Posts Tagged ‘Buying a Home’
Friday, May 24th, 2013
May 24, 2013
DAVENPORT – Slow and steady wins the race! Our eastern Iowa markets continue to have steady and stable growth in home price appreciation.
Nationally home prices have fallen 9.15% in the last five years, but all of our markets’ home prices are up: 7.01% in Dubuque; 1.95% in Iowa City; 1.48% in the Quad Cities; and 0.74% in Cedar Rapids. This compares to other cities: Des Moines, IA down 4.64%; Chicago, IL down 25.60%; and the Daytona Beach, FL area down 40.61%.
|
Metropolitan Statistical Areas (MSAs)
|
2013 1st Quarter National Ranking of 300 MSAs*
|
Percent Change in House Prices
|
|
|
1 Year
|
5 Year
|
| Cedar Rapids, IA |
173
|
+ 0.67%
|
+ 0.74%
|
| Davenport-Moline-Rock Island, IA-IL |
140
|
+ 1.31%
|
+ 1.48%
|
| Des Moines-West Des Moines, IA |
146
|
+ 1.20%
|
- 4.64%
|
| Dubuque, IA |
98
|
+ 2.31%
|
+ 7.01%
|
| Iowa City, IA |
106
|
+ 1.96%
|
+ 1.95%
|
| USA |
|
+ 6.72%
|
- 9.15%
|
Information courtesy of the Federal Housing Finance Agency (FHFA) for first quarter 2013. FHFA stats always run one quarter behind. Their full report is available at www.fhfa.gov. *Rankings based on annual percentage change in house prices.
Our markets didn’t fall as drastically as other areas of the country, so the increase in home price appreciation has modest but steady. The shortage of listings and pent up buyer demand may further improve home prices locally.
According to the Federal Housing Finance Agency, of the 300 MSAs (Metropolitan Statistical Areas) ranked by home price appreciation, all of our markets in eastern Iowa ranked in the top 58% in the nation – Dubuque at 98th; Iowa City at 106th; the Quad Cities at 140th; and Cedar Rapids at 173rd.
Nationally, this is the seventh consecutive quarterly price rise and overall it’s believed the housing market has stabilized in many areas, but a still-elevated foreclosure pipeline remains a hindrance to a bigger recovery, said FHFA Principal Economist Andrew Leventis.
Our local markets continue to provide a much more stable environment for purchasing homes and investing in real estate.
The Home Price Index is calculated using home sales price information from mortgages sold to or guaranteed by Fannie Mae and Freddie Mac.
A family-owned company since 1862, Ruhl&Ruhl Realtors has grown to nearly 301 sales associates, 58 employees and twelve offices, selling more than 5,000 homes in eastern Iowa, western Illinois and southwest Wisconsin. The company has residential sales offices in Bettendorf, Burlington, Cedar Rapids, Clinton, Davenport, DeWitt, Dubuque, Iowa City, Maquoketa, Muscatine, and Washington, Iowa; and in Moline, Illinois. In addition to residential sales, the company offers services in relocation, property management, real estate investments, new home sales, land development, farm and land sales, senior services, home vendor services, insurance services through the Nelson Brothers Agency and mortgage services through Shelter Mortgage. For more information on Ruhl&Ruhl Realtors, visit their website at www.RuhlHomes.com.
Tags: Buying a Home, caroline ruhl, davenport, home, housing market, Iowa Real Estate Market
Posted in Real Estate News | No Comments »
Friday, December 14th, 2012
Are you making a move soon? Although the idea of getting into your new home caries a lot of excitement the moving process itself can be stressful. So, here are some money saving tips that will help you save a little bit more amongst the 16.7 million household moves per year.
1) Unload What You Don’t Need: Ask yourself, what do I have now that I won’t need in the move? Will your furniture fit into your new home? What about that old box in storage covered in dust? Weight is a big factor that can increase the costs to move and put stress on your wallet and back.
