What’s going on with Housing in Richmond Virginia
Hello clients and agents! Here is what we are seeing happen with Housing in Richmond Virginia….The market has change and it is quickly becoming a sellers market with a limited number of homes and a lot of buyers. If you are looking to Sell a home in Richmond Virginia now it the time to do it! There is a limited number of inventory and lots of buyers. It is a busy time for Richmond Real Estate.
The good news if you are looking to buy a home:
- Mortgage rates are behaving and are actually declining a bit.
- The pick up in activity shows that the market is recovering and now is a GREAT time to buy a house.
- 0%, 3% , and 5% down mortgage options are out there and as popular as ever; you don’t need a lot of money to get a mortgage.
- Underwriting rules are loosening a bit for people with past short sales or low credit scores.
- We are helping a lot of buyers com the the closing table 1 Happy, 2 On Time, 3 In a great loan, and 4 at the numbers we told them with no surprises.
The bad news if you are looking to buy a home:
- When looking to buy a home get prepared to act quickly on the piece of Richmond Real Estate you like.
- Be prepared to pay at least listing price and sometimes higher than list for your next piece if Richmond Real Estate.
- Be prepared to complete with multiple offers on Richmond Real Estate in many cases.
Please Read our post on getting TBD formally underwriting approved prior to shopping for homes. This is HUGE and gives you a competitive advantage.
Our entire team is here to answer questions. Be sure to check us out! Here you can get mortgage info and apply and get preapproved for your next Richmond VA Home Loan.
Greg Cowart – Richmond VA Lender
The Most Painful Business Ever
A few weeks ago, Jamie Diamond, the CEO of Chase called the mortgage business “the most painful business ever”. Reading this quote was so refreshing.
I’ve been doing this interesting job of guiding my client through the Richmond mortgage and Richmond home buying process for over 12 years now. Never have I seen it as difficult as it is in 2014. By difficult I mean the amount of paperwork needed, the scrutiny in which the financial docs are reviewed, the uncertainty in underwriting with the ever changing guidelines, and the constant product changes and unexpected rules overlays. Throw in a shortage of inventory and always nervous clients and it is a recipe for trouble.
When a client chooses to work with me and my team, they don’t know that over 20 hands behind me will work/review the file performing hundreds of checks and double checks. Being the spokesperson for and the face of these operations people is challenging. So many things can come up. More than ever, experience and having the right company behind you is key for originators.
Why Movement Mortgage?
Our 1-2 week closing process and lightning quick underwriting and processing are a definite advantage for us and I feel I am as equipped with the armor of a good company as I could be to get through this tough time.
More and more companies have the same products and rates. Getting mortgages in Richmond Virginia is becoming more about the overall experience; service, accuracy and reliability; above all.
There is a bible verse that “iron sharpens iron” which helps me as I move through each day. It has never been tougher to originate loans. There is opportunity however. There has never been a better time to stand out and offer amazing advice, service and an overall Richmond mortgage experience for my clients. I am also grateful to have Tiffany and Jesse to work with. You are only as good as your team and we go above and beyond for our clients and agents every day.
Richmond Mortgage Lender – Greg Cowart / Movement Mortgage
QE and QM; Who cares?
While navigating the Richmond real estate market you will hear both of these terms on the radio, internet, and TV news. What do they mean and if you are looking to buy a home in Richmond VA this year, why should you care. Well, in brief…
QE means quantitative easing. Since the crash in 2008 the government has spent a lot of money in several different waves of spending to boost the economy. One of the ways they boosted the economy was to buy mortgage securities which drove down rates and helped housing. QE means that the government is letting off of the gas and cutting it’s spending program. This will cause mortgage rates to increase. Quantitative Easing is currently underway and spending on mortgage securities will gradually taper this year.
Why does this matter? Mortgage rates will slowly increase during 2014. With this information it is easy to see why now is the time to buy homes in Richmond Virginia versus waiting until later in the year.
QM or qualified mortgage is a Federal Law where the government is attempting to limit risky mortgages by putting new rules in place. QM will have a minimal impact on mortgage guidelines since most of the rules it imposed were already being carried out by the mortgage industry. However QM will limit some interest only or more unusual loans and will continue to tighten underwriting guidelines.
Why does this matter? Mortgages and client documents in 2014 will be scrutinized even closer than they were in the past. In general these are minor changes but will cause mortgage underwriting to be more restrictive.
In conclusion if you are in the market for housing in Richmond Virginia expect payments to be higher in 2014 due to appreciation and higher rates and expect for mortgages to continue to be more challenging in terms of paperwork and underwriting scrutiny.
If your 2014 includes taking the plunge into home ownership contact us today and see how we can help. The Richmond real estate experts at The 20/20 Team and the Richmond Mortgage Professionals at The Cowart Mortgage Team have a successful track record when it comes to Richmond real estate. Let this winning combination help put you in you next home!
Greg Cowart – Richmond VA Lender
What does 2014 hold for Richmond mortgage rates?
As we start this year we know that Richmond VA Home Buyers will maybe never see the lows of the 3% rates we saw in 2012 and 2013. With rates currently in the mid 4’s, what does 2014 have in store for mortgage rates and Richmond Real Estate?
