Category: Newsletter Featurettes

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Home Buying Tips Home Insights Home Selling Tips Newsletter Featurettes

What You Need to Know Before Purchasing This Summer

What You Need to Know before Buying this Summer

With consumer confidence high and mortgage rates low, our local home-buying market is hot!  Here are some essential tips to get prepared and stay ahead of the pack as multiple offers and quick sales will rule the summer.

Get pre-approved

The first step in the home-buying process is getting pre-approved with a top lender.  That way, you’ll be all set to make a strong, serious offer when you find the right property.  Contact HomeServices Lending for great rates and service!

Be the first to know

With homes selling quickly, you’ll want to be the first to know about new listings as they hit the market.  Rector Hayden’s top local home search website – RectorHayden.com – is updated at the top of every hour, as is our mobile home-search app. You can save searches and receive alerts for homes that match your criteria!

Do smart searches

It’s easy to do your home search, no matter where you are or how you like to get your information. Download the Rector Hayden Home Search app for iPhone, iPad and Android to get access to every home for sale on our Central Kentucky MLS. Our mobile app allows you to search based on plenty of different criteria. Use our app and find homes that fit within two different commute times (ex: close to work and close to school!).

Get to know your ideal location

As you narrow things down, visit your preferred neighborhoods and talk with neighbors and local businesses. To learn more about current issues and any concerns, contact the local neighborhood association.

Open House season is upon us

It’s an exciting time of year to explore your options. Check out our upcoming Open House list anytime at RectorHayden.com.

Make your first offer your best offer

It’s a seller’s market. You’ll want to discuss with your Rector Hayden Agent how to tailor your offer to appeal best to a seller.   An experienced agent can make all the difference in your negotiations!

 

curated by Keith Rector

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Home Insights Housing Market Report Newsletter Featurettes

Market Report – June 2018

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Will our hot local housing market continue into summer? See all the latest info and trends, in our exclusive Monthly Market Report!

 

 market report with shadow
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Home Buying Tips Home Insights Newsletter Featurettes

5 Questions First-Time Buyers Can Ask When Hiring a Real Estate Agent

Buying your home is likely the biggest decision you’ve ever made, and it makes sense that you would want to partner with a trusted, professional REALTOR® who has your back and your best interests at heart.

Key insights:

  • Make sure your Realtor knows specifics about your market area. Even a personal referral or family friend should dig deep into your preferred neighborhood’s stats before expecting your business.

  • Ask if the Realtor works with a trusted lender who will get you pre-approved for a loan.

  • Go with your gut; even if a Realtor has all the right answers, half the battle of this working relationship is hiring someone you truly like and trust. If you’re not feeling it, then keep interviewing until you find the right fit.

1. How long have you been a real estate agent and do you typically work with first-time homebuyers?

Unlike the other questions we’ll share, there’s actually no wrong answer to this question – BUT it’s information you need. Most Realtors start by working with buyers, including first-time buyers, and as they begin to know more local homeowners, they transition their business to representing both buyers and sellers. Still others might continue to work only with buyers decades after they have been in the business.

2. I prefer to communicate via (phone calls, emails, texts). Can you work this way?

In our low-inventory market for starter homes, fast-paced communication will be necessary to getting an offer accepted on your dream house. For this reason, it’s important to discuss how you prefer to be contacted – and to share any communications restrictions you have.


3. How long do you expect the home buying process to take?

Whether you have a tight timeline or need to move when your current lease expires, you likely have an idea of when you want to buy a home. Don’t be afraid to express that desire with your potential agent so you can all get on the same page from day one.

4. What do you know about the area I want to live in?

If you’re like most first-time buyers, you’ve probably been searching for available homes online to determine the city or even neighborhood where you’d most like to live.

If the agent is very familiar with the area already, you can continue to ask questions about the market, including if homes are selling quickly or for more than asking. If the agent doesn’t know about your preferred area, request that they get up to speed and get back to you within a day or two with their initial thoughts. Part of being a great advocate is doing the research, so it’s okay to request that your Realtor put in some work before getting hired.