2) Time it Right: A midmonth move will save you the most money says Daniel Bortz, the author of 8 Ways to Trim Moving Costs. The busiest moving times are the beginning and end of the months. Summer is the most popular time of the year for families to move, since kids aren’t in school according to Bortz you can get the best deal moving between October and April.
3) Save on Boxes: Try and find used or recycled boxes that you can buy at a cheaper cost, check with local groceries in your area. If you are using a professional moving company, try to pack as many smaller items yourself. This will decrease the amount of time the packers will have to spend. This means, if you’re paying by the hour, less money out of your pocket.
4) Plan and Organize: Color code boxes by room and put a sign on the door with the same corresponding color. This prevents someone yelling outside the truck or within the first steps of your new home telling the movers where each box goes.
5) Cover Your Items: A big benefit of professional movers is you can insure your items in case of an accident. But be sure of what you’re singing. For example be sure to ask if it’s to be replaced at market value or replacement value; make sure everything is clear before you sign the dotted line.
6) Snag a Tax Break: If you’re moving because of a job change you may be able to deduct some expenses. To see if you quality for any tax breaks consult a tax preparer or the Internal Revenue Service guidelines.
7) Price it Out: Seek at least three professional moving quotes. Bring the mover into your home so they can give you a more realistic quote and ask such as “Do you save money if you pack yourself?” Or “What is the insurance plan?”
8) Research the Mover: Make sure the company is reputable. Anyone can put their name on the side of a moving truck. Check the Better Business Bureau for complaints or if they have anything filed against them. Also, check to make sure they are licensed and insured. For a local list click here: http://www.ruhlhomes.com/vendors.aspx.
According to a report by Wroldwide ERC the average professional move costs is about $12,230. Hopefully using these tips will help you bring down the cost and make the move into your new house less of a hassle. For any other moving tips or questions you can contact Ruhl&Ruhl at 1-866-441-1776 or visit www.ruhlhomes.com
http://realestate.msn.com/8-ways-to-trim-moving-costs
Tags: buying, Buying a Home, caroline ruhl, davenport, home search, money saving, moving, packing, ruhl, Ruhl&Ruhl Realtors, tax credit
Posted in Tips & Hints | No Comments »
Thursday, November 15th, 2012
With house prices inching up and rents skyrocketing, this could be the perfect time to invest in single family residential real estate. And if you do, you won’t be alone. According to the National Association of Realtors’ (NAR) 2012 3rd Quarter Metro Area Report says “Investors…accounted for 17 percent of all transactions in the third quarter.” More than one out of every six houses sold are purchased by an investor.
In Sam Khater’s most recent Market Pulse report by Core Logic he says that there are a few major takeaways as to why purchasing a single-family home makes sense now and in the future. He states that the single-family rental market remained very active in late summer of 2012 with increases in demand and with inventory becoming scarcer; this has caused rent prices to rise greatly. Khater also says that nationally rental leasing volumes have been up every month for the past two years. He states that in August they were up 7% on the previous year. Lastly Khater talks about how the lower supply of these houses for rent get swept up by either, buyers (land lords) or renters moving into these houses, this has tighten the supply that is available to both parties, making these homes in high by customer demand.
If you are looking for or considering investing in an opportunity like this, contact a Ruhl&Ruhl sales associate for more details. Perhaps purchasing a single-family home to rent out makes sense you?
For more information on the housing market or real estate trends, keep checking RuhlHomes.com
Some information and statistics provided by: KCM Blog
Tags: buying, Buying a Home, caroline ruhl, home, home buyer programs, home search, housing market, illinois real estate, invest in real estate, investing, investment properties, investment return, iowa real estate, realtors, regional markets, rental homes, rental prices, renting, residential investments, return on investment, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes
Posted in Real Estate News, Tips & Hints | No Comments »
Friday, September 28th, 2012
Many sellers feel that the Spring is the best time to place their home on the market as buyer demand increases at that time of year. However, the Fall and Winter have their own advantages. Here are five reasons to to sell now.
