Auto Added by WPeMatico

Two Big Myths in the Homebuying Process

The 2020 Millennial Home Buyer Report shows how this generation is not really any different from previous ones when it comes to homeownership goals:

“The majority of millennials not only want to own a home, but 84% of millennials in 2019 considered it a major part of the American Dream.”

Unfortunately, the myths surrounding the barriers to homeownership – especially those related to down payments and FICO® scores – might be keeping many buyers out of the arena. The piece also reveals:

“Millennials have to navigate a lot of obstacles to be able to own a home. According to our 2020 survey, saving for a down payment is the biggest barrier for 50% of millennials.”

Millennial or not, unpacking two of the biggest myths that may be standing in the way of homeownership among all generations is a great place to start the debunking process.

Myth #1: “I Need a 20% Down Payment”

Many buyers often overestimate what they need to qualify for a home loan. According to the same article:

“A down payment of 20% for a home of that price [$210,000] would be about $42,000; only about 30% of the millennials in our survey have enough in savings to cover that, not to mention the additional closing costs.”

While many potential buyers still think they need to put at least 20% down for the home of their dreams, they often don’t realize how many assistance programs are available with as little as 3% down. With a bit of research, many renters may be able to enter the housing market sooner than they ever imagined.

Myth #2: “I Need a 780 FICO® Score or Higher”

In addition to down payments, buyers are also often confused about the FICO® score it takes to qualify for a mortgage, believing they need a credit score of 780 or higher.

Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans, shows the truth is, over 50% of approved loans were granted with a FICO® score below 750 (see graph below):Two Big Myths in the Homebuying Process | Simplifying The MarketEven today, many of the myths of the homebuying process are unfortunately keeping plenty of motivated buyers on the sidelines. In reality, it really doesn’t have to be that way.

Bottom Line

If you’re thinking of buying a home, you may have more options than you think. Let’s connect to answer your questions and help you determine your next steps.

JERRY TORRES’
TEAM

Sr. Mortgage Loan Originator
NMLS #365615


THE PERFORMANCE TEAM



Cell: (626) 269-9945

Fax: (800) 339-5004

Team@JerryTorres.Pro

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro


Prime & NON-Prime Home Loans | Bank Statement Loans | ITIN | HELOCs

Confidence Is the Key to Success for Young Homebuyers

Buying your first home can seem overwhelming. Thankfully, there’s a lot of great information out there to help you feel more confident as you learn about the process. For those in younger generations who aspire to buy, here are three things to consider sooner rather than later in your journey:

1. Understand What it Takes to Purchase a Home

Overall, Millennials make up the largest group of homebuyers in today’s real estate market, and Gen Z is not too far behind. A recent study shared by Freddie Mac shows, however, that Generation Z isn’t as confident in the homebuying process as Millennials. The best thing potential young buyers can do is understand what it takes to buy a home. Learn as much as you can about the mortgage process, down payment options, and the overall steps to take along the way. 

2. Realize Your Opportunity to Build Wealth 

Homeownership allows you the chance to put a small portion of the home’s value down when you buy, and then watch your appreciation grow on the full value of the home – not just on the down payment. It’s one of the best investments you can make, and a form of forced savings working in your favor over time. The added bonus? You get to live there, too.

3. Find Someone You Trust to Help You Through the Process 

Having someone you trust to guide you through this process is invaluable. Finding a local real estate expert to help you navigate through the transaction and feel more confident as you make important decisions could be the best choice you make.

For Millennials and Gen Z’ers thinking about buying, today’s historically low interest rates combined with the outlook for future home appreciation is a big win. This means whatever you buy today, you’ll be bragging about 10 years from now. You can feel confident about that!

Bottom Line

If you’re ready, buying your first home sooner rather than later is one of the best decisions you can make. But there are many things to consider before taking that step, so let’s work together to help you confidently navigate the full journey.

JERRY TORRES’
TEAM

Sr. Mortgage Loan Originator
NMLS #365615


THE PERFORMANCE TEAM



Cell: (626) 269-9945

Fax: (800) 339-5004

Team@JerryTorres.Pro

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro


Prime & NON-Prime Home Loans | Bank Statement Loans | ITIN | HELOCs

How Trusted Professionals Make Homebuying Easier to Understand

In the spring, many excited buyers get ready to enter the housing market. Others continue dreaming about the homes they’d like to buy. The truth is, many potential buyers continue to dream longer than they need to, simply because they’re confused about the homebuying process. Thankfully, working with a trusted real estate professional can help ease those concerns and make the process to homeownership much easier to understand.

