Mortgage rates do not remain the same, and they are crucial in determining the possibilities and the challenges for buyers and homeowners in the housing market. The latest statistics indicate that average rates on 30-year fixed mortgages have been at around 6.8 percent in mid-2025, which is a slight decrease compared to the levels of 7.1 percent in the year before.
These rates depend on changes in Federal Reserve policy, the level of inflation, as well as the demand for housing. A lot of people are enquiring whether the mortgage rates will fall within the upcoming months and what this will do to the decision to purchase, refinance, or consider other products. With this knowledge, you are more likely to navigate through the housing market.
The Federal Reserve activities are closely related to the mortgage rates, although not always in the same way. Although the Fed can directly influence short-term rates, long-term borrowing expenses, such as a mortgage, are more influenced by inflation expectations. The Fed Chair gave a recent indication that it may make some rate cuts in the near future.
Traditionally, in times where inflation is contained, the mortgage rates will fall after the Fed cuts. In case the inflation is kept low, rates might creep into the low 6% to high 5% range within the next year, still well below the 3% rates a few years ago. Homebuyers looking for guidance from the best mortgage lenders may find this information essential when deciding whether to lock-in a rate now or wait.
In dynamic markets, mortgage brokers are known to give a broader perspective on any given lending option. According to statistics, consumers who deal with brokers can save an average of 0.25-0.5 percent of the mortgage rate as opposed to going through the lenders on their own. The best mortgage brokers in Burbank use this advantage to help clients access competitive rates and flexible terms, even as national rates fluctuate. The brokers also expect changes in the demand seasonally and therefore, they afford a client the opportunity to act swiftly when the opportunity arises.
Local Dynamics in Burbank
The borrowing conditions can also be influenced by the regional housing activity. Home values have weakened a little in Burbank, with median home prices decreasing by about two percent in the last six months. Local lenders reprice their mortgages. For those exploring mortgage lenders in Burbank, understanding both the national trends and these local price shifts can help determine the most advantageous time to buy or refinance. Such local intelligence can be the difference between the opportunity to get a good rate and spending more than is needed.
The surrounding areas of Glendale also have their own conditions that can affect the borrowing. Glendale home prices have been increasing by approximately 1.5 percent over the last quarter, indicating an indication of stable demand. For buyers seeking mortgage lenders in Glendale, evaluating local market trends alongside national rate forecasts can help identify favorable loan options. Through the knowledge of the rate fluctuation in response to the demand in the region, the borrowers are able to make more informed decisions and get good financing.
Identifying the appropriate lender is not just a numbers game; as its service and reputation matter. Borrowers searching for the best mortgage lender in Glendale often look for transparency, competitive rates, and flexible programs. Current rates are holding steady at a range of 6.5-6.9 on a 30-year fixed loan, so local lender knowledge is now a key to finding the loan that matches financial objectives. The advice of a reputable lender and some market knowledge can lead to savings and tranquility.
When the rate varies, time is also a major consideration for borrowers. There is a possibility that potential buyers and homeowners with low-rate mortgages in Burbank will be relieved when inflation does not get out of control. Analysts predict that 30-year fixed mortgage rates could stabilize in the low 6% by late 2025 if economic pressures ease. Preapproval by local lenders can help a buyer make a fast move in case the rates go down, making sure that he/she gets attractive deals before the competition comes in.
There are other options that the senior homeowners can explore, such as reverse mortgages. According to the statistics given by the National Reverse Mortgage Lenders Association, more than 50,000 Americans are making use of home equity every year with the use of reverse mortgages. A reverse mortgage broker in Burbank can guide retirees through these programs, offering cash as lump sums, monthly payments, or lines of credit. These alternatives allow financial flexibility without the monthly mortgage payments and thus making them a valuable planning tool in unpredictable rate environments.
The same opportunities are open to the Glendale homeowners. Programs of reverse mortgages in the region have gained popularity by almost 15 percent in the last two years. Reverse mortgage lenders in Glendale offer products tailored to the city’s property values, allowing retirees to release equity without selling their homes. Currently, reverse mortgages are quoted at 5.5-6 percent levels; therefore, the borrower is assured of stable payment and increased financial stability.
For many, evaluating a reverse mortgage in Burbank involves weighing immediate needs against long-term goals. Such programs may help fund college, early inheritance, or supplemental retiremen. Planning carefully ensures these products complement broader financial strategies while remaining sustainable even if mortgage rates fluctuate.
The reverse mortgage in Glendale market mirrors trends seen in neighboring cities. The home equity loans in the region provide retirees with extra cash while still owning property. As the median home equity of Glendale has been increasing approximately 4 per cent annually, reverse mortgages are an effective way of tapping into this wealth without interfering with other pension benefits. These programs should be adjusted to general financial planning by consulting knowledgeable lenders for homeowners.
Mortgage rates will likely remain in flux over the coming year, influenced by Fed decisions, inflation trends, and local market dynamics. Understanding these aspects will enable buyers, homeowners, and retirees to make wise decisions. Whether partnering with the best mortgage lenders, consulting brokers, or exploring reverse mortgage programs, preparation and insight are crucial. Together with the knowledge of the market statistics, local state of affairs, and product type, it turns out to be easy and strategically rewarding to navigate the housing market.
