Deja Lett Team Real Estate Podcast
Deja Lett
If you are looking to buy or sell a home, get all the information and the latest updates, tips, and tricks from Deja Lett - your professional Maine Real Estate Agents.
- The Key Steps of a Mortgage Pre-Approval
If you’re buying a home with a mortgage, you absolutely need to get a pre-approval first. Here’s why.
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There's no doubt about it. It's a very competitive market today if you are looking to buy a home.
Inventory is near record lows, and more and more homebuyers are entering the market. This means you need every advantage to grab that perfect home when you do find it.
One no-brainer is to get pre-approved for a mortgage. A pre-approval informs you of how much you can borrow and it's something you will need to do at a later point anyway.
A pre-approval can mean the difference between having your offer accepted or having to watch your dream home go to somebody else in a crazy market like this.
In spite of all these good reasons, less than 10% of buyers who got a mortgage get pre-approved by the lender who originated the loan. In other words, you can definitely get a leg up on the competition by starting your home search at the loan office rather than at the open house.
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A pre-approval definitely gives you a leg up on the competition.
” Here are a few things that you will need:
1. Proof of income. At a minimum, lenders will want to see pay stubs from the past 30 days showing your year-to-date income, two years of federal tax returns, and two years of W2 forms from your employer.
2. Proof of assets. You will need to present statements from your checking, savings, or investment accounts to prove that you have funds for the down payment and closing costs.
3. Good credit. Most lenders reserve the best rates for homebuyers with a credit score of 740 or above. You can still qualify for a mortgage with a lower credit score, but a good lender will also recommend ways that you can improve your credit and qualify for a better loan.
These are the biggest and most common things you will need to get pre-approved, though your lender might want to see some other documents as well.
Once you are pre-approved, the buying process will be faster, more convenient, and less stressful. Most importantly, it will make it more likely that your offer for that perfect home gets accepted.
If you have any questions for me or need any additional assistance, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.
12 March 2018, 7:31 pm - Interest Rates Will Be Rising Soon
Interest rates are creeping up. Here’s how people are taking advantage of the market now.
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We're in for a very competitive stretch in the real estate market.
First off, mortgage rates have started increasing. For the first time since last summer, the 30-year average mortgage rate is now over 4%. This follows a long period when mortgage rates were near record lows.
This latest increase might be more than just a temporary bump. Some experts predict that we've seen the last of sub-4% mortgage rates, thanks to strengthening inflation and broad-based economic growth.
Second, mortgage applications are also increasing. Applications were up in January by 4.1% compared to last year. This has been led by people looking to refinance their homes, while mortgage applications by homebuyers remained at steadier levels.
Third, housing supply continues to be increasingly tight, with 10% fewer homes on the market than a year ago.
What do all of these numbers mean for you?
Homebuyers are looking to lock in the current, low rates.
The growth in mortgage rates shouldn't affect the number of eager homebuyers very much because there is so much more demand than supply right now. However, this rise in mortgage rates might actually reduce the number of homes for sale even further.
Homebuyers should be looking to lock in the current, still fairly low mortgage rates. When mortgage rates increase further, homeowners will have less of an incentive to sell their current home and buy a new home, which will require a mortgage at a new, higher rate.
If you have any questions about where the current rates are at or you have any real estate needs we can assist with, please don’t hesitate to reach out and give me a call or send me an email. I look forward to hearing from you soon.16 February 2018, 5:12 pm - 3 Tips for Southern Maine Home Sellers
What can you do to set your home apart from the competition? I have three tips to give your listing a competitive edge.
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What can you do to give your home a competitive edge once it hits the market?
1. Get your home pre-inspected. By ordering the inspection, you show the buyer that you’ve done some due diligence. It also shows that you addressed any issues head-on.
Another benefit of the pre-inspection is that you will save more money in the long run. When the buyer does the inspection, they are trying to find everything they need to know about the property while looking for a way to renegotiate with you on pricing and repairs.
Depending on what comes up during the home inspection, buyers can get very nervous. Their idea of what something might cost to repair can be a little skewed. If you’ve done the inspection and addressed those issues head-on—and you have the report and receipts to show it—you will save money in the long run. You also won’t be blindsided by any surprises.
Staged homes sell in 11 days and for 17% more money than non-staged homes.
2. Have your home staged. According to the National Association of Realtors, homes that are professionally staged sell in 11 days or less and for 17% more than non-staged homes. Staging will yield you more money in a shorter amount of time. Staging also helps buyers see where things can be placed in the home to make it warm and welcoming.
