Archive for the 'Buyers' Category
Housing Market to Improve in 2012
January 31st, 2012 categories: Buyers, Money and Mortgages
Housing Market to Improve in 2012 as Banks Loosen Credit Standards.
Capital Economics expects housing to improve this year, according to a report released last Tuesday. One of the reasons: loosening credit. The analytics firm notes the average credit score required to get a mortgage loan is 700. While this is higher thans scores required before the crisis, it is the same with requirements one year ago.
Additionally, a Fed Senior Loan Officer Survey found credit requirments in the 4th quarter were consistent witht he past 3 quarters. However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.
Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.
Banks are also loosening loan-to-value ratios (LTV), which Capital Economics indicates “the clearest sign yet of an improvement in mortgage credit conditions.” In contrast to a low of 74% reached in mid-2010, banks are now lending at 82% LTV.
While conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November, 8% of contract cancellations were the result of a potential buyer not qualifying for a loan.
Additionally, Capital Economics says, “any improvement in credit conditions won’t be significant enough to generation actual house price gains.” and potential ramifications from the euro-zone pose a threat to future credit availability.
So if you or anyone you know is on the fence about buying a home, I urge you to get back in the game now, before loan standards tighten up again. Feel free to call or email me for a free consultation. If you like this and other articles, please like Kathy Villa Real Estate. We look forward to connecting with you!
Article Source: DSnews.com
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Having New Mortgage in 2012 Benefits Potential and Current Homeowners
January 26th, 2012 categories: Buyers, Money and Mortgages
There are some good reasons to get a new mortgage in 2012! Besides continued low mortgage rates expected throughout the new year, Bankrate.com lists the following reasons:
- Some potential homebuyers may be discouraged by recent reports of a damaged housing market. However, a lack of applications and activity does not mean buying a home is a bad idea, says the news report, as shrunken house prices and low mortgage rates will continue to provide buyers high affordability.
- Some benefits of owning a home include not having to pay rent to a landlord while making a personal investment. Homeowners also receive federal income tax deductions, which makes a difference over time.
- Current homeowners may decide to refinance to get a better rate, says the report. Homeowners may also benefit from locking in low rates by changing to a fixed interest rate versus an adjustable rate that is subject to change within the market. Be aware that homeowner’s equity and a decent credit score are required for refinancing.
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Six Must-Haves for Mortgage Approval
January 19th, 2012 categories: Buyers, Money and Mortgages
Interest rates are at historical lows! Low interest rates increase affordability, making it easier for buyers to qualify. Yet stories of buyers waiting months to get loan approval, and home purchase transactions not closing on time due to lender’s strict underwriting, are all too common.
Some buyers are turned down for illogical reasons. For example, if you have investments- even if they’re performing well, an underwriter might deny the mortgage because your portfolio doesn’t fall into the underwriter’s risk assessment model.
One couple was turned down because the husband had worked at his current job for less than a year. Even though he was making more money at the new job than he was before! These buyers were well-qualified. The wife worked several years for one employer and was able to qualify for the loan on her own. So the transaction closed, although two months late.
Generally, it’s more difficult to qualify now than it was a year ago. Most conventional lenders require a 20-25 percent down payment. For the lowest interest rates, your credit scores need to be in the 700 range. You need to have verifiable income and cash reserves in addition to your down payment and closing costs.
You could run into underwriting problems if you’re self-employed, as W-2 income is much easier to verify. Other hurdles are lapses in employment and owning a lot of property. Some lenders won’t lend to buyers who have more than three or four residential properties.
If you’re buying a new home before selling your current home, you’ll need to have 30 percent equity in your current home. This needs to be verified by the lender’s appraiser. Also, the lender will want to see a copy of the cashed check from the tenant for the first month’s rent to verify rental income if needed to qualify.
HOME BUYING TIP: As soon as you’re serious about buying a home, find the best mortgage broker or loan agent that can assist you. Don’t make your selection based on interest rates alone. A good track record counts for a lot. I can refer you a great mortgage broker if you need. -Just ask!
Closing the deal should be your primary goal. If you have to pay 0.25 percent more to assure your transaction closes on time and that you’re not turned down at the last minute, it’s worth it.
Be honest with your loan professional about anything in your financial picture that might impact loan qualification. A good loan agent or broker will be able to assess your financial situation and anticipate what you’ll need to do to satisfy the underwriter.
Be aware that appraisal issues can impact your loan approval. For example, if a previous owner added square footage without a building permit, the additional square footage probably won’t be included as livable square feet.
If the appraisal comes in for less than the purchase price, the lender might not lend you enough to close the deal. Include an appraisal contingency in your contract.
There are more jumbo financing options available now. Adjustable-rate mortgages that are fixed for 10 years and then revert to an adjustable have a starting rate about 0.25% less than a 30-year fixed jumbo. A five-year fixed starts about 0.5% to 0.75% lower, but is riskier.
Bottom line: Because of the risk factor, the lender may want you to have a large cash reserve. Your retirement accounts counts toward this.
