Phoenix Metro Real Estate BlogRecently posted or modified blog postshttps://www.theregalteam.com/blog/Copyright TheRegalTeam.com2023-01-02T11:07:54-07:00tag:theregalteam.com,2012-09-20:23784Happy New Year!Here’s to a Wonderful 2023!
<img width="1046" height="1046" src="https://files.mykcm.com/2022/12/22114157/New-Year-Holiday-MEM-1046x1046.jpg" class="attachment-entry size-entry wp-post-image" alt="Here's to a Wonderful 2023! | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/22114157/New-Year-Holiday-MEM-1046x1046.jpg 1046w, https://files.mykcm.com/2022/12/22114157/New-Year-Holiday-MEM-600x600.jpg 600w, https://files.mykcm.com/2022/12/22114157/New-Year-Holiday-MEM-1024x1024.jpg 1024w, https://files.mykcm.com/2022/12/22114157/New-Year-Holiday-MEM-150x150.jpg 150w, https://files.mykcm.com/2022/12/22114157/New-Year-Holiday-MEM-768x768.jpg 768w, https://files.mykcm.com/2022/12/22114157/New-Year-Holiday-MEM-100x100.jpg 100w, https://files.mykcm.com/2022/12/22114157/New-Year-Holiday-MEM-45x45.jpg 45w, https://files.mykcm.com/2022/12/22114157/New-Year-Holiday-MEM.jpg 1080w" sizes="(max-width: 1046px) 100vw, 1046px" />2023-01-02T10:47:41-07:002023-01-02T11:07:54-07:00Melissa Dierkstag:theregalteam.com,2012-09-20:23294What You Want To Know If You're Pursuing Your Dream of HomeownershipWhat You Want To Know If You’re Pursuing Your Dream of Homeownership
<img width="750" height="410" src="https://files.mykcm.com/2022/11/30125538/what-you-want-to-know-if-youre-pursuing-your-dream-of-homeownership-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="What You Want To Know If You’re Pursuing Your Dream of Homeownership | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/11/30125538/what-you-want-to-know-if-youre-pursuing-your-dream-of-homeownership-KCM.jpg 750w, https://files.mykcm.com/2022/11/30125538/what-you-want-to-know-if-youre-pursuing-your-dream-of-homeownership-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/11/30125538/what-you-want-to-know-if-youre-pursuing-your-dream-of-homeownership-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re a young adult, you may be thinking about your goals and priorities for the months and years ahead. And if <a href="https://www.simplifyingthemarket.com/2022/11/08/the-majority-of-americans-still-view-homeownership-as-the-american-dream/?a=369201-384c412da9ac59223a4bb47cb598a558" title="homeownership" target="_blank" rel="noopener noreferrer">homeownership</a> ranks high on your goal sheet, you’re in good company. Many of your peers are also pursuing their dream of owning a home. The <a href="https://himaxwell.com/resources/ebooks-white-papers/1h-2022-millennial-genz-borrower-sentiment-report/#downloadnow" title="2022 Millennial &amp; Gen Z Borrower Sentiment Report" target="_blank" rel="noopener noreferrer">2022 Millennial & Gen Z Borrower Sentiment Report</a> from Maxwell says:
“Many young adults have demonstrated their resolve to embark on the journey toward homeownership soon. More than half of millennials and Gen Zs plan to apply for a mortgage sometime within the next year.”
Let’s take a look at why homeownership makes the top of so many young buyers’ to-do list and what you need to consider to achieve your goals if you’re one of them.
Top Motivators To Buy a Home
Before you start the homebuying process, it’s helpful to know why homeownership is so important to you. The survey mentioned above sheds light on some of the top reasons why younger generations are looking to buy a home. It finds:
95% believe the <a href="https://www.simplifyingthemarket.com/2022/09/30/why-buying-a-home-may-make-more-sense-than-renting-infographic/?a=369201-384c412da9ac59223a4bb47cb598a558" title="cost of renting" target="_blank" rel="noopener noreferrer">cost of renting</a> is too high
35% think owing a home is an important <a href="https://www.simplifyingthemarket.com/2022/11/04/homeownership-wins-over-time-infographic/?a=369201-384c412da9ac59223a4bb47cb598a558" title="wealth building tool" target="_blank" rel="noopener noreferrer">wealth building tool</a>
16% seek the sense of security owning a home provides
37% plan to use it as an <a href="https://www.simplifyingthemarket.com/2022/11/03/do-you-believe-homeownership-is-out-of-reach-maybe-it-doesnt-have-to-be/?a=369201-384c412da9ac59223a4bb47cb598a558" title="investment property" target="_blank" rel="noopener noreferrer">investment property</a>
No matter which of these resonates the most with you, know there are many financial and non-financial reasons why you may want to buy a home. While your top motivator may be different than that of your friends, they’re all equally valid and worthwhile.
