What You Really Need To Qualify For A Mortgage

Great information showing the credit scores needed for each loan



What You Really Need To Qualify For A Mortgage

Where Will Home Prices Be Next Year? [INFOGRAPHIC]

Where Will Home Prices Be Next Year? [INFOGRAPHIC]

The Difference A Year Can Make [INFOGRAPHIC]

It will be a big mortgage payment difference if you wait till next year to buy a home



The Difference A Year Can Make [INFOGRAPHIC]

Newest local housing report indicates favorable numbers in listings, sales

February was a short month, but it packed a real punch when it came to bitterly cold weather. That, according to last month's housing statistics, is what is attributed to listing and selling activity that was slightly lower than the same month in 2014. 

To clarify, single-family listings are down only 3%, while sales decreased by 12.9%. In comparison to the first two months of last year, there's not much difference overall, with only a 5% gap as last January was on par with February 2015 with regards to sales, listings and the weather. 

With sunnier skies rebounding in February, so did sales prices. Listing prices were up at this February from last — a 23.4% jump — which mirrors the sales price percentage increase. The average sale price this year is $274,182, up from $222,255.

There's even better news: market growth is expected to increase both at the local and national level, thanks to consumer confidence and interest rates remaining low.

Chris Glahn is a licensed Realtor in the state of Michigan with RE/MAX Platinum Ann Arbor. He can be reached at 734-730-3403. 

Seeking activities for the warm-weather season? Washtenaw County is host to a limitless array of fun

One thing that Michigan is known for is the outdoors, and though many areas are enjoyable year-round, the warmer months of the year are high time to get out and enjoy what the state has to offer.

Washtenaw County and the areas surrounding it are no exception. 

Whether it's being on or near the water, biking, birding, trail riding or any number of outdoor activities to indulge in, the best part is that one needs not go far to enjoy them. 

There are many areas that are perfect for serious fun, and some are governed by the Michigan Department of Natural Resources like the Waterloo State Recreation Area and the Pinckney State Recreation Area. 

To gain use of the facilities in these areas, which include camping (even with horses) and swimming — and ample parking — recreation passport or pass is necessary. 

The Waterloo State Rec Area, located in Jackson and Washtenaw Counties, boasts the Gerald E. Eddy Discovery Center. The attraction features exhibits how the areas geology and natural habitats have changed since pre-settler times.

The Pinckney State Rec Area encompasses Washtenaw and Livingston Counties, comprising 11,000 acres in all, some of which is surrounded by property owned by the University of Michigan. Four lakes are part of the PSRA, including Silver, Crooked, Halfmoon and Pickerel Lakes. 

The Potowatami Trail — one of six trails in the PSRA — is an access point to two rustic camping areas as well as the Yurt at Glenbrook. This trail has 17 miles of mountain biking pleasure, as well as hiking. 

Boating, fishing and water sports are popular on the scenic chain of lakes in northern Washtenaw County in southern Livingston County. Nine lakes, including Big Portage, Little Portage, Baseline, Strawberry, Gallagher, Whitewood and Zukey Lakes are connected by a series of no-wake channels and are enjoyed by year round and seasonal residents and visitors alike. Zukey Lake Tavern, located on the banks of its namesake, offers up docking and a full-service restaurant, including takeout.

Hell, located within the PSRA, recently made headlines after having gone on the market and garnered the attention of one group of artists seeking to buy the hamlet to hold exhibitions and other events there. 

Hudson Mills Metropark is part of the Huron-Clinton system of metro parks in the state. Located in Dexter, it hugs the banks of the Huron River and is a fun spot to canoe, run, disc golf, among other activities. The park is host to events throughout the year, including probably the most popular, the annual fireworks show, held in early July. 

The Border to Border, with its local section funded by Washtenaw County Parks, The village of Dexter, the Metroparks, as well as generous donations.

The Border to Border trail is non-motorized trail aimed to link neighboring areas of trail as far as Wayne County, and was originally imagined as a recreational tool but has unfolded as a way to better facilitate non-motorized transportation for area residents. Click here for more information, from the friends of the Border to Border trail website.

