Monday, November 26, 2018 / by Rich Hernandez
Are you trying to crack the code to getting a perfect credit score of 850?
There are a lot of actions Americans can take to improve their credit score such as making payments on time, keeping credit balances under 30% of the limit and taking out a range of credit types. But while this will improve your credit, how do you get it perfect?
Of the 200 million Americans with FICO scores, about 3 million, or 1.4%, have perfect 850 scores. FICO credit scores can range from a low of 300 to 850.
Credit scores are one of the many factors that go into getting Americans approved for a mortgage, or determine the type mortgage and interest rates consumers are eligible for. And now, an increase number of Americans are seeing credit scores above 800, according to an article by Suzanne Woolley for Bloomberg.
From the article:
This year, the average national FICO number is 700, just above where it stood in October 2006, before the run-up to our most recent financial collapse. The rank ...
Friday, October 05, 2018 / by Rich Hernandez
Home sales are below last year’s levels, home values are appreciating at a slower pace, and there are reports showing purchasing demand softening. This has some thinking we may be entering a buyers’ market after sellers have had the upper hand for the past several years. Is this really happening?
The market has definitely softened. However, according to two chief economists in the industry, we are a long way from a market that totally favors the purchaser:
Dr. Svenja Gudell, Zillow Chief Economist:
“These seller challenges don’t indicate we’re suddenly in a buyers’ market – we don’t expect market conditions to shift decidedly in favor of buyers until 2020 or later. But buyers certainly are starting to balk at the rapid rise in prices and home values are starting to grow at a less frenetic pace.”
Danielle Hale, Chief Economist of realtor.com:
“The signs are pointing to a market that’s shifting toward buyers. Bu ...
Wednesday, September 19, 2018 / by Rich Hernandez
For the last several years, buyer demand has far exceeded the housing supply available for sale. This low supply and high demand have led to home prices appreciating by an average of 6.2% annually since 2012.
With this being said, three of the four major reports used to measure buyer activity have revealed that purchasing demand may be softening. Here are the four indices, how they measure demand (methodology), what their latest reports said, and a quick synopsis of the report.
The Foot Traffic Report
by the National Association of Realtors
Methodology: Every month SentriLock, LLC provides NAR Research with data on the number of properties shown by a REALTOR®. Lockboxes made by SentriLock, LLC are used in roughly a third of home showings across the nation. Foot traffic has a strong correlation with future contracts and home sales, so it can be viewed as a peek ahead at sales trends two to three months into the future.
Latest Report: “Foot Traffic climbed 3.2 points to 5 ...
Thursday, September 13, 2018 / by Rich Hernandez
We all realize that the best time to sell anything is when the demand for that item is high and the supply of that item is limited. The last two major reports issued by the National Association of Realtors (NAR) revealed information that suggests that right now continues to be a great time to sell your house.
Let’s look at the data covered in the latest Pending Home Sales Report and Existing Home Sales Report.
THE PENDING HOME SALES REPORT
The report announced that pending home sales (homes going into contract) are down 2.3% from last year and have continued to fall on an annual basis for seven straight months.
Lawrence Yun, NAR’s Chief Economist, had this to say:
“The reason sales are falling off last year’s pace is that multiple years of inadequate supply in markets with strong job growth have finally driven up home prices to a point where an increasing number of prospective buyers are unable to afford it.”
Wednesday, September 05, 2018 / by Rich Hernandez
3 things buyers need to know about PMI
When covering loan options with buyers, you should determine how much they plan to put down. If it’s going to be less than 20 percent, you should have a discussion with them about PMI.
Here are three things you should mention:
1. PMI can be cancelled
Typically, PMI can be cancelled once the principal balance of the mortgage falls to 80 percent of a home’s original value. Other cancellation criteria include good payment history and being current on payments at the time the cancellation request is made.
2. PMI and MIP are different
There are different types of mortgage insurance. PMI is associated with conventional loans. A mortgage insurance premium (MIP) is what borrowers pay toward FHA-insured loans.
The most important thing for buyers to remember is that the rules governing PMI and MIP differ. While borrowers can cancel PMI, refinancing is often the only way to eliminate MIP.
3. PMI protects the lender, not the borrower