Pay Stubs For a Loan May Be No More?

Pay Stubs For a Loan May Be No More?

Borrowers may no longer need to worry about collecting pay stubs for a home mortgage application. Mortgage finance company Fannie Mae announced Monday that it would allow lenders to use employment and income information from a database operated by credit bureau Equifax to verify borrowers’ creditworthiness. Fannie says it will no longer require lenders to rely on collecting physical copies of pay stubs and tax data, which has what traditionally has been required.

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Central Ohio Housing Report - February 2015

Central Ohio home prices rising quickly, with inventory at decades low

The average sale price of a home during the month of February was $180,527, which is a 10.4 percent gain over February 2014. The median sale price in February was $150,000, up 11.4 percent from a year ago.

 The average price is the total volume divided by the number of homes sold. The median is the midpoint -- half the homes sell for less, while half sell for more.

January and February have experienced significantly higher than normal sale prices due, in great part, to the lack of homes for sale right now,” said Kathy Shiflet, Columbus REALTORS® 2015 President. “We haven’t seen inventory levels this low since the 1990’s.”

At the end of February 2015, there were only 6,786 homes and condos listed for sale in the central Ohio region. This is the first time, since the 1990’s that inventory has dropped below 7,000.

There were 2,283 homes and condos put on the market last month - a 3.5 percent increase over January 2015 and a 2.4 percent increase over February 2014.

"Central Ohio homeowners are realizing it’s a terrific time to put their home on the market. I only anticipate the number of new listings to climb as the weather gets warmer in the coming months,” Shiflet said.

 There were 1,413 central Ohio homes and condos sold in February 2015, which is a 10.3 percent increase over the previous month and just a 1 percent decrease over February 2014.

 The number of homes in contract also rose to 16.1 percent over the previous month and increased 12.5 percent over February 2014.

 During the month of February, homes spent an average of 79 days on the market (from listing to close), down from 99 days in February of 2014.

 “The increase in homes sold and in contract is an indication that buyers are hungry and ready to pounce on inventory,” said Shiflet. “Buyers are eager, engaged and not wasting any time!”

 

Why Home Owners Need to Get Moving

Are you or someone you know thinking of selling this year? An article in CNNMoney recently highlighted several reasons why this spring would be the perfect time for home owners to get off the fence. After all, many markets across the country are still tilting in sellers’ favor. Here’s why:

  • Less competition: A limited number of homes on the market will help sellers nab top dollar, and may even spur bidding wars and multiple offers. The National Association of REALTORS® reports that inventory levels nationwide were at a 4.6-month supply in February. A balanced market is considered to fall between a five- to seven-month supply.
  • Mortgage rate hikes loom: Mortgage rates are still sitting near historical lows, with the 30-year fixed-rate mortgage hovering under 4 percent. The low rates have helped push more buyers into the marketplace, but they could also be a good thing for sellers who are looking to rebuy. However, rates aren’t expected to remain this low for too much longer, which may prompt a rush this spring. "When interest rates are thought to be escalating, we see a wave up activity with people getting off the sidelines," says Budge Huskey, president and CEO of Coldwell Banker Real Estate.
  • Soaring rental costs: Also spurring more potential home buyers off the sidelines: Rising rental costs. Rental prices have increased 15 percent nationwide in the past five years in 70 metro areas across the U.S., according to NAR research. "Every time there's an increase, it triggers the decision processes on whether [renters] should go into the market and buy," Huskey told CNNMoney. "It allows others to move up the chain in the market."

 

Source: “4 Reasons to Sell Your Home Now,” CNNMoney (March 25, 2015)