Tuesday, December 18, 2012

93% of Young Adults Plan to Buy a Home

It is believed, that young adults between the ages of 18-34 will be a major percentage of all buyers purchasing a home in 2013. Some believe we are overestimating the millennials’ believe in homeownership. However, a new study by Trulia reveals we may be dead on. Regarding young adults, the study reports:

43% are already homeowners
93% that currently rent plan to purchase a home
72% say homeownership is part of their personal American Dream

Jed Kolko, Trulia’s Chief Economist, explained:

“Millennials have been shaken, not scarred by the housing bust. Nearly all of them want to own a home someday, if they’re not homeowners already. But many of them think today’s low prices and low mortgage rates will last. They may be in for sticker shock if the cost of homeownership has returned to normal levels by the time they’re ready to buy.”

If you are a young adult waiting to buy, you must realize that the price of a home and the cost of a mortgage are both projected to increase in the next 12 months.

Source: The KCM Blog:
Posted: 18 Dec 2012 04:00 AM PST


Thursday, December 13, 2012

2 Home Buying Tips


1. Start by polishing up your credit.
Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct. Fix any problems you discover. This is where I can help.

2. Get professional help.
Even though the Internet gives buyers unprecedented access to home listings, it's still a good idea to use an agent. I work with knowledgeable real estate professionals who will have your best interests at heart and can help you with proven strategies during the bidding process.

Friday, December 7, 2012

Conforming Loan Limits Will Remain at 2012 Levels

On Thursday, November 29, 2012, the Federal Housing Finance Agency announced that the maximum dollar limits for conforming loans will remain at 2012 levels for Freddie Mac and Fannie Mae in 2013. This applies to one unit properties across the country, however some "high cost" areas may have limits as high as $625,000. Multi-unit loan limits will also remain the same, as these are "simply multiples of the one-unit limits."

How are loan limits established?

Loan limits are determined by the median home values in local areas, and are established annually under the terms of Housing and Economic Recovery Act of 2008.

This method applies to both the determination of conforming limits and limits for higher cost areas.

Why did 2013 loan limits remain unchanged from 2012?

While recent Home Price Index numbers have increased, they have not fully offset the "cumulative decline in prior years." For example, the U.S. home price fell "more than 19 percent through mid-2011," and under the rules of HERA, the prior declines in price must be "fully offset before loan limits can increase."

What is the bottom line?

The bottom line is that now is a great time to consider a home purchase or refinance, as home loan rates remain near historic lows.

Thursday, November 29, 2012

Find out How Much Mortgage Can You Afford

You can save yourself a lot of wheel-spinning if you take a minute to figure out how much mortgage you can afford. Generally, a lender will want your monthly mortgage payment to total no more than 29% of your monthly gross income (that's your monthly income before taxes and other paycheck deductions are taken out.) You also need to consider current loan interest rates. The lower the interest rate, the more expensive the home you'll be able to afford.

I can help focus your attention on homes that are realistically within your budget. Better yet, I can help you find the hottest values as they come to market, so that you get more for your money.

Why Should I Buy, Instead of Rent?


You'll love the feeling of having something that's all yours - a home where your own personal style will tell the world who you are. A thriving vegetable garden in the backyard, a tiled entryway, a yellow kitchen...when you own, you can do it all your way! But there's more to owning a home than personal satisfaction. You can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes, too. And interest will compose nearly all of your monthly payment , for over half the number of years you'll be paying your mortgage. This adds up to hefty savings at the end of each year. And you're also allowed to deduct the property taxes you pay as a homeowner. If you rent, you write your monthly check and it's gone forever. Another financial plus in owning a home is the proven possibility its value will go up through the years.

I can help you make a wise business investment by finding the perfect first home for you. Just tell me what you are looking for and I'll make sure you'll be aware of every possible new listing in the area that matches your needs.

Monday, November 19, 2012

Inspiring Food for Thought

"Motivation is what gets you started. Habit is what keeps you going."
– Jim Rohn

Friday, November 16, 2012

Who is considered a first time Home Buyer?

Did you know that if you do not currently own a home and have not owned a home within the last 3 years, you would be considered a first time home buyer and might qualify for special first time home buyer loan programs? This is true and definitely worth looking into.

Tuesday, September 4, 2012

Home buying tip: Moving Funds in and out of bank accounts during and right before your home buying transaction

There is so much to remember when purchasing a home. One very important tip when it comes to buying your home is to be sure NOT to make any deposits into your bank accounts that can not be explained or sourced with documentation.

My advice to my clients is to always check with me before moving any funds in or out of a bank account. Unfortunately a move like this can compromise your home loan if it is not done correctly or talked over first with your mortgage lender. A simple task to discuss, which will create a much smoother closing on your home buying journey.