Only Serious Buyers Are Out
At this time of year, only those purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere ‘lookers’. The lookers are at the mall or online doing their holiday shopping.
There Is Far Less Competition
Housing supply always shrinks dramatically at this time of year. This year will be a little different as some of the distressed properties being liquidated by the banks (in the form of foreclosures & short sales) will enter the market. However, for those buyers looking for a non-distressed property, the choices will be limited. Don’t wait until the spring when all the other potential sellers in your market will put their homes up for sale.
The Process Will Be Quicker
One of the biggest challenges of the 2012 housing market has been the length of time it takes from contract to closing. Banks have been inundated with both purchase and refinancing loan requests. Both of these will slow in the winter cutting timelines and the frustration these delays cause both buyers and sellers.
There Will Never Be a Better Time to Move-Up
If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 15% from now to 2016. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with historically low interest rates right now. There is no guarantee rates will remain at these levels in years to come.
It’s Time to Move On with Your Life
Look at the reason you decided to sell in the first place and decide whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?
You already know the answers to the questions we just asked. You have the power to take back control of the situation by pricing your home to guarantee it sells. The time has come for you and your family to move on and start living the life you desire. That is what is truly important.
With record low interest rates and the right time of year, there is no reason to wait any longer, if you have been contemplating listing your home, contact Ruhl&Ruhl Realtors today at 563-441-1776 or visit
RuhlHomes.com. We can help you find the right sales associate for you and your family. You don’t have to go it alone!
Blog provided by: KCM Blog
Tags: agents, Buying a Home, caroline ruhl, home search, housing market, illinois real estate, Illinois Real Estate Market, iowa real estate, Iowa Real Estate Market, quad cities, Quad Cities Real Estate, Quad Cities Real Estate Market, Real Estate, realtors, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes, sales volume, selling, selling your home
Posted in Real Estate News, Tips & Hints | No Comments »
Tuesday, September 4th, 2012
Please join us for the upcoming Fall Preview Parade of Homes event. The parade will be held September 15th- 16th, 22nd – 23rd from 1:00 p.m. – 5:00 p.m., as well as September 19th from 5:00 p.m. – 8:00 p.m. As always, the parade of homes is free to the public.
Many of the top builders in the Quad Cities participate in this event as it showcases new building trends in new construction homes. There are nineteen homes to tour with half of them being held open by Ruhl&Ruhl sales associates. Please see the homes represented by Ruhl&Ruhl below:
- 22 Grove Park Circle, Bettendorf, built by Bob Walter Homes and being held open by Sharon Tahere and Jim Farber
- 6109 Whispering Hill Drive, Bettendorf, built by Applestone Homes and being held open by JJ Condon.
- 1722 Stone Gate Circle, Davenport, built by Dan Dolan Homes and being held open by Dan Dolan and Don Gibeault.
- 3564 Black Lion Circle, Bettendorf, built by Dan Dolan Homes and being held open by Dan Dolan, Jane Bauman and Melissa Wegener.
- 5629 Judge Road, Bettendorf, built by Terry Knutsen Builders and being held open by Kim Solveson.
- 3483 ValleyWynds, Bettendorf, built by Terry Knutsen Builders and being held open by the Kurt Johnson, Stephanie Graham, Nancy McElhiney and Alicia Lillyblade.
- 5814 Crow Valley Park Drive, Davenport, built by D&S Construction and being held open by Gretchen Cordt, Marybeth Chupka and Jude Steil.
- 6556 Friendship Path, Bettendorf, built by Beaver Builders and being held open by Connie Coster.
- 6877 Still Creek Pass, Bettendorf, built by Tim Dolan Development and being held open by Kim Solveson.
- 1237 E. Kimberly Road, Bettendorf, built by FRG, LLC.(Ruhl Commercial) and being held open by Ron Whan and Nancy Billups.
