Kat Geralis Home Team Wilmington DE Real Estate News Archives

2013 saw a major recovery in the Wilmington real estate market and 2014 is expected to continue that trend. This year, homebuyers and home sellers alike will benefit from Wilmington, Newark real estate as the market continues to strengthen.  

In fact, according to MSN Real Estate, "Most experts predict a slower, steadier, more even "pace" this year in most of the country, even as mortgage rates and home values inch up." And while limited inventories may not be at the forefront of this year's Wilmington DE real estate market, there are a few other things to keep in mind when buying homes in Wilmington and Newark this year.  

Buy When You're Ready
Don't feel the need to buy a home in Delaware during the busy spring and summer real estate rushes. And don't feel out of the loop because you didn't strike during the hot market pick-up last year. You may have been able to get a better mortgage rate, yes, but you should buy a home when you and your finances are ready. The right time to buy a home will always be when you can afford it.  

Buying a Home is a Marathon, Not a Sprint
When you purchase a laptop or new phone, the process is quick. You find what you like and you buy it— not the same with real estate. Take your time finding the right home for you, not just one that will simply "do" for now because you can't find anything similar to what you truly want to own. Just as MSN Real Estate says, "Remember that a home is your place to live first and an investment second. Take the time you need to find the right home."  

Don't Crunch the Numbers on Your Own
If you're in the market to buy a new home, you're liking reading real estate articles and watching the news to hear all kinds of data and statistics on rates and levels. Don't crunch the numbers on your own! Consult your real estate agent and keep your own goals and numbers at the top of your mind. When you have questions about what you hear, consult your real estate agent.

Keep It Local
Real estate is all about the local markets. What's happening in other areas of the country that makes headline news is not necessarily happening or characteristic of the real estate market in Wilmington and Newark. Remember that our area of the country has its own real estate identity— if you have questions, just ask. The best thing you can do is chat with someone who has the knowledge of the area and the market.

Are you ready to take a look at the area homes for sale and begin the process of buying Wilmington, DE real estate? Let me help you decide which type of property best fits your needs for homeownership. Together we will work to find the best home for both you and your family. You can also learn more about the buying process at our FREE First Time Homebuyer Seminars! 

As always, feel welcome to Contact Me for more information about Homes for Sale in Wilmington and Newark. I am here to help you with your homeownership goals!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
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If you've been on the fence about buying real estate in Wilmington, DE, you may be anxious to know where the rising mortgage rates are headed. In today's housing market, this is the primary factor— along with rising housing prices— that decide whether Wilmington DE homebuyers will take the steps forward and start the real estate journey.

According to the Mortgage Bankers Association forecast, "mortgage rates will likely rise above 5 percent in 2014 and average 5.3 percent by the end of 2015."

From where things stand now in real estate in Wilmington, DE, that's a big difference. In fact, just this week the Mortgage Bankers Association reported that the average 30-year fixed mortgage rate was at 4.33 percent which is the lowest average since June.

What's keeping the rates so low? The Federal Reserve's bond-buying program that will soon begin to taper down as we move into 2014. "The MBA expects that the Federal Reserve will decide to taper its $85-billion per month bond-purchasing program in early 2014 and end it altogether in September 2014," reported Realtor Magazine.

The MBA's Chief Economist weighed in: “As a result, mortgage refinancing will continue to drop, and borrowers seeking to tap the equity in their homes will be more likely to rely on home equity seconds rather than cash-out refinances."

And with the bulk of mortgage applications being refinancings, the MBA has also projected that that trend begin to slow and soon enough, reverse by next year. The new trend will be purchase loans making up 60 percent of originations next year, due to an increase in home sales and home prices, as compared to about 38 percent this year. 

Are you ready to take the plunge before mortgage rates rise even further? Ready to begin your Wilmington, DE home search? Let us help you discover your real estate options and move closer to purchasing your next home— we even offer FREE first-time homebuyer seminars! 

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
Contact Me
Find me on Facebook

Most Delaware home buyers are familiar with FICO - the traditional credit scoring model that is used by lenders to determine borrowing risk. FICO has dominated the credit scoring market for the past 20 years, but the new VantageScore system is gaining ground!

