Cedar City Real Estate Podcast

How Do Fannie Mae’s Recent Changes Affect Those With Student Debt?

samdodd@gmail.com (Sam Dodd) — Mon, 26 Jun 2017 07:47:00 -0700

If you have a student loan or you are a cosigner on one, I have some good news for you.

Selling your home? Get a free home valuation

Buying a home? Search all homes for sale on the MLS

Fannie Mae, the nation's largest underwriter of mortgages, recently introduced three new rules that will affect those with student debt.

These new rules can make it easier to get a mortgage, and they can make it easier to pay off your (or your kids’) student loans.

The first change is for those on income-based repayment plans, where having a high debt-to-income ratio is the No. 1 reason for not being approved for a mortgage.

Fannie Mae previously used a very conservative 1% of the total loan instead of the actual monthly payment. This can drastically lower your debt-to-income ratio and give you a much better chance of qualifying for a mortgage.

Some folks are lucky enough to have their student debt paid by their parents, or even by their employer. The thing is, Fannie Mae didn't take this into account when calculating the debt-to-income ratio. That's the second new change.

If you can qualify for a mortgage right now, you definitely should.

If your employer or your parents have been paying off your student debt and you can show evidence of this for the past 12 months, then this debt won’t be counted in your debt-to-income ratio. This makes it more likely you will qualify for a mortgage.

If you can qualify for a mortgage right now, you definitely should. Rates are still at a historic low, and lots of great houses have recently come on the (area) market.

Fannie Mae also makes it possible to refinance your mortgage for more than the value of your home. Normally, there is a 0.25% fee that applies to any cash you take out in this way.
The third big change is that Fannie Mae will now waive that fee when you use this cash to pay off a student loan.

This applies whether the loan is yours, or you're a cosigner. If the mortgage rate is significantly lower than the student loan rate, it can make sense to refinance in this way; and, the new rule makes it cheaper to do so.

If you need help understanding these new guidelines to see whether they’re right for you, or you have questions about putting them into practice, give me a call or send me an email. I’ll be glad to help.

3 Things Every First-Time Homebuyer Should Know

samdodd@gmail.com (Sam Dodd) — Tue, 13 Jun 2017 13:43:00 -0700

Buying your first home can be an incredibly exciting time. However, it requires a huge commitment and a sizable investment.

Selling your home? Get a free home valuation

Buying a home? Search all homes for sale on the MLS

I want to share my three top tips to help first-time homebuyers protect themselves during this crucial period:

1. Know what you can afford

Your mortgage is only a part of what you will need to pay when you buy a home. Homeownership comes with plenty of other expenses, including closing costs, taxes, property insurance, maintenance costs, and homeowner association fees.

Once you have a clear idea of how much all of these items will cost, you can compare it to your current monthly expenses. Then you can figure out the kind of home you can honestly afford without getting carried away and without getting bogged down in debt.

2. Choose your lender wisely

Choosing a lender is not something you should base only on the lowest rate. A competent and trustworthy lender will offer you advice on how to improve your credit and also help you take advantage of special homebuyer programs that might benefit you.

But how do you find the right lender specifically for you? It's often best to get recommendations from friends who have already worked with a lender or from a real estate agent you trust.

An inspection will cost about $300, but it can save you thousands.

3. Don't overlook the details

There are many details that go into buying a home, and missing any of them can be a costly mistake. I always advise buyers to get a professional inspection done on their home, separate from the appraisal. An inspection will set you back about $300, but it can save you thousands of dollars down the line, and it can even prevent you from making a decision to buy a home that you would later regret.

A second example is understanding the fine print in the various contracts you will be signing. If there's anything that isn't clear to you, talk to your real estate agent and have it spelled out.

The process of buying a home can be intimidating, and that's why professional real estate agents are there to help. These three quick tips are only the start of the things you need to watch out for when buying your first home.

If you need more advice or you are ready to start looking for a home, give me a call or send me an email. I love working with first-time homebuyers, and I can help you get your perfect new home with minimum hassle.

You Don’t Need a Down Payment

samdodd@gmail.com (Sam Dodd) — Tue, 30 May 2017 10:05:00 -0700

What's the biggest obstacle to homeownership? According to a recent survey, "saving enough for a down payment" comes at the top of the list.

