November 17, 2010
10 Tips For New Buyers by Carla Hill
It is a great time to buy for many would-be homeowners. The market offers historically low interest rates, as well as affordable home prices.
Here are 10 steps that buyers can take to make home dreams a reality!
1. Savings. You may already know how much monthly payment you can support (experts recommend no more than 1/3 your monthly income), but the buying process will also include upfront costs, such as a downpayment and closing costs.
2. Downpayment options. Do you qualify for downpayment assistance programs? Will you be able to get an FHA loan and pay 3.5 percent down? Do you have a relative that would like to make a downpayment gift? Many financial experts recommend a downpayment of 20 percent, so be sure to explore your options!
3. Check Credit Report. Your credit report says a lot about you. Lenders use it to evaluate your risk potential and to inform themselves on how responsible of a borrower you are. They use this report and subsequent score to figure your interest rate. The more stellar your report, the better your score and thus lower your rate. Be sure to check your report for accuracy, and report any errors to the credit reporting agencies.
4. Get Preapproved. It's time to talk to a lender! Pre-approval will give you a ballpark figure of how much the bank would be willing to lend you. Are you looking for a $100,000 house or a $300,000?
5. Get Prequalified. This is the official letter from the lender that says they will be willing to lend you money. Many sellers look for buyers who are prequalified.
6. Affordability. The bank may tell you that you can afford a home worth $300,000. This does not mean you want to borrow to your max. A more modest home may fit better in your financial plans.
7. Housing Criteria. You have a budget, now develop a list of what you need and want. This can include anything from "must have 3 bedrooms" to "hardwoods" or "granite".
8. Neighborhood choice. Location strongly affects prices. A 3,000 square foot home in rural Kansas costs a fraction of one in New York City. Decide what neighborhoods and areas are the best fit for you. This will help narrow your home search.
9. Hire an agent. An agent can help you navigate the entire process from searching, putting in offers, to where to hire an inspector or general contractors.
10. Start the search! The MLS is a wonderful place to begin your search. Eighty-four percent of buyers now start their search online, so you'll be in good company.
Copyright © 2010 Realty Times. All Rights Reserved.
Showing posts with label buy. Show all posts
Showing posts with label buy. Show all posts
Wednesday, November 17, 2010
Friday, July 30, 2010
Five Smart Reasons to Buy a Home Now
Five Smart Reasons to Buy a Home Now
RISMEDIA, July 30, 2010--The economy is stabilizing. Home prices are holding. It's not just as good a time as ever to buy a house. It's one of the best times ever.
ForSaleByOwner.com presents five overlooked reasons why now is a great time to buy a house.
1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today's record-low rates, they start building equity as soon as they close. That means they have a little give to absorb a few ups and downs as the still-recovering housing market gains traction.
2. Houses are in move-in condition. Homeowners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. Homeowners who have been holding back kept their houses in good shape while they waited. As those houses enter the market, they are in marked contrast to tattered foreclosures.
3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system – and this is just the opportunity that owners of many desirable properties have been waiting for.
4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines...again. Now that appraisers have more flexibility to set values that reflect the current market, today's deals will make it over the finish line.
5. Plenty of programs. Homes are more affordable than they have been for years, but communities have stuck by "workforce housing" programs that encourage middle-class families to buy houses. Buyers who qualify can get a big boost by combining one of these programs with today's low mortgage rates.
RISMedia, Inc.
© 2010 by Lowe's®. All rights reserved
RISMEDIA, July 30, 2010--The economy is stabilizing. Home prices are holding. It's not just as good a time as ever to buy a house. It's one of the best times ever.
ForSaleByOwner.com presents five overlooked reasons why now is a great time to buy a house.
1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today's record-low rates, they start building equity as soon as they close. That means they have a little give to absorb a few ups and downs as the still-recovering housing market gains traction.
2. Houses are in move-in condition. Homeowners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. Homeowners who have been holding back kept their houses in good shape while they waited. As those houses enter the market, they are in marked contrast to tattered foreclosures.
3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system – and this is just the opportunity that owners of many desirable properties have been waiting for.
