Selling to Millennials: Three High-Tech Upgrades That Will Increase Your Home's Appeal to Young Buyers

Millennials are finally starting to enter the real estate market after delaying home purchases for several years. With a completely new client base looking for homes, it is time to start making your home more appealing to these young buyers.

Millennials are used to using high-tech gadgets every day, so they are going to desire these things in their new home. While there are several high-tech upgrades you can make on your home, these three will appeal the most to young homebuyers.

Keyless Entry: Security for the New Millennium

Keyless entry doors are becoming a popular way of keeping a home secure while adding that great "wow" factor. These keyless entry systems mean there'll be no more fumbling for keys when all you want to do is get in the door. It may seem like something out of a sci-fi film, but several companies have mastered the art of keyless entry doors that you can use in your home today.

The door automatically locks when it is shut, and you will need the correct fingerprint to unlock the door. If you could show off a keyless entry system at your open house, you would immediately pique the interest of every young buyer interested in technology.

A Home Security System is a Great Practical Addition

A high-tech home security system will certainly make your home more appealing to young buyers, who may even be thinking about having children in the near future. No matter how safe your neighborhood is, everyone is always looking to feel more secure at home. Placing a few security cameras around the exterior of your home will allow you to know what is happening outside at all times, and buyers will love having that peace of mind.

Home Energy Monitor: For the Eco-Conscious Generation

Young people are extremely conscious of the environment, so they would love seeing a home energy monitor when shopping for a new home. A home energy monitor is able to track the energy use of every aspect of your home.

If you think your air conditioner is not running efficiently, a home energy monitor can tell you whether or not you're right. Since young people know about the dangers of improper energy use, they will want to make the home as efficient as possible.

Millennials are slowly entering the real estate market, and although they are starting to look at homes, you'll face a lot of competition from other homeowners looking to pass properties onto this new generation. These three upgrades will increase your home's value and make it more appealing to Millennial buyers.

What's Ahead For Mortgage Rates This Week - Sept 29, 2014

Last week's economic news included several housing-related reports that provided mixed results with lower than expected sales of previously owned homes and higher than expected sales of new homes. The FHFA also released its House Price report for July, which noted that year-over-year home prices were lower than year-over-year prices reported in June. Here's a look at the details:

Existing Home Sales Lower, New Home Sales Higher

The National Association of REALTORS® reported August sales of existing home sales fell to 5.05 million previously owned homes sold. This was lower than the expected reading of 5.20 million existing homes sold and July's revised reading of 5.14 million previously owned homes sold on a seasonally adjusted annual basis. The consensus figure was based on the original reading of 5.15 million homes sold in July. While the sales pace of existing homes has slowed in recent months, August's reading marked the first time in five months that sales fell below the previous month's reading.

Analysts cited consumer concerns over sluggish labor markets as a deterrent to home sales, and also said that tighter mortgage credit standards are making it tough for first-time home buyers to purchase homes. 

New home sales were higher in August according to the Department of Commerce. 504,000 new homes were sold and surpassed expected sales of 426,000 new homes and July's reading of 427,000 new homes sold. This surge propelled new home sales to their highest level since May 2008, and surpassed expectations of 426,000 new homes sold. The original reading for July was 412,000 new homes sold on a seasonally adjusted annual basis, but the Department of Commerce later adjusted July's reading to 427,000 new homes sold during July. Month-to-month readings for new home sales are notoriously volatile, and many analysts prefer to consider a rolling average of several months' new home sales data.

FHFA: Home Prices Rise in August, Regional Home Prices Higher Year-Over-Year

FHFA (Federal Housing Finance Agency), which oversees Fannie Mae and Freddie Mac, reported that prices of homes connected with Fannie Mae and Freddie Mac mortgages grew by 0.10 percent in July; this was lower than the 0.30 percent growth in home prices reported in June. FHFA also said that prices of homes were up by 4.04 percent year over year; this again represented a slower pace in home price growth. This was the eighth consecutive monthly gain for FHFA home prices, but U.S. home prices remain approximately 6.40 percent below their peak in 2007.

