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6 Things You'll Love—and Hate—About Buying a Home This Spring

by Amy McLeod Group


Welcome to the best—and worst—time to buy a home: spring! Yes, it's peak home-buying season. However, it’s no bed of roses.

Knowing what to expect is half the battle, and can help you use these highs and lows to your advantage!

So consider this an essential prep course. Ready to dive into the best of times and the worst of times for home buying?

You’ll love: All the inventory

One of the best things about buying a house during the spring is that you have a lot more options to choose from.

“New listings tend to flood the market in April and May,” says Kimberly Sands, a real estate broker in Carolina Beach, NC. Just keep in mind that with so much inventory out there, you’ll want to make sure to stick to your search and price parameters to avoid getting overwhelmed.

You’ll hate: All the competition

Busier times mean more buyers and, thus, more competition—which explains why bidding wars are more common during the spring, says Chris Dossman, a real estate agent with Century 21 Scheetz in Indianapolis.

As a result, you have to act fast when the right listing pops up, says Seth Lejeune, a real estate agent with Berkshire Hathaway in Collegeville, PA. Signing up for instant alerts, so you can see homes as soon as they hit the market, can help you stay a step ahead.

That being said, don’t expect a computer to do all the work for you. In hot markets, listings may be scooped up before they are even posted online, which is why most housing experts suggest working with a real estate agent throughout the home-buying process.

You’ll love: All the open houses

More homes on the market mean more open houses for you to attend. That’s exciting news for buyers who relish ogling homes in person. Going to more open houses means you’ll get a better feel for the neighborhood you’re interested in, while also giving you the opportunity to size up the other home buyers you’re going up against.

But with so many open houses to hit, make sure to plot out on a map the ones you want to see, with the times they're open, in order to maximize your time.

You’ll hate: The time pressure

Great listings get snatched up quickly year-round, yet home buyers are under even more pressure when there's more competition among buyers. You have to be prepared to make an offer fast, since indecision could potentially cost you your dream home. That’s why it’s crucial to zero in on what type of home you’re looking to buy and what your price range is before you start seriously looking, Dossman says.

Moreover, you should get pre-approved for a mortgage before you start your home search. Plus, having a letter from a mortgage stating that you’ve been pre-approved for a loan will speak volumes to a home seller, says Linda Sanderfoot, a real estate agent at Coldwell Banker in Neenah, WI.

“Sellers want reassurance that you’ll be able to obtain a home loan,” says Sanderfoot, “otherwise the deal can fall through.”

You’ll love: Shopping in warmer weather

You can breathe a sigh of relief knowing that the season’s warmer weather makes for a more enjoyable house hunting experience. After all, who enjoys trudging through snow or suffering through cold weather to look at houses? No one! Also, clearer skies and warmer temps make for better moving conditions.

You’ll hate: Higher prices

Home buyers generally have more wiggle room to make lowball offers during the slower seasons, since there’s less competition. However, buyers have less negotiating power during the spring. Therefore, “be prepared to pay full list price for a house, assuming it’s been priced at fair market value,” says Lejeune.

Also, if possible, be prepared to offer a seller something that other buyers won’t, such as a longer closing period or a rent-back agreement so that the seller has extra days to move out. This is where having a great buyer’s agent comes in; a savvy agent will talk to a listing agent to find out what the seller is looking for—giving you the ability to make a more attractive bid.

The bottom line

Spring home-buying season has its pros and cons, but by preparing for them you’ll be in a much better position to clinch your dream home. And, if you don’t manage to buy a house this spring, summer is still a great time to buy a house, too.

Contact The McLeod Group Network to find your new home! 971.208.5093 or admin@mgnrealtors.com 

By: Realtor.com, Daniel Bortz

7 Things To Avoid After Applying for a Mortgage!

by Amy McLeod Group


Congratulations! You’ve found a home to buy and have applied for a mortgage! You are undoubtedly excited about the opportunity to decorate your new home! But before you make any big purchases, move any money around, or make any big-time life changes, consult your loan officer. They will be able to tell you how your decision will impact your home loan.

