Are you on the hunt for a home in Fishers, Indiana or maybe even less populated parts of Indiana? How’s your search going? Have you discovered yet, that some of the homes listed for sale are not actually on some of those sites and tools you use? Or maybe even found a house you love only to discover that it sold...9 months ago? What’s up with that??!
As you begin your search, one thing to understand is how that data (that information) gets out there in the first place. Typically when someone lists their home with an agent it gets entered into what locally is called the BLC (Broker Listing Cooperative) - which is the same thing as the MLS (Multiple Listing Service). Locally they wanted to brand their own name to something that already has a name, with a name that means the exact same thing as the first name. Yeah - I know. You probably don’t care, and why should you, that particular bit, has very little to do with you.
So the listing goes into the BLC, which is what we agents use to locate and advertise homes for sale - it is basically a big cooperative agreement between brokers. From here, this data goes out to a variety of third party websites - like realtor.com, trulia, zillow, every member broker that has a website, which is probably just about all of them. Some, don’t send their listing data to Zillow or...
Mortgage insurance premiums on FHA-backed loans will be lowered by 25 basis points on loans endorsed starting January 27!
Sounds great right! - Now you ask, what does that mean? Well for starters is will mean more borrowers are eligible to purchase a home through FHA. Basically - it won’t cost you as much on the monthly payment due to the Mortgage Insurance required on an FHA loan - this could translate to a savings to the average home buyer by as much as $500 per year.
Looking for the Official release? [Click Here to access the article by HUD.gov]
In case you forgot - I know most of us have tried to - a few years back we had a bit of a housing bubble bursting thing that did quite a bit of damage. To help fix that requirements were put in place to make it more difficult to get these types of loans - essentially, making the loans less risky for the government. Now after a few years of solid growth, a review has shown that the insurance funds that protect on defaulting lenders is above where they needed it to be. Now they can make some tweaks and adjustments to relax some of those requirements.
Mind you, we’re not all the way there yet - One drawback on an FHA loan is that you pay that MIP (Mortgage Insurance Premium) over the life of the loan. It doesn’t go away when you build up 20% equity like more conventional loans. Yeah,...
Our current market is lacking inventory and when inventory is low buyers have a tendency to pay more and sometime struggle to find the home they really want. The old “Supply and Demand” adage applies very much to the real estate industry.
So When some recent buyers, let’s call them Tom and Sue, went out to look for a home to purchase, they struggled. At first they struggled because while shopping online, they kept seeing the same homes, over and over again - and they kept thinking, “Man those are expensive” - they started to think that they really couldn’t afford to buy a home.
When they did finally find a home that had recently come on the market, they immediately called the listing agent, who happily met them at the house to show them, and then told them that there were already several interested parties. Tom and Sue panicked a bit, because, THIS was the house they had been looking for. The agent showing the home told them that if they wanted even a chance at getting this house, they would need to put an offer in that day. They hadn’t even had a conversation with a loan officer to see what their payments would be, or even for that matter, what they could afford. Not Tom and Sue both work and earn a really good living, so they weren’t too worried. They told the agent that they would call their loan officer and get back with the agent about putting in an offer. Sue, really wanted the house and left practically in tears worried that someone else would buy it.