With the government's $8,000 incentive for buying a home, a real estate purchase naturally makes sense for first-time buyers who qualify for the tax credit. But today's market also provides less-obvious benefits for those who already own a home.
Although they won't be able to take advantage of the first-time home buyer tax credit if they currently own their primary residence, they will be able to reap the benefits of lower home prices and fantastic mortgage rates.
While some existing homeowners may be anxious to trade in their current home for a new one because of these incentives, there is always the concern that they will take a loss if they sell their house in a buyer's market. However, in some circumstances, it may make sense for the homeowner to sell at a loss because he or she may be able to more than make up the difference by getting a discount on the new home.
I was recently reading an article in Money Magazine, "Sell at a loss, buy at a discount," that detailed this situation. A condo owner was anxious to move out of her existing place into a better neighborhood but was concerned about selling her place for less than she'd hoped. Money's financial planners advised the reader to consider selling her current place because she would likely be able to trade up to a nicer home with the discount on that home offsetting her losses on her current home.
Consider the following example: Let's say two years ago, you would have sold your current home for $200,000. In today's market, however, you are only able to sell the home for $190,000, a loss of $10,000. But consider further that two years ago, the home you wanted to trade up to was $400,000, but it's now selling at $380,000, a $20,000 discount. That gives you a total savings of $10,000. Plus, your mortgage interest rate would likely be much lower today than it would have been two years ago, saving you even more money.
Higher-priced homes generally sell for a greater discount because there is less demand for trade-up real estate. In fact, over the past year, the majority of homes sold along the Wasatch Front have been priced under $250,000. Because of this, owners of pricey houses may be offering even greater discounts than the sellers of more affordable starter homes.
That means the greater activity in the lower price range could draw attention to your home, freeing you up to buy a nicer home at an even greater discount than the one you gave to your buyer.
Nevertheless, if this is a strategy you want to pursue, you'll want to have a plan. Start by contacting a Realtor to get a realistic view of how much you can sell your home for in the current market. Then have your Realtor help you determine how much you can expect to pay for the home you'd like to buy. With that information in hand, you'll be able to better decide if trading up makes sense for you.
There are a number of other items to also take into consideration when selling your property and buying a new one, such as whether you will sell your current home and rent before buying, whether you will try to buy and sell simultaneously, or whether you will own two properties for a period of time.
Trading up can be tricky, but in today's buyer's market, it can also be the perfect time to make a move. Contact your local Realtor to decide if trading up is right for you.
Utah economy on the road to recovery-President's message
Utah's economy is currently facing challenges, but the state is well-positioned for an economic recovery. That was the message of the director of the University of Utah's Bureau of Economic and Business Research in a presentation to Utah Realtors on Tuesday.
"Utah's fundamentals are still in place," said James Wood. "Once growth resumes, Utah will outperform most states."
Among those fundamentals are
1) The state government's fiscal responsibility 2) The state's transportation infrastructure 3) Population growth 4) Quality of life and 5) A quality and cost-effective workforce
Wood says Utah's recovery will coincide with that of the U.S. as a whole, which is why it is encouraging to see recent reports of positive national news. Increases in existing home sales, new home starts, productivity and retail sales are just a few of the positive headlines that have been in the news recently. Even Federal Reserve Chairman Ben Bernanke said "the recession has likely ended."
The Case-Shiller Index, which measures home prices in major U.S. metro areas, has also been up for the past three months. Although the data does not include Utah prices, the positive news should help the U.S. economy, in turn helping our local economic conditions.
"We need good national numbers to help our employment numbers here," Wood said.
Although employment is one of the last indicators to pick up, real estate, which is a leading indicator, appears to be seeing improvements. In the spring, the 38-month decline in home building ended as well as the 27-month drop in existing home sales in the four Wasatch Front counties and Tooele.
"I think we have established a bottom," Wood said.
Of course, there are still challenges that will keep economic growth tepid for the next 18 months, he said. That's because the U.S. financial system is still damaged, consumers are continuing to cut back, and the federal and state fiscal stimulus impacts will begin to fade in early 2010.