Below is a list of 7 Things You Shouldn’t Do After Applying for a Mortgage! Some may seem obvious, but some may not!

1. Don’t change jobs or the way you are paid at your job! Your loan officer must be able to track the source and amount of your annual income. If possible, you’ll want to avoid changing from salary to commission or becoming self-employed during this time as well.

2. Don’t deposit cash into your bank accounts. Lenders need to source your money and cash is not really traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.

3. Don’t make any large purchases like a new car or new furniture for your new home. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher debt to income ratios… higher ratios make for riskier loans… and sometimes qualified borrowers no longer qualify.

4. Don’t co-sign other loans for anyone. When you co-sign, you are obligated. As we mentioned, with that obligation comes higher ratios as well. Even if you swear you will not be the one making the payments, your lender will have to count the payment against you.

5. Don’t change bank accounts. Remember, lenders need to source and track assets. That task is significantly easier when there is consistency among your accounts. Before you even transfer money between accounts, talk to your loan officer.

6. Don’t apply for new credit. It doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.

7. Don’t close any credit accounts. Many clients have erroneously believed that having less available credit makes them less risky and more likely to be approved. Wrong. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both those determinants of your score.

Bottom Line

Any blip in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. The best advice is to fully disclose and discuss your plans with your loan officer before you do anything financial in nature. They are there to guide you through the process.

Let The McLeod Group Network assist you in finding your new home! 971.208.5093 or admin@mgnrealtors.com 

By: KCM Crew

4 Reasons to Buy a Home in the Spring

by Amy McLeod Group


Spring has sprung, and it’s a great time to buy a home! Here are four reasons to consider buying today instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest U.S. Home Price Insights reports that home prices have appreciated by 4.4% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.6% over the next year.

Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year fixed rate mortgage came in at 4.41% last week. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the National Association of Realtors are in unison, projecting rates will increase by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You Are Paying a Mortgage

Some renters have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move On with Your Life

The cost of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Examine the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, greater safety for your family, or you just want to have control over renovations, now could be the time to buy.

Bottom Line

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Let The McLeod Group Network assist you in finding your new home! 971.208.5093 or admin@mgnrealtors.com 

By: KCM Crew

Top 10 Questions to Ask a Mortgage Lender: Do You Know Them All?

by Amy McLeod Group


What are the best questions to ask a mortgage lender before you lock in a home loan? If you want to find the very best mortgage for your needs, it pays to not automatically go with the very first lender you see.

“You need to shop around to make sure you’re getting the best interest rate and loan terms,” says Peggy Yee, supervising broker at Frankly Realtors, in Vienna, VA, who recommends that home buyers meet with at least three lenders before they pick.

So how do you compare and contrast your options effectively? Ask these 10 questions below to get a sense of who's right for you.

1. What types of home loans do you offer?

Some lenders offer a wide range of mortgage products, while others specialize in only one or two types of home loans. Finding a lender that offers the type of mortgage you need is a must. These are the most common types of home mortgages:

  • Fixed-rate loan: True to its name, a fixed-rate mortgage means that the interest rate you pay remains fixed at the same level throughout the life of your loan (typically 15 or 30 years).
  • Adjustable-rate mortgage (ARM): An ARM offers a low interest rate for an introductory period. After that period—typically two to five years—the rate becomes adjustable up to a certain limit, depending on market conditions.
  • FHA loan: Geared toward low-income home buyers, a Federal Housing Administration loan lets borrowers put down as little as 3% on a house.
  • VA loan: If you or your spouse serve or served in the military, you may qualify for a Veterans Affairs loan. Under this program, the VA guarantees the loan—reducing the risk to the lender—and allows you to finance up to 100% of the house's cost, so you won't have to come up with any money for a down payment.
  • USDA loan: Another type of government-backed mortgage, this loan is offered by the U.S. Department of Agriculture Rural Development in towns with populations of 10,000 or less. USDA loan borrowers can have down payments as low as 0%.
  • Jumbo loan: If you live in a pricey housing market, you may end up with a jumbo loan—a mortgage that's above the limits for government-sponsored loans. In most parts of the country, that means loans over $417,000; in areas where the cost of living is extremely high (e.g., Manhattan and San Francisco), the threshold jumps to $625,000.

