Jim & Ruth Vogt LMB100022952/NMLSR #2575 FHA VA Conventional Home Loans Colorado 's Blog

Is now the time to invest in real estate in Colorado?

Tue, 15 Mar 2011 10:26:02 -0700

Is now the time to invest in real estate in Colorado?

If you have been asking yourself, "Is now the time to invest in real estate", you will want to read this information!

Buyers are looking for a guarantee they are buying at the best possible price, not necessarily buying at the best possible time or the best possible cost. Let me explain what I mean.

To answer that question, is now the time to invest in real estate? you have to recognize the cost of real estate, the home, is a combination of the sales price plus the mortgage interest rate you will be paying on the loan. A couple of specific reports of interest to our industry were published the other day which will help me make my point.

Home sales prices:
The National Association of Realtors (NAR) released their 4th quarter housing analysis survey. Within the report, they revealed that residential home sales increased 15.4% within the fourth quarter during the 3rd quarter. In addition they indicated that selling prices continued to be stable during the year:

The nation's median existing single-family selling price was $170,600 during the 4th quarter, up 0.2 % from $170,300 during the 4th quarter of 2009.

Any new buyer that delayed an investment could find comfort from the simple fact that selling prices haven't elevated. On the other hand, another report released that gives quite another perspective on the question of "Is now the time to invest in real estate?"

Home Mortgage Rates:
The Primary Mortgage Market Survey was in fact released by Freddie Mac pointing out that the 30 yr fixed interest rate home loan had been at 5.05%. Frank Nothaft, vice president and chief economist of Freddie Mac stated:

"Long-term bond yields jumped on positive economic data reports, which placed upward pressure on mortgage rates this week...As a result, interest rates on a 30-year fixed-rate mortgage rose to the highest level since the last week in April 2010."

Therefore home prices have remained stable but mortgage rates have increased significantly during the last 3 months. What does that mean for a buyer thinking about purchasing their home this year?

The home price is the same. It simply costs more. Keep that in mind when looking for an answer to your question: Is now the time to invest in real estate?

But here's what you really need to understand: all lenders qualify on the cost of the home, not the sales price of the home. Meaning we base your maximum qualification based on your proposed monthly payment, not off the sales price. So continuing to delay might mean you have to settle for a smaller home tomorrow vs the larger home today!!

So, is now the time to invest in real estate? What does that mean?

Regardless of whether selling prices drop 10% this year, the cost of your home increases in the event that mortgage rates increase more than 1%. Buyers really should not be concerned where prices are. Rather, you must be concerned about what the overall costs might be later in the year.

If you don't currently own a home, it is the time to invest in real estate.

If you do currrently own a home, it is the time to invest in more real estate!

Call us today and see if you qualify to start creating your real estate investment portfolio. The timing couldn't be better, as interest rates dipped down a bit yesterday.

Colorado's Preferred Home Lending Resource

Views and opinions expressed on this site are not necessarily those of WR Starkey Mortgage.

Phone: 720-289-6383

www.Lifetimelender.com

Info@lifetimelender.com

Jim Vogt

LMB100022952

NMLSR# 257588

Ruth Vogt

LMB100023827

NMLSR# 257576

Home buying tips for Castle Rock Colorado

Mon, 14 Mar 2011 01:35:02 -0700

Home buying tips for Castle Rock Colorado

Below are 5 home buying tips when the time is right to start the home buying process in Castle Rock Colorado.

Home buying tips (1) Find A Real Estate Professional

You may want to use a real estate broker/agent to help you with your search. This would be the selling broker/agent. It is very important to find one you are comfortable working with, who will respond to your questions and assist you in securing a property that meets your specifications. If you need some recommendations, please ask me. After all, I'm in the business and can suggest one that specializes in your desired Castle Rock Colorado location. A listing broker lists the home for sale and actively markets the property on behalf of the seller. Occasionally, the listing and selling brokers are the same or are employed by the same agency. As a purchaser, it is necessary to understand the fees for the listing and selling broker/agent are usually paid by the seller.

Home buying tips (2): Get Pre-Qualified for the loan!

You should spend some time to get "pre-qualified" for a mortgage loan BEFORE you start shopping for a home. This means the lender will informally qualify you for a mortgage loan by getting basic information on your income, debts and credit. By getting pre-qualified, you are able to usually estimate how much you can actually borrow for a home. It is strongly recommended that you work with a loan officer who will put your loan into process even before you decide to go under contract in order to be given a preAPPROVAL, which carries a lot more weight with a seller when making an offer on their home than a prequalification would!

Home buying tips (3): Determine Type Of Home And Location

Given your price range, decide what type of home you want/need: size, location, special features ( for instance fireplace or fence), etc. You will also want to consider school districts and other factors that are important to you and your loved ones. What will make your home attractive to potentional buyers when you are ready to sell?

Home buying tips (4): Begin House Hunting

Allow sufficient time to see a variety of houses, so you have a good basis for making a final decision.Finding the right home may take several months. When you find a home you like, carefully give it your own personal inspection. You will probably want to tour the neighborhood and perhaps see the house at different times of day or on weekends to check traffic patterns and other amenities that may possibly affect your decision.

Home buying tips (5): Submit An Offer for purchase to the seller

If you're comfortable with the home, your real estate agent will help you in making an Offer to Purchase, including an "earnest money" deposit. You should make sure the Offer enables you to get your money back if the home inspection reveals issues with the house, appraisal issues, or unexpected mortgage loan conditions that cannot be met.

Below is a link that will give you a list of items needed to bring with you to start the preapproval process:

Home buying tips (Checklist)

For additional Home Buying Tips, click here:

Home buying tips (additional info)