Archives for the month of: July2015

image003

Whether you’re new to homeownership, or in the process of hunting for your 10th residence – the one thing that most of us have in common is the need for a mortgage lender. (Any recent lottery winners out there? If so, you have our permission to skip this article.) And thank goodness for mortgage loans, because without them, it would take an awfully long time to scrape together the pile of cash needed to buy a home.

One thing that many buyers don’t realize, though, is that much like any other products we buy – the cost of a mortgage loan can vary widely from one lender to another. In fact, mortgage lenders themselves fall into different categories – such as banks, mortgage bankers, and mortgage brokers. For those not in the industry, the assumption is usually that all three of those are pretty much the same. But as real estate professionals who have worked with scores of different lenders, we can assure you, the loans they offer – and the costs they charge to obtain those loans – can be very, very different.

Since the economic downturn and housing market crisis, new regulations have gone into effect (Dodd-Frank) that were designed to assist and protect consumers seeking mortgage loans. One of the benefits to buyers coming soon is the implementation of new loan disclosure requirements (they go into effect nationwide on October 3, 2015).

One other benefit is that many of these laws placed restrictions on the fees that mortgage brokers, specifically, can collect from buyers for a home loan – and that is one of the reasons that all homebuyers should shop around. (Note: Some real estate professionals will guide clients to one particular lender, but there can be reasons for this that may not be financially beneficial to the borrower. They are known as “Market Service Agreements, and New Home Resource does not engage in this practice. Click here to learn more on this subject.)

One local mortgage broker who has taken a consumer-friendly approach with its home loans for Las Vegas valley homebuyers is Premier Mortgage Lending. Taking its cue from the Consumer Financial Protection Bureau’s (CFPB) new “Know Before You Owe” program, Premier Mortgage even created a complementary website, KnowBeforeYouOweNevada.com to help consumers be aware of their rights and options – and to offer plain-language explanations to your home loan questions.

Embracing the concept of ‘mortgage loan transparency,’ Premier Mortgage is one of the few Las Vegas lenders that offers a true “No Fee” home loan – meaning: No Loan Origination, Underwriting Fee, or Documentation Fees, which can literally save a borrower thousands of dollars out of pocket. That can mean the difference between getting the house you want – and the home you love. Or even in your ability to hear the words “Your loan was approved!” – rather than “We’re sorry to tell you . . .”

Shopping around for the right home loan is starting to sound like a pretty good idea now, right? We suggest contacting numerous lenders, gathering their Loan Estimates together, and then comparing them line-by-line. The CFPB has some tips here on how to do that, too.

In your search for the right mortgage lender, it’s helpful to have a good grasp of the terminology, too. Knowledge is power – so we’re going to leave you with a list of 15 lending terms that every homebuyer should be familiar with:

1. Adjustable Rate Mortgage (ARM). A type of loan where the interest rate changes periodically, up or down. Rates change generally according to movement in the financial market.

2. Annual Percentage Rate. The yearly cost of finance charges (interest, loan fees, service charges, mortgage insurance or other items).

3. Appraisal. An opinion of the fair market value of a land parcel and any improvements at a given point in time. This evaluation generally determines what the property would sell for in the current marketplace.

4. Cap. The limit to the amount an interest rate or monthly payment can increase for an ARM; may apply to either each adjustment or over the life of the loan, or both.

5. Closing. The final step in the purchase process when, through a licensed escrow holder (a neutral third party) the payment of the purchase price to the seller is completed, the Buyer’s note and loan agreement are delivered to the lender, and the deed to the buyer and any mortgage (trust deed) are delivered to the county recorder’s office for recordation.

6. Conventional Loan. A mortgage-secured loan that is not insured or guaranteed by a government agency such as FHA or VA.

7. Credit rating. A numerical score formulated by a credit bureau to assist a lender and seller in determining if a potential home buyer is a good credit risk. Your credit score can make a big difference in your costs and interest rate – so take good care of it.

8. Earnest Money. Money the buyer gives the seller to motivate the seller to enter into a purchase agreement with the buyer. These funds are later applied to the purchase price of the home, but are also funds at risk in the event the buyer breaches the purchase contract.

9. Fixed Rate Mortgage. A loan with an interest rate that remains the same for the entire repayment term.

10. Government Loan. FHA: This type of mortgage is backed by the Federal Housing Administration (FHA). VA: This type of mortgage is backed by the Department of Veteran Affairs. The maximum loan amount for these types of loans varies by county.