2. What type of mortgage is best for me?

A mortgage lender should be able to answer this question once you’ve completed a loan application and the lender takes stock of your employment, income, assets, credit, debt, expenses, down payment, and other information about your finances.

3. What are your closing costs?

For home buyers, closing costs—the fees paid to a lender and other third parties that help facilitate the sale of a home—typically run about 3% to 4% of a home’s sales price. So on a $250,000 home, your closing costs as a buyer would amount from $7,500 to $10,000. The good news is some closing costs are negotiable: attorney fees, commission rates, recording costs, and messenger fees.

Your best approach is to submit loan applications with several lenders so that you can receive good-faith estimates(GFEs), which contain an itemized list of a lender’s closing fees.

4. How much time do you need to complete a mortgage?

One recent study found that closing times take, on average, 50 days. But, if you’re buying in a hot housing market, you may need to find a lender who can turn around a mortgage quickly—30 days or less.

The caveat: Some types of loans often take longer to process. The entire FHA loan process, for example, may take 30 to 60 days from the time you apply for the loan to the day you close, since the house must pass an inspection conducted by the U.S. Department of Housing and Urban Development. And if the house requires certain repairs in order to pass inspection, they must be completed before the sale can go through.

5. Do you do underwriting in-house?

Underwriting—the process in which mortgage lenders verify your assets to get a home loan, check your credit score, and review your home appraisal—can last as little as two to three days, but typically takes over a week to finish. All loans must go through underwriting before the lender can issue you the funds for a home purchase.

Some lenders do underwriting in-house, while others farm out to third-party underwriters. Though there are plenty of good lenders that outsource their underwriting, finding lenders that do theirs in-house could help speed up the process, since the underwriter would have direct access to your loan officer. (Communication between a loan officer and an outside underwriter might take longer.)

6. What documents do I need?

Proof of income and assets, personal identification, and information about your credit history are the big three. It can be a lot of paperwork, so start now by getting your paperwork in order.

7. Do you participate in any down payment assistance programs?

Need help making a down payment? There are many down payment assistance programs across the country which can help. One study found that buyers who use down payment assistance programs save an average of $17,766. The challenge, though, is not all mortgage lenders participate in these programs—but if you need down payment assistance to buy a house, you’ll need to find a lender that does.

8. Do you charge for an interest rate lock?

mortgage rate lock is a commitment by a lender to give you a home loan at a specific interest rate, provided you close on your home in a certain period of time. This rate lock offers protection against fluctuating interest rates—useful considering that even a quarter of a percentage point can take a huge bite out of your housing budget over time.

Most lenders will offer a 30-day rate lock at no charge to you, but some lenders do charge for rate locks. This fee can be as high as 1% of your total loan amount. On a $300,000 mortgage, that means paying up to $3,000 to secure your rate—that’s not chump change.

9. Who will be the title and escrow agency or attorney?

You don’t have to leave the selection of the title company up to the lender. See how much your mortgage lender’s recommendation will cost, then shop around and see if you can save any money.

You can do the same for an escrow agency and attorney.

10. How do you communicate with your clients?

A great mortgage lender will stay in close contact with you, giving you updates on key steps in the mortgage approval process (e.g., the home appraisal and underwriting), says Yee. Additionally, you want to find a lender that you could reach easily when you have questions. Some loan officers work only during regular business hours, Monday through Friday, which can be a big disadvantage if you need help on a weekend.

Let The McLeod Group Network assist you in finding your new home! 971.208.5093 or admin@mgnrealtors.com 

By: Realtor.com, Craig Donofrio 

The Home Appraisal Process: What to Expect as a Buyer

by Amy McLeod Group


The home appraisal process is just a formality when buying real estate, right? You've found the house you love and put in a good offer, and it was accepted! It's time to break out the Dom Pérignon White Gold? Sorry, not yet.

