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Your Guide to Embarking on a Successful Real Estate Investment Journey

08 Tuesday Aug 2023

Posted by rozalynf in Uncategorized

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Introduction:

Investing in real estate has long been regarded as a lucrative venture, offering potential for substantial returns and long-term wealth accumulation. While the idea of stepping into the world of real estate might seem daunting, with the right knowledge and approach, anyone can become a successful real estate investor. Your guide to embarking on a successful real estate investment journey, we’ll walk you through the essential steps to kickstart your real estate investment.

1. Educate Yourself:

Before diving into the realm of real estate investing, it’s crucial to arm yourself with knowledge. Read books, attend seminars, and follow reputable real estate blogs and forums to grasp the fundamentals of the market, different investment strategies, and potential risks. Get your free Real Estate Investment Guide Today!

2. Define Your Investment Goals:

Are you looking for short-term gains through property flipping, or do you seek long-term passive income from rental properties? Defining your investment goals will help you choose the right strategy and make informed decisions.

3. Set a Realistic Budget:

Determine your budget by evaluating your finances, including savings, potential loans, and investment partners if applicable. A clear budget will guide your property search and prevent you from overspending.

4. Research Markets and Locations:

Conduct thorough research on various real estate markets and locations. Consider factors such as job growth, infrastructure development, and amenities in the area. A promising location can significantly impact the potential appreciation of your investment.

5. Financing Options:

Explore different financing options, such as traditional mortgages, hard money loans, or private financing. Choose the option that aligns with your budget and investment strategy.

6. Start Small:

For beginners, it’s advisable to start with a smaller investment property. This reduces the initial financial commitment and allows you to gain valuable experience without taking on excessive risk.

7. Network and Build Relationships:

Connect with local real estate professionals, agents, investors, and mentors. Networking can provide insights into the market, potential deals, and valuable advice from experienced investors.

8. Conduct Due Diligence:

Thoroughly inspect properties before making a purchase. Evaluate the condition of the property, the neighborhood, potential repair costs, and future resale or rental potential.

9. Analyze Potential Returns:

Calculate potential returns based on rental income, property appreciation, and operating expenses. Make sure your investment aligns with your financial goals and expected returns.

10. Develop an Exit Strategy:

Always have an exit strategy in mind, whether it’s selling the property, refinancing, or holding onto it for the long term. Flexibility and adaptability are key in the dynamic world of real estate.

Conclusion:

Embarking on a real estate investment journey requires dedication, research, and careful planning. By educating yourself, setting clear goals, and following a systematic approach, you can navigate the complexities of the real estate market and work towards building a profitable investment portfolio. Remember, patience and persistence are essential virtues in this rewarding venture.

Are you ready to take the first step towards becoming a real estate investor?

Follow our guide, and you’ll be well on your way to making informed and successful investment decisions.

#RealEstateInvesting101, #PropertyInvestmentTips, #InvestWisely, #RMFRealtyTeam,

Share this valuable information with others interested in starting their real estate investment journey.

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Overcoming Housing Challenges for People with Disabilities

05 Friday May 2023

Posted by rozalynf in Uncategorized

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Finding a home that meets their needs can be a daunting task for people with disabilities. The search for an accessible and affordable home can be challenging, and sometimes frustrating. People with disabilities face unique challenges when it comes to housing, including accessibility, affordability, and discrimination.

Accessibility is one of the biggest challenges that people with disabilities face when searching for a home. Many homes are not designed with accessibility in mind, making it difficult for people with mobility issues to move around comfortably. Accessible features such as ramps, wide doorways, grab bars, and accessible bathroom facilities are often missing in many homes. Lack of accessibility can limit the freedom of people with disabilities, making it difficult for them to perform daily activities.

Affordability is another significant challenge for people with disabilities when searching for a home. People with disabilities often have limited financial resources due to their medical expenses, which can make it difficult to afford the high cost of accessible housing. Many people with disabilities are also unemployed or underemployed, which further limits their financial resources. This can make it challenging for them to find affordable housing that meets their needs.

Discrimination is another significant challenge that people with disabilities face when searching for a home. Some landlords and property owners may discriminate against people with disabilities and refuse to rent to them. This discrimination can be blatant or subtle, such as not making reasonable accommodations for disabilities or charging higher rent to people with disabilities. This can make it difficult for people with disabilities to find suitable housing.