Selling your home? Get a free home valuation

Buying a home? Search all homes for sale on the MLS

Down payments. A whopping 55% of prospective homebuyers cited this as their main stumbling block.

And with the continuing growth of home prices, things aren't getting any easier. In fact, homeownership rates reached a 20-year low last November.

It wasn't always like this.

A decade ago, many lenders were offering easy, no-money-down mortgages.

However, after the financial crisis, mortgage standards have become more restrictive. A typical mortgage now requires a 20% down payment.

Here's the good news.

If you have decent credit and a steady income, you might be qualified for a number of specialized programs that require no or very little down payment. Here are a few of the top options.

First, there's the USDA loan, which is valid for homes in certain regions, such as rural and suburban areas.

55% cited the lack of a down payment as their main stumbling block.

With zero money down and lenient credit requirements, the USDA loan can be a great choice for many homeowners.

Second, there’s the VA loan, which you can apply for if you or your spouse served in a branch of the military.

It's possibly the most generous zero-money-down mortgage because of low interest rates and low closing costs.

Third, there's the FHA loan. It does require a 3.5% down payment — still drastically more achievable than the 20% required for a conventional mortgage.

Finally, there are a number credit unions and first-time homebuyer programs that might apply to your particular situation.

There’s one important thing you should know.

If you get one of these no-money-down mortgages, chances are good you will be required to pay private mortgage insurance, which can drive up your monthly payments.

Fortunately, private mortgage insurance will disappear after your mortgage balance is under 80%. Also, the money you do pay will be tax deductible in most cases.

In short, there are lots of options to make owning a home a reality for you, even if you haven't saved up tens of thousands of dollars.

If you need more advice on getting a no-money-down loan, give me a call. I can put you in touch with some experienced Southern Utah area lenders who can answer your questions and help get you started.

How Do Credit Scores Impact Home Buyers?

samdodd@gmail.com (Sam Dodd) — Mon, 21 Nov 2016 14:38:00 -0800

Bryce Bishop from Citywide Home Loans is here to answer a common question I hear from buyers: “How does my credit score impact my ability to get a mortgage?”

Selling your home? Get a free home valuation

Buying a home? Search all homes for sale on the MLS

Today, Bryce Bishop from Citywide Home Loans is here to discuss how credit scores impact your home buying ability.

When you get ready to buy a home, Bryce will gather some financial and personal information. He will also pull your credit score from three different bureaus and look at the middle score. Credit scores can range anywhere from 400 to 800. If you have a score of 740 or higher, you are good to go.

If your score is between 620 and 740, then your rates, financing, and down payment may all vary. It is important to have a good credit score but there are some great government loans out there for people with lower scores. These programs offer excellent interest rates and they are pretty liberal, allowing people with low scores to get a home.

“

There are great loan products available for people with lower credit scores.

”

Some of those programs include USDA and FHA loans. There is also the Utah Housing loan, which offers 100% financing to home buyers. There are also conform and conventional loans that offer 5% to 20% down payments. So, even if your credit score is a little low, there are plenty of loan products out there relative to your credit score.

If you have any other questions for Bryce, you can give him a call at 435-590-3613. As always, if you have any real estate questions, please don’t hesitate to reach out to me. We would be happy to help you!

How Lenders Determine Mortgage Qualification

samdodd@gmail.com (Sam Dodd) — Thu, 3 Nov 2016 07:58:00 -0700

Today we're talking with a mortgage expert to discuss the most important factors that lenders look at when determining whether you qualify for a mortgage.

Selling your home? Get a free home valuation

Buying a home? Search all homes for sale on the MLS

Today I wanted to talk about qualifying for a mortgage, so I've brought in Bryce Bishop of Citywide Home Loans to help me explain. According to Bryce, there are three main parts when it comes to qualifying for a mortgage.

Because of the downturn in the market from a few years ago, credit is the number one factor that lenders look at. It's imperative that you get with a mortgage professional who will pull your credit and have it analyzed to make sure you're credit-worthy for a mortgage. If you're not, they can help you put yourself in a position to repair your credit and qualify for a loan down the road.

“

Lenders will consider three main factors to qualify for a mortgage.

