Sellers Meet the Borrowers of the Future

Who Is The Borrower of the Future? If you think today’s homebuyers looks 

like past generations, you haven’t been looking closely. As we wrap up National Homeownership Month, what better time to look at the future of homeownership.

Financial, demographic,technological and cultural forces are dramatically reshaping how people think of themselves, their family and their future. And yet, in the face of these changes, the idea of the American Dream persists: Opportunity. Independence. Prosperity. Pride.

For many, one thing above all symbolizes the American Dream: owning a home. Falling Mortgage Rates Offer Affordability Relief

To best serve the next generation of homeowners — the Borrower of the Future — we're delving into the data and studying the characteristics of different demographics and generations, their views of homeownership and the impact of the technology and innovation.

So, what does the research say?
 People are staying at home: With more Millennials now living with their parents than with a spouse, they represent a reservoir of pent-up demand for housing. And although some boomers are downsizing for economic reasons or moving to be closer to family, many are choosing to 'age in place.'

• The make–up of the U.S. is changing: America is on track to become a 'majority–minority' country. This demographic shift will result in Hispanic Americans making up 50% of first–time homebuyers by 2020. And multi–generational household trends are increasing, with children, parents and grandparents living under one roof. 

• Work is more mobile: The digital age has allowed for work to be done from anywhere. And moreAmericans today work two or three different jobs, versus being full–time, salaried employees. By the year 2020, it's estimated that 43% of all workers will be freelancers, either by choice or because of new business models. 

•  We're sharing more: From hailing an Uber ride to booking a room through Airbnb, the sharing economy is altering our view of our most valuable assets. Homes have become a way to generate income for some.

It's clear that the Borrower of the Future is evolving, which is why we're focused on reimagining together to make home possible for generations to come. Through our research and industry collaborations, we're addressing the industry's need to evolve to efficiently and effectively to address new market realities.

Ready to Sell or Buy now is the Time, We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 

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Salt Lake City, Utah: 26 days on Market

The median listing price for homes nationwide reached an all-time record  

in June. List prices soared to a median of $299,000 this month, as a shortage of homes for sale and high buyer demand continued to push asking prices higher.

“Limited options, fast-selling properties, and escalating home prices have been a persistent challenge for would-be buyers,” in its June 2018 monthly housing trend report.

On average, homes sold in 54 days in June. Inventories increased 4 percent month over month, which is a typical seasonal increase, the report notes. On an annual basis, however, inventory is 4 percent lower.

Of the 100 largest markets, the following six saw listings spend 30 days or less on the market on average:

• San Jose-Sunnyvale-Santa Clara, Calif.: 23 days on market
• Seattle-Tacoma-Bellevue, Wash.: 24 days on market
• San Francisco-Oakland-Hayward, Calif.: 25 days on market
• Omaha-Council Bluffs, Neb.: 26 days on market
• Salt Lake City, Utah: 26 days on market
• Colorado Springs, Colo.: 30 days on market

“The pace of sales in the early days of summer continues to be as fierce and unforgiving as it's ever been, especially for entry-level buyers.”

“On the bright side, buyers saw more new listings hit the market than they saw last June, causing inventory to at a slower rate.

However, much of the new inventory is composed of higher-priced, newer and larger homes, forcing a very hungry pool of buyers to adjust their budgets.”

Ready to Sell or Buy now is the Time, We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 

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Buyer Demand Hasn’t Slowed

Spring Season ‘Unmet Expectations’ However, buyer demand hasn’t 

slowed, which is evident in quicker sales and strong price growth, Yun says. The troubling reality is that gains in home prices and housing inventory has fallen for 36 consecutive months, and listings typically go under contract in just over three weeks.

As the housing markets continued to remain highly competitive and fast-moving, but without 'enough new and existing inventory for sale, activity has essentially stalled.'

'With the cost of buying a home getting more expensive, it's clear the summer months will be a true test for the housing market.

One encouraging sign has been the increase in new home construction to a 10-year high,' Yun said.

For the fifth consecutive month, pending home sales dropped in May—a sign that the recently ended spring buying season didn’t live up to the hype typical for real estate’s traditionally busiest time of year.

Contract signings also eased last month, and a significant sales decline in the South offset gains in other regions of the country.

The index is down 2.2 percent on an annual basis. This year’s spring buying season will be remembered as one of “unmet expectations,” with pending home sales at the second lowest level in the past year.

He says inventory shortage is the main culprit, “In most of the country continue to their markets as highly competitive and fast-moving, but without enough new and existing inventory for sale, activity has essentially stalled.” .

