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Monthly Archives: December 2016

5 Mistakes You Can’t Afford to Make When Buying in the Winter

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Have you been thinking about buying a home in Bend during the winter? If so, you’re not alone. Buying a home during the winter is a great idea because you will face less competition from other home buyers but you should still make sure that you don’t make these 5 mistakes that are easy to make during the winter.

1. Landing yourself in holiday debt

Your kiddos are clamoring for a few Hatchimals, your wonderful husband deserves the Google Pixel, and Mom and Dad desperately need a new set of artisanal kitchen knives. But don’t rack up new debt buying everyone gifts.

Budget for your generous splurges ahead of time. Or you know what? Tell your family they’re getting the best gift of all: a new home.

2. Failing to use your imagination

Yes, the property looks a bit … drab. But don’t all homes seem sad in winter, especially if they’re not charmingly covered in snow? Don’t dismiss a property because of bare tree limbs and dead grass. Imagine what the home could be in all its springtime glory.

Pretend the trees are blooming and the rose bushes are covered in color. That’s the mental picture you should use to make your decision.

3. Ignoring possible closing date delays

Don’t assume everything will go as planned. This will go wrong, trust us. Does the plumbing need updating? Is the wiring a little funky? These delay-causing problems are always annoying, but in winter they can create a full-on migraine. This goes double for custom or new-build homes.

“While many trades will work through the winter, there are certain processes that cannot be completed during heavy snowfall or dramatically low temperatures,” says Luke Sahlani, the lead project manager and director of Sensus Design & Build. “This can be frustrating and particularly problematic if the home buyers’ closing date on their current home is coming up quickly.”

Build in some buffer time for your new home’s closing—or just a little snow might crash your move-in day hopes.

4. Lacking flexibility

House hunting always requires a certain level of spontaneity—you have to be ready to pounce as soon as you hear a place fitting all your criteria is on the market. But when the weather’s against you, make sure to loosen your schedule even more.

Flexibility “is even more critical during the winter season,” Brison says. “Weather can cause unexpected delays, and buyers need to be willing to plan viewings during the busy holidays.”

Yes, you’re excited for cousin Humbert’s one-of-a-kind pumpkin pie, but if 2 p.m. the day after Christmas is the only time you can check out your dream abode, you might have to skip a second serving.

5. Assuming you’ll automatically score a sweet deal

In the winter (generally speaking), home prices are lower. Sellers are motivated. The competition’s bundled up inside, warming their hands by the fire. Bidding wars are a vestige of the summer months. Now’s a great time to buy, right?

Unfortunately, the math doesn’t necessarily work in your favor.

“A lot of buyers assume they can get a better deal in winter because [fewer] people are competing,” Brison says. “That’s not usually the case. Inventory is lower, so the number of people who are competing is similar.”

No, prices may not rocket to the sky-high levels seen when the weather is warm. But if you expect to score a bargain-basement home deal, you might be disappointed.

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To get started with searching for homes in Bend contact the Deb Tebbs Group today by calling us at (541) 323-4823 or click here to connect with us online. 

 

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Fed Rate Hike? Whatever, Mortgage Rates Are Already Up

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The surge in mortgage rates since the November election is expected to offset the increase to lenders’ short-term funding costs following the Federal Open Markets Committee’s 25-basis-point increase to the federal funds rate Wednesday.

The federal funds rate doesn’t directly affect the interest rates that borrowers pay on home loans, as mortgage rates are benchmarked against longer-term 10-year Treasury yields. But depository and nonbank lenders are both expected to see their short-term funding costs go up, albeit in different ways.

“Anything that’s a warehouse line or something like that is going to go up in price,” said Brent Nyitray, director of capital markets at iServe Residential Lending in Stamford, Conn.

For banks, the fed rate influences their cost of funds for the deposits they use to fund mortgage originations. Likewise, the warehouse lines of credit that independent nonbanks use to fund their pipelines until loans can be sold to end investors are pegged to the London Interbank Offered Rate or the prime rate, which are influenced by the fed funds rate.

But the increase in that short-term rate isn’t so much a concern as long as it’s offset by a rise in the long-term rates most mortgages have. The average interest rate on 30-year mortgages has gone up nearly 60 basis points since the week before the election.

The rise in mortgage rates is enough to offset the increase in short-term rates, plus warehouse lines are not a big cost for mortgage lenders, said Charles Clark, director of mortgage warehouse finance at EverBank.

“I don’t think there’s going to be a big effect on mortgage bankers at all. You’re moving the goal posts, essentially,” he said.

But if the curve between long- and short-term rates or yields were to flatten, lenders would feel their margins slightly pinched by higher funding costs.

“It would really hurt everybody if the curve flattened because the cost of funding would go up relative to the note rate on the loan,” said Tom Millon, president and CEO of the Capital Markets Cooperative, a subsidiary of Computershare.

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Search For Homes In Bend Oregon

To get started with searching for homes in Bend Oregon contact the Deb Tebbs Group today by calling us at (541) 323-4823 or click here to connect with us online

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