Difference between a conforming loan and a non-conforming in real estate? from your local Huntington county realtor

What is the difference

between a conforming and non-conforming loan?

The big difference is the borrowing limit, although other factors come into play.  Most everyone who gets a mortgage has a conforming loan. 

Conforming loans

Limits: Conforming loans are generally limited to $417,000, although there are higher limits in areas where housing is very expensive. The conforming loan limit  can go up to $625,000 in housing markets, such as certain counties in California, New York, Massachusetts, and Washington, D.C., among others.

Loan-to-value ratio: Your down payment has to be equal to 20 percent or more of the home’s value, but first-time buyers can qualify for a conforming loan through Fannie Mae with as little as 3 percent down. Your mortgage lender helps with the required forms and analysis of what you qualify to buy.

Credit score: A conforming loan requires a FICO credit score of 620 or better. However, there are other government-insured mortgages (such as FHA loans) for lower credit scores.

Debt-to-income ratio: Your debt-to-income ratio can be no more than 36 percent (although some exceptions raise this to 45 percent) of your gross income.

Non-conforming loans

Sometimes people can't qualify for a conforming loan. They might need a non-conforming Jumbo loan to buy a property that costs more than the loan limit . Or they might have problem credit, such as a low credit score from bankruptcies. Self-employed people might not be able to document their income. 

In the case of credit or income documentation, some lenders might still make a loan, but the interest rates and down payments will be higher.

Such loans often require payment of large fees up front, and there could be expensive insurance requirements. 

Out with the OLD and in with the NEW...2017, from your local Huntington county realtor, Andy Eckert

Out with OLD and in with the NEW…….2017

I hope your 2016 was a healthy, happy and prosperous year for all of you. I also hope you spent a lot of time enjoying Mother Nature and your family and friends. I want you all to make 1 New Year resolution and that’s to plan 1 trip away from home and enjoy yourselves. The length of this trip doesn’t matter but the quality does. Go do something you really want to do or try something you have always thought about trying, life is too short for wishing for things to happen. Take a chance……..

My goal for 2017 is to watch my Son Sebastian graduate from college and find a good job in his field. I also look forward to seeing Aleah finish her Freshman year of High School with as little drama as possible. Olivia is my biggest challenge for her to find her place in the working world and start really living instead of just surviving. I also hope for Steph and I to take our health more seriously and get more active in our downtime. I weigh 240 lbs and I should be around 190lbs to feel good again, my hope is to slowly start the shaping up and firming up process. I remember talking with my old wrestling coach when I was 21 and hearing him say how hard it was to stay healthy when you get older, I said heck I’ll never weigh more than 200 lbs. he just smiled and said good luck. Well I showed him………NOT

I didn’t realize how much effect your health has on your day to day happiness and how much harder life is when tying your shoes causes a loss of oxygen and the threat of passing out. My wife has consistently shrinks my clothes because my pants and shirts are always getting tighter, she seems to keep my socks the same size.

In every page we turn in life some chapters end and some begin, I hope the chapters you ended in 2016 gained you wisdom and the chapters you’re starting in 2017 give you motivation.  For all the people that have passed this year my prayers are with you and your families. I want to offer up prayers for all of you that are struggling and fighting your own battles, may you win and kick ass doing it.

Merry Christmas and Happy New Year!!!!!!!!!!!!!!!

Real Estate 2017 - more homes, drones and stable interest rates, from your local Huntington County Realtor

The 2017 real estate market has some surprises in store as buying and selling might go high tech, and the mortgage market remains stable.

Here are some of the predictions by market experts for the new year.

Drones

Daniel Goldstein, writing for Market Watch,  expects real estate buying and selling to go high tech as drones become a feature of the selling process.

Drones aren't just for kids; they are for home buyers and sellers, too. It's a new way to inspect and show off a house for sale.

The Federal Aviation Administration has cleared the way for expanded use of drones by regular people who just want a view from the sky.

That means you could get a small drone and offer a sky view of your property or neighborhood. In fact, drone views are predicted to be the next thing in home selling.

Meanwhile, commercial drone pilots want to offer a view from the sky of expensive real estate, but FAA regulations have made much drone work illegal. Now, the FAA has lightened some requirement, especially one that required drone pilots to have a manned pilot license. New regulations allow commercial drone pilots to pass an unmanned  aircraft operator test.

