This week’s economic releases include readings on sales of new and pre-owned homes, housing vacancies and consumer sentiment. Weekly readings on mortgage rates and new jobless claims will also be released.

 

Home Buying: Repair Requests After A Home Inspection

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Home Buying Repair Requests After A Home InspectionThe perfect home has been found, the one in the right neighborhood with the right amount of bedrooms and bathrooms. The home inspection is complete, but a few issues have been found. At this point, a home buyer has decisions to make. 

What Repair Requests Can Be Made After a Home Inspection?

Structural defects found during a home inspection are the responsibility of the seller and must be fixed. In addition, Realtor.com states that the following must also be repaired by the seller:

  • Water penetration such as mold or wet basement/crawlspace
  • Any code and safety violations like unstable decking or missing handrails

Cosmetic issues like bold paint choices or peeling paint, nail holes, and other normal wear-and-tear are the responsibility of the buyer, not seller.

Additional Repairs To Request 

Home buyers do have the option of requesting repairs they believe are the seller’s responsibility. These often go beyond obvious structural issues like a sinking foundation or mold in the basement.

Additional repairs that home buyers may request include but are not limited to:

  • Replacing pipes with leaks
  • Replacing galvanized pipes due to lead contaminant, low water pressure, and leaks
  • Upgrading electrical wiring in a home built before 1960
  • Fixing cracked window(s)
  • Installing new HVAC and/or water heater

Sellers may be willing to replace old sewer lines known as “tar paper” pipes. These “tar paper” pipes are called Orangeburg sewer pipes and often found in older homes. On average, this older type of sewer pipe has a 50-year life span. However, as it ages, it can begin to disintegrate with tree roots penetrating the material. A home buyer can hire a plumbing professional who specializes in sewer pipes to inspect the system as part of the overall home inspection.

There may be additional issues that the seller is not required to fix, but that leave the buyer unhappy. When this happens, it can be possible for the buyer to request a repair credit be added to the final contract. Typically, this works best when the repair or issue has a potential cost of more than $500. 

Qualified Home Inspection

Repair requests made by the home buyer, whether major or minor, usually are more credible when done in conjunction with a qualified home inspection. Not every state requires home inspectors to have specific certifications or even licensing, so it’s essential to work with real estate agent to select a qualified professional. A qualified and independent home inspector is the buyer’s responsibility. This inspector should have established credentials and belong to trade association, versus a friend or family member that “knows houses”. 

Home buying can be an overwhelming experience, but knowing which repairs to request the seller to fix after the home inspection, is one less item to worry about. Timely and open communication with your trusted mortgage professional throughout the process can help to ensure a smooth and successful home buying experience.

Surprising Things That Can Derail A Closing

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Surprising Things That Can Derail A ClosingOnce you and the seller have negotiated an offer and you’ve been pre-approved for a mortgage, you might think that you are in the clear as far as your closing goes. However, that is not always the case. Many surprising things can put a halt to closing. Some may ultimately stop the closing altogether while others could simply cause a delay.

Here are a few unexpected things that can derail a real estate closing:

A Job Promotion 

While you might know that changing employers is one way to interfere with the closing, another deal-breaker can be switching positions with your current employer. If you are a salaried employee and switch to a non-salary commission job, for instance, you could be looking at a problem when it comes to closing on a house.

Whenever you have any change in employment, even if it is with the same employer, most lenders will require a two-year history. A new job title could be a problem at closing — even if the new position pays more money. In some cases, the lender might not be able to include the income from your new job. If so, you could quickly end up not being qualified for the loan.

Therefore, it’s best to avoid any change in employment until after closing even if it is with the same company. Talk with your mortgage finance professional regarding your personal circumstances before making any employment changes.

Last-Minute Requests for Documents

It is easy to assume that lenders will already have all the documents that they need by closing, but that is not necessarily the case. Lenders can become overwhelmed with work, especially during a hot real estate market. Lenders will sometimes realize that they need more information last-minute.

They might ask for a canceled check, copies of your rental agreement, current pay stubs or other items. If you don’t have the documentation handy, it could cause your closing to be delayed or even completely canceled if you can’t produce the requested information.

To avoid this situation, make sure that you consistently communicate with your lender throughout the loan process. 

A Delayed Transfer 

You will most likely need cash at closing. If you are relying on your bank to transfer funds right before closing, then you might be shocked if the transfer falls through at the last minute. Bugs in the bank’s system or other issues could affect the transmission.

Therefore, make sure you time your transfer to reach you or your closing agent a couple of days before closing. 

Closing on a mortgage is something that you don’t want to derail. Avoiding the above mistakes will help ensure a hassle-free closing transaction. 

