Carrie Lukins Real Estate: February 2015

Saturday, February 28, 2015

What Will Happen To Colorado Springs CO 80920 Real Estate Mortgage Rates in 2015?

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to look at where rates are headed when deciding to buy now or wait until next year. Below is a chart created using Freddie Mac’s February 2015 U.S. Economic & Housing Marketing Outlook. As you can see interest rates are projected to increase steadily over the course of 2015.

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How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly. Research released by Zillow touched on this point:

“As rates rise, new home buyers will confront higher financing costs and monthly mortgage payments. For many, this will mean tightening their budgets and sacrificing some luxuries they may take for granted today.”

The experts predict that home prices will appreciate by 4.4% over the course of 2015. If both predictions become reality, families would wind up paying considerably more for their home.

Bottom Line

Even a small increase in interest rate can impact your family’s wealth. Meet with a local real estate professional to evaluate your ability to purchase your dream home.

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Tuesday, February 17, 2015

The Signs You Are Ready To Buy Your First Colorado Springs, CO Homes 80920

Have you been feeling the urge to own your own house and build some solid memories there? Are you tired of paying increasing rental rates and watching your money go into your landlord's pocket every month? Maybe you have some very specific design ideas, but you can't apply them to your current living situation. Are you living under someone else's roof and ready to own your own place? There are many different circumstances that motivate people to purchase their first house. Knowing the right time in your life to buy a home is an important part of the process.

Here are some common signs that you may be ready to buy your first home:

1.) You're Career is Moving Forward.

Money is usually the largest motivating factor when purchasing your first home. If you are fresh out of college and just starting your career, purchasing a home may not be the best idea when your financial future is so uncertain. Moreover, if you have started your career and are confident that you are going to continue growing in the career path you have chosen, then purchasing a home makes sense for many reasons. The pride that comes with owning a home can boost your confidence as a young professional and help drive you to succeed. This was my experience many years ago.

Owning real estate is a sign of maturity. Just look around your work environment. Can you tell a difference between those who own and those who lease property? Would your boss treat you different if he/she knew that you owned real estate and were invested in your community? Owning a home can help you feel more established and be a serious boost to your career.

2.) Your City is Truly Your Home

Buy Real Estate in the City That You Love

I love Colorado Springs. It's my home. No place has ever felt as much like home to me as Colorado Springs. This is my hometown and I have no desire to live anywhere else. If you are uncertain whether you will be living in the same city you are in right now over the next year or two, purchasing a property may be a bad idea. On the other hand, if you love your city and know that you will be there for a long time, purchasing a home is a great idea.

As a homeowner, you will most likely feel more connected to the overall well-being of the area in which you live. When a new park is put into your neighborhood, it means much more when you actually owned property within that area. It is common for tenants to move around every year, or so. Homeowners typically move every five years on average. For this reason homeowners are more involved in the local political issues since they have more at stake by owning property in the community. If you enjoy the city in which you live, owning a home is a great way to commit to your local area. Homeowners are the heart of the city!

3.) Love is in the Air

I work with many different first-time homebuyers every month. One of the most common reasons for purchasing a home that I see is for a new couple to solidify a relationship by purchasing a home to build a life together. Homeownership feels much more stable and permenant than renting property. For this reason, couple feel a strong urge to buy a home together as a way of commiting to each other. Deciding to purchase a home with the new love of your life is a big commitment. A home is one of the most solid foundations to build lasting memories as a new couple. For this reason, purchasing a home is usually the first step that couples make once they are serious about moving forward in their relationship.

If you are engaged to be married, or have been with your current partner for a long while, it may be time to think about purchasing your first house together. When I was younger I thought of real estate as just a monetary transaction. Now, I think of a home as a place to invest in memories and close life expereinces with my family. The most important people in my life are the ones living under my roof. My home is my sanctuary from the world and the only place I can truly relax. The first thing that comes to mind are holiday get-togethers, my kids birthday parties, and many other special memories that happened while we lived in the home. This is what makes owning a home such a privilege as a young couple. Nothing compares to building wonderful memories in your own home.