According to MarketWatch, the use of drones in real estate now resides in the hands of homeowners and real estate agents who can legally offer sight-line aerial views of properties.

More homes to buy

For all of 2016, the real estate market favored sellers as low supply raised prices slightly.

During the next year, buyers should have more choices for homes.

An early indicator is an 8 percent rise in new homes completed and ready for sale in October 2016.

Most analysts see a brisk year for home building. This should make buyers happy since they will have more homes to choose from and prices should nudge down slightly.

Mortgage rates

One can't really say mortgage rates are inching up. That would be an overstatement. But rates are higher, as every analyst predicted. Even so, rates remain a fantastic deal and are historically low.

According to Bankrate, the 30-year fixed rate mortgage rose in December 2016 to 4.13 percent from 4.1 percent.

Bankrate's survey found: At the current 30-year fixed rate, you'll pay $484.94 for every $100,000 you borrow, up from $483.20 earlier in December 2016.

I am 50 years old and loving it, your local Huntington County Realtor Andy Eckert

I am 50 years old as of Oct 21st 2016

The first 10 years of my life consisted of being born and having life saving surgery a few months later (obstructed bowel). When I was a toddler I wandered off and was mauled by a neighbors dog and underwent reconstructive surgery on my nose and lip area which is why I have such animal attraction. The rest of the decade was pretty much made up of playing, school and burning stuff behind the garage.

The next 10 years consisted of me playing sports, learning about the outdoors and having the best childhood I could hope for. I started playing sports in the back yards of friends and on Yancy street mastering Tenny Ball and football by the age of 12. We played 21 next door at Bill and Ann Lightners for hours or until Bill told us to hit the road. I was introduced to wrestling by my Uncle Jack and his sons Pete and Dave. That took the athlete in me to a whole other direction and put me on a track to big things. I excelled at sports no matter what it was and at the time felt that was all I had to look forward to as I wasn’t a good student or a diligent worker. That’s about the time God stepped in and woke me when I had my diving accident and all plans changed. I finished that decade graduating HS with a love of reading and a desire to work with others.

When I entered my 20s I was still feeling the after effects of my neck injury so sports for me became golf and chasing girls, I never became the golfer I wanted to be, but I did manage to catch my girl. I spent my early 20s working, golfing, hunting and growing up. I always stayed close to my family and friends which I still do today. When born an Eckert you have 2 choices, to be social or to move. Halfway through my 20s I got married and started a family which accelerated my growing up phase. The rest of my 20s is a blur.

My 30s is where I started getting to understand my place in life as a Father, Husband, Brother, Son and Friend but mostly a Christian. I experienced the growth of my children and the loss of my job due to recessions and another near death experience. Dealing with the job loss was the hardest but the other 2 were a close 2nd. Steph helped me trudge along and showed me that there was hope and to keep working hard which paid off.

My 40s brought me into the Real Estate business full time and an entire different approach to life. I found myself having to be my own boss which was a challenge but also allowed for me to share myself and time with others in a bigger way. I found moving my kids to college was the biggest accomplishment of my life and seeing them grow into independent pain in the butts was rewarding and scary.

I now find myself starting a new decade wishing I would have taken better care of myself but ready to see this thing through to the end. The best Birthday gift I received was a letter from one of my best friends, Lisa Fortini reminding me how valuable a good friend is no matter how far away they live or how often we see each other or talk.

I do feel blessed with my LIFE and all of YOU!!!!!!!

Buying your first house? ask the expert, Andy Eckert, Huntington County Realtor

Ask the Expert

Q I’m buying my first house.  I am pretty sure I can spend $150,000 for my house because I did some calculations online. Problem is, lenders won't give me a firm quote until I buy something. What gives?

A   Online calculators can be excellent tools, but remember there are many costs associated with buying a house. One of those is the tax rate in the area you buy. You won't know that until you pick a property. You also will have to buy Private Mortgage Insurance if you put less than 20 percent down. PMI can change your monthly mortgage payment significantly. 

    No lender can give you an estimate until you have an address of the property you hope to buy. An address is required for the Loan Estimate, a three-page disclosure document.

    Start your home search by getting pre-approved for a loan. Go to a lender and give basic information about your finances. The lender will pull a credit report and discuss your income and debt. You should have no more than 43 percent debt to income. Usually, 36 percent is preferred.

