Northeast Ohio
Real Estate
May 12. 2023
Happy Friday!
Hope you are doing well and had a great week!

Thank you for checking out this email. If you have any questions, please don't hesitate to reach out.
Should I accept a VA (Veteran's) Loan for my home sale?
There are different types of financing options for buyers in this market. The most common two types are conventional financing and FHA financing. There's another option, and one that I helped many buyers with when I was a VA loan originator in 2012-2013, and these are special loan products for Veterans.

Unfortunately, in this very tight market, there's a stigma around this type of lending. And this misunderstanding can put these buyers at a disadvantage, and that's a shame.

Many people believe that because VA loans don’t require a down payment, veterans—who comprise 14% of the homebuying market—“don’t have skin in the game” and aren’t attuned to being a responsible homeowner."

Some listing agents and sellers falsely believe that because VA buyers don’t need a down payment, they’re not financially prepared for homeownership. The reality is that the average VA buyer has a FICO score above 700 and $40,000 in cash reserves. On top of that, only 4% of VA loans went into default in 2021 compared to 10% of FHA loans.

Veterans also tend to become invested in the community, as many have been away from home for extensive periods of time and are eager to reconnect to their roots. Sellers who are interested in passing on their home to someone who will truly care for it would be wise to consider VA buyers.

The bottom line, when I represent a seller and I receive a VA offer, I always present this as a strong and viable option. I explain the qualities of this type of financing, and what goes into closing this type of transaction. I also represent VA buyers and am honored to help them purchase a home in Northeast Ohio. If you or anyone you know has questions about using a VA loan or accepting a VA loan on your home, please give me a call!
Real Estate Confidence Reaches Highest Mark in 1 Year
Consumers’ belief that mortgage rates will go down elevated confidence in the housing market to its highest level in nearly a year last month, according to the most recent data.

Fannie Mae’s Home Purchase Sentiment Index (which tracks consumers confidence on US Real Estate) jumped 5.5 points to 66.8 in April, marking the highest monthly gain in two years.

All six components of Fannie Mae’s survey rose from March, with the largest bump seen in optimism about mortgage rates. The percentage of those surveyed who said mortgage rates would go down in the next 12 months increased by 10 points, to 22 percent. 

An increased number of respondents indicated they think mortgage rates will go down over the next year, a belief that could be due to a combination of factors, including an awareness of decelerating inflation, market suggestions that monetary conditions will ease in the not-too-distant future, and, of course, actual mortgage rate declines during the month.

Mortgage rates ticked down again last week to 6.39 percent, even as the Federal Reserve voted to raise its interest rate for the 10th consecutive month. At the same time last year, the average 30-year fixed rate mortgage stood at 5.27 percent. 

Meanwhile, the survey saw a 3-point increase among those who say it’s a good time to buy a home, while the percentage of those surveyed who say it’s a bad time to buy fell 2 points. 

Based on what I've been seeing in Greater Cleveland, the mortgage rates have not scared away buyers at all. With the lack of inventory, it's expected to have multiple offers on well kept properties in this market. This is true as long as the homes are in move in ready condition, and the home is not dramatically overpriced.
Listing of the Week

27700 Fairmount Blvd.,
Pepper Pike, OH 44124

I'm proud to present my newest listing which just hit the market today! I'll be hosting open houses all weekend- check it out!

Welcome to 27700 Fairmount Boulevard, an immaculate home located in the highly desirable Pepper Pike neighborhood. This 4-bedroom, 2.5-bathroom split-level home sits on over an acre of park-like land. As you step inside, the open foyer leads to the generous living room/dining room area. The kitchen boasts modern high-end appliances, including a built-in and plumbed Miele espresso machine, ample counter space, and abundant storage. Enjoy the best of both worlds with this stunning property! Offering the privacy and tranquility of your very personal outdoor refuge, combined with the convenience of being just minutes away from I-271, hospitals, shopping, and fine dining.

Click here for the ---> Listing Link
Pat Barmann
216.990.5719