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Today's Headlines - Realty Times
Posted On Tuesday, 14 December 2021 00:00 Written by
Posted On Tuesday, 14 December 2021 00:00 Written by
Posted On Monday, 13 December 2021 00:00 Written by

“The Only Bad Time to Buy Property is LATER” simplimihomes.com

You have searched for several weeks, looking for the right house to make your new home.  You finally walk through the door of the perfect house, but other people are making competitive offers to buy this same house.    How much do you offer to pay without paying too much? 

Here are five points to consider:

  1. 1. Set up your budget and stick to it.  

  2. Review your bank statements and credit card statements.  How much is your income?  What expenditures can you eliminate or replace with something less expensive?  What debts can you restructure to help your cash flow? After considering all of this, determine the maximum house payment you can comfortably afford.  How much can you comfortably pay down at closing without disturbing your emergency fund? Make allowances in your budget for repairs and unexpected events.  Stick to your limit on the maximum house payment and down payment. 

  3. 2. Study the market.  

  4. A good realtor can help with showing you what price homes are selling for in the neighborhood.  They can look back and get data showing you which neighborhoods have increased in value over the last several years.  A good realtor can show you if the rental rates have also gone up consistently in that neighborhood.   If you paid over the asking price for the house you want, how long would it take for the home’s value to appreciate enough to meet your paying price? 

  5. 3. Select a home you can gradually improve to be what you want over time.

  6. If the houses with the size and amenities you want in that neighborhood are too expensive, consider buying a home that you can improve over time. For example, you may find at a lesser price a house that has not been updated in several years. On the other hand, you might find a house that would allow you to build out the unfinished area over the garage later to get the hobby room on your wish list. 

  7. 4. Strategize to get your offer accepted by the seller.   

  8. Make sure you have a very strong preapproval letter from your lender.  Keep any contingency clauses to a minimum. Be flexible on the closing date and possession date.  Consider increasing the amount of earnest money to show the seller you are a serious buyer. 

  9. 5. Structure multiple positive exit strategies for a day in the future when you would need to sell the home or move out of the area.

  10. For example, if values in the neighborhood have consistently been going up for several years, the chances are good that you can still sell the home and make a profit when you are ready to move in a few years.   If the real estate market is not doing well one day in the future, you could rent the home to tenants and make a profit if rent rates have been steadily increasing each year.  For a third exit strategy, talk with your mortgage lender about a mortgage with a clause allowing you to sell your home one day to a buyer who could qualify with your mortgage company to assume your mortgage payments. 

You may not see clearly into the future, but you can make some educated guesses by looking at the past. If you buy a home with a comfortably affordable payment and keep a healthy emergency fund, you will enjoy living in your home and have some options if the day comes when you need to move.  

Posted On Monday, 13 December 2021 00:00 Written by

The last few days of 2021 are upon us and now we begin the final countdown to 2022. A simple checklist of tasks and items will help create a smooth transition form year to year and allow you to enjoy as much time as possible enjoying family and friends.

  1. 1. Get very clear as to your calendar. What loans are left to close, is everything complete on those files, are they scheduled to be completed, and is everyone on the same schedule?
  2. 2. When are people open and when are they closed? Never assume everyone is working the same schedule as you are, even in your own company!
  3. 3. What are your targets for events and time off? Don’t play the holidays by ear! Be aware of what you want and need to do!
  4. 4. Personally contact everyone of your unclosed pre-approvals from 2021 and find out status, update as needed, and prep them for post-holiday house hunting!
  5. 5. Use the phone, not email to connect! Make the last few days of the year very personal!

Obviously if you haven’t completed your business plan, work schedule, and marketing calendar for 2022, what are you waiting for?

2022 will be a year of HUGE adjustments for the mortgage and real estate communities. Recent events with online lenders and Realtors will significantly improve opportunities to recruit and execute in what will be a giant vacuum; but you will need a strategic plan to take advantage of these opportunities because you will need to be prepared!

Questions and comments: This email address is being protected from spambots. You need JavaScript enabled to view it.

Posted On Monday, 13 December 2021 00:00 Written by
Posted On Sunday, 12 December 2021 05:52 Written by
Posted On Friday, 10 December 2021 00:00 Written by
Posted On Friday, 10 December 2021 00:00 Written by
Posted On Thursday, 09 December 2021 10:09 Written by

Reed Headshot 2Reed is a life-long Kentuckiana resident. He graduated in three years from Indiana University’s prestigious Kelley School of Business with a Bachelor of Science in Business Management and a minor in Economics.