    Once pre-approved you can get an agent and shop for your home. When you do find the property you want to buy, you can apply for a mortgage by going to different lenders and getting a Loan Estimate from each. The Loan Estimate, which has to be issued within three days after you apply, will give you detailed information about the loan, including the loan amount, interest rate, monthly payments and whether these can change.

    The Loan Estimate will also tell you the amount of cash you need to close and the estimated costs to close.

    It will list fees for things you can't shop for (appraisals, for instance) and things you can shop for (pest inspection, for example).

I am Catholic and proud to say that, as your Huntington County Realtor Andy Eckert

I am a Catholic and I’m proud to say that, why?

             Because a life without a belief system is a life wasted. There is so much to gain to have FAITH, and so much to lose, to not. I was born and raised in the Catholic faith and that means I went to church more than most, because we have a ridiculous amount of Days of Obligation to attend. When I attended Catholic school I think we had mass every Monday, Wednesday, and Friday throughout the school year. We also attended mass on every Sunday as a family. During Lent we went to Church to pray the stations of the cross every Friday at the end of the school day.

What does this mean?

It means that even though I did all these events I was still a bad boy most of the time, but I believed if I was heart fully sorry for what I did than I was forgiven by God. If that was all I learned through all my mass attendance and school teachings, then I had learned enough to get me to Heaven. The hardest thing to do in life is forgive yourself for all the stupid choices we make and then ask forgiveness for those choices from God. I believe   anyone who believes in God and also thinks that they can be forgiven for their sins are my Brothers and Sisters in Christ no matter what church they attend.

This month’s News Letter is dedicated to all those that helped me along the way with advice, a good example to follow, and love. I have had 3 Parish Priests since I was baptized as a baby. Fr Gollner, Fr Perry and Fr Ron who have helped shape me into the person I am today. I was also lucky enough to have met, at the time I was in middle school, a Brother Mike. Brother Mike eventually became Fr Mike and moved back to his home state of  Wisconsin. Fr Mike and I are good friends and see each other 1-2 times a year. I found a good friend and trusted advisor in Fr Mike and Fr Ron over the years, not as a person judging me but someone who understands what my potential was. I’m thankful for their guidance and friendship and I hope I live up to their expectations of me. I suppose if they don’t see me in  Heaven then they dropped the ball, but if I don’t see them then maybe they should have been asking me for guidance…..haha

Andy Eckert, your Huntington County Realtor

Home Inspectors Save Stress and Lower Prices from your local Huntington County Realtor, Andy Eckert

HOME INSPECTORS ACTUALLY SAVE STRESS, EVEN LOWER PRICES

For buyers and sellers, having a professional house inspection can ensure a happy sale.

For the buyer, the inspection is an obvious contingency. Buyers don't want expensive surprises after sale. A home inspection reveals the systemic condition of the home, not just whether the paint is new.

Inspectors take a close look at the home's inner health in 10 areas: interior and exterior, structure, roofing, plumbing, electrical, heating, air conditioning, and ventilation, and fireplaces. Theses evaluations are detailed. For example, in the case of roofs, inspectors will study shingles, flashings, roof drainage, skylights and chimneys.

Of course, even a house with some problems can sell, but the price will reflect needed repairs. That's where the seller's inspection comes in.

A seller is just as motivated as the buyer to know what is wrong with a house because necessary, but unfinished, repairs mean a lower price at sale, or even a deal that falls through. A home inspection gives sellers the chance to fix things before the house goes on the market and it is an important part of the clean-up, fix-up process.

You might not want to put on a new roof, but repairing the flashings and roof gutters, puts your house in a solid light. Buyers might not expect a new roof, but they don't want to find leaks. There are a variety of specific things that a home inspection can look for, depending on an individual's concerns. For example, a radon inspection checks a home for levels of radioactive gas and takes between two and seven days to complete. A termite inspection looks for damage to the wood structures of a home. With homes that have a well for water, well water testing is another option; for homes with a septic or oil tank, examination of those structures may be part of an inspection as well.

A general inspection should consider the condition of the roof, the water pressure and plumbing, electrical outlets and switches, and the crawl space and attic.

Finally, if you have a home inspection, find a place to sit down and relax. Don't follow the inspector around. After all, the inspector is working for you and the report will be for you only.