5 Signs You’re Not Ready for a Mortgage

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  1. Bruised & Beaten Credit

You don’t need top-tier credit to land a home loan. You don’t even necessarily need what’s often considered “good” credit. But consumers with scores below a 620 can have a tougher time securing financing.

  1. Insufficient Savings

You don’t need a mountain of money to buy a home. You don’t even necessarily need a down payment – just ask VA and USDA buyers and the thousands of folks who tap into down payment assistance programs in their community. But you’re going to need at least some cash in the bank, in part to possibly cover expenses like a down payment, earnest money deposit, appraisal, inspection, closing costs and more.

  1. Income Instability

Mortgage lenders want to feel like you’re a safe bet. A rocky employment situation can raise red flags. Ideally, you’ve been working the same job for at least the last two years. But that’s certainly not a reality for millions of American workers.

  1. You’re Still ‘Seasoning’

There is homebuying life after a bankruptcy or foreclosure, but you’ll typically need to wait at least a couple years following one of these events. Waiting periods can vary depending on the type of bankruptcy or foreclosure, the loan type, the lender and more.

  1. You’re Unprepared for New Expenses

Owning a home can be freeing, but it also comes with new expenses you don’t typically face while renting or living in your parents’ basement. Property taxes, homeowners insurance, homeowners’ association dues, maintenance costs and more can all eat into your monthly budget. Source: blog.credit.com by Chris Birk

Your Loan in the Valley

6 Things Only a Real Estate Pro Knows

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Those who consistently make money in real estate know the market. They know the location and the history. They know what new developments are planned. They know the transportation and the schools. They know everything about the area where they invest. They have to know it all.

Staying ahead of the competition in real estate investment means doing your homework. If you are new to the business, it can be daunting, but in this article we’ll teach you six tricks that the old pros use to get ahead of the trends instead of chasing them.

  1. Study Local Pricing

The first things to study are the current price trends in the area. For example, a potential investor should look to see if the price of homes is accelerating faster in one area than in others. Next, check to see if the average home price is more than in other neighboring towns. This will provide an idea of where the biggest demand is. Another reason to study these trends is that, over time, you will start to develop a sense for which prices are “fair” for certain properties and which are overpriced. For individuals looking to buy properties at the lowest cost possible, this knowledge can be invaluable.

Realtors and real estate agents are a terrific source for this information given their access to the Multiple Listing Service (or MLS). The local newspaper, the internet, and the town hall may have a record of recent sale prices as well.

  1. Get Pre-approved for a Mortgage

There is a host of benefits you can enjoy by getting pre-approved for a mortgage. Chief among them are financial benefits. For example, most lenders will lock in an interest rate for you once you are pre-approved for a mortgage. This let’s you enjoy the benefits of a lower interest rate if interest rates rise while you’re house hunting. Further, if you are able to be pre-approved for a mortgage prior to finding your dream home then you become a preferred buyer in the eyes of the seller because you’ve demonstrated you have serious financial backing.

  1. Look for a Catalyst

One sign that an area is up-and-coming and that it will be desirable in the future is the development of new infrastructure. When you see new roads and schools being built, it’s a sign that the community is set for a growth spurt. Investing in a growing community can be very profitable. In addition, certain types of development, like new shopping centers, may be extremely attractive to homebuyers, and may also help keep the tax base low.

Spotting new developments can be as easy as looking out your car window as you drive by. Telltale signs of land clearing, surveying or the beginnings of construction in and around major roadways are pretty big tip-offs. Also, look for widening of traffic lanes, the installation of turnaround lanes and the erection of new traffic lights. All suggest the possibility of increased traffic flow.

Next, visit town hall at the municipality or the county level, and speak with the road and the building departments. They should be aware of any major projects slated to begin in the area, and they may even be able to provide you with a connection at the state level so you can find out if any state-owned roads or properties are slated for development as well. Real estate agents also have a general idea of what new projects are about to be undertaken. (For added insight, see Profit With Real Estate Land Speculation.)

  1. Explore Low-Tax Alternatives

If there are two towns side by side – one with high property taxes (or with progressively rising property taxes) and the other with low property taxes – the one with the lower taxes will usually be more in demand.

Real estate agents can help you determine which areas have the best and worst tax structures. In addition, a simple call to the local tax assessor can reveal how much the town charges in taxes per $100 of house. The assessor can also let you know when the last time the area was evaluated by the township. Also watch to see if a reassessment is set to take place in the near future, as it may mean that property taxes are about to go up. Beware of towns and communities that are becoming overcrowded. Signs include schools filled to capacity and inferior roadways. This could mean the town will have to do some major construction to accommodate the influx of people. And how do they pay for that construction? Tax dollars. (For more on property tax, see Five Tricks For Lowering Your Property Tax and Tax Tips For The Individual Investor.)