In this video, Yun talks about all the other factors that affected home sales and the regions most impacted by them:

“Several would-be buyers this spring were kept out of the market because of supply and affordability constraints.

The healthy economy and job market should keep many of them actively looking to buy, and any rise in inventory would certainly help them find a home.”

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 

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Mid-year snapshot of the Housing Market in 2018

Looking at the second half of the year, The balance of 2018 looked like a mixed bag. “The triple problems of limited inventory, home price appreciation, and rising rates are likely to keep existing home sales from being as strong as they should be,” he said. 

“Prices are going to continue to rise as are interest rates.”

Carrington projected the 30-year fixed-rate loan rates to end 2018 at 5 percent and home prices to rise 5-6 percent by the end of the year. While the forecast projected existing home sales to end the year at around 5.5 million, it said that new home sales would end at around 650,000.

Looking at the foreclosure market, the remnants of the foreclosure crisis were concentrated in a few states and fewer foreclosures were going to REO. Looking at the rest of the year, the market could end the year with historically low levels of mortgage delinquencies.

“However we need to make sure that lenders don’t get out over their schemes again as it becomes more and more challenging to write loans in a relatively low refi market,” he cautioned. “It’s worth keeping an eye on the FHA portfolio also as their delinquency rates have gone up a bit even though they are at the low end of their historic rates.”

And even though market indicators did show signs of heating up, looking at all indicators as a whole, a bubble doesn’t seem to be a possibility. Affordability too was better than it looked, though it was weakened.

Here's a Snapshot of Mortgage Rate Performance as well, Mortgage rates saw a steady rise in May according to the latest monthly mortgage data published by the Federal Housing Finance Agency 

It also provides information on 15-year and 30-year fixed-rate loans as well as Adjustable Rate Mortgages (ARMs). Additionally, the survey provides quarterly information on conventional loans by major metropolitan area and by Federal Home Loan Bank district.

The data indicated that nationally, interest rates on conventional purchase-money mortgages increased from April to May, led by the national average contract mortgage rate for the purchase of previously occupied homes by combined lender index closing six basis points up to 4.57 percent for loans closed in May, from 4.51 percent in April.

For conventional loans with 30-year fixed-rate mortgages of $453,100 or less, the average interest rates rose seven basis points to 4.71 percent from 4.64 percent in April, while the effective interest rate on all mortgage loans was 4.66 percent in May up three basis points from 4.63 percent in April. According to the FHFA, the effective interest rate accounts for the addition if initial fees and charges over the life of the mortgage.

The effect of rising home prices was evident in the loan amounts taken in May. According to the FHFA, the average loan amount for all loans was $322,100, up $9,200 from $312,900 in April 2018

We realize the decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested in a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today. 


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Outdoor projects can help boost a Home’s Value

BBQs, pools, fire pits and other features are often associated with double-digit price premiums. Outdoor projects can help boost a home’s value by up to 10 percent.

Outdoor showers, barbecue stations, entertainment pools, and firepits are the top projects that researchers found with the biggest potential increases to a home’s price.

Things to Do in Salt Lake

There are two main factors involved in planning the perfect trip: making sure everyone has fun and experiencing things you don't experience every day. Luckily, there's so much to see and do in Salt Lake, the hardest part about planning your trip will be narrowing down your options, which range from the weird and unusual to the beautiful and exhilarating.

For its research, analyzed listings at its site for summer-related outdoor features in single-family homes listed for $150,000 or more.

An outdoor shower offers the biggest return on investment, according to research. Researchers found that homes with outside bathing areas had a 97 percent price-per-square-foot premium. They speculate that such a feature may be appealing since it’s usually found in homes that are near a beach or an expensive property with other luxury amenities.

Researchers also found that homes with barbecue stations are 26 percent more expensive than those without. 

America loves barbecuing

Summer and barbecuing go hand-in-hand, so it’s no surprise that the most popular summer-fun listing feature is barbecue (and other variants). It occurs in nearly 9.6% of listings on average, topping out in Arizona where it appears in 15.8% of active listings. California follows at 9.5% with the remaining states in the top 10 each having a proportion between 3-6% of listings that mention barbecue.

Buyers in just about every state can expect to pay more for homes with this feature, with Utah homes mentioning BBQ costing 58% more per square foot than the typical home in the state. Even with the prevalence of BBQ-related listings in Arizona, these homes add 33% to the price of the homes per square foot.

Also, entertainment pools—with enough space around them for others to lounge—could give a home a 26 percent increase in its value. In New York state, homes with such entertainment pools were 224 percent pricier per square foot than those without.

