http://cbdistinctiveluxury.com/blog/archive_202201/sort_entrydatetime-desc/ You may have heard that it’s important to get pre-approved for a mortgage at the beginning of the homebuying process, but what does that really mean, and why is it so important? Especially in today’s market, with rising home prices and high buyer competition, it’s crucial to have a pre-approval letter prior to making an offer. Here’s why.Being intentional and competitive are musts when buying a home this year. Pre-approval from a lender is the only way to know your true price range and how much money you can borrow for your loan. Just as important, being able to present a pre-approval letter shows sellers you’re a qualified buyer, something that can really help you land your dream home in an ultra-competitive market.With limited housing inventory, there are many more buyers active in the market than there are sellers, and that’s creating some serious competition. According to the National Association of Realtors (NAR), homes today are receiving an average of 3.8 offers for sellers to consider. As a result, bidding wars are still common. Pre-approval gives you an advantage if you get into a multiple-offer scenario, and these days, it’s likely you will. When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war.Freddie Mac explains:“By having a pre-approval letter from your lender, you’re telling the seller that you’re a serious buyer, and you’ve been pre-approved for a mortgage by your lender for a specific dollar amount. In a true bidding war, your offer will likely get dropped if you don’t already have one.”Every step you can take to gain an advantage as a buyer is crucial when today’s market is constantly changing. Interest rates are rising, prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals such as a loan officer and a trusted real estate advisor making sure you take the right steps and can show your qualifications as a buyer when you find a home to purchase.Bottom LineIn a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. Not only does being pre-approved bring clarity to your homebuying budget, but it shows sellers how serious you are about purchasing a home. http://cbdistinctiveluxury.com/blog/10281/why-pre-approval-is-key-for-homebuyers-in-2022/ Thu, 27 Jan 2022 10:51:50 -0700 When mortgage forbearance plans were first announced and the pandemic surged through the country in early 2020, many homeowners were allowed to pause their mortgage payments. Some analysts were concerned that once the forbearance program ended, the housing market would experience a wave of foreclosures like what happened after the housing bubble 15 years ago.Here’s a look at why that isn’t the case.1. There Are Fewer Homeowners in Trouble This TimeAfter the last housing crash, over nine million households lost their homes to a foreclosure, short sale, or because they gave it back to the bank. Many believed millions of homeowners would face the same fate again this time.However, today’s data shows that most homeowners exited their forbearance plan either fully caught up on payments or with a plan from the bank that restructured their loan in a way that allowed them to start making payments again. The latest data from the Mortgage Bankers Association (MBA) studies how people exited the forbearance program from June 2020 to November 2021.Here are those findings:38.6% left the program paid in full19.9% made their monthly payments during the forbearance period11.8% made up all past-due payments6.9% paid off the loan in full44% negotiated work-out repayment plans29.1% received a loan deferral14.1% received a loan modification0.8% arranged a different repayment plan0.6% sold as a short sale or did a deed-in-lieu16.8% left the program still in trouble and without a loss mitigation plan in place2. Those Left in the Program Can Still Negotiate a Repayment PlanAs of last Friday, the total number of mortgages still in forbearance stood at 890,000. Those who remain in forbearance still have the chance to work out a suitable plan with the servicing company that represents their lender. And the servicing companies are under pressure to do just that by both federal and state agencies.Rick Sharga, Executive Vice President at RealtyTrac, says in a recent tweet:“The [Consumer Financial Protection Bureau] and state [Attorneys General] look like they’re adopting a ‘zero tolerance’ approach to mortgage servicing enforcement. Likely that this will limit #foreclosure activity for a good part of 2022, while servicers explore all possible loss [mitigation] options.”For more information, read the warning issued by the Attorney General of New York State.3. Most Homeowners Have More Than Enough Equity To Sell Their HomesFor those who can’t negotiate a solution and the 