"The private sector must be a driver of a self-sustaining economic recovery," he said.
At the end of his presentation, Wood encouraged attendees to maintain a positive perspective and to remember that 1.2 million people go to work every day in our state, and our unemployment rate is only about 6 percent compared to the nearly 10 percent nationally.
Also attending the same meeting was Utah Gov. Gary Herbert who reiterated his inaugural speech, saying his No. 1 priority is getting the economy moving. Like for real estate practitioners who repeat the phrase "location, location, location," Herbert said his mantra is "jobs, jobs, jobs."
"My prediction is Utah will come out of this better than most," Herbert said, quoting a study from the American Legislative Exchange that said Utah will be the first state to come out of the recession. "Even with today's down economy, we've got in-migration coming to Utah," and the state's other economic fundamentals still remain in tact.
Herbert's plan for economic growth focuses on protecting Utah jobs, fostering entrepreneurial growth and recruiting companies to bring their businesses to the state. And he has assembled a "dream team" of economic development, including Spencer Eccles, Josh Romney and Derek Miller, to help him do just that.
"What we need to do is be proactive," Herbert said. "I can do something about Utah, and my focus is that Utah can survive the storms that are out there."
Tips for Getting a Fair Appraisal-President's message
Bob and Mary thought they'd found their dream home, especially when they made an offer and the seller accepted it. All the closing preparations appeared to be moving smoothly until the appraisal came back significantly lower than the price they'd offered to pay, thereby jeopardizing their chances of getting financing on that particular property.
The home appraisal is a vital part of both the home buying and mortgage refinance processes, because buyers and lenders need to be assured that the purchase price or loan amount is in line with the home's market value. This helps prevent the buyer from overpaying and protects the lender from loss in case the home goes into foreclosure. However, during the housing boom years, there were reports that appraisers were being unduly influenced to appraise homes for higher than they were worth.
That's why mortgage giants Fannie Mae and Freddie Mac agreed to adopt a Home Valuation Code of Conduct that aimed to create independence in the appraisal process. However, it appears the code has created unintended consequences as well, such as unusually low valuations. In fact, some reports suggest that there has been a greater use of unqualified appraisers since the code was implemented.
Just as an inflated appraisal causes problems, so do lower-than-market valuations. Buyers are unable to get financing for the home they'd like to buy and homeowners are prevented from refinancing their mortgages. Nevertheless, even though Bob and Mary's situation has become more common with the new regulations, there are still things buyers and sellers can do to ensure they get a fair appraisal.
First, make sure the appraiser who is assigned to appraise the home is experienced in appraising similar homes in the area. There have been reports that some appraisers are conducting appraisals outside their geographic areas of expertise, so make sure to do a little background research before the appraisal is conducted.
Second, the homeowner should make sure the home is clean and presentable. The appearance of the house could have some influence on the final number, so prepare the home the same way you would for an open house, suggested Michael H. Evans, of the American Society of Appraisers, in a recent Money Magazine article.
Third, the homeowner should make sure to be available during the appraisal. Prepare a list of the house's attributes that may not be readily apparent to the appraiser. For example, a home sound system or energy-efficient upgrades could add value to the home, but might not be readily noticeable to the appraiser.
Fourth, if the appraisal comes back lower than you expected, carefully review the report. Have your Realtor help you determine if the data used in the report was the best available. Perhaps your Realtor knows of other recently sold comparable homes that might be a closer match to your home. Also be on the lookout for any potential errors. Is the square footage accurate? Is there any part of the analysis that doesn't add up? If you find errors or have additional information, present it to the appraiser. Many appraisers will appreciate and consider the extra information.
Finally, if you believe there are problems with the appraisal, that your appraiser is not addressing, talk to your lender. Or you can report the problems to the Utah Division of Real Estate, which regulates appraisers in Utah.
Determining market value is a difficult task in today's market, so it's a wise idea to provide the appraiser with any information you have that might be helpful. Your Realtor also has unparalleled knowledge of local housing markets and is likely to be a valuable resource as you navigate today's new appraisal landscape.
Corie Seymour's blog on getting a loan for a fixer upper that allows the home buyer to include the cost of the improvements to the FHA loan was an eye opener.
