first time buyer: Mortgage Rates Rise After Preapproval - 03/01/22 10:21 PM
Buyers are getting preapproved for mortgages to better compete in a fast-paced housing market and to be mortgage-ready as soon as they are ready to make an offer. However, preapproval doesn’t lock in their mortgage rate, which can continue to rise.
Some buyers are finding that after their offer is accepted, they must stretch their budgets to afford rising mortgage rates. They face the choice of reducing their homebuying budget or taking on a higher monthly mortgage payment.
In preapproval letters, the quoted mortgage rate is referred to as a “floating” rate, which can rise and fall with the market. Typically, buyers are unable … (2 comments)

first time buyer: Mortgage Rates Dip to 3.89% - 02/26/22 09:13 PM
The 30-year fixed-rate mortgage reversed course this week and decreased to an average of 3.89%, Freddie Mac reports. However, with expectations of even higher inflation on the horizon, mortgage rates likely will resume their upward trek over the coming weeks, Nadia Evangelou, senior economist and director of forecasting at the National Association of REALTORS®, notes on the association’s blog.
Despite this week’s decline, mortgage rates have risen by more than a full percentage point over the last six months, says Sam Khater, Freddie Mac’s chief economist. “Overall economic growth remains strong, but rising inflation is already impacting consumer sentiment, which has markedly … (3 comments)

first time buyer: What to Do When Your Home Appraisal Is Below Your Asking Price - 02/25/22 06:27 PM
You’re in the final stages of selling your home: it’s time for the home appraisal. But when the buyer shares the appraisal report, it shows your home value as less than your sales price. What do you do now? Learn about what could have caused the lower appraisal and your options for moving ahead with selling your house.   
Common Reasons for an Appraisal Below Contract Price
To determine the market value of your home, an appraiser considers many factors. Some of those factors, such as the condition and features or your property, you can control. Other factors, such as the home’s location and … (2 comments)

first time buyer: Starter Homes More Affordable Than Renting - 02/24/22 01:41 PM
Home prices are rapidly rising, but rental prices are as well, and at a faster pace. In more than half of the nation’s largest U.S. metros, Americans likely will find buying a starter home more affordable than renting, according to a newly released report from realtor.com®.
Median rental prices rose 19.8% year over year in January. That has outpaced monthly starter homeownership costs, despite a very competitive housing market, researchers say. For comparison, the monthly costs of buying a home with up to two bedrooms have seen an 11% year-over-year jump, according to realtor.com®. Meanwhile, apartment costs for all unit sizes continue … (0 comments)

first time buyer: Mortgage Rates Nearing 4% - 02/20/22 03:57 PM
Borrowing costs are climbing: The 30-year fixed-rate mortgage rose to a 3.92% average this week, Freddie Mac reports.
“Mortgage rates jumped again due to high inflation and stronger than expected consumer spending,” says Sam Khater, Freddie Mac’s chief economist. “The 30-year fixed-rate mortgage is nearing four percent, reaching highs we have not seen since May 2019. As rates and house prices rise, affordability has become a substantial hurdle for potential home buyers, especially as inflation threatens to place a strain on consumer budgets.”
As of now, however, the rising rates are sparking an urgency rather than a pause among house hunters, Nadia Evangelou, … (1 comments)

first time buyer: The Five Biggest Turn-Offs for Homebuyers - 02/18/22 07:28 PM
A lot of sellers don't listen to their real estate agents, so we'll tell you what your agent wants to say but can't say to you and this is it - your agent can't get you the price you want unless your home is in pristine move-in condition.
That means no sticking drawers in the kitchen. No leaning fences. No rust-stained plumbing fixtures. We could go on, but maybe we need to make it clear. If you have even one of following "turn-offs," your home won't sell.
Buyers can get instantly turned off. Here are their five biggest turn-offs:
1. Overpricing for the market
2. … (4 comments)

first time buyer: Our Progress Is Making Home Possible - 02/17/22 10:04 PM
Everything we do at Freddie Mac is in service of our mission — Making Home Possible. Our earnings, increased capital, focus on risk management and committed team served this mission and the nation well in 2021.
We interpret our mission expansively, and our financial results for the year highlight the work we're doing to meet our mission:
Enhancing liquidity within the mortgage and capital markets. Stabilizing the housing market and keeping families in their homes throughout the economic cycle. Working with an array of housing market participants to promote greater access to and supply of affordable and sustainable homes throughout the country. … (0 comments)