Q: How can I identify the best mortgage lenders for my needs?
The best mortgage lenders provide competitive rates, flexible terms, and personalized guidance. Understanding market trends, such as potential rate shifts to the low 6%–high 5% range, helps you choose a lender who aligns with your long-term financial goals.
Q: What should I look for when selecting mortgage lenders in Burbank?
When choosing mortgage lenders in Burbank, consider local pricing trends, lender flexibility, and current rate projections. Softening home prices in the area may create favorable borrowing opportunities if you act with preapproval in place.
Q: Why work with the best mortgage brokers in Burbank?
The best mortgage brokers in Burbank can access a wide network of lenders and help you secure competitive rates. Their guidance ensures you understand long-term mortgage implications, especially as rates fluctuate around 6.5%–6.9% for 30-year loans.
Q: How do mortgage lenders in Glendale adapt to local market trends?
Mortgage lenders in Glendale adjust their products according to median home prices and local demand. Buyers benefit by comparing lender terms while considering national rate forecasts to make informed financing decisions.
Q: What makes a mortgage lender the best in Glendale?
The best mortgage lender in Glendale offers transparency, competitive rates, and flexible options. Combining lender expertise with knowledge of local market trends helps borrowers navigate current mortgage conditions effectively.
Q: How can I secure a low-rate mortgage in Burbank?
To secure a low-rate mortgage in Burbank, monitor rate trends, and get preapproved early. Analysts predict rates may stabilize in the mid-5% range over the next year, offering potential savings if you act strategically.
Q: How can a reverse mortgage broker in Burbank help retirees?
A reverse mortgage broker in Burbank guides retirees in accessing home equity without selling their property. Options include lump sums, monthly payments, or lines of credit, providing financial flexibility while preserving homeownership.
Q: What services do reverse mortgage lenders in Glendale provide?
Reverse mortgage lenders in Glendale offer programs tailored to local property values. They allow homeowners to access equity for supplemental income, often without monthly mortgage payments, helping maintain financial stability during retirement.
Q: What are the key benefits of a reverse mortgage in Burbank?
A reverse mortgage in Burbank enables seniors to unlock home equity for retirement expenses, college funding, or early inheritance goals. Funds can be received as a lump sum, monthly payments, or a line of credit, without affecting Social Security or Medicare.
Q: How does a reverse mortgage in Glendale support retirement planning?
A reverse mortgage in Glendale allows retirees to access growing home equity, currently rising around 4% annually, while staying in their homes. This program provides supplemental income and financial security for long-term planning.
Home buying is not about signing papers, but it is a promise that determines your future financial life. People are frequently overwhelmed by the language and endless choices when taking out mortgages, and usually, it is one of the biggest financial decisions that people will undergo. That’s where the value of the best mortgage lenders truly shines. Having the right professional is to have someone who listens, teaches, and ensures that your loan does not work against you but rather in your favor.
Very frequently, big financial institutions use clients as entries in a spreadsheet. It is a rushy, impersonal, and baffling process. The Friendly Lender does things differently. They perceive every customer as a person with personal aspirations and situations.
This personal relationship also means that your mortgage is not a standard product but a customized package that can give you stability and tranquility. The thing is that this is not only about purchasing a house, but also a place where life will occur.
When someone chooses the best mortgage lender in Glendale, they aren’t just signing up for a loan; they’re choosing a partner for one of the most important journeys of their lives. Glendale property owners have been informed that the real estate business is competitive and that with the right guidance, everything is different. The Friendly Lender is a mix of personal care and local knowledge, making borrowers feel confident when going through choices, rather than uncertain.
Each borrower has his or her own requirements, first-time buyers, larger families, or those who are retiring and need to downsize. The Friendly Lender does not offer cookie-cutter loans but rather custom designs something that fits an individual scenario.
As an example, you may be flexible in your monthly payments, or you may be seeking the secure stability of a fixed-rate loan. They do not merely give you what the lender finds easy to provide, but they invent what is most profitable to you. That’s a game-changer.
Sick and tired of a banker reading off the paper? That doesn’t happen here. At The Friendly Lender, you get the guidance of real people and the desire to help you succeed. Halfway into the experiences of most of its clients, one encounters names such as David Kutner as capable professionals who go the extra mile to offer clarity and reassurance. The person will have that pressure off and make doing it a lot easier because they have you on their side. It is not so much about corporate formalities as about trust building.
Mortgages are threatening with their rates, terms, and conditions. Those complexities are just translated into plain English by the right lender. Consider the insistence, “It is going to be alright, this is what it really means to your wallet. That’s how clear The Friendly Lender is. And to be fair, to have a bit less stress on such a big investment would be welcome by anyone.
Although many individuals may go around shopping depending on the interest rates alone, it is not all. The best mortgage lenders offer more than just numbers; they provide peace of mind. They are aware of how not to fall into hidden traps, how not to turn paperwork into a nightmare, and how not to lose deadlines in the cracks. This is because once you make the right choice, you will be saving yourself the headaches in the future, and you will be safe in your choice.
It is not over just because you close on your mortgage. Things happen in life; you might upgrade your mortgage someday, or you might see me after you change your financial status. Working with the best mortgage lender Glendale means having someone you can call years later without hesitation. The Friendly Lender is trying to create that sort of continuous relationship, where you are never at a crossroads by yourself.