Firepits and backyard fireplaces are also proving to be a hot way for homeowners to boost their home prices. Homes with firepits or backyard fireplaces had a 25 percent premium, according to researchers.“Outdoor features can give a home a special quality in the market,” 

“And anytime you have a unique feature, it can bolster the prospective value of a home.”

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 


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Where are Homeowners Spending the Most

Renting or Buying, According to forecast, the first of the year has been fraught with

weaker affordability, though higher mortgage rates and home prices, as well as low levels of new and existing homes for sale. “This, in turn, has kept the sales growth in check despite the fact that the healthy economy is generating solid levels of demand,” the study found.

The share of income needed for monthly mortgage payments on the median U.S. home increased to 17.1 percent from Q4 of 2017 and compares to 2009's 17.5 percent in the year's second quarter.

“Back then, the trend was different.”  “Mortgages were becoming more affordable as home prices and interest rates fell in tandem during the early years of the recession, well after the share of income needed to afford the typical home peaked at 25.4 percent in 2006 during the height of the bubble.”

 “The affordability edge has worn so thin in nine of the 35 largest housing markets that mortgage payments are now a bigger financial burden than they were historically.”

While rising mortgage rates are one of the key factors to affect total originations, the ongoing housing supply crunch is the other headwind that’s affecting not only homebuyers but the mortgage market also.

“If mortgage rates reach 5 percent next year, as many economists expect,”  “home shoppers in an additional seven markets would face greater mortgage burdens than buyers did historically.”

Following the most recent trends involving least affordable markets, the West Coast leads the pack in burdened households. In the Bay Area, the least affordable metro in Q1, homeowners, and renters in Q1 paid as much as 68 percent of their income towards household expenses; and in San Jose, mortgage holders paid 51 percent towards mortgage payments. 

That's high even for San Jose, where the historical average is around 35 percent.

The issue stems from the one-two punch of rising mortgage rates and continuing home value appreciation. But,  “mortgage rates and housing costs represent one side of the affordability coin; income is the other.”

Times are even harder for renters. The typical renter paid 28.8 percent of U.S. median income in the first quarter. That's up from 26 percent between 1985 and 2000, but down from a peak of about 30 percent in the second quarter of 2015.

Despite a low season in the first half of the year, the Freddie Mac forecast predicts an increase of 2.8 percent in home sales by the end of the year, whereas home price appreciation is likely to end the year at 6.6 percent.

Homeowners have come out winners in this tough, competitive market “Rising home values continue to build [homeowners’] household wealth, and those who decided to sell likely found a buyer very quickly.” 

“Meanwhile prospective buyers are active and looking in most markets but supply is low, competition is swift and higher mortgage rates and home prices are squeezing the budget of some prospective buyers.”

The forecast revealed that supply and demand imbalances are keeping home sales in check and causing prices to increase at a swift pace. In the meantime, mortgage rates expected to touch 4.9 percent by the end of 2018, the forecast projected.  

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 


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2018 Best States for Homeowners Utah ranks 2

What makes a state great for homeowners? Home price growth as well as affordability, and low foreclosures, property taxes, closing costs, and low burglary rates are among the characteristics that make homeownership an attractive investment. 

To find all of that, you may want to look in the Midwest, according to the analysis. But Western regions also hold quite a few spots on the list this year. Check out which states landed at the top of the list:

Good investments – Even states which ranked poorly tended to have some home value growth. The only state which did not show any growth in home values from 2016 to 2017 was Alaska, where home values decreased by 0.4

Midwest and West on top – All the states in our top 10 are either in the West or the Midwest. Midwest states tend to be more affordable while home values are on the rise in Western states.

But the benefits to home ownership are different based on which state you live. Some states have seen fast-growing home values while others offer affordable mortgages, thanks to low property tax rates. 

In order to find the best states for homeowners, we looked at nine metrics. Specifically we looked at average price per square foot, the one-year percent change in value per square foot, foreclosures per 10,000 homes, average effective property tax rate, median annual property taxes, average closing costs, average homeowners insurance and the burglary rate. 

Utah
The median home in Utah has a value of $205 per square foot. That is the sixth-most in the study. You can probably expect that number to continue rising as well. From 2016 to 2017 that figure grew by 9.4%, a top 5 rate. One cost that new homebuyers may overlook is closing costs. 

That isn’t too much of a concern in Utah. Average closing costs are under $1,900, the fifth-lowest in our study.

Utah Ranks 4th 2018’s Safest States in the U.S. America,

The main concern for Utah homebuyers may be the upfront affordability. The average home in Utah is worth 3.79 times the median annual income, a below-average figure. 