If you've applied for a mortgage, your home-to-be still has to undergo a comprehensive appraisal of its worth—and an unfavorable home appraisal can kill a real estate deal. Yikes! It can be a nerve-racking ordeal, but it's actually good for you. Allow us to demystify the process.

Appraisals estimate a home's value with fresh eyes

Just because you and the sellers have agreed on a price doesn't mean it's a done deal—your lender needs to be on board, too. After all, it's the lender's real estate investment as well. To get a mortgage, you'll need a home appraisal because the home serves as collateral for your lender. If for some reason you end up unable to make your mortgage payments, the lender will have to foreclose on your home, then sell the property to recoup its costs. So your mortgage lender will have to know the value of your home before handing over that large chunk of change.

While the home appraisal process is somewhat similar to getting comps—as you did to determine a fair price—the appraiser delves in deeper to determine the home's exact value.

An appraiser will investigate the condition, the square footage, location, and any additions or renovations. From there, he or she will appraise the home and determine its value.

An appraiser is trained to be unbiased, says Adam Wiener, founder of Aladdin Appraisal in Auburndale, MA.

“I don't care what anybody wants the home to be worth," he says. “As an appraiser, I'll give you the answer. You may not like it, but it's the answer."

Off-site, the appraiser may also evaluate the current real estate market in the neighborhood to help determine the value of the property.

Usually, the lender or financing organization will hire the appraiser. Because it's in the best interest of the lender to get a good home appraisal, the lender will have a list of reputable pros to appraise the home.

Whoever takes out the mortgage pays for the home appraisal, unless the contract specifies otherwise. Then the buyer pays the fee in the closing costs. If a seller is motivated, he may pay for the home appraisal himself to back his asking price, which benefits the buyer by reducing closing costs.

You'll get a copy of the home appraisal, too

An appraiser sets out to determine if the home is actually worth what you're planning to pay. You might be surprised by how little time that takes; the appraiser could be in and out of a home in 30 minutes, and that's not a reason to panic.

An appraiser doesn't have the same job as a home inspector, who examines every little detail. While they'll pay particular attention to problems with the foundation and roof, the home appraisal process includes noting the quality and condition of the appliances, plumbing, flooring, and electrical system. With data in hand, they make their final assessment and give their report to the lender. The mortgage company is then required by law to give a copy of the appraisal to you.

Appraisers work for your lender—not you

As the buyer, you'll be paying for the home appraisal. In most cases, the fee is wrapped into your closing costs and will set you back $300 to $400. However, just because you pay doesn't mean you're the client.

“My client is the lender, not the buyer," Wiener says. This ensures that appraisers remain ethical—in fact, it's a crime to coerce or put any pressure on an appraiser to hit a certain value. Appraisers must remain independent.

“Anything less, and public trust in the appraisal is lost," says Wiener.

They protect buyers from a bad deal

In essence, the home appraisal process is meant to protect you (and the lender) from a bad purchase. For instance: If the appraisal comes in higher than your asking price, it's generally fine. Sure, the sellers could decide they want more money and would rather put their home back on the market; but in most cases, the deal will go through as expected.

If your appraisal comes in lower than what you offered, this is where things get tricky: Your lender won't pony up more money than the appraised price. So if you and the sellers agree on $125,000 but the appraisal comes in at $105,000, it creates a $20,000 shortfall. What's a buyer to do? Read on.

A curveball appraisal isn't necessarily the end

If the appraisal process happens, your appraisal comes in low, and your contract with the seller was contingent on an appraisal, you could walk away and have your earnest money returned.

If you prefer to buy the home anyway (or waived your appraisal contingency), there are some other paths you can pursue:

  • Come up with the cash to cover the difference between the appraisal and offer price.
  • Ask the seller to cover the difference.
  • Challenge the appraisal, and pay for a second opinion.

Keep in mind, though, that your new report could come out identical. Also keep in mind that if you do choose to walk away, that's actually good news, although it may not seem like it at the time. Why? Because the appraisal kept you from paying too much for your home.

Once your appraisal is done, you're still not ready to close without another nerve-racking step called a home inspection.

Let's get together and find your dream home! Contact The McLeod Group Network at 971.208.5093 or admin@mgnrealtors.com. 

