Need to schedule a quick showing to have a shot at WINNING that hot new listing before it’s gone?

The Jason Brown Group

See a HOT new listing and in a hurry to get in and see it before it’s gone? Tired of calling listing agents and waiting forever for a call back? Down on the home buying process because every house you call on has already gone under contract? Avoiding a significant delay in getting a showing scheduled can be the difference between losing and WINNING that new listing… It does not have to be that way!

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Instead of calling the listing agent, contact The Jason Brown Group and you’ll be assured of getting a quick response to work on scheduling a showing. Want to schedule to get in to see multiple homes? Attempting to schedule four showings with four listing agents could costs you four days of your time… And the likelihood of losing out on the HOT new listings… It does not have to be that way! With just a little planning, a Jason Brown Group buyer’s agents can schedule to get you into MANY homes all in a row.

All buyer’s agents with The Jason Brown Group are experienced agents and licensed in both Kansas and Missouri, so we can show you ANY active listings in the metro area. When working with one of our buyer’s agents, YOUR best interests will be represented throughout the real estate process, which is critical because you can bet the listing agent with the sign in the yard is representing the home SELLER’S best interests.

Having a buyer’s agent assist you costs you nothing because the buyer’s agent commission is already factored into the price you see on all listed homes. So contact The Jason Brown Group today to let us know the addresses or MLS numbers of the homes you’re wanting to see. We’ll get back with you quickly to work on scheduling showings…

Contact The Jason Brown Group to Schedule a Showing!

Posted by Jason Brown

 

How Will A 1% Rise In Interest Rates Affect Johnson County Kansas Home Buyers?

The Pulse Of The Kansas City Real Estate Market

Today’s amazing low interest rates make it one of the best times ever to purchase a home. If you’re a home buyer looking to purchase a home in Johnson County Kansas or the surrounding Kansas City area, you’ll want to take a close look at today’s low interest rates and consider what it would mean to you if you wait to buy and rates jump in the near future. It could be just as important to you as the sales price you’ll be looking at ever so closely.

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Let’s compare today’s 4% mortgage interest rates to how things would look if they jumped 1% in the near future. On a $200,000 home, a borrower’s monthly principal and interest payment at 4% would be $955. Should they wait to buy a home and rates have jumped to 5% then the monthly principal and interest payment would be $1,074.  That’s almost $1,500 more a year for the same home should mortgage interest rates go up 1%! So be sure you consider today’s historically low interest rates if you’re on the fence on whether now is the right time to buy a home.

 Posted by Jason Brown

Despite Tripling Of Gas And Bread Prices, Low Interest Rates Keep Kansas City Mortgage Payments Same As 20 Years Ago

Checking The Pulse Of The Kansas City Real Estate Market

The stats below have been sitting on my desk for some time now and I just got around to looking them over. It was eye-opening and something I wanted to share it here. The stats compare recent prices to prices from about 20 years ago. Take a look and you’ll see how much bread, gasoline, vehicles and home prices have gone up. Then take in that mortgage interest rates have been cut in HALF — that critical detail has kept the average monthly mortgage payment virtually the SAME as two decades ago.

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Gas prices have nearly tripled… Car prices have doubled… Average home sale prices have nearly doubled… Despite all this, because mortgage rates are at historical lows, the average monthly mortgage payment is virtually UNCHANGED! The Johnson County Kansas real estate market has been stable for well more than a year. Add in that mortgage interest rates have nowhere to go but up and that makes this one of the best opportunities ever to buy a first home or make the move up that you’ve been delaying.


Posted by Jason Brown

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Plan For At Least A 3.5% Down Payment And 580 Credit Score To Buy A Kansas City Home

Checking The Pulse Of The Kansas City Real Estate Market

Guidelines definitely vary from lender to lender but a typical baseline for securing a home loan will be having at least a 3.5% down payment and a 580 minimum credit score. FHA loans require a 3.5% down payment and conventional loans (i.e. loans backed by Fannie Mae and Freddie Mac) require a 5% down payment. A typical FHA loan requires a credit score of at least 580, however home buyers with at least a 500 credit score can obtain a FHA loan IF they have a 10% down payment. Most conventional loans will require a minimum 660 credit score.


The maximum loan FHA will allow varies from one U.S. county to another and to buy a home in Kansas City, Johnson County Kansas, Overland Park and the surrounding metro area, the maximum FHA loan permitted is $271,050. The maximum Fannie Mae conventional loan is $625,500, with loans over $417,000 being subject to more stringent loan requirements than homes below $417,000. At this time, both FHA loans and conventional loans allow a seller to pay up to 3% of a buyer’s allowable closing costs. But with today’s crazy markets, the rules are changing by the day…

The rules may have changed by the time you read this post. It’s a lot for even a seasoned Kansas City real estate agent to stay on top of, so take my advice and contact a knowledgeable LOCAL lender/loan officer who can guide you through the mortgage loan process. Need a great recommendation? This is one of the important aspects of the real estate process we help Kansas City home buyers with on a daily basis. Getting with a great loan officer is more important than ever because the rate of loans not closing is increasing across the U.S. and overlooking the smallest of details can doom your real estate transaction.

