How Important is Getting Pre-Approved…

In many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the amount of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search. Even if you are in a market that is not as competitive, knowing 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 as well.

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Planning to Move Up This 2017? If So, Do it Early!

Is This the Year to Move Up to Your Dream Home? If So, Do it Early | Keeping Current Matters

 

It appears that Americans are regaining faith in the U.S. economy. The following indexes have each shown a dramatic jump in consumer confidence in their latest surveys:

  1. The University of Michigan Consumer Sentiment Index
  2. National Federation of Independent Businesses’ Small Business Optimism Index
  3. CNBC All-America Economic Survey
  4. The Conference Board Consumer Confidence Survey

It usually means good news for the housing market when the country sees an optimistic future. People begin to dream again about the home their family has always wanted, and some make plans to finally make that dream come true. If you are considering moving up to your dream home, it may be better to do it earlier in the year than later. The two components of your monthly mortgage payment (home prices and interest rates) are both projected to increase as the year moves forward, and interest rates may increase rather dramatically. Here are some predictions on where rates will be by the end of the year:

HSH.com:

“We think that conforming 30-year fixed rates probably make it into the 4.625 percent to 4.75 percent range at some point during 2017 as a peak.”

Svenja Gudell, Zillow’s Chief Economist:

“I wouldn’t be surprised if the 30-year fixed mortgage rate hits 4.75 percent.”

Mark Fleming, the Chief Economist at First American:

“[I see] mortgage rates getting much closer to 5 percent at the end of next year.”

Lawrence Yun, NAR Chief Economist:

“By this time next year, expect the 30-year fixed rate to likely be in the 4.5 percent to 5 percent range.”

Bottom Line

If you are feeling good about your family’s economic future and are considering making a move to your dream home, doing it sooner rather than later makes the most sense.

 

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Actions Speaks Louder Than Words…

Actions Speaks Louder Than Words.jpg

 

We can hit you with advice and free information until your eyes and ears hurt, but we know when it comes to money most people want to see results.  If we say we’re going to hit the ground running in 2017 there is only one way to prove a statement like that; through ACTION

In our most recent blogs and videos we stressed ACTION; It’s a new year!  Go out there and get it done!  Just DO It!  Well let’s see, it’s only the 11th and already we have a CLOSING to tell you about.  The best part about this sale is the fact that we got the job done where others had given up.

Are you wondering if this is the right time to sell?  Let me tell you a story about this listing we just CLOSED today, then I’ll let you decide. This property was back and forth on the market for about 2 years.  Initial thoughts; 2 years, the problem is probably price.  You read that correctly,” the problem” was probably price.  Listen, there is always a problem.  Whether it’s life or business there is always a problem that needs to be solved and this is where a smart individual seeks the help of an EXPERT.  With this situation, the problem was price.  The seller was not getting the price they wanted.  In 2016 we spoke and put the property on the market. We received several offer’s.  Being that it needed rehab the best offer was cash deal.  After working out the terms this property was SOLD to cash investor.  This is just a taste of 2017.  We promise you this is JUST THE BEGINNING.  We strongly suggest you stay tuned!

Analysis

This market has low inventory. With current mortgage rates, and qualifying requirement being more lenient they got the price they were looking for.  The Cash Investor will renovate and HOLD the Property.

“There is always a way forward if the responsible parties are willing to act.”

― Auliq-Ice

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Home Buying… Why You Need a Professional

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Many people wonder whether they should hire a real estate professional to assist them in buying their dream home or if they should first try to do it on their own. In today’s market: you need an experienced professional!

You Need an Expert Guide if You Are Traveling a Dangerous Path

The field of real estate is loaded with land mines; you need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a home that is priced appropriately and is ready for you to move into can be tricky. An agent listens to your wants and needs, and can sift through the homes that do not fit within the parameters of your “dream home.” A great agent will also have relationships with mortgage professionals and other experts that you will need in securing your dream home.

You Need a Skilled Negotiator

In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer to the possible renegotiation of that offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes. Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.

Bottom Line

Famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.

