Gerald Smiley's Real Estate Blog

  What You Should Know About Closing Costs Before you buy a home, it’s important to  plan ahead . While most buyers consider how much they need to save for a  down payment , many are surprised by the closing costs they have to pay. To ensure you aren’t caught off guard when it’s time to close on your home, you need to understand  what closing costs are and how much you should budget for . What Are Closing Costs? People are sometimes surprised by closing costs because they don’t know what they are. According to  Bankrate : “Closing costs are the fees and expenses you must pay before becoming the legal owner of a house, condo or townhome . . . Closing costs vary depending on the purchase price of the home and how it’s being financed . . .” In other words, your closing costs are a collection of fees and payments involved with your transaction. According to  Freddie Mac , while they can vary by location and situation, closing costs typically include: Government...

Why Today’s Housing Market Isn’t Headed for a Crash 67%  of Americans say a housing market crash is imminent in the next three years. With all the talk in the media lately about shifts in the housing market, it makes sense why so many people feel this way. But there’s good news. Current data shows  today’s market  is nothing like it was before the housing crash in 2008 . Back Then, Mortgage Standards Were Less Strict During the lead-up to the housing crisis, it was much easier to get a home loan than it is today. Banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance an existing one. As a result, lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices. Today, things are different, and purchasers face much higher standards from mortgage companies. The graph below uses...

  Experts Forecast a Turnaround in the Housing Market in 2023 The housing market has gone through a lot of change recently, and much of that was a result of how quickly  mortgage rates  rose last year. Now, as we move through 2023, there are signs things are finally going to turn around. Home  price appreciation  is slowing from the recent frenzy, mortgage rates are  coming down , inflation is easing, and overall market activity is starting to  pick up . All of that’s great news for the housing market this year. Here’s what experts are saying. Cristian deRitis, Deputy Chief Economist,  Moody’s Analytics : “The current state of the housing market is that  it is certainly in transition .” Susan Wachter, Professor of Real Estate and Finance,  University of Pennsylvania’s Wharton School : “Housing is going to ease up. I think  2023 will be a turnaround year .” Lawrence Yun, Chief Economist,  National Association of Realtors  (...

  The Top Reasons for Selling Your House Many of today’s homeowners bought or refinanced their homes during the pandemic when mortgage rates were at history-making lows. Since rates doubled in 2022, some of those homeowners put their plans to move on hold, not wanting to lose the low mortgage rate they have on their current house. And while today’s rates have started coming down from last year’s peak, they’re still higher than they were a couple of years ago. Today,  93%   of outstanding mortgages have a rate at or below 6%. That means a strong majority of homeowners with mortgages have a rate below what they’d get if they moved right now. But if you’re a homeowner in that position, remember that mortgage rates aren’t the only thing to consider when making a move. Your mortgage rate is important, but there are plenty of  reasons   you may still need or want to move.  RealTrends   explains: “Sellers who don’t have to move won’t be moving.  The most...