4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines...again. Now that appraisers have more flexibility to set values that reflect the current market, today's deals will make it over the finish line.
5. Plenty of programs. Homes are more affordable than they have been for years, but communities have stuck by "workforce housing" programs that encourage middle-class families to buy houses. Buyers who qualify can get a big boost by combining one of these programs with today's low mortgage rates.
RISMedia, Inc.
© 2010 by Lowe's®. All rights reserved
Thursday, December 24, 2009
Real Estate Resolutions 2010
Realty Times of December 24, 2009
Real Estate Resolutions 2010 by Broderick Perkins
Sure you can lose weight, get in shape, launch a business or find a new job.
But haven't you also procrastinated long enough about buying a home?
How long has it been since you upgraded your home with a new roof, spiffed up landscaping or pulled some other home improvement?
And that post-World War II ranch home of yours could certainly use a few energy efficient do-overs.
Look to low mortgage interest rates, bargain home prices and other favorable market conditions to give you the resolve to consider home sweet home in your list of must-dos next year.
• Join the nearly 18 percent of Americans who say they've resolved to become a first-time homebuyer in 2010, according to a new Move.com survey. That's both a smart move and a timely one. Mortgage rates are at record lows, prices are down and the $8,000 first-time home buyer tax credit has been extended until April 30, 2010. It's also been expanded to include a $6,500 tax credit to move-up buyers.
• More than 15 percent of those who responded to the survey said saving money to purchase a new home is their top real estate resolution for the New Year. Resolve with them to learn the best way to budget, plan ahead and save money.
• Nearly 40 percent say No. 1 on their list of resolutions is starting a home improvement. Cheap home equity money should help them not only start, but also complete the job. Calabasas, CA-based Informa Research Services found home equity lines of credit (HELOCs) for $50,000, with an 80 percent loan-to-value note, were available in early December at an average variable rate of 4.98 percent. Some rates were as low as 2.74 percent.
• The Move.com survey also found 9.1 percent most wanted to fix their credit so they can buy a home next year. To get started all you need to do is take a look at your next credit card statement for a toll free number directing you to counseling help. That's part of the new, but little-known mandated disclosure provisions in the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act).
• Nearly 16 percent are wisely considering buying an investment property as their top resolution. The couldn't have picked a better time in the last half decade. Another Move.com survey recently found more than 12 percent of homebuyers today plan to purchase a home as an investment, compared to less than half, only 5.6 percent, just seven months ago, thanks to more attractive investment conditions.
"If you anticipate inflationary conditions in the future, investment property could be a good bet to hedge against it," said Nancy Osborne, chief operating officer of Erate.com, a Santa Clara, CA-based financial information publisher and interest rate tracker.
--------------------------------------------------------------------------------
Copyright © 2009 Realty Times. All Rights Reserved.
Real Estate Resolutions 2010 by Broderick Perkins
Sure you can lose weight, get in shape, launch a business or find a new job.
But haven't you also procrastinated long enough about buying a home?
How long has it been since you upgraded your home with a new roof, spiffed up landscaping or pulled some other home improvement?
And that post-World War II ranch home of yours could certainly use a few energy efficient do-overs.
Look to low mortgage interest rates, bargain home prices and other favorable market conditions to give you the resolve to consider home sweet home in your list of must-dos next year.
• Join the nearly 18 percent of Americans who say they've resolved to become a first-time homebuyer in 2010, according to a new Move.com survey. That's both a smart move and a timely one. Mortgage rates are at record lows, prices are down and the $8,000 first-time home buyer tax credit has been extended until April 30, 2010. It's also been expanded to include a $6,500 tax credit to move-up buyers.
• More than 15 percent of those who responded to the survey said saving money to purchase a new home is their top real estate resolution for the New Year. Resolve with them to learn the best way to budget, plan ahead and save money.
• Nearly 40 percent say No. 1 on their list of resolutions is starting a home improvement. Cheap home equity money should help them not only start, but also complete the job. Calabasas, CA-based Informa Research Services found home equity lines of credit (HELOCs) for $50,000, with an 80 percent loan-to-value note, were available in early December at an average variable rate of 4.98 percent. Some rates were as low as 2.74 percent.