”

Another key thing a lender will look at is your debt-to-income ratio. They will consider your income to make sure that you're not borrowing too much to handle. This is an easy ratio to figure out that nearly any mortgage professional can help you with, Bryce says. Additionally, they will look for a solid two-year work history and rental/mortgage history. They want to make sure you won't have 'payment shock' by going from a small payment to a much bigger one.

If you have questions for Bryce or you're interested in seeking a mortgage, you can call him at 435-590-3613.

If you have any real estate-related questions regarding the Southern Utah market, feel free to give me a call for send me an email. I'd be happy to help you!

Questions to Ask Yourself Before Buying a Home

samdodd@gmail.com (Sam Dodd) — Mon, 3 Oct 2016 08:15:00 -0700

Before you decide to buy a home, you need to determine a few other things. Your motivation, your location, and the market each play an integral part.

Before making the decision to buy a home, there are a few questions you should be asking yourself to determine if it’s the right step:

1. Why? Why are you thinking about buying a house? Get outside of the financial and think about your motivations and what buying a home means to you. When I was renting, I hated the fact that my landlord could tell me whether or not I could paint or have a pet. Saving money over time is a common motivation these days with rising rents.

“

Saving money over time is a common motivation these days.

”

2. Where? Where do you want to move? Where are home values heading? According to CoreLogic, home prices are predicted to go up by over 5% in the next year. It really is a great time to buy.

3. What’s happening with interest rates? If you talk to Fannie Mae, Freddie Mac, or any other organization that tracks these rates, they'll say that they’re bound to go up eventually. When they do go up, it makes homes more expensive. Right now, though, it is cheaper to buy a home than to rent one.

If you have any questions for me, please give me a call or send me an email. I would love to hear from you!

Why We Use Professional Photos to Sell Homes

samdodd@gmail.com (Sam Dodd) — Thu, 8 Sep 2016 08:16:00 -0700

Studies show that 95% of home buyers start their search online, which is why high-quality, professional photos of your home are so important. Tune in to learn more.

Selling your home? Get a free home valuation

Buying a home? Search all homes for sale on the MLS

Using professional photography when selling your home is incredibly important.

The National Association of Realtors did a study and found that 95% of home buyers start their search online. If 95% of home buyers are starting their search online, they’re looking at those pictures.

It’s important to have high-quality professional pictures of your home so that you’re presenting it in the best light. Professional photographers have better cameras, equipment, and lighting tools that create pictures that really are a lot better.

“

Studies show that 95% of home buyers start their search on the Internet.

”

You may have seen pictures on the MLS that are small or grainy, but that will never happen with a professional photographer. Also, our team has started using drone photography for all of our listings. This allows people to see things like the layout of the house on the lot, the lot itself, and whether or not you have a good view. It also helps showcase waterfront properties.

I hope this helps you if you’re preparing your home for the market. If you have any questions for us about photography or about real estate in general, give us a call or send us an email. We’d be happy to help you!

The Latest Cedar City Market Statistics

samdodd@gmail.com (Sam Dodd) — Fri, 15 Jul 2016 09:24:00 -0700

Selling your home? Get a free home valuation

Buying a home? Search all homes for sale on the MLS

We have some very important real estate statistics for Cedar City to share with you. The year is halfway over, so we thought it would be a good time to give you an update on what our local market looks like.

In Cedar City, there are just about 300 homes on the market right now. Last month, we sold just over 80. We are currently under a four-month supply of homes, which is considered a seller’s market. Prices are increasing due to low inventory as well.

One stat I found interesting was the list-to-sale price ratio. Right now, our average is 98.4%. That’s the highest figure I’ve seen in my 12-year career. Home sellers are getting almost all of their asking price on average. Some are even getting more than asking price.

“

LEAVE THE LOWBALL OFFERS AT HOME.

”

Another thing that’s really important to know is that our market has a tipping point at which homes don’t really sell or sell infrequently. This year, we've only had two homes sell that were priced over $500,000. For comparison, we’ve seen 75 homes priced between $400,000 and $500,000 sell.

If you’re a buyer, this tells you that it’s important to get prequalified. You’re likely going to be competing against other buyers, so leave the lowball offers at home.

If you are a seller, you want to price right from the beginning so you can get multiple offers or offers above asking price.

If you have any questions for us at all or want a copy of these market statistics, give us a call or send us an email. We look forward to hearing from you!

