Tuesday, June 12, 2012
Thursday, June 7, 2012
Tuesday, June 5, 2012
Thursday, May 31, 2012
Tuesday, May 29, 2012
Americans’ Perspective on Home Ownership Shifts
Americans’ Perspective on Home Ownership Shifts
Home ownership is getting more emotional than it used to be. A new survey by Coldwell Banker Real Estate finds that Americans are increasingly saying that the real value of home ownership is emotional, not financial. That marks a stark contrast from Americans’ perspectives on home ownership during the housing boom, in which they mostly viewed it as a financial venture.
Home ownership is getting more emotional than it used to be. A new survey by Coldwell Banker Real Estate finds that Americans are increasingly saying that the real value of home ownership is emotional, not financial. That marks a stark contrast from Americans’ perspectives on home ownership during the housing boom, in which they mostly viewed it as a financial venture.
Friday, May 25, 2012
Tuesday, May 22, 2012
What Does It Take to Get a Loan Today? A Lot!
What Does It Take to Get a Loan Today? A Lot!
What Does It Take to Get a Loan Today? A Lot!
One of the biggest obstacles home buyers are facing is qualifying for financing, and a new report by the Federal Reserve shows exactly how big of struggle potential borrowers face.
According to a new Federal Reserve report surveying banks, the report found that most banks say they are a lot less likely to issue a mortgage to borrowers with a FICO credit of 620 and a 10 percent down payment than they were in 2006 during the housing boom.
“A moderate net fraction of banks were less likely to originate loans to borrowers with a FICO score of 680, regardless of down payment size,” the report also said. “A modest net fraction of banks were less likely to originate loans to borrowers with a FICO score of 720 and a 10 percent down payment, although survey respondents indicated that they were about as likely to originate loans now as they were in 2006 if such borrowers had a down payment of 20 percent.”
So while mortgage rates continue to sink to new record lows, many home buyers are finding they can’t always qualify for the low rates.
As a recent New York Times article about the Federal Reserve’s report illustrates: “A borrower with a credit score of 720 can expect a rate of 3.70 percent on a 30-year, $300,000 fixed-rate mortgage ... while someone with a score of 620 to 639 can expect a 5.07 percent rate — or an extra $242 per monthly payment.”
Source: “How to Pump Up Your Credit Score,” The New York Times (May 17, 2012)
Monday, May 21, 2012
Monday, May 14, 2012
Friday, May 11, 2012
Thursday, May 10, 2012
Tuesday, May 8, 2012
Monday, May 7, 2012
Thursday, May 3, 2012
Monday, April 30, 2012
Thursday, April 26, 2012
Tuesday, April 10, 2012
Friday, April 6, 2012
Monday, April 2, 2012
Sunday, April 1, 2012
Take your First Offer Seriously
Are you thinking of selling your home? Remember: “A bird in the hand is worth two in the bush.” That old truism is especially relevant when talking about home-purchase offers in a buyer’s market. The first offer often turns out to be the best one the seller will get.
Consider your first offer seriously and treat it with kid gloves. Here are some solid reasons why:
- An early offer (if you’re lucky!) doesn’t necessarily mean buyers are lining up to follow suit. It could just mean that your home meets the needs or preferences of that one particular buyer who made the offer.
- Your home will get the most interest from buyers just after it goes on the market. After it has been on the market a while, the most-serious buyers will have moved on, leaving you showing to the tire kickers and low ballers while you wait for new serious buyers to enter the market.
- Even if the first offer is thousands lower than your list price, consider carefully whether it might be enough — in terms of price and contract terms — before rejecting it out of hand. After all, the longer your home is on the market, the more it costs you in mortgage payments, taxes, insurance, upkeep and sheer inconvenience. And remember, you may be able to make up the difference when you negotiate the price of the next home you buy.
- If you simply can’t accept the offered price, start negotiations by making a counteroffer, being as flexible with the contract terms as possible. It isn’t uncommon for buyers to offer a price below what they are truly willing to pay, sometimes much below, just to see if they can buy under market. An offer indicates serious interest in your home — don’t take it for granted.
As with any purchase offer, consider the odds of the contract going to closing/settlement. Buyers with pre-approval for a mortgage have demonstrated the financial ability to buy your home; give them extra points as you tally up the pros and cons of their offer.
