Real Estate News

Things Not To Do Before Purchasing A Home: 2-18-12

Here are a few tips to keep in mind of what not to do prior to buying a home.

No Major Purchase of Any Kind This includes furniture, appliances, electronic equipment, jewelry, vacations, expensive weddings……and automobiles, of course.

Don’t Move Money Around When a lender reviews your loan package for approval, one of the things they are concerned about is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last two or three months on any of your liquid assets. This includes checking accounts, savings accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company 401K and retirement accounts.
If you have been moving money between accounts during that time, there may be large deposits and withdrawals in some of them.

The mortgage underwriter (the person who actually approves your loan) will probably require a complete paper trail of all the withdrawals and deposits. You may be required to produce cancelled checks, deposit receipts, and other seemingly inconsequential data, which could get quite tedious.

Perhaps you become exasperated at your lender, but they are only doing their job correctly. To ensure quality control and eliminate potential fraud, it is a requirement on most loans to completely document the source of all funds. Moving your money around, even if you are consolidating your funds to make it "easier," could make it more difficult for the lender to properly document.

So leave your money where it is until you talk to a loan officer.
Oh…don’t change banks, either.

Good News - More Buyers Are Getting Off The Fence: 1-24-12

When you compare the cost of owning a home to renting, you’ll find that buying may soon make more sense, Paul Diggle, a housing economist at Capital Economics, told MSNBC.com.

Diggle’s analysis of the housing market showed a 33 percent drop in home prices, record-low mortgage rates (with 30-year fixed-rate mortgages available under 4 percent now), and a 15 percent rise in rents since the housing market turned sour are making more consumers take a closer look at buying.

The median monthly mortgage payment of about $700 has fallen to about the level of a median monthly rent check,” an article at MSNBC.com notes about Diggle’s analysis. “If mortgage rates keep falling and rents keep rising, the equation will tip even further toward owning.”

Case in point: Diggle says that a buyer who purchases a median-priced home and stays there for at least seven years would likely come out ahead by about $9,000 than if they chose to rent for those seven years. Diggle’s calculations factor in rents continuing to rise 3 percent a year, and housing prices staying flat for the next two years before rising in 2014.

Low Appraisals To Blame For Market: 12-20-11

Low appraisals have been blamed for continuing to hamper the real estate market. So Kirchmeyer & Associates is debuting an appraisal warranty insurance program to its appraisal management services to protect lenders and investors against faulty appraisals. The insurance will protect lenders and investors against default losses, including repurchase expenses, as well as “provides assurance to the investment community that the valuation will not ultimately impair the performance of the loan,” according to a release by the company.

Here’s how it’ll work: In cases where a “loan defaults, forecloses, or a loan repurchase demand occurs and a valuation inaccuracy is found, the insurer will pay the claim subject to the terms and conditions of the insurance policy,” according to the company. The program will be operated in partnership with Group9 Insurance Solutions. "Rebuilding the mortgage industry's confidence is paramount in today's market, and having a plan in place enables the industry to thrive," James Kirchmeyer, Kirchmeyer president, said in a statement. While mortgage insurance traditionally covers losses on default or foreclosure, it does not tend to cover appraisals. Lenders have increasingly cited flawed appraisals as hampering the recovery.

Are Popular Home Sites Accurate?: 11-17-11

Not always. Surprisingly many sites that allow agents or owners post their properties on their own may be giving inaccurate information such as price or if the home is really still for sale. Several agents have been found to advertise sold homes as a way to generate seller or buyer leads. Although it is illegal to advertise falsely, sites like Zillow.com & CraigsList.com have no way of verifying every ad posted onto their sites. According to NAR (The National Association of Realtors) the most accurate and enforced home search system is the MLS (Multiple Listing Service) where information is regulated & fines are issued for inaccuracies. This is the #1 system used by real estate agents across the U.S.

Buying A Home Is A Safer Investment Than Buying Gold: 10-04-11

Statistics and surveys show that buying a home is still a safer bet than buying gold or a 401K. The results of a biannual survey, released this week by real estate search and marketing portal Trulia, found that 80 percent of homeowners plan to buy another home, and that most survey participants view homeownership, and placing money in a 401(k) or other retirement account, as the best long-term investments. Market research firm Harris Interactive conducted the survey, which drew responses from 1,392 homeowners and 758 renters, from Aug. 30, 2011, to Sept. 1, 2011.