A mortgage is not a one-time deal; it is a step towards creating your dream life. When you associate with The Friendly Lender, you get more than a loan, you get a friend who can guide you through the process, helping you realize that you are not just an account number but a human being as well.
According to David Kutner, commitment is important, and trust and close attention to the individual are equally important as the loan itself. It doesn’t matter whether it is your first house or your future; with the right lender, the process will not be as tedious and will be much more fulfilling.
Q: How do I know if I’m working with one of the best mortgage lenders?
You can tell by the way they treat you. The best mortgage lenders listen to your needs, explain options in plain language, and provide loan solutions that fit your life instead of pushing a one-size-fits-all approach.
Q: Why should I choose the best mortgage lender in Glendale instead of a big national bank?
The best mortgage lender in Glendale offers a personal touch and understands the local market. Unlike large banks that treat you like a number, local lenders focus on your goals and create solutions designed for your specific situation.
Q: What makes the best mortgage lenders different from regular lenders?
The difference lies in how they value you. The best mortgage lenders don’t just look at credit scores; they focus on building a relationship, explaining details clearly, and ensuring your loan works for you both now and in the future.
Q: Can the best mortgage lender in Glendale help first-time homebuyers?
Absolutely. The best mortgage lender in Glendale takes extra time with first-time buyers, guiding them through the process, breaking down confusing terms, and helping them feel confident about their decision.
Q: Do the best mortgage lenders only care about interest rates?
Not at all. While rates are important, the best mortgage lenders also make sure you avoid hidden fees, understand repayment terms, and feel secure knowing your loan fits your lifestyle and long-term plans.
Q: How can I find the best mortgage lender in Glendale if I’m not sure where to start?
Start by asking questions, reading reviews, and scheduling a consultation. The best mortgage lender in Glendale will happily walk you through the process and prove they’re the right fit by focusing on your goals rather than just making a sale.
Q: Are the best mortgage lenders helpful even after closing on a home?
Yes, the relationship doesn’t end after signing. The best mortgage lenders stay connected to help with refinancing, answering future questions, and guiding you through new financial needs as life changes.
Retirement is not only about leaving a job, but it is about entering a new state of life where comfort, security, and peace of mind are the priorities. One of the most common questions many retirees ask is,
Will my savings run out?
Will I be able to sustain the same lifestyle that I have worked all my life?
These are good reasons for concern, but there is a possibility that pensions, social security, and investments are not effective in covering everything. That is an area where a new strategy to the use of home equity can come in, providing you with much financial flexibility without disturbing your lifestyle.
Consider that you have been paying on your home for years, now your home is paying you back a bit. A reverse mortgage is more than a loan; it is a means to release the equity of the property to assist in retirement living. In contrast to traditional loans, you do not have to pay a regular monthly fee; the debt is paid off at a later date, usually at the time of selling the house. It is a system that will be aligned with your demands and not against you so that you may live a more comfortable spill and decrease the concerns of finance.
The world of mortgages is like walking in a maze with a blindfold on! A reverse mortgage broker Los Angeles steps in to simplify the process. Brokers avoid cookie-cutter treatments, as they take their time to learn about your goals, the value of your home, and how this synergizes with your long-term vision. The city alone is not homogeneous- any retiree in Los Angeles may be of different professions and classes- therefore, having a more communicative individual who sees you as a person rather than a number makes the distinction between lostness and reassurance.
Burbank prides itself on its stable communities, home prices and community-focused culture. To those in retirement, unlocking equity in this case could spell out a better retirement plan. Choosing a reverse mortgage in Burbank can help you turn your home into a financial resource without saying goodbye to the place you love. It is not the theme of money but rather of maintaining lifestyle, neighborhood relations, and independence. That is worth its weight in gold to many.
No two retirees, as well as financial situations, are the same in any vertical. That’s why The Friendly Lender is unique in customizing the solutions to any particular customer. Have you ever experienced walking into a bank and feeling like a number in a queue?
No one likes that. Here, we can talk to you, person to person, not sales scripts. Your financial narrative is important, and the loan product is designed to wear like a second skin.
At one stage or another during the process, many people understand that it is worth having someone who knows how to do things. It is here that individuals such as David Kutner enter the scenario. With an expert helping you out with the process, there is no chance that a blind spot would be left uninformed. And with such informed guidance in hand, you will not find yourself mindlessly signing any papers; rather, you will make informed decisions empowering your retirement years.
There is no financial decision without any question regarding the same. Some are wondering whether reverse mortgages will diminish what they leave behind for the family. Some of them question the interest rates or the stability of the arrangement. The thing is, these are the reasonable questions, and a smart broker should not pretend they do not exist. Instead, you will have solutions, not questions. It comes down to transparency- either the solution best meets your demands, or at least you are fully aware of what you are considering. Transparency provides you with control.
Think of how much less time you can spend worrying about the bills, and more time enjoying the little luxuries of life, such as brunch with your friend, buying the grandkids extra treats, or taking that overdue road trip. One should not feel like they are playing a financial game of Monopoly during retirement; it should be a rewarding experience. That is what the right mortgage solution can deliver- breathing room to live the way you want. Your retirement days will yield you peace of mind with proper planning to be done in the present situation.