Per a recent CNN Money article, VantageScore is now used by 4 of the 5 top mortgage lenders in the country. VantageScore is also used by:

7 of the top 10 financial institutions
6 of the top 10 credit card issuers
4 of the top 10 car loan companies

VantageScores have been around awhile, but have been confusing because the scoring range was different than FICO. The latest version of VantageScore solves this.

Going forward, VantageScore and FICO will have a credit score range of 300 to 850, with 300 as the lowest score and 850 as the best possible score.

There are some differences in the scoring models that could benefit Delaware home buyers. VantageScores will count rent payments, utility bill payments and public records in their computations. This will provide credit scores for consumers with little or no borrowing history, who usually fall through the cracks with FICO.

Another big plus of VantageScore: collection accounts will not hurt your score if the balances are zero.

In other respects, the two scoring models are very similar - and neither one is going to tell you exactly how they come up with your score. Nor is your lender likely to tell you in advance which credit score company they will use in their lending decision. Lenders may use both FICO and VantageScore for a more complete picture of credit risk.

No matter what type of score is used by your lender, paying your obligations on time, and keeping your credit use to a minimum, will strengthen your score!

Understanding how credit scores work can help you get approved for a mortgage, and potentially save you thousands of dollars in mortgage interest. For a complete overview of the home buying process, including how to qualify for a mortgage, join us at our FREE first-time home buyer seminars! The next one is in Newark on April 20, 2013! Register here to save your seat!

Always feel welcome to contact me for more information about homes for sale in Wilmington and Newark! I am here to help you with your home ownership goals!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
Contact Me
Find me on Facebook
Follow me on Twitter

If you are a first-time home buyer, you may already be leaning towards an FHA-backed mortgage to finance your Wilmington or Newark home. Recently, the Federal Housing Administration announced changes to their mortgage guidelines, which are being made to stem the losses from sour loans.

In case you are not familiar with it, the FHA is a government entity that insures mortgage loans made by banks and other front-line lenders.

Without the FHA, home buying would be tough for buyers who cannot meet high down payment and credit score requirements. After the collapse of subprime lending and the tightening of credit, FHA-backed mortgages became the only game in town for many first-time home buyers.

FHA guidelines are also more forgiving when it comes to credit history, making it the only practical option for home buyers who had a prior bankruptcy, foreclosure, or short sale in the past few years. For these reasons it's a good idea to understand the FHA role in our housing market!

Here are the 4 FHA rule changes slated for 2013, and how they may affect you:

1. FHA loans require the borrowers to pay for mortgage insurance. This insurance protects the lender in the event you default on the loan. It used to be that you could get the monthly mortgage insurance premium waived after you achieved a certain amount of equity. This is no longer the case; effective in 2013, the mortgage premium will be on your mortgage payments for the life of the loan.

2. The cost of monthly mortgage premiums will go up by .10 basis points. This is a relatively small amount; it would add an extra $20 a month to a $200,000 mortgage. Keep in mind that this is only the increase effective in 2013, and not the entire premium.

3. For large mortgages, the FHA will require higher down payments beginning in 2013. The minimum down payment for a $625,500 mortgage will be 5%. This is an increase from the prior minimum of 3.5%.

4. Those who have credit scores in the 580-620 range will face stricter debt-to-income ratios in 2013. In other words, the less debt you have, the better.

The good news is, these changes shouldn't derail anyone's plans to buy a Delaware home. Even with the new changes in 2013, FHA-backed mortgages remain attractive.

Need more information about buying a Wilmington or Newark home? As your experienced real estate professional I'm here to help you! I can also refer you to FREE home buying seminars and help you find the best home for the right price.

Contact me for neighborhood price trends, recent sales, and expert guidance in our fast-changing real estate market.

Most likely, you’ve heard time and again that there are far more benefits to buying a Wilmington, DE home than to renting a property. As rental rates continue to rise all across the United States, this holds true now more than ever in today’s buyer’s market. Recently, I came across a CNN Money article that lists the highest rental increase over the past 12 months as nearly 13% in Sarasota, FL. On top of already sky-high rental rates, the cost of renting is becoming unrealistic for many in Wilmington, DE and across the U.S.

Overall, asking prices for homes have decreased .7% while rental rates have increased on average 5%. Why the skyrocketing rental rates? It’s no secret that many here in Wilmington, DE and across the country are having trouble staying on top of their mortgage payments. Going through the process of a short sale or foreclosure leaves renting as the only option for so many people that there is a rising demand for a limited supply of rental units.

