Is Qualifying for a Home Mortgage Getting Easier?

There has been a lot of talk about how difficult it is to get a home mortgage in today’s lending environment. However, three recent reports have revealed that lending standards are beginning to ease. This is great news for both first time buyers and current homeowners looking to move or buy a second vacation/retirement home. Let’s look at the three reports:

The MBA’s Mortgage Credit Availability Index

This index, issued by the Mortgage Bankers’ Association, measures the availability of credit available in the home mortgage market. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of a loosening of credit. We can see that the index has been increasing nicely this year:

Fannie Mae’s latest Mortgage Lender Sentiment Survey

This survey revealed that more lenders report that mortgage lending standards across all loan types are easing. The survey asked senior mortgage executives whether their company’s credit standards have eased, tightened, or remained essentially unchanged during the prior three months. The gap between lenders reporting easing as opposed to tightening over the prior three months jumped to approximately 20%. This represented a new survey high of “net easing.” In addition, the share of lenders who expect their organizations to ease credit standards over the next three months also ticked up this quarter. Doug Duncan, senior vice president and chief economist at Fannie Mae, addressed this easing of standards:

“For the first time in seven quarters, we see a pronounced increase in the share of lenders, particularly medium- and larger-sized lenders, reporting on net an easing of credit standards … This is a significant result in light of public discourse on credit availability and standards … Overall, we expect that lenders’ tendency toward easing credit standards, together with relatively low mortgage rates and a strengthening labor market, will continue to support the housing market expansion.”

Ellie Mae’s latest Origination Insights Report

The easing of credit standards is also confirmed in this report which showed that the average FICO score on a closed loan fell to its lowest point in well over a year. Here is a chart of average FICO scores on closed loans so far in 2015:

Just keep an eye on interest rates…

Although this is all great news, there was one challenge in the recently released data. Ellie Mae reported that the average interest rate on closed loans is beginning to inch upward:

What this means to you…

If you are a first time buyer or a current homeowner thinking of moving up to a bigger home or buying a vacation home, now may be the time to act. Mortgage lending standards are beginning to ease and interest rates are beginning to inch up.

October 3, 2015 Posted by Matt Klinowski

October 2, 2015 Posted by Matt

How quickly are homes selling in your state?  Where do FL home sales rank versus the rest of the country?  The median days on the market for FL home sales from July through August was 46 to 60 days.

Some Highlights:

• The National Association of REALTORS® surveyed their members for their Confidence Index
• The REALTORS® Confidence Index is a key indicator of housing market strength based on a monthly survey sent to over 50,000 real estate practitioners. Practitioners are asked about their expectations for home sales, prices and market conditions.
• Homes sold in less than 60 days in 39 out of 50 states and Washington D.C.
• Only Vermont had a median sold date longer than 90 days.

October 2, 2015 Posted by Matt

A good way to help you determine your line and start your putt on the correct path is to place a line on your ball and line it up to the line you think your putt needs to go.  There are plastic templates that allow you to make a straight line on your ball with a permanent marker.  When you place your ball on the green in front of your coin, align the straight line to your intended path for your putt.  When you set up to putt, place the center of your putter head directly in line with your straight line on the ball.  Start your putt by stroking the ball down the line.  If the ball rolls over and over as if it were one solid line, you have struck the ball well.  This technique will be a big help in starting your putts in the correct direction.

October 1, 2015 Posted by Matt

Forbes magazine released its annual list of America’s 400 wealthiest individuals which includes a list of SWFL wealthiest people.  Shahid Kahn (Flex-N-Gate, Jacksonville Jaguars) is the highest Naples resident on the list coming in at #84 with $5.6 billion.  Next on the list is Reinhold Schmieding (Arthrex) at #135 with $4.1 billion.  Next on the list is Richard Schulze (Best Buy) at #234 with $2.8 billion and rounding out the list of SWFL’s wealthiest people is Tom Golisano (Paychex) at #293 with $2.3 billion. View the Full List.

Top 10 Wealthiest People in America

1.  Bill Gates ($76 B – Microsoft)
2.  Warren Buffet ($62 B – Berkshire Hathaway)
3.  Larry Ellison ($47.5 B – Oracle)
4.  Jeff Bezos ($47 B – Amazon)
5.  Charles Koch ($41 B – diversified)
6.  David Koch ($41 B – diversified)
7.  Mark Zuckerberg ($40.3 B – Facebook)
8.  Michael Bloomberg ($38.6 B – Bloomberg LP)
9.  Jim Walton ($33.7 B – Walmart)
10.  Larry Page ($33.3 B – Google)

One likely reason so many wealthy people live in Naples full time or have second (or third) homes in our area is due to the low tax rate.  Florida is one of the few states without a state income tax.  Additionally, the property tax rate in Collier County is slightly over 1 percent.