Here’s the bottom line. Working with a reverse mortgage broker in Los Angeles or considering a reverse mortgage Burbank is about reshaping retirement in a way that fits you. The Friendly Lender gets that, treating you as an individual with goals that we care about.
You can make an informed decision about the direction you choose with the help of reliable professionals like David Kutner, who can bring you freedom, stability, and security. The end of financial planning does not mean the end of retirement--rather, the beginning of putting the results to use.
Q1: Why should someone work with a reverse mortgage broker in Los Angeles instead of applying directly with a bank?
Working with a reverse mortgage broker in Los Angeles gives you more personalized options than a one-size-fits-all bank product. A broker takes time to understand your goals, compares multiple lenders, and tailors a loan that fits your retirement plan instead of leaving you with limited choices.
Q2: How does a reverse mortgage in Burbank help retirees manage their finances?
Choosing a reverse mortgage in Burbank allows retirees to tap into their home equity without moving away from a community they love. It can provide additional income for everyday expenses, medical costs, or simply give financial peace of mind during retirement.
Q3: Is a reverse mortgage broker in Los Angeles only for homeowners with high-value properties?
Not at all. A reverse mortgage broker in Los Angeles can work with homeowners across different property values. The key factor is how much equity you’ve built up, not the price tag of the home itself.
Q4: Can someone still keep ownership of their home with a reverse mortgage in Burbank?
Yes. With a reverse mortgage in Burbank, you remain the homeowner and can continue living in your home as long as you meet the loan obligations, such as property taxes, insurance, and maintenance.
Q5: What’s the biggest advantage of using a reverse mortgage broker in Los Angeles?
The biggest advantage of a reverse mortgage broker in Los Angeles is having someone who advocates for you. They explain the fine print, compare loan products, and ensure you don’t feel like just another number in a sales quota.
Q6: Who is eligible for a reverse mortgage in Burbank?
Homeowners typically need to be at least 62 years old and have significant equity in their property to qualify for a reverse mortgage in Burbank. Meeting loan requirements, such as keeping up with property-related expenses, is also necessary.
Q7: How do I know if working with a reverse mortgage broker in Los Angeles is right for me?
If you’re looking for guidance, transparency, and tailored solutions rather than generic loan offers, a reverse mortgage broker in Los Angeles is a smart choice. They help you explore whether a reverse mortgage aligns with your retirement goals.
Pantone is a universal language of color that you can use to select beautiful colors to paint the home. Interestingly, each year, Pantone selects a color of the year that embodies what's happening in society.
In 2021, the Pantone color of the year was awarded to two colors, Illuminating 13-0647 and Ultimate Gray 17-5104. These two colors highlight how two different elements can come together and support each other. This is the thought behind selecting them based on what has occurred over the last year.
The bold yellow and deeper gray capture feelings of promise, friendliness, and thoughtfulness, which may be a great reason to add those colors to a home. Should homeowners repaint their home in these colors, though, before they sell?
When Psychology Matters, Remember Pantone's Color of the Year
Pantone's color of the year is normally the start, or continuation, of a yearly color trend. That can make it an excellent color to incorporate into your home, especially if you are selecting the color based on its meaning.
However, most people don't use Pantone colors to completely repaint before selling their homes. Instead, they use the Pantone color of the year to add pops of color or a touch of the modern color palette before putting the home on the market.
How Can You Incorporate the Pantone Color of the Year?
For example, if a home is already based on a neutral color scheme in grays or blues, adding a pop of the color Illuminating draws the eye. Using yellow as an accent color is a great way to draw attention to impressive parts of the home.
For brighter spaces, toning down the room with a cooler, relaxed gray is a good way to make the space welcoming to those who love color as well as to those who have a more traditional approach to home decorating.
Repainting an entire home in the Pantone color of the year is an option if homeowners need to repaint anyway, but if they don't, then it could be an expensive option. To reach the most buyers, the better bet is to choose a neutral palette that potential buyers can envision in their own preferred color scheme.
The housing market is extremely competitive right now because mortgage rates are still near record lows. While mortgage rates are rising this year, the rates are still attractive to many individuals and families who are looking to buy a home. At the same time, when mortgage rates change, families need to re-evaluate their budgets. A change in mortgage rates will impact the monthly mortgage payment, so families need to know what they can afford.
Furthermore, because the market is so competitive, sale prices are going up as well. As mortgage rates and home prices rise, families need to determine what their monthly budget is. Even a small increase in the mortgage rate can make a big difference.
Families Must Do The Math To Figure Out Their Monthly Mortgage Payments
Families need to figure out what monthly mortgage payment they can afford before they make an offer on a home. The factors impacting the monthly mortgage payment are the loan amount, the interest rate, and the repayment period. Many homeowners take out a 30-year mortgage; however, borrowers might be able to adjust the term to meet their specific needs. A few important points to remember include:
Families can adjust all of these factors to find the right monthly payment for their budgets.
There Are Ways To Reduce The Interest Rate On A Loan
Finally, there are steps that families can take to reduce the interest rate on their loans. For example, families might be able to put more money down to qualify for a better interest rate. This could reduce the monthly payment, keeping the loan amount within the family's budget. Or, families might be able to pay down other types of debt such as credit card debt or car loans. If families have a lower debt to income ratio, they might qualify for a better interest rate. This could help families afford a larger house without having to spend more money.
