What To Expect With the Mortgage Process

 

Purchasing a home is a big life decision and the mortgage process is a big part. Especially in today's hot housing market, a buyer needs to have all their ducks in a row. Here are several steps to take which will walk you through the mortgage process.

1. Get a free rate quote (or two)

With anything you buy, you always shop around for the best deal. This is the same for mortgages. You will want to obtain a free rate quote from at least a couple of different lenders. Before contacting a lender, have the answers to these questions. Are you buying a home or refinancing your current mortgage? What kind of home are you looking for? Will this be your primary residence? When are you looking to buy/refinance? Where do you want to live? The majority of lenders will want you to answer these questions when you are asking them for a free quote.

2. Choose a loan originator

Once you find the best quote, you will want to choose a loan originator. Once you have chosen a loan originator, they will be your point of contact when it comes to the mortgage application. The loan originator is the middle man and can make communication between all parties run smoothly.

3. Get preapproved

In the current seller's market, this is a must. Getting preapproved lets a seller and an agent know that you as a buyer are serious. In order to get preapproved, you will need to give your chosen lender your credit score, income, debts, and any other financial obligations. Once you are preapproved, the lender will give you a letter that will last 90 days.

4. House shop

Once you know the amount you are preapproved for, it is now time to shop for a home. Remember to choose the right Realtor who can help you narrow down your options.

5. Make an offer

When you and your Realtor have found your dream home, you need to make an offer. This is where your preapproval letter comes into play. A preapproval letter will give you a leg up on other buyers.

6. Lock your rate and get an appraisal

Once your offer has been accepted it is time to get into the loan options and rates. You will want to choose the right type of loan and rate that fits your budget. During this time you will also want to get an appraisal on the home. Usually, the appraisal is requested by the lender. The lender wants to make sure the loan amount is not over what the value of the home is appraised for.

7. Apply for financing

Now is the time to apply for your loan. Plan on a week to two weeks to finalize your loan application. You will need to gather all your documentation which includes your most recent pay stubs, employment records, bank statements, tax returns, government-issued ID, and social security number.

8. Underwriting

This is part of the mortgage process where a lender will assess the risk of approving your loan. This is the final decision stage for your loan application.

9. Final review

Once your loan is approved it is time to go over all of the paperwork. Your lend will review everything and make sure it is ready for closing. You will also get a closing statement which will show you how much money you need to bring to the closing.

10. Closing time

The final step is the closing. At the closing, you will sign documents and pay the closing costs. Once you have completed this, you are given the keys to your new home!

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A Kitchen's Design Begins With the Layout

The kitchen is the heart of the home and every kitchen has its own layout. A luxury kitchen is not defined by the best design, appliances, fixtures, or features but by the layout. Industry professionals say there are six different categories the layout of a kitchen falls under.

1. The Island

This style type of kitchen will fit most home designs. It gives additional counter, cabinet, and appliance space. There will need to be a large footprint allotted to the kitchen as the island will take up a good bit of space. An island requires space for itself and space for walking room around the island.

2. The Peninsula

A peninsula kitchen works great in a home with a kitchen that has many walls. Benefits include an extension of cabinet space and counter space that looks out into open space. Similar to the island, the peninsula is not free-standing and takes up less space. It does close off part of the kitchen almost like a wall would.

3. The One-Wall Kitchen

A one-wall kitchen is the best layout for saving space. This is a great layout for lofts, studios, or extremely long kitchens. In this style of kitchen, everything is fixed to a singular wall. This creates a very clean design with plenty of room. The only downside is the lack of prep space. An island can be added in front of the wall to create more prep space but this takes this layout and changes it to more of a galley kitchen.

4. The L-Shaped Kitchen

An L-shaped kitchen is the best layout to get the most corner space and fits into any home design. This layout can limit foot traffic in a large kitchen. The space made by the L can have many unique features such as a large kitchen island.

5. The Galley Kitchen

A galley kitchen is a little bit on the smaller footprint side. There can only be one cook in the kitchen so to speak. This layout maximizes functionality in a narrow space. The only home design this layout will not work in is a layout with a great room or keeping room concept. It is not functional as an eat-in kitchen and is isolated from the rest of the home.

6. The "U" Kitchen

A "U" kitchen is great for creating an open cooking space with tons of cabinetry, prep space, and functionality for multiple cooks. This type of kitchen can have an eat-in kitchen or huge island. This layout is perfect for a large footprint and it needs at least 2 walls if not 3.

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The 2022 Housing Market and How Interest Rates Will Change It

 For the past few years, the housing market has seen historically low-interest rates but this might change. Sources report that we will be faced with rising interest rates throughout 2022. Here are some tips that professionals in the industry look at when determining the change housing market.

This year the market is starting to slow down on refinancing and pick back up with purchasing housing. The 30-year loan average interest rate jumped from 3.5% to 3.64% in just two weeks int the beginning of the year. Home prices also increased close to 8% due to the fear rates will start to rise.

Fortunately, we no longer have stay-at-home orders and the unemployment rates are down 2.8% from this time last year. More homes are being built so the low inventory problem is resolving. Data shows that there is a 34% increase in new homes being built across the country. Job security and more inventory should encourage hopeful homebuyers.

The shift in remove work has also changed what homebuyers deem important in a home. As of September 2021, 45% of full-time employees worked remotely. More people are looking for a single-family home with more bedrooms and a finished basement.