People taking advantage of what the area has to offer don't want for much when it comes to outdoor beauty and recreation, and there always seems to be room for more folks seeking a little RNR in the region. 

Chris Glahn is a licensed Realtor in the state of Michigan with RE/MAX Platinum Ann Arbor. He can be reached at 734-730-3403. 

Want to know what a home is worth? You might want to skip Zillow

Today's consumers are savvy, and that is true for those looking to wade into the real estate market. Many are very well educated about what they'll be dealing with before they begin their journey in buying or selling a home. Access to information online is very much a part of that. 

One popular website, Zillow, has become an integral part of the dialogue when people are talking real estate, and with 73 million unique visitors in 2014 alone, that shouldn't come as a surprise. Being able to find active listings and information on homes that are not in the market is easy: you simply plug in the address or location and crucial information like the number of bedrooms and bathrooms, property taxes amounts — not to mention photographs and a "Zestimate" pop up.

(A Zestimate, according to Zillow.com, is Zillow's "estimated market value, computed using a proprietary formula".)

That said, it's not uncommon for me to hear (and I know that my colleagues can attest to this) folks refer to the Zestimate when talking price on a property, no matter if they are looking to purchase or sell. 

It is often distressing.

Flickr photo by Delwin Steven Campbell

Why?

Because Zestimates are not accurate.

And in an article in the LA Times, Zillow CEO Spencer Rascoff noted that nationally, Zestimates have a "median error rate" of roughly 8%.

8%? Think that doesn't seem like a lot? Consider this: on a $300,000 home, that's a $24,000 discrepancy. And that's not even considering the localized median error rates. It seems that those surpass the national median.

Some agents have done their own research into how far off the mark that Zestimates are in the local market. In markets in Virginia and California, some Zestimates were overestimated while others were well below the selling price — the latter 70% of the time. Another 25% of the Zestimate were higher than the contract price. 

According to Zillow.com, the median error rate for Michigan is 8.1%, and 6.1% for Washtenaw County, 7% for Livingston and an even higher 10.5% for Wayne County.

It's pretty easy to see how buyers and sellers might not see eye to eye when it comes to pricing. Since real estate by it's very nature is local, no matter where you live (or are looking to move) your best bet is to connect with a Realtor who can give you an accurate snapshot with regard to the information on your property or those that you're interested in. 

Chris Glahn is a licensed Realtor in the state of Michigan with RE/MAX Platinum Ann Arbor. He can be reached at 734-730-3403. 

Dexter considering Broad Street site for new apartments, condos

 Dexter is an inviting place to live, and with the completion of the trail connecting Mill Creek Park to Hudson Mills, even more so.

With an eye toward housing development in the downtown area, the city applied for a target market analysis grant, which will flesh out an idea of what potential is there for housing development. 

One area, overlooking Mill Creek on Broad Street, seems ripe for development and was the topic of discussion at a meeting in January. Representatives from Ann Arbor-based Peter Allen & Associates made their case for developing the site into a 128-unit apartment complex, by way of a report that's part of the Redevelopment Ready Community program offered by the Michigan Economic Development Corp.  

The city purchased the land for $1.3 million in 2012. 

The proposed housing site is just a short walk from Mill Creek Park.

Formerly an industrial site, the land would need some attention, including areas that have been left contaminated — which has an estimated cost of $1.2 million to clean-up — according to Tom Wackerman, president of ASTI, an environmental cleanup firm. Grants from the MEDC may cover that cost. He added that for now, concrete slabs have been placed over areas considered hotspots in an effort to keep any contaminants contained.

With at least another $800,000 to push back the road on Broad Street and getting the utilities in order for the proposed site, the city would also need to improve public transportation, according to Allen's proposal. The city has applied for a grant through the RRC to help with the former.  

The proposed 3-4 story L-shaped buildings are aimed toward millennials, a demographic that Allen says that Dexter is not drawing in. 

"You have an extraordinary village-city, that is ready for the next leap up,” Allen said. 

“But you’re missing something that we are trying to address tonight. You’re missing that demographic of the 20 to 30-year-old.”

The proximity to Ann Arbor would be one asset. 

Those folks who are older and looking to downsize could very well be another comparable demographic, as Dexter Mayor Shawn Keough noted during the meeting. 

