Neighborhoods Matter to Prospective Buyers

Applying for a mortgage and buying a home is a long-term commitment, so it’s crucial that you know what sort of neighborhood you want to live in before signing on the line.

For some, the traditional 3-bedroom with a yard and picket fence is their ultimate home. For others, an urban atmosphere with local breweries and summer music festivals might be just the ticket.

What kind of Neighborhood do you see yourself living in?

Not surprisingly, “quiet and quaint” remains the most desirable atmosphere, but only slightly as one recent survey reveals. About one-third of Americans desire a neighborhood with a community feel, curb appeal, and traditional tree-lined streets the perfect suburban family neighborhood.

Twenty-eight percent of Americans said they want a neighborhood that has reasonably priced bars, restaurants, and coffee shops within walking distance. Considering that millennials make up more than a third of today’s homebuyers, the popularity of the urban vibe isn’t surprising.

Americans who prioritize a healthy lifestyle and the outdoors look for a neighborhood that has hiking trails, farmer’s markets, and organic farming. About 21 percent of Americans described themselves as “family-centric” and desired a neighborhood with plenty of playgrounds, libraries, and lots of activities for kids.

What about upscale, urban vibes? As it turns out, only about 9 percent of those surveyed wanted a neighborhood with fancy restaurants, bars, and retail stores.

A neighborhood that fits your budget is important. But living in an area with a neighborhood you love is just as essential, and it helps to make your house your home. What kind of neighborhood do you envision yourself living in when you are a homeowner or when you buy your next home?

Acceleration Clause: A provision in a mortgage that allows the lender to demand payment of the entire principal balance if a monthly payment is missed or some other default occurs.

Credit Tip from a Mortgage Broker

This is a credit tip and something you should always be working on.

More People are Buying Multi-generational Homes

As loved ones start to get older, we start to wonder: how long will they be able to live alone?  Will they need someone there to help them with daily life? There’s a reason to ask those questions now more than ever, as the average life expectancy in the U.S. is 78 years old!  As a result, 41% of Americans in the market are searching for a home that can accommodate a multigenerational family.

What the Hard Facts Are

According to a Pew Research Center analysis of the latest U.S. Census Bureau data, approximately 51 million Americans, or 16.7 percent of the population, live in a house with at least two adult generations, or a grandparent and at least one other generation, under one roof. Strong indications show that multigenerational living is on the rise. The U.S. 65-plus population is expected to more than double to 92 million by 2060.

Could This Work for you?

Could this be an idyllic situation of built-in child care, elder care and three square meals a day?

Many people would not want their mother-in-law or their father-in-law living with them regardless of whatever benefits it may bring with them, but with the cost of homes in places like California, Hawaii, New York, and Connecticut. It can take two and even three generations easily to be able to come up with the income necessary to qualify for the type of income you need to get a loan for housing in these areas.

The Pros of Multi-Generational Housing

Many larger homes come with a mother-in-law suite in the back, separate from the main house, this gives both parties privacy and still helps cut costs. What generation X is now starting to experience is that their parents, who are mostly baby boomers are starting to get ill, and some are even passing away so it is nice to have them closer, especially while a parent is ill.

With housing getting more and more expensive, and millennials living with their parents longer, it may be that now we will see people moving back in with their children because the cost of nursing homes is so high and out of reach for retirees.

Praise for our Fantastic Team!

Another one day approval thanks to our fantastic team and the team at UWM!

Mortgage Helpful Hint

It may not always go this way, there are exceptions, but this is basically how it will go for MOST people.

Assumability: An assumable mortgage can be transferred from the seller to the new buyer. Generally requires a credit review of the new borrower and lenders may charge a fee for the assumption. If a mortgage contains a due-on-sale clause, it may not be assumed by a new buyer.

The Mortgage Industry’s Digital Future

As millennials leave their parents homes and buy their own homes they are demanding that mortgages be as easy to access online as concert tickets. Because millennials are so tech-savvy, and they have come from a generation that has had the internet at their fingertips from the time they were toddlers, so they don’t know any other way, they have always been able to research anything and everything they have ever needed or wanted to research.

The Mortgage Process of the Past has Been a Daunting Experience

Until recently, the mortgage process has seen little change from the process 20 or 30 years ago – slow, inefficient, complicated, a mountain of paperwork and requiring manual intervention at every step from application and processing, to underwriting and closing.

Plus, it’s been a daunting experience — especially for first-time buyers. The amount of personal information required feels invasive and repetitive.  And with so many moving parts and parties involved, not to mention a ticking clock, the mortgage process is not something consumers have looked forward to, add to that an industry culture that is still emerging from a historic downturn so lengthy that many professionals have never experienced a normal mortgage market.

What has Changed?

The biggest change is instant gratification. The younger generation wants things now, and with the help of the internet, they have been able to get things pretty quickly to when they are searching them out, and if they can’t find them one place, all they have to do is keep looking because someone, somewhere has what they are looking for. That is the difference, companies get a wider reach while their customers save an abundance of time. The products haven’t changed, and neither have the companies. What has changed is the transactional process which was enabled by the technological infrastructure of the business.

Digital Technology’s Impact

Borrows have more Lending Options. Because the internet is at your fingertips now, it’s just a matter of taking the time, and knowing where to look, and you can now compare rates with lenders across the country.

Loans are Processed More Efficiently. A 2018 study by The Federal Reserve bank of New York found that technology based lenders process mortgage applications about 20% faster than other lenders, while decreasing the default rate by about 25%.

Lenders are Saving Money. As with most jobs, the biggest cost is employee’s salaries. Nearly two-thirds of loan production expense is dedicated to human processing. Automated processes can enhance speed, reduce cost, and improve quality at a time when banks are reporting a net loss on each loan origination.

Lenders are Rethinking the User Experience. With some of the biggest brands in the world marketing the idea of transparency, and engagement. When you think about you can get multiple status updates on a $20 pizza, why can’t you get the same on your mortgage?

Technology is Changing with the Mortgage Industry

Not too long ago if you wanted a mortgage you would go into a local bank and speak with a loan officer and fill out many forms and bring in a large briefcase full of documents, this is not the case anymore. The industry is going paperless, many things can be done over the phone, people are obtaining mortgages in under 30 days rather than over 45.

Congratulations to our Team!

The team at UWB got this loan underwritten over the weekend! Great work guys!

Cash Out: Cash in hand given to you from the proceeds if a loan that appears on a HUD-1 closing statement.