Buying a Home • Seniors • April 11, 2023

Seniors’ Have Great Credit, But Can’t Get a Mortgage

by Karen Daugerdas

Older adults have higher credit scores than any other age bracket, yet studies have shown that they’re substantially more likely to be rejected for most kinds of mortgages. That raises barriers for older Americans hoping to renovate or retrofit their homes, or to extract home equity as a buffer against medical expenses, widowhood or other crises.

Much of older adults’ wealth is tied up in real estate. Among homeowners aged 65 to 74, home equity represented about 47% of their net worth, according to 2019 federal data. Among those over 75, it was 55%. For Black homeowners over 62, it accounted for almost three-quarters of their net worth.

If you or someone you know is in need of service, call Karen Daugerdas, your local Seniors’ Resource Specialist (SRES). Not only can she assist with your real estate needs, but through her connections she can act as a referral to other services. Karen Daugerdas, Coldwell Banker Real Estate Broker & SRES, 847.494.1102. #coldwellbankerrealty

Uncategorized • March 22, 2023

Break Spring Cleaning into Manageable Tasks for Best Results

by Karen Daugerdas

Eager to get your home in tip-top shape this Spring? It doesn’t have to be overwhelming! Start small, a little by little at a time, with these quick tips:⁣

*Clean out closets, one at a time. Go through each item and sort it into three piles: keep, trash, and donate.⁣

*Your pantry takes a beating day after day. Show it some love by throwing away misfits and checking expiration dates.⁣

*Going batty over cords, chargers, and devices? Invest in a charging station for multiple devices to keep gadgets (new and old) under control.⁣

*Stay on top of clutter little by little. When you have a few minutes, clean out a drawer here and a cabinet there.⁣

*Books doing nothing but collecting dust? Donate gently loved classics to your library’s used book sale or Goodwill.⁣

*Cut down on paper clutter by unsubscribing from junk mail and signing-up for electronic billing.

If you need resources or assistance for cleaning, organizing or getting your home ready to sell, contact me for my list of local area businesses! Karen Daugerdas, Coldwell Banker Real Estate Broker, 847.494.1102, karen.daugerdas@cbrealty.com.

Foreclosures • Short Sales • March 12, 2023

Struggling with Mortgage Payments?

by Karen Daugerdas

I know many people are struggling right now to pay bills, living paycheck to paycheck and could be struggling to pay their mortgage. It’s times like these we start figuring out where to cut out things so we can make ends meet.

If you are struggling with your mortgage and are past due with bills, call me. Rather than see you go into foreclosure, let me talk with you about all the things we can do before you get to that point. Worse case scenario, you walk away with your credit in check and the equity that you earned will be cash in your pocket for your move. And did I mention my designation as a Short Sale/Foreclosure Resource?

At the end of the day, my job is not to just help people sell and buy homes. My job is to help give you guidance in those not so great times, so I can help make it a bit brighter!! Karen Daugerdas, REALTOR^®, PSA^®, SRES, SFR^®

Buying a Home • January 19, 2023

What should be your first step when buying a home?

by Karen Daugerdas

One of the first steps in your homebuying journey should be getting pre-approved for your mortgage. To understand why it’s such an important step, you need to understand what pre-approval is and what it does for you.

A preapproval involves a mortgage lender advising you on what types of loans you qualify for, how much you may be approved to borrow, and what interest rate you might pay.

Basically, pre-approval gives you critical information about the homebuying process that will help you understand your options.

How does it work? As part of the pre-approval process, a lender will look at your finances, credit and other financial information to determine what they would be willing to loan you. They calculate in the current mortgage interest rates and give you a pre-approval letter to help you understand how much money you can borrow. When you begin to search for homes, you’ll know what you can afford and be able to adjust your search appropriately. With higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is critical.

Another added benefit is that a pre-approval helps a seller feel more confident in your offer . It shows you are serious about buying their house.

“From the seller’s perspective, a preapproval letter from a reputable local lender often can make the difference between accepting and rejecting an offer,” according to a recent Forbes article.

Even though you may not face the intense bidding wars you saw if you tried to buy during the pandemic, pre-approval is still an important part of making a strong offer. In fact, Christy Bieber, Personal Finance Writer at The Motley Fool, stated that it may be the most important part of making an offer.

“Pre-approval maximizes the chances you’ll be able to actually close the deal, and sellers want to see that. The fact that a pre-approval gives you a better chance of getting your offer accepted is undoubtedly the most important reason to complete this step … ”

The bottom line is that getting pre-approved is an important first step towards buying a home. It lets you know what you can borrow and shows sellers you’re serious about purchasing their home. Connect with me to begin creating your home-buying plan and for a free copy of my Buyer’s Guide for more tips on getting you home! Karen Daugerdas, Coldwell Banker REALTOR^®.