3. Have professional photos taken. We always use a professional photographer on all of our listings. Everyone knows that a picture says 1,000 words, but I think a picture says a million words. People get emotional when it comes to buying, and those photos are their first impression of your home.
If you follow these tips, you will set your listing up for a successful sale. If you have any other questions about selling in today’s market, just give me a call or send me an email. I would be happy to help you!2 February 2018, 9:10 pm - Tax Reform’s Effect on the Real Estate Market
I’m sure you’ve heard a lot about tax reform lately. Here’s a few ways The Tax Cuts and Jobs Act will affect the real estate market.
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There's a lot of uncertainty about The Tax Cuts and Jobs Act and its effect on real estate. Let’s first take a look at the four key tax changes impacting the housing market at this moment:
1. Deductions for property taxes. Prior to the new tax bill, if you itemized your deductions, you could deduct all of your property tax. Going forward, this amount will be capped at $10,000.
2. Deductions for mortgage interest. The final bill reduces the limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/2017. Other loans of up to $1 million are grandfathered in.
3. Home sales exclusion for capital gains. If you sell your home and turn a profit, then up to $500,000 of that profit is exempt from capital gains tax. Although earlier versions of the bill required you to live in the home for five out of the last eight years, the final bill made no changes to the capital gains exclusion. In order to qualify for this exclusion, you must have lived in your home for two of the past five years to claim this exemption—just like before.
4. Deductions for moving expenses. The final bill repealed the moving expense deduction, except for those who are members of the Armed Forces.
The first two changes increase taxes on current homeowners and make homeownership less attractive. This is a part of why the National Association of Realtors claims that home prices could drop by more than 10% due to the new tax plan.
On the other hand, the last change makes it more expensive to sell your home. As a consequence, they could keep some homes off the market.
These reforms may drive home prices down in the midterm.
We'll have to see how the different changes play out in reality, and how they interact with other real estate conditions. However, there does seem to be a consensus among experts that current reforms might drive home prices down somewhat in the midterm.
On the bright side, home sellers do still get to take advantage of the home sales exclusion for capital gains. That is a major victory for real estate.
That's why if you've been thinking of selling your home, now might be a good moment to start the process. If you have any questions, whether you are buying or selling, you can always call me or shoot me an email. I can give you more specific recommendations based on your unique situation. I look forward to hearing from you soon.23 January 2018, 4:35 pm - Homebuyers Are Feeling Optimistic
Why are homebuyers more optimistic than they have been in the past few years? Here’s what we found.
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Here’s a paradox for you: Right now, homebuyer confidence is at an all-time high, according to a survey performed by Fannie Mae. Furthermore, an increasing number of people, particularly renters, think now is a good time to buy a home. Yet at the same time, housing inventory remains very tight. It’s down 6.5% nationally from last year. Home prices are also up 6.9% nationally over last year.
In other words, homebuyers are optimistic at a time that the market seems to be favoring sellers. So, what's going on? Why are homebuyers so optimistic all of a sudden? Here are three possible explanations:
1. Lending is loosening up. Over the past several years, mortgage rates have seen historical lows. This has meant that homes are actually more affordable, in spite of the increase in prices. However, lending has been very tight. Fortunately, that’s changing. Lenders are approving mortgages at the highest rate since 2011, with 77% of mortgages for home purchases approved.
Lenders are approving mortgages at the highest rate since 2011.
2. Jobs are looking good. At the moment, fewer homebuyers are worried about losing their jobs, according to the same Fannie Mae survey. It's not just job security that's contributing to greater optimism about buying a home. Overall income is higher, making homes more affordable by comparison. The median household currently has 150% of the income needed to buy a median home, compared to a historical average of just 125%.
3. Long-time renters are ready to buy. Millennials, the generation of people born after 1980, have largely opted out of homeownership until now. They have been renting for a longer time, putting them higher up on the pay scale compared to previous generations of first-time homebuyers. But now, many millennials are finally hitting an age when they are willing to commit to buying instead of renting. This is reflected in the Fannie Mae report, which states that much of the increase in homebuyer optimism comes from current renters.
What all does this mean for you? If you're looking to buy a home, all of the above reasons should give you confidence that now is indeed the right time to buy.
If you’re thinking about buying or selling a home, click the links above to search for homes on the MLS or find out how much your home is currently worth.