Mortgage Rates Down Again This Week

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 

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Source: SmartAsset (June 21, 2018)

Sellers - Buyers Upbeat

Hopefully will lead to an increase in inventory and more buyers,
Home prices are climbing across the country, and that has made homeowners more bullish when it comes to the prospects of selling.

Seventy-five percent of more than 2,700 households recently surveyed say it’s a good time to sell a house; 68 percent say it’s a good time to buy, according to the  second quarter Housing Opportunities and Market Experience (HOME) survey. 

“Hopefully this strong seller optimism will lead to an increase in inventory later on in the year,” says Lawrence Yun, NAR’s chief economist. 
Fifty-five percent of consumers say they believe that home prices will continue to increase in their communities over the next six months, up from the previous quarter (53 percent), according to NAR’s report.
In the second quarter, however, optimism for buying stayed stagnant. Thirty-nine percent of consumers strongly agree now is a good time to buy, while 29 percent moderately agree.

A decreasing number of renters are upbeat about buying, ping from 55 percent in the first quarter to now 49 percent in the second quarter.
Optimism for buying is highest among older buyers 65 or over, as well as those living in the South and Midwest regions, the report found. 

“Inventory remains the driving force in real estate, affecting everything from rising prices to household formation,” Yun says. “Improving supply conditions is critical to improving buyer optimism and helping to remove some of the barriers holding back potential first-time buyers.”

Overall, consumers are more optimistic about the economy. Their optimism over the economy has also helped more consumers believe that they would have an easier time to obtain a mortgage. 

Also, Homeowners and appraisers continue to close the gap between perceptions over home values in their area. Index shows that appraised values were just 0.34 percent lower than what homeowners expected in May.

A year ago, the gap between the appraiser and owner’s home price opinions was five times larger.

Still, home value perceptions vary quite a bit from city to city. “Real estate is incredibly local, from style preferences to the direction of the market—and everything in between.” 

“Our hope is that this report can help homeowners realize that national headlines don’t always apply in their community. It’s important homeowners talk to real estate experts who have experience analyzing their community when they’re thinking of selling, or utilizing their home’s equity.”

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 


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New-Home Construction Surges

Highest Level in Decade, More new homes entered the pipeline in 

May. Total housing starts increased 5 percent in May to a seasonally adjusted annual rate pace of 1.35 million units, the Commerce Department reported Tuesday. That marks the highest housing starts since July 2007.

“The West region will continue to experience an intense housing shortage, as both housing permits and housing starts fell in that region.

Sales are down 0.4 percent even though the economy is doing well.  Affordability is a big part of the problem as first-time buyers get priced out.

Broken out, single-family starts rose 3.9 percent to 939,000 units in May—the second-highest reading since the Great Recession. The multifamily sector increased 7.5 percent to 414,000 units. Single-family and multifamily production are now 9.8 percent and 13.6 percent higher, respectively, than a year ago.

“New-home construction activity soared to its highest level in over a decade, which is fantastic news as more housing inventory will be available as the year proceeds,” says Lawrence Yun, chief economist of the National Association of REALTORS®. 

“Moreover, construction and real estate industry jobs are being created and boosting the economy. [As a result,] GDP growth of 4 percent to 5 percent is possible in the second quarter.”

The Midwest saw the biggest jump in housing production last month, with combined single-family and multifamily housing starts rising 62.2 percent. Meanwhile, starts fell 0.9 percent in the South, by 4.1 percent in the West, and by 15 percent in the Northeast.

“The Midwest region experienced the biggest gain and hence the region will remain more affordable,” Yun notes. For the country as a whole, an additional 20 percent to 25 percent gain in home construction is needed to make the market more balanced.”

Housing starts will likely hit a snag in the coming weeks. Permits—a gauge of future activity—fell 4.6 percent in May to 1.3 million units. The biggest in permits was in the multifamily sector, which saw permits tumble 8.7 percent to 457,000. Single-family permits ped 2.2 percent to 844,000.

“Ongoing job creation, positive demographics, and tight existing home inventory should spur more single-family production in the months ahead,” says Robert Dietz, the National Association of Home Builders’ chief economist.

“However, the softening of single-family permits is consistent with our reports showing that builders are concerned over mounting construction costs, including the highly elevated prices of softwood lumber.”

Are you Ready? We realize the decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. 
If you’re interested in a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today. 

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Homes are Selling at Record Speed

Rising prices not with standing, homes in May sold like hotcakes, This May, all 54 metros tallied months’ supply of inventory at or less than six months—a figure indicative of a seller’s market.