A recent survey conducted by Ipson and Freddie Mac reveals the confidence level of Gen Z and Millennial buyers regarding the homebuying process. The graph below shows the breakdown of the top results, clearly indicating there’s a significant portion of younger buyers who are not yet confident with some of the steps in the homebuying process.How Trusted Professionals Make Homebuying Easier to Understand | Simplifying The MarketBetween the homebuying process and the mortgage process, there are 230 possible steps in the transaction. With trusted professionals on your side, you certainly don’t have to know them all to have a successful experience.

There are many reasons why these steps can change as you move through each one. Depending on your personal circumstances, the term or your mortgage, and the type of loan you use, the path you take may need to vary. That’s why guidance and support from the experts is key.

In addition to the process itself, respondents in the survey definitely expressed concerns about understanding the types of loans available. Here are just a few of the basic loans to consider. Be sure to speak with your lender about the specifics of what will work best for you:

  • FHA: Loans guaranteed by the Federal Housing Administration for first-time buyers. They generally enable qualified borrowers to enter the housing market with a lower down payment.
  • Conventional: Loans that usually require a larger down payment. Repeat buyers usually use these types of loans since they have an established credit history as well as more money from the sale of their previous home (called equity) for a bigger down payment.
  • VA: Loans available for Veterans of the U.S. Armed Forces and their spouses. They are guaranteed by the Department of Veteran Affairs.
  • USDA: Loans for those living in rural and suburban areas. A qualified lender can issue a USDA home loan, and they are guaranteed by the United States Department of Agriculture (USDA).

Interest rates also popped up as a common area of confusion among Gen Z and Millennial respondents in the survey. With today’s rates hovering at near historic lows, it’s a fantastic time for buyers to get more house for their money in the current market. Why? When mortgage rates are this low and wages are increasing as they are today, overall affordability increases, enabling home buyers to stretch their mortgage dollars further. It’s just another area where a trusted professional can help simplify the process and give guidance along the way.

Bottom Line

There are many possible steps in a real estate transaction, but they don’t have to be confusing. To understand your best course of action, let’s get together today to ensure you have a trusted advisor who will help you feel confident and informed at every turn.

iCore Lending, INC Logo

Description: cid:image002.gif@01D172D6.89F11120Description: cid:image002.gif@01D172D6.89F11120Description: cid:image002.gif@01D172D6.89F11120

Jerry Torres Facebook Page Description: cid:image004.gif@01D172D6.89F11120 Jerry Torres WordPress Blog

JERRY TORRES
TEAM

Sr. Mortgage Loan Originator | Vision One Mortgage, Inc
NMLS #365615
| Company NMLS 7861

“THE PERFORMANCE TEAM”




Cell: (626) 269-9945

Fax: (800) 339-5004

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro

Homeownership Rate on the Rise to a 6-Year High

Regardless of the lack of inventory on the market, the U.S. homeownership rate has climbed to a 6-year high. The United States Census Bureau reported that it increased to 65.1% in the fourth quarter of 2019, representing the highest level in the past six years. See the graph below:
Homeownership Rate on the Rise to a 6-Year High | Simplifying The Market
This increase does not come as a surprise. According to realtor.com,

“The largest cohort of the millennial generation turns 30-years-old in 2020 and they are hitting the housing market in full force. At the end of the fourth quarter of 2019, millennials made up the largest generational segment of homebuyers, growing their share of home purchase mortgages to 48 percent.”

With so many Millennials entering a homebuying phase of life and getting into the market, the Millennial Report also explains,

“Homeownership is an even bigger goal for younger generations. Of those with savings, 41 percent of Gen Z and 40 percent of younger millennials are saving to buy a home.”

Today’s low interest rates are providing a break to new homeowners too, regardless of generation, making homeownership more desirable and achievable at the same time. Freddie Mac explains,

“The combination of very low mortgage rates, a strong economy and more positive financial market sentiment all point to home purchase demand continuing to rise over the next few months.”