It's Cheaper To Buy Than It Is To Rent: 09-19-11

If you're currently renting and have dreamed of owning a home, now may be the perfect time. Reports show that during the month of July 2011, buying was cheaper than renting in 74% of the country's 50 largest cities. In 14% of other areas it was a tie however, in Seattle, New York and San Francisco it was still cheaper to rent. The top 4 best places to buy compared to renting right now is Las Vegas followed by Detroit, Michigan; Mesa, Arizona and Fresno, California.

Founder of ForSaleByOwner.com Sells Using A Real Estate Agent: 08-09-11

The founder of a popular for-sale by owner Web site used a real estate broker to help sell his 2,000-square-foot, two-bedroom New York apartment after it lingered on the market for six months. Colby Sambrotto, the founder and former chief operating officer of ForSalebyOwner.com, tried to sell the property himself by listing it online and through classified ads, but after six months of it sitting on the market, he sought the help of a real estate broker.

Broker Jesse Buckler told Sambrotto the condo was priced too low and wasn’t attracting the right buyer for the condo.

"At first he wouldn't let me increase the price," Buckler said. "I told him I know what I am doing—the market is picking up."

The condo soon attracted multiple offers and ended up closing recently for $150,000 more than the original asking price.

Buying A Home Using Your VA Benefits - Active & Prior Service: 7-15-11

Their are several benefits using your VA and you may qualify even if you're not on active duty (prior service). Benefits include low to no money down, no closing costs, low interest rates, no monthly mortgage insurance and more...

The 1st step is to see if you qualify by speaking with a qualified VA lender. They will need a copy of your DD214 (service discharge papers), current employment information, income, any debt and credit scores. Based on the above information the lender will let you know what you qualify for and what your estimated monthly mortgage payments will be.

The 2nd step is to work with a licensed real estate agent that understand the VA process when buying. The qualified buyer's agent is a free service and they will show you the homes meeting your searching needs. Once a home is found they will negotiate the offer on you behalf, suggest any needed inspections, verify contract requirements are being met, prepare you for closing and then get you the keys to your home. The agents actually do a lot more behind the scenes but that was just the short version. To find help or to get more details about qualifying / using your VA benefits just click the appropriate link below.

Military Members Seek Housing Help When Transferred: 6-06-11

Many military members are finding themselves in a predicament when it comes to real estate: The homes they own are worth less than what they paid for, but they have orders from the government that are forcing them to relocate and take on a big loss.

While military members know moving is part of the job, they didn’t foresee the drop in housing prices. Defaulting or walking away from the home is not an option either: A foreclosure can cost a military member their security clearance.

The Department of Defense and Congress is trying to help. Military members forced to relocate can apply to a mortgage assistance program, which was started in 2009. But the program has been bogged down with requests and faces a $400 million budget deficit by the end of this year. A proposed bill seeks to expand the program's eligibility requirements.

VA Medical Benefits Available For Many Prior Service Members: 05-12-11

If you ever served in the military and were honorably discharged, you may qualify for VA medical. We have had many prior service members get approved even when they thought they couldn't. Simply go to the link below, fill out app. and send to your local VA hospital.

https://www.1010ez.med.va.gov/sec/vha/1010ez/

Major Bank Overcharges 4,000 Troops: 02-04-11

JP Morgan Chase, one of the nation’s largest banks, says it overcharged some 4,000 troops on their mortgages and improperly foreclosed on 14 military families. The bank admitted the mistake during a lawsuit that was filed by Marine Capt. Jonathan Rowles, who was on active duty when the bank overcharged him and his family by as much as $900 a month on their mortgage. Refunds are being mailed out to those affected by the inaccuracies.

Experts Predict That We Have Another 2 Years of Recovery: 01-07-11

Americans continue to grapple with uncertainty about the housing market, with 58 percent of U.S. adults expecting recovery to be at least another two years away. Rick Sharga of RealtyTrac and Pete Flint of Trulia are of the same mind as consumers. They peg the housing recovery to begin taking shape between 2013 and 2014. The robo-signing debacle has left most consumers mired in distrust of banks and the government. The industry experts say its effect on REO sales will be minimal, but the impact on consumer confidence could be especially damaging. They also state that this is the best time to buy while the market is still in favor of the home buyer.