Things To Avoid After Applying for a Home Loan

Once you’ve applied for a mortgage to buy a home, there are some key things to keep in mind. While it’s exciting to start thinking about moving in and decorating, be careful when it comes to making any big purchases. Here are a few things you may not realize you need to avoid after applying for your home loan.

Don’t Deposit Large Sums of Cash

Lenders need to source your money, and cash isn’t easily traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.

Don’t Make Any Large Purchases

It’s not just home-related purchases that could disqualify you from your loan. Any large purchases can be red flags for lenders. People with new debt have higher debt-to-income ratios (how much debt you have compared to your monthly income). Since higher ratios make for riskier loans, borrowers may no longer qualify for their mortgage. Resist the temptation to make any large purchases, even for furniture or appliances.

Don’t Co-Sign Loans for Anyone

When you co-sign for a loan, you’re making yourself accountable for that loan’s success and repayment. With that obligation comes higher debt-to-income ratios as well. Even if you promise you won’t be the one making the payments, your lender will have to count the payments against you.

Don’t Switch Bank Accounts

Lenders need to source and track your assets. That task is much easier when there’s consistency among your accounts. Before you transfer any money, speak with your loan officer.

Don’t Apply for New Credit

It doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), it will have an impact on your FICO® score. Lower credit scores can determine your mortgage interest rate and possibly even your eligibility for approval.

Don’t Close Any Accounts

Many buyers believe having less available credit makes them less risky and more likely to be approved. This isn’t true. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those aspects of your score.

In Short, Consult an Expert

To sum it up, be upfront about any changes when talking with your lender. Blips in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. If your job or employment status has changed recently, share that with your lender as well. Ultimately, it’s best to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.

Bottom Line

You want your home purchase to go as smoothly as possible. Remember, before you make any large purchases, move your money around, or make any major life changes, be sure to consult your lender – someone who’s qualified to explain how your financial decisions may impact your home loan.

The previous blog post Things To Avoid After Applying for a Home Loan was originally published on Complete Realty Team. See more on: Complete Realty Team - Ken Mandich - Real Estate Agent ERA Sunrise Realty Website

The Average Homeowner Gained $64K in Equity over the Past Year

If you own a home, your net worth likely just got a big boost thanks to rising home equity. Equity is the current value of your home minus what you owe on the loan. And today, based on recent home price appreciation, you’re building that equity far faster than you may expect – here’s how it works.

Because there’s an ongoing imbalance between the number of homes available for sale and the number of buyers looking to make a purchase, home prices are on the rise. That means your home is worth more in today’s market because it’s in high demand. As Patrick Dodd, President and CEO of CoreLogic, explains:

“Price growth is the key ingredient for the creation of home equity wealth. . . . This has led to the largest one-year gain in average home equity wealth for owners. . . .”

Basically, because your home value has likely climbed so much, your equity has increased too. According to the latest Homeowner Equity Insights from CoreLogic, the average homeowner’s equity has grown by $64,000 over the last 12 months.

While that’s the nationwide number, if you want to know what’s happening in your area, look at the map below. It breaks down the average year-over-year equity growth for each state using the data from CoreLogic.

The Opportunity Your Rising Home Equity Provides

In addition to building your overall net worth, equity can also help you achieve other goals like buying your next home. When you sell your current house, the equity you built up comes back to you in the sale. In a market where homeowners are gaining so much equity, it may be just what you need to cover a large portion – if not all – of the down payment on your next home.

So, if you’ve been holding off on selling or you’re worried about being priced out of your next home because of today’s ongoing home price appreciation, rest assured your equity can help fuel your move.

Bottom Line

If you’re planning to make a move, the equity you’ve gained can make a big impact. To find out just how much equity you have in your current home and how you can use it to fuel your next purchase, let’s connect so you can get a professional equity assessment report on your house.

The Blog Post The Average Homeowner Gained $64K in Equity over the Past Year is available on Complete Realty Team. Learn more at: https://www.CompleteRealtyTeam.com

Why Achieving the Dream of Homeownership Can Be More Difficult for Some Americans

Today we take time to honor and recognize the past and present experiences of Black Americans. When it comes to real estate specifically, equitable access to housing has come a long way, but the path to homeownership is still steeper for households of color.

