Real Estate Information Archive

Blog

Displaying blog entries 1-5 of 5

Until you know the facts buying can be scary...

by KCM

Some Highlights:

Many potential homebuyers believe that they need a 20% down payment and a 780 FICO® score to qualify to buy a home which stops many of them from even trying! Here are some facts:

  • 72% of buyers who purchased homes this year have put down less than 20%.
  • 76.4% of loan applications were approved last month.
  • The average credit score of approved loans was 727 in September.

The results of countless studies have shown that potential home buyers, and even current homeowners, have an inflated view of what is really required to qualify for a mortgage in today’s market.

One such study by the Wharton School of Business at the University of Pennsylvania revealed that many millennials have not yet considered purchasing homes simply because they don’t believe they can qualify for a mortgage.

A recent article about millennials by Realtor.com explained that:

“About 72% of aspiring millennial buyers said they’re waiting because they can’t afford to buy…”

The article also explained that 29% of millennials believe their credit scores are too low to buy.The problem here is the fact that they think they will be denied a mortgage is keeping them from even attempting to apply.

Ellie Mae’s Vice President Jonas Moe encouraged buyers to know their options before assuming that they won’t qualify for a mortgage:

“Many potential home buyers are ‘disqualifying’ themselves. You don’t need a 750 FICO® Score and a 20% down payment to buy.”

So, what credit score is necessary?

Below is a breakdown of the FICO® Score distribution of all closed (approved) loans in July from Ellie Mae’s latest Origination Report.

[Don’t Disqualify Yourself… 52% of Approved Loans Have A FICO® Score Under 750 | MyKCM]

Over 52% of all approved loans had a FICO® Score under 750. Many potential home buyers believe that they need a score over 780 to qualify.

Bottom Line

If owning a home of your own has always been your dream and you are ready and willing to buy, or if you are a homeowner who wants to move up, find out if you are able to! Let’s get together to determine if your dreams can become a reality sooner than you thought!

First Comes Love... Then Comes Mortgage?

by KCM Blog

According to the National Association of REALTORS most recent Profile of Home Buyers & Sellers, married couples once again dominated the first-time homebuyer statistics in 2016 at 58% of all buyers. It is no surprise that having two incomes to save for down payments and contribute to monthly housing costs makes buying a home more attainable.

But, many couples are also deciding to buy a home before spending what would be a down payment on a wedding, as unmarried couples made up 14% of all first-time buyers last year.

If you’re single, don’t fret! Single women made up 18% of first-time buyers in 2016, while single men accounted for 8% of buyers. One recent article pointed to a sense of responsibility and commitment that drives many single women to want to own their home, rather than rent.

Here is the breakdown of all first-time homebuyers in 2016 by percentage of all buyers, income, and age:

First Comes Love… Then Comes Mortgage? | MyKCM

Bottom Line

You may not be that much different than those who have already purchased their first homes. Let’s get together to determine if your dream home is already within your grasp!

Prioritize trade-offs in house vs.condo decision

by Allison Simson

Q: Allison:  We are looking to buy property in Summit County, which  is better to buy - a house or condo/townhouse?

A: Good question!  According to Tara Nicholle Nelson of Inman News, in the house vs. condo or townhouse battle, the analysis of which type to buy is not as simple as "better" or "worse," per se.  However, there are trade-offs to each, and in the final analysis of which property type to buy, own and live in, your decision boils down to a matter of fit between your lifestyle, personality and finances, and the key characteristics of the property type you select.

The most common concern homebuyers bring up when making the "condo or no" decision are around homeowners associations: the monthly dues they charge, and the restrictions they impose.

While many people think paying any sort of monthly dues on top of your mortgage and property taxes is nuts, these dues often cover expenses that a single-family homeowner would have to pay out as individual line items to various vendors, like garbage collection, hazard insurance and maintenance of the building(s) over time.

Another common "pros and cons" comparison when it comes to the house-vs.-condo debate involves the commonly cited advantage of attached, HOA-style housing, in that it eliminates the biggest portion of the home maintenance single-family homeowners have to do. This is especially true when it comes to the buildings' exterior, landscaping, and maintaining big ticket items like foundations, boilers, roofs and windows.