Reevaluate
Moving into your first home is an exciting experience, but it can also be overwhelming. To manage the move properly, you need a wide variety of tools you may never have considered before. You may not realize you should have purchased a certain item until you need it.
To prepare for the move into your new home, make sure you have all of the items listed below.
Storage For Documents
As a homeowner, you will need to keep and organize a variety of documents, including receipts, warranties and even your mortgage papers. Consider buying a fireproof box or cabinet to store these items.
Fire Extinguisher
Every homeowner should have at least one fire extinguisher on hand. Make sure your fire extinguisher is stored in a location that can be accessed easily in the event of a fire.
Extension Cords
Extension cords can be useful in a variety of situations, from plugging in appliances that are too far from an outlet to decorating your home for the holidays. Be sure to buy multiple cords in different lengths so you can use them for different purposes.
Smoke Alarms
If your home is not already equipped with working smoke alarms, you need to purchase and install them as soon as possible. Be sure that you check your alarms every four months and change the batteries as needed.
Cleaning Supplies
Another important purchase for every new homeowner is cleaning supplies. While some of these supplies may be used on a daily basis, others may be used less frequently. Nonetheless, it is a smart to have all of these items on hand. Examples of cleaning supplies you may need include window cleaner, toilet brushes, brooms, mops, sponges and paper towels. If you have carpet in your new home, you may need to buy a vacuum cleaner as well
A Basic Tool Kit
Every new homeowner will need some basic tools. Purchasing these tools in advance will make both small and large tasks easier. Be sure your toolkit includes a utility knife, flashlight, measuring tape, screwdrivers, wrenches and hammers. Having some different kinds of tape on hand is also a wise idea.
Exterior Door Locks
When moving into a new home, it is always a good idea to change the locks. Although the previous owner is asked to turn over all the keys to the home, it is impossible to know whether other keys exist. Buying your own door locks will protect against break-ins and give you peace of mind.
Lawn Equipment
If you will be responsible for maintaining your own lawn and landscaping, you will need to invest in the proper lawn maintenance equipment. Examples of items you may need include snow shovels, sprinklers, rakes, shears, shovels and water hoses. You may also need a lawnmower.
You may still need to make additional purchases after you have everything on this list. However, this list covers many of the basic things you will need to begin life successfully in your new home.
Becoming a homeowner for the first time is exciting. However, for many potential buyers, the process can also be confusing. Below is an overview of the steps you need to complete in order to buy your first home.
Work Out The Finances
The first step in buying a home is deciding on a price range. This price range will be determined by your income, as well as your own comfort level with home prices and monthly payments. Consider all of these factors to determine the maximum amount you are willing to spend on your new home.
In most cases, you will be required to pay the downpayment and closing costs upfront, even if you are financing the rest of the home's purchase price. In general, most lenders will expect a downpayment equal to 20 percent of the home's purchase price. Otherwise, you may be required to pay mortgage insurance. Before buying a home, set enough money aside to cover these expenses.
For most homeowners, the next step in the home buying process involves looking into different mortgage options. Unless you have enough money to purchase your home for cash, you will need a mortgage. Be sure to compare quotes from different lenders before making a choice to be sure you are getting the best deal. Once you have chosen a lender and a specific type of mortgage, ask for a preapproval letter that you can attach to any offers you make so that you will be a more reliable and attractive buyer.
Hire An Agent
When searching for the perfect first home, hiring a real estate agent to represent you throughout the process is highly recommended. Your real estate agent will act as a buyer's agent, which means they will have your best interests at heart. When you don't have a buyer's agent, you will be dealing only with the seller's real estate agent instead. Because this individual has been hired to represent the seller, they will always put the seller's needs above yours.
Find The Right Home
Once you have a qualified agent to represent you and a preapproval letter from your lender, it is time to start looking for your new home! Your real estate agent will help you comb through listings and choose the properties you want to see. Next, you will walk through each home until you find the one that is right for you. After you have chosen a home, your real estate agent will help you prepare and submit an offer to the seller.
The process of buying your first home may seem overwhelming at first. However, by following these steps, you can simplify the process and become a homeowner with ease.
Home buying is often made possible or unreachable due to the local and national economy. Fortunately, what goes up, must come down. So, for buyers who can wait, economic changes in supply and demand can create opportunities. These shifts in real estate are known as buyer’s markets and seller's markets.
The seller's market specifically tends to be the harder one for homebuyers. In short, sellers see a lot of demand, so they can command higher prices for a sale. Things are competitive, sell fast, and inventory is low.
For buyers, it’s a headache, but there are ways of handling the challenge.
Understand Your Local Market Better
Many people might throw out the statement locally, “Oh good luck, it’s a seller's market,” but that’s not necessarily the case until you can confirm it objectively. It may be that certain neighborhoods have high demand, but overall regional inventory is available.
Understanding your local market as a whole and by neighborhood gives a buyer a far better idea of what’s really going on and how to compare homes in different locations.
When Making an Offer, Go With Your Best Offer First
The worst that can happen is someone responds “no.” You didn’t really lose anything with a rejected offer. However, if they accept your offer as-is, then you may have scored a better deal than trying to hedge and bargain down after the fact. Negotiation can be more difficult in a seller's market, and sellers can be quite motivated to drop a negotiation the instant a second buyer becomes available.