First Time Buyer • December 26, 2022

Is Buying your First Home on your New Year’s List?

by Karen Daugerdas

Is buying your first home on your list for the New Year? If so, one of the steps you should take early on is making sure you’re financially ready for your purchase. Here are a few financial fundamentals to focus on.

Your credit rating is critical, since it helps determine the type of home loan you will be able to get as well as your mortgage interest rate. While there are many factors that go into your mortgage application, a higher credit score could lead to a lower monthly payment in the long run.

So how do you make sure your credit is in the best shape possible when it’s time to buy? A recent article from NerdWallet lists a few tips you can use as you work to build and strengthen your credit. They include:

Tracking your credit and disputing any errors that show up on your reports.
Paying your bills on time. This includes making loan payments and paying down any open lines of credit.
Keeping your credit card balances low. Paying more than your minimum monthly balance when you’re able.

You might also be wondering how you can achieve your down payment savings goals. Bankrate provides buyers with a number of tips to help you save, including searching for down payment assistance programs and ways you can save more, faster. As the article says:

“One of the best ways to save for anything, including a down payment, is to set it and forget it. If you receive a regular paycheck, ask your employer to direct a portion of that payment into a savings account. If you’re a freelance worker or independent contractor, set up a recurring transfer from a checking account to a savings account to establish the routine.”

As you prepare for your purchase, you’ll also need to have a good grasp on your budget and how much you’ll be able to borrow for your home loan. That’s where the pre-approval process comes in.

Pre-approval from a lender lets you know how much money you can borrow for your home loan, in other words, how much you have to spend for your purchase. And having that knowledge, plus an understanding of your savings, can help you decide on your target price range for a house.

From there, you can start browsing for houses in the areas you’d like to live to see what the prices are and what is available in your price range. This can help you really understand your options so you can start to picture your future home.

Call me so we can set up a plan and begin to build your team for your home buying purchase. It’s never too early! Karen Daugerdas, Coldwell Banker Real Estate Broker, 847.494.1102.

Seniors • December 15, 2022

Your Real Estate Needs in Retirement

by Karen Daugerdas

From 1985 to 2008, the average length of time homeowners typically stayed in their homes was six years. But according to the National Association of Realtors (NAR), that number is rising today. Homeowners are staying in their houses even longer.

If you’ve been in your home for more than a few years, you’ve likely built up significant equity that can fuel your next move. That’s because the longer you’ve been in your home, the more likely it is to have grown in value due to home price appreciation.

While home price growth varies by state and local area, the national average shows the typical homeowner who’s been in their house for five years saw it increase in value by over 50%. And the average homeowner who’s owned their home for 30 years saw it almost triple in value over that time.

Whether you’re looking to downsize, relocate to a dream destination, or move so you live closer to loved ones, that equity can help you achieve your homeownership goals. NAR states that for recent home sellers, the primary reason to move was to be closer to loved ones. Plus, retirement played a large role for those moving greater distances.

Whatever your home goals are, as a Senior Real Estate Specialist (SRES®) I can work with you to find the best option. I can help you sell your current house and guide you to the home that’s right for you and your lifestyle today. #retirementliving #sellyourhome #yournextmove #karenisourfamilyrealtor #coldwellbankerrealty

Buying a Home • December 6, 2022

Buyer’s Need to Make their Wish List

by Karen Daugerdas

There is no doubt that mortgage rates are higher now than they were last year. If you’re a buyer, the key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead. Don’t be tempted to stretch your budget, according to Danielle Hale, Chief Economist at realtor.com.

In other words, be aware of what’s a necessity for you and what’s a nice-to-have when searching for a home.

The best way to determine this is to put together a list of desired features, your Wish List,for your home search.

The first step is to get pre-approved for a mortgage. Pre-approval helps you better understand what you can borrow for your home loan, and that plays an important role in how you’ll craft your list. After all, you don’t want to fall in love with a home that’s out of reach. Once you have a good grasp of your budget, you can begin to list and prioritize all the features of a home you like:

• Must-Haves – These are your absolute necessities. If a house doesn’t have these features, it won’t work. These could be things like the distance from work or family, number of bedrooms or bathrooms.

• Nice-To-Haves – There are things you’d love to have but can live without. They aren’t dealbreakers, but if you find a home that hits all the must-haves and some of the these, it’s a contender, like a home office, two-car garage, or a fenced-in yard for the dog.

• Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner. Examples would be the modern farmhouse look or mid-century modern that you love, or multiple walk-in closets.

