5 Reasons to Buy a Home in the Black Hills Region Now

Mortgage interest rates across the nation continue to be near-record lows making now a great time to buy a home in the Black Hills or Rapid City.  The housing market may have already hit bottom, but there are still plenty of great home buys to be had.

Here are a few more reasons to buy a home in the Black Hills now:

Job availability

The Labor Department recently announced that the jobless rate is now below six percent. Compared to January of 2010 when unemployment was at 9.7 percent it has come a long way. Job stability always impacts the housing market in a positive way.

Inflation

Home ownership can help hedge against inflation. The recent Consumer Price for All Urban Consumers was up 1.7 percent in August 2014 over last year, not including volatile food and gas prices. What does this have to do with home ownership in the Black Hills? When prices of goods rise, a large asset such as your home becomes more valuable.

Home Prices

Last year the price of homes nationwide rose on average in the double digits.  In the month of August the median existing-home price was $219,800, a 4.8 percent over August 2013. Home prices remain on the rise but are slowing over what we saw last year.

Interest Rates

In November and December of 2012 a 30-year fixed-rate loan was at 3.35 percent. This was the lowest rate in modern history.  Recently, Freddie Mac reported that the average 30-year fixed-rate mortgage was at 4.16 percent as of September.  Rates continue to be low but are expected to rise.

Demand

The most recent recession prevented nearly 2.5 million people from moving or forming households according to economists. Harvard’s Center for Joint Housing Studies is predicting that we will see on average 1.4 to 1.5 million new housing starts in the United States over the next decade.

Let us help you buy or sell your Black Hill or Rapid City home today. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact Jim Peterson at (605) 574-4444 or June Johnson at (605) 786-7356 at Integrity Realty Team, or email us to discuss how we can help you with all your real estate needs.

Our office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – ours are always open for your convenience! Like us on Facebook for all upcoming events!

Buying a Home in the Black Hills or Rapid City with Little or No Money Down

If buying your dream home in the Black Hills or in Rapid City is in your plans but you are struggling to come up with a large down payment, there are options available that may help.  Traditionally the more of a down payment you have the more likely you would be to obtain a mortgage loan. In the past mortgage lenders have required 20 percent of the home’s purchase price as a down payment, but that is not always necessary.  Here are some options that may be available to you.

VA Loan- No Money Down

The Veterans Affairs (VA) loan is guaranteed by the U.S. Department of Veteran Affairs and is a no-money-down program that members of the U.S. military and their surviving spouse’s are eligible for.  The VA loans do not require home buyers to carry mortgage insurance. They have lower interest rates than the FHA loans and require no money down from the borrower.

FHA Mortgage Loan- Low Down Payment

If you are purchasing your first home then a low down payment home mortgage that is insured by the Federal Housing Administration (FHA) may be the best option for you.  This mortgage is to help first-time home buyers by aiding them with low down payments, easier credit qualifications, and lower closing costs. A 3.5 percent down payment is customary for this type of loan.

USDA Mortgage Loan- No Down Payment

Another option for money down mortgage loan that requires no money down is a home loan program that is put in place by the U.S. Department of Agriculture (USDA).  The USDA Rural Housing Loan is available to potential buyers in certain suburban neighborhoods too.   The goal of this program is to improve the quality of life for those who live in rural areas. This loan requires no down payment.

Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact Jim Peterson at (605) 574-4444 or June Johnson at (605) 786-7356 at Integrity Realty Team, or email us to discuss how we can help you with all your real estate needs.

Our office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – ours are always open for your convenience! Like us on Facebook for all upcoming events!

What Makes the Mortgage Credit Score for Your Black Hills Home Different?

Did you know that at times your credit score is not actually the traditional generic credit score that you think of? When it comes to applying for a mortgage loan in the Black Hills area and across the nation you may be surprised to learn that your mortgage credit score is different than you would expect. There have been many potential homeowners who have become frustrated that the credit score they may have paid to have from a source such as FICO is much different than what the mortgage lender is telling them.

The truth is lending agencies have their own unique scoring formula that is weighted for mortgage-related factors that change your score.  The formula is designed to help lenders better determine if you’re a good candidate when it comes to the financial responsibility of a mortgage.  You are unlikely to find out what your mortgage credit score is until you are either approved or denied by a potential mortgage lender. That is why it is still important to obtain your credit report from a reputable agency and stay on top of things that may not be right on your generic credit score report.

When mortgage lenders pull your credit they conduct what is called a hard credit pull where they obtain the scores from the three credit bureaus – Equifax, Experian and Trans Union.   Typically lenders then use these scores to develop a range and use the middle one as your mortgage credit score. In today’s economy most VA lenders are looking for a score of at least 620.

An experienced Realtor®, like Integrity Realty, can help you make the most of your home buying options.

Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact Jim Peterson at (605) 574-4444 or June Johnson at (605) 786-7356 at Integrity Realty Team, or email us to discuss how we can help you with all your real estate needs.

Our office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – ours are always open for your convenience! Like us on Facebook for all upcoming events!

4 Reasons to Sell Your Black Hills Home Before Winter

Seasons are quickly changing here in the Black Hills area. The changes will bring the holiday season upon us before we even realize it.  If you are on the fence about selling your home here are four reasons to sell before winter hits.

1. Less Competition – Housing supply across the country continues to be under a six month’s supply. This means that in many housing markets across the nation there are not enough homes on the market to meet the demand for the number of buyers. The good news is that this is has helped boost home prices.  However, the amount of inventory homes for sale is about to change.  Many homeowners were unable to sell as a result of a negative equity situation, and that is now changing.  More and more homeowners are seeing positive equity in their homes as the housing market in the Black Hills area and across the nation strengthens. The choice buyers will face will only continue to increase and more homeowners decide to sell. Don’t wait until they all hit the market before you decide to sell your home.
2. Strong Demand- The latest reports show that the actual number of people physically looking to buy a home right now is higher than it has been in the last 12 months. That means there are buyers out there willing and ready to buy. As we continue to progress later into the year, holidays and weather can distract these buyers from searching for their dream home. Take advantage of the buyers ready to buy now.
3. Time to Move Up- If you are looking to move to a larger home then consider doing it now. Home prices are expected to increase by 19% by 2018. If you are planning on buying a higher priced home, it will cost you more the longer you wait. Mortgage interest rates are still low and they too are expected to be on the rise.
4. Timelier Process- One of the biggest complaints in regards to the housing market this year has been the length of time it can take from contract to closing. Lenders are requiring more paperwork than ever before. During the holiday season the delay can be longer.  Getting your Black Hills home on the market and sold before then will help prevent those delays.

Now is a great time to sell your home. Our expertise in the Black Hills or Rapid City markets will ensure you a stress-free experience. Contact Jim Peterson at (605) 574-4444 or June Johnson at (605) 786-7356 at Integrity Realty Team, or email us to discuss how we can help you with all your real estate needs.

Our office is in the heart of Hill City and as a tourist spot, restrooms are hard to find – ours are always open for your convenience! Like us on Facebook for all upcoming events!