Housing Market 2017


These 3 trends will shape the housing market in 2017

1. Rates: In December, the Federal Reserve raised interest rates for only the second time since 2006, and a majority of the members of the Fed’s rate-setting board predict there will be three more increases coming in 2017.

2. More Credit: Though mortgage rates may fall, mortgage credit will likely be more widely available due to slightly looser lending standards. The Federal Housing Administration will likely lower fees it charges first-time homebuyers. In addition, starting in 2017, government-owned mortgage companies will begin backing large mortgages for the first time in over a decade, making it easier for buyers in expensive markets to finance their purchases.

3. More New Homes: The overall trend in home construction is clearly positive, with the average annual rate of new groundbreakings reaching a 1.163 million rate so far in 2016, up about 5% from 1.108 million in 2015. Expect this to continue in 2017, as home buyers are encouraged by higher wages, looser credit, and increased demand from buyers.

According to 2016 data from the Northwest Washington Multiple Listing Service the average listing price for a 3 bedroom home in Lynden was $317,3999. The average sold price for a 3 bedroom home in Lynden was $310,954 and the the average square footage: 1,835.

So will you be jumping into the 2017 marketing market? The mortgage rates are still low and if you have strong credit we encourage you to take the plunge. Really, any day is a good day to invest in real estate. Call our office and talk to a licensed and experienced, RealtorĀ®, whether it be purchasing real estate or selling real estate. We have an onsite mortgage consultant, Casey Porter, Caliber Home Loans who would gladly answer your mortgage inquiries.


7 Warning Signs of a Bad Loan

Some valuable information when shopping for a loan…
When shopping for a loan, look for some of these bad warning signs – and be prepared to run – not walk – away from the table, from any lender who does the following dubious actions.

1. It’s Okay to Fudge Some Numbers
If your lender is trying to get you to lie about your income in order to bet a bigger loan, stop dealing with that lender immediately.
There is no such thing as a little lie when borrowing money: it’s mortgage fraud, and it could get you slapped with steep penalities or even jailed.
2. Pressures You Into A Bigger Loan
Beware of any lender who pressures you into borrowing more money than you need. You will likely pay more in interest on the extra cash that you’d earn in interest by stashing it away into a savings account.
3. Doesn’t Consider Your Monthly Income
Figure out whether you have enough coming in to cover all your monthly bills, a new mortgage and a savings account for emergencies. Know that number and stick to it – if a lender starts pressuring you into a bad loan with monthly payments you know you can’t afford, get out. If your outflow is more than your inflow, you will find yourself in trouble rather quickly.
4. Doesn’t Disclose Documents
Beware of any lender who fails to provide you with the required loan disclosures or tells you don’t need to read them.
By law, lenders have to tell you the annual percentage rate (APR) plus provide a good faith estate (GFE) – an itemized list of estimated closing costs within 3 days after you apply. The APR includes not just the interest rate, but also points, broker fees and certain other credit charges. The GFE covers these charges as well as everything else you’ll be asked to pay at settlement.
You should use these documents to loan shop.
5. Promises One Thing, Delivers Another
If you are presented one set of terms when you apply for the loan and a different set at closing, you should demand an explanation. If could be a bait-and-switch scam, where the lender is trying to pressure you into signing these new documents with worse rates or unfavorable terms. Be prepared to walk away and take your business elsewhere.
6. Says it’s okay to Leave or Sign Blank Forms
If you leave blanks, a scamming lender could fill in extra terms and conditions that could alter your loan – and not for the better.
Worst-case scenarios could have lenders who write in clauses surrendering the title of your home.
Don’t let anyone fill in the blanks later. If there is a blank, cross it out and initial your mark.
7. Doesn’t Provide Copies
Lenders may not give you the actual filled-in papers in advance, but they should give you blank documents so you can take them home to review or show them to a trusted advisor. If the lender won’t give you copies of what you’ve signed at closing, cancel the deal right then and there. These papers contain important information about your rights and obligations, and you need them.
source by: Lew Sichelman