Be Prepared to Move Quick and Bid Fast
Sellers’ markets go fast. Bids are taken in a day and a sale happens the next day or by that evening. If going out to buy, you need to be ready to make an offer on-site. That means also having your pre-approval for financing squared away and having enough liquid assets to cover the down payment along with enough cash to cover closing fees as well. If you’re not wired up already, you will lose sales waiting for your financing prep to get taken care of.
Have Cash, Will Talk
Buyers who are able to show they have the cash to purchase make the process go much more smoothly. Sellers are far more interested in parties who can show they are a firm sale versus those with financing approval still pending.
Known as earnest money, a deposit placed on a home with larger than the minimum amount will get attention and commitment faster than someone with a nice bid but waiting for financing approval, thereby delaying the seller.
Anticipate Non-Cash Sweeteners
Sellers often have interests or desires to meet when letting go of a home. A buyer who can fathom what these are can improve a buying position considerably.
In some cases, it might be as simple as agreeing to additional time for a seller to move out.
In other cases, the seller might have an attachment to the home that they want to keep protected versus seeing it destroyed by a new seller.
Finding these things out can help a buyer make commitments in a sale that make it better for the seller and for the buyer versus other bids.
Sellers' markets are hard, but there are ways around the challenge and getting into a home you want. By being flexible, creative, and ready you stand a better chance than bidders with half a heart in but one foot still hanging out.
If you’re selling a home today, you know that it’s a seller's market in many areas throughout the country. What you may not know, though, is that there are still things you can do to make your home even more desirable. From adding SMART home features to properly staging a home, there are plenty of things you can do to drive up the price and create a frenzy of bidding activity for your home. One of those things is to add green features to your home.
What Are Green Home Features?
Adding green features to your home doesn’t mean you’re painting the walls green or going for some odd decor. Instead, it means you’ve added one or more environmentally friendly features to your home. The following are a few green features you can add to your home that will add incredible ROI when the time comes to sell your home.
Why Do Buyer’s Desire Green Home Features?
Buyers today are savvier than ever when it comes to the plight of the planet and are constantly seeking changes they can make to reduce carbon footprints and conserve resources. Homes that provide these types of features allow them to do precisely that. More importantly, they don’t have to adjust their lifestyles or even think about making these changes because they’re already made.
Giving Buyers What They Want?
At the end of the day, when you install certain green features in your home, you’re giving prospective buyers the personal satisfaction of knowing they’re purchasing a planet-friendly home, without forcing them to do the work for themselves. It’s a win for those who have grandiose intentions for saving the planet to actually follow through on those intentions.
Will Green Home Features Help You Sell Your Home Faster?
That depends on the local market in the area where you’re selling. However, in many areas across the country, it is a winning proposition. Work with your real estate agent to see if adding one or more of the green features listed above can help you sell your home faster or for a higher price.
Buying a home in another location far away can be challenging in terms of logistics as well as moving, but it becomes additionally harder for pet owners who may not be able to take their bigger animals with them right away.
Oftentimes folks may have to prepare a newly-bought home for a pet, make multiple moving trips or might not be able to take the new pet to the location at all for a while. All of these situations can be frustrating and difficult for both the pet and owner. Some available solutions can make some sense depending on the situation.
Family or Friends
Ideally, if a person has a family member or friend whom the pet can stay with for a temporary duration, that can be an advantage. If doing so, make sure your pet is already good around other people as it will have anxiety being left in a new place with unknown people for a long time and missing you. Also, make sure whom you leave the pet with has had experience with animals. Folks who have never had a big dog for a pet, for example, may hit you with a surprise when they suddenly can’t care for your pet being overwhelmed a day or week into the favor.
Short-term and Long-term Kennel Services
Alternatively, kennel and animal boarding services can help. Keep in mind you get what you pay for. Low cost kennels will likely keep your animal in a basic unit, often cement, with few amenities aside from water and food and an hour of exercise time. It’s a bit like prison for an animal. Better services focus on care for animals lodged, give them exercise and socialization time, keep their cages or containers clean, and interact with the animals when feeding. These facilities cost more, but they tend to keep the pet mentally healthier during the stay.
Permanent Separation
In some cases, a home buying move may require one to give up their pet completely. The first step should always be to try to give the pet to family or a friend who will take care of the pet right and wants to take on the pet willingly. These are the best situations, and the pet likely may know the person already. It will still be depressed for a while, but the pet will transition better.
If you don’t know anyone willing and a separation is a must, don’t immediately resort to the local pound or animal control as they unfortunately end up having to euthanize animals they can’t adopt out. There are multiple rescue groups based on specific breeds who will take the pet and try to adopt it out to a willing and vetted family and new home that can handle the breed. These groups work nationwide through networks and move former pets to new homes regularly.
Separating from a pet is no fun and often painful, but there are options to provide care temporarily or long-term versus just leaving a pet with local animal control. Planning and some research will typically produce multiple choices locally, and they could very well make your move and new home transition easier.
Most of the focus on stimulus checks has been on "when" they will arrive, but if you are in the market for a new home (and mortgage) you should know how that payment will impact your financing. Part of the latest Covid 19 relief package includes payments and protections for existing borrowers and renters, but what about those who are looking to buy? According to the IRS, here are a few things to know about how your stimulus impacts your upcoming mortgage.