5. What kind of loan options are best for me, and which preferred lender do you use for first-time buyers?

First-time buyers have myriad loan options available to them, from government-backed FHA loans to VA loans (for military veterans) to more traditional private loans. The best way to determine your buying power, and which loan is right for you, is to get pre-approved on a loan as soon as possible.

When meeting to interview a Realtor, ask if they have a preferred lender they work with for first-time buyers and ask if they typically get their buyers pre-approved. Pre-approval is a smart step that helps you understand the loan package that would work best for you, gives you a great starting place for a budget and can give you an advantage over other buyers who aren’t pre-approved.

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Home Buying Tips Home Insights Newsletter Featurettes

How Might Changing Interest Rates Affect Home Buyers?

How Might Changing Interest Rates Affect Homebuyers

Article Updated: April 2018
Do fluctuations in rates have a big impact on homebuyers?  Here’s the scoop on rates, affordability – and why now is the time to buy.

How affordability is affected by changing rates

As interest rates increase, the buying power of a borrower is lessened. Let’s say a homebuyer has $1,200 to spend on their monthly mortgage payment. If rates are 4 percent and the borrower secures a 30-year fixed conforming loan, their loan could total around $250,000. The monthly mortgage payment in these conditions would be $1,194.

Now let’s say rates rise 1 percentage point to 5 percent. With all the mortgage terms remaining equal, the borrower would pay $1,208 monthly for a loan totaling $225,000. That’s a difference of $25,000, or 10 percent, in buying power.

Many first-time buyers do not have a large down payment, and government and private lenders have changed their standards in order to accommodate these high earners with minimal savings. FHA loans can now be secured for as little as 3.5 percent down, while conventional (private) loans have a minimum of 3 percent down.

While these newer minimums have prompted many first-time buyers to enter the market, it also means these buyers are relying heavily on financing. And if rates increase slightly, they may need to look at adjusting their home buying budget a little.

 

The silver lining

The reality is that our local market is still a great place to buy!  Mortgage rates have risen slightly…but remain historically low.  During the last economic expansion from 2001-2007, mortgage rates hovered between 5% – 7%.  And in the 1990’s, rates were even higher, skirting between 7% – 9%.   Even with a slight uptick in rates over the past few months, it’s a great time -right now- to buy a home in Lexington and Central Kentucky!

Wondering What Current Rates Are?

Visit our partners over at HomeServices Lending to see current rates for multiple loan types. https://kentucky.homeserviceslending.com/rates

Do You Know The Different Types of Loans?

Check out our previous article, “Loan Types: Insights for Home Buyers“

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Home Insights Home Selling Tips Newsletter Featurettes Uncategorized

How Sellers can “Pass” their Appraisal

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How does the appraisal process work and what influences it? If you’re selling your home, here are insights you can use to get a fair, informed appraisal for your property.

First, how does the appraisal process work and what influences it?

What does an appraiser do?

In short, an appraiser determines the current value of a property. They do this by performing a walk-through of the interior and exterior of the property and making note of any amenities such as a finished basement. They will also note health and safety code violations or other areas of concern. Most appraisers will utilize comparable home data (often referred to as comps) of nearby recent sales and neighborhood statistics to help determine a home’s value.

…

Understanding an appraiser’s work style

Since appraisers are independent contractors (hired by the lender and typically billed back to the buyer), it’s important to understand that they have their own preferences and work styles. While they are on your property, it’s essential to allow them one to two hours to complete the inspection without interruption. However, there are things you can do to make the appraiser’s job easier — and help your home get an accurate valuation.

 

How can the seller help?

  • Make sure all utilities are on
  • Ensure spaces and mechanical pieces are clean, functioning and free of debris
  • Replace burned out lights and make needed repairs
  • Make sure crawl spaces, attics and outbuildings are accessible

 

What happens if the home doesn’t appraise?

