Tuesday, January 19, 2016

The Path To Home Ownership Starts With Education From Your Lender

The following information is from one of our preferred lenders, Andrew O'Fee "The Yankee Closer" with Community Mortgage. If you are considering purchasing a home and want to talk with a professional loan officer who will educate and guide you through the loan process, give Andy a call at his office 901-684-2721 or on his cell 901-237-3526.

And... if you need a Realtor to assist in finding and purchasing a home, be sure to give Owen or JoAnn "Your Memphis Agent" a call. Office 901-260-4780, Owen 901-359-3093, JoAnn 901-359-3095/

From loan approval... to finding a home... to a successful closing, we have it covered.

We look forward to helping you find and finance your dream home!

The Yankee Closer – Andrew O'Fee

Have you ever wondered why some homeowners default on their mortgage?  Perhaps it’s from job loss, a death in the family, or other tragic circumstances.  However, I have experienced as a lender that some homeowners default on their mortgage because they were not educated on the front end of the financial requirements and impacts of owning a home.  Oftentimes, lenders will pre-approve a buyer for x amount, but the buyer will not understand their total monthly payment.  The lender will use words and phrases like “you can afford x sales price”, “your gross income supports x purchase price”, and “your lack of debt allows you to purchase more”.  These phrases can be misleading to a buyer because the lender will end up not explaining the total monthly payments on the front end and the financial requirements of the mortgage.
Home ownership requires a large commitment from the buyer.  Proper education and understanding between the lender and buyer should be created before that commitment is in place.  Prior to accepting a contract, it is imperative, particularly to first time home buyers, that there is an explicit understanding of the financial impact of a mortgage and home ownership.  Guidance and budgeting are part of the equation.  Because gross income is used to calculate a mortgage approval amount, buyers need to know on the front end their monthly mortgage payment.  This is to ensure they are committed and able to afford that monthly payment once they close.
Mortgage programs for the most part have evolved back into the fixed rate era, eliminating the guess as to what one’s payment will be once the reset date has hit.  (ARMs are still available but offered only to those with some financial sophistication.)  With rates at historical lows, the opportunity to borrow ‘cheap money’ is still at hand.  As enticing as this sounds, a loan is a loan and a borrower must demonstrate their preparedness to meet the debt obligation regardless of how low the monthly payment or rate is.
With this is mind, I would encourage all lenders to take the extra step to meet face to face with a client.  It is at this time that the customer relationship building begins and the introduction of the loan process is explained with a real hand shake and not an email.
Despite new rules and regulations, the lending community as a whole has an obligation to reach out and meet new home buyers and go beyond what the CFPB requires.  Questions and concerns are to be answered sooner (pre-contract, pre-house shopping explorations) rather than later.  Once that has happened, the home buying experience can be just what it is supposed to be: fun, exciting, and fulfilling.
I am committed to meeting each client and educating them on their financial decision, whether it be in 30 days or in 3 years.  I owe it to the industry but most importantly, I owe it to my community.




Wednesday, January 6, 2016

Top Reason to List Your House For Sale Now!

If you are debating listing your house for sale this year, here is the #1 reason not to wait!

Buyer Demand Continues to Outpace the Supply of Homes For Sale

The National Association of REALTORS’ (NAR) Chief Economist, Lawrence Yun recently commented on the inventory shortage:
“While feedback from REALTORS® continues to suggest healthy levels of buyer interest, available listings that are move-in ready and in affordable price ranges remain hard to come by for many would-be buyers.”
The latest Existing Home Sales Report shows that there is currently a 5.1-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market and well below November 2014 numbers.
The chart below details the year-over-year inventory shortages experienced in 2015:
Housing Supply Year-Over-Year | Simplifying The Market
Anything less than a six-month supply is considered a “Seller’s Market”.

Bottom Line

Let's get together and discuss the supply conditions in your neighborhood to be able to assist you in gaining access to the buyers who are ready, willing and able to buy now!

Sunday, November 15, 2015

Memphis Area October 2015 Market Report

The Memphis Area Association of Realtors (MAAR) has released the October 2015 Market Report. The report shows October 2015 sales compared to October 2014 for the overall Memphis area (which includes sales in Shelby, Fayette, and Tipton counties) decreased by 3.5% with 1,336 total sales recorded in the Memphis Area Association of REALTORS® MAARdata property records database. Sales were down 6.2 percent from September, when there were 1,424 total sales. The average sales price from October-to-October was up 4.3% at $156,692.  Inventory decreased 1.8%, with 6,291 units listed for sale. Monthly sales volume YTD increased 6.8% to $2.2 billion.


Foreclosure Sales continue to decrease. Year-to-date 2014 there were 1,937 bank sales as compared to 1,865 this year – a 3.7% decline. While the average YTD sales price decreased by 3.1% to $71,870, the average YTD sales price for non-bank sales increased by 2.5% to $172,552.

