Get pre-approved!

Over the last few weeks I've spoken to half a dozen first time buyers getting ready to buy this year. It's an exciting time for them- browsing online at homes, day dreaming about hosting parties in their backyard, pinning home decor ideas- but before I take them out to SEE the homes in person, I want them to be pre-approved by a bank for a specific amount. This may seem boring or intrusive to a potential buyer, but it's important to know you can afford the home you have fallen in love with.

I often hear; "I know I have good credit so it won't be an issue" or "I know what I can afford each month"
That is great! But banks look at more than your credit and monthly income.
I have clients that have good income, stellar credit, but not enough down payment money to afford a home that they probably could afford on a monthly basis. They were basing their new home by their monthly income, not by a mortgage approval.

Another client was ready to start the process, has a great job, money saved, but his credit was a little low due to just buying a new car the prior month. We had to put the buying on hold for a few months while his credit was improving.

It's essential to talk to a bank sooner rather than later. Why tease yourself looking at homes if you aren't sure you can afford them?
I tell clients, friends, family; even if you aren't ready for another 6 months, it can't hurt to talk to a bank today. They can help determine how much more you should save, if you need to improve your credit and some tips, and provide a good estimate of monthly payments. Bankrate.com or Zillow.com have OK tools to give you an idea, but it's not always accurate. There's no obligation when talking to a bank- it's priceless in more than one way! 

14 Things You Need to Start Doing Now for Your Spouses Sake

I get weekly Houzz.com emails (my continued addiction) and this article made me laugh so I wanted to share. Being a newlywed and newly living with my spouse full-time, we've had quite a few of these discussions.

If you're buying a home with your significant other for the first time, you should read this- Even if it's just for a few laughs.

Start doing these 14 things for happy living:

1. Learn where everything is and where everything goes (my pet peeve)

2. Close the cabinet doors and drawers (my husbands pet peeve)

3. Clean your dishes

4. My speciality scissors and tools are not for your sloppy tasks

5. Put dirty clothes in the hamper; clean ones in drawers or hang up

6. Don't leave piles of mail, newspapers or magazines out

7. Help clean out the litter box

8. Turn off the lights when you leave a room

9. Close the toilet lid

10. Replace the toilet paper (personal preference is paper over roll)

11. Shut the doors and windows

12. Don't take your towel out of the bathroom

13. Put a bag in garbage can

14. Take off your shoes or wipe them on mat

Read full article <<here>>

2014 outlook

In the Philadelphia region, 2013 was a positive year in real estate. 
Inventories were low in many areas which resulted in multiple offers and higher sale prices. Personally, I experienced that scenario in multiple towns throughout the 5 counties!
So, what's coming up for 2014 you might wonder....

-For 2014, according to the National Association of Realtors, "The housing recovery is expected to continue on its path in the new year with home prices continuing to rise; sales to rise slightly; and the foreclosure crisis expected to finally draw to an end.

“For the general consumer, the market will be good in 2014,” said Lawrence Yun, the National Association of Realtors®’ chief economist. “Home values will continue to rise, but not sharply, but there won’t be a decline.”

This year has marked the second straight one of a “very respectable recovery,” said Yun, with a 20% cumulative increase in existing-home sales over the past two years and nearly a 20% rise in home prices. However, he notes that existing-home sales will likely plateau in 2014.

Home prices, which rose 11% in 2013, will grow at a slower pace of five percent in 2014, Yun estimates. He attributes the expected slowdown in the home-price rise to “less affordable conditions from higher prices and higher mortgage rates.”

-The Real Estate Economy Watch website just posted an article referencing 4 things that WON'T happen in 2014- you never know for sure, but I think it's realistic. Here is a snippet:

1. Inventory shortages like the one last year are history. Not a chance of a repeat in 2014. Rising values pushed another 30% of homeowners above the surface last year. Markets across the nation have returned to better balance between supply and demand.

2. If interest rates dip below 3.5%, its time to move to China. Rates on a 30 year fixed rate mortgage bottomed out a year ago below 3.5% and they remained low through the first of this year despite widespread predictions...  With the economy starting to return to life and the Fed talking about tapering, not if but when, it’s pretty obvious that rates aren’t going back and the 3 percent days are a thing of the past, unless we hit a depression.

3. Discounted deals on distressed sales are a thing of the past in the sand states, except for Florida.  No more toxic loans, no more toxic foreclosures. In 2014, however, it will still be possible to do some flipping in places like Jersey City, Albany, Columbus O, and Baltimore where judicial state laws extend the foreclosure pain on homeowners and lenders alike.

4. Investor purchases won’t continue to bolster demand. Accounting for 30% market share or more two years ago, investors’ share is half that and shrinking. The future of the recovery going forward is more dependent of owner-occupants than ever." 

Read entire article here http://www.realestateeconomywatch.com/2013/12/four-big-things-in-real-estate-that-wont-happen-in-2014/

-Become familiar with the term: Boomerang Buyers

These are the people who were ousted from the market due to foreclosure or short sales, have spent years renting to rebuild their credit, saved enough to buy and are now back in the market looking. 

These buyers are expected to help the market turnaround. 

If you have questions about the buying process, how to qualify for a mortgage or want information on your specific neighborhood, please contact me directly:

Kelly Kneeland Steyn

kskneeland@gmail.com

484-343-2406

www.KellyKneeland.com