Are you considering buying a home this year? With a solid game plan and approach to buying a home, you can plan to win in 2024. Of course you’ll need to prepare. And hey, you’re off to a great start by reading this blog—we don’t want you to fall short of your goals either. But, like with just about anything, being prepared will have you ahead of the competition—and, if rates fall significantly, there will surely be competition. A persistent shortage of homes for sale will still likely cause challenges for buyers into 2024, leaving sellers in a favorable position. However, with interest rates falling, of late, could it be the year that buyers finally have the advantage?  If you're considering house hunting this spring, make sure to allocate enough time to find the right property and bring your best negotiation skills to the table. Until then, here’s a breakdown of what's happening in today’s market and how you can prepare. Home Prices Have Stabilized. Will They Begin to Climb? The real estate landscape is currently characterized by stable home prices. After a three-year-long surge, prices have mostly held steady this past year, with some regions experiencing slight decreases and others seeing modest increases. As of November 9th, the national median price for existing homes was $430,300, according to the National Association of Realtors (NAR). Looking ahead, NAR predicts a 0.9% increase in the median price for existing homes in 2024 compared to the previous year. Fannie Mae was among the most optimistic predicting a 2.4% increase, while realtor.com® predicts a 1.7% decrease in median home value in 2024. Here in Colorado, the median home value was significantly higher than the national average at over $612,000. That means you’ll really need to save for your down payment.  The NAR recently reported a discrepancy in cash (down payment) availability between first-time and repeat buyers. First-time buyers typically make a median down payment of 8%, while repeat buyers put down a higher median of 19%. Interest Rates Remain Relatively High  In 2024, it’s high time to acknowledge that historically low mortgage rates are a thing of the past, with rates rising to a 30-year peak in October 2023. However, beginning in November rates began a six-week decline, then stabilized at the end of the year. Currently, rates are holding well below 7% and some experts think we could see rates decrease into the high 5s at some point this year, perhaps as early as Q2.  NAR predicts the 30-year fixed-rate mortgage to average 6.3% in 2024; realtor.com® projects 6.5%. This likely will improve housing affordability and entice more home buyers to return to the market, according to NAR’s Chief Economist Lawrence Yun.  The Federal Reserve's efforts to curb inflation have contributed to this trend, with 3 interest rate decreases planned for 2024, if patterns hold (always a big if). While rates may impact initial mortgage costs, it's worth considering the option to refinance if rates decrease in the future. What Can You Afford? NAR’s data shows that rates near 6.6% enable the average American family to afford a median-priced home without devoting more than 30% of their income to housing, the threshold commonly used to measure affordability. We can recommend our trusted lender partners so you can quickly and accurately determine what’s truly affordable for your unique scenario.  Competing for That Primo House According to October 2023 data from NAR, over 25% of homes are still selling above their listed price, with 28% of homes achieving this in that month. The median time homes spent on the market was 23 days, and on average, each property received 2.5 offers, indicating a persistently competitive market. NAR’s Yun emphasized the significant impact of limited housing inventory on satisfying housing demand, stating, "Multiple offers, of course, yield only one winner, with the rest left to continue their search." On the other hand, cash transactions continue to play a notable role in the marketplace, with nearly one in three sales (29%) completed in cash, up slightly from the 26% reported in 2022. So, if you have cash, you’re in a better position than most of the market. However, financing is only one aspect of competing for a home and there are many other ways to stand out.  MORE >>> Offer Strategies that Win Flexibility and Compromise As a homebuyer, there are aspects of the real estate market you simply can’t control. For instance, you can't control inventory or when someone decides to put their house up for sale. What you do have control over is your own outlook and readiness. Consider that finding the absolute perfect home should remain your BHAG (big, hairy, audacious goal) but that a "good enough for now" home can kickstart your homeownership journey sooner and may keep you from having the market pass you by. This rings particularly true for first-time buyers eager to start building equity. It’s no secret that real estate presents opportunity as a very solid investment long term, and often in the short term. Putting off buying six months or a year might mean losing out on tens of thousands of dollars. That said, if you find yourself constrained by your options consider broadening the scope of your search to include smaller homes, additional areas, or even different types of housing options such as condos or townhouses, as a suitable compromise. Perhaps you can make do with fewer bedrooms or bathrooms or adapt to a slightly outdated interior.  