 

The Gap in Homeownership Rate in America

It’s a more challenging journey to achieve homeownership for some buyers, as shown by the measurable gap between the overall average U.S. homeownership rate and that of non-white groups. Today, Census data shows the lowest homeownership rate persists in the Black community (see graph below):

This graph clearly indicates there’s a gap that still exists in the percentage of people in each community who are able to achieve homeownership. 

How Homeownership Impacts Household Wealth 

One of the challenges that could make buying a home harder for these groups is how difficult it can be to accumulate wealth. Even today, there are obstacles certain racial and ethnic groups, especially the Black community, still face. A recent article from NextAdvisor explains:

“The median Black household earns 61 cents for every dollar earned by a comparable White household, according to the Economic Policy Institute. This not only makes it more difficult to afford a home, but also to accumulate and pass on generational wealth.”

This can delay or prevent many from achieving homeownership, challenging their ability to grow their net worth and build wealth that can pass down to future generations – a point that’s clear in a 2022 report from the National Association of Realtors (NAR):

“Given that homeownership contributes to wealth accumulation and the homeownership rate is lower in minority groups, data shows that the net worth for these groups is also lower. At $188,200, the net worth of a typical white family was nearly 8 times greater than that of a Black family ($24,100) in 2019.”

It’s important to talk about the experience Black homebuyers may have and the challenges they may face as they pursue their dream of homeownership. The inequity that remains in housing can be a point of pain and frustration. That’s why it’s so important for members of diverse groups to have the right team of experts on their sides throughout the homebuying process.

These professionals aren’t only experienced advisors who understand the market and give the best advice. They’re also compassionate allies who will advocate for your best interests every step of the way. They can point you to important resources and tools that can help you throughout your journey to homeownership.

Bottom Line

Opportunities in real estate improve every day, but there are still equity challenges that many face. Let’s connect to make sure you have an advocate on your side to help you achieve your dream of homeownership.

The previous Blog Post Why Achieving the Dream of Homeownership Can Be More Difficult for Some Americans was first published on CompleteRealtyTeam.com. Discover more on: Complete Realty Team

More Listings Are Coming onto the Market With Infographic

Great news for people that haven't been able to find a home. New listings are increasing!

Some Highlights

• Worried you won’t be able to find your next home after you sell? You should know data from realtor.com shows more listings are coming onto the market each month this year.
• Having additional options can make the search for your next home. But inventory is still low overall, which means your house should still stand out when you sell.
• If your biggest question is where you’ll go if you sell, take this as encouraging news. Let’s connect to start the process today.

The Blog Post More Listings Are Coming onto the Market With Infographic is available on Complete Realty Team. Read more at: The Company’s Website

Home Price Deceleration Doesn’t Mean Home Price Depreciation

Experts in the real estate industry use a number of terms when they talk about what's happening with home prices. And some of those words sound a bit similar but mean very different things. To help clarify what's happening with home prices and where experts say they're going, here’s a look at a few terms you may hear:

• Appreciation is when home prices increase.
• Depreciation is when home prices decrease.
• Deceleration is when home prices continue to appreciate, but at a slower pace.

Where Home Prices Have Been in Recent Years

For starters, you’ve probably heard home prices have skyrocketed over the past two years, but homes were actually appreciating long before that. You might be surprised to learn that home prices have climbed for 122 consecutive months (see graph below):

As the graph shows, houses have gained value consistently over the past 10 consecutive years. But since 2020, the increase has been more dramatic as home price growth accelerated.

So why did home prices climb so much? It’s because there were more buyers than there were homes for sale. That imbalance put upward pressure on home prices because demand was high and supply was low.

Where Experts Say Home Prices Are Going

While this is helpful context, if you’re a buyer or seller in today’s market, you probably want to know what’s going to happen with home prices moving forward. Will they continue that same growth path or will home prices fall?

Experts are forecasting ongoing appreciation, just at a decelerated pace. In other words, prices will keep climbing, just not as fast as they have been. The graph below shows home price forecasts from seven industry leaders. None are calling for prices to fall (see graph below):

Mark Fleming, Chief Economist at First American, identifies a key reason why home prices won’t depreciate or drop:

“In today’s housing market, demand for homes continues to outpace supply, which is keeping the pressure on house prices, so don’t expect house prices to decline.”

And although housing supply is starting to tick up, it’s not enough to make home prices decline because there’s still a gap between the number of homes available for sale and the volume of buyers looking to make a purchase.

