HOUSING CRISIS TO END IN 2012
HOUSING CRISIS TO END IN 2012
D.S.News.com reports that Capital Economics experts predict that the housing crisis will end this year. The primary reason is that banks are loosening credit standards. You no longer have to be Donald Trump to buy a basic home!
Five years ago buyers could qualify for a loan when their FICO credit score was in the mid to low 500s. (Fair Isacc Corporation developed a formula to apply to an individuals credit history which predicts the likelihood of a that borrower being 90 days late on their mortgage payment. The scores range from 300 to 850) The factors considered are: 1) payment history, 2) credit history length, 3) Recent searches of their credit record, 4) Other factors, such as types of credit used, recent improvements or declines, court or tax liens…) It now takes a FICO score of 700 to qualify for a mortgage loan.
During the housing spike, one could obtain a loan for 100% of the purchase price. In the past year, few borrowers could get a loan for more than 75% of that purchase price. Lenders have recently loosened that requirement and most are back to a loan of 80% of the purchase price if other factors pass muster.
Lenders are also now lending amounts of up to 3.5 times a borrower’s annual income, up from 3.2 times in recent years.
The days of 100% financing and “liars loans” are long gone. Borrowers still have to meet stringent standards to qualify for financing. The good news is that lenders are loosening up on most of those standards a little bit at a time.
The lenders are being very cautious, however, they have new loans to stay in business, so the market is slowly righting itself.
Select this link for the full DS News story:
If you have questions about obtaining a loan, feel free to call or text (916) 337-0658 or e-mail Mike@BuyYourVilla.com .
THIS MONTH IN REAL ESTATE – December 2011
THIS MONTH IN REAL ESTATE – December 2011
This is one in a series of brief videos designed to provide buyers and sellers information about the sale and purchase of real estate. The data provided helps people better understand the market place and the process of buying or selling. The tips are offered so that you can leverage your position in that purchase process. Knowledge is power, or at least a tool with which to increase your chances of success.
If you are thinking of buying or selling in our area, we will be happy to assist. Just call (916) 337-0658, text or e-mail us at Mike@BuyYourVilla.com.
EL DORADO HILLS HOME SALES DATA
EL DORADO HILLS HOME SALES DATA
El Dorado Hills is a beautiful area, an ideal location to raise a family and meet life’s challenges. Since El Dorado Hills is a bedroom community, there are many fine homes from which to choose at any given time.
A prudent buyer will investigate an area before they decide if it is right for them. They will also learn as much as they can about the local real estate market. The purpose of this post is to provide home sales data for single-family homes in El Dorado Hills.
Contrary to all of the media hype about the “national” real estate market, real estate markets are local and one can be very different from another.
For those of you who remember your Economics 101 class, the laws of supply and demand still apply, especially in the real estate market. One of the statistics Realtors® monitor carefully is supply, or the inventory of homes available on the market.
Pundits consider a six-month supply to be a neutral market. An inventory of less than six-months is a seller’s market and an inventory of more than six-months is a buyer’s market.
The graph below provides the inventory data for El Dorado Hills for the past 15-months. You can see that there were two months in which the inventory level exceeded a six-month supply, both at the beginning of last year. Homeowners are reluctant to put their homes on the market when sales prices are low.
The second graph lists the actual price per square foot that single-family homes sold for in each of the past 15-months. This is an important statistic to Realtors®, one used to determine to value of any specific property.
Naturally, there are fluctuations but there is no measurable trend. We submit that the price point is bumping along at the bottom of the market.
We can provide this data for any town in our seven county areas. If you have an interest in a specific home, we will be happy to help you determine a value and assist you in getting the best possible deal. Call (916) 337-0658 or e-mail Mike@BuyYourVilla.com
WHAT TO EXPECT AT YOUR SIGNING
WHAT TO EXPECT AT YOUR SIGNING
This posting is the forth in a series designed to help take the mystery out of the home buying and selling process. That process can be confusing and, since it pertains to the single most expensive asset most of us have, our home; we feel that our clients are better prepared for the experience if they have some understanding of each step in the process in advance.
If you have reached this point in the purchase of any real estate, congratulations, you are in the home stretch. The seller has met all of your requirements and, with the exception of the loan, you have met theirs. You will have received final approval of your loan, completed all inspections, and reviewed and approved all inspection reports.
The deed of trust and the promissory note are two of the many documents that you will sign. The escrow officer will return all loan related documents to the lender, where they will be carefully reviewed. The lender will fund the loan on the date of closing, sometimes the day before.
The document signing usually takes place a few days before the recording of the transfer of title, and escrow is closed. The escrow officer will have informed you about the exact amount of the funds you have to bring to close the transaction.
The signing usually takes between an hour and an hour and one half to complete, so make sure you set aside enough time.
Funds must be in the form of a certified check, or you can wire transfer them directly into escrow. Sorry, no personal checks, cash or credit cards may be used.
Don’t forget to bring identification. Most people use a driver’s license or passport. The person who conducts the signing is a notary and must notarize many of the documents.
First American produced a straightforward video that is easy to understand. If, after you view the video, you have questions, please feel free to call, text (916) 337-0658, or e-mail Mike@BuyYourVilla.com for clarification.
WHAT IS TITLE INSURANCE?
WHAT IS TITLE INSURANCE?
This posting is the first in a series designed to help take the mystery out of the home buying and selling process. That process can be confusing and, since it pertains to the single most expensive asset most of us own, our home; we feel it best to provide our clients with an understanding of the process before it starts.
The second posting and video in the series covers title insurance. Title insurance is one of many types of insurance with which a homebuyer must deal.
Just as you have insurance on your automobile protecting you against a loss in an accident and hazard insurance for your home in case of fire or disaster, title insurance protects a homeowner against obscure or unforeseen issues from the past that could endanger your title (ownership of the property).
Title insurance only exists in the United States and a few other first world countries. In most of the world when you purchase real property, there is a danger that you could lose that property because of the actions of the past owners.
In the United States when you purchase property, you also purchase a title insurance policy. If, at some later date, issues arise, such as unpaid taxes, forged documents during a past transfer of the property or mechanics liens because a former owner failed to pay a contractor, title insurance protects you, the owner, and ensures that you do not lose your property as a result.
First American produced this straightforward video that is easy to understand. If, after you view the video, you have questions, please feel free to call, text (916) 337-0658, or e-mail Mike@BuyYourVilla.com for clarification.