And, while I’m not your dad, my best fatherly advice is: keep your spirits up—even if it means tolerating less square footage or putting up with quirky linoleum floors for a bit, you'll end up with equity to remodel or sell down the line. How to Prepare: Tips for Winning in 2024 No matter which direction rates go, it’s always great to be prepared for opportunity. If you’re one who likes to prepare (and we highly recommend you do) here are some tips to prepare for and compete in the housing market in 2024 (adapted from a recent article from NerdWallet): Get your finances in order: Review your budget, down payment capabilities, and credit score. Consider consulting with a loan officer for guidance on improving your financial profile. Understand mortgage options: Explore various mortgage options beyond the misconception of needing a 20% down payment. FHA and VA mortgages, as well as down payment assistance programs, offer alternatives. Shop mortgage lenders: Compare offerings from different lenders, considering not only interest rates but also the annual percentage rate (APR) and overall loan costs. Hire a good real estate agent: Choose a buyer's agent with market expertise who can guide you through the process, provide referrals, and navigate current market conditions. Make your best offer and negotiate wisely: Beyond monetary considerations, be flexible with terms such as the closing date. Negotiate wisely and only make concessions that align with your financial capacity. Don't give up: Persistence can pay off in a competitive market. Stay optimistic, be prepared to act swiftly, and seize opportunities when they arise. Bottom Line Don’t get down about the sky-high costs and the scarcity of options, especially if you're a first-time buyer who's been holding off on the house hunt. With today’s market conditions you may experience challenges.  Our advice? Consider the long game. Waiting around for lower rates might end up with you facing even higher prices and tougher competition. So, if your heart is set on buying, focus on finding a place that checks as many of your boxes as possible within your current budget, all the while remembering that buying real estate often means compromising. I always remind my homebuyer clients, “even the buyers at $2.3M may have to compromise on that infinity edge pool if they can only afford to get an in-ground pool when everything else is perfect.” Setting your sights on perfection can often lead to unnecessary disappointment. Homebuyers often expect that they’ll hit a home run with their very first first at-bat when making a purchase. Sometimes, I gently remind them that nothing conquers inflation like real estate, so being in the game is important, even if you start by just getting on base. In any case, staying informed and adapting your approach will be key to success in this ever-evolving real estate landscape… …and we’re here to help. You just have to ask.

  In this video, Matt Thomas & Brian Dewald discuss how rising mortgage rates, multiple offers and increasing inventory are impacting the real estate market. They also talk about the success of Brian's cash program for buyers and the potential easing off of selling mortgage bonds by the Federal Reserve which could bring a much needed reduction in rates. They emphasize the importance of being prepared and taking action in the current rate environment. And, despite the recent uptick in rates, home sales multiple offers are still happening. Mortgage Lender Brian Dewald and I discuss the latest economic news and how that's impacting the local housing market. 🏡   Mortgage Minute is a real-time discussion of current new stories impacting real estate and mortgage lending in Denver, Colorado. Hosts Matt Thomas and Brian Dewald share insights that go beyond just interest rates. 📈 Discover the latest updates on mortgage rates and the exciting news that could impact your decision to buy a home. Matt and Brian focus on providing valuable education about the home buying process, emphasizing data over drama and facts over feelings.   💡 Don't miss out on the valuable tips and strategies shared in this episode! If you're considering buying a home or looking for ways to optimize your mortgage, this is a must-watch. Hit play and embark on your journey to homeownership with Mortgage Minute! 🔑✨   You're encouraged to subscribe to our channel, especially if you would like to receive notifications on all of our informative videos.   Subscribe to Our YouTube Channel

  It's springtime and that means competition for homebuyers in the real estate market has picked up. If you're not cash rich, you may find yourself unable to compete for the house you want. Brian Dewald of Maverick Lending Solutions has a product that can help homebuyers in today's market in one of 3 major ways:    1) It can help save a deal that another lender can't complete  2) It can put you in a position to buy with all cash to beat competitors 3) It can help you buy your dream home before you have to sell so you can have a roof over your head and still be able to buy and sell a home.    