Posted by Jason Brown

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Importance Of Homeowner’s Insurance When Buying A Kansas City Home

Checking The Pulse Of The Kansas City Real Estate Market

Getting homeowner’s insurance in place is usually one of the last things on the mind of our Kansas City homebuyers. While it’s understandable that MANY other important things are going on, getting your insurance in place is a critical step in the home buying process. You definitely won’t want to have to make the decision of insurance company at the last minute because they often leads to over-paying. So start the process of selecting who you’ll use for insurance as soon as you’re through the home inspection process. This will allow you plenty of time to get multiple insurance quotes. Rates are also fluctuating greatly and the difference in rate quotes may surprise you.


Some important considerations when getting insurance quotes include… how high of a deductible are you willing to accept? Are you getting guaranteed replacement cost coverage? Is the outbuilding, detached garage or swimming pool covered? Do you have sewage backup coverage? How about the contents in the home? If you have lots of valuable “stuff”, this is even more important. After you buy the home, be sure you let your insurance agent know if you finish your basement. If you don’t, will it be covered if you incur a loss?

Sometimes getting insurance quotes is like getting quotes from moving companies… how expensive it is can vary greatly depending on the day and whether the company is aggressively seeking new business at the time. It’s possible you could get quoted a high rate in an attempt to run you off or worse, accept over-paying. To avoid this, be sure you shop insurance rates with several reputable insurance companies. Here’s a few places you can get started… State Farm InsuranceAll State InsuranceFarmer’s InsuranceGEICO InsuranceNationwide InsuranceAmerican Family Insurance.


Posted by Jason Brown

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Owning A Kansas City Home Has A Huge Effect On Our Economy

Checking The Pulse Of The Kansas City Real Estate Market

Wondering if housing really drives the economy? According to a study by NAR, one job is created for every two homes sold and homeownership accounts for more than 15% — over $2 TRILLION — of our U.S. GDP.  With the exception of many homeowners who purchased in 2006 and 2007, the financial reward of owning a home has been the single best investment most people have ever made. For those who haven’t done well or who have treaded water, there are still MANY other benefits to owning a home.

Though complicated to assess, the social benefits of home ownership are certainly huge. The NAR study indicates that homeowners pay 80% to 90% of federal income taxes collected. During our country’s great history, homeowner’s net worth has been about 40 times greater than that of renters. People who own homes also contribute greatly to stabilizing the neighborhoods in which they live, enjoy reduced crime in their areas and generally live more enriched lifestyles than those who rent.


Posted by Jason Brown

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What’s Next? 20% Down Payments To Secure A Conventional Loan When Buying A Kansas City Home?

Checking The Pulse Of The Kansas City Real Estate Market

QRM stands for Qualified Residential Mortgage (QRM) and it will change the way mortgage lending is done should the proposed loan regulations be put into effect. Only home buyers who make a 20% down payment would be considered a “Qualified Residential Mortgage”. Since 85% of home buyers today can NOT make a 20% down payment, we’re talking about changes that would have very serious consequences on most home buyers ability to secure a home loan. I’ve seen some estimate it could mean THREE percent higher interest rates for the 85% of home buyers who do not have a 20% down payment. This could definitely be the straw that breaks the camels back.


Higher interest rates would lead to buyers purchasing smaller homes and forcing many who want to buy a home to instead rent. All of this will put downward pressure on home prices at time when we’re looking for ways to promote a real estate recovery. Also consider that mortgage lenders would be required to hold (not sell off) 5% of the non-QRM loans. Again, that’s an estimated 85% of loans made today. Many lenders sell off ALL their loans, so requiring lenders to hold 5% of these loans will lead many lenders to stop making these types of loans. The fewer lenders there are in the market place, the worse off consumers will be.

If some of the estimates I’ve seen are correct, these proposed changed would have eliminated 1/3 of home buyers we’ve seen in recent years. Imagine what that would have done to our housing market.  Going forward, the buyers who would still buy a home under the new guidelines will surely have to buy much smaller homes. That would hang many moderate and upper bracket homeowners/home sellers out to dry… which is the last thing the housing market needs. Fortunately multiple powerful groups are fighting these proposed changes. The groups include AFL-CIO, NAR, SEIU, NAACP and NAHB, among many others.


