Landing Mortgage More Stressful Than Finding a Job?

Daily Real Estate News | February 9, 2011

Landing Mortgage More Stressful Than Finding a Job? 

Getting a mortgage in today’s lending market isn’t easy and can be a complicated, stressful process for borrowers, according to findings from a national survey by MortgageMatch.com of 1,000 adults.

About 70 percent of Americans say access to affordable mortgages is a serious problem, and that understanding the mortgage process and lenders’ requirements is even more difficult and stressful than getting the mortgage itself or even negotiating the sale price on the home.

Nearly 80 percent of recent home buyers, particularly those earning $50,000 a year or more, say getting a mortgage was much more difficult than they had expected. And nearly a quarter of home buyers said waiting to hear if they were approved for a mortgage was even more stressful than waiting to hear if they landed a job.

Among the survey’s other findings:

• 10.8 percent report their lender gave them a higher interest rate than what they were originally quoted.
• 22.9 percent said applying for a mortgage was challenging because documentation requirements from their lender kept changing.
• 21.6 percent of borrowers said their lender used too much technical jargon.

"Over the past few years, a lot of buyers have had a hard time not only getting a loan but getting through the process," says Sue Stewart, senior vice president at Move Inc., which is the operator of MortgageMatch.com. "This survey is a wake-up call and clearly points to the fact that borrowers want a process that's easy to understand and follow. They don't want surprises and they want to be able to depend on their mortgage lender. For most people, the home buying process isn't about the mortgage -- it's about getting a home."

Source: “Survey Shows Access to Mortgages Seen as a Serious National Problem,” PRNewswire (Feb. 8, 2011)

It's super important that you work with a lender that you can trust and who takes the time to help you understand the process. Email me or call me and I would be happy to give you the contact info for my mortgage professional whom I work with all the time! sales@ashleywydra.com 708-307-9616

- Ashley

Lenders May Be Not-So-Fast to Foreclosure

Daily Real Estate News | January 11, 2011

Lenders May Be Not-So-Fast to Foreclosure 

After a pivotal court ruling last Friday in Massachusetts, lenders are likely to be more willing to help home owners who are struggling to make their mortgage payments.

Last Friday, the Massachusetts Supreme Judicial Court ruled that two foreclosures in the case were invalid because the banks didn’t follow proper steps to show they had the authority to foreclose on the homes.

The case likely has set a precedent for the rest of the nation’s lenders to follow: Before you foreclose on a home owner, make sure you have authority to do it.

“What banks are going to have to do is make sure they’ve dotted their I’s and crossed their T’s before going through with a foreclosure,” says Stuart Rossman, director of litigation at the National Consumer Law Center.

This could mean an even slower pace for foreclosures as banks take extra caution on their paperwork, says Roy D. Oppenheim, senior partner at Oppenheim Law in Weston, Fla.

Experts say the court ruling was a positive for home owners who are in the middle of the foreclosure process, those trying to work out modifications, refinance, or do a short sale. They say that reaching a deal with lenders may become easier.

“I am expecting the banks to do fewer foreclosures and to engage in serious conversation in pre-foreclosure with borrowers,” Oppenheim says. “We’re already seeing [some] modifications that included for the first time principal reduction.”

Source: “Foreclosure Ruling May Be Good News for Homeowners,” MarketWatch (Jan. 11, 2011)

I think it will be interesting to see what this year brings with short sales and foreclosures. I know that I personally deal with a lot of short sales and it seems like they really dominate the market. I feel that buyers are starting to shy away from these types of sales because of the length of some of the processes. Anyways, only time will tell what happens with these properties and the market we're in now!

- Ashley

Does it make more sense to rent or own in 2011?

Daily Real Estate News | January 6, 2011

Tables Turn in 2011 on Rent vs. Own 

Rents have surged as home prices have dropped, which have prompted some to ponder whether homeownership is really worth it. Moody’s Analytics data has suggested that it makes more financial sense to rent than buy in many U.S. cities, but Moody’s chief economist Mark Zandi now says that is about to change.

"By mid 2011 and certainly by end of 2011, buying will be superior to renting in most parts of the country," Zandi says.

Home prices are expected to fall further, making more homes affordable, whereas rent prices are expected to continue to rise this year.

The following are a few of the top cities where it makes more sense to buy than rent, according to Moody data. (Experts often recommend buying when the price-rent ratio is below 15 and rent when it’s above 20.)