4.) You've Been Renting Long Enough

It's rare that I meet a first-time buyer in their 40's (or older), but it does happen. For some people, life just gets too busy to think about purchasing a home and so they get stuck in the routine of renting. This becomes an obvious problem when you look back over the last 5 years (or more) and calculate the amount of rent that you have spent during that time. Take those numbers and put them into a home mortgage calculator and you will soon realize that you could be sitting on tens of thousands of dollars of equity if you would have bought a home years ago, rather than putting it off.

If you have been renting for more than two years and you are fairly confident that you will be within the same city you're in right now in the future, you're probably ready to buy your first home. The longer you wait, the more money you are losing every month with your rental payments. It's great for landlords, but bad for everyone else!

5.) You've Got The Home Improvement Bug

I love to work on home improvement projects. The hardest part about renting for me would be not being able to alter a property or remodel in any way while I'm living there. One of the greatest benefits of owning a home is that you can do anything you want to it (within obvious parameters) to make it your own place. Some landlords will let you paint and redecorate a property before you move in, but all of your hard work and expenses are for their benefit, since they own the property.

I like to take at least one day a month just to work around my house. Whether I am landscaping, painting, or doing a full remodel of our kitchen, I am only able to do so because I own the property that I live in. If you are like me and you enjoy working on home improvement projects, then you should get excited at the opportunity of owning your first house. The reality of working on home improvement projects only exists when you own your own place!

So, What Do You Think?

Have any of the points above hit home with you at all? If so, don't be afraid. Get started with your home buying process. If you have any questions about purchasing a home in the Colorado Springs area, please feel free to reach out to me. I'm here to help whenever you need me. :) For FREE Real Estate Advice, call/text Carrie at 719-651-2199 or visit www.RunningRealtor.net

This is an amazing FREE mobile home search app you can download and see what homes are available to purchase in the Colorado Srings area.

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Tuesday, February 10, 2015

Peyton CO 80831 Home Owners - Home Prices vs Costs

As a Colorado Springs home seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first time or repeat buyer, you must not be concerned only about price but also about the ‘long term cost’ of the home.

Let us explain.

There are many factors that influence the ‘cost’ of a home and Colorado Springs Real Estate. Two of the major ones are the home’s appreciation over time, and the interest rate at which a buyer can borrow the funds necessary to purchase their home. The rate at which these two factors can change is often referred to as “The Cost of Waiting”.

What will happen in 2015?

A nationwide panel of over one hundred economists, real estate experts and investment & market strategists project that home values will appreciate by almost 4% by the end of 2015. Additionally, Freddie Mac’s most recent Economic Commentary & Projections Table predicts that the 30-year fixed mortgage rate will appreciate to 4.5% by the end of 2015

What Does This Mean to a Home Buyer In Colorado 80831?

Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today:

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Thinking of Selling? What is Your Home Worth?

Let Carrie Lukins, The Running Realtor, at Sellstate Alliance Realty help you with all your home buying and selling needs.

Call 719-651-2199 or visit www.RunningRealtor.net

Wednesday, February 4, 2015

10 Questions In Colorado Springs Real Estate 80920 That Home Owners and Home Buyers Need Answered

Buying Colorado Springs real estate is exciting and terrifying, all at the same time. There are many steps to the home buying process and each step creates a new set of questions. Knowing the answers to the 10 most common home buying questions can alleviate some of the stress that comes with buying real estate. This articles was designed to help you understand the basics of purchasing real estate, in simple steps. Buying a home may seem intimidating, but a good REALTOR® will make it much easier. They will take care of you through each step of the process, and make your experience as smooth as possible.

What’s the first step of the home buying process?

Answer: The Mortgage Pre-Approval.

Unless you are paying cash for a house, you will need to get a mortgage. In order to know how much home you can afford, you will need to get pre-approved for a loan. This is the first-step in the home buying process.

How Long Does it Take To Buy a Home?