Your New Resource for Helpful Utah Real Estate Info

samdodd@gmail.com (Sam Dodd) — Mon, 27 Jun 2016 11:16:00 -0700

Selling your home? Get a free home valuation

Buying a home? Search all homes for sale on the MLS

Hello and welcome! In my new blog, I'll share tips on real estate for buyers and sellers alike, as well as market trends that affect our community and the surrounding areas. I want my blog to be a valuable resource to you and a go-to spot for answers to any questions you may have.

“

I WANT MY BLOG TO BE A
VALUABLE RESOURCE TO YOU.

”

I'll send out two helpful and informative videos per month. If you are curious about any topics, just send me an email and I'll create a video about it. Don't hesitate - if you have a question, the answer would probably be helpful to many others! I look forward to hearing from you. Until next time, have a great day.

Get Off of the Fence: Buyers Take Advantage of Low Home Prices and Interest Rates!

samdodd@gmail.com (Sam Dodd) — Wed, 5 Mar 2014 12:44:00 -0800

What is the Current State of the Cedar City Real Estate Market

Right now, the Cedar City Market is favoring sellers; there simply isn’t enough inventory to sustain the amount of sales. We’re experiencing some great growth from all the businesses coming into the area and it also makes for a great market for selling!

As for interest rates, the rates for a 30 year mortgage are hovering at about 4%. I hate to say it, but based on actions from the Federal Reserve, interest rates will rise in the coming months. These are unnaturally low interest rates!

Right now, there are 279 homes on the market in comparison to the 325 homes that were on the market this time last year. This equals about six months’ of inventory! Also in 2013, home prices were up 20% overall; we are currently up 3% from January 2013. This helps sellers obviously, but buyers need to get off the fence if they are thinking about buying. You won’t have another time where both interest rates and home prices are low!

Please reach out to me if you have any questions. Thanks and have a great day!

Real Estate Investing: What Makes Now a Great Time to Invest?

samdodd@gmail.com (Sam Dodd) — Thu, 20 Feb 2014 13:05:00 -0800

Is Now a Good Time to Invest in Real Estate

Right now is an awesome time to invest in rental properties! I am personally buying rental properties and the reason why it is such a great time is due to the low prices. After six years of the worst real estate market we’ve ever seen, prices are low and so are interest rates. When you combine those two factors, it creates the perfect storm for buying rental properties because you’re buying on the low end and the money is cheap to lend.

My advice to first time investors is to make sure the numbers work. You don’t want to buy a rental property that will cause cash-flowing, needs excessive repairs or that is in a bad area. This is something my dad taught me and it hasn’t failed me yet!

If you have any questions about investing in real estate or real estate in general, give me a call or send me an email. Thanks and have a great day!

Why Should You Be a Pre-qualified Buyer?

samdodd@gmail.com (Sam Dodd) — Wed, 22 Jan 2014 10:09:00 -0800

There are many great Cedar City area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (435) 572-4243 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today I wanted to talk to you about why it’s so important for buyers to be pre-approved before they start shopping for homes and especially before they make an offer. The first reason is so they know what they can afford and what their monthly payment will be on different loan amounts. Also, with lending regulations tightening, it’s always nice to speak with a lender beforehand to work through any issues before going out and spending a bunch of time and making offers on homes you may or may not be able to afford.

After being pre-approved and you submit an offer on a home, you’re offer will show stronger than a person who hasn’t been pre-approved. This is especially helpful in multiple offer situations, as we have been familiar with as inventory shrunk, because it shows you have taken care of the financing.

Click the link above if you’re interested in searching for homes and give me a call at (435) 701-0448 if you’re looking to sell. Thanks and have a great day!

What Did You See in 2013?

samdodd@gmail.com (Sam Dodd) — Mon, 6 Jan 2014 13:31:00 -0800

Today I wanted to recap the real estate market in Cedar City for 2013 and also give you some insight to what might happen in 2014. For the entire year, 2013 was a seller’s market but the market has gotten stronger and stronger as the year has progressed. Our average sales price rose from $119,000 to $149,000 which accounts for a 25% increase. Our inventory went from 623 homes on the market down to just 194 which was a drop from an 11 month supply down to a 2 ½ month supply of homes. We are hoping for another year like this in 2014.

