For Immediate Release | Vacation Home Sales Surge | More Buyers See Opportunity in Vacation Homes: Some buyers are calling the vacation-home market the “perfect storm, Questions? Speak with Steve Direct/Text 865-964-9476 REAL ESTATE FOR BUYERS / SELLERS. https://knoxmoves.realgeeks.com/gatlinburg-and-pigeon-forge-area-almost-17000-rental-units/

Data shows more than 17,000 short-term rentals in Gatlinburg and Pigeon Forge; 2,000 in Knoxville

Properties that had at least one day booked or available during April 2023 were included in the map, according to AirDNA.

People traveling to East Tennessee likely stayed in the Gatlinburg or Pigeon Forge area, according to AirDNA.

The company tracks vacation rentals and analyzes data about occupancy rates, pricing and other kinds of data points. They found that in April 2023, there were just over 2,000 available short-term rental units in Knoxville. The properties included on the map had at least a day booked or available during the month.

In the broader Gatlinburg and Pigeon Forge area, they found there were almost 17,000 rental units. The company also said more than half of these units were cabins.

Airbnb, a popular short-term rental company, said they believed more people went to Gatlinburg and Pigeon Forge for Memorial Day because of the weather and the number of available summer activities.

"I just can't imagine a better place to be right here, right now, than in East Tennessee. I mean, the weather's perfect. You're up in the mountains, grills everywhere. I mean, it's just explosive popularity," said Ben Breit, a spokesperson for Airbnb.

They expect to see another spike in short-term rentals during football season in East Tennessee.

ONE+ Benefits

Increasing interest rates, housing prices and inflation have made many pause their home search. Not anymore. If you’re in a similar situation, we can help you get into your new home – without a hefty down payment.

We know that the down payment is one of the biggest obstacles home buyers face when they can otherwise afford a mortgage payment. ONE+ allows you to get a mortgage by putting as little as 1% down, combined with a 2% grant from Rocket Mortgage, you start with 3% equity and mortgage insurance is not charged to you.

Who is eligible?

ONE+ by Rocket Mortgage is for eligible first-time home buyers and repeat home buyers who make less than or equal to 80% of the area median income (AMI) of the location they’re buying in, Los Angeles County being $78,320 with credit scores of 620 or better, on single-unit, primary residence only.

It’s only available for purchase loans with a maximum loan amount of $350,000 and can’t be combined with other promotions although temporary rate buydown options are available if they come from the builder or agent.

Are there other low down payment options if I don’t qualify for this program?

There are several other low down payment options that may be available to you depending on your situation. For example, if you need to qualify with a higher income, you can still put as little as 3% down on a conventional loan as a first-time home buyer. If your credit score is 580 or better, you can put 3.5% down for an FHA loan.

If you're thinking of buying want to get connected to one of my preferred lenders w/ Rocket Mortgage, then contact me today!  Ben Dueweke Banker Rocket Mortgage T (313) 546-2193 C (586) 945-6591 F (855) 455-2531 NMLS# 1332763

Home price growth is decelerating but remains above the historic average. Home prices in the Knoxville metropolitan area rose 15.9% from the previous year in Q4 2022, according to the FHFA House Price Index (HPI).

• Rent growth remains high, although rent increases have moderated in recent weeks, with rents in the Knoxville metropolitan area up 14.06% from the previous year in Q4 2022 – outpacing the rent growth of 6.60% nationally during the same period.

• After a record-breaking year in 2021, home sales declined 9% year-over-year in 2022. The deceleration in home sales will likely continue this year, with home sales forecasted to decline between 10% and 12% in 2023.

• Despite the expected decline in home sales due to deteriorating affordability conditions, a lack of inventory continues to place upward pressure on prices, with home prices forecasted to increase between 3% and 5% in 2023.

• Knoxville’s rental market is poised to experience moderate growth in 2023, with rents forecasted to grow around 4% next year. • After reaching an all-time high of 98.86% in Q4 2021, the rental occupancy rate is forecasted to decline to an average of 96.5% in 2023.

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Obtaining a mortgage is a complex process that can be challenging for even the most sophisticated buyer.

 Here are some answers to mortgage questions that buyers ask us.

 A residential mortgage is a long-term loan (usually 15 or 30 years in length) provided by a bank, credit union, or other financial institution secured by the property the buyer is purchasing. If the buyer defaults (fails to make payments in a timely fashion), the lender may start foreclosure proceedings to force payment of the debt through the sale of the property.