The increase in homeownership rate was also represented by race and ethnicity of the householders. HousingWire explains,

“The homeownership rate for black Americans in 2019’s fourth quarter rose to 44%, a seven-year high, increasing from the record low it reached in 2019’s second quarter. The rate for Hispanic Americans was 48.1%, a two-year high, the Census data showed…The rate for white Americans was 73.7%, an eight-year high.”

See the graph below:Homeownership Rate on the Rise to a 6-Year High | Simplifying The Market

Bottom Line

If you’re considering buying a home this year, let’s get together to set a plan that will help you get one step closer to achieving your dream.

iCore Lending, INC Logo

Description: cid:image002.gif@01D172D6.89F11120Description: cid:image002.gif@01D172D6.89F11120Description: cid:image002.gif@01D172D6.89F11120

Jerry Torres Facebook Page Description: cid:image004.gif@01D172D6.89F11120 Jerry Torres WordPress Blog

JERRY TORRES
TEAM

Sr. Mortgage Loan Originator | Vision One Mortgage, Inc
NMLS #365615
| Company NMLS 7861

“THE PERFORMANCE TEAM”




Cell: (626) 269-9945

Fax: (800) 339-5004

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro

Should I Sell My House This Year?

If one of the questions you’re asking yourself today is, “Should I sell my house this year?” the current Housing Opportunities and Market Experience (HOME) Survey from the National Association of Realtors® (NAR) should boost your confidence as it relates to the current selling sentiment in the housing market. Even with all the information overload in the media circling around talk of a possible recession, the upcoming 2020 election, and more, Americans feel good about selling a house now. That’s some news to get excited about!

As the graph below shows, as of Q4 2019, 75% of people surveyed indicate they believe now is a good time to sell a home:Should I Sell My House This Year? | Simplifying The MarketIn the case of those with a yearly salary of $100,000 or more, the results jumped even higher, coming in at an 82% positive sentiment.

When the study divided the outcomes by region, the results still consistently showed Americans feeling good about selling:

  • Northeast: 71% positive
  • Midwest: 76% positive
  • South: 72% positive
  • West: 81% positive

In addition to looking at income and region, the report also divided the results by generation, as shown in the graph below:Should I Sell My House This Year? | Simplifying The MarketAs you can see, many believe that, despite everything going on in the world, it is still a good time to sell a home.

According to NAR, the unsold inventory available today “sits at a 3.0-month supply at the current sales pace,” which is down from a 3.7-month supply in November. The current inventory is half of what we need for a normal or neutral housing market, which should have a 6.0-month supply of unsold inventory. This is good news for sellers, as Lawrence Yun, Chief Economist at NAR, says:

“Home sellers are positioned well, but prospective buyers aren’t as fortunate. Low inventory remains a problem, with first-time buyers affected the most.”

Bottom Line

If you’re ready to list your home, you can feel good about the current sentiment in the market. Let’s get together today to determine the best next step when it comes to selling your house this year.

iCore Lending, INC Logo

Description: cid:image002.gif@01D172D6.89F11120Description: cid:image002.gif@01D172D6.89F11120Description: cid:image002.gif@01D172D6.89F11120

Jerry Torres Facebook Page Description: cid:image004.gif@01D172D6.89F11120 Jerry Torres WordPress Blog

JERRY TORRES
TEAM

Sr. Mortgage Loan Originator | Vision One Mortgage, Inc
NMLS #365615
| Company NMLS 7861

“THE PERFORMANCE TEAM”




Cell: (626) 269-9945

Fax: (800) 339-5004

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro

First-Time Buyers Are Searching for Existing Homes This Year

In the latest Housing Trends Report, the National Association of Home Builders (NAHB) measured the share of adults planning to buy a home over the next 12 months. The report indicates the percentage of all buyers that will be first-time buyers looking to purchase a home grew from 58% in Q4 2018 to 63% in Q4 2019.

The results revealed,

“Millennials are the most likely generation to be making plans to purchase a home within a year (19%), followed by Gen Z (13%) and Gen X (12%)…Prospective buyers in the youngest two generations are primarily first-time buyers:  88% of Gen Z buyers and 78% of Millennial buyers are reaching out to homeownership for the first time in their lives.”