Finally, once you’ve created your list and categorized it in a way that works for you, give me a call. I’ll be able to help you refine the list further, coach you through the best way to stick to it and find a home in your desired area that meets your needs.

Karen Daugerdas, Coldwell Banker REALTOR®, 847.494.1102. #homebuying #realestate #coldwellbankerrealty #karenisourfamilyrealtor

Selling Your Home • November 28, 2022

Should you sell during the Holidays?

by Karen Daugerdas

If you think the Holidays should STOP you from listing your home now, here are 11 reasons to reconsider.

People who look for a home during the Holidays are more serious buyers.
The serious buyers have fewer houses to choose from during the Holidays. Less competition means more money for you.
The supply of properties will dramatically increase in January. Less demand means less money for you.
Houses show better when decorated for the Holidays.
Buyers are more emotional during the Holidays, and more likely to pay your price.
Buyers have more time to look for a home during the Holidays than they do during a work week.
Some people buy before the end of the year for tax reasons.
January is traditionally the month employees begin new jobs. Since transferees cannot wait until Spring to buy, you must be on the market now to capture these buyers.
You can still be on the market but have the option to restrict showings during the six or seven days during the Holidays.
By selling now, you may have an opportunity to be a non-contingent buyer during the Spring, when many more houses are on the market for less money. This will allow you to sell high and buy low!
The agents that are working this time of year have the same intense commitment level as the buyers that are looking during the holidays. If you have any questions, feel free to contact me at 847.494.1102 or karen.daugerdas@cbrealty.com. Whatever you celebrate, Happy Holidays!

Veteran's Administration Loans • November 11, 2022

Understanding VA Loans

by Karen Daugerdas

For over 78 years, Veterans Affairs (VA) home loans have provided millions of veterans & their loved ones with the opportunity to buy homes of their own.

“VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy,” according to the U.S. Department of Veterans Affairs.

In addition to helping eligible buyers achieve their homeownership dreams, VA loans offer other benefits to those who qualify:

Qualified borrowers can often purchase a home with no down payment.
Many other loans with down payments under 20% require Private Mortgage Insurance(PMI). VA Loans do not require PMI, which means veterans can save on their monthly housing costs.
VA-Backed Loans often offer competitive terms and mortgage interest rates.

Veterans United states:

“For the vast majority of military borrowers, VA loans represent the most powerful lending program on the market. These flexible, $0-down payment mortgages have helped more than 24 million service members become homeowners since 1944.”

John Bell, Acting Executive Director of the Department of Veterans Affairs Loan Guaranty Service, also explains why this program is so powerful:

“It provides early ownership for many people that would not have that opportunity to begin with. Since there’s no down payment, it allows people to hold their wealth and it gives them the ability to have long term financial security by being able to own a house and let that equity grow.”

Homeownership is the American Dream. Our veterans sacrifice so much in service of our nation, and one way we can honor and thank them is to ensure they have the best information about the benefits of VA home loans.

Thank you for your service!

Buying a Home • October 5, 2022

Should You Still Consider Buying in this Real Estate Market?

by Karen Daugerdas

The rise in mortgage rates & mounting economic concerns have some people questioning: should I still buy a home this year? While it’s true this year has unique challenges, it’s important to think about the long-term benefits of homeownership before making a decision, according to reports from Keeping Current Matters.

If you know people who bought a home five, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. Why? The reason is tied to how you gain equity and wealth as home values grow with time.

The National Association of REALTORS^® (NAR) says “Home equity gains are built up through price appreciation and by paying off the mortgage through principal payments.”

Even though home price appreciation has slowed lately, home values have still increased significantly in recent years.

Data from the Federal Housing Finance Agency (FHFA) shows just how noteworthy those gains have been over the last five years. Home prices grew on average by almost 64% nationwide over that period.

That means a home’s value can increase substantially in a short time. And if you expand that timeframe even more, the benefit of homeownership and the drastic gains you stand to make become even clearer:

Nationwide, home prices appreciated by an average of over 290% over roughly a 30-year span.

While home price growth varies by state and local area, the nationwide average tells you the typical homeowner who bought a house 30 years ago saw their home almost triple in value over that time. This is why so many homeowners who bought their homes years ago are still happy with their decision.

The alternative to buying a home is renting, and rental prices have been climbing for decades. So why rent and fight annual lease increases with no long-term financial benefit? Instead, consider buying a home. It’s an investment in your future that could set you up for long-term gains.

The bottom line? Don’t let the shifting market delay your dreams. Data shows home values typically appreciate over time, and that gives your net worth a nice boost. If you’re ready to start your journey to homeownership, reach out to me at 847.494.1102 & we’ll get you started. Karen Daugerdas, Coldwell Banker Real Estate Broker.

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