 What are the most common types of mortgages?

There are wide variety of loans available to borrowers. Here’s a list you can share with your buyers:

Government-backed loans

These include Federal Housing Administration (FHA), Veteran’s Affairs loans (VA), and US Department of Agriculture (USDA) loans. Government backed loans offer various types of down payments, interest rates, repayment terms, and eligibility standards. 

Fixed-rate mortgages

Fixed-rate purchase mortgages are typically 15 or 30 years in length and the interest rate is locked for the entire term of the loan.

Adjustable-rate mortgages (ARMs):

The rate on ARMs fluctuates based upon changes in the index to which the ARM is based. According to BankRate.com.

 ARMs have variable interest rates which float up or down with the fed funds rate. This means if the fed funds rate goes up by a quarter of a percentage point, your ARM rate will increase as well at the next reset. However, there are caps on the amount of interest you’re on the hook for. There are three types of rate caps:

Initial adjustment cap: This is the maximum interest rate on an ARM, if the rate rises, after the fixed-rate period ends. Usually, 5 percentage points is the maximum amount.

Subsequent adjustment cap: This is the maximum rate after the initial adjustment.

Lifetime adjustment cap: This is the maximum interest rate you can be charged over the entire span of the loan.

Home Equity Loans (HELOCs)

A HELOC is a line of credit borrowed against the homeowner’s equity in their home. Their home equity is the difference between the appraised value of their home and their current mortgage balance. 

Interest only loans

In an interest only loan, none of the principal is paid down. Consequently, most interest only loans either require a balloon payment where the entire principal must be repaid at the end of the loan, or the loan shifts to being fully amortized after a period of being interest only.

Jumbo loans

According to Bank of America: 

A loan is considered jumbo if the amount of the mortgage exceeds loan-servicing limits set by Fannie Mae and Freddie Mac — currently $726,200 for a single-family home in all states (except Hawaii and Alaska and a few federally designated high-cost markets, where the limit is $1,089,300).

 Jumbo mortgages are available for primary residences, second or vacation homes and investment properties, and are also available in a variety of terms, including fixed-rate and adjustable-rate loans. A jumbo loan will typically have a higher interest rate, stricter underwriting rules, and require a larger down payment than a standard mortgage.

What are the interest rates for home mortgages?

Interest rates vary due to a wide variety of factors including the type of mortgage, the length (term) of the loan, the borrower’s credit score, as well as market conditions including the indices to which the various types of loans are based.

 What are the closing costs and fees associated with getting a mortgage?

Closing costs are the fees and expenses associated with finalizing a mortgage, including loan origination fees, appraisals, fees, title insurance, and escrow fees. They vary based upon the type of loan and the lender. As a rule of thumb, three percent of the loan amount is often a good estimate of the amount of closing costs.

 Closing costs are usually in addition to the down payment amount, although in certain situations, they may be rolled into the loan amount.

 Unlike rent, the buyer’s mortgage payment is paid at the end of the month rather than at the beginning. (For example, the payment made on July 1st is for the month of June.)

 What is the difference between pre-qualification and pre-approval for a mortgage? 

According to the CFPB, the pre-qualification letter is:

A document from a lender stating that the lender is tentatively willing to lend the borrower up to a certain amount. This document is based upon a certain assumptions and is not a guaranteed loan offer.

Rather than settling for a pre-qualification letter, buyers should always obtain pre-approval if possible. According to Bank of America:

Preapproval is as close as you can get to confirming your creditworthiness without having a purchase contract in place. You will complete a mortgage application and the lender will verify the information you provide. They’ll also perform a credit check. If you’re preapproved, you’ll receive a preapproval letter, which is an offer (but not a commitment) to lend you a specific amount, good for 90 days.

Pre-approval is a more in-depth process and provides buyers with a substantial advantage, especially if they find themselves in a multiple-offer situation.

 What are the documents I need to get a mortgage? 

The documents required for completing a mortgage application typically include proof of income (W-2 statements, tax returns, and pay stubs), credit history including current credit card balances and monthly payments, employment verification, recent bank statements, and identification (which typically includes the borrower’s residences for the last 10 years). Additional documents may be required depending on the buyer’s financial situation and the type of mortgage.

 How does the mortgage application process work? 

The mortgage application process consists of several steps: pre-qualification, pre-approval, loan application submission, underwriting, appraisal, title search, and closing. Each step involves the collection and verification of various documents and information, culminating in the final loan approval and property purchase.

