The Truth About Home Loans

If you are looking to buy a home, make sure you’re not being fooled by these common lies about home loans.

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Buying in the Kalamazoo area? Click here for full MLS access

We get lots of questions and requests from our clients pertaining to all aspects of real estate. Our request today is, “Help me better understand home loans and the home loan process.”

National surveys show that there are several lies out there that people accept and believe. These include:

1. It takes an 800 FICO score to qualify for a home. You can absolutely qualify for a home if your FICO score is below 800.
2. You need to put 20% down on a home. There are programs out there that offer financing without a down payment.
3. There is a “no.” There may be a “no” today if there is some issue with your financial background, but the experts that we are going to hook you up with will walk you through exactly what you need to do to get you on the fastest path to get you qualified for a home loan. If you go through these steps, it’s not a “no.” It is simply a “when.”

It’s very important that right up front you clearly understand what type of property you are looking to buy because you have to qualify for a loan and the type of property you want to buy has to qualify for that type of loan. We want to make sure we are getting you qualified and prepared for the right kind of loan, so helping us understand exactly what you are looking for right away is very beneficial.  

No matter what position you’re in, we’ll find out what makes the most sense for you.

Your FICO score, debt-to-income ratio, career, and household income may open you up to another type of loan. These factors are going to change bi-weekly, so experts are going to walk you through where you are today and walk you through all of the different loan packages that are out there.

Some people will have no money to put down, but can afford a house payment, while others will have up to 20% or more to put down. No matter what position you’re in, the loan experts we are going to hook you up with will walk you through all of your options to figure out what is going to make the most sense for you.

If you have any questions, please don’t hesitate to reach out to us. We would be happy to help you!

What Happened in the 2016 Real Estate Market?

What happened at the end of the 2016 real estate market? I’ll give you a quick recap today, and we’ll also take a glimpse at the upcoming 2017 market.

Selling in the Kalamazoo area? Get a home value report

Buying in the Kalamazoo area? Click here for full MLS access

2016 has come to a close. As we start a new year, now is a great time to reflect on what happened in the 2016 real estate market.

A lot of things happened in our market due to the election. We expected interest rates to rise after the election results came in, and that is exactly what happened. As we enter January, rates are starting to creep up a little bit.

Those increasing rates are affecting the market already. Buyers want to go out and lock down a low rate now before rates go up even further.

As a result, November, December, and January have been incredibly busy months in the real estate market. We were writing offers, closing transactions, and selling houses on Christmas Eve and on New Year’s Eve.

We expect 2017 to be a record-breaking year.

Now that the holidays are over and things are getting back to normal, we have seen a drastic increase in market activity. Many people have reached out to us and asked for help selling their homes; the market has really picked up.

There aren’t as many buyers on the market now as there will be in the spring, but there are more buyers on the market now than we have ever seen at this time of year before.

There are not many homes for sale right now either, which is actually great news for home sellers. Since inventory is low, buyers will come look at your house for sure. Also, interest rates should continue to rise throughout 2017. If you want to sell your home to a large pool of buyers, now is a great time to list your property.

People buy and sell houses 12 months out of the year. We have shown houses in hip-deep snow. Don’t slow down just because there are a few snowflakes out there; keep going.

As I said, December of 2016 was the busiest December I have ever seen, and January is off to an incredible start. We are anticipating a record-breaking year for real estate. If you have any other questions about our upcoming market, give me a call or send me an email. I would be happy to help you!

The Drawbacks of Selling Your Own Home

It’s possible to sell your home on your own, but what should you know beforehand? Here are three things to be prepared for.

Selling in the Kalamazoo area? Get a home value report

Buying in the Kalamazoo area? Click here for full MLS access

Because the market in West Michigan is so hot right now, a lot of home sellers have been asking me whether it would be a good idea to sell their homes on their own. Can you sell your home on your own? Absolutely. But here are three things you should be prepared to do:

1. Prepare for a lot of online marketing. When we list a home, we upload that listing to approximately 1,100 different websites. Let me be clear: a posting on Craigslist and sticking a ‘for sale’ sign in front of your house will not generate enough traffic on your home. In this day and age, everybody is looking online and where they look can vary drastically. For this reason, you have to make sure that your home is listed online on a wide range of sites and that it’s presented in the best possible light.
2. Prepare to let strangers into your home. Should you let just anybody into your house? You have to determine whether these are qualified buyers who have been approved for a loan, or simply looky-loos with nothing better to do than visit your house. A lot of sellers who are working without agents have told us that many of the people who ask to look at their home have asked questions like, “Would you consider renting the property?” or, “Would you be interested in doing a lease option or land contract?” These are indications that these buyers have not gone through the process of getting a pre-qualified for a proper loan. A real estate agent will be sure to check the credentials of any buyer before they let them into your home.
3. Prepare for legal paperwork and negotiation. There is a lot of federal, state, and local documentation to take care of when selling a house. This is in addition to the proper title work that needs to be done and ensuring that all of the paperwork is properly filed at closing. It’s important to make sure that everything is disclosed and documented the right way so that in case the buyer has any problems after closing, you won’t be at any legal risk. It’s the job of a real estate agent to handle all of this so that you don’t have to.

Are you prepared to handle all of the legal paperwork on your own?

It's certainly possible to sell your home ‘for sale by owner’ but before you decide to do this, make sure you understand everything involved in a home sale transaction. Statistically, a real estate professional will be able to sell your home for more money in a quicker time frame while saving you all of the hassle in the process.

If you have any other questions about selling your home in the Kalamazoo area, don’t hesitate to reach out by phone or email. I’d be happy to help you!