 

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5 Reasons Why Use a Real Estate Professional

5 Reasons to Resolve to Hire a Real Estate Professional [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • As we usher in the new year, one thing is for certain… if you plan to buy or sell a house this year, you need a real estate professional on your team!
  • There are many benefits to using a local professional!
  • Pick a pro who knows your local market and can help you navigate the housing market!

 

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Should You Wait for Spring to Sell Your Home?

Start 2017 Off Right... List Your House for Sale | Keeping Current Matters

 

As we are about to bring in the New Year, families across the country will be deciding if this is the year that they will sell their current house and move into their dream home. Many will decide that it is smarter to wait until the spring “buyer’s market” to list their house. In the past, that might have made sense. However, this winter is not like recent years. The recent jump in mortgage rates has forced buyers off the fence and into the market, resulting in incredibly strong demand RIGHT NOW!! At the same time, inventory levels of homes for sale have dropped dramatically as compared to this time last year. Here is a chart showing the decrease in inventory levels by category: Start 2017 Off Right... List Your House for Sale | Keeping Current Matters

Bottom Line

Demand for your home is very strong right now while your competition (other homes for sale) is at a historically low level. If you are thinking of selling in 2017, now may be the time.

 

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Approving Qualified Tenants

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Whether you’re thinking about getting out of the rat race or you’ve already dipped your toes into the investment pool, information is a tool that you cannot afford to build a foundation without. Alongside fear, overconfidence is responsible for hindering the success of many entrepreneurs. Think about it. What keeps most people from investing or being able to bounce back from a setback? The fear of failure keeps the majority of Americans stuck in what they believe is ‘job security’, when in fact a high percentage of the population is one medical emergency away from being on the street.

So what about overconfidence? You can’t have too much confidence right? Wrong. An overconfident person that doesn’t know what they’re doing is dangerous to themselves and others.

Imagine you’re pretty good at baking some delicious chocolate chip cookies. Your cookies are so good that family, friends, and co-workers keep telling you that you could make a fortune selling them. You know your cookies are that good so one day you decide to quit your job, buy a nice little store front and sell cookies and cakes full time. Here’s the catch you never did your research.

A few months go by and you’re bleeding money by the day. When you opened your store, you didn’t realize that there were two more well-known bakeries down the block.  In addition you never learned how to properly market and promote your business.

Now it’s too late. One more bad week and you’ll be completely bankrupt. This could have all been prevented had you just took the time to take do your homework and seek the advice of one or two #experts in the field. Now let’s look at this from a #realestate perspective.

Real estate is one of the best investments you can make.  Certain gadgets, cars, and clothes are big sellers but they will always go in and out of style. People will always need a place to stay.

No one ever goes into any business venture without hitting some bumps in the road, but it’s how you maneuver the vehicle afterwards that determines how smooth the trip to your destination will be.

When it comes to being a Landlord it will be highly beneficial for you to learn from others mistakes. One of the biggest mistakes is failing to properly screen and approve qualified tenants. Trust in the fact that it is better to have no tenant then to have bad one.

Here are some great TIPS:

1.       Congratulate the prospective tenant(s). Letting them know that they beat out others and are now being given the opportunity to move forward will help them realize that this is really happening. This also gives you the opportunity to analyze their reaction to the news. I would be looking for a little excitement here. 

2.       Set the appointment as soon as possible. You don’t want them looking at other properties or thinking too much.

3.       Make the appointment at a professional setting such as an office, and tell them what they will need to have with them. This ensures that you not only have the necessary documents, but it also shows the tenants that you are a professional.

4.       Make sure all decision makers will be there. You don’t want a husband or wife calling you back later because their spouse disagrees with something. You also don’t want to have to repeat yourself or chase them down to get signatures and documentation.

5.       Do not accept personal checks. You are changing possession of a property here, you need to make sure all funds are cleared. Think about it, if you have to wait for a check to clear anything can happen and that means the deal is not closed. Cash, money order or bank check ONLY.

6.       Get picture ID. This should be obvious.  You want to make sure the person is who they are saying they are. There are people who will buy a house in your name without you even knowing about it until it’s too late. It happens more often than you would think.