Swimming has been an integral part in Reed’s life since the age of 5. During his college years, he was a member of IU’s swim team and was part of the 2006 Big Ten Championship team, the first in 21 years. After college, he picked up coaching a summer league swim team until his real estate business grew to the point of having to stop. These experiences allowed him to develop a work ethic that is second to none.

Shortly after graduating college, Reed began his career in real estate in September 2007 and is licensed in both Kentucky and Indiana. As a REALTOR®, Reed has worked with developers building shopping centers in front of WalMart Supercenters throughout IN, KY, OH, and IL. This experience helped develop relationships with national retailers, as well as, many small business owners. Since joining RE/MAX FIRST Reed has enjoyed working with countless home buyers and sellers. This experience has allowed him to build numerous ongoing personal and business relationships. These relationships and experiences will enable Reed to provide the best customer service to all his past, current, and future clients.

Reed has been an active member of both SIRA and GLAR for the past several years and is serving his first term on the SIRA Board of Directors, as well as, serving on several committees including the By-Laws Committee, Chair of the GLAR Government Affairs Committee, member of the GLAR Government Affairs committee and Forms Committee. Reed has recently advanced from his real estate coaching designation to a Senior Real Estate Coach for Workman Success Systems and is currently coaching multiple clients across the United States.

Posted On Wednesday, 08 December 2021 00:00 Written by
Posted On Sunday, 05 December 2021 07:08 Written by
Posted On Wednesday, 08 December 2021 00:00 Written by
Posted On Wednesday, 08 December 2021 00:00 Written by
Posted On Monday, 06 December 2021 00:00 Written by

“Believe you can, and you are halfway there.” Anonymous

The top three hurdles mortgage customers must conquer are fixing credit issues, finding enough qualified income, and fast-tracking the funds needed to close the real estate transaction.  Time is a great healer when it comes to older derogatory credit accounts. An experienced mortgage loan officer can help find qualified income for a borrower, sometimes in the back pages of the tax return. A borrower who does not have enough funds to close the loan can get help from agencies and gifts from other people. 

Overcoming Credit Issues

Benton and Baily were disappointed that their payment would be slightly higher since the mortgage rates had gone up before they got their offer accepted on buying a home. So the answer for Benton and Bailey was to improve their credit scores.  

By paying down their credit cards to show they were using less than 30% of their revolving credit limits, their score rose enough to put them in a much better price level for their mortgage. Find more information about improving credit scores at www.myfico.com

Review your credit history at www.annualcreditreport.com and correct any errors you see on your report.  Unpaid judgments need to be satisfied before time to close on the transaction. However, collections and past due accounts do not always have to be paid right away. Consult with your mortgage officer about dealing with delinquent credit accounts on the report. 

Overcoming Lack of Funds to Close

Noah and Norah had been renting a home for over a year in a neighborhood they liked, and they enjoyed being close to family who helped them take care of their son. They made an offer to their landlord to purchase the home where they were living. The landlord accepted. 

Noah and Norah had paid off some other debt and did not have enough money to cover the down payment and closing costs.   They did not want to ask their family for a gift but got approved for down payment assistance from a HUD-approved agency in their city instead.  The down payment assistance program from the city allowed Noah and Norah to pay less than $1,000 of their own money at closing.   A great resource to find down payment assistance programs around the country is  http://downpaymentresource.com/about/leadership/ .

Gifts from family are typical sources of down payment funds for borrowers, even though gift money does not work for all loan programs.  Frequently, borrowers can get a loan secured on other assets like their 401k retirement program. Loans secured on other real estate or cash value on a life insurance policy can sometimes provide the funds needed for the borrower to get approved and closed on their mortgage. Unsecured loans are not acceptable for most mortgage programs. 

Overcoming barriers with self-employment income

On the day Mr. Palmer saw a home for sale that he knew was his forever home, he made his offer to the seller.  As a successful business owner, Mr. Palmer confidently marched into his bank to get his mortgage approved. However, he was shocked when his banker shook his head no and handed Mr. Palmer back his tax returns stating that he did not show enough qualified income after expenses were deducted. 

Mr. Palmer found an experienced mortgage loan officer who knew how to start at the back of the tax return and work forward, adding back to qualified income paper expenses like depreciation on equipment and the amount he deducted for business use of his home. In addition, mortgage programs allow certain other expenses to be added back to qualified income depending on the circumstances and the documentation supporting those circumstances. 

Find more tools and resources for overcoming common barriers to mortgage approval from the book by Jo Garner  “Choosing the Best Mortgage: The Quickest Way to the Life You Want”  on Amazon and Barnes and Noble. 

Posted On Wednesday, 08 December 2021 00:00 Written by
Posted On Wednesday, 08 December 2021 00:00 Written by
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