Year-over-year home prices rose in all nine census divisions according to FHFA. While regional home prices ranged from -0.50 to +0.40 percent from June to July, FHFA reported that year-over-year home prices grew in all nine regions and varied between +1.60 percent in the Mid-Atlantic region to 7.20 percent in the Pacific region.

Mortgage Rates Mixed

Freddie Mac reported mixed readings for average mortgage rates last week. The average rate for a 30-year fixed rate mortgage dropped three basis points to 4.20 percent. 15 year mortgage rates averaged 3.36 percent, one basis point lower than the prior week's reading. The average rate for a 5/1 adjustable rate mortgage was two basis points higher at 3.08. Discount points remained steady at 0.50 percent for fixed rate mortgages, but dropped to 0.40 percent for 5/1 adjustable rate mortgages.

Jobless Claims Rise, Consumer Sentiment Holds Steady

The Bureau of Labor Statistics reported that new jobless claims rose to 293,000 from the prior week's reading of 281,000 new jobless claims filed. The latest jobless claims reading was lower than expectations of 300,000 new jobless claims filed. Last week's economic reports were rounded out by the Consumer Sentiment Index, which held steady in September with a reading of 84.6. This reading was identical to July's reading and higher than the expected reading of 84.3.

What's Ahead

Next week's economic news wil include the Case-Shiller Home Price Indices for July and Construction Spending for August.

Five Small Signs That Can Indicate Much Bigger Problems with a Home

It's not uncommon for homebuyers to recount horror stories about properties that appeared to be fine at first glance, but were actually hiding very expensive problems. If you fail to do your due diligence, you might find your dream house turning into a nightmare. The next time you walk through a house, pay attention for these five signs that the property might be hiding a unfortounate secret or two.

Mold, Water Spots and Water Damage

Older and newer homes alike may develop a leaky pipe or another similar plumbing issue from time to time, but any type of water issue can result in mold growth inside the walls. Water spots and warped wood indicate that the property has had a water issue in the past, and this means that the property should be more thoroughly inspected for mold growth before you make a purchase.

Doors and Windows That Stick

One of the most common signs of a foundation issue is doors and windows that stick or that are difficult to open and close. As you walk through the home, open and close the doors at leisure to identify if they are not in the frame properly. The issue should be reviewed by a structural home inspector or foundation contractor.

Small Cracks in the Walls

Some cracks in both interior and exterior walls can indicate that the home's foundation has shifted and is no longer flat and level. Significant issues may be indicated by molding or door frames that appear to have shifted after installation.

Fresh Paint on a Small Area of the Wall

Many property sellers will apply fresh paint to walls before listing a home for sale, and this is not necessarily a sign of damage to the home. However, when fresh paint is applied on one area of the wall alone, this may be a sign that the homeowner is attempting to conceal water damage or other related issues with the property. Further inspection of the property is in order.

Floors That Slant

Any time a floor slants to a level that you feel as though you are walking up or down across the home, this is a significant indicator that the foundation has shifted. Foundation issues result in the movement of the foundation that the entire home rests on, and this can result in an uneven feeling when you walk across the floor. If you notice that the floors in a property slant, you should schedule an inspection of the foundation.

Understanding Title Insurance and How It Impacts Your Mortgage Loan

When you buy a home, you will be given a title to your new property. A title is a legal document that proves you own the property, and in most cases the title excludes other parties from making an ownership claim.

However, not all titles give you free and clear ownership of the property. Title insurance protects you and your lender from title disputes and other ownership issues that may arise. Here are just a few ways that title insurance can impact your mortgage.

How Title Insurance Protects A Lender

There are certain situations in which someone might put a lien on your property. New owners might see liens if the previous owner failed to pay the mortgage, if a contractor did work without the new owner's consent or if the previous owner owes unpaid property taxes.

If these liens were not disclosed prior to the sale, a buyer could face a situation where a third party is making a claim to the property. Should the title by voided in court, the insurance policy would repay the lender the outstanding balance on the mortgage. The policy is valid until the mortgage loan is paid off.