From pre-approval to closing, remember that you can count on your trusted mortgage professional to remain committed to your success throughout the entire home buying process. 

Backyard Farming: Fad Or The New Future

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Backyard Farming: Fad Or The New Future

While a kitchen herb garden or pot-grown tomatoes may be commonplace in both suburban backyards and on urban condo patios, an increasingly large number of homeowners look to backyard farming as a way to relieve some of the stresses of modern life. Other benefits include cutting grocery bills, living a more sustainable life, and teaching children about food.

The New Food Landscape 

Do new trends signal a return to simpler times, or are they a pushback against higher food prices and loss of control over the food supply? Is it a lasting change that will spread across the country or a trendy, elitist phenomenon?

The answers may not be simple, but a huge increase in the popularity of farmers’ markets and community gardens leads some analysts to predict that a major change in attitude as well as lifestyle is taking place in American neighborhoods.

There is evidence that family health and nutrition improve when access to gardens and fresh food is made easier. It is as true in affluent neighborhoods as it is in disadvantaged communities.

In cities as diverse as Seattle, Boston and Fort Worth, Texas, community groups and activist neighborhoods have developed community gardens. Some of the more innovative offer food free for the taking to anyone in need. Seattle boasts more than one edible park, meant to help eliminate the city’s food deserts. Numerous community gardens throughout the Dallas-Fort Worth metroplex encourage pick-your-own plots that are open to all.

Growing Food for Personal Consumption

For homeowners who want to grow their own fresh produce and salad greens, the way forward is not always as easy. Zoning stipulations and HOA regulations sometimes specify that food plants are unauthorized landscaping elements. The times, however, have begun to change in many communities. 

New subdivisions in some cities offer community gardens for homeowners that are every bit as popular as community pools and clubhouses. They exist in million-dollar neighborhoods as well as more modest surroundings. Other cities allow some types of food gardens while discouraging plants like corn. Still others allow edible plants only behind a backyard fence.

The Future Of A Backyard Farm

The movement goes beyond growing edible plants, however. Keeping chickens and even goats is allowed by some municipalities, and urban farmers experience success with soil-free growing methods, including aquaponics, hydroponics and aeroponics.

While these alternative methods are usually found under roof, some aquaponics systems — which incorporate growing fish and plants together in a closed loop system — thrive in simple outdoor hoop-house structures. The growth of food-based “cottage businesses” is also worth watching. 

In short, as huge farms disappear from the scene, smaller home-based farms may take their place, not only in the Midwest, but in cities large and small from coast to coast.

If you are in the market for a new home with a garden-friendly yard, contact your trusted mortgage professional to get pre-approved today!

 

5 Critical Tips For Buying In A Seller’s Market

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5 Critical Tips For Buying In A Seller's MarketThis summer, quality homes are being scooped up almost as fast as they’re being listed – and for top price. Yes, it’s a seller’s market out there, which is great news if you’re planning to list your home. For those looking for a home, the competitiveness can be frustrating and aggravating.

Frustrating as it may be, there’s plenty of reason for buyers to stick it out until their offer is accepted. For starters, interest rates are still fairly low. And secondly, there are great homes out there if you act fast enough.

How can you successfully get that dream home in a seller’s market? Here are some top tips:

Stay Dedicated

Make sure that you and your Realtor are on the same page with your must-haves for your new home. Then, make sure you check for new listings daily. If any look good, make an appointment to see it that day. Don’t wait, or it will likely be gone. It can be tempting to make an offer based on listing photos alone, but be very wary of doing this. Go out and see it – and do it quickly.

Start With Your Best Offer

With some good properties gone in a matter of hours, this is no time to nickle and dime a seller. What’s more is that the seller will be unlikely to even entertain the offer and counter it. The best practice in competitive times is to start with your very best offer on the property and give the seller something to seriously consider. Chances are your offer isn’t the only one they’ll be receiving. You want it to make an impression.

Include A Personal Note

Even though they’re essentially getting rid of their property, sellers often like to work with a buyer who is going to appreciate and care for the home they’re purchasing. That’s where a personal note included with your offer to the seller can come in handy. In your note, talk about the things you love about the home and how you know it will be the perfect fit for you and your family. You can even up the ante and include a family photo. 

Make A Significant Earnest Money Deposit

Generally speaking, the larger your earnest money deposit, the more serious of a buyer you are. In a seller’s market, you will want to look for any competitive advantage over the others that are likely to make an offer on a particular property. A big deposit can serve as that advantage.

Stay Patient

Like we said in the opening, a seller’s market can be frustrating for buyers – so try to stay patient. The right home is out there for you, and good things come to those who wait. 

Contact your trusted mortgage professional to get your pre-approval today.

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