Interest rates dropped all the way until January when the Fed made the announcement about tapering the purchases of bonds. The interest rates have crept up since June going from 3.5% to 4.5%. They may have risen, but rates are still very low.

In 2014 I expect continued growth and the reason being is that Syberjet has decided to build a manufacturing plant here in Cedar City and will add about 1,500 jobs. Part of their package included an extremely large tax break but they have to hire at an average of $50,000 a year. For a town of 30,000 people, we will see huge growth as people move in to fill those jobs. There is also an LDS Temple being built, the iron mine out west is investing in a large smelting plant and other small to mid-range businesses starting up.

Thanks and have a great day!

Should You Accept the First Offer?

samdodd@gmail.com (Sam Dodd) — Wed, 18 Dec 2013 14:06:00 -0800

Today I wanted to discuss with you about whether the first offer is the best offer. I’ve found that in many cases, the first offer is in the best offer. The reason being that with so much technology available, buyers have more information than ever before and often know of other homes on the market before some agents do. Buyers sign up for text and email alerts to be notified when homes are being listed and are sometimes prequalified. When you combine these factors, the buyer typically presents a strong first offer.

Also, when these buyers make these first offers, it is usually within the first weeks of the home being listed causing the buyers to be more aggressive in their offer. When homes sit on the market for few months with a few price reductions, buyers are more apt to make low-ball offers. I’ve found that when buyers ask how long the home has been on the market for, they are very interested in the home and how to gage what kind of offer they can make on the home. Consider all offers, but generally the first offer is the best offer.

If you are interested in selling your home, please check out my home value report or give me a call. Thanks and have a great day!

7 Tips for Prepping Your Home for Sale

samdodd@gmail.com (Sam Dodd) — Wed, 27 Nov 2013 14:47:00 -0800

Today I wanted to go over the seven things you can do to prepare you home for sale. The first thing that I always recommend is increasing your curb appeal. This can be done by cutting your grass, power washing your driveway and home (if you have vinyl siding), painting your front door, weeding your flower bed and planting fresh flowers. A good first impression is essential. Another thing that is very important is making any/all small repairs. If buyers notice small things that could have easily been fixed, they often wonder what else could be in store for them. Giving your home a thorough cleaning, even by a professional, because you may not see the same thing a buyer would. Having a friend come over and truthfully tell you what needs attention is a great choice as well.

De-cluttering your home is a necessity as well. Making storage spaces and rooms look as big as possible; renting a storage unit can help remove things from your home. Do your home a favor by opening the blinds and letting the natural light in. This tends to give your home a “warmer” feel.

If you have pets, make sure you remove all traces of them as buyers could be allergic to them. Removing smells like smoke, musty laundry, food or pet smells is important as well. Burning a candle or baking cookies tends to do the trick. If you are interested in selling your home, please check out my home value report of give me a call. Thanks and have a great day!

Should You Sell Your Home Now or Wait Until Spring?

samdodd@gmail.com (Sam Dodd) — Mon, 11 Nov 2013 13:15:00 -0800

Contrary to popular belief, the fall is a great time to sell your home. That is because people tend to take their home off the market during the fall because they don’t want their home listed during Christmas or they actually believe that homes don’t sell during the fall. Those notions are completely wrong. There are more serious buyers in the fall and you have less competition, which means higher sales price for you.

If you are interest in selling your home, give me a call at (435) 701-0448 or email me at samdodd@gmail.com. Also, if you have questions about your home’s value, check out our free home value report. Thanks and have a great day!

How Has the Lack of Inventory and Bump in Interest Rates Affected the Market?

samdodd@gmail.com (Sam Dodd) — Mon, 28 Oct 2013 14:43:00 -0700

As we progress through fall, the market is still fantastic. Homes are still selling and we are steadily improving by 2% each month. The lack of inventory on the market is keeping homes moving and often above asking price. The bump in interest rates has actually improved the market because people have gotten off the fence and locked in their interest rates and purchasing before they go up any higher. The market is clearly in favor of the sellers as long as the home is priced right.

If you have any questions about the market, don’t hesitate to call me at (435) 701-0448 or email me at samdodd@gmail.com. Thanks for stopping by and make sure to look at the free home evaluation tool. Have a great day!