If a property appraises under the sales price, your options will then be:

  • Request a reconsideration of value. Although unlikely, it’s possible that the appraisal could be reconsidered and you could still close at the price agreed upon by you and the buyer
  • Ask the buyer to pay more than the appraisal by increasing their down payment
  • Renegotiate the contract, by dropping the contract price to the appraised price

 

What happens if the home appraises?

Hooray, your property appraised at the sales price! All systems are go and you’re on your way to the closing table. Now the buyer’s financial and credit history will be verified, the lender will approve the home mortgage loan and the loan package will be submitted to the title company to prepare the documents for closing.

 

 

 

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Events Local Events Newsletter Featurettes

Events We ♥️ in April 2018

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Local events we LOVE this month

Keeneland racing, Farmers Markets, the Land Rover 3-Day Event, Central KY Home & Garden Show, Thursday Night Live…we could go on and on (and we will!).  There’s no place better than Lexington and Central Kentucky in April!

 

KEENELAND SPRING MEET 2018

April 6 – April 27
Keeneland, 4201 Versailles Road
Lexington, KY 40510 United States + Google Map

Keeneland’s 2018 Spring Race Meet opens Friday, April 6, and continues through Friday, April 27. No racing will be held on Mondays or Tuesdays.  Gates open at 11 a.m. with first post at 1:05 p.m. daily. Highlights of the Spring Meet include the $1 million Toyota Blue Grass (G2) and $500,000 Central Bank Ashland (G1) on April 7. The races are worth 100 points apiece on the Road to the Kentucky Derby (G1) and Road to the Kentucky Oaks (G1), respectively.

Find out more »

 

 

KY Spring Premier Horse Show

April 12 – April 14
Alltech Arena at the KY Horse Park, 4089 Iron Works Pkwy
Lexington, KY 40511 United States + Google Map

A Spring show to showcase the American Saddlebred horse, along with Hackney ponies, Roadsters and Saddle Seat Equitation.

Find out more »

 

 

Home & Garden Show – Central KY

April 6 @ 8:00 am – April 8 @ 5:00 pm
Lexington Center & RUPP Arena, 430 West Vine Street
Lexington, KY 40507 United States + Google Map

One Place. One Weekend. Projects Solved! See the latest home improvement trends and materials. See gardens and landscapes you’ll want at home and enjoy a day of family fun! We can help you get your Projects Solved! The entire Lexington Center will be completely transformed, for one weekend only, into a Home and Garden Extravaganza. From the front door to the backyard you’ll find it all at the Annual Central Kentucky Home & Garden Show.

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Corteo: Cirque Du Soleil

April 29 @ 7:30 pm – 10:00 pm
Lexington Center & RUPP Arena, 430 West Vine Street
Lexington, KY 40507 United States + Google Map

CORTEO will visit Lexington at Rupp Arena for a limited run of five performances, from April 27 to 29, 2018! CORTEO, which means cortege in Italian, is a joyous procession, a festive parade imagined by a clown. The show brings together the passion of the actor with the grace and power of the acrobat to plunge the audience into a theatrical world of fun, comedy and spontaneity situated in a mysterious space between heaven and earth. The clown pictures his…

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LAND ROVER KY 3-Day Event

April 26 @ 8:00 am – April 29 @ 5:00 pm
KY Horse Park, 4089 Iron Works Parkway
Lexington, KY 40511 United States + Google Map

This year marks the 40th anniversary of the 1978 World Three-Day Event Championships at the Kentucky Horse Park, which developed into the long-standing annual Kentucky Three-Day Event, one of the world’s most prestigious — and popular equestrian events. “The Land Rover Kentucky-Three Day event is a sell-out weekend for Lexington’s hospitality community! It’s always a great pleasure to welcome riders and fans from across the globe to the Kentucky Horse Park every April,” said Mary Quinn Ramer, president of Visit…

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The Jungle Book @ Lexington Opera House

April 14 – April 15
Lexington Opera House, 401 West Short Street
Lexington, KY 40507 United States + Google Map