In addition to these challenges, people with disabilities may also face difficulties in finding inclusive communities where they can feel welcomed and valued. The lack of inclusive communities can make it difficult for people with disabilities to participate in community activities, access healthcare services, and other essential services.

Despite these challenges, there are ways to overcome them. One way is to work with a real estate agent who specializes in accessible housing and has experience working with people with disabilities. They can help people with disabilities find homes that meet their accessibility needs and budget.

Another way to overcome housing challenges for people with disabilities is to advocate for their rights and participate in disability rights organizations. These organizations can provide information and resources on accessible housing and advocate for the rights of people with disabilities.

In conclusion, finding suitable and affordable housing is a significant challenge for people with disabilities. Accessibility, affordability, discrimination, and lack of inclusive communities are some of the challenges that people with disabilities face when searching for a home. However, with the right support, resources, and advocacy, people with disabilities can overcome these challenges and find a home that meets their needs. It’s important for all of us to work towards creating more inclusive communities where everyone can thrive, regardless of their abilities.

#AccessibleHousing, #DisabilityRights, #InclusiveCommunities, #RMFRealty, #RMFRealtyteam,

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Navigating the Divorce Process:

04 Tuesday Apr 2023

Posted by rozalynf in Uncategorized

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Tags

#CDLP, #CDS, #creditimpact, #divorceandhousing, #divorceprocess, #homemediation, #RealEstateDivorceInfoSC, #triggerlead

Navigating the Divorce Process:What You Need to Know Before Divorcing Your House

Divorce is a difficult process that can be emotionally and financially draining. One of the biggest challenges in divorce is dividing marital assets, and for many couples, their home is their most significant asset. If you and your spouse are considering a divorce, it’s essential to understand what you need to know before deciding to divorce your house. Here are some important factors to consider:

Trigger Lead and Credit Impact

One of the critical things to know when divorcing a house is the concept of a trigger lead. A trigger lead is when a mortgage company or lender pulls your credit report when you inquire about refinancing or selling your home. If you’re divorcing your house, your spouse may decide to refinance or sell the house, and this could result in a trigger lead. Unfortunately, a trigger lead could impact your credit score, so it’s crucial to understand the potential consequences before deciding to divorce your house.

Home Inspection before Mediation

Before you and your spouse begin mediation, it’s essential to have the house inspected. A home inspection can uncover hidden problems that may affect the value of the house. If you and your spouse are not aware of these issues, it could impact your ability to agree on a fair settlement. Additionally, an inspection can help ensure that you don’t run into any unpleasant surprises after the divorce is final.

Examination of Deed

Another essential factor to consider when divorcing your house is examining the deed. You must understand who is listed on the deed and what type of ownership is in place. Joint tenancy with rights of survivorship, tenancy in common, and tenancy by the entirety are all common forms of property ownership, and each one has different implications in the event of a divorce. Understanding the deed’s specifics can help you and your spouse make informed decisions regarding the division of the property.

Consult a Certified Divorce Lending Professional (CDLP) and Certified Divorce Real Estate Professional (CDS)

Finally, it’s crucial to consult with a Certified Divorce Lending Professional (CDLP) and a Certified Divorce Real Estate Professional (CDS) when divorcing your house. A CDLP can help you and your spouse understand your mortgage options and the potential impact of those options on your credit score. A CDS can help you and your spouse navigate the complex process of selling or transferring ownership of the property.

In conclusion, divorce is a challenging process, and the decision to divorce your house is no exception. Understanding trigger leads, getting a home inspection before mediation, examining the deed, and consulting with a CDLP and CDS are all critical factors that can impact your financial and emotional well-being during and after the divorce. Remember to approach the process with an open mind and seek professional guidance to ensure that you make informed decisions.

#divorceprocess, #divorceandhousing, #triggerlead, #homemediation, #creditimpact, #CDLP, #CDS, #RealEstateDivorceInfoSC,

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Maximizing Your Home’s Curb Appeal

16 Thursday Mar 2023

Posted by rozalynf in Uncategorized

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Tags

#DECLUTTER, #HomeDecor, #HomeSelling, #HomeStaging, #realestatetips, #RMFRealty, CurbAppeal

5 Tips for a Stunning First Impression

When it comes to selling your home, staging is a crucial part of the process. Staging involves making your home look its best to appeal to potential buyers. Here are the five best staging tips when selling your home.