"I think they are one and the same,” he said. 

“I think there are some commonalities.”

This idea is not beng pursued solely as a leasing enterprise. After two years, the complex could have a life as condominiums — perhaps marketed toward the existing residents, empty-nesters or those simply interested in downsizing.

It's estimated that a developer would need to invest another $20 million to construct the apartments, and Keough notes that the Allen & Associates' proposal is just the beginning of much to be considered when thinking of the city's future when it comes to housing. 

Moving forward, the city needs to examine the report and take it under advisement as the City Council and the Downtown Development Authority look at the possibilities. 

Click here for more on the Heritage.com. 


Chris Glahn is a licensed Realtor in the state of Michigan with RE/MAX Platinum Ann Arbor. He can be reached at 734-730-3403. 

Be prepared for tax season: Understanding the Michigan Homestead Property Tax Credit

There's always a lot of talk with regard to property taxes in the state of Michigan, and one area that can be a bit confusing to folks — especially first time homebuyers — is the Homestead Property Tax Credit (HPTC). 

The HPTC is a way to offset the cost of the property taxes on your home in the state of Michigan. Not every property qualifies. In order to be able to claim this tax credit, the property that you were filing it on must be your permanent home in Michigan and used as a principal residence (or homestead) and you must be a resident of the state for at least six months. Other criteria also apply.

 

Filing for a Homestead Property Tax Credit is easy: you simply submit the Homestead Property Tax Credit Form (MI-1049CR) along with your Michigan Individual Tax Return (MI-1040). (If you are not required to file a MI-1040, the HPTC may be filed on it's own by April 15.) Alternate forms are used by eligible veterans or their surviving spouses, active-duty military and those who are blind. 

When you purchase a home intended to be your principal residence in Michigan, another form, a Principal Residence Exemption (PRE) Affidavit, is filed the with local assessor in the municipality where the property is located. The PRE Affidavit is separate from the HPTC and can be filed by the title company that handles the closing (or the new owner can do it on their own). More details on that can be found by clicking here. 

It seems important to note that during the process of looking for a home to purchase, the property tax amount on some homes may reflect an amount that is higher then comparable properties that you've seen. That may be due to the possibility that the current owner uses it as an income property. 

For more, including how qualified health insurance premiums and other criteria may affect the Homestead Property Tax Credit, click here. 

Chris Glahn is a licensed Realtor in the state of Michigan with RE/MAX Platinum Ann Arbor. He can be reached at 734-730-3403. 

Interest rates stable for now, but what does the possibility of an increase in mortgage interest rates mean for you in 2015?

Interest rates are at a historic low, and in a recent press conference, Federal Reserve chair Janet Yellen indicated that the Fed may not raise interest rates until later this year, possibly sometime in the summer.

Interest rates were cut to almost zero in December 2008, and an effort has been made to keep rates low in hopes of stimulating the economy. 

Any change in policy would be dependent on economic data of course. 

You might be wondering what all this has to do with you. In truth, interest rates affect everyone of us, but they are of special importance to potential homebuyers (and those wishing to refinance, for that matter). 

Quite simply, lower interest rate means less money paid out by the borrower to the institution lending the money, especially over the long-term. 

I decided to do a quick calculation of what one might borrow for a mortgage, say $250,000, so I logged onto mortgagecalculator.com. You can do the same and play around with some numbers.

As is illustrated with my plugging in $250,000, one half of a percent can be significant.

Borrowing $250,000 over a 30-year period at 4.5% can save over $27,000 (this does not include points, closing costs, etc., however) over the same loan borrowed at 5%. 

As you can see, a seemingly small difference in interest rate can save, well, a lot of your hard earned money. 

When it comes to mortgages, it does pay to shop around and know your options. But one thing is certain: with the Fed possibly raising interest rates sometime in 2015, it is smarter to purchase sooner, rather than later. 

Below is the news conference from mid-December. Yellen's remarks about interest rates can be viewed at about the 30:00 mark. 

   
Chris Glahn is a licensed Realtor in the state of Michigan with RE/MAX Platinum Ann Arbor. He can be reached at 734-730-3403. 