• The Move.com survey also found 9.1 percent most wanted to fix their credit so they can buy a home next year. To get started all you need to do is take a look at your next credit card statement for a toll free number directing you to counseling help. That's part of the new, but little-known mandated disclosure provisions in the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act).
• Nearly 16 percent are wisely considering buying an investment property as their top resolution. The couldn't have picked a better time in the last half decade. Another Move.com survey recently found more than 12 percent of homebuyers today plan to purchase a home as an investment, compared to less than half, only 5.6 percent, just seven months ago, thanks to more attractive investment conditions.
"If you anticipate inflationary conditions in the future, investment property could be a good bet to hedge against it," said Nancy Osborne, chief operating officer of Erate.com, a Santa Clara, CA-based financial information publisher and interest rate tracker.
--------------------------------------------------------------------------------
Copyright © 2009 Realty Times. All Rights Reserved.
Tuesday, March 3, 2009
First-time Buyers - Rescue Housing Market
From Realty Times March 3, 2009
First-time Buyers Must Rescue Housing Market
by Jim Adair
First-time buyers drove Canada's decade-long housing boom and they will lead the market out of the current downturn, says Phil Soper, president and CEO of Brookfield Real Estate Services. Brookfield owns the Royal LePage and La Capitale brands in Canada, and it recently acquired GMAC Real Estate, which has almost 17,000 sales reps in Canada and the United States.
Speaking at a recent Scotiabank forum, Soper said first-time buyers represented almost 70 per cent of the market when it peaked in 2007. Now they account for about 40 per cent of all transactions.
"Like stalled credit, the cycle of buyers and sellers grinds to a halt when first-time buyers disengage," said Soper. "It's like sand in the gears of the real estate market." He said young new buyers allow entry-level homeowners to move up to larger homes as children arrive, and in turn that helps mid-price owners aspire to more luxurious homes. "But without mover-uppers, they are stuck," said Soper.
He said it's going to take lower home prices and "transactional risk mitigation" to make first-timers start buying again. That is already being helped by dropping prices and historically low mortgage interest rates. Government incentives such as those announced in the recent federal budget will also help, he said.
The risk mitigation is helped by the return of conditional offers. During the boom, potential buyers often found themselves in bidding wars for desirable properties, and had to submit "clean" offers without any strings attached. With the softer market, now offers are being accepted with conditions on such things as successfully obtaining financing and home inspections.
Soper says the real estate industry is also seeing a shift away from the traditional "listing side" of the transaction and more to a focus on buyers. Buyer agency is growing, and brokerages are holding events such as first-time buyer seminars to help educate those entering the market. He says seller-driven contractual offers are also increasing to try and seal a deal.
Noting that housing markets have traditionally rebounded well after a recession, Soper predicted the current downturn would last about seven quarters, the same as the market correction in 1989/90. That would mean the market would flatten in the third quarter of this year and start its recovery in the fourth quarter.
Soper's forecast is more optimistic than that of his Scotiabank hosts.
Addressing the overall economy, chief economist Warren Jestin said, "The worst of the bad news will be in the first six months of this year, and next year the good news will outweigh the bad news." But he said it will be a long recovery that "may linger beyond 2010."
Senior economist Adrienne Warren said, "Another 15 to 20 per cent decline in the volume of resales is likely this year, with a further 10 per cent drop in average prices. Centres with the largest supply-demand imbalance, including Vancouver, Sudbury (Ont.) and Calgary, have relatively greater downside risk."
But she repeated what most observers have been saying about the Canadian housing market all along – that as bad as it gets in Canada, the situation is better here than in the U.S. There were far fewer subprime mortgages issued in Canada than the U.S., and the number of mortgage defaults in Canada still lingers near a record low, at about one-third of one per cent. Canadians also have more equity in their homes than their U.S. counterparts – almost 70 per cent, compared to about 45 per cent in the U.S. – reducing the risk of foreclosure.
Despite the introduction of a tax credit in the federal budget to promote renovation activity, Warren says the outlook for the renovation industry is "somewhat mixed." Spending on home improvements and alterations in Canada was close to $40 billion last year, about the same as was spent on new construction.