The 2022 market is looking good. Just because interest rates are rising, doesn't mean now is not a good time to purchase a home. There are many factors that come into play that help balance the housing market event with high home prices and rising interest rates.

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St. Tammany Parish Council Delays Moratorium on Residential Rezoning

 St. Tammany Parish Council will have a proposed moratorium that will ban rezoning that will increase subdivision density. The proposal will not appear on the agenda until late spring. Parish President Mark Cooper believes the moratorium will help with accurate planning and assessing for growth in St. Tammany.

"The reality in St. Tammany Parish is that development is outpacing infrastructure improvements and has been for years,” said Cooper.

Originally the moratorium was to be put on the agenda for the March 3rd vote but was delayed. Jerry Binder explained that the agenda for March 3rd's meeting already had nine zoning appeals and thirty proposed ordinances. Five of the agenda items were to overturn Zoning Commission denials of rezonings for Timber Branch II, a controversial development.

The moratorium would not affect any commercial-zoned properties and would not apply to any development of any property under its current zoning. The purpose is for the moratorium to halt any rezoning or resubdivision of residential properties that would allow density greater than one house per acre.

Many residents are concerned and want the moratorium to pass. They are frustrated with the overdevelopment in their community that is negatively affecting the roads, drainage, water, and sewage. In fact, a group called the Concerned Citizens of St. Tammany has suggested to the council to not allow any high-density appeals to be approved until the moratorium is voted on.

"The time has come when we should stop codling developers seeking discretionary rezoning," says Rick Franzo, a member of the Concerned Citizens of St. Tammany.

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The End of 2021 Saw Gains For Private Residential Spending

 

The National Association of Homebuilders' Census Construction Spending reported that the total private residential construction spending jumped 1.1% at the end of 2021. In December 2021 spending was at an adjusted annual rate of $810.3 billion with a total that was 15% higher than in December 2020.

Single-family construction spending rose to a $435 billion annual pace which was up 2.1%. Multi-family constructions spending rose 0.4% but was hurt a little due to supply chain issues. In fact, home building is still facing supply chain issues and labor shortages.

Private non-residential spending stayed the same towards the end of 2021. December saw a rise from November 2021 which was 9.1% high than a year ago. The largest month-over-month nonresidential spending increase was made by the class of office ($0.49 billion), followed by amusement and recreation ($0.4 billion), and class of lodging ($0.37 billion).

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Top Three 2022 Real Estate Investment Trends

 Today's housing market is booming and prices are continuing to rise. The National Associations of Realtors has reported that the median price of existing single-family homes has risen by double-digits in 78% of the tracked markets. Real estate investing is also increasing, and investors depend on key trends in the market. Here are the top three trends for 2022.

1. The Continuation of Historically Low-Interest Rates

Even with talk that the interest rates will rise next year, they still will be at historical record lows.  David Bianco, chief investment officer for the Americas at DWS Group, expects two quarter-point rate hikes next year. This should not be too much of a concern due to the 30-year Treasury bond is still holding at less than 2% and the 30-year fixed mortgage rates are a little above 3%. These lows will keep the housing market booming.

2. The Emergence of Alternate Property Sectors

With the expansions due to the hot market, investors are keeping an eye out for these opportunities. Investors are watching for single-family build-to-rent residential opportunities. Many homebuyers are still shying away from the cities after the pandemic scare. Due to this shift, build-to-rent properties are becoming popular. According to industry research, single-family homes built between 2019 and 2020 for rent increased 30%. "Last-mile industrial real estate has also become a big interest. Online shopping has grown especially during stay-at-home orders making warehouses a lucrative investment. Another popular opportunity currently is multi-asset real estate in the South East. Multi-family communities have steadily gained popularity.

3. The Sunbelt is Positioned for Further Appreciation

The Sunbelt includes cities that are located in the southern third of the country. The area is seeing a very strong demand for real estate. This strong demand is due to population growth, business-friendly local governments, and milder climates. Census data reports that the Sunbelt is home to 10 of the 15 fastest-growing cities in the U.S. States such as Tennessee, North Carolina, Texas, and Georgia are business-friendly which attracts higher real estate prices. A warmer climate allows for fewer maintenance expenses as well.

If you are a home buyer or an investor looking for real estate, don't do it alone. Contact a Realtor who can help you purchase a home or an investment property.

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Aldi Soon To Have Locations on the Northshore

 Aldi has already opened its first store in Louisiana earlier this year and has announced it will open three additional locations around the New Orleans area. Those locations will be Metairie, Slidell, and Covington.

Aldi is a German-based company that began to establish stores in the U.S. in 1976. Now there are over 2,100 stores in 37 states. It soon will become the country's third-largest grocery retailer in terms of location. Most stores are around 12,000 square feet and have less than a dozen employees.

The first store is located at 4510 Ambassador Caffery Parkway in
Lafayette opened in February 2022. The company purchased the old Toys "R" Us building in Slidell for $2 million which will be converted into an Aldi. They are planning a store in Marrero which will be in the Old Belle Promenade Mall. Land has also been purchased in Baton Rouge and stores are planned for Lafayette and New Iberia.

This comes as no surprise as Aldi is building a regional headquarters and distribution hub in Loxley, Alabama. The $100 million project, close to Mobile, will be completed at the end of the year. The new project will service close to 100 Gulf Coast locations which include southern parts of Louisiana, Mississippi, Alabama, and Georgia, along with the Florida Panhandle.

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