Terry Loebs, Founder of the research firm Pulsenomics, notes that most real estate experts and economists anticipate home prices will continue rising. As he puts it:

“With home values at record-high levels and a vast majority of experts projecting additional price increases this year and beyond, home prices and expectations remain buoyant.”

Bottom Line

Experts forecast price deceleration, not depreciation. That means home prices will continue to rise, just at a slower pace. Let’s connect so you can get the full picture of what’s happening with home prices in our local market and to discuss your buying and selling goals.

The previous Blog Post Home Price Deceleration Doesn’t Mean Home Price Depreciation is courtesy of CompleteRealtyTeam.com. Read more on: Complete Realty Team Real Estate Site

Majority of Consumers Say It’s a Good Time To Sell Your House

If you’re a homeowner thinking about selling your house, you’re probably looking for the best time to make your move. That means you’re likely balancing a number of factors, like your changing needs, where you’ll go when you sell, and today’s mortgage rates in order to time it just right.

According to recent data, that sweet spot could already be here. The latest Home Purchase Sentiment Index (HPSI) by Fannie Mae finds that 76% of consumers believe now is a good time to sell.

The graph below shows the percentage of survey respondents who say it’s a good time to sell a house. The big dip in March and April of 2020 reflects how consumer sentiment dropped at the beginning of the pandemic as uncertainty about the health crisis grew. Since then, the percentage has grown consistently as more people feel confident it’s a good time to sell.

In fact, survey respondents think it’s an even better time to sell a house today than they did in 2019, which was a strong year for the housing market. The latest survey results indicate one of the strongest peaks in seller sentiment in nearly three years (see graph below):

 

What Makes Today a Good Time To Sell?

One reason so many people think it’s a good time to sell is because there are still more buyers in today’s market than there are homes for sale. That’s driving home prices up, making it a good time to sell your house.

And if you’re on the fence about whether or not to sell because you don’t know where you’ll go once you do, know that you might have more options today than in previous months. That’s because the number of homes coming onto the market has grown each month since the start of the year. When more homes come onto the market, it gives you more opportunities to find one that meets your changing needs.

Bottom Line

While the number of homes available for sale is growing and giving you more options for your move, inventory is still low overall. That could mean it’s a great time for you to sell. If you’re ready to address your changing needs and take advantage of today’s favorable conditions, let’s connect.

The preceding Post Majority of Consumers Say It’s a Good Time To Sell Your House is courtesy of CompleteRealtyTeam.com. See more at: https://completerealtyteam.com

Cobb County Turns To Complete Realty Team REALTORS® For All Real Estate Needs

Marietta, Georgia -

GA based Complete Realty Team has been steadily growing thanks to the uncompromising assistance they offer all of their clients. Since the firm provides a comprehensive suite of real estate services, this policy makes them highly popular in the community, especially given that their mandate is to put their clients’ interests first at all times. Those interested in working with this team of experienced, dedicated real estate agents are welcome to get in touch today to get started.

“In a nutshell, we’re who you need if what you’re looking for is the best real estate agent in the area,” says Complete Realty Team. “Our team’s first and foremost commitment is to you, and nothing will shake that as we aggressively pursue your real estate goals on your behalf. Further, we have taken on clients whose experience with the real estate industry ranges from first time homeowners to those with multiple properties, so you are in good hands no matter how well or how little you understand the process.”

In practice, this means that clients who are familiar with the demands of the real estate industry may simply elect to inform Complete Realty Team of their requirements and preferences. Aside from ongoing reports regarding the team’s progress, a client in such circumstances often need not get involved again unless unforeseen challenges require additional input or until they are ready to close. In fact, many who choose Complete Realty Team come to conduct their business this way since the firm makes it a point to swiftly assimilate their desires.

On the other hand, many will prefer to be involved at every step, particularly if they do not know how to address the many intricacies involved in real estate. First time homeowners (or sellers), for instance, may wish to have the firm’s guidance at all times, and Complete Realty Team is always pleased to oblige. Crucially, they believe that the home buying or selling process should be a fulfilling experience, and everyone is entitled to this regardless of their previous level of involvement in real estate. With this in mind, the team attempts to make every project as simple and straightforward as possible. In some cases, this may involve breaking down complex deals into a format that a client can digest more easily. Similarly, they are always encouraged to raise any questions or points of confusion with their real estate agent — the firm strongly believes in helping them make informed decisions at all times. See more here: https://sites.google.com/view/completerealtyteam/home.