And if you have any questions about the Southern Maine real estate market, whether you're thinking of selling or buying, give me a call at 207-553-2602. I'm here to help. I look forward to hearing from you soon.9 January 2018, 10:14 pm - 5 Safety Precautions for a Safe, Hassle-Free Home Sale
If you want to protect your home and yourself during the listing process, there are five safety precautions you need to take in your home.
Buying a home? Click here to perform a full home search Selling a home? Click here for a FREE Home Price Evaluation
When preparing to list your home, there are five safety precautions you should take.
First, remove all prescription medications inside your medicine cabinet.
Second, put away any jewelry, family heirlooms, financial records, and other valuables and store them somewhere else.
Third, remove all family photos from your home. Not only will this help the buyer visualize themselves living inside the home, but it will also protect your privacy.
Fourth, install surveillance cameras.
Lastly, don’t let anyone view the home without their agent present.
Make sure your Realtor has some kind of screening process.
As a seller, preparing your home for the market can be a stressful time. You’re thinking about getting the best price and possibly needing to move quickly, and you’ll have potentially a lot of strangers into your home, so make sure your Realtor has some kind of screening process.
Our job is to make this process easy for you, so if you’re thinking about selling your home, don’t hesitate to reach out to me. I will do a comparative market analysis to help you find the best price, give you tips on how to prepare your home for the market and maximize its value, and provide safety tips to ensure all these precautions are in place.
If you have any other questions or are thinking about buying a home, just give me a call or send me an email. I’d be happy to help you.28 December 2017, 5:12 pm - How Will the Fed's Recent Decision Influence the Market?
The Fed’s recent decision is going to have a big impact on our economy and real estate market. Here is everything you need to know.
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The Fed just announced a move that will have a big impact on sellers and buyers.
At the recent meeting on September 20th, the Fed decided to cut back their balance sheet. While this might sound boring compared to the usual news of Fed rate hikes, it’s actually a big deal.
The financial crisis we saw a decade ago caused the Fed to take emergency measures. So, they injected a huge amount of money into the economy by buying up various financial assets in an enormous sum.
These financial assets amounted to a sum of about 25% of the United States economy at that time. But now, the economy has recovered to the point where the Fed feels comfortable taking some of this money back.
As you can imagine, this is going to have a huge impact on our economy and real estate market. This change is going to put upward pressure on consumer borrowing costs such as mortgage rates.
This change is going to put upward pressure on consumer borrowing costs such as mortgage rates. In other words, if you are thinking of buying a home you should know that the Fed’s most recent move will eventually make it more expensive to do so.
Also, sellers must be aware that this change could result in fewer interested buyers. This might lead to a decrease in prices, making it harder to sell.
However, this is not an immediate change. The rollback will be gradual, with the Fed taking back just $10 billion per month. Compared to the $4.5 trillion total that was borrowed originally, this is not a significant amount.
While the Fed’s move will not take effect immediately, you should act quickly if you have been thinking of buying or selling. Now is the time to make your move before the process of this change starts to escalate.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.31 October 2017, 8:08 pm - 5 Ways to Invest in Real Estate
Real estate investing is on the rise. Here are five different ways you can get involved.
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Investing in real estate is no longer restricted to the super wealthy. According to a recent survey, real estate investors now make up 15% of the population. That translates to almost 50 million individuals who invest in at least one property other than their primary residence.
In fact, 89% of U.S. investors are interested in putting their money in real estate because of benefits such as cash flow, tax incentives, leverage, and value appreciation that come with investing in multiple properties.
Are you curious about investing in real estate? If so, here are five different ways you can get started:
1. Buy and rent This is probably the most traditional way to invest in real estate. It simply involves buying a property and renting it out. Now is a good time for this kind of investing because rental rates are on the rise (8% since last year) but the downside of this investing approach is the time and effort needed to manage and maintain your investment.
2. Buy and sell Also known as home flipping, this involves buying a property and reselling it soon after for a profit. Home flipping has offered a record-breaking 49% return in 2016.
Home flipping offered a record-breaking 49% return in 2016.
3. Real estate investment groups Real estate investment groups are organizations that buy a set of properties and then sell them to individual investors.The main benefit of this approach is that you typically do not need to act as the landlord because the investment group handles property management for you (for a fee of course).
4. Crowdfunding sites Recently, there's been an explosion of sites such as Prosper and Lending Club, which allow individuals to invest in various real estate development projects. Through crowdfunding sites, you can be a part of a large-scale property investment while investing only a moderate amount of money. On the other hand, crowdfunding sites act as a middleman and charge fees which can eat into your profits.
