mortgage: 2012 Housing and Mortgage Predictions...and Tug Of War
- 01/24/12 06:49 AM
A business associate of mine, Robert E. Toffel from USA National Title, shared his article with me concerning the usual beginning-of-the-year predictions that are surfacing in the real estate world. If there's anything to be learned here it's 1) improvement has been predicted, 2) decline has been predicted and 3) since both improvement and decline have been predicted, it's best to make educated decisions to take care of your own real estate needs. You can find opinions to back any side of the equation, so focus on your needs and the best way to handle them. That being said, here is … (0 comments)
mortgage: Down Payments - More Important Than Ever Heading into 2012
- 12/30/11 02:12 AM
Especially in today's economic climate, the amount of your downpayment has never been more important. There are many aspects of the real estate transaction process which can be major roadblocks if you're not prepared. The most challenging part of buying a home can be coming up with an acceptable down payment, unless you have equity built up in your current home. The amount of your down payment really determines how much home you can afford and how much you can be pre-approved to borrow. Down payment money can come from: 1) Equity in your current home 2) Other asset equity 3) … (2 comments)
mortgage: Death, Taxes and Loan (Dis)Approval
- 08/15/11 04:14 AM
There are 3 things that are certain in this life: death, taxes and the fact that there are more and more "surprises" as you get closer to the closing table in buying a house. A good friend of mine has a relative who just sold their house...and the closing was delayed because the buyers' were here on student visas. And they had expired months before. Delays can happen, and there are factors that you're not in control of in the real estate process. Make sure you have your own factors in order so as to avoid your own enexpected "surprises." … (1 comments)
mortgage: Mortgage Relief for the Unemployed - New and Actually Improved
- 08/04/11 05:29 AM
As of August 1st, HUD is putting into action a revamped version of last year's Home Affordable Unemployment Program. In that program, unemployed homeowners could get a three-month forbearance on their mortgage payments while they looked for a job. Unfortunately, the program was not a resounding success. Only 10,000 of the 13 million unemployed in the country qualified for the aid, which was a three month forbearance...not much when you consider that nearly half of those who are unemployed have been unemployed for at least 6 months. The new and improved version of the program significantly increases the three months to … (0 comments)
mortgage: FMAC, FNMA, QRM...OMG!
- 07/24/11 09:32 AM
In my recent newsletter, I wrote about the proposed shoring up of FMAC and FNMA (Freddie Mac and Fannie Mae) by politicians in Washington. These are basicaly the two agencies that insure home loans. This “shoring up” process will start this coming September 30thwith a measure that will result in borrowers being required to pay increased interest rates for loans over $625k. The issue that's getting the most attention in the news, though, is the Qualified Residential Mortgage (QRM) proposal that will require a 20% minimum down payment on ALL real estate purchases. Of course, there will be exceptions, but they're … (3 comments)
mortgage: Getting A Loan Is Like Having A Baby!
- 07/01/11 06:27 PM
Don’t know about you but this last few months has been a challenge for my buyers when it comes to the loan process. They understand the need to get a pre-approval letter and most are very pro-active about getting quotes and comparisons, etc. The pre-approval helps us get the offer accepted and escrow opened. The buyers are happy to provide job info, bank statements, and credit history – all the “usual” paperwork that we’ve all come to expect.
Of course, they are extremely excited when the loan rep calls and says, “your loan is approved” and expect they’ll be in their new … (5 comments)
mortgage: When Is The Best Time To Sell At A Loss
- 06/27/11 12:30 AM
While I truly wish no one ever had to ask this question, some of you are wrestling with it right now. Homes are staying on the market longer than in years past and many sellers are having to come down on their price more than once to get the deal done. Other sellers are standing pat on their price, hoping that the market will rebound enough for them to turn a small profit or at least break even. The problem is (as shown on the chart I posted a few weeks back) that prices still have not bottomed out in … (6 comments)
As crazy as it may sound, deposits are causing some problems with loan approval in this time of more stringent guidelines for mortgage loans. Whether it's here in the Beach Areas or anywhere else, the story's the same... Having the funds in your bank account isn't enough anymore. In fact, having the funds for closing in your bank account isn't enough any more. In fact, sometimes having reserve funds in your bank account isn't even enough any more. It's true. Lenders are scrutinizing bank statements like never before...especially any deposits outside of your normal paycheck deposits. There is a … (2 comments)
mortgage: Mortgages At Lowest Point - Be Prepared
- 06/03/11 04:31 AM
According to Freddie Mac, fixed-rate mortgages are at their lowest point of the year. For the fifth consecutive week, mortgage rates declined with borrowers paying approximately 0.7% of the loan amount up front (lender fees) to get these rates: 15-Year Fixed Rate Mortgage: 3.80% 30-Year Fixed Rate Mortgage: 4.61% Keeping in mind that this comes in the midst of mixed data economy-wise and housing-wise, the important thing to remember is the old Boy Scout motto of "Be Prepared" if you're on the market to buy. The rates are certainly great, but they don't mean anything if you haven't done your homework … (2 comments)
mortgage: May...Or May Not
- 05/31/11 02:59 AM
There's a great article on the KCM (Keeping Current Matters) blog that touches on some good reasons to consider selling your house rather than waiting, if a move is indeed in your future. There are some really good points made and here are some of the highlights... Springtime, especially May, is when most buyers enter the real estate market. This greatly increases exposure and the chance of getting quality offers, just by sheer volume. Foreclosures and short sales are increasing in total. While the influx of new foreclosures and short sales may be going down, there is a large … (0 comments)
mortgage: How Is Your Mental Accounting?
- 04/18/11 01:38 AM
The foreclosure situation of the past few years has some people taking inventory of how they're handling their finances like never before. Have you thought about how you spend your money? Have you thought about how you spend some money as opposed to how you spend othermoney? I saw a great article by Tara-Nicholle Nelson that makes some great points about how we spend our money and how that has contributed greatly to today's economy. A mindset was created where people thought they had money when they didn't...and borrowed against it. It's what Nelson calls "mental accounting," which is how we each intuitively look … (3 comments)
mortgage: Buyers: Like It Or Not, Waiting Is A Risk
- 04/08/11 06:36 AM
Are you looking to buy a home? Are you looking to refinance your existing mortgage? Agents seem to always be saying "It's a great time to buy!" or "It's a great time to sell!" no matter what the market is like. While it's important for us all to maintain a positive mindset in the face of adversity, it's just as important to know the facts about the Beach Areas real estate market so as to deal with it realistically. The waiting game is interesting because for a while there are people who wait and wind up benefiting from it. Other people … (1 comments)
mortgage: Annie Says: Waiting Only Leads To Fear...And High Blood Pressure
- 03/16/11 04:27 AM
I saw an article a couple of days ago on CNNMoney.com that really made me bristle. It concerned the reports and predictions of an industry bubble-spotter and said, among other things: Home prices are near their post-bust lows. The government reported that January saw a double-digit dip new home sales Robert Shiller, co-founder of the S&P/Case-Shiller home price indexes, said “There's a substantial risk of home prices falling another 15%, 20% or 25%.” Home sales dipped in January, home-prices are near post-bust lows and could go down another 25% and the solution the article's author comes up with is... Wait. Just … (0 comments)
A business associate of mine, Robert E. Toffel from USA National Title, shared his article with me concerning the usual beginning-of-the-year predictions that are surfacing in the real estate world.
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