  1. Check the School Rankings

Nearly every state ranks its schools by how well students in each district fare on tests in math and English. Sharp-eyed investors should look for schools that are moving up or are atop the list. These areas are often desirable to parents. Access to quality education is a big selling point to new home buyers.

There are several ways to find this information. Check our your state’s board of education website. Also, PSK12.com has public school rankings for most states in its free section. Visiting the schools yourself is also a good idea. Schools that rank the highest are usually quite eager to provide information.

  1. Watch the Outskirts

If the properties in a major city or town have become overpriced, the areas on the outer fringes most likely will soon be in demand. Areas in close to major bus and rail transportation are even more desirable Nearly any area that is about to install a major train stop or a new major bus route will see its proverbial stock go up in value.

To find out what’s planned, you can check with the local railroad or bus company to see if they will be expanding service in the area. The local town hall or planning department will also have this information.

The Bottom Line

It pays to do your homework and to tap local resources to determine which areas are hot now and, more importantly, which ones will be hot in the future. Much of the information is out there and free for the taking. You just have to be willing to do the leg work. Source: Investopedia.com By Glenn Curtis

Your Loan in the Valley

Great proven seller lead gen Real Estate marketing ideas

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Try these 4 proven seller lead gen real estate marketing ideas:

  1. Leverage Your Buyers

To generate solid referrals, strike while the iron is hot! After you hand over the keys, show your buyers you appreciate them and provide great follow-up to help solicit referrals.

  • Offer your buyers a small congratulatory closing gift (and be creative!)
  • Include a small stack of your business cards and ask your buyers to share them with anyone who may be in need of an agent
  • Since closing is a hectic time, follow up with your buyers in a week to thank them again – and remind them that you’d love any referrals

Referrals from past clients may not guarantee you seller leads, but this is a great way to open that channel with minimal effort.

  1. Go After For Sale By Owner (FSBO) Listings

90% of sellers who attempt to sell their own property aren’t able to complete the transaction. This is typically due to some combination of inexperience, limited resources, poor marketing and overpricing.

Trying to sell a home is extremely stressful, especially when you don’t have a background in real estate – presenting a great opportunity for you to come in and save the day! Look up FSBO listings on Craigslist and reach out to offer your services – perhaps a free consultation – to take full advantage of this technique.

  1. Contact Sellers with Expired Listings

Why do listings expire? Much like we discussed with FSBO properties, it’s typically because the expired listing is overpriced or is not being marketed well. Once again, you have the opportunity to step in and save the day.

In contrast to the FSBO method, you’ll need to rely on your MLS to pull a list of expired listings. Sellers with expired listings may already be working with another agent – but considering that the listing is still on the market and unsold, they may be motivated to explore all options.

Reach out to the seller to let them know that you can help them with their stalled listing. Come up with a game plan on how you will generate exposure for the listing. If the plan is good and pricing is in line with expectations, you may well find yourself representing the seller moving forward!

  1. Search for Leads on Facebook

Facebook has done a lot to improve their search functionality, specifically in building out the detail with which you can search for people, places and things from your profile page. Did you know that you’re able to look up keywords and locations in the search box at the top of your Facebook profile? Give it a try! If you type in your city along with a few keywords associated with selling a home – things like packing, house hunting or moving, you may very well find individuals in your extended network who could qualify as seller leads.

Source: zurple.com

Your Loan in the Valley

Finalmente tienes tu propio Real Estate Website…

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¿Ahora qué?

Nada más tienes que definir como te vas a diferenciar de más de 1 billón de páginas web dedicadas a bienes raíces. ¿Suena fácil verdad?

No te preocupes, vamos a darte algunos consejos que con algo de persistencia, te llevarán al éxito.

  1. Investiga lo básico del SEO (Search Engine Optimization)

Es muy importante que antes de poner tus cartas a jugar entiendas lo básico de cómo los sistemas de búsqueda en internet funcionan.

  1. Escribe contenido valioso que pueda ser realmente de utilidad para tu cliente.
  1. Crea perfiles en tu website de los vecindarios en los que estas enfocado. Después de todo, ¿quien sabe de estas áreas más que tú?
  1. Escribe tu biografía haciéndote ver como el experto que eres.
  1. Crea videos informativos, profesionales y divertidos que puedas conectar con tu sistema de marketing.
  1. A menos que hayas vivido debajo de una roca los 10 años pasados, no tenemos que mencionarte lo importante que son las redes sociales hoy en día.

Ahora sí, con esta información y tu creatividad estas listo para empezar a darle un funcionamiento adecuado a tu website. ¡Manos a la obra!