We’ll be happy to work with you fine-tuning your home’s listing price so it fits our local market. We can also advise you on what would make your home more saleable at low cost to you. Most importantly, we can put our expertise to work for you when it comes time to negotiate with potential buyers. Those are just a few of the services we provide. We hope you’ll take advantage of them!
From John Burgess Group Monthly Newsletter
Thursday, March 29, 2012
Thursday, March 22, 2012
NeighborWorks America Offers Five Tips as New Homebuying Season Begins
Seeking Professional Homeownership Advice in the Beginning Is Critical for Long-Term Success
WASHINGTON, DC, Mar 21, 2012 (MARKETWIRE via COMTEX) — NeighborWorks(R) America, one of the largest community development corporations in the U.S. and a leading provider of homebuyer education and advisory services that helped more than 13,000 people become homeowners in 2011, today released a list of top-five things a potential homebuyer should consider as the 2012 home buying season begins.
“Mortgage rates are near record lows and home prices may be within reach of many consumers who want to buy in today’s market,” said NeighborWorks America Director of Homeownership and Lending Marietta Rodriguez. “But there are more things to consider than low mortgage rates and home prices when your plan is to be a successful long-term homeowner.”
1. Get mortgage ready. When searching for a home, whether you’re a first-time homebuyer or a repeat purchaser, make sure that your credit is as strong as it could be. Looking for a mortgage with weak credit could result in a higher than anticipated mortgage cost. Working with a homeownership advisor from a NeighborWorks HomeOwnership Center or other NeighborWorks organization is a good way to start the homeownership process. A list of NeighborWorks HomeOwnership Centers and NeighborWorks organizations can be found atwww.nw.org/homeownership . Homeownership advice from NeighborWorks is provided free or at very minimal cost, typically less than $50.
2. Cost isn’t just the mortgage payment. A mortgage is just one part of a homeowner’s monthly housing budget. Being aware of utility, maintenance and transportation costs is also important when deciding whether a home is affordable. A NeighborWorks HomeOwnership Center advisor or other NeighborWorks organization staff can help prepare a realistic and sustainable budget that helps to make homeownership successful over the long-run.
3. Not all mortgages are created equal. NeighborWorks organizations helped homebuyers obtain more than $2 billion of home financing in 2011, so they’re expert at helping a consumer obtain a mortgage. Fixed-rate mortgages offer payment certainty, while adjustable rate mortgages frequently provide lower initial monthly payments, which could rise considerably over time. Work with a trained homeownership advisor to help get the right mortgage loan.
4. Get a Realtor who knows the market. Searching for a home over the Internet is one thing, actually going through the process and closing on a home without professional assistance is another.
5. Don’t rush. Buying a home is not a race. Moving too quickly because the “dream home” just came on the market could be the first of many mistakes. Take the time to obtain a home inspection, look over the neighborhood and investigate the school district. As with many of the steps to home buying, work with a homeownership advisor.
Friday, March 16, 2012
Mortgage Rates Follow Bond Yields Higher - Mar 15, 2012
Mortgage Rates Follow Bond Yields Higher - Mar 15, 2012 - Freddie Mac
Mortgage rates are staying low by historical standards, despite inching slightly higher this week following a positive job report and increasing bond yields, Freddie Mac reports in its weekly mortgage market survey.
Mortgage rates are staying low by historical standards, despite inching slightly higher this week following a positive job report and increasing bond yields, Freddie Mac reports in its weekly mortgage market survey.
The following is a closer look at rates for the week ending March 15:
- 30-year fixed-rate mortgages: averaged 3.92 percent, with an average 0.8 point, inching up from last week’s 3.88 percent average (which was only 0.01 percent above an all-time record low). A year ago at this time, 30-year rates averaged 4.76 percent.
- 15-year fixed-rate mortgages: averaged 3.16 percent, with an average 0.8 point, climbing from last week’s record reaching 3.13 percent average. Last year at this time, 15-year rates averaged 3.97 percent.
- 5-year adjustable-rate mortgages: averaged 2.83 percent, with an average 0.8 point, also slightly up from last week’s 2.81 percent average. Last year, 5-year ARMs averaged 3.57 percent at this time of year.
- 1-year ARMs: averaged 2.79 percent, with an average 0.6 point, rising from last week’s 2.73 percent average. Last year, 1-year ARMs averaged 3.17 percent.
Thursday, March 15, 2012
Most Home Owners Unaware of Gov't Aid Programs
Most Home Owners Unaware of Gov't Aid Programs
More than 70 percent of home owners are unaware of government mortgage modification programs to help underwater borrowers, according to a new survey by FreeScore.com, an online credit servicer.