This is a great event and Ruhl&Ruhl REALTORS looks forward to participating it in every year. This year there is over $1,000 in prizes that the public is able to enter to win at each home on the tour. For a full list and map of the homes being held open please check out www.qchba.com.
A family-owned company since 1862, Ruhl&Ruhl REALTORS has grown to 280 sales associates, 58 employees and eleven offices, selling more than 4,100 homes in eastern Iowa, western Illinois and southwestern Wisconsin. The company has residential sales offices in Bettendorf, Burlington, Cedar Rapids, Clinton, Davenport, DeWitt, Dubuque, Iowa City, Maquoketa and Muscatine, Iowa; and in Moline, Illinois. In addition to residential sales, the company offers services in relocation, property management, real estate investments, new home sales, land development, farm sales, senior services, home vendor services, insurance services through the Nelson Brothers Agency and mortgage services through 1862 Mortgage. For more information on Ruhl&Ruhl REALTORS, visit their website at www.RuhlHomes.com.
Tags: 2012 parade of homes, agents, Building, buying, Buying a Home, caroline ruhl, eastern iowa, fall parade of homes, first time buyers, home, new construction, New Construction Home Sales, parade of homes, QCARA, QCARA parade of homes, QCHBA, QCHBA Fall parade of homes, QCHBA parade of homes, Quad Cities new construction, Quad Cities Real Estate, Quad City Homebuilder Association, Real Estate, realtors, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Market Share, Ruhl&Ruhl Realtors, RuhlHomes
Posted in Real Estate News | No Comments »
Monday, August 20th, 2012
Davenport NOW, a city established, tax incentive program that launched in July of 2009, (provides a 50% rebate of the City’s share of property taxes for 10 years to people who build a home or renovate an existing property in Davenport, Iowa) the program has now been extended to June of 2014.
Davenport NOW was passed by Alderman to improve economic development, as well as provide more opportunities to small business owners in construction and remodeling. Since the program was established in 2009 the city of Davenport has already rebated over $1 million with most participants receiving over $5,000.
In August of 2010, the Davenport City Council approved the expansion of the Davenport NOW program to include a special program for historic properties, which provides an additional tax benefit to homeowners completing historic improvements. Applicants can receive a rebate on the value of the improvements of up to 100% of the city’s share of your property taxes for 10 years. Under both programs, eligible participants may choose a single one-time payment or multiple payments over ten years.
To qualify for the Davenport or Historic Davenport NOW programs this is some of the criteria:
- The property must be in a local or national historic district or listed on the national registry of historic properties.
- The property must be a single family, owner occupied home.
- Improvements must lead to a minimum $5,000 increase in assessed value.
- Exterior improvements must receive a certificate of appropriateness from the Davenport Historic Preservation Commission. City staff can assist you in submitting your improvements for approval.
- The home must be built as new construction or purchased new.
According to City ordinance, both business and residential property owners may be eligible, as long as the owner occupies the structure. Rental property improvements may also be eligible, but not new rental properties or those converting owner-occupied structures into rental properties.
For more information or to see if you qualify, contact the City of Davenport at 563-888-3380 or DiscoverDavenport.com
Keep checking RuhlHomes.com for the most up to date information on the Quad Cities real estate market!
Tags: agents, Building, buying, Buying a Home, caroline ruhl, davenport, davenport new construction, Davenport NOW, eastern iowa, first time buyers, home, home buyer programs, home search, housing market, ia, iowa real estate, Iowa Real Estate Market, new construction, New Construction Home Sales, new construction in davenport, new construction incentive, Quad Cities Real Estate, Quad Cities Real Estate Market, quad city, Real Estate, realtors, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes
Posted in Real Estate News, Tips & Hints | No Comments »
Wednesday, August 1st, 2012
We have received many questions about a possible 3.8% sales tax which will be put on home sales beginning 2013. Ruhl&Ruhl would like to take this opportunity to do our best to clarify this situation for everyone. Understand that, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.