Based on a collection of stories by the English author Rudyard Kipling. See the jungle and its beloved creatures come to life through the eyes of Mowgli. April 14 2:00pm April 14 7:30pm Box Office opens 90 min before performances This Jungle Book ballet premiere brings the stories of English author Rudyard Kipling to life. See the jungle and its beloved creatures through the eyes of Mowgli. Original choreography by Luis Dominguez. Discounts for youth, students, seniors and military may…

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There’s More to Do in the Month of April! #LexHaveFun

Family Friendly Events  | ? Equestrian Events ? | ? Farmers Markets ? | ? Live Music  ? |  FREE Events
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Home Insights Housing Market Report Newsletter Featurettes

Market Report – April 2018

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Strong Buyer Demand and Shrinking Inventory…

… Think higher prices could be ahead? See all the latest information and trends in our exclusive Market Report – compiled by the experts at Rector Hayden Realtors! 

 market report with shadow
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Events Local Events Newsletter Featurettes

Events We Love! MARCH 2018

March Fun – Spring is Coming!

We LOVE Lexington & Central Kentucky in the spring … and also these upcoming local events!

Bluegrass Trust Antiques & Garden Show 2018

March 2 – March 4
Alltech Arena at the KY Horse Park, 4089 Iron Works Pkwy
Lexington, KY 40511 United States + Google Map

More than 80 Quality Exhibitors of Fine Antiques, Gardens & Landscapes, Interior Design Vignettes, Jewelry, Fine Art, Prints & Maps, Rugs, Silver, Garden Stone Art, Iron Work, Mid-Century Modern Décor & More!   World-Class Location Kentucky Horse Park’s Alltech Arena, Lexington, KY Located at 4089 Ironworks Parkway, just off I-75, Exit 120 2018 Show Dates March 2, 3, 4 NEW Show Hours: Friday and Saturday 10 am – 6 pm, Sunday 11 am – 4 pm    Daily show ticket:…

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Meet the NEIGHbors

March 3 – March 4
Various Locations

Horse Country, Inc., a not-for-profit organization offering tours at area equine attractions, is hosting two days of FREE tours, giving local access to our studs, nurseries, and clinics! Meet the NEIGHbors is an opportunity for you to visit one of our members in your own back yard, peek behind the scenes at an equine medical clinic, see famous stallions or even meet foals and yearlings at the very beginning of their careers! This premiere event will be held at various…

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Community Conversation on Homelessness in Lexington

March 9 @ 9:00 am – 12:00 pm
Pam Miller Downtown Arts Center, 141 East Main Street
Lexington, KY 40507 United States + Google Map

Description Attendees: Any private citizen, business, organization, elected official, stakeholder, or funder Breakfast provided starting at 8:15 New regulations across the United States and Canada, as well as emerging best practices, are prompting communities to rethink their approach to homelessness. Traditionally, most communities are great at managing homelessness, but ending homelessness requires a fundamental shift in thinking and approach. Highlights: distinguishing between homeless and street involved, what solutions provide lasting and positive change, what is happening in Lexington, plans moving…

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Lexington St. Patrick’s Parade & Festival

March 17
Courthouse Plaza, 120 North Limestone
Lexington, KY 40507 United States + Google Map

Join us in downtown Lexington this St. Patrick’s Day!Lexington’s St. Patrick’s parade is the city’s longest-running annual civic event. The parade and festival are part of an all-day celebration that begins at 8 a.m. with the 12th annual Shamrock Shuffle to benefit Lexington Habitat for Humanity. At 11 a.m., the “Blessing of the Keg” at the Alltech tents at Robert F. Stephens Courthouse kicks off the free festival. The parade begins at 1 p.m., rain or shine! Schedule 11 a.m…

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Easter at the Trace

March 25 @ 11:00 am – 2:00 pm
Buffalo Trace Distillery, 113 Great Buffalo Trace
Frankfort, KY 40601 United States + Google Map

Be sure to register for this egg-citing event for children and parents! Search for thousands of treat- filled eggs, plus enjoy refreshments and pictures with the Easter Bunny. Advanced registration required to attend event. All activities are complimentary. Event Opens: 11:00am Hunt Times Ages 0-2: 12:00pm Ages 3-4: 12:15pm Ages 5-8: 12:45pm Ages 9-11: 1:00pm Event concludes at 2:00pm Online registration begins February 25. No pets allowed, aside from service animals.

