2012 Promises To Be A Better Year Than 2011 ......... #2

Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

Yesterday I wrote a blog titles 2012 Promises To Be A Better Year Than 2011.  Today I would like to do a follow up blog on why I feel that  2012 Promises To Be A Better Year Than 2011 to elaborate just a little more on what I wrote yesterday,  and on what potential new homeowners need to start doing to prepare themselves to purchase a home in 2012.

One new incentive for purchasing a home in 2012, is how quickly rents have been rising.  Rents are quickly reaching the point of what a mortgage payment with taxes and insurance would be for a similar or even larger living space.  This should get renters who are in the position to purchase, to do so sooner than later.  This means that renters who are in the position to purchase, or who are close to being in a position to purchase, need to make sure that there are no surprises when they decide to buy. 

Renters who are planning to purchase in 2012, need to make sure that there isn’t anything on their credit that you prevent them from purchasing a home when the time comes.   They need to contact a Mortgage Professional right now to look at their credit, and help them correct or dispute anything that is inaccurate on their credit report.  Even if there isn’t anything that is incorrect on their credit report, the Mortgage Professional can make suggestions of possible things that they can do to raise their credit score and put them in a better position to qualify for a loan.

A group of possible Buyers that could benefit from early contact with a Mortgage Professionals are self-employed individuals.  Self-employed Buyers need to look closely at their last two years tax returns to make sure that they have not taken to many deductions, and later find themselves with insufficient income to purchase the home that they want.  Right now would be the perfect time for self-employed Buyers to talk to a Mortgage Professional before they do their income tax for 2011.  Buy knowing what income they need to show to purchase a home in the price range that they want to be in, they can make the necessary adjustments and avoid problems later.

I hope that these last two blogs have provided enough reasons to those reading them as to why I feel that 2012 Promises To Be A Better Year Than 2011, and motivates those of us in the Real Estate Industry to prepare our clients to take advantage of the market conditions that lie ahead.


Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308  gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.


Posted by



 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net


Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Lenn Harley 01/03/2012 11:02 PM
  2. Emily Medvec 01/04/2012 01:12 AM
Real Estate Market Trends
1st Time Buyers
Market Reports
ActiveRain Contests
rents on the rise

Spam prevention
Show All Comments
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

George typically when the cost of rent exceeds home ownership there is a turn for the better in the market.....lets hope!

Jan 03, 2012 11:58 PM #10
Emily Medvec
Realty One of Santa Fe - Santa Fe, NM
Realtor | Serving Santa Fe & Northern NM

George, you are right on the money with this post. Investors know the value of income property in our Santa Fe NM market. Hopefully, more people who are qualified to buy a home will move forward to take advantage of the opportunities for homeownership given current prices and interest rates.

Jan 04, 2012 12:24 AM #11
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

George, now would be the time to get up to speed on doing Buy vs. Rent analyzes for potential clients. Many people probably don't realize they can purchase a home for the price of rent.

Jan 04, 2012 12:26 AM #12
Valerie Osterhoudt
Johnson Real Estate, Inc. - Cromwell, CT
ABR, Cromwell, CT Real Estate ~ 860.883.8889

George.. You are right, rents are going up in price.  However, I'm finding this is the best choice for most people (unfortunately) because of the banks being so tight on releasing funds.  I've had GOOD people making good money, not qualify for a loan.

Hey, but presidental election years have always been good in real estate.  Let's hope this holds up for this year too.

Jan 04, 2012 12:41 AM #13
Ann Hayden
Berkshire Hathaway HomeServices Select Properties-St. Louis Missouri - Chesterfield, MO


The renters need to move before the rates and prices go up!

Ann Hayden in Wildwood, MO

Jan 04, 2012 01:19 AM #14
Mike Cooper
Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Sales Pro

Excellent, George.  Dropped by after reading Lenn's re-blog.  You are so right on this.  I hope higher rents encourage folks to consider buying while rates are low. 

Jan 04, 2012 01:22 AM #15
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

George, rents are on the rise and yet so many people with bad credit are still having a hard time to get a rental. Working on the credit issues that they can are important. I am hoping for a very positive 2012, Election years are not good for incumbents when the economy sputters.