To answer the question, is there a 3.8% sales tax on homes in the health bill? According to the National Association of Realtors (NAR) the answer is NO. The Health Care Reform which takes place in the beginning of 2013 did create a new 3.8% tax, but it applies only to a limited amount of taxpayers.
The truth is that only a tiny percentage of home sellers will pay the tax. To clarify, the 0.9% will affect clientele that the government now considers “High Income” meaning they have income over $200,000 (if married $250,000 filing jointly or $125,000 filing separately). If you don’t meet this threshold you will not be subject to this tax. The tax is on “Annual Gross Income (AGI) such as; net income from interest, dividends, rents and capital gains, as well as earned compensation and several additional forms presented on a Form 1040 Income Tax Return, and will be taxed on the earned income over and above $200,000/$250,000 thresholds.
As for the 3.8%, this is a tax on investments for those same “High Income” people ($200,000/$250,000). It is a tax on “Unearned Income“: Unearned income is the income that an individual derives from investing his/her capital. It includes capital gains, rents, dividends and interest income. It also comes from some investments in active business if the investor is not an active participant in the business. The portion of unearned income that is subject both to income tax and the new Medicare tax is the amount of income derived from these sources, reduced by any expenses associated with earning that income.
The portion of unearned income that is subject both to income tax and the new Medicare tax is the amount of income derived from these sources, reduced by any expenses associated with earning that income. Therefore in the case of rental properties, the taxable amount would be gross rents minus all expenses (including deprecation) incurred in operating the rental property. For example, if the gross rents were $100,000 with associated expenses of $40,000, net rents would equal $60,000 ($100,000 minus $40,000) would be included in your AGI.
The tax will only apply on the earnings from the sale of a personal residence if after the closing you received a large return on investment now categorizing yourself as “High Income”, a $250,000 profit for an individual of $500,000 profit for a married couple. Even then it would only be a tax on the amount over and above those thresholds.
We can understand all the confusion as categorizing the facts for this blog post was confusing enough. The law itself is inputted in highly technical language that only a qualified tax expert can fully grasp so please consult them for the most specific information to fit your situation. We offer this just as an explanation. Remember, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.
For the most up-to-date information on the housing market, continue checking RuhlHomes.com
Tags: agents, Building, buying, Buying a Home, caroline ruhl, first time buyers, high income tax, home, home buyer programs, housing market, illinois real estate, iowa real estate, Medicare, medicare bill, Medicare Tax, quad cities, Quad Cities Real Estate, Real Estate, Real Estate News, realtors, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Market Share, Ruhl&Ruhl Realtors, RuhlHomes, sales tax, tax credit, tax incentive
Posted in Real Estate News, Tips & Hints | No Comments »
Thursday, July 26th, 2012
Regional real estate sales are strong. Sales volume is up in almost all of our markets for the first 6 months of the year compared to 2011:
Burlington Area +17%
Cedar Rapids Area +16%
Clinton Area +34%
Dubuque Area +17%
Illinois Quad Cities +18%
Iowa Quad Cities +21%
Iowa City Area +28%
Muscatine/Wilton Area +12%
Ruhl&Ruhl REALTORS sales volume is up 29% through June and sales pended but not yet closed in June were up 23.5%, so the momentum continues.
Regionally, new construction sales are up 15% through June, while our new construction inventory has dropped 28%.
According to Eric Belsky, Managing Director of the Harvard Joint Center for Housing Studies, “people are slowly getting more confident…more Americans are deciding that it’s a good time to buy…you know, the opportunity to buy at or near the bottom of a cycle is great. And I think people are beginning to appreciate that… meanwhile, the cost of renting a house or apartment has been rising. When you compare the cost of owning versus the cost of renting, it hasn’t looked this good in 40 to 50 years.”
“And we are sitting in the ‘sweet spot’ in the country, both for real estate sales and appreciation,” notes Caroline Ruhl, President of Ruhl&Ruhl REALTORS. According to the Real Trends Housing Market Report, housing unit sales for May 2012 were up 20.1% in the Midwest, the strongest showing in the country for the fourth consecutive month. According to the Federal Housing Finance Agency, of the 303 MSA’s (Metropolitan Statistical Areas) ranked by home price appreciation, all of Ruhl&Ruhl’s markets ranked in the top 20% in the nation.