Seizing the Opportunity: Why Now Might Be the Perfect Time for Your Real Estate Move __________ Something big occurred just yesterday in the housing world--one of the biggest 2-day drops in interest rates we've seen in decades! On Wednesday, the Federal Reserve met and Chairman Jerome Powell spoke at the last Federal Open Market Committee (FOMC) meeting of the year. Ultimately, the Fed signaled that additional rate hikes in the near term are not expected and unlikely and alluded to a potential for 3 rate decreases throughout the coming year. While the Federal Reserve doesn't directly establish mortgage rates, these rates align with market expectations influenced by the Fed's decisions on short-term rates. The positive expectations evident in the Fed's Wednesday projections further emphasize this correlation. The bond market, of course, loved the news, and traders began pricing The Fed's anticipated actions and dovish tone into the interest rates. The result was that the prevailing rate dropped to the lowest we've seen since May 2023, making up for a lot of lost ground along the way. Mike Fratantoni, Chief Economist of the Mortgage Bankers Association said:  “Additional rate hikes no longer appear to be part of the conversation. It is all about the pace of cuts from here. This is good news for the housing and mortgage markets. We expect that this path for monetary policy should support further declines in mortgage rates, just in time for the spring housing market. We are forecasting modest growth in new and existing home sales in 2024, supporting growth in purchase originations, following an extraordinarily slow 2023.” What does this mean for housing, and for you? Housing professionals expect further declines in mortgage rates and busier 2024 market. And it stands to reason. If you're considering buying a home, you can expect rates to likely move lower (more affordable). Since rates hit their recent peak of over 8%, homebuyers have gained hundreds of dollars in savings per month on mortgage payments due to the improved rates. In this video, released just this morning on YouTube, Brian Dewald, a local lending partner, spoke of a veteran family he helped close on a deal with a 30-year fixed rate of just 6.25%. Homebuyers currently in the market are finding that they're able to reach new thresholds of affordability or have homes, otherwise thought to be out of their price range, come back into focus for consideration. An Encouraging Winter Market  Since Thanksgiving, the mortgage industry has experienced a significant uptick in business, driven by homebuyers seizing the opportunity presented by lower rates. Concurrently, there has been a modest increase in new listing activity in recent weeks, providing additional choices for prospective homebuyers. In the current market, approximately two-thirds of existing mortgages still boast rates below 4%, and more than 90% have rates below 6%. This dynamic hampers inventory growth as homeowners are hesitant to part with their advantageous low-rate mortgages. However, a shift is anticipated in 2024, as noted by Lisa Sturtevant, Chief Economist at Bright MLS. Life changes, whether familial or financial, are expected to compel more homeowners to sell, even if it means relinquishing their favorable, much-lower rates. "With falling rates and heightened new listing activity, it is anticipated that the unusually busy December market will extend into January, as both buyers and sellers strive to gain an edge before the spring market," remarked Sturtevant in a recent statement. Cautiously Optimistic With moves this big, there is a risk of a corrective bounce. And progress will not be linear–2024 will continue to bring periods of ups and downs. Economically, despite strong retail sales and NY Fed Pres Williams’ attempt to squash the exuberance this morning, continued optimism prevails with the 10-yr dropping to 3.9% and the 30-yr fixed to 6.625%. Bottom Line Real estate decisions often take time to unfold. Yet, when a promising opportunity arises, it's advisable for prospective homebuyers to act promptly. These moments of advantage and opportunity in the real estate game can be brief, and seizing them could prove beneficial long-term.