first time buyer: Loan Application Stop Signs - 02/16/22 07:04 PM
Once your loan application is submitted the application is reviewed “as is.”  This means the information appearing on the application is valid at the time it was completed. If things change while your loan is being processed, there can be some delays as the current information is documented and verified. To make sure your loan is processed and approved on time, avoid these actions.
Switching jobs.
One of the primary functions’ lenders perform is making sure there is enough monthly income in an account that can handle the payments. This is typically performed by reviewing copies of the most recent paycheck stubs covering … (1 comments)

first time buyer: Should Inflation Change Your Homebuying Plans? - 02/01/22 08:26 PM
Inflation has reached a 40-year high. What does that mean for you as you consider whether or not to buy a home in 2022?
You've likely noticed that life grew more expensive in 2021. A combination of government aid, demand for goods and bottlenecked supply chains has increased the cost of everyday items, including housing. This is known as inflation. When it occurs, it generally means your hard-earned dollars don't stretch quite as far as they used to.
In 2021, inflation rose to a degree last seen in the 1980s. Some of the largest and most necessary living expenses cost 7.0% more at the end … (0 comments)

first time buyer: First-time Homebuyer Guide: 10 Steps to Get You Started - 01/26/22 07:27 PM
Avoid mistakes by carefully evaluating your finances and shopping around for the right mortgage.
The first time you try something, you’re bound to make mistakes. But mistakes buying your first house can cost you dearly for years to come. Fortunately, you don’t have to go it alone. 
First-time homebuyers have access to a wide range of programs, incentives, and experts to help navigate the homebuying process. Housing counselors through the U.S. Department of Housing and Urban Development can guide you, and most state housing finance agencies offer down payment assistance and homebuyer education to help you get into your first house. 
As you get started, this step-by-step … (0 comments)

first time buyer: Rising Mortgage Rates Squeeze Both Homeowners and Buyers - 01/23/22 09:28 PM
Mortgage rates surged again this week on inflation concerns, hitting the highest point in 22 months that sent homebuyers scrambling to lock in rates.
Many homeowners, on the other hand, face a shrinking opportunity to refinance.
The rate on the 30-year fixed rate mortgage – the most common home loan for buyers – increased to 3.56% from 3.45% last week, according to Freddie Mac. That is the highest rate since the third week of March 2020. The 15-year fixed-rate mortgage, a popular refinance choice, similarly increased to 2.79% from 2.62%.
“Mortgage rates moved up again as the 10-year U.S. Treasury yield rose and financial markets … (1 comments)

first time buyer: Buyers, Sellers Change Plans as Inflation Intensifies - 01/06/22 05:26 PM
With inflation rising to its highest level in nearly 40 years, three-quarters of buyers and sellers say they are changing their plans, according to a new consumer survey of 1,500 aspiring buyers and sellers conducted by Redfin.
Twenty-nine percent of survey respondents say they are delaying buying a home due to inflation. On the other hand, about a quarter of aspiring buyers say that inflation is prompting them to accelerate plans to make a purchase in real estate, the survey shows. Ten percent of respondents say that inflation is prompting them to move up their home selling plans, 7% are delaying selling, … (0 comments)

first time buyer: Homes Still Affordable, But 'Financial Comfort Zone' Shrinking - 12/31/21 06:48 PM
Buyers who were unscathed financially by the pandemic have particularly benefited from mortgage rates under 3%. However, the surging demand for a limited supply of homes for sale has fueled higher home prices. Housing affordability has been waning as a result.
In October, monthly mortgage payments rose by 3.1% while the median family income rose by just 0.7%, according to the National Association of REALTORS®’ housing affordability index.
Still, the average wage earner can afford the typical home across the U.S., according to a new report from ATTOM Data Solutions. “But the financial comfort zone continues shrinking as home prices keep soaring and … (0 comments)