Are you considering buying a home in Naples FL?  Let me be your guide.  Contact Matt Klinowski, 239-370-0892 for more information about homes in Naples.

September 30, 2015 Posted by Matt

The right knee is the key to solid shots.  When you make your backswing, your right knee should remain flexed and ready to take the weight from your shift.  The weight should be felt on the inside of your right foot so the knee does not bow backward to create a sway.  If you straighten your right leg on your backswing, you are losing the ability to coil for power.  Have a friend stand behind you and place the grip of a club on the back of your knee to keep your flex as you swing back.  This little drill will help you get the feel for getting a good position as you swing back to the top and the result will be solid shots.

New Construction in Bonita Springs

WCI Communities has begun new construction in Bonita Springs in The Colony Golf & Bay Club on a new high rise tower called Altaira.  The new 21-story tower will consist of 76 luxury high rise condos known as “Sky Homes”.  Each Sky Home features 3,300 or 3,500 square feet of living space, depending on the floor plan. The tower features 19 residential floors.  Each floor will only have four residences per floor.  A highlight of the new tower residences will be the breathtaking views of The Colony’s lakes, nature preserves and golf course. Altaira is expected to be completed during the second quarter of 2017.

There are very few communities building new construction homes or condos on the west side of U.S. 41 in Bonita Springs, Estero and Naples FL.  In fact, if you are interested in golf communities in Bonita Springs with new construction The Colony is currently the only one building new construction west of 41.

Are you considering buying new construction in Bonita Springs?  Or perhaps you are more interested in buying an existing home or condo.  Let me be your guide.  For more information about golf communities in Bonita Springs, Naples, Estero or Fort Myers give us a call, we’ll be happy to provide you with the pros and cons of each golf community.

September 29, 2015 Posted by Matt

September 28, 2015 Posted by Matt

Low to low putting is the way to go!  A great way to roll your putts is to bring your putter back low to the ground, strike the putt, and keep the putter low on the follow-through.  This type of stroke eliminates hitting down on the ball so it pops up and starts to bounce, instead of rolling down the line.  Rock your shoulders and keep your head steady as you make this stroke.  The more that you eliminate any hand and wrist movement will make your stoke smooth and repeatable.  You might hover the putter just off the grass so that you start the putter back without making a lifting move on the backswing in order to keep it low.

September 27, 2015 Posted by Matt

It is important to accelerate through the ball and keep the club moving.  Many times you will see a player hit a shot and then stop the swing about waist high on the follow-through.  This type of swing is usually caused by a desire to steer or control the ball too much.  By stopping the swing early, you are actually slowing down through impact.  Make a practice swing that whips through impact so the club finishes up by your shoulders.  In practice, make an effort to drive through the ball and keep your arms and hands moving with every shot.  If you accelerate through the ball, you will pick up both accuracy and distance.

September 26, 2015 Posted by Matt

Did you know you can take an unplayable lie in a bunker?  If you hit a shot that buries into the sand of a bunker so that it is impossible to play, you may declare the ball unplayable.  You may drop the ball two club lengths from where the ball was plugged or you may drop it back, keeping the place where the ball plugged and the hole in line.  Here’s the downside.  Both drops must be made in the bunker.  Usually, when you drop a ball in a bunker it will bury and will give you a tough lie.  You do have one more option.  You can go back to the spot where you your original shot was prior to going into the bunker and replay the ball.  You will likely have much better lie.  As a reminder, regardless of which option you chose, any time you take an unplayable lie there is a one shot penalty.

Cash Home Sales

One sign the real estate market is strong in a given area is the number of all-cash home sales as a percentage of all home sales.  The higher the percentage, the stronger the market.  In the Southwest Florida area, all-cash home sales were down during the month of August as well as year-to-date.  In metro Cape Coral and Ft. Myers, they accounted for 38.4 percent of single-family home and condo sales in August, according to RealtyTrac’s August 2015 U.S. Home Sales Report.  How does this compare to last month?  What about last year?  All-cash home sales were 42.2 percent in July and 52.5 percent in August 2014. Collier County showed a decline as well.  All-cash sales in metro Naples-Marco Island in August equated to 49.7 percent, down from 50.5 percent in July and 53.8 percent in August 2014.

September 26th, 2015, Posted by Matt