Unit owners don't have to do that sort of work, but the trade-off is a different set of responsibilities that owners of non-HOA properties don't have: the work of participating in an HOA. That means attending board meetings, reading meeting minutes, staying informed about HOA issues, and voting. If you don't participate, you can't be surprised when the HOA levies surprise fees and assessments because expenses weren't appropriately anticipated or budgeted.

And here's another set of trade-offs: privacy vs. communal living. In a detached home, you have as much privacy from your neighbors as possible in light of the architecture and lot situation of the property you choose. In an HOA situation, you might share walls, ceilings, floors, parking areas and yards -- and, depending on the construction standards of the property, possibly also smells and sounds -- with your neighbors; as well, you definitely share some financial interests with your neighbors in a condo scenario.

Along with owning and living in a communal setting comes the obligation to abide by its rules. It is precisely the extensive covenants, conditions and restrictions (CC&Rs) and community rules and regulations that make a community of relative strangers run smoothly, which makes some prospective buyers bristle at the potential loss of autonomy and ability to freely choose your own home improvements, among other things.

It's not bizarre for condo rules to limit things like your flooring choice (because hard floors can create noise pollution for lower units); what you can put out on your patio; and the size, number and type of pets you can own.

The flip side? The community, together, possesses economies of scale and can collectively afford property amenities you could never afford to have in your own private property, from doormen to parking garages, pools to community centers, and even including business centers and parks.

So, my answer is: You decide. Do you value privacy over amenities? Ease of maintenance over independence? Ask yourself what your priorities are, and go see both detached homes and condo/townhouse properties in your area. The right personal choice becomes clear to most buyers very early in their house hunts.

With that said, I do have one caveat about condos and townhomes: There are a number of HOAs that are experiencing deep financial crises, post-recession, from the dues they charge being viewed as a low-priority obligation by homeowners struggling to pay their bills. As a result, some HOAs are increasing dues on all homeowners to cover their expenses, and levying special assessments to cover high-priced upgrades and repairs that urgently need doing.

Increasingly, in a large number of HOAs across the country, the units are unable to be resold due to the HOA's financial issues, rendering it impossible for prospective buyers to obtain mortgage financing -- when buyers can't buy, home values plummet.

If you decide you like condo living, talk with your real estate broker or agent about finding a unit in a healthy HOA -- buying into one that is struggling can dramatically impact the value of your home and the ability to resell it over the long term.  Inman News 2011.

For answers to your real estate questions, call Allison at 970-468-6800. Email - [email protected]. Allison is a long time local in Summit County. Summit Real Estate – The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Allison’s long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field.  Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com   

We want to buy a home here in Summit County but don’t know where to begin!

by Allison Simson & Joyce Nenninger
Question: We want to buy a home here in Summit County but don’t know where to begin. My wife and I don’t seem to agree on what this house should be like. How do we get started?
 
Answer: Most homebuyers base their decision mainly on price and location, studies show. Other important elements are space, renovated kitchens and bathrooms, a home office, energy efficiency, and modern amenities. Although many of these elements can be added later, some buyers prefer to purchase a house that already contains what they want. When deciding what type of home to buy it can be helpful to make a list of both wanted and needed features in a home--this list, which can include any specialized features, can easily be generated by first considering unappealing aspects of the home. Buyers should give their real estate agent a copy of the list, and they should take a copy with them whenever they are out house hunting. Nonetheless, buyers often find themselves swayed by a house's ambiance and forgetful of their carefully constructed list. While atmosphere is important, to ensure a long-lasting happiness in the home, it is best for buyers to make sure it actually contains some of the features they want. 2009 Information.Inc.
 
For answers to your real estate questions, call Allison at 970-468-6800. Email - [email protected]. Allison is a long time local in Summit County. Summit Real Estate – The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Allison’s long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com   

Displaying blog entries 1-5 of 5

Syndication

Categories

Archives

Share This Page

Contact Information

Photo of Summit Real Estate Real Estate
Summit Real Estate
The Bright Choice
330 Dillon Ridge Way, Suite 10
Dillon CO 80435
970-468-6800
800-262-8442
Fax: 970-468-2195

Allison Simson, Owner/Broker, is a licensed Colorado Real Estate Broker