By: Realtor.com, Jamie Wiebe 

What Is a Good Credit Score to Buy a House?

by Amy McLeod Group


If you're hoping to buy a home, one number you'll want to get to know well is your credit score. Also called a credit rating or FICO score (named after the company that created it, the Fair Isaac Corporation), this three-digit number is a numerical representation of your credit report, which outlines your history of paying off debts.

Why does your credit score matter? Because when you apply for a mortgage to buy a home, lenders want some reassurance a borrower will repay them later! One way they assess this is to check your creditworthiness by scrutinizing your credit report and score carefully. A high FICO rating proves you have reliably paid off past debts, whether they're from a credit card or college loan. (Insurance companies also use more targeted, industry-specific FICO credit scores to gauge whom they should insure.)

In short, this score matters. It can help you qualify for a home, a car loan, and so much more. Which brings us to an important question: What type of score is best to buy a house?

Inside your credit score: How does it stack up?

A credit score can range from 300 to 850, with 850 being a perfect credit score. While each creditor might have subtle differences in what they deem a good or great score, in general an excellent credit score is anything from 750 to 850. A good credit score is from 700 to 749; a fair credit score, 650 to 699. A credit score lower than 650 is deemed poor, meaning your credit history has had some rough patches.

While FICO score requirements will vary from lender to lender, generally a good or excellent credit score means you'll have little trouble if you hope to score a home loan. Lenders will want the business of home buyers with good credit, and may try to entice them to sign on with them by offering loans with the lowest interest rates, says Richard Redmond at All California Mortgage in Larkspur and author of “Mortgages: The Insider’s Guide.”

Since a lower credit score means a borrower has had some late payments or other dings on their credit report, a lender may see this consumer as more likely to default on their home loan. All that said, a low credit score doesn't necessarily mean you can't score a loan, but it may be tough. They may still give you a mortgage, but it may be a subprime loan with a higher interest rate, says Bill Hardekopf, a credit expert at LowCards.com.

How a score is calculated

Credit scores are calculated by three major U.S. credit bureaus: ExperianEquifax, and TransUnion. All three credit-reporting agency scores should be roughly similar, although each pulls from slightly different sources. For instance, Experian looks at rent payments. TransUnion checks out your employment history. These reports are extremely detailed—for instance, if you paid a car loan bill late five years ago, an Experian report can pinpoint the exact month that happened. By and large, here are the main variables that the credit bureaus use to determine a consumer credit score, and to what degree:

  • Payment history (35%): This is whether you've made debt payments on time. If you’ve never missed a payment, a 30-day delinquency can cause as much as a 90- to 110-point drop in your score.
  • Debt-to-credit utilization (30%): This is how much debt a consumer has accumulated on their credit card accounts, divided by the credit limit on the sum of those accounts. Ratios above 30% work against you. So if you have a total credit limit of $5,000, you will want to be in debt no more than $1,500 when you apply for a home loan.
  • Length of credit history (15%): It’s beneficial for a consumer to have a track record of being a responsible credit user. A longer payment history boosts your score. Those without a long-enough credit history to build a good score can consider alternate credit-scoring methods like the VantageScore. VantageScore can reportedly establish a credit score in as little as one month; whereas FICO requires about six months of credit history instead.
  • Credit mix (10%): Your credit score ticks up if you have a rich combination of different types of credit card accounts, such as credit cards, retail store credit cards, installment loans, and a previous or current home loan.
  • New credit accounts (10%): Research shows that opening several new credit card accounts within a short period of time represents greater risk to the lender, according to myFICO, so avoid applying for new credit cards if you're about to buy a home. Also, each time you open a new credit line, the average length of your credit history decreases (further hurting your credit score).

How to check your credit score

So now that you know exactly what's considered a good credit rating, how can you find out your own credit score? You can get a free credit score online at CreditKarma.com. You can also check with your credit card company, since some (like Discover and Capital One) offer a free credit score as well as credit reports so you can conduct your own credit check.