16.8% who left the forbearance program without a work-out, many will have enough equity to sell their homes and leave the closing with cash instead of facing foreclosures.Due to rapidly rising home prices over the last two years, the average homeowner has gained record amounts of equity in their home. As Frank Martell, President & CEO of CoreLogic, explains:“Not only have equity gains helped homeowners more seamlessly transition out of forbearance and avoid a distressed sale, but they’ve also enabled many to continue building their wealth.”4. There Have Been Far Fewer Foreclosures Over the Last Two YearsOne of the seldom-reported benefits of the forbearance program was that it allowed households experiencing financial difficulties prior to the pandemic to enter the program. It gave those homeowners an extra two years to get their finances in order and work out a plan with their lender. That prevented over 400,000 foreclosures that normally would have come to the market had the new forbearance program not been available. Otherwise, the real estate market would have had to absorb those foreclosures. Here’s a graph depicting this data:5. The Current Market Can Easily Absorb Over a Million New ListingsWhen foreclosures hit the market in 2008, they added to the oversupply of houses that were already for sale. That resulted in over a nine-month supply of listings, and anything over a six-month supply can cause prices to depreciate.It’s exactly the opposite today. The latest Existing Home Sales Report from the National Association of Realtors (NAR) reveals:“Total housing inventory at the end of November amounted to 1.11 million units, down 9.8% from October and down 13.3% from one year ago (1.28 million). Unsold inventory sits at a 2.1-month supply at the current sales pace, a decline from both the prior month and from one year ago.”A balanced market would have approximately a six-month supply of inventory. At 2.1 months, the market is severely understocked. Even if one million homes enter the market, there still won’t be enough inventory to meet the current demand.Bottom LineThe end of the forbearance plan will not cause any upheaval in the housing market. Sharga puts it best:“The fact that foreclosure starts declined despite hundreds of thousands of borrowers exiting the CARES Act mortgage forbearance program over the last few months is very encouraging. It suggests that the ‘forbearance equals foreclosure’ narrative was incorrect. . . .” http://cbdistinctiveluxury.com/blog/10271/there-won’t-be-a-wave-of-foreclosures-in-the-housing-market/ Tue, 18 Jan 2022 03:52:58 -0700 Coldwell Banker Distinctive Properties and Coldwell Banker Commercial Prime Properties are pleased to announce their acquisition of Coldwell Banker Good Life Real Estate Group in the Kansas City area. The collaboration brings together strong Coldwell Banker Affiliates in an effort to deliver exceptional real estate experiences to clients across Colorado, Idaho, Kansas, Missouri, and Montana.Coldwell Banker Good Life Real Estate Group was founded in 1997. Committed to its mission of offering impeccable service to clients from all over the world, it has been ranked as the number one Coldwell Banker office in Kansas, and is among the top ten real estate brokers in Kansas City.“This is an exciting chapter in my career to merge my company, Coldwell Banker Good Life, to be a part of Coldwell Banker Distinctive Properties, owned by Todd and Shannon Conklin,” said Karen Bergin, Broker and Owner of Coldwell Banker Good Life Real Estate Group.  “Our companies align perfectly as we both are committed to having systems and programs in place to deliver a high client experience while changing the lives of real estate agents on our team, professionally and personally.”Coldwell Banker Distinctive Properties, with over 350 agents and staff, has been ranked six times on the Inc. 5000 list of the nation’s fastest-growing private companies. It is consistently named one of the largest and fastest-growing real estate brokerages in the U.S. by REAL Trends, and prides itself on its commitment to innovation and providing truly remarkable service.“CB Good Life’s foundation and reputation have been key to their tenured success, and now our teams are well positioned in the market to outpace our competition through industry leading technology, individual agent support, and exceptional client services,” said Coldwell Banker Distinctive Properties and Commercial Prime Properties President Ryan Brown. “It’s an exciting time for our company and we are thrilled to work with the incredible team of agents and staff from Coldwell Banker Good Life.”  http://cbdistinctiveluxury.com/blog/10257/coldwell-banker-distinctive-properties-now-serving-kansas-city!/ Mon, 10 Jan 2022 04:12:09 -0700