The process can take as little as 30 days (and sometimes less) although 45-60 days is the most common. If there is a problem with the appraisal, a lien on the property, a title problem, or a different issue, loan approval can take much longer.

Ideally, buyers should be pre-approved for a loan prior to writing an offer on any property.

 What happens after I get approved for a mortgage? 

After being approved for a mortgage, you'll receive a loan commitment letter outlining the terms and conditions of the loan. You'll then proceed to the closing process, which involves signing the loan documents, transferring funds, and ultimately acquiring the property title.

What to expect next from the housing market

Heading into 2023, most housing analysts were on the bearish side. Among the 27 major forecasters, 23 expected national home prices to fall in 2023 under the weight of spiked mortgage rates. However, through the first few months of 2023, these bearish views haven't manifested.

CoreLogic: The real estate research firm expects U.S. home prices, as measured by the CoreLogic HPI, to rise 4.6% between March 2023 to March 2024.

Zillow: Economists at the home listing site forecast that U.S. home values, as measured by the Zillow Home Value Index, will rise 1.7% between March 2023 and March 2024.

Bank of America: Economists at the investment bank forecast that U.S. home prices will shift 0% in 2023.

Mortgage Bankers Association: The trade group's latest forecast has U.S. home prices, as measured by the FHFA US House Price Index, falling 0.6% in 2023 and another 1.4% dip in 2024.

Fannie Mae: Economists at the firm predict that U.S. home prices, as measured by the Fannie Mae HPI, will fall 1.2% in 2023 and another 2.2% dip in 2024.

Morgan Stanley: The investment bank expects U.S. home prices to fall 4% in 2023. "In November, the [Morgan Stanley] housing team published a home price forecast calling for a decline of 4% this year.

Moody's Analytics: The firm expects U.S. home prices, as measured by the Moody's Analytics Repeat Sales House Price Index, to fall 4.4% between the fourth quarter of 2022 and the fourth quarter of 2023.

Goldman Sachs: The investment bank expects U.S. home prices, as measured by Case-Shiller, to fall 6% in 2023.

KPMG: The Big Four accounting firm expects U.S. home prices, as measured by Case-Shiller, to fall 8% in 2023.

https://finance.yahoo. com/news/expect-next-housing-market-150946164.html

Bias Against FHA, VA Loans Hurts Most Vulnerable Buyers

May 9, 2023Working With Buyers, Working With Sellers, Financing & Credit, FHA Programs, Veterans Affairs, Residential Real Estate

By: Graham Wood https://www.nar.realtor/magazine/real-estate-news/bias-against-fha-va-loans-hurts-most-vulnerable-buyers

Sellers who refuse to accept offers from buyers with certain types of financing are denying homebuying opportunities to those who need them the most, experts say.

What moms look for when buying a home. |  JustlistedKNOXVILLE.com Open floor plans, a mud room, and an office off the main living space so parents can keep tabs on what kids are looking at online.

Traditionally, when people with children have looked to buy a new home, they were more concerned with neighborhood schools, walkability, and convenient shopping than with the actual layout of the home they’d be occupying.

Ten years ago, the only thing families were looking for was square footage and a large yard. Configuration of the home is more important now,” as people prefer open floor plans rather than separate dining and living rooms.

We see less and less formal spaces, as floor plans with separate dining rooms aren’t as preferable as a larger kitchen, often not just with one large central island, but two islands. Everything happens in the kitchen. Kids use the islands now for breakfast, lunch and dinner.

Separate home offices are out too, replaced by an office nook off the main living space so that parents can keep tabs on what kids are looking at online. You want a family office that’s very visible with a direct sightline to the kitchen.

Moms want — a large kitchen space, open floor plan, and even laundry space on the same floor with room to fold laundry so they can keep an eye on everything.

The location of the garage also counts with many moms and parents. If there are stairs to and from the garage, are you going to be willing to go up and down them carrying a child in from the car.

Moms want — lots of built-in storage in bedrooms, attics, spaces under stairs and even hidden storage behind bookshelves where you can pile toys and clothes when company comes.

As kids get older, agents say that some clients want separate living areas for kids and adults.

Young families desire to be on the same floor but as the kids get older, have the master bedroom retreat on the main floor, and have the kids have their own space, with bedrooms on the separate floor and separated so they don’t share a common wall to allow for privacy. Daniel Goldstein is a personal-finance and real-estate reporter for MarketWatch. com