When a homeowner refinances, it may be necessary to purchase a new title loan policy, as the new loan will technically pay off the old loan.

How Title Insurance Protects A Buyer

Title loan policies do not just protect the lender. In many cases, the lender will require the buyer's title insurance to include an owner policy. This policy confirms that the buyer owns the title and that the title is free from defects.

The policy is in effect for as long as the buyer or his or her descendants own the house. Should a homeowner have his or her title challenged, the policy will cover all losses up to the amount of the original purchase price of the home.

How Much Does Title Insurance Cost?

The cost of title insurance can vary between locations. Sometimes, the purchase contract will stipulate that the seller is responsible for buying title insurance.

If this is the case, the buyer may pay nothing. However, it is common to pay on a sliding scale. Title insurance is usually a few hundred dollars for houses selling for under $500,000.

Title insurance is a great way to protect your investment in your home. It insures you against ownership disputes and liens, which means your house is truly yours. For more information about title insurance, contact a qualified mortgage professional in your area.

National Association of Realtors, Existing Home Sales Slip in August

Sales of previously owned homes fell in August according to the National Association of REALTORS®. This was the first decline in sales in five months. Although not welcome news to homeowners and real estate pros, there is good news. Lawrence Yun, chief economist for the National Association of REALTORS®, as first-time buyers and moderate income families may now have an opportunity to find and buy affordable homes.

Bidding wars and slim inventories of available homes made buying a home difficult for many prospective buyers in recent months, but Mr. Yun said that these obstacles have subsided in many markets. Other obstacles contributing to a slowdown in housing markets are labor markets, which have shown some improvement, and stringent mortgage credit requirements that became effective in January.

Analysts had expected an annual sales rate of 5.20 million existing homes in August against July's original reading of 5.15 million sales, which was later adjusted to 5.14 million sales of existing homes. August's reading was 5.05 million previously owned homes sold.

FHFA Home Sales Show Fractional Gain in July

FHFA, the Federal Housing Finance Agency, reported that July sales of homes connected with Fannie Mae and Freddie Mac owned mortgages rose by a tenth of a percent in July on a seasonally-adjusted basis. On a year-over-year basis, home prices were 4.40 percent higher than in July 2013. It's important to bear in mind that FHFA reports a month behind the readings reported for existing home sales in August. Another thing to consider is that FHFA readings are based on properties connected with mortgages owned or guaranteed by Fannie Mae and Freddie Mac.

First-Time Buyers Missing in Action

Falling home prices and sales volume may be due in part to a vortex of challenges facing first-time home buyers. The census bureau reports that homeownership rates have dropped for the 25-29 age groups; about 40.6 percent owned homes in 2007 as compared to 34.1 percent in 2013. The national unemployment rate for millennials is higher at approximately 9.00 percent as compared to the national unemployment rate for all workers at about 6.00 percent. Stricter mortgage rules and long-term under-employment are also impacting first-time buyers' ability to purchase homes. The inability of would-be first-time buyers to buy homes can impact buyers and sellers at all levels of local housing markets as most sellers rely on selling their existing home to fund down payments and closing costs for their next homes.

Turned Down for a Mortgage? What to Do if You are Declined - and How to Get Second Opinion

If you have been declined for a mortgage, you may think that buying that new home is out of reach. However, there are ways to turn a rejection into an approval and to find a more accessible loan. Here are just a few steps you can take to learn about your loan options and get the mortgage that works for you.

Find Out Why The Mortgage Application Was Denied

The first step to getting a second opinion is to find out why your mortgage application was denied. Banks commonly deny mortgages for reasons like a low credit score, a high debt-to-income ratio, or concerns about the applicant's past and present employment status.

To qualify for a mortgage, most lenders want to see someone with a credit score of 640, a debt-to-income ratio of less than 43 percent after the mortgage is included and at least 30 days in your current position if using wage income to qualify for the loan.

Not All Lenders View An Application The Same Way

A good reason why it is worthwhile to ask for a second opinion about your ability to get a loan is because no two lenders will view an application the same way. For one lender, a credit score of 650 is insufficient for getting a loan - but another lender might be more than happy to offer you a mortgage with a score of 650. To get a second opinion, you may wish to talk to a mortgage broker who will be able to scan a variety of loan programs to find one that works for you.