Homes sat on the market an average of five more days (51) in May 2017, 12 more (58) in May 2016, and 18 more (64) in May 2015. The metros boasting the lowest DOM were San Francisco and Seattle, Washington, at 19; Denver, Colorado, at 21; and Salt Lake City, Utah, at 25.

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Crimped inventory and crushing demand from homebuyers slashed days on market (DOM) to 46, the second-lowest monthly amount in the report’s 10-year history, the report say

May sales outdid April’s by 14.5 percent; they fell 2.8 percent from May 2017. The median sales price: $251,673, up 7.8 percent from May 2017 and 2.1 percent from April of this year.

“Even with low inventory and the Federal Reserve raising interest rates, homes are going from ‘for sale’ to sold 28 percent faster than three years ago,” 

What’s more, the number of for-sale homes in May marched ahead 4 percent from April but slipped 9.5 percent from May 2017. Based on this May’s home sales rate, months’ supply of inventory stayed flat from April at 2.5 months and contracted a tad compared to 2.6 months in May 2017.

Such a sizzling market, house shoppers should plan on competing with other would-be buyers when making an offer on a property. 

“Be prepared—that’s my message to potential homebuyers in this summer selling season,” he said. “Make sure you are pre-approved with a lender, try to make a clean offer with no contingencies, and, if possible, consider offering favorable concessions to the seller such as a flexible closing date.”

We realize the decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested in a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today. 

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Am I Eligible for a VA Loan?

Millennial Buyers Love VA Loans, Millennial veterans and military members are helping fuel the resurgence of the historic VA loan program. Last year’s 700,000-plus loans were more than double the agency’s total from five years ago.

Younger buyers in particular have flocked to these government-backed mortgages during a time of tight credit and flat lining wage growth. The VA says millennials accounted for about a third of all VA loans last year.

These low-interest loans offer qualified buyers a wealth of benefits. That’s especially true for millennial borrowers, who often have dented credit or minimal savings. This $0 down payment loan program was created to help level the playing field for those who serve our country, and it’s still doing so today.

“VA loans offer an extraordinary opportunity for veterans because of lower interest rates, lower monthly payments, no or low down payments, and no private mortgage insurance.” 

Here’s a closer look at three of the big benefits that make VA loans such a good match for millennial home buyers.

1. No down payment requirement

This renowned benefit of VA loans helps veterans purchase without having to spend years saving for a down payment. When determining affordability, qualified buyers in most of the country should know that they can purchase a home for up to $424,100 before having to factor in a down payment. That ceiling is even higher in costlier housing markets.

Am I Eligible for a VA Loan?

The average VA loan last year was for about $253,000. Getting a conventional loan for that amount often requires a down payment of at least $12,000. FHA loans require at least 3.5% down. That’s no small sum in either case, particularly for younger veterans and military families.

2. No mortgage insurance

VA buyers also don’t have to pay extra each month for mortgage insurance, a common feature of low-down-payment loans. Conventional buyers typically need to pay for private mortgage insurance unless they can put down 20%. FHA loans come with both upfront and annual mortgage insurance premiums.

For example, FHA buyers shell out an additional $140 per month for mortgage insurance on a typical $200,000 loan. That extra outlay can limit your purchasing power, as well as put a hole in your monthly budget.

Most VA buyers encounter a funding fee that goes straight to the Department of Veterans Affairs. Veterans and military members can finance this cost over the life of their loan. Borrowers who receive compensation for a service-connected disability don’t pay it at all.

3. Flexible credit guidelines

VA loans were created to boost access to homeownership for veteran and military families. They’re naturally more flexible and forgiving when it comes to credit underwriting.

Lenders typically have lower credit score s for VA loans than for conventional mortgages. The average FICO score on a VA purchase last year was 50 points lower than the average conventional score.

Compared with conventional borrowers, qualified VA buyers can also bounce back faster after a bankruptcy, foreclosure, or short sale.

Despite their flexibility, VA loans have had the lowest foreclosure rate on the market for most of the past nine years. That’s due in large part to the VA’s commitment to helping veterans keep their homes.

Loan program officials can advocate on behalf of veteran homeowners and encourage lenders and mortgage servicers to offer alternatives to foreclosure.

“VA is even there to assist veterans who encounter difficulty making payments.”  “Last year, VA and servicers helped over 97,000 veterans avoid foreclosure. Using the VA program is a win for veterans, lenders, and taxpayers.”

More than seven decades after their introduction, VA loans are still making a big difference for veterans, military members, and their families.

“A home and its equity becomes the bedrock of their economic future.”  “Money that would have typically been used for the down payment is now money in their pocket—money that can be the beginning of their savings or can be used to fix up their home. 

It is a win-win for the veteran and the community where they spend that money.”