Your Loan in the Valley

Top reasons your Mortgage Loan Application was declined

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  1. Poor Credit History

Your credit history is a great way for a lender to tell whether you’re a risky investment or not.

  1. Insufficient Income

A lender can tell if you’re able to afford a mortgage payment by looking at your income to debt ratio.

  1. Down Payment is Too Small

A lender looks at the down payment as an investment in their future home, so a low down payment does little to put their mind at ease.

  1. Problems With the Property

A denial doesn’t always have to do with the homebuyer. Sometimes a property’s value isn’t enough to back the amount of the mortgage loan being applied for, and therefore is denied.

  1. Inadequate Employment History

A consistent employment history can be a very valuable thing when applying for a home mortgage loan. Source: bluewatermtg.com

Why Do Interest Rates Change?

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We’re all familiar with interest rates. Most of us have a credit card, student loan, or mortgage, and some of us have all three. And although consumers often are able to lock-in fixed interest rates on certain financial products like certificates of deposit (CDs), interest rates nevertheless are constantly in flux. For example, the federal funds rate—the rate at which banks lend to other banks and the basis for most consumer interest rates in the United States—has moved about quite a bit, from 0.25% to 19% since 1954. What causes rates to vary so much? There are many reasons, but two key factors are the supply of money and inflation.

The Money Supply

The US central bank—better known as “the Fed”—has two primary goals: full employment and stable prices. The Fed seeks to achieve these goals through monetary policy that can increase or decrease the money supply. The Fed primarily controls the supply of money by buying or selling government bonds through a process known as open market operations. Banks hold reserves at the Fed and through open market operations the Fed enters into transactions with banks to buy or sell government bonds. When the Fed buys securities from a bank, the Fed increases the amount of money in the bank’s reserve account at the Fed. With a greater supply of money on hand, the bank has an incentive to reduce the rate of interest it charges borrowers.

The interplay between borrowers’ demand for money and lenders’ supply of money also has an impact on interest rates. At the micro level, if a bank experiences greater demand for its loans relative to its supply of deposits, then its interest rates tend to rise. In order to lend additional money, the bank must incur additional costs—either from borrowing money from another bank, raising capital, or increasing the rate it must pay depositors to attract additional deposits. Ultimately, the bank passes these costs on to borrowers in the form of higher interest rates.

Inflation

Interest rates also can vary because of inflation. When determining the interest rate to charge borrowers, lenders factor in their estimates of what future price levels will be in order to ensure lenders will profit from the loan. High inflation, or anticipated inflation, will result in higher interest rates. For example, in the 1970s, the United States experienced greater levels of inflation after the Federal Reserve “loosened” the money supply. The Fed’s intention was to reduce unemployment, but it not only failed to keep unemployment in check, but also resulted in inflation that averaged almost 10 percent from 1974 to 1981. In response, the Federal Reserve “tightened” the money supply, taking money out of circulation by selling government bonds. As a result, the federal funds rate skyrocketed from five percent in 1976 to over 13 percent in 1980, in large part because there was significantly less money to loan out than was being demanded by consumers and businesses.

From the early 1980s through today, interest rates have fluctuated significantly. After the hyperinflation of the 1970s, interest rates remained high during the early 1980s, peaking in 1981 at over 16 percent. During the mid 1980s and early 1990s, the federal funds rate declined, ranging from 5 to 8 percent. Spurred by the economic boom of the 1990s, interest rates hovered between 3 and 6 percent, hitting the top end of the range as the dot-com and housing bubbles burst during the early 21st century. At present, the federal funds rate is below 0.25%, near an all-time low.

The Federal Reserve has kept the fed funds rate low in an attempt to stimulate borrowing, investment, and the economy as a whole. Whether or not low rates will bring about a speedier recovery is uncertain, but one thing is for sure: when interest rates start to rise, supply and demand and inflation considerations will almost certainly be the driving forces behind it.

Source: simple.com by by Ted Iobst

Quién es quién YLV Loans

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El proceso de obtener una hipoteca puede parecer muy complejo debido a la cantidad de personas que participan. Aunque en ocasiones pueda parecer abrumador, es importante reconocer que cada persona con la que trabajes te brinde un servicio específico, que te ayudará a convertirte en propietario de una vivienda.

A continuación un resumen de nuestros miembros claves:

Agente de Préstamos.

Los agentes de préstamos son especialistas en hipotecas; usarán tu información de crédito, finanzas y empleo para ver si calificas para una hipoteca, y luego te presentarán opciones de financiamiento hipotecario que se ajusten a tu capacidad financiera.

Agente de bienes raíces.