Stimulus Money Is Not Taxable
Any funds you are qualified to receive are not taxable; this is important to know as you move forward with your purchase because it allows you to properly anticipate your tax burden for the coming year.
Stimulus Money Is Not Income
While funds from the stimulus can be used however you'd like, including as part of your downpayment, they are not considered income. If you currently qualify for an income-based mortgage incentive or program, having a one-time boost in income could work against your housing plans. If those extra funds counted as income, some families could find themselves no longer qualifying for programs and loans that have income guidelines.
Stimulus Money Can Be Used For Your Mortgage
Whether you use it for your down payment, pay points to reduce interest, or even pay off remaining debts to improve your ratios, this money can benefit your home buying plans.
Every debt you pay regularly impacts the amount of money you can afford to borrow for your mortgage -- using a stimulus payment to eliminate one or more credit cards or even car payments can increase the amount of monthly payment you can afford. Making these payments can also improve your credit score, which could qualify you for a better rate.
Since the current stimulus program can benefit home buyers in several key ways, there is no better time to buy than now. Use your stimulus to maximize your buying power and get the best possible mortgage terms and you'll be able to access a wider variety of homes.
Aside from owning a business, owning rental property has been one of the top investment choices for people, most commonly done through buying a second home. Handled right, income properties can generate significant gains for investors, both in terms of real estate appreciation as well as monthly income from tenants. However, it’s not sure a surefire approach to financial success. There are a lot of ways that a budding real estate investor can go sideways with an investment property home purchase as well.
Watch Out for the Seller-Renter
Many times people will sell a home but then offer to rent it from the buyer, essentially trading their home title for ready cash but not really moving out. These situations come up a lot where someone wants to stay where they are but doesn’t want to deal with a mortgage anymore and would rather rent. They are also frequently listed as buyer-direct home sales versus using a traditional route through a real estate agent and broker. The big risk here is that the seller is able to unload the home on the buyer, and then stop paying the rent a few months in. The deal allows them to avoid foreclosure but then it becomes the landlord’s problem to actually evict. By the time the legalities are done and eviction is finally achieved, many landlords have taken a loss on the property and end up selling again. It’s better to have a clean sale with no further obligation between the parties and start with brand-new renters altogether.
Have a Good Strategy Ahead of Time
There are different ways to make a net profit from a rental property. Depending on the cost of financing, down payment and expectations of holding a residential property the driver for profit can be different. Some expect to make a gain both from rental income as well as equity growth. Some realize with the cost of financing, the better plan is to use rental income to pay for the mortgage as much as possible and make the net gain on the property equity appreciation over time. How long a property will be held can come into play as well. Knowing going in what one’s strategy is can help avoid mistakes once a commitment has been made or being surprised if the market has a downturn etc.
Tax Benefits are Different
An income property doesn’t get the tax same deduction benefits of a first home. The mortgage interest deduction, one of the biggest tax benefits possible for an individual is not possible with a rental income property. However, if you are operating your rental property purchased as a business, many of the expenses of running that business can be deducted through the Schedule C form process with an income tax return. Check with a tax advisor or attorney to be sure for your specific situation and interests.
Owner Responsibilities
Just because you rent the property doesn’t mean you’re off the hook. As a new buyer and owner, you’re still responsible for the property taxes due, HOA assessments, utilities and other costs tied to the property. Unless you contractually make the renter responsible, the tax, HOA and utilities will address the property in your name as the owner. Some forget this fact and get a nasty surprise in the mail with a tax or assessment lien on their property.
In short, buying a second home as an income property has the potential for significant investment gain, but it doesn’t operate on auto-drive. You need to still be involved quite a bit and watch whom you rent to when protecting your property interest.
The idea of buying a home is challenging enough as the process requires a lengthy approval validation, paperwork, financing, and the actual move with logistics. However, when one really looks at what typically occurs with relocation, buying versus renting can start to make more sense over time.
Finances Have to be In Order
Buying a home more than once every ten years requires a good amount of discipline on one’s personal finances. Most of the initial decisions and approvals will depend heavily on keeping one’s debt versus income ratios in line and viable. That also means saving up a lot to have sufficient cash flow for fees and your down payment. It also means not letting credit cards get out of hand or taking on other significant debt unless necessary as both weigh against one’s ability to obtain new financing for the next home purchase.
Renting Versus Owning
Renting or leasing tends to be the go-to option during a relocation because it tends to be easier upfront, has fewer requirements to achieve, and involves less of a significant commitment financially. After all, what happens if there is another relocation just a year later? However, most relocations are fairly defined in time. Anything under a year would make sense for renting, but when one starts getting beyond a year, buying starts to become far more appealing.
First, all the dollars one pays in rent are a sunk cost. If one buys, some of that money goes into home equity. Second, many companies and organizations who relocate their people often have connections for quick purchasing and residential needs, leveraging corporate interests for their employees. This allows for the rotation of homes from one employee to the next and makes buying easier for longer-term stays.
Third, a purchase for a shorter-term stay doesn’t have to be a full-scale home. Smaller units that cost much less are easier to close and can work just as well for temporary living. Relocating buyers should really consider a wide range of housing options in a buy versus just a strict replacement of what they had before.