Find out more »

 

There’s More to Do in the Month of March! #LexHaveFun

Family Friendly Events  | ? Equestrian Events ? | ? Farmers Markets ? | ? Live Music  ? |  FREE Events
Categories
Home Insights Housing Market Report Newsletter Featurettes

MARCH 2018 – Monthly Housing Market Report

August 2018 - Market Report

Our local housing market has had a strong start to the year!

Be sure to check out our exclusive Market Report — with all the latest information on the local real estate market – compiled by the experts at Rector Hayden Realtors! 

 market report with shadow
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Home Buying Tips Home Insights Newsletter Featurettes

Loan Types – Insights for Home Buyers

If you’re considering buying a home, having a knowledge of basic mortgage terminology can help prepare you for meeting with a mortgage consultant. Here are insights you can use to understand basic loan types and how they affect different types of borrowers.

 

Fixed-rate vs. adjustable-rate mortgages

One of the first choices you’ll make when applying for a loan is if you want to have a fixed-rate mortgage or an adjustable-rate mortgage.  A fixed-rate mortgage has an interest rate that does not change for the life of the loan, so it provides predictable monthly payments of principal and interest.

An adjustable-rate mortgage typically offers an initial introductory period with a low interest rate. Once this period is over, the interest rate adjusts periodically, based on the market index. The initial interest rate can sometimes be locked in for different periods, such as one, three, five, seven or ten years. Once the introductory period is over, the interest rate typically readjusts annually.

Want more information about Fixed-rate and Adjustable-rate? Visit: https://kentucky.homeserviceslending.com/pages/fixed-and-adjustable-rate-mortgages

 

Government-backed loans vs. conventional loans

There are two primary types of government-backed loans: FHA loans and VHA loans.

FHA loans are insured by the Federal Housing Administration and are typically designed to meet the needs of first-time homebuyers with low or moderate incomes. FHA loans can be approved with a down payment as little as 3.5 percent. Because the agency is taking on more risk by insuring these loans, the borrower is expected to pay mortgage insurance and the property must be owner-occupied.

VA loans are backed by the Department of Veteran’s Affairs and they are guaranteed to qualified veterans and active-duty personnel and their spouses. VA loans can be approved with 100% financing, meaning VA borrowers are not required to put down a down payment. Unlike FHA loans, borrowers do not have to pay mortgage insurance on VA loans.

Want more information on FHA and VA loans? Visit: https://kentucky.homeserviceslending.com/pages/fha-and-va-loans

 

Conforming loans vs. jumbo loans

Fannie Mae and Freddie Mac are two government-owned institutions that buy and sell mortgages on the aftermarket. By selling the loans to “Fannie and Freddie,” lenders can free up their capital and return to issue more mortgages than if they had to personally back every loan that they approve.

If a loan meets the standards that Fannie and Freddie have set, then it is considered to be a “conforming loan.” More than 90 percent of loans that are issued in the U.S. are conforming loans.

One main standard for conforming loans is that the loan must be under a certain amount. While loan limits can vary by county, the conforming loan limit for all counties in Central Kentucky is currently $424,000. If a buyer asks to borrow more than $424,000 in Lexington or Central Kentucky, the loan is considered a “jumbo loan.”

Jumbo loans are considered to be riskier for the lender, so the bank will typically require a higher down payment. Additionally, the interest rate on a jumbo loan may be higher than if the same borrower applied for a conforming loan.

Want more info on Jumbo or Non-Conforming Loans? Visit: https://kentucky.homeserviceslending.com/pages/jumbo-financing

Need help financing a new home? Understanding the loan types is step one. Step two is getting pre-qualified or pre-approved, so you know where you stand. Reach out today to get connected with a HomeServices Lending expert who can help you, no strings attached!