▪ Cleveland: 11.43
▪ Pittsburgh, Pa.: 11.71
▪ Detroit: 12.32
▪ Phoenix: 12.35
▪ Atlanta: 12.82
▪ Tampa, Fla.: 13.08
▪ Orlando, Fla.: 13.1
▪ Cincinnati: 13.74
▪ Las Vegas: 13.89

Source: “Rent vs. Own Ratio to Flip in 2011?” Fortune (Jan. 4, 2011)

I definitely agree that rent prices will continue to rise because of the high demand of renting nowadays. Sellers who took a hit to their credit by short-selling or being foreclosed upon are now forced to rent since they cannot get a mortgage. Rentals do not last very long on the market and we often get several applications the first day being on the market! There are still amazing deals on homes out there that we may never see again. Especially for first time homebuyers, who have nothing to sell, the savings over their 30-year mortgage would be incredible right now! Call me if you are looking to buy! 708-307-9616

- Ashley

3 Reasons to Sell a Home Soon

3 Reasons to Sell a Home Soon

What do you tell a client who asks whether to sell a house now or wait? Steve McLinden, real estate adviser with Bankrate.com, offers these three good reasons not to wait, even though the holidays are approaching:

1. The market is improving. Most markets have either turned or are close to turning.

2. All real estate is local. Homes in great locations are always in demand.

3. Spring is coming soon. Many potential buyers are starting their online searches right after the holidays, making mid- to late February a great time to start marketing.

Ready to get your home on the market? I also think that since a lot of buyers have time off work during the holiday season, now is the ideal time to put your home on the market! Contact me at sales@ashleywydra.com or 708-307-9616.

- Ashley

Article in the Wall Street Journal Online

Hey Everyone, So I was perusing through the Internet and reading stories about real estate when this one in particular caught my attention. The headline read "Redfin: Less Than Half of All Home-Sale Attempts Successful in ‘09". That's less than a 50% success rate! No wonder sellers are so hesitant to list their home in this economy! "A survey of seven major housing markets found that less than half of all attempts to sell a home in 2009 had, as of last Wednesday, resulted in a sale." (http://blogs.wsj.com/developments/2010/08/16/redfin-less-than-half-of-all-home-sale-attempts-successful-in-09/). When buyers see all these properties sitting on the market for so long without selling, they definitely should see opportunities for great deals. Not that they should take advantage of these desperate sellers, but many sellers are settling for lower offers just to get rid of their houses so they can move on. The good news for these distraught sellers is that they will luckily make up for some of that loss in their next purchase! Interest rates are so low right now so not only will they get a low interest rate on their mortgage, but they will also get a good deal on their purchase of a home. It really does all even out in the end. Here is data from Cook County: County Name Listings Activated in 2009 # 2009 Listings Sold % 2009 Listings Sold # Still Active % Still Active Cook County, IL 134,710 44,789 33.3% 7,893 5.9% Here's the link to the entire article: http://blogs.wsj.com/developments/2010/08/16/redfin-less-than-half-of-all-home-sale-attempts-successful-in-09/ - Ashley

New Affiliate Staging Company: Elle M Staging

Hey There!

I'm super excited to announce my new partnership with a local staging company servicing the Chicagoland area. They are called Elle M Staging and here is a word from them:

In today’s real estate market home staging is critical. A house on the market for too long not only loses dollar value but loses buyer interest. Don’t neglect the opportunity to get the most out of your largest investment!

Elle M Staging will set your house apart from comparable homes in your area and help avoid costly price reductions. 

In our initial consultation, we tour your house and present ideas and solutions to your most challenging spaces.

Through furniture placement, wall color, accessorizing, and more we will neutralize and bring alive your house.

Create that winning first impression so buyers can envision themselves living there!

Elle M Staging is now offering professional home staging in the Chicago land area.

Take advantage of our affordable services by contacting us today at:

708.805.6886 or ellemstaging@gmail.com

View us on the web at ellemstaging.com

I hope you'll take a minute to visit their website!

- Ashley

The Housing Market: Supply and Demand

Remember that dreaded economics class back in high school or college? Supply and demand? Well, hopefully you paid attention to your professor, because economics plays a large role in the housing market.

Remember that as the demand for something goes up and the supply goes down, the value and price go up? And likewise as the demand for something goes down and the supply goes up because there's more available, the value and price go down?

Now in terms of the housing market, as the supply of housing went up and the demand fell, the values and prices fell. Many people do not think of the housing market in this way. All sellers think that their house is worth more than they paid for it, which isn't always the case. Since there are fewer buyers out there nowadays, they truly have the upper-hand in most cases. Once demand for housing begins increasing, we will see the supply decrease and the value and prices will begin to rise.

