BIG CHANGES COMING FOR BUYERS IN 2014 from the CFP Bureau

Happy New Year! 

Recently, my inbox has been overloaded with emails stating BIG CHANGES are coming to the mortgage industry  for new potential buyers  in 2014.    In a nut shell, the new Regulations drafted by the Consumer Financial Protection Bureau will change the definition of a qualified mortgage for any loan applications received on and after Jan. 10, 2014 which is just around the corner, and many consumers may find themselves unable to meet the new changes and requirements to secure a loan without taking time to plan.  

What's Changes are on the way? New potential home owners must pass tests of sorts to meet the standards of a qualified mortgage: The APR must be within 150 basis points (1.5 percentage points) of the annual prime offer rate, the loan term cannot exceed 30 years, points and fees cannot exceed 3 percent of the loan balance and there can be no negative amortization or interests-only payments.  Under the new regulations, the mortgage qualifies for safe harbor, meaning the lender is not at risk of being sued by a borrower who is unable to repay the loan. Hopefully ensure we never repeat the massive fall we saw in the market.

While the new regulations are beyond consumer control, there are several things potential homeowners can do to prepare for buying homes or property in 2014, but the two most important in my opinion are below:

1. If you don’t know the answer. Ask Questions: If this all sounds a bit confusing, don't worry. You're not alone! Trust me we are all in this together.  The most important thing to remember don’t be embarrassed to ask your Realtor to help you contact some mortgage brokers to answer and explain the changes and how they relate to you in buying a new home in 2014 .

Keep in mind: It's important to shop around for the mortgage broker you feel you can trust.  One of the top concerns I hear is that consumers have a fear of shopping around due to the thought of the impact it will have on their credit scores.

 If you focus your search and keep it within a few weeks you have the greater potential to minimize the impact on their credit scores.

2. Get rid of Debt:  Dave Ramsey has always been a big cheerleader to tackle your debt and get debt free. His website has some amazing tools to help you become debt free.  If you have debt, you should try to reduce it, and this is true for all consumers, not just those looking to buy a house. Potential homeowners, however, should be extra motivated smash a good amount of debt:  Under new ability-to-repay requirements necessary to attain a qualified mortgage, a borrower's debt-to-income ratio must be 43 percent or less, including the potential mortgage payment.

 Mortgage Brokers will now have to consider the debt that comes up on credit report, but they also have to look at future possible debts you are expected to pay in the future like child support, student loans in deferment.   While this might seem overwhelming most Realtors and Mortgage Brokers have had time to prepare for the changes and with a meeting can get you well on your way to being ready to purchase this spring!

Connect with me on facebook at Tiffany Bethmann Realtor  or on my website at http://www.findhomesforsaletn.com/

Find Homes for Sale in TN

You make the Decision Allow Tiffany to Make the Difference! 

Click Here to See the New Website

Listing a Home in The Holiday Season

5 Reasons Why Listing  During the Holiday Season is A Great Idea! 

 If you were to ask someone when the felt the  best time to sell a house was? 9 times out of 10 You will typically get the common answer of the Springtime.  For some reason, people think that houses do not sell during the winter.  The truth of the matter is that assumption could not be further from the truth.  Check out the top 5 Reasons why if you are thinking about selling your home NOW IS THE PERFECT TIME!  

1.  Selling now allows you to sell high and buy low.  Because during the Spring mores houses on the market means less money in your pocket. 

2. January is traditionally known as the "RELOCATION" month to Real Estate Agents due to all the new job transfers looking for homes who can not wait until Spring. You will need to be on them market during the Christmas Holidays to get your home noticed. 

3. Some people must buy before the end of year for the tax deduction benefit. 

4. Buyers are typically make more emotional purchase decisions during the holidays. Which typically gives you a greater chance to receive your asking price. 

5. People who look for homes during the holiday season are more serious buyers. 

If you are interested in selling your home please give me a call today! 615-302-5141

FUN LOVING LABELS for AN ORGANIZED MOVE

One of my least favorite things about moving and packing, is having to write on all the boxes mostly  because I get so tired of writing the same thing over and over again, but also because I  three daughters who want to help and I end up spelling over and over again Bedroom, Living room, Master bed Room. 

If you’ve ever moved  you know what I mean! So to help my clients I found some great ideas  and wanted to share to help your move run smoothly. By  decided to print out bright colored labels you can identify each of the boxes, which would make it easy for your friends and family  to know where the boxes go, and it would save you time and energy from having to write on all the boxes! 

I thought  these shipping labels are a great fun touch!  The labels are can be purchased from Office Depot,  or Staples.  They not only make the boring brown boxes have some type of fun touch, but you are setting yourself up for an easy unpack and organized move.

Renting Vs Buying Is not Just A Dream Anymore

Just A couple Reasons Why Purchasing A Home is still a Good Investment! 

 

Did you know that according to a 2012 Trulia Trends study, buying a home is 44 % cheaper than renting in the 100 largest metro areas in the United States. Mortgage rates are still decreasing and we are seeing that average rate for a 30-year fixed rate loan coming in at a 4.50 % at the time I posted this blog. 

Here are just Two Reasons Why Buying out weighs Renting Hands downs. 

 1. You can Avoid the cost of rising rent. 

Many have heard the familiar term it's a buyers market. But what does that mean? A buyer's market means it might be time to say goodbye to renting for good. If you're tired of rent increases at your current location, consider the benefits of buying a home instead. For the first time in decades rates are at incredible low rates.  You may be able to secure a great rate with your credit history and end up paying the equivalent or less in monthly payments as you build equity in a home. Renting can be a more affordable option for the short term, but renters still have to face rising rental costs year after year. 

2. Invest in your future. Not Your Land Lord's. 

Buying a home gives you a chance to start building equity, and you are investing in your future instead of the Land Lords.  While statics show that most Americans on Average move every 9 years.  Even if you end up selling your home in five or 10 years, you could profit from the sale and invest that money elsewhere. If you've been dealing with the frustration  of  rising rents or the hassles of packing and unpacking and all the fee's associated with  costly moves.  Finding your first home might just be the answer you have been looking for.  Purchasing your home will create the stability in your house budget you have been looking for especially if  you get a fixed-rate loan at a great rate. 

There will be no more worries about your rent budget being raised, and you will be paying into your investment instead of throwing your money down the drain. 

Creative Ways to Tell Friends and Family You are Moving

Having moved from one state to a  different state several time I understand that it is both exciting and challenging sharing with your family and friends the big move.  This is just one creative way  we announced to our friends and family we were moving!