11. Mortgage Lender. This term includes banks, mortgage bankers, and mortgage brokers. Banks and mortgage bankers are typically ‘direct lenders’ who offer loan programs and services from a single bank. Mortgage brokers have the ability to shop your loan (using a single loan application) with numerous banks and lenders simultaneously to find you the lowest interest rate and/or the best loan program.

12. Equity. The difference between what a home is valued and what is owed on it.

13. PITI. Principal, interest, taxes and insurance; a quick way to reference your combined monthly house payment.

14. Principal. The amount of a loan, not including interest or other charges.

15. Private Mortgage Insurance (PMI). A type of insurance that is usually required by a lender if your down payment or equity is less than 20 percent of the loan value. PMI insures the lender against loss if you were to default on your mortgage.

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for a newly-built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to find the perfect property for you. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!

do-it-youself-home-project-tools

“I’ll do it myself, honey.. We’ll save money and it’ll be a piece of cake!”

How many do-it-yourself home improvement stories start like that – and end with total frustration? Actually a lot more than you would think. In spite of all the great “DIY” shows on television about flipping homes and rehabbing houses, it’s not as easy as it appears – especially if you’re not a handyman by trade. (Seriously, when is the last time you ever saw the star of one of those shows working up a sweat? Yep – they’ve got a whole crew of folks that take care of the details so they can look good on-camera!)

As this is the time of year most people start thinking of making some long-awaited changes, or if you just want to get your home dressed up and ready to sell – here’s a few questions you should ask yourself- BEFORE you dig in.

1. Are you overestimating your skills?

Some people are handy, and some just think they are. Especially if you’re making repairs in an effort to sell your home, remember this: Buyers can tell when things aren’t right (and they hire inspectors to help them with that, too). If a job isn’t done right, you may have to bite the bullet and hire a pro after the fact, too. Talk about frustrating.

2. What is your time worth?

It sounds easy, right? Remove the vinyl, lay some tile, get a little grout . . . and voila! And there’s probably no reason that you can’t actually get it done. But what other things will you have to set aside to make that happen? Work? The kids’ football games? Add to that the unsettling experience of having a room you use regularly torn up and unavailable – and the pressure is on you to perform in a hurry.

3. What’s your budget?

Whatever you think it’s going to cost – double it. Many times, people forget to add in the details, and it ends up costing a lot more than they expected. For example, you may be able to buy that flooring for $2.00/square foot – but what about the: glue, backing, underlayment, grout, tape, joint compound . . . and the list goes on. If you don’t have the necessary tools to do the job right, there’s another expense you weren’t counting on. By the time you calculate for overage and wasted material, repairs and touch-up when you’re done – that professional installer is starting to look much more appealing.

4. Do you have the right safety training?

Of the 43 million do-it-yourselfers who take on home projects, 20% of them wind up in the hospital each year due to accidents that occurred during those projects.

5. Do you need to get any building permits?

It may not seem like a big deal to you, but failure to have the necessary permits for certain improvements or repairs can actually kill a deal years after the fact. Home inspectors will look for them on record for the property, and if you can’t produce them, it can cause you big problems down the road.

6. They’re right when they say “the devil is in the details.” Do you know how to follow-through to the end of the project?

Some of the biggest complaints that buyers have is repairs or upgrades undertaken by the do-it-yourself homeowner – because they didn’t finish it as a professional would. Fudging the baseboard trim, failing to cut materials to the right size (and thinking that ‘caulking’ is your new best friend). They’re the signs of a job half-done, and you wouldn’t want to see that in your home, either.

In short, there’s a reason that people work in their trades – because very few of us can “do it all” – and their years of experience bring you a quality product that’s done right, done quickly, and best of all – includes a warranty (something do-it-yourselfers don’t have to rely on).

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for a newly-built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to find the perfect property for you. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!

vegas-homes.gi.topIt’s no secret that the real estate market has had a tough go of it these past few years here in Southern Nevada. But now, all the data and statistics are gathering to indicate that the housing marketing in Las Vegas is back in action. If you’re wondering what the local perspectives are as to what’s in store for both new and resale homes in the valley, here are some of the notable highlights:

Las Vegas Home Prices Are Up 8% Over Last Year

The Greater Las Vegas Association of Realtors (GLVAR) reports that local home prices and sales stabilized in May 2015 – with the median price of homes sold through MLS rising from last year’s $195,000 to the current median of $211,250. According to GLVAR President Keith Lynam, “Overall, home prices have been stable this year, and demand is steady in our housing market.”