Are you Ready? We are here to help, with a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 


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Most Boring Parts of the Home-Buying

June is National Homeownership Month we're celebrating borrowers

and lenders as we reimagine themortgage experience to make homeownership possible.

That means working together with our industry partners to better understand the hopes and fears, the characteristics and challenges of current and future borrowers, with one goal in mind: to turn homebuyers' dreams into reality.

How to Deal: When all is said and done, buying a home is exciting—and a milestone to be celebrated. But if you expect each step of the process to be a thrill ride, we're here to tell you you're sorely mistaken.

In fact, between the rush of the hunt for the perfect place and the extreme satisfaction of crossing your threshold as a new homeowner, the rest of the home-buying process can be a bit of a slog.

There are many unglamorous parts of buying a home—some of which many consider downright boring. Do the words 'financial due diligence' make your eyelids feel heavy? Yeah, ours too.

But when you know what to expect and why, it’s a whole lot easier to deal. So pay attention to these three very mundane—but very important—parts of the home-buying process. We've outlined why they matter and how to get through them without losing your sanity.

1. Raising your credit score

Savvy home buyers know that a good credit score will allow them to lock in a good interest rate. But what if your credit score is in the gutter? Raising it can take some time—a year, if not more—but there are some strategies you can take to get it where it needs to be.

One of the easiest and most effective ways to bump up that credit score(besides paying all your bills on time, which you already do anyway, right?) is to avoid applying for any new credit—including personal loans, car loans or leases, and credit cards—for about one year before starting the home-buying process.

 

“Your credit gets pulled each time you apply for a loan of any type, which negatively impacts your credit score,” he says. And that can translate to a less favorable rate when it comes time to get a mortgage.

2. Securing a mortgage pre-approval

Once you’re satisfied with your credit, it’s time to shop for a mortgage lender who will ultimately help you buy a home. We won't lie: Shopping for a mortgage lender is not fun. It requires a number of steps and a lot of paperwork.

First, you’re going to want to inquire with different lenders to learn about their rates, programs, fees, and specials. You’ll also want to consider if you want to work with a mortgage broker, who will essentially shop home loans for you.

It’s important to take the time to discuss the ins and outs of the loan programs that are available, from conventional 30-year loans to adjustable-rate mortgages, to FHA loans.

Once you’ve settled on where you want your loan to come from, it’s time to get that all-important pre-approval, which is a commitment from your lender to provide you with a home loan up to a certain amount. That will set your home-buying budget, and also show sellers that you are serious about buying when it comes time to put an offer in.

But the pre-approval process takes patience.
“Lenders require a host of documents to get you fully pre-approved, and often it comes down to minutiae such as explanations of small transactions in or out of your account.” The plus side is that once you have your pre-approval, you can largely check tedious mortgage tasks off the list.

3. Reading the fine print

Spoiler alert: You are going to be bombarded with financial, legal, and technical documents during the home-buying process—and unfortunately, it’s your job to read through all of it. Even if that sounds about as exciting as trudging through 'War and Peace,' don't skimp on the time it takes to understand the contracts you're signing.
The best way to get through all the painful paperwork is to know what to expect. Here are the three most important documents that are going to come your way:

• Your offer: Once you and your real estate agent have put together an offer, you have to look over the contract and make sure its accurate. In the age of digital signature technology, buyers often click to add their initials or signature without fully reading contract documents. This is especially common for buyers who have made multiple offers, as they all start to blur together. Its important to read every document for each offer to ensure that the contracts were completed correctly, including the offer price, earnest money deposit, and any contingencies.

• Inspection report: Soffits. Fascia. Duct work. We get it, the inspection report can be a snooze. In fact, if the roof isn't falling off and the sellers are not planning to remove that orange shag carpet, then you may decide you can just ignore the whole thing. But that would be a mistake. Even if youve received a verbal update after the inspection, you should actually read the report you paid for to ensure the inspector didn't inadvertently forget to share any areas of concern.' 

• Closing documents: Get ready for a pile of closing documents about 2 inches thick. Its in your best interest to master all the intricacies of your mortgage and understand your closing fees, so make sure to look over your closing documents and have your lender explain any issues that you're concerned about so you know what you are signing.

Are you Ready, You've come to the right place, We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 
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Unlocking Homeownership

Co-Buyers Bring Big Down Payments, Co-buyers—multiple unmarried buyers listed on the sales deed—are bringing some of the highest down payments to settlement, according to ATTOM Data Solutions’ First Quarter 2018 U.S. Residential Property Loan Origination Report

“Given that median down payments rose more than four times as fast as median home prices over the past year, it’s not surprising that home buyers are increasingly getting help from co-buyers—often in exchange for a share of their home’s future equity,” says Daren Blomquist, senior vice president at ATTOM Data Solutions. 