Key Obstacles and How To Overcome Them
Whether your <a href="https://www.simplifyingthemarket.com/2022/10/07/the-journey-to-buy-a-home-infographic/?a=369201-384c412da9ac59223a4bb47cb598a558" title="homeownership" target="_blank" rel="noopener noreferrer">homeownership</a> goals come from the heart or are driven by financial aspirations (or both), it can still be hard to know where to start when you’re looking to buy a home. From understanding the homebuying process, to getting <a href="https://www.simplifyingthemarket.com/2022/10/24/pre-approval-is-a-critical-first-step-on-your-homebuying-journey/?a=369201-384c412da9ac59223a4bb47cb598a558" title="pre-approved" target="_blank" rel="noopener noreferrer">pre-approved</a>, and exploring <a href="https://www.simplifyingthemarket.com/2022/10/31/taking-the-fear-out-of-saving-for-a-home/?a=369201-384c412da9ac59223a4bb47cb598a558" title="down payment options" target="_blank" rel="noopener noreferrer">down payment options</a>, it’s a lot to wrap your head around.
The same Maxwell survey also reveals key challenges for potential buyers. Thankfully, the knowledge and guidance of a trusted real estate professional can help you overcome both. Here’s a look at two of the hurdles potential homebuyers say they face:
1. The Mortgage Process Can Be Intimidating
In the Maxwell study, 33.37% said one of their obstacles was that the mortgage process is confusing or difficult to understand.
An <a href="https://resources.ownup.com/home-buyer-mortgage-shopping-study-overview-2022?utm_content=normal" title="article" target="_blank" rel="noopener noreferrer">article</a> by OwnUp helps explain why the <a href="https://www.simplifyingthemarket.com/2022/10/28/applying-for-a-mortgage-doesnt-have-to-be-scary-infographic/?a=369201-384c412da9ac59223a4bb47cb598a558" title="mortgage process" target="_blank" rel="noopener noreferrer">mortgage process</a> is so challenging for buyers:
“There is a general lack of knowledge about home financing. Mortgages are a complicated topic with no one-size-fits-all answer. It’s difficult to understand the space, let alone determine what the right course of action is based on your unique financial picture.”
While you may be tempted to do a quick search online to find instant answers to your questions, it may not get you the information you need to understand the full picture. Especially when it comes to financial advice, you want to lean on a true expert. Having trusted professionals on your side can help you to learn what it takes to achieve your dream of homeownership. Not to mention, an expert can give you advice specific to your situation, not generic advice like you’ll find online.
2. It’s Hard To Know How Much You Need To Save
In the Maxwell study, 45.75% believe they don’t have enough saved to cover their down payment or closing cost expenses.
What you may not realize is that, today, there’s a growing number of down payment assistance programs available nationwide to help relieve this pressure. A report from Down Payment Resource <a href="https://downpaymentresource.com/professional-resource/homebuyer-assistance-programs-proliferate-in-q3-as-median-u-s-down-payment-skyrockets/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Our Q3 2022 HPI report revealed a 1.6% uptick in the number of homebuyer assistance programs available to help people finance homes, raising the number of programs to 2,309, a net increase of 36 over the previous quarter.”
Additionally, as the housing market cools, buyers are regaining some <a href="https://www.simplifyingthemarket.com/2022/09/15/buyers-are-regaining-some-of-their-negotiation-power-in-todays-housing-market/?a=369201-384c412da9ac59223a4bb47cb598a558" title="negotiation power" target="_blank" rel="noopener noreferrer">negotiation power</a> and more sellers are willing to work with buyers to help with closing costs. Understanding what’s out there and the options available may help you achieve your dream of homeownership faster than you thought possible.
Bottom Line
If you’re serious about becoming a homeowner, know it may be more in reach than you think. Lean on trusted professionals to help you overcome challenges and prioritize your next steps.
2022-12-06T08:33:19-07:002022-12-06T08:40:58-07:00Melissa Dierkstag:theregalteam.com,2012-09-20:17177Is Getting a Home Mortgage Still Too Difficult?<img src="https://assets.site-static.com/userfiles/3734/image/getting-a-home-mortgage.jpg" alt="Is Getting a Home Mortgage Still Too Difficult?" title="Is Getting a Home Mortgage Still Too Difficult?" height="410" width="750" />
Potential homebuyers are always cautioned to be aware of mortgage lending standards and the difficulty they might face when trying to obtain a mortgage. Credit availability is expanding, making it easier to get a mortgage now than it was a year ago. The market is still tight however, and homebuyers should be prepared to shop around until they find a lender who is offering something that will meet the needs of their family.
Mortgage lending companies have high standards so it is important to make sure you and anyone else who will be included on the mortgage have their credit in check. The mortgage market is strict because lenders do not want to be put in a situation where they are forced to repurchase loans that are not paid on. They also do not want to end up in a litigation situation due to loan issues.