  1. Declutter and Depersonalize

The first step in staging your home is to declutter and depersonalize. Remove any personal items, such as family photos or heirlooms, as they can distract potential buyers from seeing themselves living in the space. Clear out any unnecessary items and organize the remaining items neatly. A clean and organized space will help buyers envision themselves living in the home.

  1. Clean Thoroughly

Before showing your home, ensure it is thoroughly cleaned from top to bottom. This includes scrubbing floors, wiping down surfaces, and dusting all areas. Deep clean the bathrooms and kitchen, ensuring they are sparkling clean. Consider hiring a professional cleaner to do a deep clean to ensure everything is spotless.

  1. Highlight the Best Features of the Home

Staging is all about showcasing the best features of your home. If you have a beautiful fireplace, make sure it is the focal point of the room. If you have a stunning view, ensure that it is visible from the main living areas. Highlighting the best features of your home will make it more appealing to potential buyers.

  1. Depersonalize and Neutralize

In addition to removing personal items, it’s important to neutralize the decor. This means using neutral colors on walls and furniture to appeal to a wider range of buyers. Neutralizing your home will help potential buyers see themselves living in the space and make it easier for them to imagine their own furniture and decor in the home.

  1. Create a Welcoming Environment

Finally, it’s important to create a welcoming environment. Consider adding fresh flowers or plants to the space to add some color and life. Soft lighting can also create a warm and inviting atmosphere. Ensure that the temperature is comfortable, and the home is well-ventilated to create a fresh and inviting space.

In conclusion, staging is a crucial part of selling your home. By following these five tips, you can create a welcoming and inviting space that will appeal to potential buyers. A well-staged home can sell faster and for a higher price, so it’s worth investing time and effort into staging your home properly.

CurbAppeal, #HomeSelling, #RealEstateTips, #HomeStaging, #HomeDecor, #DECLUTTER, #RMFREALTY, #ROZALYNFRANKLIN

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Where Will You Go If You Sell? You Have Options.

30 Monday Jan 2023

Posted by rozalynf in Uncategorized

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Where Will You Go If You Sell? You Have Options. | MyKCM

There are plenty of good reasons you might be ready to move. No matter your motivations, before you list your current house, you need to consider where you’ll go next. So? Where Will You Go If You Sell? You Have Options.

In today’s market, it makes sense to explore all your options. That includes both homes that have been lived in before as well as newly built ones. To help you decide which is right for you, let’s compare the benefits of each. Regardless of which option you choose to explore, working with a trusted real estate professional throughout the process is essential.

The Benefits of Newly Built Homes

First, let’s look at the benefits of purchasing a newly constructed home. With a brand-new house, you’ll be able to:

1. Build your dream home

If you build a home from the ground up, you’ll have the option to select the custom features you want, including appliances, finishes, landscaping, layout, and more. Bankrate puts it like this:

“Building means customizing. . . . instead of wishing your home had a certain kind of flooring, a sunroom or some other special amenity, you’ll be able to tailor the property to your exact needs. You also won’t be limited to a specific location or neighborhood.”

2. Take advantage of builder concessions

In today’s market, a lot of home builders are working hard to sell their current inventory before they add more to their mix. That means many of them are offering concessions and are more willing to negotiate with buyers. That could work to your advantage in the process.

3. Minimize home repairs

Many builders offer a warranty, so you’ll have peace of mind on unlikely repairs. Plus, you won’t have as many little improvement projects to tackle. As realtor.com says:

“. . . if something goes wrong with your new home, not only are there likely some manufacturer warranties in place, but many builders also include additional home warranties . . .”

4. Take advantage of energy efficiency

When building a home, you can choose brand-new, energy-efficient options to help lower your utility costs, protect the environment, and reduce your carbon footprint.

The Benefits of Existing Homes

Now, let’s compare those to the perks that come with buying an existing home. With a pre-existing home, you can:

1. Explore a wider variety of home styles and floorplans

With decades of homes to choose from, you’ll have a broader range of floorplans and designs available.

2. Appreciate that lived-in charm

The character of older homes is hard to reproduce. If you value timeless craftsmanship or design elements, you may prefer an existing home.

3. Join an established neighborhood

Existing homes give you the option to get to know the neighborhood, community, or traffic patterns before you commit. Plus, they have more developed landscaping and trees, which can give you additional privacy and curb appeal.