"The main factors behind the boom in renovations in recent years – record existing home sales, rising home prices and equity, high new home prices, record homeownership rates, an aged housing stock, and strong job and income growth – are no longer supportive," says Warren. "Renovation expenditures are typically highly cyclical, as are other areas of big-ticket discretionary spending. Job worries and a tendency for households to boost savings in today's uncertain economic and financial climate will likely trump the desire to undertake a significant new home renovation."
Copyright © 2009 Realty Times. All Rights Reserved.
First-time Buyers Must Rescue Housing Market
by Jim Adair
First-time buyers drove Canada's decade-long housing boom and they will lead the market out of the current downturn, says Phil Soper, president and CEO of Brookfield Real Estate Services. Brookfield owns the Royal LePage and La Capitale brands in Canada, and it recently acquired GMAC Real Estate, which has almost 17,000 sales reps in Canada and the United States.
Speaking at a recent Scotiabank forum, Soper said first-time buyers represented almost 70 per cent of the market when it peaked in 2007. Now they account for about 40 per cent of all transactions.
"Like stalled credit, the cycle of buyers and sellers grinds to a halt when first-time buyers disengage," said Soper. "It's like sand in the gears of the real estate market." He said young new buyers allow entry-level homeowners to move up to larger homes as children arrive, and in turn that helps mid-price owners aspire to more luxurious homes. "But without mover-uppers, they are stuck," said Soper.
He said it's going to take lower home prices and "transactional risk mitigation" to make first-timers start buying again. That is already being helped by dropping prices and historically low mortgage interest rates. Government incentives such as those announced in the recent federal budget will also help, he said.
The risk mitigation is helped by the return of conditional offers. During the boom, potential buyers often found themselves in bidding wars for desirable properties, and had to submit "clean" offers without any strings attached. With the softer market, now offers are being accepted with conditions on such things as successfully obtaining financing and home inspections.
Soper says the real estate industry is also seeing a shift away from the traditional "listing side" of the transaction and more to a focus on buyers. Buyer agency is growing, and brokerages are holding events such as first-time buyer seminars to help educate those entering the market. He says seller-driven contractual offers are also increasing to try and seal a deal.
Noting that housing markets have traditionally rebounded well after a recession, Soper predicted the current downturn would last about seven quarters, the same as the market correction in 1989/90. That would mean the market would flatten in the third quarter of this year and start its recovery in the fourth quarter.
Soper's forecast is more optimistic than that of his Scotiabank hosts.
Addressing the overall economy, chief economist Warren Jestin said, "The worst of the bad news will be in the first six months of this year, and next year the good news will outweigh the bad news." But he said it will be a long recovery that "may linger beyond 2010."
Senior economist Adrienne Warren said, "Another 15 to 20 per cent decline in the volume of resales is likely this year, with a further 10 per cent drop in average prices. Centres with the largest supply-demand imbalance, including Vancouver, Sudbury (Ont.) and Calgary, have relatively greater downside risk."
But she repeated what most observers have been saying about the Canadian housing market all along – that as bad as it gets in Canada, the situation is better here than in the U.S. There were far fewer subprime mortgages issued in Canada than the U.S., and the number of mortgage defaults in Canada still lingers near a record low, at about one-third of one per cent. Canadians also have more equity in their homes than their U.S. counterparts – almost 70 per cent, compared to about 45 per cent in the U.S. – reducing the risk of foreclosure.
Despite the introduction of a tax credit in the federal budget to promote renovation activity, Warren says the outlook for the renovation industry is "somewhat mixed." Spending on home improvements and alterations in Canada was close to $40 billion last year, about the same as was spent on new construction.
"The main factors behind the boom in renovations in recent years – record existing home sales, rising home prices and equity, high new home prices, record homeownership rates, an aged housing stock, and strong job and income growth – are no longer supportive," says Warren. "Renovation expenditures are typically highly cyclical, as are other areas of big-ticket discretionary spending. Job worries and a tendency for households to boost savings in today's uncertain economic and financial climate will likely trump the desire to undertake a significant new home renovation."
Copyright © 2009 Realty Times. All Rights Reserved.
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