What Has Happened to the Number of Mortgages?
Due to the strict nature and requirements of the lending companies, the number of mortgages given out has significantly dropped. A report by the Housing Financial Policy Center at the Urban Institute showed that about 6.3 million fewer mortgages were given out between 2009 and 2015. The reasons behind this statistic are strict regulations and policies. These mortgages would have been granted if the lending standards where more reasonable.
Mortgage companies rely on calculations to determine if a home buyer will become delinquent on their payment. They will not give you a loan if you are too much of a risk for them. Credit history has a huge impact on this decision since lenders can see how often you pay back your debts. The history they receive is extensive. This view into your financial past causes lenders to take less risk when lending to you for your mortgage.
The Effect on the Economy
The housing market is recovering at a slower pace than it should since less potential homebuyers are being offered loans. While the market is still recovering with positive trends, fewer buyers can create a strain on other economic factors like home goods or construction jobs. Bottom Line
After the housing market boom and bust, mortgage lenders became stricter in their lending standards. It is not impossible to get a mortgage loan, but it can still be difficult for potential home buyers. Stay on top of your credit and make sure you and anyone else who is applying are in a good financial position so you can be approved for a loan. It is important to research different companies and their requirements to ensure success in getting a mortgage.2021-12-21T07:27:00-07:002021-12-28T12:10:44-07:00Melissa Dierkstag:theregalteam.com,2012-09-20:17176Why You Should Consider Selling in the Winter<img src="https://assets.site-static.com/userfiles/3734/image/selling-in-the-winter-attracts-serious-buyers.jpg" alt="Selling In Winter Attracts Serious Buyers" title="Selling In Winter Attracts Serious Buyers" height="410" width="750" />
The season you sell your home can have an impact on how much you get for your home and how quickly it sells. The season that has the most success in selling homes is spring. This is a good time of year for families moving to new school districts and is also more convenient weather for moving. Because of this trend, most people will recommend waiting to list your home until after the winter is over. Avoiding the winter is a huge misconception in the housing industry and can cause homeowners to miss out on opportunities.
Selling in the winter can give you a few advantages. There will be fewer houses on the market since most people assume winter is a bad time to sell. This gives your home more attention. Potential buyers are always looking no matter the time of year. Keeping your house on the market in the winter might bring the right buyer to your door. Real estate agents also tend to be less busy during these months and commit more time to getting your home sold.
Studies have shown winter buyers are buying because they need to move right away either for a relocation or personal situation. They will want to close quickly and allow for a much smoother sale.
Bottom Line
If you need to sell your home right away, or have some time but want to see what is out there, consider listing in the winter. Most homeowners who are going to sell will list their home in the spring, making for a competitive market. The winter allows buyers who are in a hurry to move consider your home and sell for more money than you would have in the spring.2021-12-21T07:27:00-07:002021-12-28T12:10:52-07:00Melissa Dierkstag:theregalteam.com,2012-09-20:17175Common Things to Look Out for Before Buying Your Dream Home<img src="https://assets.site-static.com/userfiles/3734/image/3-questions-to-ask-before-buying-your-dream-home.jpg" alt="Common Things to Look Out for Before Buying Your Dream Home" title="Common Things to Look Out for Before Buying Your Dream Home" height="410" width="750" />
It is easy to become overwhelmed when you enter the home buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing. 2021-12-21T07:27:00-07:002021-12-28T12:11:00-07:00Melissa Dierkstag:theregalteam.com,2012-09-20:17174Will Increasing Mortgage Rates Impact Home Prices?<img src="https://assets.site-static.com/userfiles/3734/image/mortgage-rate-projections.jpg" alt="Will Increasing Mortgage Rates Impact Home Prices? " title="Will Increasing Mortgage Rates Impact Home Prices? " height="410" width="750" />
There has been some discussion recently on home prices in relation to mortgage rates. Some believe if there is a rapid rise of mortgage rates, home prices should decrease. Logically it makes the most sense for the price of the house to drop when interest rates are rising, but this is not always the case.
This theory of home prices decreasing is typically discussed by future home buyers. As a buyer you would like to think if you are paying higher rates on your mortgage, you should be able to see a decrease in cost somewhere else. Unfortunately, these rates are rising because the economy is in better shape. As the economy succeeds, incomes rise, rates go up, as well as the price of the home.
A recent study by the John Burns Real Estate Consulting found mortgage rates have very little impact on the cost of the home. The housing market and price increases are affected by things like job growth in the area and rising wages. Coincidentally, these same factors are causing the rise in the mortgage rates since people can afford to take out more.
Bottom Line
As the economy progresses and strengthens, mortgage rates and home prices will fluctuate. It is a misconception as rates increase, home prices will decrease. Advances in the economy have shown that rates and home prices are more likely to increase together.2021-12-21T07:27:00-07:002021-12-28T12:11:08-07:00Melissa Dierks