Thinking of selling your home? At least we are in the prime summer months where showing activity is generally higher than other times of the year. Contact me today and I will share my marketing plan with you. When you list with me, you also get a free home staging consultation! Call or email me for more details! 708-307-9616 or sales@ashleywydra.com

- Ashley

Thunderstorms and Lightning Bolts

So during last night's heavy storms, I couldn't sleep at all! Buster, my 5 year-old cairn terrier is absolutely terrified of thunderstorms and was literally hyperventilating! Baxter, my one-year old cairn terrier was just walking around the bedroom, obviously also being kept up by all the noise outside.

I started thinking about how thunderstorms are nature's way of keeping us in check - meaning that they make us enjoy nice weather all the better. Then, I began relating this information to my real estate career - the rude, inconsiderate customers make me appreciate the grateful, friendly ones all the better! Sometimes, I think people are under the misconception that agents get paid a salary, which is not true. A lot of buyers don't feel any sense of loyalty to an agent and may work with many agents. It's a matter of convenience for them, as to who ends up getting the commission, even though the other agents may have dedicated hours of work to that particular buyer. Unless people have worked on commission before, they simply don't understand how it works or affects an agent who has spent countless hours working for them and doesn't receive a penny of income.

Of course, then there are the greatest buyers in the world who stay loyal to you no matter what and truly work with only you as their exclusive agent. Those are the best kind of clients to have. However, I must treat all my clients as though they are these wonderful buyers until they give me a reason to act otherwise. Getting stood up, betrayed for another agent, or simply used as a means to get information are all reasons that I'd be happy to let another agent deal with a particular buyer. Real estate agents don't go through all the training and classes, get their certification, take their continuing education classes and become professionals to be treated as any less than that! If I am not treated as a professional, then I'd rather let the client work with a different agent, who may or may not care about them as much as I do.

All I can do is give my clients the best service possible and hope that they will conform to the world's greatest buyer status and not the opposite. Referrals are truly the highest compliment that an agent can receive and I appreciate any and all that come my way!

As for the thunderstorms that are on the way this afternoon, I say bring them on...I will only enjoy my sunny, clear days more!

- Ashley

Are You Ready To Buy Your First Home?

With all this talk going on about the $8,000 first-time home buyer credit, you may be asking yourself, "Am I ready to buy my first home?" Here are some helpful articles and tips taken from move.com's How-To Guide: Buying Your First Home: http://www.move.com/guide/first-time-home-buying.aspx?source=hp

Step One: Are You Ready?

Now's the time to ask yourself: Do I know what I want? Do I have the money? Is my financial house in order?

10 Steps to Home Ownership: http://www.move.com/home-finance/buyers-basics/guide-how-to-buy-a-home.aspx

How Do I Get Started?: http://www.move.com/home-finance/real-estate/buyers/can-you-afford-to-buy-a-house.aspx

Six Signs You're Ready To Buy: http://www.move.com/home-finance/real-estate/buyers/signs-that-youre-ready-to-buy.aspx

Tips for Squirreling Away Your Down Payment: http://www.move.com/home-finance/real-estate/buyers/how-to-save-when-buying-home.aspx

Step Two: Get Organized

When it comes to buying your first house, sometimes you simply don't know what you don't know... yet.

Should You Buy a New or Existing House?: http://www.move.com/home-finance/real-estate/buyers/buy-old-or-new-home.aspx

Condo vs. House: http://www.move.com/home-finance/real-estate/buyers/to-buy-condo-or-house.aspx

Do You have Buyer's Paralysis?: http://www.move.com/home-finance/real-estate/buyers/home-buying-problems.aspx

Pulling The Trigger: http://www.move.com/home-finance/real-estate/buyers/tips-on-first-home-buying-decision.aspx

Step Three: Taking Charge

There's nothing so complex about buying a house that you can't understand it with a bit of knowledge.

Take Charge When Buying A Home: http://www.move.com/home-finance/mortgages/take-charge-when-buying-home.aspx

10 Mistakes You Can't Afford: http://www.move.com/home-finance/mortgages/10-mistakes-you-cant-afford.aspx

Borrowing From Family and Friends: http://www.move.com/home-finance/real-estate/buyers/borrowing-from-family-and-friends.aspx

Step Four: Rent vs. Buy

Pay a landlord or pay a bank? That's the question renters face as they consider stepping into homeownership.

Renting vs. Buying: http://www.move.com/home-finance/mortgages/should-you-buy-or-rent.aspx

Am I Better off Buying Now or Renting?: http://www.move.com/rentals/finance-and-budgeting/What-you-need-to-know-about-renting-or-buying-in-the-20-top-markets.aspx

Renting to Own: http://www.move.com/home-finance/real-estate/buyers/benefits-of-leasing-home.aspx

Again, all of this information is from move.com, but I thought it is quite a useful guide for first-time home buyers! I hope you enjoy this resource and don't forget to call me when you're ready to start looking for your first home!

- Ashley