How To Get A Mortgage With Student Loan Debt

Time Magazine reports that the Student Loan Crisis is worse than ever.  More than 25% of students are graduating with too much student debt and the overall debt number has exceeded the $1 trillion mark.  While this issue may not seem related to being a homeowner, it is affecting the housing market in surprising ways.

When you apply for a mortgage, student loans can be the make or break factor for getting approved.  If you have student loans and are looking to buy a home, you’re in luck! Follow our advice for affording a mortgage while balancing student loans:

Managing Loans

If you are paying a high interest rate on your student debt, it may be time to look into refinancing and consolidating.  Refinancing your student loan reduces your debt-to-income ratio, lowers your monthly payment, locks in low interest rates and improves your chances of being approved for a mortgage.

Elevating Credit Score

How can you build good credit?  If you have student debt, one of the most effective ways to improve your credit score is by paying off loans.  Start by paying your student loans on time each month and make sure you keep your monthly balances low.  If you avoid paying off your balance each month, you might be faced with a fee.  

Reduce Your Debt

Lessening your total debt sounds harder than it is.  If you are ready to purchase your first home, cutting back on monthly expenses is a great place to start.  Reduce your living expenses by eating out less, avoiding online shopping or even taking on a part-time job for some extra cash.  All it takes is some money management and you can be a homeowner!

Don’t let student loans affect your ability to buy a home.  Contact the professionals at Three Rivers Association of REALTORS® for professional advice!  It is our goal to provide real estate solutions for those in Will & Grundy County.  For more information, head over to our website or give us a call at 815-744-4520!

The Difference Between a REALTOR® and a Real Estate Agent

Many people are not aware that the terms REALTOR® and real estate agent are different titles.  If you are entering the housing market for the first time, it’s important to know what you will get from a REALTOR® versus a real estate agent.  While they are both licensed to sell real estate, each professional offers different values for homebuyers.  

If you are browsing the housing market and want help from a professional, follow our tips for choosing between a REALTOR® or real estate agent.

What is a REALTOR®?

A REALTOR® is a real estate agent who is a member of the National Association of REALTORS®.  They act as an intermediary between sellers and buyers of real estate while also following the REALTOR® Code of Ethics.  As a member of the National Association of REALTORS®, a REALTOR® must uphold the standards of the association.  The NAR’s Code of Ethics consists of principles that require REALTORS® to cooperate with each other to further the best interest of consumers and clients.  This includes treating all parties fairly, giving equal opportunity and upholding fair housing standards.

More than 1 million members of the National Association of REALTORS® are employed across the country.  REALTORS® must hold a valid real estate license, be actively engaged in the real estate business and have no record of unprofessional conduct.

What is a real estate agent?

A real estate agent is anyone who is licensed to help people buy and sell commercial or residential property.  In order to obtain a real estate license, agents must complete a minimum number of classes and a pass an examination prescribed by the state.  State requirements vary but anyone who earns a real estate license can be called a real estate agent.

Many real estate agents join the National Association of REALTORS® and become REALTORS® because of the great reputation members are known for having throughout housing market.  

When you are looking for a real estate professional, it is wise to work with a member of the National Association of REALTORS® who is committed to maintaining the professionalism of the real estate business.  At Three Rivers Association of REALTORS®, we are a professional trade association of over 1000 licensed REALTORS®.  We strongly believe in what the National Association of REALTORS® stands for including honesty, ethics and superior service for both buyers and sellers.  If you are a REALTOR® in Illinois, contact Three Rivers Association of REALTORS® to learn more about our services!

Home Sweet Homeowners Tax Advantages

With the current housing market in an upswing, many people are becoming new homeowners. To those who have just purchased their first home - congratulations! Being a homeowner helps fulfill the American dream! Don't forget about one of the new benefits you'll enjoy....tax breaks!

Take advantage of these homeownership-related tax deductions and strategies to lower your tax bill and increase your refund.