Another way to check what's on your credit report—including credit problems that are dragging down your credit score—is to get your free copy at AnnualCreditReport.com. Each credit-reporting agency (Experian, Equifax, and TransUnion) may also provide credit reports and scores, but these may often entail a fee. Plus, you should know that a credit report or score from any one of these bureaus may be detailed, but may not be considered as complete as those by FICO, since FICO compiles data from all three credit bureaus in one comprehensive credit report.

Even if you're fairly sure you've never made a late payment, 1 in 4 Americans finds errors on their credit file, according to a 2013 Federal Trade Commission survey. Errors are common because creditors make mistakes reporting customer slip-ups. For example, although you may have never missed a payment, someone with the same name as you did—and your bank recorded the error on your account by accident.

If you discover errors, you can remove them from your credit report by contacting Equifax, Experian, or TransUnion with proof that the information was incorrect. From there, they will remove these flaws from your report, which will later be reflected in your score by FICO. Or, even if your credit report does not contain errors, if it's not as great as you'd hoped, you can raise your credit score. Just keep in mind, regardless of whatever credit-scoring model you use, you can't improve a credit score overnight, which is why you should check your credit score annually—long before you get the itch to score a home.

The McLeod Group Network can help you find your new home! 971.208.5093 or admin@mgnrealtors.com

By: Realtor.com, Daniel Bortz 

Sitting on the Sidelines? 4 Reasons to Get Up and Buy a Home This Year

by Amy McLeod Group


The housing landscape of the past several years hasn't exactly been friendly to buyers: the bidding wars, the eye-popping prices, the houses that sold before a "For Sale" sign even went up. It's enough to make any of us put our search on hold until we have a fighting chance at landing a home—without draining our bank accounts.

If you've been sitting on the sidelines, we've got good news and we've got bad news: Things are finally slowing down. But they might not slow down fast enough for your liking.

Don't despair, though—this year still stands to look better than last for aspiring home buyers.

"If your resolution is to buy a home in 2019, you’ll have some challenges to contend with, but also some opportunities," says Danielle Halerealtor.com's chief economist.

The devil's in the details, though, and there are quite a few factors that could dictate whether this is your year to buy. Here are the four biggest reasons to take the plunge now

1. There will be more available homes—or at least, not fewer

Tight home inventory has sidelined would-be buyers for several years now. Even if you could afford a home, too few of them were hitting the market to keep up with demand. Or, when they did, there was a good chance they were snapped up before you could even call your real estate agent.

House hunting felt especially bleak last winter, when nationwide inventory hit its lowest level in recorded history. By the end of 2018, though, things finally started looking up, and in 2019, experts predict more opportunities—and less frustration—for buyers.

But there's a catch: Not everyone will be able to afford those opportunities. That’s because the markets seeing the most increases in available homes tend to be more expensive, Hale says.

“For buyers, there is going to be more inventory. So that’s a bright spot," she says. "The downside of that bright spot is it might not be in their price range.”

If you don't have big bucks, though, all is not lost. The news is still good—just tempered. The supply of affordable homes for sale (under $300,000, which is about the median home price right now) might not be growing dramatically just yet, but it's certainly not decreasing anymore.

2. Skyrocketing prices will slow their roll

While inventory went down, down, down over the past few years, home prices did the opposite. Will we still see staggering dollar amounts throughout 2019?

It's another mixed bag here: Expect home prices to continue to rise (blah), but at a slower pace than they have been (yay). Hale predicts a 2.2% increase in home prices this year—compared with a nearly 5% increase last year.

That's not nothin'. And if you can get in the market before those moderate increases, all the better.

"We do still anticipate rising home prices, particularly for below-median-priced homes, so buyers in that price range may have some incentive to buy sooner rather than later," Hale says.

And there's a silver lining to those climbing home prices, too—again, for some of you.

"As rising costs raise the bar to homeownership, some would-be buyers will be knocked out of the market, so that remaining buyers may have less competition to contend with than they saw in 2018," Hale says.

3. Mortgage rates are lower than expected

There was a lot of discouraging talk at the end of 2018 about increasing rates—and there was good reason to be nervous. Rates on a 30-year fixed-rate mortgage, the most popular home loan, were approaching 5%—and expected to trend upward throughout 2019.