Unveiling the Strategies That Catapulted One Couple to Financial Victory Amongst the Challenges of Today’s Real Estate Market I don’t know if it’s for you or not, but in today’s challenging real estate climate high home prices and high interest rates have created challenging market conditions for many. The following story, set in real-time amongst those very market conditions, however, illustrates how one couple we recently worked with used a financial real estate strategy to overcome substantial consumer debt, bought a much nicer home that fit their family’s needs, and still ended up hundreds of dollars ahead each month in their overall monthly expenses (see also our most recent video Buyers Saving Hundreds per Month from Recent Rate Reductions). This financial restructuring is known as blended rate, and if you’re anything like these folks, it could be a solution for you.   Allow me to set the stage: in the current economic landscape, consumer debt has reached historic levels, especially with soaring credit card interest rates driven by the Federal Reserve’s actions.  Our protagonists in the story, a real-life Colorado couple who purchased their home in 2019 for $430,000, had seen its value climb to an impressive $582,000 in four years. Despite a wise decision to refinance at 3.25% in 2021, they found themselves grappling with substantial credit card debt, and an exorbitant car payment—a common predicament for many households (see example below). Let’s take a quick look at the villian of the story (besides The Fed): the nearly $100,000 in consumer debts they were juggling. This includes $40,000 in credit card debt and a $56,000 vehicle loan, amounting to over $3,000 in minimum monthly payments. Their dilemma necessitated a proactive solution: sell their current home before the pent-up homebuying demand surges, aiming to secure a better overall home and financial foundation. Utilizing the equity from their increased home value, the couple paid off their high-interest credit cards. By consolidating their debts into the new $750,00 home loan, even at a higher interest rate of 7%, they achieved an overall monthly savings of $219–remember they had recently refinanced to 3.25%.  Delving deeper into the financial story, the couple utilized a blended rate approach to mitigate the bad interest associated with credit cards and an auto loan. This specifically resulted in a monthly reduction of expenses by $2,426, translating into an almost 20-year acceleration in paying off the loans! The cherry on top? A remarkable $113,000 in interest savings over the life of the loans and an increase in net worth to over $443,000! This strategic financial maneuver not only provided immediate relief by lowering monthly payments but also sets the stage for their long-term financial stability. The case study serves as a testament to the importance of evaluating and adjusting financial strategies in response to evolving economic conditions, empowering individuals to take control of their financial future.  In this very real scenario, it was our trusted financial adviser, senior lending officer, and hero of the story, Brian Dewald, that helped these folks using a blended rate approach to a much-improved financial standing.  Navigating consumer debt requires a creative and tailored approach, and we’re here to help you make informed decisions on your path to financial freedom through real estate. We want you to be able to write a beautiful story of your own. So, if you find yourself in a similar situation or want to explore your financial options through a mortgage …reach out! This is precisely why we’re here. To reach Brian Dewald: Maverick Lending President | Senior Loan Officer 303.908.3891 720.500.1880 brian@mavlend.com www.mavericklendingsolutions.com

Finding a mortgage lender is not difficult. Finding a decent one isn't terribly hard either, but are they great?  I can tell you from experience, you do not want to settle for any lender who isn't great at what they do. Financing is often responsible for the lion's share of headaches I've endured in real estate over the years. Your Options We understand and respect that you have options. There are the in-house lenders where you already do your banking, there are ones you’ve worked with in the past, online lenders, and the ones you hear about every time you turn on the radio.  We, too, have our lenders that we have relationships with. We have long relationships with our lenders. We’ve developed these relationships over the past decade plus, but rest assured, there’s nothing in it for us other than knowing you’re in good hands.  As realtors, our job is to see to it that we have your best interests are always in mind. So, when we recommend our lender, it’s because we know what they’re capable of. It's becuase we know that you won't be made to suffer from professional ineptitude and lack of accumen. The Lynchpin of a Financed Real Estate Transaction In our opinion, lending is the lynchpin of the real estate process.  By definition, a lynchpin is the fastener that keeps a wheel from sliding off an axle. With bad, or even mediocre, lenders involved, a real estate transaction can make the wheels come off really quickly. But with the right lender, one with whom we’ve worked before and one from whom we know what to expect, your already stressful big decision to buy a home is made simpler, easier, and less stressful--and that’s the goal. Allow us to suggest a few of the best loan officers we’ve come across and some of the reasons we think you should consider working with them.