"It's a pretty stable market right now," said MAAR President Thomas Murphree.  "And we're ahead of last year's pace."

For an in-depth report of Market trends for the Memphis area, click on the link below.


October 2015 Market Report

 
All information deemed accurate, but not warranted.

Monday, November 2, 2015

Home Inspection – Do I Really Need One?

Are you are considering purchasing a home?  If you are, a home inspection by a qualified/licensed home inspector is one of the most critical inspections you can have performed. There will be a charge, but it is well worth the investment. At the time of the home inspection, you have the opportunity to thoroughly inspect the home you have placed an offer on with a licensed inspector before you purchase it. You can walk around with the inspector and see in person items of concern to the inspector. Because of the importance conducting a home inspection, inspections are one of the most common contingencies in purchase agreements.
 
Among other things, a good home inspector will climb on top of the roof, inspect the attic, and check the heat and air systems. Their job is to help protect your investment by finding possible issues with the home before you complete the purchase. These issues may include problems with:
  • The Roof
  • Plumbing
  • Electrical Components
  • Appliances
  • Heating and Air Conditioning Systems
  • Windows
  • The Fireplace and Chimney
  • The Foundation
Once the inspection is completed, your home inspector will provide a detailed, written report outlining issues he discovers, as well as necessary, or recommended, repairs.
If you have placed a home inspection contingency in your purchase contract and issues you are uncomfortable with are noted in the inspection report, you typically have three options. You can:
  1. Renegotiate the sales price
  2. Require the seller to make the repairs, or
  3. Terminate the offer with full refund of your Trust Funds (Earnest Money).
The services of an experienced Realtor® are invaluable in the entire purchase process, but especially during and after the home inspection.
 
Your Realtor® may provide names of reputable home inspectors, attend the home inspection and assist you with the negotiation of repairs or successfully terminate the contract with full refund of your trust funds.

Saturday, October 24, 2015

Memphis Area September 2015 Market Report

The Memphis Area Association of Realtors (MAAR) has released the September 2015 Market Report. The report shows September 2015 sales compared to September 2014 for the overall Memphis area (which includes sales in Shelby, Fayette, and Tipton counties) decreased by 9.5% with 1,424 total sales recorded in the Memphis Area Association of REALTORS® MAARdata property records database . The average sales price from September-to-September was down 0.7% at $159,120.  Inventory decreased .95 percent, with 6,404 units listed for sale. Monthly sales volume YTD increased 7.0 percent to $1.98 billion.



Foreclosure Sales continue to decrease. Year-to-date 2014 there were 1,664 bank sales as compared to 1,761 this year – a 5.5% decline. While the average YTD sales price decreased by 1.9% to $72,231, the average YTD sales price for non-bank sales increased by 1.8% to $172,389.

“We’re entering the home stretch of a very solid year,” said MAAR President Thomas Murphree. “The market is competitive and opportunities exist for buyers and sellers.” 
 
For an in-depth report of Market trends for the Memphis area, click on the link below.


Market Report September 2015
 
All information deemed accurate, but not warranted.
 
 
 
 

Thursday, August 20, 2015

Real Estate Again Seen as Best Investment

http://goo.gl/MmJjo7


We are almost back to ‘pre-housing crash’ home values. The inventories of distressed properties (foreclosures & short sales) are shrinking dramatically. The economy is improving. The job numbers are headed in the right direction.

The big question that still remains: Have Americans regained their confidence in real estate as a worthy investment?
According to a survey conducted by Princeton Survey Research Associates, Americans have put real estate back into first place as the best of all investments.

Here are the results of the survey:

Best Investment | Simplifying The Market

Bottom Line

Homeownership never lost its place as a key component of the American Dream for a host of financial and non-financial reasons. It is good to see that it has regained the top spot as best overall investment. more...

July 2015 Market Report for the Memphis Area

The Memphis Area Association of Realtors (MAAR) has released the July 2015 Market Report. The report shows July 2015 sales compared to July 2014 for the overall Memphis area (which includes sales in Shelby, Fayette, and Tipton counties) increased by 12.6%. Sales were up 1.3% from June, when there were a total of 1,663 sales. The average sales price from July-to-July was down 3.3% at $162,773.  Inventory increased 1.0 percent, with 6,539 units listed for sale. Monthly sales volume YTD increased 7.2 percent to $1.48 billion.

Foreclosure Sales continue to decrease. Year-to-date 2014 there were 1,419 bank sales as compared to 1,297 this year – an 8.6% decline. Even the bank sales showed an increase in the average sales price of 3.3% over 2014. This news may not be good news for investors; however, it is good news for the Memphis housing market.  
 
For an in-depth report of Market trends for the Memphis area, click on the link below.