But that hasn't happened.

In fact, rates have been falling—perplexing the pros but creating a prime opportunity for home shoppers. Rates did tick up slightly last week—for the first time in 2019—to 4.46%. But that's still historically low.

"That’s definitely a huge opportunity for buyers because it drastically improves affordability," Hale says. "And I think that if these low rates persist for a little while, then we’ll actually see stronger sales than we originally forecast."

"Lower mortgage rates will get buyers off the sidelines," adds Ali Wolf, director of economic research at Meyers Research. "Consumers should take advantage of the returned purchasing power, and in fact, we're already seeing early 2019 data that suggest they are."

But don't get complacent, Hale warns: "I do think that the long-term direction of mortgage rates is going to be back up. We’ve still got a strong economy."

4. Rents are rising—and won't be falling anytime soon

Buying a home is a scary-expensive endeavor in the best of circumstances, and when prices are climbing, it can be downright soul-sucking.

But bear this in mind: Rents are rising, too. In fact, they very rarelydecline, Hale says. And while buying a home is generally going to cost you more in the short term than renting, you have to look at the bigger picture. Buying means you're building equity—and not forking over your hard-earned dollars to a landlord.

"The challenge will be finding a home that fits needs, some wants, and still stays within the monthly budget," Hale says.

If you can afford to buy now, you'll thank yourself in the long run—and whenever your friends get their annual rent increases.

The McLeod Group Network can help you find your new home! 971.208.5093 or admin@mgnrealtors.com

By: Realtor.com, Rachel Stults

Whose Mortgage Do You Want to Pay? Yours or Your Landlord’s?

by Amy McLeod Group


There are some people who haven’t purchased homes because they are uncomfortable taking on the obligation of a mortgage. However, everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As Entrepreneur Magazine, a premier source for small business, explained in their article, “12 Practical Steps to Getting Rich”:

“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”

With home prices rising, many renters are concerned about their house-buying power. Mike Fratantoni, Chief Economist at MBAexplained:

“The spring homebuying season is almost upon us, and if rates stay lower, inventory continues to grow, and the job market maintains its strength, we do expect to see a solid spring market.”

As an owner, your mortgage payment is a form of ‘forced savings,’ which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity.

As mentioned before, interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac’s latest report shows that rates across the country were at 4.46% last week.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy.

The McLeod Group Network is here to help! 971.208.5093 or admin@mgnrealtors.com

By: KCM Crew

Buying a House This Year? This Should Be Your 1st Step!

by Amy McLeod Group


In many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show that you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.

Even if you are not in an incredibly competitive market, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach.

Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you through this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:

  1. Capacity: Your current and future ability to make your payments
  2. Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
  3. Collateral: The home, or type of home, that you would like to purchase
  4. Credit: Your history of paying bills and other debts on time

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Bottom Line

Many potential homebuyers overestimate the down payment and credit scores necessary to qualify for a mortgage.

If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so today. Let The McLeod Group Network help - 971.208.5093 or admin@mgnrealtors.com

By: KCM Crew


Finally, you've done it: You've scoured the market for available homes—and then some—and found one you can't stop thinking about. It's time to make an offer!

But before you put your money on the line, take a peek around the neighborhood. We won't use a certain cliché, but there is a reason the pros emphasize location when buying real estate. You can change your house—but you can't change the neighborhood. And if your hood is on the decline, you just might have a helluva time offloading your home when you decide to sell.

A bad neighborhood isn't always obvious, though; sometimes you need to do a little digging to know if a community is worth buying in. Luckily, we've identified seven red flags that should give you pause before you sign on the dotted line.

Red flag No.1: Too many houses are on the market

There's nothing wrong with two or three listed houses on the same street. But if you see an army of "For Sale" signs, consider looking elsewhere.

"This points to illiquidity in the market and pricing pressure, which is a risk for buyers," says Alison Bernstein, the founder of Suburban Jungle, which helps families find their ideal suburb.