Mortgage Bankers. Mortgage Bankers are lenders that are large enough to originate loans and create pools of loans, which are then sold directly to Fannie Mae, Freddie Mac, Ginnie Mae, jumbo loan investors, and others. Any company that does this is considered to be a mortgage banker. Some companies don’t sell directly to those major investors, but sell their loans to the mortgage bankers. They often refer to themselves as mortgage bankers as well. Since they are actually engaging in the selling of loans, there is some justification for using this label. The point is that you cannot reliably determine the size or strength of a particular lender based on whether or not they identify themselves as a mortgage banker. Portfolio Lenders. An institution that lends their own money and originates loans for itself is called a portfolio lender. This is because they are lending for their own portfolio of loans and not worried about being able to immediately sell them on the secondary market. Because of this, they don’t have to obey Fannie/Freddie guidelines and can create their own rules for determining credit worthiness. Usually these institutions are larger banks and savings & loans. Quite often only a portion of their loan programs are a portfolio product. If they are offering fixed rate loans or government loans, they are certainly engaging in mortgage banking as well as portfolio lending. Once a borrower has made the payments on a portfolio loan for over a year without any late payments, the loan is considered seasoned. Once a loan has a track history of timely payments it becomes marketable, even if it does not meet Freddie/Fannie guidelines. Selling these seasoned loans frees up more money for the portfolio lender to make additional loans. If they are sold, they are packaged into pools and sold on the secondary market. You will probably not even realize your loan is sold because, quite likely, you will still make your loan payments to the same lender, which has now become your servicer. Direct Lenders. Lenders are considered to be direct lenders if they fund their own loans. A direct lender can range anywhere from the biggest lender to a very tiny one. Banks and savings & loans obviously have deposits with which they can fund loans, but they usually use warehouse lines of credit for drawing the money to fund the loans. Smaller institutions also have warehouse lines of credit from which they draw money to fund loans. Direct lenders usually fit into the category of mortgage bankers or portfolio lenders, but not always. Correspondents. Correspondent is usually a term that refers to a company that originates and closes home loans in their own name, then sells them individually to a larger lender, called a sponsor. The sponsor acts as the mortgage banker, re-selling the loan to Ginnie Mae, Fannie Mae, or Freddie Mac as part of a pool. The correspondent may fund the loans themselves or funding may take place from the larger company. Either way, the sponsor usually underwrites the loan. It is almost like being a mortgage broker, except that there is usually a very strong relationship between the correspondent and their sponsor. Mortgage Brokers. Mortgage Brokers are companies that originate loans with the intention of brokering them to lending institutions. A broker has established relationships with these companies. Underwriting and funding takes place at the larger institutions. Many mortgage brokers are also correspondents. Mortgage brokers deal with lending institutions that have a wholesale loan department. Wholesale Lenders. Most mortgage bankers and portfolio lenders also act as wholesale lenders, catering to mortgage brokers for loan origination. Some wholesale lenders do not even have their own retail branches, relying solely on mortgage brokers for their loans. These wholesale divisions offer loans to mortgage brokers at a lower cost than their retail branches offer them to the general public. The mortgage broker then adds on his fee. The result for the borrower is that the loan costs about the same as if he obtained a loan directly from a retail branch of the wholesale lender. Banks and savings & loans usually operate as portfolio lenders, mortgage bankers, or some combination of both. Credit Unions usually seem to operate as correspondents, although a large one could act as a portfolio lender or a mortgage banker. May We Recommend Someone? Allow us to suggest a few of the best loan officers we’ve come across and some of the reasons we think you should consider working with them. We’ve developed these relationships over the past decade plus, but rest assured, there’s nothing in it for us other than knowing you’re in good hands. As realtors, our job is to see to it that we have your best interests are always in mind...so when we recommend our lender, it’s because we know what they’re capable of. Reach out and we will gladly send you our recommendations.