New Home Prices, Sales, and Permits Up This Year In Southern Nevada

As reported by Vegas, Inc. recently:

  • New home sales have risen over last year by 8.9%.
  • Builders pulled 680 new home permits in May – for a total of 3,289 year-to-date – a jump of 23.3%.

Clark County Unemployment At Its Lowest Level Since 2008

Few things will drive down a housing marketing like unemployment. If people don’t have jobs, they can’t buy. That’s now changing in Southern Nevada, as recent statistics show that area unemployment rates fell to 6.6% – and that’s music to everyone’s ears.

Available Home Inventory Is the Current Challenge

While new home builders are racing to meet demand, it’s clear that one thing needed to balance the market is additional inventory. It wasn’t too long ago that such a statement would have been considered wildly optimistic for Las Vegas. But in a move to address the issue, banks are finally beginning to take action on eliminating one of the last dark clouds on the Southern Nevada horizon – cleaning up the books on foreclosures. In doing so, yet another obstacle to the housing market will be eliminated – and it’s a step in the right direction for the Las Vegas economy.

Indeed, even as prices are stabilized and beginning to climb, consumers are seeing the value in returning to homeownership. With mortgage loans becoming more readily available and low interest rates playing a key role, it’s clear that the housing crisis now in the rear-view mirror and the Las Vegas valley’s economy is once more on the rise.

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for a newly-built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to find the perfect property for you. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!

Untitled1It used to be called the “Till Decorating Do Us Part” syndrome. Couples building a home together can have such differences in how to get to the finish line, that sometimes it causes a real rift in a relationship. But with a little inside information, and an open mind as to why the extra garage is so important to him – and understanding her thoughts about timesaving design – couples can work together to create an environment that makes everyone happy.

There’s no doubt men and women view their homes differently, often in more ways than one. For the most part, however, it’s a ‘big picture’ concept that needs reconciling, and here’s why.

More often than not, the woman is the engine that keeps things in the home organized and efficient. She’s the driving force that gets the kids up and off to school, runs errands before and after work, and plans ahead to make sure the soccer schedules are met and there’s always something available for dinner. They know that thoughtful designs make it easier to keep it all running smoothly with minimal effort. That equates to floorplans that flow easily, sufficient storage space, and convenience features in the kitchen and laundry rooms. A functional, easy-to-maintain environment – that’s not too much to ask for, right? Other ‘big picture’ items for women includes visual appeal that’s easy to maintain; the quality of schools, community amenities, and the surrounding neighborhood.

To be fair, it’s not that men don’t want those things, too. (Strictly looking at generalities as they pertain to gender preferences here.) It’s more often that their minds are focused on other things. His thought that “Man, that 3rd car garage is where I can put the work bench I’ve always wanted” can easily conflict with hers that is “Great! Now we can park both cars in the garage and still have the storage space we need!” Men also place importance on a great space for the TV, where they can watch the game in comfort with friends and family. Even having space for a pub or pool room could be something they’ve always wanted. After all, we’re all social animals – and there’s a reason that the term “man cave” has even come into existence.

Men also tend to focus more on ‘cost’ rather than ‘value’ – as any woman who has put together her ‘dream upgrade list’ has surely come face-to-face with. <insert grin here!> For her, convenience equals value – so if a feature will make life easier, it’s worth it. On second thought, some things may never change.

But in building a new home – as in building and maintaining a relationship – seeing things from the other person’s viewpoint never hurts, and often helps. So take the time to find out what’s important to each other, then try shopping for your new home from that other viewpoint. You may be surprised at what you discover along the way!

New Home Resource helps current and future homeowners with all of their Las Vegas real estate needs. Whether your preference is for a newly-built home from a local builder, or a resale property in just the right location, a New Home Resource Realtor® is here to find the perfect property for you. Please contact a New Home Resource Realtor® today at 702-365-1000 or at www.newhomeresource.com. Broker Joanna Piette, and agents Denise Moreno Thrasher, Jessica O’Brien, Evelyn ‘Beng’ Kern, Lance Partin and Kathy Paterniti are all here to help!