Now is Still a Good Time to Buy?

More than 80% of first-time home buyers and sellers feel the current housing market is more affordable today than this time last year, despite the fact that 40% of all respondents are more worried about the economy compared to this time last year, according to Century 21 Real Estate LLC’s First-Time Home Buyers and Sellers Survey.

While the attractive combination of home prices, mortgage rates and tax credits appeal to both buyers and sellers, market conditions continue to favor buyers. However, first-time home buyers anticipate home prices will soon begin to rise and in fact, about half of first-time buyers (48%) expect an increase by this time next year, thereby reestablishing the balance between buyers and sellers.


Home price effects on first-time buyers and sellers:

-More than 80% of buyers believe now is a good time to buy a home.

-First-time home buyers rated the three most influential factors in their decision to enter the market and buy a home as current housing prices (66%), followed closely by both the home buyer tax credit (63%) and low interest rates (60%).

-Finding a home within a buyer’s price range is extremely important (95%), as is a neighborhood’s safety (90%).

-The top two factors influencing the first-timers’ decision to sell their homes were personal/family reasons and current housing prices – both of which were cited as motivating factors by 48% of first-time sellers.

-Most likely due to their experience, approximately half of first-time sellers (54%) think home prices are more affordable now than compared to this time last year.

-In fact, the current home prices have influenced 50% of sellers to ‘move-up’ and 37% to change neighborhoods.

-Sellers are mainly concerned about losing money on the sale of their home and receiving offers near their asking price.

-Approximately half of all first-time home buyers (48%) and sellers (53%) anticipate housing prices will increase over the next year.

Source: RISMedia.com

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New HUD rules to help consumers save $$$

The Department of Housing and Urban Development (HUD) has released an updated version of a booklet that’s intended to help consumers comparison-shop for a mortgage.

Much of the 49-page publication, “Shopping for Your Home Loan: HUD’s Settlement Cost Booklet,” is devoted to the new standardized Good Faith Estimate and HUD-1 settlement statement forms that lenders must begin using on Jan. 1.

The forms and other changes to implementation of the Real Estate Settlement Procedures Act (RESPA) are intended to help consumers comparison shop. HUD believes the new RESPA rules, which encourage lenders to package settlement services like title insurance with loans, will save consumers an average of nearly $700 in costs and fees per mortgage.

The new RESPA rules place restrictions on changes to estimated loan origination and settlement service charges as disclosed on the GFE. The RESPA rule changes also require that mortgage brokers disclose “yield spread premiums” — rebates paid by lenders when borrowers take out loans at higher interest rates than they could qualify for — and credit them against a borrower’s closing costs.

HUD has posted a RESPA “FAQ” — answers to “frequently asked questions” — and other information on a dedicated RESPA page to help lenders, settlement services providers and consumers understand the new rules.

Source: Inman News


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6 Steps to Buying a House After Bankruptcy

A bankruptcy remains on your credit report for up to 10 years. During this time, it may be difficult for you to obtain credit. However, you can recover after a bankruptcy. In fact, it is possible to purchase a house after filing a bankruptcy.

The key is taking steps to rebuild your credit history, and maintaining a good relationship with future creditors.

Step 1
Wait 18 to 24 months. You can buy a house one day after a bankruptcy discharge, but this normally results in higher rates. Postpone buying a new house for at least a year and a half. Use this time to reestablish credit.

Step 2
Apply for a secured credit card. To reestablish credit, you will need to obtain a new line of credit. Apply for a secured credit card, which is designed to help people without credit or bad credit. Banks, credit unions and credit card companies offer secured cards.

Step 3
Pay your bills on time. Once you have obtained a new line of credit, pay your bill on time every month to build a good credit history. Late or missed payments reduce your FICO score.

Step 4
Keep your balance low. Excessive debts contribute to bankruptcy. Practice wise credit habits and keep credit card balances below 25 percent of the credit limit. If possible, pay balances in full every month, and use cash for most purchases.

Step 5
Save money for a down payment. You may not acquire 100 percent financing with a bankruptcy on your credit report. Save money for a down payment of between five and 20 percent of the purchase price.

Step 6
Compare mortgage lenders. Shop around and request home loan quotes from at least three lenders. Then you can obtain the lowest rate and best deal on the mortgage. Use a mortgage broker to speed the process. They work with different lenders, and they will help you find the right mortgage program.

Original article by Valencia Higuera.


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