Natural beauty roads are a hidden gem in Washtenaw County

Washtenaw County is a great place to live, and no matter one's lifestyle, there is something to suit everyone. From city life in the heart of Ann Arbor to the outer reaches of town that yield pastoral settings and everything in between, one thing that tends to stand out are the natural beauty roads.  
 

At current count, there are nine interspersed throughout the county and they're not only peaceful and stunning areas to live, they're great for outdoor activities like biking or running. Lined with mature trees, graceful curves and hills, these unique areas never disappoint.

(Click here for a map) 

•Gale Rd. (Superior Township) 

•Warren Rd. (Superior Township)

•Napier Rd. (Superior Township)

•Tubbs Rd. (Ann Arbor)

•Mahrle Rd. (Manchester)

•Marshall Rd. (Dexter)

•Scully Rd. (Dexter)

•Riker Rd. (Chelsea)

•Strawberry Lake Rd. (Dexter)

Not every road can be distinguished as a natural beauty road. The process begins with a petition being filed with the township where the road is located and takes many things into consideration, but generally so long as the road meets the established minimum criteria including traffic volume guidelines, development and the existing function of the road it can happen.

The purpose of the natural beauty roads program is to highlight the natural essence of county roads that have a unique quality to them — attributes including native vegetation like wildflowers, grasses, shrubs, open areas — and these roads are maintained with standards established by Washtenaw County that were designed specifically for natural beauty roads.

Click here for more on designation and maintenance guidelines for these roads, which are located not only in Washtenaw County, but throughout the state of Michigan. 

Chris Glahn is a licensed Realtor in the state of Michigan with RE/MAX Platinum Ann Arbor. He can be reached at 734-730-3403. 

Report indicates that Ann Arbor area needs 3137 new affordable housing units within 20 years

According to a report by Virginia-based urban planning and neighborhood development consulting firm czb LLC, the housing market in Washtenaw County is in pretty good shape.

That's not to say that it can't be better.

One fact that has been stated in the 55 page report is the lack of affordable housing units — non-student housing, more specifically — in Ann Arbor. 

Conversely, the concentration of affordable housing is located in Ypsilanti. 

The report make some suggestions to improve the housing market countywide, but one is to have Ann Arbor add over 3000 affordable housing units over the next 20 years: 2787 of those in the city of Ann Arbor and 350 in Pittsfield Township. 

Countywide, there is no doubt that the market has found a sense of stability in most respects, with renters and buyers both having viable choices. (That said, there are fewer properties available for those who rent — and rent prices are rising.)

But with regard to the housing markets in Ann Arbor and Ypsilanti, the report points out there is a disparity between the two: Ann Arbor, with it's rather sturdy foundation fueled by households that are more highly educated and have the ability for upward mobility, while Ypsilanti and Ypsilanti Township bear a higher number of homes that have suffered the scars of negative equity, along with households that are on the financial brink.

Some argue that this is a jobs issue, while others say, as the report points out, that it is more of a policy issue. Further, it continues, the two markets are expected to continue moving in opposite directions unless a considerable change in policy is made. 

If not, one could expect:

• Some workers in Ann Arbor will not be able to continue to live there as housing costs will rise faster than wages, resulting in the need to commute, which has its own drawbacks.

• In the short-term, Ann Arbor will become less affordable to non-student renters, and down the road, to many buyers.

• Ypsilanti, saddled with falling property values and families who are struggling financially, will be even more affordable and the only viable option for those who were priced out in the surrounding area. 

The report (click here to read) was commissioned by the Washtenaw County Office of Community and Economic Development and funded by the U.S. Department of Housing and Urban Development, Washtenaw County, the city of Ann Arbor and the Ann Arbor Downtown Development Authority.

Chris Glahn is a licensed Realtor in the state of Michigan with RE/MAX Platinum Ann Arbor. He can be reached at 734-730-3403. 

Great tips for selling your home in the winter season!

Are you thinking of getting a head start before the spring competition? This is not a bad idea just look at the tips below before putting your home on the market! Call Chris at 734-730-3403  for a free market analysis and sell your home before the spring!



Winter Selling Wonderland - KW Blog