The loan has always been available, but was so difficult for the buyer to package that we had almost forgotten about it.
Now if you keep the home improvements under $31,000 it's a piece of cake.
At least that's the way that Doug Walker explained it in Cories blog.
Not only have we sold some Tooele homes that would have been perfect for this type of mortgage, we could have put together some transactions that we couldn't make work before.
Listen to some of what Doug had to say.
Cheap Fixer Upper Financing
In this age of stimulus bills and bail outs you would expect a really cool mortgage loan program to help home buyers. Well, there is one, but it's actually been around for years. There is a little known FHA loan program called the 203(k) that allows you to purchase a home and fix it up with the same loan. It's not very well known because most lenders either can't do them or just don't want to do them. They are more work than the average loan officer wants to do and most companies don't have underwriters that are familiar enough with them to confidently issue an approval that FHA will accept. At Republic Mortgage we feel the benefit to the client is so big that we have made the commitment to offer this program. We have loan officers who have been certified on this program (of course, that includes me) and the staff to get them done.
If you don't have a fixer upper in mind, but would like to search for one in Tooele, Grantsville, or Stansbury Park stop by our website @Tooele Homes For Sale. You can search for hundreds of homes or Condos listed in Tooele County and receive photos, prices, maps, directions and tips on buying or sellig a home.
Or you can call us @ 435-840-5029. We'll talk to you about Tooele Real Estate or just about getting an FHA loan for your fixer upper.
New grant programs offer home-buying incentives-Presidents Message
Even though the tax credit for first-time home buyers is set to expire Nov. 30, there is still time to take advantage of that program. Not only that, there are three new local incentives that could sweeten the deal even more.
One such program is a second round of grants for buyers of new construction. On Friday, Gov. Gary Herbert announced the renewal of the popular Home Run program, which before expiring in June had provided more than 1,600 grants to buyers of newly constructed, never-occupied homes.
The reinstated program will provide $4,000 grants to approximately 1,950 buyers. The grants will be awarded on a first-come, first-served basis to buyers who apply for the funds through their Utah Housing Corporation-approved lender by Nov. 30.
Unlike the original program that was only available for homes that were ready for occupancy upon closing, Home Run 2 allows buyers to receive grants for homes that will be constructed or are under construction as well as homes that are move-in ready but have never been occupied.
Buyers can apply for the funds through a Utah Housing Corporation-approved lender. Once the application is complete, Utah Housing will issue a grant commitment. For purchases of move-in ready homes, the commitment will expire after 10 days. For homes under construction, the commitment will be in effect until June 30, 2010, giving the builder plenty of time to complete the home.
Although the program is not limited to first-time home buyers, there are income restrictions. For singles, incomes cannot exceed $75,000, and married couples cannot have incomes greater than $150,000. For more information about the program and to find a UHC-approved lender, visit UtahHousingCorp.org and look for the Home Run 2 link.
Another grant program for newly constructed homes is available for those looking to purchase in Sandy. The city has created a new program that will provide low- and moderate-income home buyers with a $5,000 incentive for buying a new home in the city. The funds, which can be applied to down payment and closing costs, are in the form of an interest-free loan that becomes a grant after the home buyer has lived in the property three years.
Sandy plans to provide 10 loans to buyers of existing, never-occupied homes, and another 10 to buyers of to-be-constructed homes. The properties must be within Sandy city limits, must be "single-family dwellings," including townhomes and condos, and must not exceed $305,000. Household incomes must be below certain limits to qualify, but the program is open to both first-time and repeat buyers.
Funding for the program comes from a portion of the tax revenue collected from the commercial buildings around City Hall, said city spokeswoman Trina Duerksen. If successful, the program may receive additional funds after the original 20 grants are awarded, she said. So far, all 20 grants are still available.
Finally, for buyers who are interested in both new and existing homes but are short on cash for closing, the Equity Now program from Utah Housing Corporation may be of interest. The newly launched program essentially allows first-time home buyers to use the $8,000 federal home-buying tax credit for down payment and closing costs, even before filing their taxes.