first time buyer: Can You Get a Mortgage with Bad Credit? - 12/27/21 07:48 PM
The real estate market remains hot right now, despite economic headwinds. Many people want to jump in and buy a home or upgrade their current home to a new one for good reason. Interest rates are incredibly low, so now could still be a buying opportunity, despite limited inventory and high prices in some locations.
If your credit isn’t perfect, you may wonder if anyone will approve you for a mortgage. The short answer is maybe.
You aren’t alone if you don’t have great credit. Around 15% of Americans have a credit score from 500 to 599, which is considered poor. Around 10% of … (2 comments)

first time buyer: What Role Does Housing Play in Your Health? - 12/22/21 09:29 PM
Whether you rent or own your home, where you live plays an essential role in your life. A recent study conducted by Freddie Mac suggests that housing may affect physical and mental health.
In a national online study of more than 2,000 renters and homeowners, 84% reported they believe housing influences their physical health and 83% believe housing influences their stress levels.
But what elements of housing most affect your health? And what can you do about it?
How Housing Payments Could Play a Role in Your Health
When it comes to housing, there is no one-size-fits-all approach to determining how much you should spend … (1 comments)

first time buyer: Survey: 1 in 4 Americans Severely Underestimate This Home Improvement Cost - 12/21/21 09:08 PM
With extra time spent at home during the pandemic, more Americans took an interest in fixing up or upgrading their houses. 
In fact, average household spending on home services increased to $13,140, up from $9,080 in 2019. Did this increased activity lead to more informed homeowners when it comes to home improvement costs? 
With higher demand and construction material shortages, home services pricing has been unpredictable. It’s as important as ever that homeowners know how much home renovations might cost before taking on new projects.
Failing to properly budget for home upgrades can wreak havoc on homeowners’ wallets, so we surveyed over 900 people to learn more about their outlook on home … (0 comments)

first time buyer: Aiming to buy a home in the next year? Do these 4 things - 12/19/21 07:37 PM
If you want to buy a house in the next year, be prepared to save up and act fast.
The housing market has been red hot for the past 18 months, with buyers sometimes opting to skip many of the traditional strappings of the process, such as appraisals, inspections or even seeing the house in-person before making a deal.
All-cash purchases became the norm during the pandemic, currently comprising 24% of the market, according to the National Association of Realtors. Many buyers lost out on multiple homes before finally getting a bid accepted.
Things aren’t quite as crazy as they once were, but prices remain sky-high, inventory is low, … (1 comments)

first time buyer: Why Winter Is Still a Good Time to Buy or Sell a Home - 12/17/21 12:51 PM
Whether you are looking to buy or sell your home, the winter season has its advantages.
Here are four reasons why you shouldn’t rule out buying or selling a home in the winter.
Reason No. 1: Less Inventory, Less Competition
Historically, the housing market heats up with the weather. Parents look to get settled before the start of a new school year, and the warm weather makes travelling to open houses easier. As a result, there are more homes for sale — and more buyers to compete with. In the winter, the opposite is true.
Advantage for Buyers: There are typically fewer buyers in the market, … (3 comments)

first time buyer: 4 Things You Should Know Before Making an Offer on a Home - 12/14/21 09:44 PM
Making an offer on a home is a delicate balance. By being prepared, knowing what to expect and working closely with your real estate agent, you can be confident in putting together a strong offer.
You have your heart set on buying the home, but you need to also be realistic with your budget — without putting in an offer too low for the seller to take seriously. Here are four pieces of advice to keep in mind as you get ready to make an offer.
Know Your Limit and Show You’re Serious with a Pre-Approval Letter
If are in the market to buy … (3 comments)

first time buyer: Down Payments Reach a New High - 12/08/21 10:14 PM
The national median down payment hit its highest level since at least 2005, ATTOM Data Solutions reports. The median down payment on a single-family home purchased with financing in the third quarter was $27,500. That is up 41% from $19,502 in the third quarter of 2020.
Overall, the median down payment of $27,500 represented 8% of the national median sales price for homes purchased with financing in the third quarter, up from 6.5% a year earlier.
Down payments are higher likely because home prices are higher. The National Association of REALTORS® reports that existing-home sale prices were 13% higher in October compared to … (0 comments)