Of course, the hue of this particular red flag depends on the reason for those "For Sale" signs. Perhaps the neighborhood is rapidly gentrifying and longtime residents have decided to cash in. Or maybe there's a more sinister explanation, like increasing crime rates. Your agent can help you assess the situation before making any big moves.

Red flag No.2: The schools are enrolling fewer students

Schools in healthy communities should be steadily increasing their enrollment—or at least keeping the population steady, if there's no physical room to grow.

"Shrinking class sizes are a red flag," Bernstein says.

There are a number of reasons enrollment might decrease. Your local school might have a reputation for poor management, sending parents fleeing to charter or private options. Or perhaps residents are staying put as their kids grow up, leading to older neighbors and fewer close-by pals for your kids. That may or may not be a deal breaker, but it's certainly something to consider.

Red flag No.3: The area leans industrial

A nearby strip of cute boutique stores might be a nice selling point, but reconsider the purchase if the closest commercial influences lean toward the industrial.

"Be mindful of any kind of commercial influence on the block, such as close gas stations or anything that could be undesirable health-wise," says Ralph DiBugnara, the vice president at Residential Home Funding.

Any nearby industrial plants should automatically nix a neighborhood, and think long and hard before buying across from a car dealership or auto body shop, which attract a lot of car traffic.

Red flag No.4: There are lots of empty storefronts

Don't just stop at counting boutiques versus gas stations. Are the stores actually thriving, or are there lots of retail spaces for rent?

"Empty storefronts can tell you a lot," Bernstein says. "They point to less disposable income of residents than clearly there once was."

Why does that matter? Decreased disposable income indicates a neighborhood on the decline. If homeowners don't have money for dinner out, they probably don't have cash for upkeep. Shabby homes drag down property values. Meager cash flow can also lead to future foreclosures—and a foreclosed-upon home is a neighbor that no one wants.

Red flag No. 5: The Stepford style is in full force

You might love the homogenous, well-groomed suburban look (and there's nothing wrong with that!). But take a moment to examine it more closely. Are there any unique decorative doodads dotting each garden, like aluminum chickens or wind chimes? Or is the front porch furniture identical?

If all the neighborhood's homes (and landscaping) look suspiciously similar, "explore how restrictive the homeowners association is," says Susanna Haynie, a Realtor in Colorado Springs, Co. "It could be an issue."

Red flag No.6: There's no parking

Sure, the property may have a one-car garage—but where will your friends park, and where can you keep your spouse's car? If the streets have bumper-to-bumper traffic, think twice about buying in the neighborhood—especially if the home lacks a garage or carport.

"I'm always on the lookout for a lack of parking," DiBugnara say. "It's best to visit at night or on weekends to really, truly tell what will be available to you once you live there."

Unless you commute primarily by foot or bike—or you're OK spending your weekends circling the block—the neighborhood may not be a good fit for you.

Red flag No.7: Surrounding homes aren't well-maintained

A street in shambles might seem like an obvious red flag. But you also might have heard that buying the best house in the worst neighborhood is a prime opportunity for profit.

Tread lightly here: A street full of run-down homes with overgrown yards and broken fences should set off warning signals. And this has nothing to do with wealth; lower-income neighborhoods can be just as well-kept as more expensive ones. It's about pride. Neighbors with no pride in their home's appearance and upkeep decrease property values for everyone.

Plus, problems with the homes next door can indicate that the house you want might have bigger issues than meet the eye. Look at every house on the block for issues such as water pooling in the yards, or flickering porch lights.

"If there are problems such as water pipes or electrical issues, you will tend to see more than one home showing damage," DiBugnara says. Fixing these major problems "could be a major expense, hassle, or detriment to your value later on."

Ready to buy a home? Let The McLeod Group Network help - 971.208.5093 or admin@mgnrealtors.com

By: Realtor.com, Jamie Wiebe

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The McLeod Group Network
Keller Williams Capital City
1900 Hines St SE #220
Salem OR 97302
971-208-5093
Fax: 971-599-5229

**Disclaimer: Amy McLeod, and her team, do not initiate, process, or service mortgages.  And provide this information only as a service.  You should confirm information here with your Licensed Mortgage Lender.