Los agentes de bienes raíces te pueden ayudar a encontrar el tipo de vivienda que buscas, examinar viviendas comparables y comparar diversos vecindarios.

Procesador de préstamos.

La tarea del procesador de préstamos es preparar la información y la solicitud de tu préstamo hipotecario para presentarla al evaluador de solicitud de préstamo hipotecario. El procesador de préstamos te solicitará muchos documentos, incluso documentos sobre tu ingreso, tu empleo, tus facturas mensuales y el dinero que tengas en el banco.

Evaluador de solicitud de préstamo hipotecario.

El evaluador de solicitud de préstamo hipotecario es el profesional autorizado para evaluar si eres elegible para el préstamo hipotecario que solicitas. El evaluador aprobará o rechazará tu solicitud de préstamo hipotecario basado en tu historial de crédito, historial de empleo, activos, deudas y otros factores. Source: Freddie Mac

Your Loan in the Valley

5 razones por la que tus clientes no te eligen como su Agente de Bienes Raíces

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Aunque hay muchas razones por las que los negocios fracasan, aquí descubrirás las 5 razones principales por las que vendedores/compradores no están usando tus servicios.

Si tu negocio está sufriendo porque apenas consigues un cliente, este artículo te será de gran utilidad.

  1. Sin necesidad, no hay ventas

El mayor error que la mayoría de Agentes cometen es vender su servicio a clientes que no lo necesitan. La lección aquí es simple: cualquier servicio/ producto que no resuelva un problema urgente o necesidad, será difícil de vender a cualquier cliente.

  1. Sin dinero, no hay ventas

Por desgracia, muchos negocios se tienen que enfrentar a este problema. Todo el mundo les dice que sus productos/servicios son maravillosos pero nadie puede sacar sus billeteras para pagar por ellos.

Aunque haya una seria necesidad por ese producto o servicio, para muchos Agentes es difícil vender sus servicio a suficientes clientes.

  1. Sin prisas, no hay ventas

Ya que la gente suele retrasar sus compras, debes animarles a pasar a la acción y comprar ahora. Creando un sentido de la urgencia en tu negocio, los clientes tendrán una razón por la que tomar una decisión inmediatamente. Cuando usas la prisa como una estrategia de ventas, también creas la impresión de escasez de propiedades. A nadie le gusta perderse una buena oferta o la oportunidad de disfrutar de un producto o servicio excelente.

  1. Sin deseo, no hay ventas

Mucha gente necesita ser motivada antes de comprar o vender.

La mejor manera de crear deseo por tu servicio es vender los beneficios y los resultados de éste.

  1. Sin confianza, no hay ventas

Estamos en una era donde las estafas, por desgracia, son comunes, y hay un incremento de gente que sólo usa servicios de agentes conocidos o de una compañía en la que confían.

La confianza y la credibilidad son claves en el mundo de los negocios de hoy.

Source: gananci.com

Your Loan in the Valley

Want to earn more money in 2017?

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Here are 16 things that you can do to increase your closings in 2017:

  1. Increase your activity on social media sites.
  2. Make a marketing or social media calendar
  3. Adhere to a regular prospecting schedule.
  4. Join a networking or business professionals group.
  5. Create a blog.
  6. Employ pay-per-click advertising.
  7. Create landing pages to attract prospective home sellers.
  8. Hold an open house.
  9. Boost an upcoming event on Facebook.
  10. Maintain or update your CRM.
  11. Send out regular email drip campaigns
  12. Attend local marketing or broker caravan sessions.
  13. Read a book or listen to an audio book.
  14. Attend meetings or courses to stay current on local and state contracts and real estate policies.
  15. Find a mastermind partner.
  16. Outsource annoying and time-consuming tasks. (For example, hire a transaction coordinator, a virtual assistant, or a short sale processor.)

Source: melissazavala.com

Your Loan in the Valley

¿Qué regalarle a tu cliente?

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Después de un 2016 lleno de éxitos, es hora de agradecer a tus clientes por haber puesto su confianza en tu servicio.

No olvides enviar algún detalle a tu base de datos y en especial a tus clientes. Esta es una necesidad por llenar entre el agente de bienes raíces y el comprador donde puedes mostrar tu aprecio y hasta ganar nuevos o futuros negocios.

Esta es una lista de los regalos que podrías enviar.

– Flores.

– Vino.

– Una cena.

– Cestas de regalo.

– Placas de agradecimiento.

– Tickets para un evento.

– Gift cards.

– Un pavo.

– Regalos para los niños (si los tienen).

– Una alfombra para la entrada.

* Cualquiera sea el regalo que seleccionaste, no olvides agregar una tarjeta o postcard tuya con un mensaje escrito a mano.

Your Loan in the Valley