“The Housing market recovery is charging ahead with units in the double digit range while prices were up from a year ago for the second month in a row,” observes Steve Murray, editor of the REAL Trends Housing Market Report. “The market is being charged by the strong presence of investors and first-time buyers but far more move-up buyers are appearing. The shortage of inventory…is also starting to drive prices upward.”
Inventory in our region is declining. Properties listed for sale have fallen compared to June 2011: down 11% in the Burlington area, down 10% in the Cedar Rapids area, down 22% in DeWitt, down 26% in the Dubuque area, down 16% in the Illinois Quad Cities, down 4% in the Iowa Quad Cities, down 12% in the Iowa City area, down 17% in Maquoketa/Preston/Bellevue and down 6% in the Muscatine/Wilton area.
“Properties are selling faster than we can list them,” notes Ruhl. “In the Quad Cities, for example, we have the lowest inventory on the MLS that we have had since the summer of 2005. We really need more properties listed for us to sell.”
A family-owned company since 1862, Ruhl&Ruhl REALTORS has grown to 280 sales associates, 58 employees and eleven offices, selling more than 4,100 homes in eastern Iowa, western Illinois and southwestern Wisconsin. The company has residential sales offices in Bettendorf, Burlington, Cedar Rapids, Clinton, Davenport, DeWitt, Dubuque, Iowa City, Maquoketa and Muscatine, Iowa; and in Moline, Illinois. In addition to residential sales, the company offers services in relocation, property management, real estate investments, new home sales, land development, farm sales, senior services, home vendor services, insurance services through the Nelson Brothers Agency and mortgage services through 1862 Mortgage. For more information on Ruhl&Ruhl REALTORS, visit their website at www.RuhlHomes.com.
Tags: agents, Building, buying, Buying a Home, caroline ruhl, eastern iowa, first time buyers, home, home search, housing market, ia, il, illinois real estate, Illinois Real Estate Market, iowa city area, iowa real estate, Iowa Real Estate Market, new construction, New Construction Home Sales, quad cities, Quad Cities Real Estate, Quad Cities Real Estate Market, quad city, Real Estate, Real Estate News, Real Estate Sales Volume, realtors, regional markets, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Market Share, Ruhl&Ruhl Realtors, RuhlHomes, sales volume, selling your home
Posted in Real Estate News | No Comments »
Wednesday, June 13th, 2012
This blog often discusses the data behind the housing market. Today, we want to address the emotion behind the market comeback; a belief in homeownership which is still alive and well in this country.
A study conducted by Coldwell Banker and psychotherapist Dr. Robi Ludwig found that owning a home is still very much a goal for many Americans. In the study, 91 percent of those surveyed said owning a home is part of the American Dream. A second study by TD Bank, reported similar results:
- More than half of consumers polled say homeownership is a vital component to defining the American Dream
- 59% associated feelings of excitement or pride as part of their first time home buying process
- 84% of today’s younger renting generation-ages 18-34-intend to buy a home
This belief in homeownership is a major reason Americans are again buying homes. As Dr. Ludwig explains:
“Now that we’re picking up the pieces, we’re seeing a psychological shift. Instead of looking at homes through the eyes of an economist, we’re realizing that a home doesn’t solely equate to financial return or measure only to a mortgage amount. Instead the home is the emotional center of our lives, and it remains a critical component of who we are…
The feeling you get when you step through your front door or pull into your driveway is indescribable and priceless and the same holds true for our children who crave stability. While I know that financial hardships during the recession clearly have impacted many households, it is clear that the emotional value of a home is still strongly recognized.”
For the most up to date information on the housing market, keep checking RuhlHomes.com.