Finally, market costs in the target location have to be considered. Some markets are very affordable and might be cheaper than renting month to month but others are astronomical, and it simply doesn’t make sense to buy in these regions for a short-term stay.
The Bottom Line
Understand with renting everything paid is gone and won’t be recovered in any form at all. It’s a lost expense. That can be thousands of dollars after one year alone. Buying will have fees, but the money spent on the mortgage each month buys equity which can be recovered in a sale, plus a possible gain as well down the road. Buying doesn’t work in every situation where one is relocated, but it can be a viable option in affordable markets and when one is staying longer than a year.
As always, check with your local real estate professional for the best advice on your relocation and your personal financial situation.
Twenty years ago the economy was putting the dot-com bubble behind it, and people were buying homes. The high majority of folks worked for someone else; they received a paycheck, were given a W-2 from their employer, and filed their income tax returns accordingly.
This also provided easy documentation to loan officers when folks wanted to borrow a mortgage to buy a home. As of 2019 36 percent of workers in 2020 were identified as bona fide gig workers per the federal government, or a bit more than 1 out of every 3 workers. That change translates to mortgage application processes today.
However, house loan processes have been particularly strict since 2009, especially due to how flexible and liberal loan reviews were at the time during the 2000s real estate bubble that ended that year and almost took down the major banking system in the collapse. For gig workers who essentially function as their own small businesses or as independent contractors, there is no consolidated income report aside from income tax filings.
Most have earned their money from multiple sources to make up a full living income. As a result, matching gig income to a traditional mortgage model can be challenging. Here’s what gig workers should anticipate and be prepared to answer as a result.
Definitive Proof of Income
For the gig worker proof of income is practically the same as showing how a small business produces a net profit sufficient to be invested in when asking for a business loan. As a gig worker, you won’t have a W-2 statement that is accepted as universal proof of your income and ability to pay a loan payment. So, you will need to provide a substitute that can be independently verified.
That means your income proof will need to show your bank statements evidencing all major payments coming in as well as matched by your IRS Schedule C and IRS Form 1040 showing how your income is arrived at. Because IRS forms are under penalty of perjury, they are considered a reliable income proof source for lenders. Some lenders may go further and want to see MISC 1099 forms received by clients for the last three years as well. Bank statements can reinforce assets’ availability as well, but they are not a full substitute.
Keep Your Credit Card Debt Nil or Low
Many independent workers ride on credit cards to pay bills in between jobs. Unfortunately, this also inflates personal debt, which mortgage lenders don’t want to see. To be successful with a mortgage as a gig worker, your credit card balances need to be kept as low as possible. You can have other debt, but it is best to be structured like a student loan or car loan. These don’t change from month to month and are predictable, but a credit card balance can grow quickly, creating a lending risk. Pay pending bills, lower the balance, and shift the debt to other financial tools if you can. The less revolving debt (credit cards), the better.
Boost the Down Payment
Having a larger down payment works wonders in any mortgage application. The traditional amount is 20 percent of the price of the home you want to buy. If you’re in that range, great. If not, save more. Talk with your lending professional to find out about lower down payment options as well. Don’t forget your closing costs. In some cases, those can be contributed by the seller of the home. Once again, your lending professional will be able to give you the best advice for your situation.
Be Realistic
Finally, don’t apply for a mortgage well beyond your income level and savings. You’re just wasting a lot of time and setting up for a disappointment. Focus instead on having a sizable down payment, documented income, and a home price well within your combined payment range. This will bolster your application and resolve a lot of concerns that otherwise get a denial.
Talk with your real estate and mortgage lending professionals for details based on your personal situation.
There are lots of people who are looking to take advantage of low interest rates to refinance their homes. This provides homeowners with an opportunity to save tens of thousands of dollars over the life of the loan. It could also allow homeowners to access equity to finance a home renovation or shave years off their mortgage. On the other hand, there are also a lot of people who make mistakes during the refinancing process. What are some of the mistakes that everyone should make sure they avoid?
Avoid Saying Yes To Loan Forbearance On A Mortgage
First, try to avoid mortgage forbearance if you can. If homeowners decide to pursue mortgage forbearance, they might have a bit of extra cash on hand because they will be able to skip a few payments. On the other hand, this could signal that the homeowner has issues related to his or her cash flow. As a result, homeowners might not get the best offer possible when they apply to refinance their mortgage down the road.
Always Check The Credit Score Before Applying
Next, homeowners should always check their credit scores before they decide to apply for a refinancing opportunity. It is not unusual for people to have mistakes in their credit scores. Nobody should have to pay for someone else’s financial mistakes. Homeowners have to remove these inaccuracies from the credit report before they apply for a refinancing opportunity. That way, homeowners have access to the best terms possible.
Check The Estimate Before Agreeing To A Refinance
Finally, homeowners also have to check the estimate before they agree to a refinance. Even though there are opportunities to save a lot of money, there are other fees involved. These could include points, origination fees, and other fees that could be included in closing costs. Homeowners have to be ready to pay these costs if they are going to refinance their loans.
Avoid These Mistakes When Refinancing
These are a few of the most common mistakes people make when they go through the refinancing process. By avoiding these mistakes, homeowners can place themselves in the best position possible to save money by refinancing their loan to more favorable terms.