Under the program, borrowers take out a first and a second mortgage, which allows them to close with little or no money down. After filing an amended 2008 tax return, buyers can use their tax credit to pay all or part of the second mortgage. For borrowers who use their full credit on their second mortgage, Utah Housing will credit them $100 toward their second mortgage. The program provides instant equity by allowing buyers to use the tax credit funds to substantially lower or even eliminate the second mortgage balance.
To learn more about the monetization program and to find a participating Utah Housing Corporation lender, visit www.UtahHousingCorp.org and look for the Equity Now link.
These three programs are just a few of many programs designed to help today's home buyers. To learn about other home-buying incentives, contact your local Realtor.
If you don't have a local Realtor but understand that you may need some one representing you in the Home Buying transaction, stop by Group1 Real Estate and interview us by checking out our website.
Earlier this year, one of the local news stations contacted me and asked me for information about staying safe when selling a home. Apparently a man pretending to be a Realtor had asked to see a Lehi home that was for sale. Only after the man had wandered around the house did the family become suspicious and call police who later found out the man was an impostor.
When you are selling a home, there are inherent risks because you are working with unfamiliar people who will be going through your house. You may also find yourself alone with a stranger in a secluded place. Without the proper precautions, your valuables could be stolen or you could risk your own personal safety.
Because of these concerns, the National Association of Realtors has designated Sept. 13-19 as Realtor Safety Week. Along with educating Realtors about the potential risks of meeting prospects, showing homes and hosting open houses, the Association also aims to provide safety information to home buyers and sellers as well. Here are some of their tips for staying safe.
Any homeowner contemplating putting his or her home on the market should consider that strangers will be walking through the home during open houses and showings. That's why it's wise to make sure any valuables are in a safe place, including prescription drugs and personal information like bank statements that could be used for identity theft. Consider hiring a security guard if you have valuables that cannot easily be secured.
After the showing or open house, verify that none of your valuables are missing. It's also a good idea to check that all doors and windows are locked in case someone is planning on breaking into the house later on. Thieves will often use open houses to look for valuables and points of entry, planning to return after the Realtor has left.
Not all prospects are who they say the are, so never allow an unannounced stranger to tour your house. Have all potential buyers call your Realtor who will set up an appointment only after pre-qualifying the prospect. Even if the unannounced guest says they're a Realtor, have that person call and make an appointment with your Realtor. It is never a good idea to show your home without an agent present.
Refrain from talking to prospects about your personal schedule. Do not provide details about when you work or or other information that could let people know when your house will be vacant. Also avoid answering machine messages that indicate you are not at home, and do not discuss security measures with prospects.
Finally, working with a Realtor is also a safety precaution. Realtors are experienced in following safety procedures and are trained to watch for suspicious behavior. Furthermore, Realtors will always pre-qualify prospects before ever bringing anyone to your home.
While buyers do not face as many safety risks in the home-buying process, they should consider the safety of the homes they are buying. As you consider a potential property, carefully observe the neighborhood and look for street lighting and other safety features. Also take time to research the crime in the area. The individual features of the home may also be important as you consider safety. For example, a fenced yard, attached garage and dual-pane windows may provide additional safety.
Regardless of whether you are a home buyer or a seller, safety is an important consideration. Home buyers should carefully consider the safety features of each home while homeowners should have a safety plan in place before putting a home on the market. If you use a Realtor, take time to talk to your agent about what safety procedures he or she will implement when selling your home. Also ask what safety precautions you should personally be taking when your home is on the market.
For more information about buying or selling a home in Utah, visit UtahRealtors.com.
Utah Real Estate is looking up, and I say it's about time.
Each week, this year,as President of the Utah Association of Realtors I have tried to bring every one a message that would hopefully ease the pain from the trials and tribulations that many have never before seen in our Industry. That hasn't always been easy.
This week however, the message and the Utah Real Estate facts that make up that message give all of us that make a living helping folks buy and sell their homes a reason for optimism.
Why? ... Heres Why !!!