More than 70 percent of home owners are unaware of government mortgage modification programs to help underwater borrowers, according to a new survey by FreeScore.com, an online credit servicer.
Wednesday, March 14, 2012
Tuesday, March 13, 2012
Monday, March 12, 2012
Wednesday, March 7, 2012
Tuesday, March 6, 2012
Monday, March 5, 2012
How Much is Too Much?
Don’t leave affordability to chance and emotion.
You’ve found the home of your dreams. It’s expensive, but it’s beautiful, it has room to grow, and you can just squeak by if you’re careful–maybe.
This is a common situation, and all too frequently, it ends poorly–just look at the number of foreclosures on the market. Buying a home is an emotionally loaded process. Deciding how much home you can afford shouldn’t be.
As a general rule of thumb, a home that costs more than three times your gross income is too much of a stretch. Twice to 2.5 times your gross income is generally a safer bet, though that may be difficult to find in high-priced areas like California or the northeast.
To get a more specific estimate, you’ll need to include credit score, interest rate, closing costs, and taxes into your calculations, and these vary by location, and even day of the week. There are a number of mortgage calculators online, and they can be a great resource for examining different scenarios. To examine your situation in more detail, visit BankRate or another calculator, and input today’ states. If you’re unsure of which loan type to choose, stick with a 30-year fixed rate.
Once you arrive at a monthly payment, compare it to your current rent or mortgage payment. At this point, honesty is critical. Are you able to make your current payments without any problems? Are you falling behind? Banking extra each month? Determine a realistic payment and work backward. If you’re currently renting, you may need to include new types of payments like repairs, but the tax benefits of homeownership should allow you to spend roughly 30 percent more while maintaining the same standard of living–provided you can wait until the end of the year to see your return.
Once you arrive at a monthly payment, compare it to your current rent or mortgage payment. At this point, honesty is critical. Are you able to make your current payments without any problems? Are you falling behind? Banking extra each month? Determine a realistic payment and work backward. If you’re currently renting, you may need to include new types of payments like repairs, but the tax benefits of homeownership should allow you to spend roughly 30 percent more while maintaining the same standard of living–provided you can wait until the end of the year to see your return.
Utilities, student loans, credit card payments, and other monthly debt will also factor into your ability to pay. Lenders will generally cap total monthly debt payments at 41 percent of your gross income, so be sure to pay down those expensive credit cards as much as possible before yo start your search.
Friday, March 2, 2012
Thursday, March 1, 2012
Selling Jitters
What can happen when a home goes up for sale? Five things. Here’s a list from the best-case scenario to the worst case.
1. Multiple Offers: Flurry of showings that produce multiple offers, resulting in a sale price above asking. The property was underpriced, either by accident or design.2. Great Offer: Lots of showings produce one very strong offer, at or near the asking price. The price was spot-on.3. Acceptable Offer: Eight to 12 showings in 30–45 days produce an offer adequate to satisfy seller and lead to closing. This is the norm.4. No Offers/Unacceptable Offers: Eight to 12 showings in 30–45 days but no offers or only unacceptable offers; a clear indication of a property problem. Agents and buyers are visiting the property, only to be disappointed on arrival. If the problem can be fixed (say, by painting over bright paint colors), then the seller should fix it. If not, the problem must be overcome by offering buyers a better price.5. Nada: Little or no showing activity. Agents and buyers are looking at listing details and electing not to even visit the home. Clearly, the price exceeds the market’s expectations.
If you’ve tried in the recent past to sell your home — and you’ve only gotten unacceptable offers or none at all — it’s likely that your listing was overpriced or there’s a problem. Contact us to discuss your home so we can help you sell successfully.
From our March 2012 E-Newsletter
Wednesday, February 29, 2012
Tuesday, February 28, 2012
The Shops at Wisconsin Place Sells for $113.25M
TIAA-CREF is the new owner of the commercial component of the Wisconsin Place development, Citybiz Real Estate reports.
The retail component of the award-winning, commercial and residential Wisconsin Place development has been sold to TIAA-CREF for $113.25 million, Citybiz Real Estate reported.
TIAA-CREF also owns the Mazza Gallerie, in Washington, DC, across Western Avenue from Wisconsin Place.
Monday, February 27, 2012
Sunday, February 26, 2012
Thursday, February 23, 2012
Tuesday, February 21, 2012
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