Live and learn. Advice from a reputable Lender…When you’re in the Escrow process don’t alter your credit by spending money unnecessarily. Even though you’ve been approved for a loan you run the risk of losing the loan by charging items that may affect your loan ratios.
Example…You buy a bedroom set or other items for the new home or even worse buy a new car during the Escrow period. Recently Banks once again have been tightening their noose even though they gave you an approval. Their new business practice is a last minute credit check a few days before Closing to insure the Borrower’s ratios remained acceptable. If they discover a negative you most likely will lose the purchase or have to bring in cash to offset the penalty. Most Borrowers don’t have extra cash on hand and unfortunately lose the purchase.
My advice. Once you’re in Escrow don’t make these types of mistakes. Keep yourself informed. Work diligently with your realtor and lender. Relax and enjoy the waiting period and think of all the things you would like to do with the home once it’s yours.
FYI. Interest rates today: Government Loans 3.25%
Conventional Loans 3.75%
I was enjoying my morning coffee watching Good Morning America on my TV when I viewed a story that really got me angry and very disappointed. It shows a Realtor stealing drugs and other items from a listed home.She was caught in the act on the home owner’s hidden camera.
No wonder when we take a listing Seller’s are concerned about Realtor and client access into their homes. After all their home is their “Castle”. Seems like we live in an age where “trust” is questioned more so no matter what the subject is.
Most all Realtors are truly honest. I’ve been in Real Estate for 22 years. I have heard of this illegal behavior only on few occasions. When you’re on a Listing don’t be surprised if the Seller brings up this story. Be prepared to defend yourself and the Real Estate Profession.
Spoke with a reputable Lender this morning for an update on Interest Rates. What GREAT NEWS…Interest rates nearing if not already all time LOW. Conventional 3.875% and no points. Government Loans even lower. I can’t remember gas under $2.00 and Interest rates under 4%. Great time to fill up the car and go house hunting.
I read an article that got my attention. To my surprise I was shocked that a majority of home buyers are not aware of the number down payment assistance programs.
Seventy percent of U.S. adults are unaware of down payment assistance programs available for middle-income home buyers in their community, according to findings from the second annual America at Home survey commissioned by Neighbor Works America, a national nonprofit community development corporation based in Washington, DC. There are hundreds of millions of dollars available for down-payment assistance. I believe this dramatic statistic is the result of buyers not seeking the assistance of a knowledgeable realtor or lender that can explain the options available.
So if you thinking of buying a home seek professional advice from a professional early on. It’s will save you time and $$$.
Source: Housing Wire
Home prices can vary because buyers are unusually idiosyncratic—some people will fall for a house just because it has a walk-in closet, an extra bathroom, or a breakfast nook. These idiosyncrasies cause two different buyers to place wildly different values on the same house, which can produce some surprisingly rapid fluctuations in price.
Making sense of the story:
• There are seasonal differences in home prices. For example, the cost of a home is higher in the summer than in the winter. These seasonal shifts are well documented—most housing indexes provide “seasonally adjusted” prices—but many models of the housing market have failed to account for them.
• The reason for the difference? In the summer, there are many houses for sale, people find their ‘ideal house’ quickly, and they are willing to pay a higher price. While it’s true that homes generally cost less in the winter, that’s also when there are fewer out there to choose from—and thus when it’s harder to find a perfect fit.
• Because there is this critical mass that prefers searching in the summer, sellers list their houses for sale in the summer. And because there are more houses for sale, buyers also then prefer to search in the summer.
• People who move into new homes during the summer are often more satisfied with their purchases: They tend to live in those homes longer and spend a lot less money on remodeling. But, for those rare few who aren’t as picky about a house as everyone else, it makes sense to buy in the winter, when the pickings are slimmer but the prices are too.
Read the full story
TALKING POINTS …
• Slower price gains and the lowest interest rates in nearly two years did little to spur November home sales as low housing affordability and tight supply conditions remained obstacles to entering the market for would-be buyers, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
• Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 376,480 units in November, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. Sales in November were down 5.3 percent from a revised 397,400 in October and down 3.4 percent from a revised 389,580 in November 2013. Home sales have been below the 400,000 level since November 2013. The statewide sales figure represents what would be the total number of homes sold during 2014 if sales maintained the November pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
• The median price of an existing, single-family detached California home slipped 1.1 percent from October’s median price of $450,270 to $445,280 in November but was up 5.2 percent from the revised $423,090 recorded in November 2013. The statewide median home price has been higher on a year-over-year basis for more than two years, but price gains have narrowed over the past few months. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.
SOURCE: The Atlantic