A testimonial left on the firm’s Google profile serves to illustrate the quality of the service they offer each client. J. Smith gives Complete Realty Team a full 5-Star rating for their work, going on to explain that, “We chose to work with Complete Realty Team - Ken Mandich - REALTOR® - ERA Sunrise Realty again when selling our home after having a great experience with them when buying our home four years ago. The process was incredibly simple and stress-free thanks to Complete Realty Team! They made us feel at ease and confident in the process as first-time home buyers/sellers, and we couldn't recommend Complete Realty Team highly enough!’”

Complete Realty Team is led by REALTOR® Ken Mandich, a veteran of the field. His unique strengths, the firm says, play a massive role in their effectiveness. In addition to utilizing the latest technology and offering unparalleled, personalized support to their clients, the firm relies on his extensive knowledge as a digital marketer to ensure homes receive the full benefit of online marketing. Most agents rely exclusively on the MLS, Multiple Listing Services, to market their clients’ properties, but this is far from the most effective means of accomplishing this goal. Most buyers start by searching online when looking for a home, and Mandich knows how to take advantage of this.

Complete Realty Team primarily serves the communities of Cobb County, which includes Acworth, Marietta, Roswell, Fair Oaks, Smyrna and so on. Those looking to buy or sell a property may reach out to Ken Mandich or any of the other REALTORS® at Complete Team Realty to get started.

Source: Cobb County Turns To Complete Realty Team REALTORS® For All Real Estate Needs

Is the Housing Market Correcting?

If you're following the news, all of the headlines about conditions in the current housing market may leave you with more questions than answers. Is the boom over? Is the market crashing or correcting? Here’s what you need to know.

The housing market is moderating compared to the last two years, but what everyone needs to remember is that the past two years were record-breaking in nearly every way. Record-low mortgage rates and millennials reaching peak homebuying years led to an influx of buyer demand. At the same time, there weren’t enough homes available to purchase thanks to many years of underbuilding and sellers who held off on listing their homes due to the health crisis.

This combination led to record-high demand and record-low supply, and that wasn’t going to be sustainable for the long term. The latest data shows early signs of a shift back to the market pace seen in the years leading up to the pandemic – not a crash nor a correction. As realtor.com says:

“The housing market is at a turning point. . . . We’re starting to see signs of a new direction, . . .”

Home Showings Then and Now

The ShowingTime Showing Index tracks the traffic of home showings according to agents and brokers. It’s a good indication of buyer demand. Here’s a look at that data going back to 2019 (see graph below):

The 2019 numbers give a good baseline of pre-pandemic demand (shown in gray). As the graph indicates, home showings skyrocketed during the pandemic (shown in blue). And while current buyer demand has begun to moderate slightly based on the latest data (shown in green), showings are still above 2019 levels.

And since 2019 was such a strong year for the housing market, this helps show that the market isn’t crashing – it’s just at a turning point that’s moving back toward more pre-pandemic levels.

Existing Home Sales Then and Now

Headlines are also talking about how existing home sales are declining, but perspective matters. Here’s a look at existing home sales going all the way back to 2019 using data from the National Association of Realtors (NAR) (see graph below):

Again, a similar story emerges. The pandemic numbers (shown in blue) beat the more typical year of 2019 home sales (shown in gray). And according to the latest projections for 2022 (shown in green), the market is on pace to close this year with more home sales than 2019 as well.

It’s important to compare today not to the abnormal pandemic years, but to the most recent normal year to show the current housing market is still strong. First American sums it up like this:

“. . . today’s housing market looks a lot like the 2019 housing market, which was the strongest housing market in a decade at the time.”

Bottom Line

If recent headlines are generating any concerns, look at a more typical year for perspective. The current market is not a crash or correction. It’s just a turning point toward more typical, pre-pandemic levels. Let’s connect if you have any questions about our local market and what it means for you when you buy or sell this year.

The previous Article Is the Housing Market Correcting? is available on CompleteRealtyTeam.com. Find more at: http://www.completerealtyteam.com

More Americans Choose Real Estate as the Best Investment Than Ever Before

Americans’ opinion on the value of real estate as an investment is climbing. That’s according to an annual survey from Gallup. Not only is real estate viewed as the best investment for the ninth year in a row, but more Americans selected it than ever before.