“Homeownership rates are still hovering around historic lows—even though lenders continue to offer more low down payment options,” says Michael Micheletti, director of corporate communications at Unison, a firm that provides down payment assistance to buyers in exchange for a share of any future increase in the home’s value. “Letting people borrow more doesn’t make buying a home more accessible or affordable.

It’s not surprising that challenging markets buyers are looking at ways to increase their purchasing power, and reduce the amount of debt they are taking on. The sharing, co-buying and co-owning of a home movement will only grow as more millennials and Gen Z enter the marketplace.” 

“With interest rates rising and home price appreciation accelerating, current homeowners are increasingly turning to home equity lines of credit rather than refinances to tap their home’s equity. “Homeownership rates are still hovering around historic lows

Given that median down payments rose more than four times as fast as median home prices over the past year, it’s not surprising that homebuyers are increasingly getting help from co-buyers — often in exchange for a share of their home’s future equity.”

Click on picture to see what areas are using this method 

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 

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Home Embodies the American dream

Why is homeownership so important for America's families? It's simple. 

It provides an opportunity to build wealth, promises independence, and instills a strong sense of pride. 
For many, buying a home embodies the American dream.

You've worked hard, saved your hard-earned dollars, and built — and sustained — good credit to buy your home, one of the biggest investments you'll ever make. It's a huge milestone and you should be proud.

This pride, coupled with a sense of freedom, gives you the power to make your home uniquely yours, from the outside in. Your home is your space — your private sanctuary — that should reflect your personality, barring any rules that may be set by your neighborhood's  homeowners association.

As a homeowner, you're able to create a space where you and your family feel most comfortable. Consider this:

• Have you always wanted to paint your walls the brightest, boldest shade of purple? You own your walls, go for it!
• Do you want to make your home more energy efficient? You're the homeowner, do it!
• Your 'bucket list' includes an English garden in your backyard. It's your home, build it and watch it grow!

Being the master of your own domain comes with many benefits and rewards.However, it's also important to note that owning a home comes with responsibilities that include routine maintenance and repairs that will cost you both time and money.

This maintenance and upkeep is very important as it protects the value of your investment and further contributes to your family's financial security.

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 

Fed Nudges Up Interest-Rate
Federal Reserve officials raised interest rates for the second time this year and upgraded their forecast to four total increases in 2018

“We are still in the middle innings of rising interest rates … mortgage rates will consequently continue to nudge higher,” Yun says.

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Rents Are Still Growing Much Faster Than Wages

Rental costs rose by 3.6% for the twelve months ending in May, down a tick from April’s 3.7%, the Labor Department said Tuesday. As with all economic data that speaks for big nationwide trends, there’s a lot of variation under that headline. Yearly rent growth was 4.9% in Las Vegas – and flat in Chicago, according to real estate data firm Yardi.

So far in 2018, annual increases have averaged 3.7%, while in 2017, they averaged 3.8%.
The deceleration in rental costs stems most notably from developers building lots of new housing over the past few years.

Financier Sam Zell, speaking at a conference in New York in early June, pointed to “oversupply,” and suggested that real estate investors might soon find the multifamily market “less attractive” than in recent years.

But there are some skeptics. In April, Goldman Sachs economists estimated that what some analysts are calling a “supply glut” would be easily absorbed over the coming months owing to strong demand.

What’s more, it bears repeating that 3.6% rent growth — or 3.5% or 3.4%, for that matter — isn’t exactly cheery news for American consumers. That’s because wages aren’t keeping up. They rose 2.7% in the 12 months ending May, the Labor Department said earlier this month.

In fact, once inflation is factored in, wages haven’t budged over the past year. And as the Federal Reserve gets set to raise short-term interest rates yet again and global trade skirmishes threaten to boost prices of lots of consumer goods, it’s worth keeping in mind just how strapped American households are.

Are you Ready to Stop Renting? You've come to the right place, We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 

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The Hottest Remodel of 2018

You'll Never Guess, The hottest remodeling jobs of the year aren't all about installing new kitchen cabinets or countertops, putting an eye-catching backsplash above the stove, or adding a sleek yet functional kitchen island. Instead, 2018 is all about the john.

Nearly a quarter of homeowners plan to remodel their bathrooms over the next year, according to HomeAdvisor's 2018 True Cost report. That's compared with just 15% who plan to upgrade their kitchens. (The company, a home services marketplace, surveyed more than 1,000 homeowners from March 21 to March 30. All of the participants completed home maintenance and improvement projects in the past 12 months.)