Utah homes are the most affordable they've been since 2004, according to a new report from the National Association of Home Builders and Wells Fargo. The Housing Opportunity Index, which uses home prices, mortgage rates and median household incomes to measure affordability, shows a clear trend that homes are becoming more affordable in all of Utah's major metropolitan areas.
That's good news for Utah home buyers who are spending less on their housing costs or are using the savings to trade up to another house. The NAHB considers a home affordable if a family making the area's median income spends less than 28 percent of their pay on housing costs.
In Salt Lake County, a family making the median income of $67,800 could afford to buy 70.6 percent of the homes sold in the second quarter, according to the report. That's up from last year's second quarter when only 54.6 percent of homes sold were considered affordable and up substantially from the record low affordability in third quarter 2007, when only 30.8 percent of homes sold were affordable.
In the Provo-Orem metro area, the affordability improvements were even more pronounced. In the second quarter, 71.3 percent of the homes sold were considered affordable to families making the median income of $62,900, up from only 48.5 percent last year and up dramatically from the record low of 22.5 percent in third quarter 2007.
Ogden-Clearfield had the highest affordability in the state at 81.5 percent (up from 68 percent last year), and St. George, at 57.2 percent, saw a substantial rise in affordability (up from 36.8 percent last year).
The affordability gains are the result of a combination of reduced home prices and lower mortgage rates. Although home prices are still slightly higher than they were in 2004, today's super-low interest rates have put affordability back to 2004 levels. In Salt Lake, for example, 70.6 percent of homes were considered affordable in the most recent data, compared to 75.2 percent in 2004.
The numbers in the Provo-Orem area were even closer to 2004 levels. In the second quarter, 71.3 percent of the homes sold were considered affordable, only a tad off from the 72.6 percent recorded in 2004.
Wells Fargo Chief Economist Kelly Matthews conducted a separate analysis with findings similar to the NAHB report. He said although average home prices are still higher today than in 2004, homes are about as affordable as they were five years ago because mortgage rates are closer to 5 percent rather than the near 6 percent rates in 2004.
"It shows basically along the Wasatch Front, as of year-end, our affordability is back to levels that existed in 2004 [when the real estate market here was doing well]," Matthews said. It was also a time when The Wall Street Journal highlighted Salt Lake City as one of the most undervalued markets in the country.
Now that we're back to those 2004 levels, home buyers are taking notice of the new found affordability. In July, sales of existing Wasatch Front homes were up for the second consecutive month, rising 4 percent, while nationally sales increased 5 percent. Furthermore, the newest data from the National Association of Realtors shows that pending home sales are up for a record sixth consecutive month.
NAR Chief Economist Lawrence Yun said buyers are taking advantage of the low home values before prices turn upward. The first-time home buyer tax credit and record high affordability are also providing momentum to the market. According to Yun, the typical mortgage payment now takes less than 25 percent of a middle-income family's income, the lowest amount on records dating back to 1970.
"If someone feels secure in their employment and income and needs a larger home, in actuality it's probably the best time to buy in a generation," Matthews said.
For more information about the housing market and to find a home that's affordable for you, contact your local Realtor.
If you don't have a Realtor, and are looking to buy or sell a home in Tooele County, Berna and I would like you to consider working with us.
To check us out, or to find out about Real Estate in Tooele, Stansbury Park, Grantsville UT, stop by our website @ Tooele Real Estate.
To search for properties in the Utah click on Utah Homes For Sale and access every House, Condo, & Town Home listed in the Beehive State
Or you can just call us @ 435-840-5029. We'd love to talk about Utah Real Estate looking up.
How Utah'ans can plan to avoid home buyer's remorse- President's Message
Like the ancient Greeks and Romans, we as Americans are also living in our own golden age: the golden age for home buyers, where incredibly low interest rates, discounted home prices and government incentives have combined to create buying opportunities of a lifetime. In fact, three fourths of Americans believe that now is a good time to buy a home, according to a recent National Association of Realtors survey.
But many would be buyers are still faced with uncertainty. "What if prices fall after I've bought a home?" "What if a better property comes available?" "What if I decide I don't like the home?"
As detailed by the New York Times in a recent article, today's buyers face a more psychologically demanding home buying process than their counterparts in the boom years.
