865 Real Estate

East Tennessee Real Estate & Neighborhood Source

2 Mortgage Myths That Are Effecting Home Buyers

By

Fannie Mae’s “What do consumers know about the Mortgage Qualification Criteria?” Study revealed that Americans are misinformed about what is required to qualify for a mortgage when purchasing a home.

Myth #1: “I Need a 20% Down Payment”

Fannie Mae’s survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 76% of Americans either don’t know (40%) or are misinformed (36%) about the minimum down payment required.

Many believe that they need at least 20% down to buy their dream home. New programs actually let buyers put down as little as 3%.

Below are the results of a Digital Risk survey of Millennials who recently purchased a home.

2 Myths About Mortgages That May Be Holding Back Buyers | MyKCM

As you can see, 64.2% were able to purchase their home by putting down less than 20%, with 43.8% putting down less than 10%!

Myth #2: “I need a 780 FICO Score or Higher to Buy”

The survey revealed that 59% of Americans either don’t know (54%) or are misinformed (5%) about what FICO score is necessary to qualify.

Many Americans believe a ‘good’ credit score is 780 or higher.

To help debunk this myth, let’s take a look at the latest Ellie Mae Origination Insight Report, which focuses on recently closed (approved) loans. As you can see below, 54.1% of approved mortgages had a credit score of 600-749.

2 Myths About Mortgages That May Be Holding Back Buyers | MyKCM

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will definitely make the mortgage process easier. Your dream home may already be within your reach. Have questions or want to get the process started? Contact me, Troy Stavros with Gables & Gates, REALTORS today at 865-777-9191 to setup a time to talk.

3 Questions Every Home Buyer Should Know The Answer To

By

VIDEO: There are 3 questions every potential home buyer should know the answer to. I give you the questions…and the answers. There are many potential home buyers still renting because they believe they can’t qualify for a mortgage. This information could be a game changer for them, as their is a lot of misinformation out there. Have questions? Contact me at 865-777-9191. Here is the link to the USDA site: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Did You Know There Are 1% Down Home Loans Available?

By

Did you know there are 1% down payment home loans available? Many home buyers think they need 20% down to buy a home and that is stopping them from buying. That is simply not true. There are loans starting at 0% for veterans, then 1%, 3%, and 5%. There is an option that will work for you! Interested in finding out more? Contact me, Troy Stavros with Gables & Gates, REALTORS at 865-777-9191 or text me at 865-999-0925 to setup a time to talk.

Affordability May Not Be This Good For Too Long. It’s Time To Buy!

By

Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are still below those of a few years ago and interest rates have stayed near historic lows.

Sellers should realize that waiting to make the move when mortgage rates are projected to increase probably doesn’t make sense. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain budget for your monthly housing costs. 

Here is a chart detailing this point:

Don’t Wait! Move Up To Your Dream Home Now! | Simplifying The Market

According to Freddie Mac, the current 30-year fixed rate is currently around 3.75%. With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, by $10,000).

Freddie Mac predicts that mortgage rates will be closer to 4.7% by this time next year.

Act now to get the most house for your hard-earned money.

VIDEO: Shaping Up To Be A Great Year For Real Estate!

By

VIDEO: Some of the housing headlines are causing concern for some consumers who are in the process of either buying or selling a home. Pundits are concerned over the lack of new construction or the month-over-month sales numbers. Let’s set the record straight; 2015 was a good year for residential real estate in the United States and 2016 is starting out stronger.

Here is a graph of total homes sold (new construction and existing homes) in the first two months in 2016 compared to last year:

2016 Home Sales Doing Just Fine!! | Keeping Current Matters

Will this momentum continue?

If we look at foot traffic (the number of purchasers currently out looking at homes), we can see that the spring buying market has started early and all indicators point to the fact that we may have the best spring in over a decade.

2016 Home Sales Doing Just Fine!! | Keeping Current Matters

Bottom Line

The 2016 housing market started out well and looks to be gaining steam. If you are thinking of buying or selling a home, now may be a great time.

SPRING 2016 Real Estate Guides Ready for Download!

By

My Spring 2016 Real Estate Guides are done and ready to be downloaded. Feel free to share with your friends and family and as always, don’t hesitate to contact me with any questions or if I can help you in any way.  You know I’m always here for you! CLICK HERE for the guides: http://vid.us/or55yo  Thanks for visiting! Troy Stavros, Gables & Gates, REALTORS 865-777-9191.