We know rates will move up but how quickly will depend on two factors: employment and the Fed. Positive job news will cause rates to go up. Positive employment AND economic news will cause the Fed to limit QE (program of Federal spending) which means the government stops buying mortgages. So it really is all about jobs. As the economy strengthens and employment improves, rates will rise.
Last week, I listened to two economic advisors give 2014 mortgage rates forecasts. Both predicted rates steadily moving up this year crossing the 5% barrier in the summer and moving up from there to the 5.25 to 5.5 range.
Minor increases in Richmond mortgage rates change house payments less than most clients think. However, one thing is sure, if you are looking to buy a home in 2014, waiting will likely result in a higher interest rate as mortgage rates move up with a slowly warming economy, improving jobs, and a Fed cutting off its support of mortgage rates.
If your plans for 2014 include a new home act now while rates are still low. Contact The 20/20 Team – Keller Williams Richmond Virginia and The Cowart Mortgage Team today to get preapproved and see how we can help get you into a new home!
Greg Cowart – Richmond VA Lender
KISS in Richmond Real Estate for 2014
I love the idea of “keep it simple stupid”. Want to lose weight? Eat less. Want to be happier? Do more of what makes you happy.
So with that in mind, where is Richmond real estate going in 2014? Let’s look at where we are now and you tell me where this is going…
- Home values are up in 2013
- Home sales are up in 2013
- Foreclosures are down in 2013
- Loan modification programs are finally working in 2013 helping people in underwater homes
- The Stock Market is on a tear and just closed at an all time high yesterday
- Employment reports continue to show slow but steady improvement
- Rates remain in the 4’s which is near historic lows
If 2014 has you or your family thinking about:
- Moving into a bigger home
- Moving into a different home
- Buying investment property
Lets K.I.S.S. Now is a good time to get everything lined up for next year. The only thing constant is change and these conditions won’t stay this way forever.
A mortgage consult takes about 15-20 minute on the phone and is a free and easy service I provide. Within 24-48 hours I can have numbers and info to you by email.
Take the time NOW to explore your options for real estate in 2014.
Greg Cowart – Mortgage Consultant
It surprises me when I talk with clients and sometimes agents who still think you have to put down 20% to get a mortgage/buy a home. I hear this statement all of the time. To this day, I will turn on the TV and see a talking head (who should know better) discussing mortgages and the 20% down being an obstacle to home buying.
20% down could not be further from the truth! I don’t understand how the media and banks have not been able to get across that there are a LOT of minimal or no down payment options.
If I help 10 people buy a home, probably about 4 in 10 put down 20% as a down payment. Probably 2 in 10 or 3 in 10 (20-30%) go with ZERO down options or 3% down options. There are a LOT of programs out there to help if you don’t have money saved to make a large down payment on your next home. VA (loans for veterans), VHDA (State of Virginia Bo
nd Loan), and USDA (rural homes) all have 100% down options. FHA which is a VERY common loans only requires 3.5% down and is very credit lenient. Even the traditional “Conventional” loan only requires 5% down. It is true that there are more guidelines and tougher underwriting requirements with a smaller down payment. It is NOT true however that you have to have perfect or even good credit to get 100% financing loan.
When you put down less than 20% you do need to have mortgage insurance on the loan. This limits the risk for the mortgage holder in case of default. Mortgage insurance is surprisingly inexpensive and can be worked into the rate on the loan or paid up front rather than in the monthly payment.
Don’t let the misperception that you must have a down payment of 20% keep you from exploring moving or buying a home in 2014! As always, all consultations are free and easy so please call with questions, to get preapproved, or to see estimates.
Greg Cowart – Mortgage Consultant
Movement Mortgage – email@example.com
804.306.6463 – NMLS # 204399
The 20/20 team and Movement Mortgage are getting a lot of questions about how the government shut down is effecting the mortgage market.
In short, the shutdown creates uncertainty in the markets. That uncertainty leads to safe spending of money/buying of investments which means that rates will drop. Mortgages are bonds and when there is fear and uncertainty, traders will buy bonds which have a fixed returns. This is why mortgage rates go down with bad economic news and go up with good economic news. When stocks rally, rates go up as well so there is usually a loose correlation between the stock market and interest rates.
While lowering rates, the shutdown is also causing some turmoil within the mortgage process. The number of checks and double checks on an applicant done by underwriters and processors these days are beyond comprehension. Some of these checks and double checks involve talking with the IRS or other government agencies. When we in mortgage can’t verify information, the loan can not fund/close. Luckily Movement Mortgage processes and underwrites quickly and very early in the process. Our closings in general have not been effected. However at some point, if this shutdown drags on, it is possible that closings will be delayed mostly b/c of not being able to verify info required by the federal government.
In the meantime, money is flowing, loans are closing, people are buying houses, and it is business as usual in mortgage.
With rates pushing back down in the most recent month, it is no doubt a great opportunity to lock in a low rate if you are thinking of moving in the future.
Feel free to contact The 20/20 Team or call me if you have any specific questions.
Mortgage Consultant – Movement Mortgage
804.306.6463 or firstname.lastname@example.org