Jan 04, 2012 02:11 AM #16
Brian Parke
Agent's Marketing Guide - Dickinson, TX

Rental Value is a natural bottem support  for the housing market, the question recently has been, to rent or to buy?  If now it costs me more to rent, then buying makes more sense.  Hopefully you are correct and this rental support creates the market bottem.



---Brian Parke

Download / View our Free 30 Page Online Marketing Guide


Jan 04, 2012 02:16 AM #17
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Since government and bank policies continue to create more foreclosures, the values will continue to drop. Renters who can qualify to buy will get better deals. There may be more transactions, but not necessarily a rebound of prices.

Jan 04, 2012 02:45 AM #18
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

I see 2012 being better for the real estate and mortgage business than 2011, on many fronts. Great post, thank you for sharing it with us.

Jan 04, 2012 03:11 AM #19
Paul McFadden
Paratex - Seattle, WA
Pest Control, Seattle, WA.

George: I think you're right and wish you the very best this year!

Jan 04, 2012 04:12 AM #20
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

George:  The whole feel of things seems to have shifted some during the last month or so ... and for that I'm SO glad.  The mood for 2012 seems more upbeat ... and I'm hoping that it gains steam throughout the year.  We in our industry sure need the good news and the opportunities that come along with it  ...

Have a very Happy New Year ... and prosperous 2012!


Jan 04, 2012 07:13 AM #21
Debbie Walsh
Shahar Management - Middletown, NY
Hudson Valley NY Real Estate 845.283-3036

George congrats on the feature - well said!  Too many times that blip on the credit has ruined a purchase!

Jan 04, 2012 08:32 AM #22
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA


Your post is right on the money.  Rents are so much higher than they have been a 4 years, they are driving renters to buying.  Good for our market.


Jan 04, 2012 09:28 AM #23
Bob Caldwell
Fitzgerald Financial, a Division of Monarch Bank - Annapolis, MD
VA Mortgage Specialist and Military Relocation Services

It looks like we will hit the bottom of the housing crisis in most areas and hopefully with it unemployment levels.  We will probably begin to see sustained growth by the end of next year, but it will obviously take up to a decade or more to see full recovery, and I expect it will be especially slow in the coming years.

Jan 04, 2012 09:41 AM #24
Barbara Altieri
RealtyQuest/Kinard Realty Group, Fairfield and New Haven County CT Real Estate - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

George -- It's so important for anyone considering a home purchase to take a good look at their credit report.  Getting that score up can save the buyer big $$$ by qualifying for a lower interest rate.

Jan 04, 2012 10:00 AM #25
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

George, normally this would be a good indicator but in this market, I think they rental prices are being driven up by people who can't buy, ie the people who've lost their homes over the last few years. But for the renters who Can buy, it's an amazing time to do so!

Jan 04, 2012 10:09 AM #26
Peggy Chirico
Prudential CT Realty - Manchester, CT
REALTOR® 860-748-8900, Hartford & Tolland County Real Estate

Hi George - I agree with both of your posts!  I think 2012 will be a better year for many!  I also think that self-employed people would be wise to contact you early in the process!  Sounds like a great niche!

Jan 04, 2012 11:18 AM #27
Brenda Mullen
RE/MAX Access - Schertz, TX
Your San Antonio TX Real Estate Agent!!

This is great advice for those self employed folks looking to buy a home.  It's sad that when a self employed person does their taxes and claims deductions that if they claim too much of a loss, they can't afford a home.  It's like darned if you do, darned if you don't kind of thing.  Visitng a mortgage professional before filing taxes is excellent advice...I know I said that already :)!

Jan 04, 2012 01:55 PM #28
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Right now it is a great deal cheaper to buy than to rent..but many people are still bound and determined to rent because renting is "cool." Its become as much of a fad as flipping properties was in the last decade.  And now it is a very costly fad.  Like all fads, it will end because it is now unsustainable. 

Jan 04, 2012 03:56 PM #29
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


George Souto

Your Connecticut Mortgage Expert
Call Me With All Mortgage Questions
Spam prevention