Posted by Jason Brown

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Potential FHA Loan Changes Would Have A Drastic Effect On Kansas City Home Buyers… And Home Sellers

Checking The Pulse Of The Kansas City Real Estate Market

Mortgage industry consultant Brian Chappelle estimates that FORTY PERCENT of home buyers would fall out of the market-place if FHA raises the minimum down payment requirement from 3.5% to 5%. I just don’t see how we can afford to implement these types of drastic changes with a real estate market – and economy – already on edge. The lack of buyer demand is already harming property values across the country and imagine what would happen if 40% of home buyers disappeared due to sweeping FHA mortgage changes.


Increasing the minimum down payment from 3.5% to 5% on a $200,000 Johnson County Kansas home, would increase the home buyer’s down payment from $7,000 to $10,000. That’s a very significant THREE THOUSAND dollars and anyone thinking the potential FHA changes would be insignificant should think again.  $3,000 is guaranteed to run many home buyers we’re working with right now out of buying home. That will mean less demand for area home sellers and we all know what that means — lower sales prices.  These changes are very likely to happen though as we work to lessen the government’s involvement in the housing market. I hope there’s someone with a good head on their shoulders suggesting they SLOWLY (incrementally?) implement these types of changes. If not, it’s going to be a bumpy ride. 


Posted by Jason Brown

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Some Background On What To Expect At Your Closing When Buying Or Selling A Kansas City Home

Checking The Pulse Of The Kansas City Real Estate Market

The real estate closing is usually the last big hurdle when buying or selling a home. Most closings are an after-thought but what goes on behind the scenes is vital to a successful real estate transaction and can surprise a buyer or seller — and even a seasoned Kansas City Realtor on occasion. Kansas City home buyers and home sellers who are nearing the end of their home purchase or home sale need the transaction to go off without a hitch and they don’t want to get confused with the terminology, closing costs and escrow.

In the Kansas City metro area, most real estate closings occur at a title company. In some other parts of the country, real estate closings occur at an attorney’s office. Virtually all home sellers close at the title company here in the metro area.  With home buyers, probably 80% close at the title company as well. But it’s the buyer’s lenders choice on whether the loan will close at their own mortgage office or at the title company. Most lenders choose to not mess with handling the closing and let the title companies earn the profit from doing so.

You may hear a closing referred to as a settlement closing or an escrow closing and they all mean the same thing. The result in any case is the transfer of ownership of a property from one owner to another. The average closing occurs about 30 to 45 days from going under contract, but some transactions can close quicker if needed. This is especially true on cash closings and/or closings on vacant homes. If a home is occupied by the home seller or if the buyer is getting a mortgage loan, it’s pushing it to try and close the transaction quicker than 30 days out.

The amount of closing costs involved can vary greatly from one transaction to another. There’s many factors that are outside of the title company’s control and a big one is how much a particular lender may be charging the buyer to provide the loan. Whether or not an appraisal and/or home inspection are done could effect the final closing cost amount. Title insurance costs also vary and the more expensive the home, the more expensive the title insurance will be (for home sellers). There are other items to consider as well, including varying government charges, taxes and recording fees and most loans will require a buyer to put cash in an escrow account to pay property taxes and insurance as they come do.

In addition to handling the closing, the title company has the important job of providing the title insurance. Title insurance protects a homeowner’s claim to the property because the title company researches and assures the seller and buyer that there are no other issues or claims to the title on the property.  Once everything is in order, we’re ready to schedule a closing time. The title company typically sends the buyer and seller a preliminary copy of the HUD settlement statement. This document details the financial figures of the transaction – for both the seller and the buyer – and this helps to ensure everyone is on the same page for the closing that is about to occur.


Posted by Jason A. Brown

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Higher FHA Mortgage Payments For Kansas City Home Buyers Now In Effect

Checking The Pulse Of The Kansas City Real Estate Market

The FHA changes we discussed back in February went into effect this week. This means higher mortgage insurance premiums on all FHA loans.  For example, Rick Woodruff with Metropolitan Mortgage explains this means a $33 higher monthly mortgage payment on a $163,000 home (with a 3.5% down payment). A Mortgage Insurance Premium (MIP) is the equivalent of Private Mortgage Insurance (PMI) seen on a typical conventional 15-year or 30-year fixed rate mortgage, where the borrower has less than 20% down payment (less than 20% equity in the home).

More than half of loans being provided today are FHA loans, so mortgage payments just got more expensive more a lot of potential home buyers. The increased fee is necessary to replenish the FHA’s cash reserves – so they can keep the FHA program afloat – and to meet the 2% minimum cash reserves that Congress mandates they have in cash on hand. This change only affects loans where the buyer goes under contract after today’s date. All buyers who went under contract yesterday or earlier and/or who already have a FHA loan in effect are unaffected by this change.


Posted by Jason A. Brown

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