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1371 Tower Grove Drive
November 10th, 2011 categories: Buyers, New Listings
Gorgeous, gated contemporary is light and bright with open floor plan. Stunning master bedroom, three luxurious suites including maids quarters and jetliner views from every room! High end Chef’s kitchen with top-of-the-line stainless steel appliances, Entertainer’s dining room and expansive deck that resembles a private oasis. Truly a rare find! Co-listed with John Williams
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Ocean Avenue, Breathtaking Views in Santa Monica
October 5th, 2011 categories: Buyers, New Listings
1007 Ocean Ave., Unit PH1 in Santa Monica just listed!
Sensational furnished 2-bedroom penthouse, 2.5 bath ocean front condo. Totally remodeled, very sleek and hip, wonderful large gourmet kitchen with family room area. Security building, gym, and pool. Fabulous Santa Monica location. Feel free to call or email us for a showing! Co-listed with Valerie Fitzgerald
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Down Payment – Bigger is Better
September 6th, 2011 categories: Buyers, Money and Mortgages
A larger down payment can lead to a quicker mortgage loan approval and better rates.
With tightened lending standards, a larger down payment has become more important. In addition to faster loan approval at better rates, putting more down means you could qualify for a larger home equity loan or line of credit. But a home buyer should be careful not to deplete their savings in an effort to make a larger down payment. There needs to be enough savings left to cover financial emergencies.
If you’re finding it tough to save enough for a down payment, you have some options: Set up an automatic savings program or sell things you aren’t using like a boat, motorcycle or extra car. Selling collectibles and other assets you don’t want or need can raise some quick cash; other assets such as stocks or savings bonds are good too. Also, be sure to check with your real estate agent and state government for any down payment programs they may have available.
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Five Reasons to Buy a Home Now
August 16th, 2011 categories: Buyers, Money and Mortgages
Here are 5 great reasons why it makes sense to buy a home now instead of renting:
- You’re steadily building equity as you make house payments. Unlike renting, you will own the property outright if you stay over the long term.
- Interest paid on your mortgage as well as property taxes you pay are deductible from annual income taxes.
- Ownership gives you more control. If you want to start a garden or remodel, it’s your decision. If you’re renting, you have to get approval of your landlord before making changes. While rent payments are subject to increases, your monthly payments remain constant if you have a fixed rate mortgage.
- Buying a home gives you a sense of pride in where you live and allows you to establish roots more easily than renting.
- Low interest rates, motivated sellers, and an ample supply of homes on the market make NOW a great time to buy a home!
If you or anyone you know is in the market to buy or sell their home now, feel free to call or email me for a free consultation. We look forward to serving your real estate needs!
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Best Priced Unit at The Wilshire
August 5th, 2011 categories: Buyers
Amazing Opportunity! The best priced unit at the Wilshire is:
10580 Wilshire Blvd., Unit 4NE~ Asking $1,095,000.
Take advantage of this spacious 2 bedroom, 2.5 bath Northeast corner unit on the 4th floor. Living room is cozy with fireplace and great Cosmopolitan views. Light and bright kitchen is sun-drenched with great functionality. This famous building has the top Amenities on Wilshire 24/7. Visit www.10580wilshire4ne.com for virtual photo tour.
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Packing Tips for Moving
May 22nd, 2011 categories: Buyers, Sellers
Tips to make sure your valuables come out of their boxes in good shape.
- Use the right size boxes. Put heavy items like books in small boxes; light items like linens and pillows in bigger ones. (Large boxes packed with heavy items are a common complaint of professional movers. They not only make the job harder but also have a better chance of breaking.
- Put heavier items on the bottoms of boxes and lighter items on top. And if you’re loading the truck yourself, pack heavier boxes first, toward the front of the truck for balance.
- Don’t leave empty spaces in the boxes. Fill in gaps with clothing, towels or packing paper. Movers are hesitant to handle boxes that feel loosely packed or unbalanced.
- Avoid mixing items from different rooms in the same box. It will make your packing quicker and your unpacking a lot easier too.
- Label each box with the room it’s destined for and a description of its contents. This will help you and your movers know where every box belongs in your new place. Numbering each box and keeping an inventory list in a small notebook is a good way to keep track of what you’ve packed- and to make sure you still have everything when you unpack.
- Tape boxes well. Use a couple of pieces of tape to close the bottom and top seams, then use one of the mover’s techniques- making a couple of wraps all the way around the box’s top and bottom edges where pressure is concentrated.
If you like these and other tips provided by Kathy Villa, make sure to like us on Facebook. We look forward to connecting with you!
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Open House June 12th from 2-5, Westwood CA
May 14th, 2011 categories: Buyers
10716 Rochester Ave. Los Angeles, CA will be open this Sunday 2-5 with great new Price= $1,695,000. Come see this beautiful Spanish 5 bedroom, 4.5 bath, 2-story home with original fireplace in living room & separate dining room w/hardwood floors. Kitchen with center island, granite counter-tops & breakfast bar flows into light & bright den. French doors off den open to patio & private grassy yard with palm trees. Spacious Master bedroom with attached office is upstairs along with 3 additional beds & baths. 5th Bedroom is large with its own bath and direct access to backyard. Wood-beamed ceilings & arched entryways throughout give this perfect family home wonderful character! Co-listed with Alison Kaplan. See you there!
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