Tags: agents, buying, Buying a Home, caroline ruhl, first time buyers, home, home search, housing market, illinois real estate, Illinois Real Estate Market, iowa real estate, quad cities, Quad Cities Real Estate, Real Estate, Real Estate Sales Volume, realtors, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes
Posted in Real Estate News | No Comments »
Tuesday, May 1st, 2012
With good preparation, most things are easier. That works in mortgages too! Today, I want to give you some ideas that can make your mortgage experience less painful.
Income Items:
- Gather your documents. Today, many people will have to produce 2 years’ complete tax returns, including W2′s, 1099′s, K1′s, and all the schedules, as well as a month’s worth of pay stubs.
- Be prepared to explain them. Deductions in your returns and your pay stubs may impact the income your lender will use to qualify you which, in turn, has a big impact on the loan you will get.
- Have a breakdown of base pay versus overtime for both your pay stubs and 2 years’ W2′s. Lenders treat overtime (and bonus income) differently than your base pay. Be prepared to explain any changes over the last few years because your loan officer will ask you about it.
- Start accumulating your bank statements. Lenders look back 3 months from when you sign your contract of sale.
- You will have to explain any and all large deposits (which are defined as deposits greater than your regular pay check) because lenders want to make sure you haven’t taken out any new loans that aren’t on your credit report.
- Avoid any significant cash deposits. However, if you did have a cash deposit, understand that the lender will have you source it (a bill of sale and DMV receipt for that motorcycle, for example).
- If you will be receiving a gift, consult your loan officer on how to document it (from the donor’s ability to how you deposit it).
- Ask your loan officer to run your credit and go over it with them. Believe it or not, most credit reports contain errors. Best to identify them and get working on correcting them as early as possible.
- Do what you can to pay down your balances to under 30% of available credit to help you get the best score possible.
- Do NOT close accounts or pay off collection accounts without discussing it with your loan officer. Either one of these logical moves can actually have a negative impact on your score.
Asset Items:
- Start accumulating your bank statements. Lenders look back 3 months from when you sign your contract of sale.
- You will have to explain any and all large deposits (which are defined as deposits greater than your regular pay check) because lenders want to make sure you haven’t taken out any new loans that aren’t on your credit report.
- Avoid any significant cash deposits. However, if you did have a cash deposit, understand that the lender will have you source it (a bill of sale and DMV receipt for that motorcycle, for example).
- If you will be receiving a gift, consult your loan officer on how to document it (from the donor’s ability to how you deposit it).
Credit Items:
- Ask your loan officer to run your credit and go over it with them. Believe it or not, most credit reports contain errors. Best to identify them and get working on correcting them as early as possible.
- Do what you can to pay down your balances to under 30% of available credit to help you get the best score possible.
- Do NOT close accounts or pay off collection accounts without discussing it with your loan officer. Either one of these logical moves can actually have a negative impact on your score.
When buying a home, remember the Boy Scout motto, “Be prepared”. Following these suggestions will make your loan approval easier and less stressful.
Please remember that each mortgage company and application is different so for the most accurate information always talk to your preferred loan officer. To find out more information, contact Jane Schneider at 1862 Mortgage or any 1862 Mortgage Loan Officer for more information at 866.441.1862 or Info@1862Mortgage.com.
1862 Mortgage has partnered with Ruhl&Ruhl REALTORS to offer a convenient one-stop experience for both home buying and home financing needs nationwide. 1862 Mortgage is a DBA (Doing Business As) of Shelter Mortgage, an operating subsidiary of Guaranty Bank. As part of a strong and stable bank, 1862 Mortgage offers the promise of longevity and security along with a commitment to service excellence.
Information provided by: KCM Blog
Tags: 1862 Mortgage, applying for a mortgage, buying, Buying a Home, caroline ruhl, first time buyers, home, home search, housing market, illinois real estate, iowa real estate, mortgage, mortgage application, mortgage rates, mortgages, Quad Cities Real Estate, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes
Posted in 1862 Mortgage | No Comments »