When Utah Real Estate prices were skyrocketing, new homeowners could simply sell their property at a profit if they decided they didn't like it. Today's buyer has to make a firm commitment to any purchase, and experts say the uncertainties surrounding home values have left many would-be consumers in limbo.
"The herd mentality was influential in getting people to jump into the bubble, and it is the same keeping people out," Mary Gresham, a clinical psychologist in Atlanta who studies personal finance issues, told the New York Times. "Anxiety runs through a culture just like greed."
But perspective home buyers don't have to be trapped by anxiety. In fact, many of the regrets that could arise later on van be avoided with a bit of advance planning.
In a recent Wall Street Journal column, Douglas Heddings, founder of the Heddings Property Group, LLC at Charles Realty in Manhattan, gave consumers several tips for avoiding buyers remorse. Heddings first suggestion is that Home buyers conduct some research beforehand to avoid overpaying for a property. In his column, he advised buyers to work with their real estate agent to evaluate the prices of similar, comparable properties that have recently sold.
Heddings says limiting your comparisons to properties that have sold in the last two or three months or are currently under contract will provide you with the most up to date information, which will decrease the likelihood of overpaying. Heddings also stressed that it is important to use only properties that are truly comparable. For the most accurate assessment of market value, properties should be in the same neighborhood, built around the same time and have similar features.
In other words if you are buying a home in Stansbury Park, check out the prices of homes listed and sold in Tooele County, rather than West Jordan Homes For Sale in Salt Lake County.
Another way to avoid later regrets about a home purchase is by carefully examining your budget before shopping for a home. Buyers often have doubts or want to get out of their contracts when they realize they might be taking on too much of a financial commitment. Make the process easier on yourself by budgeting and talking with a loan officer about what you are comfortable borrowing and what you can comfortably afford to pay.
In a market where home prices have declined, another common concern is that prices will drop lower. For buyers who have found the right home and would like to buy now, it helps to consider both the price and the interest rate. Even if prices come down 10% in the next year, but interest rates rose 1%, you would still be making the same mortgage payment. Remember, as long as you are comfortable making the monthly payments, it doesn't matter whether surrounding home prices are going down or up.
Finally, determine your goals. Decide what you want from the house, and make a list of the features you have to have.That way you'll be able to objectively evaluate each house and know that it will meet your needs. Also, make sure that you are committed to staying in the house for a few years. As you stay longer, there will be more of a chance for home prices to increase and for you to gain equity.
Of course, even with the most diligent planning, there will still be uncertainties in the home buying process. For the best chance of success, make sure you are working with a local Utah Realtor!
Utah Real Estate, IE: Home Ownership, centered around New Construction particularly, has always provided the engine to create jobs and in turn prosperity for the Beehive state.
During the boom times of the last few years the dynamic growth along the Wasatch and the Salt Lake Valley, with new homes and condominium developments launched rural communities like Herriman, Riverton Utah, and Draper UT into mixed use enclaves and developments of extreme importance as bedroom communities as well as retail hubs.
It wasn't just Salt lake City.
From Saint George in the south to Brigham City in the north, the entire State of Utah was a part of that boom.
And naturally a part of the bust.
The slowdown of New Home Construction, all over the State has created some serious budgetary problems because these towns no matter how large or small came to depend on the fees, assessments, and taxes fueled by New home building.
The maintenance of many of the programs made possible by the Real Estate boom have become a burden to many Utah Cities and Towns.
With that in mind I felt compelled to write the following.
This week I had the opportunity of attending the inauguration ceremony for Utah's new governor, Gary Herbert. Not only was the event an opportunity to celebrate a milestone in the state's history, but it was also a chance to glimpse where Herbert's leadership will take us in the coming months and years.
During his speech, Herbert outlined his three top priorities as governor: jobs, education and energy. For me as a Realtor, the message was particularly meaningful because employment plays such a crucial role as families work to obtain and sustain homeownership. Not surprisingly, a new study from the National Association of Realtors found that 83 percent of Americans see job layoffs and unemployment as barriers to homeownership.