The only way to lose is by doing nothing. If you align yourself with the right people and use your common sense to analyze the information you receive anything that goes wrong after that can be chalked up to learning. I hope the information provided here today has given you the thirst for knowledge that is necessary to succeed in world of real estate. I also hope you realize that this is just a small percentage of the knowledge we possess and wish to provide to you in the near future.

Contact us to get an Experts to Rent your Unit Out with any Hassle !

 

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Net Worth of a Homeowner and A Renter

Homeowner's Net Worth Is 45x Greater Than a Renter's | Keeping Current Matters

Every three years, the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400). In a Forbes article, the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts that by the end of 2016, the net worth gap will widen even further to 45 times greater. The graph below demonstrates the results of the last two Federal Reserve studies and Yun’s prediction: Homeowner's Net Worth Is 45x Greater Than a Renter's | Keeping Current Matters

Put Your Housing Cost to Work for You

As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth. Every time you pay your rent, you are contributing to your landlord’s net worth. The latest National Housing Pulse Survey from NAR reveals that 85% of consumers believe that purchasing a home is a good financial decision. Yun comments: “Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth. The simplest math shouldn’t be overlooked.”

Bottom Line

If you are interested in finding out if you could put your housing cost to work for you by purchasing a home, meet with a real estate professional in your area who can guide you through the process.

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Why You Need A Professional Real Estate Agent When Buying

Why You Should Hire a Real Estate Professional When Buying A Home! | Keeping Current Matters

 

Many people wonder whether they should hire a real estate professional to assist them in buying their dream home or if they should first try to go it on their own. In today’s market: you need an experienced professional!

You Need an Expert Guide if You Are Traveling a Dangerous Path

The field of real estate is loaded with land mines. You need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a home that is priced appropriately and ready for you to move in to can be tricky. An agent listens to your wants and needs, and can sift through the homes that do not fit within the parameters of your “dream home.” A great agent will also have relationships with mortgage professionals and other experts that you will need in securing your dream home.

You Need a Skilled Negotiator

In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible renegotiation of that offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes. Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.

Bottom Line

Famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.

www.NYREEX.com

 

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Rummy Dhanoa - Broker with New York Real Estate Experts

 

Rummy Dhanoa - Broker with New York Real Estate Experts

Qualifying for a Mortgage?

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The widespread myth that perfect credit and large down payments are necessary to buy a home are holding many potential home buyers on the sidelines. According to Ellie Mae’s latest Origination Report, the average FICO score for all closed loans in May was 724, far lower than the 750 or 800 that many buyers believe to be true. Below is a graph of the distribution of FICO scores of approved loans in May (the latest available data):
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Looking at the chart above, it becomes obvious that not only do you not need a 750+ credit score, but 54.9% of approved loans actually had a score between 600 and 749. More and more experts are speaking up about the fact that if potential buyers realized they could be approved for a mortgage with a credit score at, or above, 600, the distribution in the chart above would shift further to the left. Ellie Mae’s Vice President, Jonas Moe encouraged buyers to know their options before assuming that they do not qualify for a mortgage:
“The high median credit score is due to many millennials believing they won’t qualify with the score they have – and are therefore waiting to apply for a mortgage until they have the score they think they need.” (emphasis added)
CoreLogic’s latest MarketPulse Report agrees that the median FICO score does not always tell the whole story:
“The observed decline in originations could be a result of potential applicants being either too cautious or discouraged from applying, more so than tight underwriting as the culprit in lower mortgage activity.”
It’s not just millennials who believe high credit scores and large down payments are needed. Many current homeowners are delaying moving on to a home that better fits their current needs due to a belief that they would not qualify for a mortgage today.

So what does this all mean?

Moe put it this way:
“Many potential home buyers are ‘disqualifying’ themselves. You don’t need a 750 FICO Score and a 20% down payment to buy.”

Bottom Line

If you are one of the many Americans who has always thought homeownership was out of their reach, meet with a local real estate professional who can help you start the process of being pre-qualified to see if you are able to buy now!