'There’s a trend of creating a spa feel in the bathroom,' says HomeAdvisor's chief economist, Brad Hunter, noting that a lot of people are deciding they don't want a tub, with some preferring a walk-in shower.

'People are putting in speakers so they can have music playing in the living room also playing in the bathroom,' he says. 'You can even have a TV built into your mirrors.”

The average bathroom remodel cost an average of $9,724. Project costs ranged from $2,500 on the low end, for refinishing existing countertops, installing new flooring and fixtures, or slapping on a new coat of paint.

Overall, homeowners spent an average $6,649 on improvements to their abodes in the past 12 months, according to the report. About two-thirds of those surveyed expect to spend the same or more over the next year.

Millennials completed the most projects over the past 12 months. That may be because they're more likely to have purchased cheaper fixer-uppers versus pricier, move-in ready abodes.

'The millennials are really starting to show up on the radar,' says Hunter. But the projects they're undertaking are a little different from those of the older generations.
'Oftentimes, they're buying a house that has some cosmetic neglect and they have to do some basic shoring up of the house,' he adds. 'They may replace a broken faucet.'

Meanwhile, baby boomers spent the most, at $7,524, followed by members of Generation X, at $6,582. As boomers get older, they're increasingly thinking about growing old in their existing homes. That means getting their abodes ready with walk-in showers, lower cabinets, and potentially even outdoor ramps in place of entryway stairs, so in the coming years they're able to stay in them rather than moving into a pricey assisted-living facility or nursing home.

'They’re getting everything working in tiptop condition so that when they’re no longer in tiptop shape, they won’t have to worry about it,' Hunter says. 'While they’re doing necessary work, they’re thinking they might as well add a grab bar or putting in a reinforcement to allow them to screw in a grab bar later.'

Homeowners are also investing in inexpensive projects such as painting the interior and exterior of their homes and putting in or upgrading their flooring. This can add to a home's value, particularly if the owners plan to put it on the market soon.

'Painting gives you a lot of bang for your buck. ... It adds to the curb appeal and the salability of a house when it looks fresh,' says Hunter. 'There's [also] a very strong return on investment when it comes to hardwood, whether it's putting in new hardwood or resurfacing hardwood. ... People categorically look at a hardwood floor and say, 'Wow, that looks beautiful.''

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866. 

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Forbes Ranks Utah County as Second Best Place

While investing in Utah County real estate seems like a no-brainer already, 

there’s now solidified proof. According to Forbes, one of America’s leading business journals, the Provo-Orem area of Utah is the second best place to invest in housing in the United States in 2018. And, within Utah County. 

2. Provo-Orem, Utah

Average home price: $266,169

3-year population growth: 7.2%

2-year job growth: 6.7%

1-year home price growth: 10%

3-year price growth forecast: 31% 

If you own a home in Utah County, one national publication says it is a good investment. The article calls the area “the sweet spot for local affordability.”

The Factors

We already knew of Utah County’s potential, of course. But did you? The full list comprises 20 locals nationwide where population, jobs and home prices are consistently growing, promising homeowners and buyers in those respective areas a decent return on their investment without outsized risk. And, as discovered by Forbes and the Local Market Monitor, Utah County just so happens to be one of the most auspicious investment hubs in the entire country.

The Proof

In the Provo-Orem area, the average home price is $266,169 while the 3-year price growth forecast is estimated to be 31%—a steady increase which denotes that now, more than ever, is the perfect time to put down roots at Utah County.

Additionally, the 3-year population growth amounts to 7.2% and the 2-year job growth is an impressive 6.7%. Utah County shows a great deal of present and future prosperity as homeowners benefit from dependent sources of income.

An Unrivaled Quality of Life

You might be asking yourself, Why is this happening in Utah County? The answer is quite simple, really. The quality of life here gives reason to the fact that people are both consistently and increasingly putting down roots in the area.

At Summit Creek, homeowners benefit from a life completely and utterly immersed in nature. Here, residents profit from the fresh mountain air, the boundless adventure that lies just beyond their doorstep, the open space and expansive land to build their dream homes. 

So, while the numbers are wholly convincing of Utah County’s investment potential, we think it’s best to see it to believe it. We’re certain you’ll never want to leave. 

The Provo-Orem was one of eight new cities to make the 20-city list this year. Only Orlando Florida came in ahead of Provo-Orem. The only other Utah area to make the list was Ogden-Clearfield.

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866.

 #RealEstateForSale #Homeownership #UtahRealEstate #Utahcounty 

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