4. Move in faster

If you have a short timeframe to move or you just don’t want the process to take several months while your home is under construction, buying an existing home might make sense for you. U.S. News explains:

“When you’re choosing a home, existing or new, you should also consider how long it might take to move into that home. Just because you have a contract doesn’t mean that your new home will be completed (or even started) at the time you agree to the purchase. It can be a struggle waiting for the walls to go up as you wonder what your home will become.”

When thinking about where you’ll go after you sell your house, remember your options. As you start your search, think about what’s most important to you. By working with a trusted real estate agent, you can be confident you’re making the most educated, informed decision.

Bottom Line: If you have questions about the options in our area, let’s discuss what’s available and what’s right for you, so you’re ready to make your next move with confidence.

Home ownership Builds Wealth Over Time

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Advantages of Buying A Home Today

07 Wednesday Dec 2022

Posted by rozalynf in Uncategorized

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Key Advantages of Buying a Home Today | MyKCM

Advantages of Buying a Home Today

There’s no doubt buying a home today is different than it was over the past couple of years, and the shift in the market has led to advantages for buyers today. Right now, there are specific reasons that make this housing market attractive for those who’ve thought about buying but have sidelined their search due to rising mortgage rates.

Buying a home in any market is a personal decision, and the best way to make that decision is to educate yourself on the facts, not following sensationalized headlines in the news today.  The reality is, headlines do more to terrify people thinking about buying a home than they do to clarify what’s actually going on with real estate.

Here are three reasons potential homebuyers should consider buying a home today.

1. More Homes Are for Sale Right Now

According to data from the National Association of Realtors (NAR), this year, the supply of homes for sale has grown significantly compared to where we started the year (see graph below):

Key Advantages of Buying a Home Today | MyKCM

This growth has happened for two reasons: homeowners listing their homes for sale and homes staying on the market a bit longer as buyer demand has moderated in response to higher mortgage rates.

The good news for you is that more inventory means more homes to choose from. And when there are more homes on the market, you could also see less competition from other buyers because the peak frenzy of competing over the same home has eased too.

2. Home Prices Are Not Projected To Crash

Experts don’t believe home prices will crash like they did in 2008. Instead, home prices will moderate at various levels depending on the local market and the factors, like supply and demand, at play in that area. That’s why some experts are calling for slight appreciation and others are calling for slight depreciation (see graph below):

Key Advantages of Buying a Home Today | MyKCM

If you consider the big picture and average the expert forecasts for 2023 together, the expectation is for relatively flat or neutral price appreciation next year. So, if you’re worried about buying a home because you’re afraid home prices will crash like they did in 2008, rest assured that’s not what expert projections tell us.

3. Mortgage Rates Have Risen, but They Will Come Down

While mortgage rates have risen dramatically this year, the rapid increases we’ve seen have moderated in recent weeks as early signs hint that inflation may be easing slightly. Where they’ll go from here largely depends on what happens next with inflation. If inflation does truly begin to cool, mortgage rates may come down as a result.

When that happens, expect more buyers to jump back into the market. For you, that means you’ll once again face more competition. Buying your house now before more buyers reenter the market could help you get one step ahead. As Lawrence Yun, Chief Economist for NAR, says:

“The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”

When mortgage rates come down, those waiting on the sidelines will jump back in. Your advantage is getting in before they do.

Bottom Line

If you’re thinking about buying a home, you should seriously consider the advantages today’s market offers. Let’s connect so you can make the dream of homeownership a reality. 

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Homeownership is still the American Dream in America

08 Tuesday Nov 2022

Posted by rozalynf in Uncategorized

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The Majority of Americans Still View Homeownership as the American Dream | MyKCM

Buying a home is a powerful decision, and it remains a key part of the American Dream. In fact, the 2022 Consumer Insights Report from Mynd found the majority of people polled still view homeownership as a key life achievement. Let’s explore just a few of the reasons why so many Americans continue to value homeownership.

The Financial Benefits of Owning a Home

One possible reason homeownership is viewed so highly is because owning a home is a significant wealth-building tool, and it provides meaningful financial stability over renting by locking in your monthly housing payments for the length of your home loan. An article from Forbes explains:

“Understanding the potential benefits of homeownership helps individuals see the value of owning property instead of renting. . . . household wealth among homeowners is a whopping 1,469% higher on average compared to renters, excluding home equity, making the allure of homeownership even more enticing.”

Over time, owning a home not only helps boost your own net worth, but it also sets future generations up for success as you pass that wealth down. That may be why the Mynd report also says:

“Most Americans (78%) still associate homeownership with the ‘American dream.’ And nearly two-thirds of Americans (65%) see homeownership as a means of building intergenerational wealth.”