While I realize that buying simply isn’t an option for some, those who are in the market to buy a home in Wilmington, DE are at a great advantage. Trulia reported that home prices have continued to drop over the past 12 months and with rental prices expected to keep increasing, it’s never looked better to consider homeownership. We’re also looking at extremely low mortgage rates which makes it even easier to justify buying a home in Wilmington, DE rather than sinking money into a rental each month. CNN Money’s most recent report shows a 30-year fixed mortgage at 3.86% down from 3.90% last week.

To put this in better perspective, here’s an example using real numbers. As of the end of last week, the average list price in Wilmington, DE was $230,021 and as I mentioned before the 30-year mortgage rate is at 3.86%. Additionally, the average rental rate in Wilmington, DE is about $1,050 according to data by rentbits. Using a tool The New York Times provides, we are able to calculate how much money a Wilmington, DE homeowner will save over a renter and how long it will take to start benefiting. With 20% down, the average mortgage would be nearly $200 less per month than the average rent payment. Check out this tool and try it for yourself with your current monthly rent and the prices of some Wilmington, DE homes you have in mind.

As your Wilmington, DE real estate agent, I feel it’s my responsibility to provide you with the most up-to-date market statistics. I hope the information I provide and the tools I show you help your home buying or home selling process go smoothly and successfully. If you need any assistance selling your Wilmington, DE home, are considering a short sale, or would like to see some homes for sale in the area, please feel free to contact me. I’m well versed in the Wilmington, DE real estate market and would love to help you through your real estate transaction.

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
Contact Me
Find me on Facebook
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With a new year comes a fresh look at what will happen in housing! Due to the fact that mortgage rates are set to stay low throughout 2012, many Wilmington, DE homebuyers are thinking that now is the time to start thinking about buying a home. This is an exciting and big step to take, however there is one thing that could potentially stop you from finding the Wilmington, DE home of your dreams, and that is obtaining a mortgage.

Getting a mortgage loan has been and will continue to be a challenge. The key to getting the financing you need for your Wilmington, DE real estate transaction is to become a savvy borrower. Although financing will likely be a bit challenging, if you approach your lender prepared, you will likely have success in obtaining a loan for your dream home. As a Wilmington, DE real estate agent, I feel that it’s important to help my clients through every phase of the home buying process. These six tips will help you get the financing you need for your future home.

Know your credit backward and forward. The most important step in obtaining a loan is having a good credit score. Have your most recent credit reports ready and on-hand, and if you need to, start taking steps to improve your score now.  If your credit is bad or you need some time to rectify your score, then now may not be the best time to apply for a mortgage loan.

Have your paperwork ready to go. Every lender requires very specific documents for their mortgage application. Don’t wait for your bank to ask you for them! Have all the important paperwork ready to go early and your lender will see how prepared you are.

Have a realistic price point. It’s important to know how much you can afford before approaching your lender. Calculate what you can afford ahead of time, create a budget and leave a little wiggle room for unforeseen expenses. This will help you better estimate your monthly mortgage payments and will help you get the best loan possible for your financial situation.

Don’t settle for the first lender you meet. Shop around for a mortgage. It’s important to get a few different perspectives on what loans you qualify for. Don’t rely solely on interest rates; there are other factors that should go into your decision. Meeting with a few different lenders and brokers will help you pick the best possible combination for your financing needs.

Work in a timely fashion. You could lose out on the house you want or on your loan if you don’t work within an efficient timeframe with your lender. Ask for an estimated closing date and keep following up with your lender until the transaction is closed.

Keep your credit intact…even after approval. Once you get financing, you will be relieved, but it can be taken away if your credit rating doesn’t stay put. Don’t take out new lines of credit, finance a new car or have a slew of late bill payments. Stay on top of your finances.

These are just a few of many ways that you can become a savvy borrower! Obtaining financing for a new Wilmington, DE home can be challenging, but with the right guidance and smart strategies, you can get the mortgage you need to move in. As your Wilmington, DE real estate agent, I think that that it’s important to let you know the best way to deal with any obstacles that could come your way throughout your real estate transaction.

If you have any questions about what homes are available on the Wilmington, DE real estate market, don’t hesitate to contact me! I’m happy to help you whenever you need me. I hope to hear from you soon!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
Contact Me
Find me on Facebook
Follow me on Twitter