With a high demand from first-time homebuyers and a shortage of inventory in the current market, selling your existing home this year might be your best move. Why? Because when homebuyers begin their search, they’re not all looking for new construction. Many are eager to find a little charm and character in a place to call home – possibly yours.

In fact, according to the same study, there is a significant demand for existing homes:

“In terms of the type of home these prospective home buyers are interested in, 40% are looking to buy an existing home and 19% a newly-built home. The remaining 41% would buy either a new or existing home.”

With showing activity up among buyers and more new construction coming to market, as a homeowner, you have the opportunity to sell your existing house now and move up into a new one, or downsize into a home that better fits your current and ever-changing needs.

Bottom Line

Not all buyers are looking for a newly built house. If you’re ready to take advantage of low mortgage rates and a high demand for your existing home, let’s get together to determine how we will market the charming details of your current house to potential buyers.

iCore Lending, INC Logo

Description: cid:image002.gif@01D172D6.89F11120Description: cid:image002.gif@01D172D6.89F11120Description: cid:image002.gif@01D172D6.89F11120

Jerry Torres Facebook Page Description: cid:image004.gif@01D172D6.89F11120 Jerry Torres WordPress Blog

JERRY TORRES
TEAM

Sr. Mortgage Loan Originator | Vision One Mortgage, Inc
NMLS #365615
| Company NMLS 7861

“THE PERFORMANCE TEAM”




Cell: (626) 269-9945

Fax: (800) 339-5004

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro

Where Homebuyers Are Heading By Generation [INFOGRAPHIC]

Where Homebuyers Are Heading By Generation [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • Whether capitalizing on job opportunities, affordability, or warm-weather places to retire, Americans are making moves to these top cities to take advantage of the strength in the current housing market.
  • A strong economy and lower mortgage rates have made it easier for many would-be buyers to get into the market. According to realtor.com, it just depends on which market.
  • To find the top market in our area, let’s get together.

iCore Lending, INC Logo

Description: cid:image002.gif@01D172D6.89F11120Description: cid:image002.gif@01D172D6.89F11120Description: cid:image002.gif@01D172D6.89F11120

 

Jerry Torres Facebook Page Description: cid:image004.gif@01D172D6.89F11120 Jerry Torres WordPress Blog

JERRY TORRES
TEAM

Sr. Mortgage Loan Originator | Vision One Mortgage, Inc
NMLS #365615
| Company NMLS 7861

“THE PERFORMANCE TEAM”



Cell: (626) 269-9945

Fax: (800) 339-5004

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro

 

Housing Inventory Vanishing: What Is the Impact on You?

The real estate market is expected to do very well this year as mortgage rates remain at historic lows. One challenge to the housing industry is the lack of homes available for sale. Last week, move.com released a report showing that 2020 is beginning with the lowest available housing inventory in two years. The report explains:

“Last month saw the largest year-over-year decline of housing inventory in almost three years with a dramatic 12 percent decline, pushing the number of homes for sale in the U.S. to the lowest level since January 2018.”

The report also revealed that the decline in inventory stretches across all price points, as shown in the following graph:Housing Inventory Vanishing: What Is the Impact on You? | Simplifying The MarketGeorge Ratiu, Senior Economist at realtor.com, explains how this drop in available homes for sale comes at a time when more buyers are expected to enter the market:

“The market is struggling with a large housing undersupply just as 4.8 million millennials are reaching 30-years of age in 2020, a prime age for many to purchase their first home. The significant inventory drop…is a harbinger of the continuing imbalance expected to plague this year’s markets, as the number of homes for sale are poised to reach historically low levels.”

The question is: What does this mean to you?

If You’re a Buyer…

Be patient during your home search. It may take time to find a home you love. Once you do, however, be ready to move forward quickly. Get pre-approved for a mortgage, be ready to make a competitive offer from the start, and understand that a shortage in inventory could lead to the resurgence of bidding wars. Calculate just how far you’re willing to go to secure a home, if you truly love it.