The Non-Financial Benefits of Homeownership

While the financial benefits of owning a home are important, becoming a homeowner impacts you on a social and emotional level, too. As Mark Fleming, Chief Economist for First American, says:

“. . . buying a home is not just a financial decision. It’s also a lifestyle decision.”

Your home provides feelings of achievement, responsibility, and more. 3by30 highlights the top 10 benefits homeowners enjoy. A few non-financial advantages include:

  • Providing you with more freedom and control over your living space
  • Giving you a greater sense of pride
  • Helps with community engagement

What Does That Mean for You?

If your definition of the American Dream involves greater freedom and prosperity, then homeownership could play a major role in helping you achieve that dream. While it may feel challenging to buy a home today as mortgage rates and home prices rise, if the time is right for you, know that there are incredible benefits waiting for you at the end of your journey. You’ll have a place you can grow your wealth, call your own, and feel most comfortable.

Like the National Association of Realtors (NAR) says:

“. . . research has consistently shown that homeownership is also associated with multiple economic and social benefits to individual homeowners. Homeownership has always been an important way to build wealth.”

Bottom Line

Buying a home is a powerful decision and a key part of the long-term dream for many Americans. And if homeownership is part of your dreams this year, let’s connect to start the process today.

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Don’t Get Caught Off Guard by Closing Costs

15 Thursday Sep 2022

Posted by rozalynf in Uncategorized

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Don’t Get Caught Off Guard by Closing Costs

Don’t Get Caught Off Guard by Closing Costs | MyKCM

As a homebuyer, it’s important to plan and budget for the expenses you’ll encounter when you purchase a home. While most people understand the need to save for a down payment, a recent survey found 41% of homebuyers were surprised by their closing costs. Here’s some information to help you get started so you’re not caught off guard when it’s time to close on your home.

What Are Closing Costs?

One possible reason some people are surprised by closing costs may be because they don’t know what they are or what they cover. According to U.S. News and World Report:

“Closing costs encompass a variety of expenses above your property’s purchase price. They include things like lender fees, title insurance, government processing fees, upfront tax payments and homeowners insurance.”

In other words, your closing costs are a collection of fees and payments made to a variety of individuals and organizations who are involved with your transaction. According to Freddie Mac, while they can vary by location and situation, closing costs typically include:

  • Government recording costs
  • Appraisal fees
  • Credit report fees
  • Lender origination fees
  • Title services
  • Tax service fees
  • Survey fees
  • Attorney fees
  • Underwriting Fees

How Much Will You Need To Budget for Closing Costs?

Understanding what closing costs include is important, but knowing what you’ll need to budget to cover them is critical to achieving your homebuying goals. According to the Freddie Mac article mentioned above, the costs to close are typically between 2% and 5% of the total purchase price of your home. With that in mind, here’s how you can get an idea of what you’ll need to cover your closing costs.

Let’s say you find a home you want to purchase for the median price of $350,300. Based on the 2-5% Freddie Mac estimate, your closing fees could be between roughly $7,000 and $17,500.

Keep in mind, if you’re in the market for a home above or below this price range, your closing costs will be higher or lower.

What’s the Best Way To Make Sure You’re Prepared At Closing Time?

Freddie Mac provides great advice for homebuyers, saying:

“As you start your homebuying journey, take the time to get a sense of all costs involved – from your down payment to closing costs.”

The best way to understand what you’ll need at the closing table is to work with a team of trusted real estate professionals. An agent can help connect you with a lender, and together they can provide you with answers to the questions you might have.

Bottom Line

In today’s real estate market, it’s more important than ever to make sure your budget includes any fees and payments due at closing. Let’s connect so you have the knowledge you need to be confident going into the homebuying process.

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Shifting Market- Challenge or an Opportunity for Homebuyers?

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Posted by rozalynf in Uncategorized

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#Firsttimehomebuyer, #Homebuying, #househunting, #opportunity

Is the Shifting Market a Challenge or an Opportunity for Homebuyers? | MyKCM

Shifting Market – Challenge or an Opportunity for Homebuyers?

If you tried to buy a home during the pandemic, you know the limited supply of homes for sale was a considerable challenge. It created intense bidding wars which drove home prices up as buyers competed with one another to be the winning offer.

