Another Boost in Home Sales

A Welcome Sign for Housing: For the second consecutive 

month, existing-home sales rose, as three of the four major U.S. regions saw an increase in sales last month, the National Association of REALTORS® reported Wednesday.

Total existing-home sales—which are completed transactions for single-family homes, townhomes, condos, and co-ops—rose 1.9 percent from October to a seasonally adjusted rate of 5.32 million in November. Sales,however, are still down 7 percent from a year ago, NAR reports.

“The market conditions in November were mixed, with good signs of stabilizing home sales compared to recent months, though down significantly from one year ago,” says Lawrence Yun, NAR’s chief economist. “Rising inventory is clearly taming home price appreciation.”

Here’s a closer look at some of the leading indicators in existing-home sales in November:

Home prices: The median existing-home price for all housing types was $257,700 in November, up 4.2 percent from a year ago.

Inventories: Total housing inventory fell to 1.74 million in November, but is higher than the 1.67 million from a year ago. Unsold inventory is at a 3.9-month supply at the current sales pace. “A marked shift is occurring in the West region, with much lower sales and very soft price growth,” says Yun. “It is also the West region where consumers have expressed the weakest sentiment about home buying, largely due to lack of affordable housing inventory.”

Are you ready to make a move we're here to Help! Working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program. Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today

 #Mortgage #UtahRealEstate #Buying

Want a Better Credit Score?

Soon, Your Cellphone Bill Could Help, Consumers’ cellphone 

and utility payments will soon be added to one of their major credit reports, a move that will likely boost the credit scores of millions of people and increase loan approvals. Experian, one of the largest credit-reporting firms in the U.S., will start factoring in this payments information for some consumers early next year. The data will be added to Experian credit reports and the credit scores that lenders often check when deciding whether to approve applicants for loans.

The development, which marks the first time U.S. consumers will be able to provide this data for their credit reports, is the latest in a number of changes that will likely increase credit scores for consumers who have low or no scores because they have a limited history of borrowing from banks and other mainstream lenders. The move could also help subprime borrowers whose scores are currently lower than what some lenders require.

The credit-reporting industry has been changing the way it does business in response to a mix of regulatory pressure and requests from banks and other lenders that want to make more loans to a wider swath of customers. Most lenders tightened standards dramatically, and have been in intense competition for the most creditworthy borrowers ever since. And while most large banks have limited appetite for the subprime borrowers they lent to in the runup to the financial crisis, some have been eyeing customers with thin borrowing histories as a new revenue stream, a sign the lenders believe the good economy still has room to run.

For example, Fair Isaac Corp., creator of the widely used FICO credit score, is close to launching a new credit score in partnership with Experian that will factor in consumers’ history managing their checking and savings accounts, which will give a boost to most consumers who keep at least several hundred dollars in their accounts and don’t overdraw.

All three major credit reporting firms—Experian, Equifax Inc. and TransUnion—have also been removing negative information like tax liens and judgments from consumers’ credit reports, in large part to appease regulators. Some of the changes, along with the improved economy, have helped increase credit scores in the U.S.

For the latest change, Experian CEO Brian Cassin said the company was approached by large banks that are looking for data to evaluate the risk of consumers with little to no borrowing histories. Experian has been working on the new methodology for about three years.

The new service, called Experian Boost, will be used by consumers who opt in and link the bank accounts they use to pay their phone and utility providers to Experian, allowing the company to track their monthly payments. Boost will also factor in landline-phone and cable-TV accounts. It won’t track missed payments.

Experian says approximately 46 million U.S. consumers with thin credit files at the firm, defined as those that have less than five loans or other accounts, could see their credit score increase instantly after the new data is added. About 1.5 million consumers with thin Experian credit files and no credit scores could receive a score. This could improve their chances of getting credit cards, personal loans and auto loans, because paying phone and utility providers consistently could be a sign that consumers will pay other bills as well.

Experian will add the new data to its consumer credit reports, and it will be taken into account in certain FICO score calculations. Experian will do the same with certain scores created by FICO competitor VantageScore Solutions LLC.

The industry’s efforts, though, could make shaky borrowers look better than they actually are. It is unclear how borrowers with limited credit histories will perform when unemployment begins to rise.

Jeff Softley, chief revenue officer at Experian Consumer Services, the business unit that handles direct-to-consumer products, said Experian has tested the new methodology and found it accurately predicts risk. “This is about access to credit—not expansion of credit,” he said.

For decades, credit reports and scores have mostly reflected a consumer’s history of paying loans like student debt and credit cards. Federal regulators, including the Consumer Financial Protection Bureau, have looked into the impacts of adding nonloan bill payments to lenders’ underwriting processes, and members of Congress ramped up calls for consumers to gain more power over their data at credit-reporting firms after the 2017 Equifax breach, when a massive hack exposed the personal data of millions of consumers.

The credit-reporting firms have already been collecting nonloan data on consumers for years, in addition to loan data. But that payment information has been added to only a small share of credit reports.

