Every Realtor has their favorite lender. And I get that having a strong relationship with a lender makes a positive difference for a buyer. But… I was in the mortgage biz for 17 years and have a lil’ deeper insight into what makes a Loan Originator an “ok one” versus a “really awesome one”. And since buyers are in the process of making the biggest purchase of their life, being ok is just not good enough. Not for any client of mine anyway.
Here are 5 KEY Reasons why our recommended lenders will make a difference in your life!
- They’re really good at what they do. They’re experienced and they know their stuff! Which means they’ll help you pick the best loan product for your specific situation
- They’re solid people. They treat people right and the costs are always fair and straightforward
- They communicate – good or bad news. It makes no difference. They return phone calls / emails / text messages. They keep you in the loop
- They’re friendly. Getting a mortgage can sometimes feel like going to the dentist, so they’re perspective and sense of humor can keep your spirits up
- They go the extra mile. This past weekend showed up just one more example. Mike Wickham with Caliber Home Loans stayed til 7 on a Friday night to get a pre-qualification letter out so one of our clients could make a good offer. (Btw, they got the house! How cool was that?!) And Alan Pressley with Ruoff went into the office Saturday afternoon to help another of our clients get in position to win a bid. I think when the dust settles, we’ll have won that one too!
There are 5 key reasons why our lenders can help you win over other bidders. After all, it doesn’t do you any good to find THE right house if a lender is going to drop the ball on you, now does it? To learn how you can get the house you really want, contact our recommended lenders and you’ll go to the front of the line!
The national media is starting to talk about the popping of Housing Bubble #2. Graphs of housing prices in various cities across the country are now suggesting that a top has been reached and that prices are beginning to trend down. The next step in this game is predicting just how low prices will go. Will they follow the pattern seen in the last recession or will they fully retrace the gains of the past 10 years (because the Fed no longer has as much ammunition to throw at the problem as it did the last time around). These scenarios would have house prices falling by 1/3 – 1/2 No matter how you cut it, that would be a BIG ouch.
Do we have the same to fear here on the home court? I don’t think so and here’s why. Central Indiana home prices have ramped up significantly since the depths of the last recession in 2009, from a median average price of $128,000 to $169,900 this past month. That’s a 33% increase in the past 10 years. While not as large as the nation as a whole, and certainly modest by comparison to some markets (NYC, DC, Boston, West Coast, and others), it is nevertheless significant. So, are we in Bubble territory? My bet is “No”. The median house price here is $169,900. Based on current interest rates, Indiana’s relatively low property taxes and homeowner’s insurance costs, that $169,900 price tag (with a 5% down payment) translates to a mortgage payment of $1,255, including taxes and insurance. The median household income is $59,566. Mortgage underwriters (ie risk analysts) work with a 28% debt ratio standard (comparing mortgage payment to monthly income). And if we take the $1,255 payment and divide it by the median monthly income ($59,566/12) of $4,964, we come up with a debt ratio of just 25%. That ratio tells us that Indy’s house prices make sense. We are not those cities where home prices are in nosebleed territory. And barring a major recession causing a large rise locally in unemployment, we probably are not facing a serious decline in housing prices.
US News ranked Indianapolis #5 on its list of 25 Best Affordable Places to Live in 2018. Our home prices are just one more reason for Hoosiers to feel #blessed about where we live. Give me a call (317) 625-0655 if you want to talk it over a good ol cup of Joe ☕