Have These Items Ready When You Apply For a Loan All lenders that I work with nowadays will have secure online portals where you can apply for a mortgage. In fact, if you're at that stage already, please let us know and we can recommend one of our stellar mortgage lender resources. It used to be that lenders mailed out verifications to employers, banks, mortgage companies, and so on, in order to verify the data supplied by borrowers. "Okay, Boomer. Why are you telling me grandpa stories?" Well, verifications are still mailed out, but usually as part of quality control procedures. Potential homebuyers can get pre-qualified with a lender within minutes, although it can take hours or a few days to get to the pre-approval stage. Because most people apply for loans now online, alternate documentation has become more widely used. Alternate documentation means that underwriting answers can be obtained with information supplied directly from the borrower instead of waiting around for verifications to come back in the mail. You'll still need to provide your lending institution with a not-so-short list of financial documents when you apply. To be prepared, a comprehensive list of required documents/items for most standardized loans as part of alternate documentation processing, is listed below. Items may differ according to whether your loan is a conforming (Fannie Mae or Freddie Mac), non-conforming (jumbo) loan, government loan, or a portfolio loan. If it's been a while since you last applied for a home loan, you may be in for a surpise. While lending companies won't ask for your blood, or your first born, it can feel like that at times. This is a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act, also known simply as Dodd-Frank. It is a comprehensive financial reform law passed by the United States Congress in 2010. The law was named after its two main sponsors, Senator Chris Dodd and Congressman Barney Frank. Dodd-Frank was enacted in response to the financial crisis of 2008, which was triggered by the collapse of the housing market and the failure of several large financial institutions. The law aimed to prevent a similar crisis from happening in the future by increasing transparency, accountability, and oversight in the financial industry. So if it feels like the lender is asking for a lot of information, it's because they are. Now you know why. But it's a good thing. Dodd-Frank, for all of its shortcomings, helped to stabilize the mortgage lending industry. And for you, the more information you provide, the easier it is for the lender to know how well-qualified you are to buy that house. So be prepared. Get these things ready to supply your lender in order to get a quick approval using alternate documentation: Income Items W2 forms for the last two years Pay stubs covering a 30 day period Federal tax returns (1040s) for the last two years, if: you are self-employed earn more than 25% of your income from commissions or bonuses own rental property or are in a career where you are likely to take non-reimbursed business expenses Year-to-Date Profit and Loss Statement (for self employed) Corporate or partnership tax returns (if applicable) Pension Award letter (for retired individuals) Social Security Award letters (for those on Social Security) Asset Items Bank statements for previous two months (sometimes three) on all accounts. All pages. Statements for two months on all stocks, mutual funds, bonds, etc. Copy of most recent 401K statement (or other retirement assets) Explanations for any large deposits and source of those funds Copy of HUD1 Settlement Statement on recent sales of homes Copy of Estimated HUD1 Settlement Statement if a previous home is for sale, but not yet closed Gift letter (if some of the funds come as a gift from a family member) Gifts can also require: Verification of donor’s ability to make the gift (bank statement) Copy of the check used to make the gift Copy of the deposit receipt showing the funds deposited into bank account or escrow Credit Items Landlord’s name, address, and phone number (for verification of rental) Explanations for any of the following items that may appear on your credit report: Late payments Credit inquiries in the last 90 days Charge-offs Collections Judgments Liens Copy of bankruptcy papers if you have filed bankruptcy within the last seven years Other Copy of purchase agreement (if you have already made an offer) To document receipt of child support (if you desire to show it as income) Copy of Divorce Settlement (to show the amount) Copies of twelve months canceled checks to document actual receipt of fund FHA Loans Copy of Social Security Card (or other documentation of social security number) Copy of Driver’s license VA Loans Copy of DD214 If You're Refinancing Copy of Note on existing loan Copy of HUD1 Settlement Statement on existing loan Name, address, phone number, loan number of existing loan/lender