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Waiting To Buy Might Cost More In Future!

Posted by: colin | Comments (0)

Wednesday, January 4th, 2012

Waiting Might Cost MORE!

The housing market has been in a downward trend for four years. There is some speculation that inventories will not reduce any time soon which will be necessary for prices to rise. However, there are other factors that can increase the cost of housing, specifically mortgages. FHA accounts for a large percentage of the current housing loans and is expected to be even more prominent when the Qualified Residential Mortgage Guidelines go into effect next year.

Rising rates are almost certain, due to looming inflation fueled by higher gas and food prices and the enormous amount of deficit spending
FHA loan limits have been reduced – they are lower than conventional limits in most markets and FHA has suggested that they might be reduced further.
FHA might increase the down payment to 5% or higher in an effort to have a more secure loan that will have less likelihood of going to foreclosure.
FHA might decrease the amount of seller contributions in a similar move to require the buyer to have a larger investment in the home and therefore be a more “qualified” borrower.
Congress may decide to increase the up-front MIP to build up the FHA reserves. The annual MIP has been adjusted twice since October 2010 when the Up-Front MIP was actually reduced.
Due to tougher conventional requirements, demand for FHA loans could exceed maximum annual insurable limits. If Congress is having a hard time raising the limit on national debt, they might not even consider raising the limits for FHA.

In an effort to solidify the lending industry, qualifying is becoming harder for the buyer and more expensive at the same time. Many of the rules changes could go into effect next year. In addition, market factors could easily play a role in increasing buyer’s costs. Waiting will very probably require a larger up-front investment for buyers in the future.

Categories : Buyer Resources, Financing Research

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The “Right Size” Home

Posted by: colin | Comments (0)

Wednesday, January 4th, 2012

The “Right Size” Home – 1/3/2012

Work hard, buy a home, start a family and continue to upgrade your home until everyone has enough room. This has been the blueprint for lots of homeowners for the last fifty years but there is certainly a shift in thinking that could change all of that.

Interestingly, Americans live in much larger homes than most people in other countries throughout the world. The U.S. Census reported in 2006 that the average single family home completed had 2,469 square feet which was 769 feet more than in 1976.

Once the children are grown and have moved out, homeowners are finding they have too much room. Even if their home is paid for, they have higher property taxes, insurance, utilities and maintenance on the larger home than they’d have if they were living in the “right size” home.

Some homeowners state thaty they’re keeping their larger home because it has luxury features that smaller homes don’t have. There’s a movement that seems to have started in the United States to find the “right size” home with the amenities and convenience that homeowners want.

This philosophy has been expressed by Sarah Susanka in her book Creating the Not So Big House. It proposes a house that “values quality over quantity with an emphasis on comfort and beauty, a high level of detail, and a floor plan designed for today’s informal lifestyle.”

Categories : Buyer Resources, General, Seller Resources

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Home Warranty

Posted by: colin | Comments (0)

Tuesday, June 22nd, 2010

When you are looking to purchase a Washington home, you will want to purchase a home warranty. But what is a home warranty? A home warranty covers the cost to repair or replace the major appliances and/or operating systems in a home. A home warranty is especially important when purchasing a home that isn’t new construction, since you are inheriting those problems both seen and unseen from the previous owner.

Over time, it is inevitable that a house will need repairs of some sort, including small and large repairs. What would you do if a major system, such as your air conditioning, went out? The cost to repair the system could be devastating. That’s where the home warranty comes in. For anywhere from $250 to around $600, a home warranty gives the homeowner a level of protection against costs of major repairs or replacement for the plumbing, electrical and heating systems. For an additional cost, you can also have the roof, pools and other systems covered as well. The typical cost per service visit will only be $25-$75 instead of having to shell out hundreds to thousands of dollars from your own pocket.