• Mortgage Interest Deduction - One of the best deductions itemizing homeowners can take advantage of its mortgage interest deduction. Interest you pay on your mortgage (up to $1 million) is deductible when you use the loan to buy, build, or improve your home.
• Prepaid Interest Deduction - Prepaid interest (or points) you paid when you took out your mortgage is generally 100% deductible in the year you paid it along with other mortgage interest. If you refinance your mortgage and use that money for home improvements, any points you pay are also deductible in the same year.
• Property Tax Deduction - You can deduct the real estate property taxes you pay on Schedule A. If you have a mortgage with an escrow account, the amount of real estate property taxes you paid shows up on your annual escrow statement. If you bought a house in 2015, check your settlement statement to see if you paid any property taxes at closing. Those taxes are deductible on Schedule A, too.
• PMI and FHA Mortgage Insurance Premiums - You can deduct the cost of private mortgage insurance (PMI) as mortgage interest on Schedule A if you itemize your return. The change only applies to loans taken out in 2007 or later and the deduction is reduced if your adjusted gross income exceeds $100,000. besides private mortgage insurance, there's also government insurance from FHA, VA, and the Rural Housing Service. Some of those premiums are paid at closing, and deducting them is complicated. A tax adviser or tax software program can help you calculate this deduction.
• Energy-Efficiency Upgrades - The Non-Business Energy Tax Credit lets you claim a credit for installing energy-efficient home systems. Tax credits are especially valuable because they let you offset what you owe the IRS dollar for dollar, in this case, for up to 10% of the amount you spent on certain upgrades. The credit carries a lifetime cap of $500 (less for some products), so if you've used it in years past, you'll have to subtract prior tax credits from that $500 limit.

At Three Rivers Association of REALTORS®,  we advocate to protect real estate-related tax deductions, aim to address real estate issues in the community, and work to provide a good housing market for the Joliet area. To learn more about us, please visit our website! And if you are ever unsure about how to properly complete your tax returns, make sure to consult a tax professional for help.

Tax Benefits of Homeownership

Are you ready to own a home?  For first-time homebuyers, now is a great time to start looking for property!  The housing market is on the upswing and it’s easier than ever to secure a loan from the bank.  While buying your first home seems like a big step, there are a number of tax deductions available to homeowners that make it worth it!  If you are a first-time buyer or new homeowner, let us guide you through the tax benefits of homeownership:

Mortgage Basics:

A mortgage is a loan received to finance the purchase of a home.  A bank or mortgage lender will loan you a sum of money that you are required to pay back over a set period of time with an added interest rate.  A mortgage is typically made up of principal payments, interest charges, taxes and insurance.  

Tax Deductions:

A tax deduction is available to taxpayers of all income levels.  The purpose of a tax deduction is to decrease your taxable income and to decrease the amount of tax you owe to the federal government.  If you are a homeowner, you will benefit from huge deductions during tax time.

Homeowner Tax Breaks:

As a property owner, you receive big tax deductions on a number of home-related expenses!  For homeowners, the largest tax break you will benefit from is your mortgage interest.  You are able to deduct the interest of your mortgage up to one million dollars.  This is a big annual deduction that you will love come tax season.  Another deduction you will benefit from is property taxes.  Each year you will receive annual tax deductions if you own your home and pay property taxes.  

Three Rivers Association of REALTORS® is a non-profit organization serving the community with over 1,000 licensed real estate agents. www.trarealtors.net

Get a Head Start on the Winter Housing Market

Spring and summer may be traditionally known as a buyer’s market, but did you know winter is the best time to sell your home? According to REALTOR® Magazine online, a new study by the real estate brokerage Redfin found that sellers who list and buyers who buy often find the winter season the most advantageous time to make a move in real estate.

The study found that historically, February is the best month to list your home for sale, so now is a great time to get a head start on the market! Buyers are motivated to close, so a larger percentage of homes listed in February sell within 90 days, sometimes even above their list price! Listing during the winter months has resulted in higher percentages of above-asking-price sales than listing during any others months, aside from April and May.