Experian will offer the new service as an option to consumers who sign up for its credit monitoring, identity-theft protection or other free or subscription-based services. Experian will compile the data with help from financial-technology firm Finicity.

If consumers stop paying their bills for three consecutive months from the accounts linked to Experian Boost, the company will delete that account from its credit report, which could undo the credit score increase. The consumer’s score will be recalculated without the additional account, which could cause their score to drop.

Are You Ready to get Started? When you work with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.    

#Lease #UtahRealEstate #Mortgagerates #Creditscore

In 2019 Raise FHA Loan Limits

The Federal Housing Administration has announced ,Most of the 

country will see an increase to loan limits in the new year. 

The loan limit for lower-cost areas will be set at $314,827—or 65 percent of the national conforming loan limit of $484,350.

In high-cost areas, the new FHA limit for 2019 will increase to $726,525, up from $679,650. The new loan limits will take effect Jan. 1.

The FHA sets single-family forward loan limits at 115 percent of median home prices, which is subject to a ceiling on limits. For the past few years, the FHA has been increasing loan limits in a greater number of counties.

In 2016, the FHA raised loan limits for 188 counties. In 2019, 3,053 counties will see an uptick in FHA loan limits. View the FHA’s letter on 2019 forward mortgage limits.

These new loan limits will be effective for FHA loans assigned on or after January 1, 2019. Click here to read the FHA’s letter on 2019 forward mortgage limits.

We are Ready to Help! When you’re working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program.  Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today.  

#LeasePurchase #UtahRealEstate #Mortgagerates

3 Things To Know Before Applying for a Mortgage

Unless you’re sitting on a ton of cold, hard cash, you’re 

going to need a mortgage to buy a home. Unfortunately, you can’t just show up at a bank with a checkbook and a smile and get approved for a home loan—you need to qualify for a mortgage, which requires some careful planning.

So, how do you please the lending gods? It starts with arming yourself with the right knowledge about the home loan application process.

Here are three things you need to know before applying for a mortgage.

1. What is a good credit score

Ah, the all-mighty credit score. This powerful three-digit number is a key factor in whether you get approved for a mortgage. When you apply for a loan, lenders will check your score to assess whether you’re a low- or high-risk borrower. The higher your score, the better you look on paper—and the better your odds of landing a great loan. If you have a low credit score, though, you may have difficulty getting a mortgage.

Get Pre-Approved

Find a lender who can offer competitive mortgage rates and help you with pre-approval.

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 13:

So, what’s considered a good credit score in the mortgage realm? While a number of credit scores exist, the most widely used credit score is the FICO score. A perfect score is 850. However, generally a score of 760 or higher is considered excellent, meaning it will help you qualify for the best interest rate and loan terms, says Richard Redmond, mortgage broker at All California Mortgage in Larkspur and author of “Mortgages: The Insider’s Guide.”

Insider’s Guide.”

A good credit score is 700 to 759; a fair score is 650 to 699. If you have multiple blemishes on your credit history (e.g., late credit card payments, unpaid medical bills), your score could fall below 650, in which case you’ll likely get turned down for a conventional home loan—and will need to mend your credit in order to get approved (unless you qualify for a Federal Housing Administration loan, which requires only a 580 minimum credit score).

Before meeting with a mortgage lender, consumer finance analyst and credit card expert at U.S. News & World Report, recommends obtaining your credit report. You’re entitled to a free copy of your full report at AnnualCreditReport.com. Though the report does not include your score—for that, you’ll have to pay a small fee—just perusing your report will give you a ballpark idea of how you're doing by laying out any problems such as late or missing payments.

2. What down payment you need

What’s an acceptable down payment on a house? In a recent NerdWallet study, 44% of respondents said they believe you need to put 20% (or more) down to buy a home. So, if you do the math, you'd have to plunk down $50,000 on a $250,000 house. Of course, that’s a big chunk of change for many home buyers.

The good news? That 20% figure is common, but it's not set in stone. It’s the gold standard because when you put 20% down, you won't have to pay private mortgage insurance, which can add several hundred dollars a month to your house payments. Another advantage of putting down 20% upfront is that that's often the magic number you need to get a more favorable interest rate.

But, if you’re unable to make a 20% down payment, there are many lenders that will allow you to put down less cash. And there are a number of loan products that you might qualify for that require less money down. FHA loans require as little as 3.5% down. The U.S. Department of Veterans Affairs loan program gives active or retired military personnel the opportunity to purchase a home with a $0 down payment and no mortgage insurance premium. Same with USDA loans (federally backed by the U.S. Department of Agriculture Rural Development).

Another option worth pursuing is qualifying for down payment assistance. There are 2,290 programs across the country that offer financial assistance, kicking in an average of $17,766, according to one study. (You can find programs in your area on the National Council of State Housing Agencies website.) Or Call your local Real Estate Agent like Carriene Porter at Precision Realty & Assoc. LLC can give you what and where in Utah to pursue to qualifying for down payment assistance Call 801 809-9866 Today.