5. REITs Real estate investment trusts (REITs) are like mutual funds for real estate.They typically pay high dividends. However, they also do not offer all of the typical benefits of investing in real estate, such as increased leverage and tax benefits.
Each of these investing approaches offers a tradeoff between possible profits, risks, and costs. The one constant is that you can minimize your risks with due diligence and by consulting with an experienced real estate professional.
If you have any questions for us or you’re interested in investing in real estate yourself, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.27 September 2017, 4:23 pm - Busting 3 Common Home Buying Myths
Today I’m busting three common home buying myths that can sometimes deter people from buying.
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There are a few common myths that exist around the subject of buying a home.
First of all, many people falsely assume that mortgage payments are unaffordable.
In fact, the tax savings you gain from a mortgage actually makes up a large portion of the difference between a rent payment and a mortgage. Mortgages are a lot more affordable than many people think.
The second myth I’d like to bust is that buying a home is too complicated. Though the process does involve some fine details, working with a quality Realtor will alleviate any confusion. The job of a Realtor is to walk you through the transaction from start to finish.
From helping with the pre-approval, talking about your goals, all the way into guiding you to the best home, Realtors are here to help.
Third, there is a common misconception that buying a new home requires a substantial down payment. This is simply not the case. Many programs exist, such as the VA program for veterans, that require zero money down.
There’s also the FHA program, which allows first-time homebuyers to put as little as 3.5% down. Conventional loans can also be as low as 5%.
It’s a great time to buy a home.
Rates are still low right now, so it’s a great time to buy a home.
If you’d like to hear how I can help you buy a home, have any other questions, or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.6 September 2017, 8:53 pm - Things to Do to Get Ready to List Your Home
Today I’ve got a list of five inexpensive things that you can do to get your home ready to sell.
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I’m often asked what homeowners can do to get their homes ready for listing. Today I’ve got a list of five things you can do to your home without breaking the bank:
- A tile backsplash in the kitchen. This is a relatively inexpensive thing to do and Home Depot offers classes on how to create the look if you’re a DIY’er like myself. This simple project can completely update the look and feel of your kitchen without having to spend the money on an entire remodel.
- Painting rooms. Fresh paint really goes a long way without costing too much money. Be sure to choose neutral colors that will help the buyer visualize themselves in the room and give them a fresh canvas on which to work if they want to personalize the home once they’ve moved in.
- Replace kitchen and bathroom faucets. Updating these items throughout the home gives everything a fresh look without having to replace the cabinets in a larger remodel. You can find new fixtures for a great price at Home Depot.
- Spruce up your entryway. Adding a few simple decorations inside, as well as some potted plants outside your front door will go a long way towards adding positive curb appeal to your home.
- Add a fresh layer of mulch to your gardens. Doing this simple thing will give your yard a cleaner, more put-together look and do great things for your curb appeal.
These simple things will go a long way to adding value to your home, and you don’t have to break the bank to do it.
If you have any other questions or you’re looking to buy or sell a home in our area, give me a call. I would be happy to help!14 August 2017, 6:23 pm - What to Ask Yourself Before Listing
Before you put your home on the market, there are four key questions that will help you make the most out of your listing.
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Before you sell your home, there are four key questions you should ask.
1. How does your home size and layout compare to other homes on the market? One of the first steps you can take in answering this question is going online to look at properties in your area. When you examine your home using other comparable homes as a point of reference, you’ll get a better idea of how to value your property. In addition, you might also find that this will help you decide on which upgrades, if any, might help your listing.
2. What are the key selling points of your home? Your property is unique. Along with looking at other properties to see what sets them apart, you should also be considering what is special about your own home. Do you have a security system, a fenced in yard, or other unique amenities? Determining these items will help you to better market your home.
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Consider what is special about your home.
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3. What are small upgrades and improvements you can do prior to putting your home on the market? Before you list, your home should be in the best condition possible. Small improvements like painting can make a big difference. But also don’t forget to take care of any repairs, as well. The front entrance is going to be especially important. Make sure it looks attractive in terms of curb appeal.
4. What type of buyer should you be looking for? Having a target demographic for your listing will make the process of marketing much easier. If you have a multi-family home you’ll most likely seek investors or an owner-occupied person looking to supplement their income. If your property is on the water, you might be looking for buyers who are seeking out a second home.
If you are thinking of selling, even if you aren’t planning to do so in the immediate future, I would love to help. I’d be more than happy to visit your property and help you answer each of these questions about your property.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you, soon.27 July 2017, 8:05 pm - More Episodes? Get the App