So why do sellers benefit from listing in the winter? A less competitive market! Since most sellers wait until spring to list their homes, listing yours in the winter means it will stand out. More potential buyers will be looking at your property, and these wintertime house-hunters are motivated to buy. There are fewer “window shoppers” in the winter, so when a buyer comes to look at your home, they are generally pretty serious about buying.

If you’re a buyer looking in the winter, it’s good news for you, too! Just as the seller pool is smaller and less competitive in the winter, the same can be said about buyers. Since most people prefer to do their house-hunting in warmer months, sellers may be more willing to negotiate on price or be flexible on terms with a wintertime buyer.

Whether you’re buying or selling this winter, trust the Three Rivers Association of REALTORS® to provide you with superior service! The Three Rivers Association of REALTORS® is a professional trade association of over 1,000 licensed real estate agents. For more information, visit our website today!  

New Year, New Home: A Checklist For First-Time Homebuyers

Are you preparing for the New Year with plans to buy a new home?  Buying your first property is an exciting endeavor.  Owning a home truly is the American dream!  Fortunately, navigating the housing market and financing world doesn’t have to be intimidating with help from a REALTOR®.  To stay prepared during the home-buying experience, follow our checklist specifically tailored for first-time homebuyers:

Savings

Are you questioning whether or not you can afford a home based on income and savings?  Many people are surprised to find that they can afford a home.  With the help of REALTORS® and lenders, it is relatively easy to create a plan for paying your mortgage.  Based on savings and income, there is a home that will fit your budget.  

Income

Can you afford to pay the bills on a monthly basis?  This is possibly the most important step when looking for your first home.  If you are currently renting, chances are you can afford a home!  While you have to think about payments including water, gas, and home-related costs, they are typically of similar cost to renting.  In some cases, it can even be substantially cheaper to buy than rent.

Credit Score

Many first-time buyers are under popular belief that they have to have a perfect credit score in order to put a down payment on a home.  With the average credit score of approved loans continuously lowering, you can now get a loan if you have lower than an 800 credit score!  

Realtors

A great step in buying your first home is enlisting the help of a reliable real estate agent.  REALTORS® have extensive knowledge and expertise in the housing market and will find you the best homes in the area.  They can also assist you in negotiating price, closing costs and answering all of your questions.  Your dream is possible, with help from a dedicated team!

At Three Rivers Association of REALTORS®, we aim to address real estate issues in the community and work to provide a good housing market for Will and Grundy County.  We offer realtors in the area a wide, but industry-specific range of services.  To learn more about Three Rivers Association of REALTORS®, or to find a REALTOR, visit www.trarealtors.net.

Three Rivers Association of Realtors Can Help!

Located in Joliet, Illinois, Three Rivers Association of Realtors is a non-profit organization that serves more than 950 realtor and affiliate members. Our association represents the realtors in Will and Grundy County and helps resolve a range of industry related disputes.

Working closely with municipal leaders and congress members, it is our mission to help provide a good housing market for the community. Three Rivers helps realtors in the area with a wide, but industry-specific range of services. Our multiple listing service, education programs and extensive political action programs are just a few of the services we provide. Take a look at what our non-profit can offer:

• Speak to and address real estate issues
• Enhance the public image of our members
• Consumer outreach
• Provides opportunity for professional growth and education
• Communicates information to our members to help them succeed in their business activities
• Identifies, anticipates, and addresses economic and marketing trends in the real estate industry
• Works with congress on issues like mortgage interest deduction, flood insurance and all -effect home ownership
• Public relations and government affairs

Three Rivers works with the Illinois Association of Realtors and the National Association of Realtors in an effort to provide members with the tools necessary to remain successful. We aim to enhance the ability and opportunity for realtors to conduct their business successfully, ethically, and to promote the preservation of the right to won, transfer and use real property.

Changes in the real estate industry are ever evolving; let Three Rivers help you navigate your real estate issues and the housing market today! To learn more about Three Rivers Association of Realtors, give us a call at 815-744-4520 or visit www.trarealtors.net.