Bubble Alert! Is it Getting Too Easy to Get a Mortgage? | Matthew Stewart Real Estate Team | Roseville | Granite Bay |Rocklin

Bubble Alert! Is it Getting Too Easy to Get a Mortgage?

There is little doubt that it is easier to get a home mortgage today than it was last year. The Mortgage Credit Availability Index (MCAI), published by the Mortgage Bankers Association, shows that mortgage credit has become more available in each of the last several years. In fact, in just the last year:

More buyers are putting less than 20% down to purchase a home. The average credit score on closed mortgages is lower. More low-down-payment programs have been introduced. This has some people worrying that we are returning to the lax lending standards which led to the boom and bust that real estate experienced ten years ago. Let’s alleviate some of that concern.

The graph below shows the MCAI going back to the boom years of 2004-2005. The higher the graph line, the easier it was to get a mortgage.

Mortgage availability index

As you can see, lending standards were much more lenient from 2004 to 2007. Though it has gradually become easier to get a mortgage since 2011, we are nowhere near the lenient standards during the boom.

The Urban Institute also publishes a Home Credit Availability Index (HCAI). According to the Institute, the HCAI:

“Measures the percentage of home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates … it is easier to get a loan.”

Here is a graph showing their findings:

Housing Credit Availability Index

Again, today’s lending standards are nowhere near the levels of the boom years. As a matter of fact, they are more stringent than they were even before the boom.

Bottom Line

It is getting easier to gain financing for a home purchase. However, we are not seeing the irresponsible lending that caused the housing crisis.

CONTACT:

Matthew Stewart Real Estate Team @ Realty World for more information regarding selling or purchasing a home.  With 18+ years and hundreds of homes SOLD success experience, we are here to help you realize your real estate goals.  This post was original from KCM – Keeping Current Matters.

How to Help A Senior Downsize After A Spouse’s Death

Many seniors have started downsizing in retirement. Instead of sticking with the big house they bought decades ago, they’re selling it and moving into a new home that’s smaller and more convenient.

This is a major life change, so it can generate some anxiety. If that senior also recently lost their spouse, they are facing a different set of challenges. That’s where you can help. By knowing whether downsizing is right for the senior and helping sort their belongings, you can make this change easier to handle. This is especially true if the senior is suffering from Alzheimer’s.
SENIOR COUPLE

 

 

 

 

 

 

 

 

 

 

 

Image Source: Pixabay

 

Why Seniors Downsize After Losing A Spouse

For many seniors, downsizing is a great idea. Kiplinger explains that moving to a smaller home can help a senior save money, time, and effort. As they grow older in retirement, these savings can really help their quality of life. In addition, the loss of a spouse is a terrible event to endure. Moving can help the grieving process by having fewer reminders of the loss.

But how do you know if that senior is ready to downsize? There are a few questions to ask that can help make that decision.

  1.  Do they need the extra money?
  2. Do they have a lot of equity in their old home?
  3. Has the area significantly changed since they bought the house?
  4. Is taking care of the property becoming troublesome?
  5. How Seniors Can Downsize Comfortably.
  6. If you’ve convinced the senior that downsizing makes sense, it’s time to start sorting and packing. Because they’re moving into a smaller home, they will need to downsize their belongings as well. This includes the belongings of the spouse they lost.

Caring.com has some recommendations to make the sorting process go more smoothly:

  • Plan out the sorting and packing with plenty of time to spare. This process will take a while, and your senior friend might need time to reminisce and process feelings of grief. Start early, and break the process down into pieces instead of planning all of it in one weekend.
  • Help the senior focus on possessions that are used the most. Some possessions will need to be discarded. If that VCR hasn’t been used in years, it can probably go.
  • If the senior has any heirlooms or legacy gifts, encourage them to give these special items away to family now. This can keep treasured mementos in the family while having less to move.

Since this move is going to be emotionally trying for the senior, make sure you communicate well. Show respect and care by giving the senior time to process the emotions brought up by the move. Expect that there will be some sadness and anxiety. Give the senior the room to experience these emotions.

 

Helping A Senior With Alzheimer’s To Downsize

If your senior friend has Alzheimer’s, they can still downsize both their home and possessions after the death of their spouse. It just takes a little more help from you.
Although you might be tempted to leave them out of the process, it’s better to involve them as much as possible. This helps the senior feel respected and independent.
Bring them to their new home. Walk around the place with them so they can start to feel comfortable there. Since Alzheimer’s can affect memory, be prepared to do this a few times.
Stay positive through it all. Anxiety and stress can be contagious. If you are clearly upset during the downsizing, your senior friend will likely get upset as well. When a senior with Alzheimer’s sees you’re doing fine, they’re more likely to stay calm.

Downsizing Can Be Done With A Senior

Any move can be stressful, but when a senior is also grieving the loss of their spouse, the challenges can seem insurmountable to them. That’s why you need to help the senior know when it’s time to downsize and how to sort through their possessions. Alzheimer’s or not, your senior friend needs your assistance.

written by: Michael Longsdon
mike@elderfreedom.net

The DO’S and DONT’S when getting a home loan | Matthew Stewart Real Estate

There are some clear things that you should DO and then some things that you definitely DON’T do when obtaining a home loan. Matthew Stewart of the Matthew Stewart Real Estate Team at Realty World American River Properties provides a list of the DO’S and DONT’S when getting a home loan.

There are things you should DO and then things you DON'T do when getting a home loan....
There are things you should DO and then things you DON’T do when getting a home loan….

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Matthew Stewart Real Estate Team at Realty World American River Properties has been selling in the greater Sacramento Region, including Sacramento, Placer, and El Dorado Counties for 17+ years and has hundreds of homes SOLD success experience to work with you through the process of buying and selling. Working with sellers and buyers in Roseville, Granite Bay, Rocklin, Loomis, Lincoln, Folsom, Fair Oaks, and many more surrounding cities, Matthew Stewart and his team have the knowledge and experience to get the job done for you.

DIAMOND WOODS – West Roseville CA, 95747 – Matthew Stewart Real Estate

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Diamond Woods in West Roseville, CA 95747 is a hidden gem close to everything but far enough away from the hustle and bustle you sometimes forget you’re in the city.  With its spacious greenbelts and nature preserves, to its walking and bike riding trails, to its many community parks, Diamond Woods and Diamond Creek are very special.  Learn more in the video provided by Matthew Stewart Real Estate Team at Realty World American River Properties.

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DIAMOND CREEK – West Roseville CA 95747 | Matthew Stewart | Roseville | Granite Bay | Rocklin

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The Matthew Stewart Real Estate Team stumbled onto Diamond Creek, much like many of its current residents.  Many were living in the San Francisco Bay Area and would come up to Roseville and Granite Bay for drives on gorgeous spring, summer, or fall days.  They would venture out to West Roseville, lured by all of the aggressive new home builder advertising, but along the way they would take a turn here or there and somehow end up in Diamond Creek along Blue Oaks Blvd and Woodcreek Oaks Blvd.  Once you find Diamond Creek – you love it!  With its many nature / greenbelt areas encouraging walking or riding on the trails winding through out, and its award winning schools and parks, Diamond Creek is a phenomenal place to live.  Check out the informative video the Matthew Stewart Real Estate Team has created to learn more.  If you desire more information or private showings of homes located in Diamond Creek, Diamond Woods, or surrounding areas, including Granite Bay – contact Matthew Stewart directly at (916) 718-2979