There are some cases, though, where you’ll have to put more than 20% down to qualify for a mortgage. A jumbo loan is a mortgage that's above the limits for government-sponsored loans. In most parts of the country, that means loans over $417,000; in areas where the cost of living is extremely high (e.g., Manhattan and San Francisco), the threshold jumps to $625,000. Since larger loans require the lender to take on more risk, jumbo loans typically require home buyers to make a bigger down payment—up to 30% for some lenders.

3. What is your DTI ratio

To get approved for a mortgage, you need a solid debt-to-income ratio. This DTI figure compares your outstanding debts (on student loans, credit cards, car loans, and more) with your income.

For example, if you make $6,000 a month but pay $500 to debts, you’d divide $500 by $6,000 to get a DTI ratio of 0.083, or 8.3%. However, that's your DTI ratio without a monthly mortgage payment. If you factor in a monthly mortgage payment of, say, $1,000 per month, your DTI ratio increases to 25%.

Lenders like this number to be low, because evidence from studies of mortgage loans shows that borrowers with a higher DTI ratio are more likely to run into trouble making monthly payments, according to the Consumer Financial Protection Bureau.

For a conventional loan, most mortgage lenders require a borrower’s DTI to be no more than 36% (although some lenders will accept up to 43%).

The good news? If you’re above the 36% ceiling, there are ways that you can lower your DTI. The easiest would be to apply for a smaller mortgage—meaning you’ll have to lower your price range. Or, if you’re not willing to budge on price, you can lower your DTI by paying off a large chunk of your debts in a lump sum.

Are you ready to make a move we're here to Help! Working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program. Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today

 #Mortgage #UtahRealEstate #Buying

So long, 2018; hello, 2019!

Making the "Right" Choice: If you are looking to buy there is 

likely more than one "right" home for you—every property will have its pros and cons. Learning how to be selective is a process. You'll need to visit a variety of homes, compare styles and neighborhoods, and note what you like and dislike about each house. Take photos of the homes you visit and keep a short list of your favorites. To maintain an objective approach, always keep your housing goals in mind, and remember that it's ok to wait until something that suits your needs comes along.

Patience is a Virtue

When you enter a home, it is important to check your emotions at the door. House hunting is an exciting process, but no matter how tempting—it isn't a good idea to make an offer on the first house you see. Most experts say you should visit and consider at least 10-20 houses in your price range. Chances are good that for any home you like, there are similar properties worth considering. Viewing multiple homes allows you to compare key features and objectively think through your decision.

Overcoming Indecision

By comparison, being hesitant can be just as problematic for your search process. Whether you are facing a tough choice between two properties, or are reluctant to make the final offer, it is common for buyers to have trouble making up their minds. If you are indecisive, have an open conversation with your real estate agent before other buyers scoop up homes that fit your needs.

Mortgage Rates Sink to Three-Month Lows

Home shoppers and refinancers saw some relief in mortgage borrowing costs this week. The 30-year fixed-rate mortgage moved to its lowest average since mid-September, Freddie Mac reports.

“While the housing market softened in response to higher rates through most of this year, the combination of a low unemployment and recent downdraft in rates should support home sales heading into the early winter months.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 13:

Timing is Everything

If you're currently renting, you should schedule your closing date so that it coincides with the end of your lease. Otherwise, you will need to be prepared to pay both rent and a mortgage. Don't sign onto a year-long lease if you are looking to purchase a home soon—and if you do plan to sign a lease, discuss your options with your landlord. They may consider a short-term lease or an escape clause. 

Are you ready to make a move we're here to Help! Working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program. Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today

#LeasePurchase #UtahRealEstate #Buying

Bidding Wars Hit 8-Year Low

Buyers Are Still Face Competition, Home buyers may be less likely 

to face a bidding war than in previous months, but that doesn’t mean they won’t be facing competition from other home shoppers. 

A new report showed that 32 percent of real estate pros say they faced one or more competing bids in November, down from 45 percent a year earlier.

That marks an all-time low in bidding wars. In October 2018, inventory was at just 4.3 percent, down from 4.4 percent last month, according to the National Association. Timing is Everything, You may have found the home of your dreams, but be prepared to fight to make it your own.

A shortage of available homes in some markets has created fierce competition for those homes that are listed for sale. Fortunately, the speed at which those homes are selling is slowing, but not by much.

Much of the competition is driven by the limited supply of houses on the market. But despite low supply and a competitive market, if you find yourself in a bidding war, you can still come out victorious. 

Finding the right home is both an exciting and painstaking process, check out these tips to help you find a property that fits your housing goals:

During the spring selling season this year, three out of four offers faced competition. But as of November, only about one out of every five offers faced competition, the lowest rate among the largest markets tracked.

A lot of people are motivated price-wise from the selling standpoint too, because they too want to get to their next location.”

Are you ready to make a move we're here to Help! Working with real estate professionals like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. 

Not quite ready to buy a home?  You may qualify for the Lease with a Right to Purchase program. Call me and I'll give you the details on how you may qualify to get into the home you want, get settled and then purchase it when you are ready! If you prefer a more personal touch, CALL 801-809-9866 today

#LeasePurchase #UtahRealEstate #Buying