The graph below shows the results of the survey since Gallup began asking the question in 2011. As the trend lines indicate, real estate has been gaining ground as the clear favorite for almost a decade now:

If you’re thinking about purchasing a home, let this poll reassure you. Even when inflation is high like today, Americans recognize owning a home is a powerful financial decision.

How an Investment in Real Estate Can Benefit You During High Inflation

Because inflation reached its highest level in 40 years recently, it’s more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board, and that includes goods, services, housing costs, and more. When you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increases on one of your biggest budgetary items each month.

If you’re a renter, you don’t have that same benefit, and you aren’t protected from these increases, especially as rents rise. As Danielle Hale, Chief Economist at realtor.com, notes:

“Rising rents, which continue to climb at double-digit pace . . . and the prospect of locking in a monthly housing cost in a market with widespread inflation are motivating today’s first-time homebuyers.”

When Inflation Has Risen in the Past, Home Prices Have Too

Your house is also an asset that typically increases in value over time, even during inflation. That‘s because as prices rise, the value of your home does too. Mark Cussen, Financial Writer for Investopedia, puts it like this:

“There are many advantages to investing in real estate. . . . It often acts as a good inflation hedge since there will always be a demand for homes, regardless of the economic climate, and because as inflation rises, so do property values. . . .”

And since rising home values help increase your equity, and by extension your net worth, homeownership is historically a good hedge against inflation.

Bottom Line

Buying a home is a powerful decision. It’s no wonder why so many people view it as the best long-term investment, even when inflation is high. When you buy, you help shield yourself from increases in your housing costs and you own an asset that typically gains value with time. If you want to better understand how buying a home could be a great investment for you, let’s connect today.

More Americans Choose Real Estate as the Best Investment Than Ever Before is available on Complete Realty Team. See more at: Complete Realty Team - Ken Mandich - Real Estate Agent ERA Sunrise

Do You Need A Real Estate Agent To Buy A Home?

Some people don't understand or trust real estate agents, or may feel that they are able to do the same job a real estate agent can do. People love or hate their real estate agent, it all depends on the successfulness of the job they do for their clients.

At times buyers and or sellers might work out well without a real estate agent, however that is not always the case. A great real estate agent can bring a multitude of usefulness to any real estate deal, but for some customers an agent is not always needed. Most customers will get more out of the transaction using a real estate agent than doing the transaction alone.

Some sellers are able to find a buyer on their own, using an agent can assist you in getting more money out of the deal. According to National Association of Realtors you can net about 22% more, depending on what the market is doing at the time of the sell.

Depending on the market you might need to be able to juggle a multiple offer situation. Be ready to handle any lawsuit that might immerge and any additional cost that might arise while closing the deal. The opposite of the multiple offer can affect you just as hard with fewer buyers and need to have the real estate agents assistance to hook a buyer.

More people buy a home using a real estate agent, about 80%, if you don't have an agent you might not been getting all the exposure you need or want. Real estate agents are experts in possessing the intimate knowledge of the area and be able to direct you according to your needs and wants. Real estate agents will know what houses are selling for in the area and make sure the price is right for you, buying or selling.  

Real estate agents can also make sure you have all the insurance information you will need. The price of insurance policy can make a huge difference. Insurance is often over looked by individuals.

There are so many more factors that real estate agents play into such as staging, networking with other agents that might have a buyer or seller that you need, pricing knowledge, marketing experience, professional photographer, reliable contractors and inspectors, negotiation experience and most importantly the ability to make sure a buyer is qualified to buy so the deal doesn't fail in the last minute.

Selling or buying a house without a real estate agent is always possible. You don't need a license to do this on your own, if you feel you are capable then you can do it. You might always that the thought "Did I get the best deal?". It is a great deal of work to do this on your own, that is what you are paying for experience and knowledge to make sure all bases are covered. 

You do not need a real estate agent to buy a house, you might benefit for having someone on your side. The benefits may outnumber the little bit of money you might save. To most people it is worth the time they save and the fact they get the house they want without as much effort as doing all that work themselves. There is a lot of paperwork and it can get complicated if you're not used to reading legal documents. 

There are different types of agents buyers agents and seller agents and they are supposed to put their client's needs first. Please make sure you have the right agent for your needs. Do some research to make sure your real estate agent will work as hard for you as they would themselves, after all you will be spending  good amount of time with them and you'll want to get along and be able to trust them. 

If you are looking for a buyer's or seller's agent, or just need some information or have questions, please feel free to reach out to me at (404) 410-6465 anytime.