Buying A Home? Mortgage Rates Still Low; Increasing Soon

Are you in the market to buy a home in the near future? If the Federal Reserve raises interest rates, will that affect your decision to obtain a home loan and buy a house in 2015?

As the Federal Reserve signals it’s intention to raise interest rates, borrowers are scrambling to get deals done now. There’s been a big influx of home loan applications in 2015, driven by people looking to either buy a home or refinance their current home in order to lock in lower interest rates.

On average, a 30-year home mortgage loan fetches a 3.8% interest rate now, according to Freddie Mac. That number is down from a year ago when interest rates were closer to 4.3%. The Federal Reserve cut rates to historic lows in 2008 in part to reset the housing market, which collapsed when the housing bubble burst.

With the Federal Reserve likely to raise interest rates this year, it will force a mortgage rate hike, experts say. That said, it’s uncertain if that will cause a decrease in home sales in the U.S. housing market.

The 10 Mortgage Commandments When Buying A Home

Home Loan or Mortgage Loan in Dayton Ohio

When buying a home and applying for a mortgage, you should always follow a few important rules. Once you’ve been pre-approved for a home loan, searched homes for sale, submitted an offer to purchase and have an accepted contract, you must now secure the mortgage loan.

Just because you have a pre-approval letter from a mortgage professional (lender) doesn’t necessarily mean that you are able to secure the mortgage loan and close on the home. Remember this: your home loan is never secured until you’ve actually closed on the home. In order to ensure you’re home loan process goes as smoothly as possible, please follow these 10 commandments.

1) Thou shalt not change jobs, become self-employed or quit your current job.
2) Thou shalt not buy a car, truck or van (or you may be living in it).
3) Thou shalt not use charge cards excessively or let your accounts fall behind.
4) Thou shalt not spend money you have set aside for closing costs.
5) Thou shalt not omit debts or liabilities from your home loan application.
6) Thou shalt not buy furniture for your new home before closing on your new home.
7) Thou shalt not originate any unnecessary inquiries into your credit.
8) Thou shalt not make large cash deposits into your bank account.
9) Thou shalt not change banks, bank accounts or financial institutions.
10) Thou shalt not co-sign a loan for anyone.

If you’re buying a home in Dayton Ohio or surrounding areas and would like to speak to a mortgage banker please contact Matthew Edwards at Citizens Home Loans of America, Inc. | NMLS# 1026303 | OH# LO.024146.001

Matthew Edwards – Mortgage Banker
7601 Paragon Road #202
Dayton, OH 45459
(937) 607-3741

Selling With The Best Real Estate Listing Agents in Dayton

Selling My Home in Dayton Ohio | Real Estate Listing Agent

Are you selling a home in Dayton Ohio? Determining the best real estate agent to list your home for sale should be a well thought out choice. Two of the biggest mistakes home sellers make when choosing a listing agent are selecting an agent based on:

1) Hiring a real estate agent that gives you the highest list price for your home.

2) Hiring a discount brokerage to list and sell your home for a lower commission.

Upon reading this, a seller might say, “What? Are you crazy?” Sellers want to list their home for sale at the highest possible price, net the most amount of money, and pay the least amount of commission as possible. But the two criteria listed should play absolutely no part in helping you choose a listing agent – especially if you want a competent Realtor that keeps your best interests at heart.

Do Not Choose A Realtor Based On The Highest Suggested List Price

There is not one real estate agent in Dayton Ohio that can tell you how much your home will sell for. A listing agent can show you comparable sales (comps), pending sales and active sales within a 1/4 mile, 1/2 mile, 3/4 of a mile and even 1 sq. mile from your home. But you (the seller) choose the sales price and potential buyers will tell you if the price is right.

1) In order to secure a listing, some agents contort the truth
Because no agents can guarantee that your home will sell for a specific price, the listing agent who suggests the highest price is probably exaggerating the numbers. Ask the real estate agent to show you numbers supporting the inflated list price. More than likely, the agent will not be able to show you comparables supporting their inflated list price. If they do show you comps supporting the inflated list price, make sure the agent is not showing you homes that are located in a different neighborhood.

2) Talk to a listing agent who offers you a range
There should always be a price range. There may be a $10,000 to $15,000 price difference from the low-end versus the high, but there should always be a range in price. When listing a home, there are many different factors that determine the price range. Some of those factors include location, school district, home improvements, and the current market.

3) Correctly pricing a home to sell is an art
Pricing your home correctly from the beginning is one of the most important factors in selling your home. The optimal time to receive an offer on your home is within the first 30 days it’s been on the market. If your listing agent has done a good job and your home is priced right, you’ll more than likely get an offer. If your home is priced too high, you may not even get any showings; buyers will avoid your home and you’ll eventually end up reducing the price, leaving potential buyers wondering what’s wrong with your house.

Be Careful Choosing A Real Estate Agent That Offers A Lower Commission

Yes, there are always underlying circumstances as to why a real estate broker or real estate agent is willing to discount his/her commission. Most of the time, it’s the only way the broker or agent feels he/she can compete in a highly competitive business. Generally, real estate brokers/agents are willing to cut commission because they are unable to compete with other highly skilled Realtors in areas such as negotiation skills or internet marketing (advertising).

If the only real benefit a real estate agent brings to a table is a cheap listing fee (lower commission rate), ask yourself why. Is the real estate agent desperate for business, unqualified or both?

Circumstances Where A Qualified Real Estate Will Offer A Lower Commission Rate

There are a few specific instances where a fully qualified real estate agent will negotiate a lower commission rate to list your home for sale.

1) You’re not only listing your home, but also buying a home utilizing the same real estate agent for both transactions.

2) You’re willing to pay for all advertising materials & other expenses related to the sale of your home.

3) You do not have enough equity in your home to pay the full 6% commission rate.

4) You have referred other business to your real estate agent.

5) You’re selling multiple homes.