Four Expert Views on the 2021 Housing Market

Jan 21, 2021

Four Expert Views on the 2021 Housing Market | MyKCM

The housing market was a shining star in 2020, fueling the economic turnaround throughout the country. As we look forward to 2021, can we expect real estate to continue showing such promise? Here’s what four experts have to say about the year ahead.

Lawrence Yun, Chief Economist, National Association of Realtors (NAR)

“In 2021, I think rates will be similar or modestly higher, maybe 3%...So, mortgage rates will continue to be historically favorable.”

Danielle Hale, Chief

“We expect sales to grow 7 percent and prices to rise another 5.7 percent on top of 2020’s already high levels.”

Robert Dietz, Senior Vice President and Chief EconomistNational Association of Home Builders (NAHB)

“With home builder confidence near record highs, we expect continued gains for single-family construction, albeit at a lower growth rate than in 2019. Some slowing...

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Why HOW Your Wages Are Paid Matters To Your Lender

Dec 06, 2020

Cash, income, credit history...the big three of getting an approved home loan. All equally important and all have very specific guidelines and documentation requirements. This article is going to talk about income and why how you are paid could make a huge difference in the amount of the mortgage you may be eligible to borrow.

There are many methods of employment compensation. Just to name a few:

  • Hourly
  • Hourly with overtime
  • Hourly with bonus
  • Salary
  • Salary with bonus
  • Salary with commission
  • Straight commission 
  • Wage paid by your own company (or family business)

Ultimately what your lender wants to establish is the stability and consistency of your income. If you work a standard 40-hour week and are paid hourly or on a set salary; that's the easy part and is fairly straightforward. Anything outside of that gets special attention.

Overtime and Bonus Income

Typically your lender will want to verify that you have received either over time or bonus income for a minimum of two years....

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Homes Are More Affordable Today, Not Less Affordable

Jan 31, 2020

Homes Are More Affordable Today, Not Less Affordable | MyKCM

There’s a current narrative that owning a home today is less affordable than it has been in the past. The reason some are making this claim is because house prices have substantially increased over the last several years.

It’s not, however, just the price of a home that matters.

Homes, in most cases, are purchased with a mortgage. The current mortgage rate is a major component of the affordability equation. Mortgage rates have fallen by over a full percentage point since December 2018. Another major piece of the affordability equation is a buyer’s income. The median family income has risen by approximately 3% over the last year.

The National Association of Realtors (NAR) releases a monthly Housing Affordability Index. The latest index shows that home affordability is better today than at almost any point over the last 30 years. The index determines how affordable homes are based on the following:

“A Home...

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