But what was once your greatest challenge may now be your greatest opportunity. Today, data shows buyer demand is moderating in the wake of higher mortgage rates. Here are a few reasons why this shift in the housing market is good news for your homebuying plans.

The Challenge

There were many reasons for the limited number of homes on the market during the pandemic, including a history of underbuilding new homes since the market crash in 2008. As the graph below shows, housing supply is well below what the market has seen for most of the past 10 years (see graph below):

Is the Shifting Market a Challenge or an Opportunity for Homebuyers? | MyKCM

The Opportunity

But that graph also shows a trend back up in the right direction this year. That’s because moderating demand is slowing the pace of home sales and that’s one of the reasons housing supply is finally able to grow. For you, that means you’ll have more options to choose from, so it shouldn’t be as difficult to find your next home as it has been recently.

And having more options may also lead to less intense bidding wars. Data from the Realtors Confidence Index from the National Association of Realtors (NAR) shows this trend has already begun. In their recent reports, bidding wars are easing month-over-month (see graph below):

Is the Shifting Market a Challenge or an Opportunity for Homebuyers? | MyKCM

If you’ve been outbid before or you’ve struggled to find a home that meets your needs, breathe a welcome sigh of relief. The big takeaway here is you have more options and less competition today.

Just remember, while easing, data shows multiple-offer scenarios are still happening – they’re just not as intense as they were over the past year. You should still lean on an agent to guide you through the process and help you make your strongest offer up front.

Bottom Line

If you’re still looking to make a move, it may be time to pick your home search back up today. Let’s connect to kick off the homebuying process.

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Why Home Loans Today Aren’t What They Were in the Past

29 Friday Jul 2022

Posted by rozalynf in Uncategorized

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Why Home Loans Today Aren’t What They Were in the Past | MyKCM

In today’s housing market, many are beginning to wonder if we’re returning to the riskier lending habits and borrowing options that led to the housing crash 15 years ago. Let’s ease those concerns.

Several times a year, the Mortgage Bankers Association (MBA) releases an index titled the Mortgage Credit Availability Index (MCAI). According to their website:

“The MCAI provides the only standardized quantitative index that is solely focused on mortgage credit. The MCAI is . . . a summary measure which indicates the availability of mortgage credit at a point in time.”

Basically, the index determines how easy it is to get a mortgage. The higher the index, the more available mortgage credit becomes. Here’s a graph of the MCAI dating back to 2004, when the data first became available:

Why Home Loans Today Aren’t What They Were in the Past | MyKCM

As the graph shows, the index stood at about 400 in 2004. Mortgage credit became more available as the housing market heated up, and then the index passed 850 in 2006. When the real estate market crashed, so did the MCAI as mortgage money became almost impossible to secure. Thankfully, lending standards have eased somewhat since then, but the index is still low. In April, the index was at 121, which is about one-seventh of what it was in 2006.

Why Did the Index Get out of Control During the Housing Bubble?

The main reason was the availability of loans with extremely weak lending standards. To keep up with demand in 2006, many mortgage lenders offered loans that put little emphasis on the eligibility of the borrower. Lenders were approving loans without always going through a verification process to confirm if the borrower would likely be able to repay the loan.

An example of the relaxed lending standards leading up to the housing crash is the FICO® credit score associated with a loan. What’s a FICO® score? The website myFICO explains:

“A credit score tells lenders about your creditworthiness (how likely you are to pay back a loan based on your credit history). It is calculated using the information in your credit reports. FICO® Scores are the standard for credit scores—used by 90% of top lenders.”

During the housing boom, many mortgages were written for borrowers with a FICO score under 620. While there are still some loan programs that allow for a 620 score, today’s lending standards are much tighter. Lending institutions overall are much more attentive about measuring risk when approving loans. According to the latest Household Debt and Credit Report from the New York Federal Reserve, the median credit score on all mortgage loans originated in the first quarter of 2022 was 776.

The graph below shows the billions of dollars in mortgage money given annually to borrowers with a credit score under 620.

Why Home Loans Today Aren’t What They Were in the Past | MyKCM

In 2006, buyers with a score under 620 received $376 billion dollars in loans. In 2021, that number was only $80 billion, and it’s only $20 billion in the first quarter of 2022.

Bottom Line

In 2006, lending standards were much more relaxed with little evaluation done to measure a borrower’s potential to repay their loan. Today, standards are tighter, and the risk is reduced for both lenders and borrowers. These are two very different housing markets, and today is nothing like the last time.

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