Answer: Around 30 days

The timeline for finding a house varies greatly from person to person. Once you find a house and have an accepted offer, it usually takes around 30 days to close.

What Does A REALTOR® Do?

Answer: Almost everything.

A REALTOR® is your most valuable asset when buying a home. They will walk you through every part of the home buying process. They will educate and inform you of all your options. They will represent you throughout the transaction and beyond. To fully understand what that means, contact Carrie Lukins at 719-651-2199 today

There is a difference between a REALTOR® and a real estate agent; many people do not know this. A REALTOR® is regulated by the National Association of REALTORS® and subscribes to a strict Code of Ethics. A real estate agent does not. It is recommended that you work with a licensed REALTOR® to avoid potential problems.

How Much Do I Have To Pay a REALTOR® as a Homebuyer?

Answer: Nothing

In most cases, you do not have to pay your REALTOR® anything to help you purchase a home. The sellers pays their REALTOR® a fee, and then that listing agent pays the buyers agent for bringing the buyer and facilitating the transaction.

What’s Your Best Advice for First-Time Homebuyers?

Answer: Trust the Professionals.

Beware of advice from people who do not work in the industry. Real estate is a popular topic and almost everyone feels like they have some great insight to offer. In reality, the people who know best are the people that work in the business. Good REALTORS® have sold hundreds (maybe thousands) of properties. We know what to expect and what to look out for. Friends and relatives have only bought and sold a few homes, if any at all. Buying and selling a couple of homes does not make someone a well-rounded source of information. I’ve seen too many first-time buyers become persuaded by well-meaning friends and family, only to be disappointed later. Be confident in your decisions and trust the professionals.

What Kind of Credit Score Do I Need to Buy a Home?

Answer: 620+

A 620 credit score, or higher, is recommended. As you are probably aware, a higher credit score offers better lending terms. This is an ever evolving topic, however, as loan requirements are constantly changing. There are some lenders who will approve buyers with a 580 score, sometimes even lower. Your loan officer will be the best source to give you a current answer for today’s lending requirements.

Are There Special Home Buying Programs That I Should Know About?

Answer: Yes

There are some great home buying programs to research. The main ones would be VA loans, USDA loans, and FHA loans. Knowing the difference between these loan types is very important. Other local options would include the The El Paso County “Turnkey” Mortgage Program and the CHFA SmartSteps Plus Purchase Mortgage Program. Both provide down payment assistance under certain conditions.

How Much Money Do I Need for a Downpayment?

Answer: It depends on your loan type. Usually 3% to 5% down.

The most common answer is 3% to 5% of the purchase price. FHA loans just dropped their requirement from 3.5% to 3.0%. There are also some conventional loans that only require 3% down. Veterans are usually eligible for a VA loan, which requires no money down. Properties in rural areas are usually eligible for a USDA loan, which also requires no money down.

What Other Fees Are There, Besides the Downpayment?

Answer: Mainly loan origination and closing costs.

The downpayment is usually the largest cost associated with buying a house. Lending fees are the second largest costs to homebuyers. Most lenders will charge between 2% to 4% of the loan amount for loan origination fees, depending on the loan type. Conventional loans usually have lower loan origination fees, but require more money down. Your loan officer will be able to help you determine how much you can expect to pay towards loan origination and closing costs. Calculate a Mortgage Payment Here

When do I get the keys?

Answer: At Closing

Under normal circumstances, you will get the keys at the closing. A closing typically takes about an hour. In some cases, the lender will need time to fund the loan and you will need to pick up the keys after the loan has been funded. If you have a Friday evening closing and the loan cannot fund until Monday, you may not get the keys until Monday. Make sure to coordinate your closing to get the keys on the same day, if that is what you need.

Do you have a real estate question that you would like answered? Feel free to contact me directly, or leave a comment below for others to answer as well. Remember, a good REALTOR® is your best source of information when buying a home. Once you have a REALTOR® that you trust, start asking as many questions as possible. They will gladly inform and educate you through each step of the home buying process.

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