While the Utah real estate market is showing signs of stabilization (preliminary data indicates that year-over-year Wasatch Front home sales in July are up for the second consecutive month), the economy will play a key role in sustaining the recovery and giving Utahans confidence in their employment so they can feel comfortable about buying a home.
Health in the real estate sector in Utah will also lead to the creation of more jobs. For every home that is sold, a variety of other jobs and businesses also generate revenue, from the timber manufacturer all the way to the furniture store. Statistics from the state's recent Home Run program illustrate this point well since the 1,647 homes sold created 7,305 jobs, produced $239.9 million in wages and generated 20 million in taxes.
I applaud our new governor's efforts to help the economy, and I am confident his work to create new jobs will give Utahans the confidence they need to purchase a home, which will in turn spur the creation of even more jobs.
Like home ownership's connection to the economy, it also plays a role in Herbert's second priority: educational achievement. A 2001 Harvard Joint Center for Housing Studies paper reported that the children of owners achieved math scores up to 9 percent higher than the children of renters, reading scores up to 7 percent higher and reductions in behavioral problems of up to 3 percent.
Part of the reason for the improved scores may be the fact that homeownership provides stability. Homeowners typically stay in their home for 12 years whereas renters stay no more than three years, according to the U.S. Census American Housing Surveys.
Although not mentioned in Herbert's speech, other public priorities can also be served by homeownership. Studies show that crime rates are lower in owner communities, and homeowners are 28 percent more likely to improve their home and 10 percent more likely to participate in solving local problems.
Home ownership also serves as a forced savings plan, helping individuals and couples so they don't have to worry about paying rent when they retire. A 2004 study by Harvard's Joint Center for Housing Studies found that the net wealth of homeowners was substantially higher than that of renters with comparable incomes. In certain income categories, homeowners had a median net wealth 81 times greater than that of renters. Even with the recent drop in home values, 83 percent of Americans are confident that purchasing a home is a good financial decision, according to the recent NAR study.
Because of its many benefits, homeownership is an investment in our future. It provides shelter and security, fosters involvement in community, and provides economic and social benefits. I am thankful for our new governor for his commitment to supporting the economy and ultimately homeownership.
Last week in the "presidents message" I talked about the new rules for Utah lenders.
Utah lenders were my focus. For obvious reasons.
These regulations however are national and meant to be consistent across the country.
In other words the new Federal standards outlined determine that the information that mortgage lenders are required to provide a home buyer in Salt Lake City Utah should be no different than the documents required to process a loan in Grantsville, KY.
Many Utah lenders I have talked to have suggested that the new guidelines (rules actually) will delay closings and make it impossible to close a loan in less than 30 days.
Others say they have been conforming to most of what is now required already so closings should remain the same in terms of days needed.
A great article appeared on active Rain posted by Jeff Belonger the FHA Mortgage expert from Cherry Hill N.J. You can read Jeffs take on the Mortgage Improvement Disclosure Act @ MIDA.
Here's some of what I had to say.
With the implementation of new Federal Reserve regulations, home buyers now have a set of new protections and disclosures when they shop for a home loan. The rules, which took effect July 30, are designed to help consumers better determine whether a particular borrowing transaction is right for them.
The disclosures are part of Regulation Z, the consumer protection provision of the Truth in Lending Act. They include a number of time frames designed to give consumers the chance to review loan and other related documents. While the new measures are meant to provide more protection to consumers, home buyers should also know that the new requirements could potentially delay their scheduled closing dates.
Today I'll review the new requirements so you'll know what disclosures you should receive when applying for a home mortgage as well as the time frames you should expect in the mortgage application and home-buying process.To read the entire article
The bottom line here is that you need to know your lender, or get a recommendation from your trusted Realtor of someone that they have used before and know will get you the things you need when you need them. And what they now are supposed to get you by law.
If you don't have a Utah Realtor, let us apply for the job.
You can find out how we feel about this business by going to our website www.tooelehomesforsale.com and checking us out.
Or give us a call @ 435-840-5029 we'll be happy to give you the names of a few lenders we have confidence in.
Lenders that won't let the new rules hold up those closings more than they need to.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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