Equally as important as knowing what is covered by your home warranty is knowing what isn’t covered by it. Improperly installed, mismatched and poorly maintained equipment are considered pre-existing conditions and are not covered. An “act of God” is not covered by the typical home warranty. This includes lightening, storm damage, hurricanes, earthquakes, etc. But, graffiti and pet damage are also covered under the “act of God” category for many warranty companies. Also, any damage that occurs outside the perimeter of the housing structure itself is not covered. For example, if you have a plumbing leak in your yard, it may not be covered by your home warranty. The best course of action to take when you find that you need a major repair done on your home is to contact the home warranty company to make sure it is covered before you call the repair company. You will want to know whether or not you will be reimbursed for the expense.

As with any legal, binding contract, you should read over your home warranty completely and thoroughly before signing. If you have questions, ask your home warranty agent so that you know what is covered and what isn’t. Since prices vary from company to company, you will want to shop around before settling on a particular home warranty company. As always, if you have any questions or need any help with your housing needs, please contact me.

Categories : Buyer Resources, General, Investors, Uncategorized

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Tax Credit Deadline Extended?

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Friday, June 18th, 2010

The first time homebuyer tax credit deadline has been extended, sort of. While the deadline to get a home under contract has officially ended as of April 30, 2010, the House needs to approve an amendent for the original deadline for those contracts to get through escrow has been extended from June 30, 2010 to September 30, 2010. This is also true for repeat home buyers that had their homes under contract but not through escrow by April 30th. Because there was such a rush to get homes under contract by the end of April, a backlog of loans was created, leaving approximately 180,000 loans that may not have been able to be completed in time to take advantage of the tax credit for many first time and repeat homebuyers. For that reason, HR 4213 was sent through the Senate Committee in March and was passed yesterday. However, it still needs to be approved by the House.

If you are a homebuyer that did not have your house under a signed, binding contract by April 30, 2010, you will not be able to take advantage of the $8000 first time homebuyer tax or $6500 repeat homebuyer tax incentives. However, if you did have a signed, binding contract on a home purchase by the end of business on April 30, 2010 and were worried that the June 30th deadline was going to come before your escrow closed, you may not have to worry anymore. The three extra months that the government is proposing to extend the tax credit deadline should be enough time to get your home sale completed and allow you the opportunity to take advantage of the tax incentives offered.

This doesn’t mean that homebuyers who missed out on the tax incentives should just give up their dreams, though. There are still plenty of homes available now at reasonable prices. And with interest rates continuing to hover around 5%, it’s still a fantastic time to buy your first home, your vacation home or your retirement home. Just contact me and I’ll be happy to help you.

Categories : Buyer Resources, General, Uncategorized

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Useful Homebuyer Tips

Posted by: colin | Comments (0)

Friday, June 4th, 2010

If you are hoping to purchase a home, you may want to follow these useful homebuyer tips before you start looking.

Check your credit report and fix any errors that it might contain. You can obtain a free credit report online at AnnualCreditReport.com. There will be a fee to get your credit score, but they will give you a free credit report for all three of the credit reporting agencies: EquiFax, TransUnion and Experian. Typically, you will need a credit score above 700 to get a good interest rates. So, you will need to make sure that your credit report is accurate before you apply for a loan.
Get pre-approved for a mortgage loan. Being pre-qualified only lets you know the amount you MIGHT be able to borrow from a mortgage company. Having a loan already on hand when you find that perfect home will give you more room for negotiation with the seller and make the home buying process just that much easier.
Do your homework. Compare the list price of the home you are interested in with others of comparable amenities and size in the neighborhood. You can do this by going to online sources such as Zillow and Trulia. But, for the most up-to-date information, you should consult with your Realtor®. Online sources can be a few months out of date.
Always get a home inspection. Even newly constructed homes can have serious problems that you may not be able to see without a trained professional eye.

These are just a few of the important steps you should take when considering a home purchase of your own. They can make a big difference in determining whether your American dream turns into a real nightmare. If you should need any help, feel free to contact me. That’s what I’m here for!

Categories : Buyer Resources, General, Investors, Uncategorized

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