If You’re a Seller…

Realize that, in some ways, you’re in the driver’s seat. When there is a shortage of an item at the same time there is a strong demand for that item, the seller of that item is in a good position to negotiate. Whether it is price, moving date, possible repairs, or anything else, you’ll be able to demand more from a potential purchaser at a time like this – especially if you have multiple interested buyers. Don’t be unreasonable, but understand you probably have the upper hand.

Bottom Line

The housing market will remain strong throughout 2020. Understand what that means to you, whether you’re buying, selling, or doing both.

iCore Lending, INC Logo

Description: cid:image002.gif@01D172D6.89F11120Description: cid:image002.gif@01D172D6.89F11120Description: cid:image002.gif@01D172D6.89F11120

 

Jerry Torres Facebook Page Description: cid:image004.gif@01D172D6.89F11120 Jerry Torres WordPress Blog

JERRY TORRES
TEAM

Sr. Mortgage Loan Originator | Vision One Mortgage, Inc
NMLS #365615
| Company NMLS 7861

“THE PERFORMANCE TEAM”



Cell: (626) 269-9945

Fax: (800) 339-5004

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro

 

Buying a Home Early Can Significantly Increase Future Wealth

According to an Urban Institute study, homeowners who purchase a house before age 35 are better prepared for retirement at age 60.

The good news is, our younger generations are strong believers in homeownership.

According to a Freddie Mac survey,

“The dream of homeownership is alive and well within “Generation Z,” the demographic cohort following Millennials.

Our survey…finds that Gen Z views homeownership as an important goal. They estimate that they will attain this goal by the time they turn 30 years old, three years younger than the current median homebuying age (33).”

Buying a Home Early Can Significantly Increase Future Wealth | Simplifying The MarketIf these aspiring homeowners purchase at an early age, the Urban Institute study shows the impact it can have.

Based on this data, those who purchased their first homes when they were younger than 25 had an average of $10,000 left on their mortgage at age 60. The 50% of buyers who purchased in their mid-20s and early-30s had close to $50,000 left, but traditionally purchased more expensive homes.Buying a Home Early Can Significantly Increase Future Wealth | Simplifying The MarketAlthough the vast majority of Gen Zers want to own a home and are somewhat confident in their future, “In terms of financial awareness, 65% of Gen Z respondents report that they are not confident in their knowledge of the mortgage process.”

Bottom Line

As the numbers show, you’re not alone. If you want to buy this year but you’re not sure where to start the process, let’s get together to help you understand the best steps to take from here.

iCore Lending, INC Logo

Description: cid:image002.gif@01D172D6.89F11120Description: cid:image002.gif@01D172D6.89F11120Description: cid:image002.gif@01D172D6.89F11120

Jerry Torres Facebook Page Description: cid:image004.gif@01D172D6.89F11120 Jerry Torres WordPress Blog

JERRY TORRES
TEAM

Sr. Mortgage Loan Originator | Vision One Mortgage, Inc
NMLS #365615
| Company NMLS 7861

“THE PERFORMANCE TEAM”




Cell: (626) 269-9945

Fax: (800) 339-5004

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro

Millennials Are on the Move as First-Time Homebuyers [INFOGRAPHIC]

Is Your First Home Now Within Your Grasp? [INFOGRAPHIC] | Simplifying the Market

Some Highlights:

  • According to NAR’s latest Profile of Home Buyers & Sellers, the median age of all first-time homebuyers is 32.
  • With more millennials entering a homebuying phase of life, they are driving a large portion of the buyer appetite in the market, keeping buyer activity strong.
  • More and more “old millennials” (ages 25-36) are realizing that homeownership is now within their grasp, and they’re actively dominating the first-time homebuyer market!

iCore Lending, INC Logo

Description: cid:image002.gif@01D172D6.89F11120Description: cid:image002.gif@01D172D6.89F11120Description: cid:image002.gif@01D172D6.89F11120

Jerry Torres Facebook Page Description: cid:image004.gif@01D172D6.89F11120 Jerry Torres WordPress Blog

JERRY TORRES
TEAM

Sr. Mortgage Loan Originator | Vision One Mortgage, Inc
NMLS #365615
| Company NMLS 7861

“THE PERFORMANCE TEAM”




Cell: (626) 269-9945

Fax: (800) 339-5004

https://www.JerryTorres.Pro/

#TechieLoanOriginator | #JerryTorresPro