There Are Ways To Find Down Payment And Closing Cost Assistance

Those who have a low credit score or other questionable metrics may be able to qualify for a loan by offering a larger down payment. While a first-time buyer may not have the cash on hand to make a larger payment, there may be programs that provide grants or low-interest loans that can be used as part of your down payment or to help pay closing costs. With this extra money, it may be possible to overcome lender objections and obtain a mortgage.

If your mortgage application has been rejected, it doesn't mean that you can't get a mortgage from another lender. If you're ready to buy a house but just need to clear the mortgage approval hurdle, there are ways to get a leg up.

What's Ahead For Mortgage Rates This Week - Sept 22, 2014

Last week's economic news largely concerned the Federal Reserve's FOMC meeting statement and a post-meeting conference given by Fed Chair Janet Yellen. The FOMC statement indicated that the Fed continued its wind-down of Treasury and mortgage-backed securities and that its purchases are expected to cease after the next FOMC meeting.

The FOMC statement said that committee members find the economy to be improving at a moderate pace and currently strong enough to further reduce the QE3 monthly asset purchases. The Fed seeks to achieve and sustain its dual mandate of maximum employment and an inflation rate of 2.00 percent. While the unemployment rate is lower than the Fed's benchmark of 6.50 percent, FOMC members cited concerns that the labor force is underutilized and that labor markets, while recovering, could use further improvement. The Fed repeated its customary statement that the Fed's monetary policies are not on a pre-determined course, and that FOMC members continually review and interpret developing financial and economic news as part of their decision-making process.

Chair Yellen explained during her press conference that it is not possible to provide a specific date when the Fed will change its target federal funds rate. Economists and media analysts expressed concerns that raising the target federal funds rate, which is currently at 0.00 to 0.250 percent, could cause overall interest rates to rise. Chair Yellen said that she expects the current target federal funds rate to remain for a “considerable time” after the QE asset purchases cease. She also said that it is impossible to provide a specific date when the Fed will change its target federal funds rate and cited multiple influences considered by FOMC when changing monetary policy.

Home Builder Confidence Grows, Housing Starts Fall

The National Association of Home Builders Housing Market Index rose by three points in September for a reading of 59. Analysts had predicted an index reading of 56 against August's reading of 55. September's reading was the third consecutive reading above 50. Stronger labor markets were cited as supporting the higher reading, but builders were also concerned by tight mortgage credit standards. Any reading above 50 indicates that more builders perceive market conditions for new homes as positive as those that do not.

August's housing starts were inconsistent with the Home Builders Index; according to the Department of Commerce, construction of new homes fell by 14.4 percent from July's reading to 956,000. Analysts expected 1.03 million starts against July's reading of 1.12 million homes started.

Mortgage Rates Rise, Weekly Jobless Claims Fall

Freddie Mac reported higher mortgage rates last week. Average mortgage rates rose across the board with the rate for a 30-year fixed rate mortgage 11 basis points higher at 4.23 percent. The rate for a 15-year mortgage also rose by 11 basis points to 3.37 percent and the rate for a 5/1 adjustable rate mortgage rose from 2.99 to 3.06 percent. Average discount points were unchanged for all mortgage types at 0.50 percent.

New weekly jobless claims dropped to 280,000 against an expected reading of 305,000 and the prior week's adjusted reading of 316,000 new jobless claims. The original reading for the prior week was 315,000 new jobless claims. The less volatile four-week average of new jobless claim fell by 4,750 new claims to a reading of 299,500 new claims.

What's Ahead

This week's scheduled economic news brings multiple housing-related reports. The National Association of REALTORS® will release its Existing Home Sales report for August. Case-Shiller's monthly Housing Market Index report and the FHFA's Home Value report will bring new light to national market trends. The Department of Commerce will release its New Home Sales report, and as usual, Freddie Mac's weekly report on mortgage rates will come out on Thursday.