by David Glenn | May 19, 2016 | CRESTICO
Purchasing your first home might be one of the most expensive purchases you’ll make, which makes it even more important to do it right. The best way to go about shopping for a house is to line yourself up with a good realtor, explore financing and determine the priorities you seek in a new home. Most first time buyers make one or two mistakes during the process of buying a home. However, using these tips can help you to avoid mistakes and highlight important items to consider as you begin shopping for homes.
Determine What Features You Need
Before looking at homes, make a checklist of the features you need. For example, you might list the number of bedrooms, a large yard, fencing, home office and a family room. Next, you could list features that would be nice to have like a swimming pool, garden or patio.
Contact a Realtor
Ideally, if you’ve never been through the home buying process, you should consider working with a realtor to find a new home. He or she can show you several homes, write contracts, make recommendations and provide guidance for you as you complete the home buying and closing processes. Working with a realtor to find homes in the neighborhoods you like can save you time and money.
Realtors have access to the MLS (Multiple Listing Service), which is essentially a huge database of home listings supplied by Real Estate brokers. The listings include details and features about each property that is for sale. Your realtor can use the MLS to choose homes to fit your budget and location requirements, which makes it faster and easier to find your dream home.
Location Considerations
Unfortunately, many new home buyers fail to take into consideration the importance of where the home is located. For instance, you may have found the perfect home, but if it’s too far from work it may turn into a major problem. Before choosing neighborhoods, consider these questions:
Is a short commute to work a requirement?
- Does the home need to be in a good school district?
- Do we want nearby access to entertainment?
- Is public transportation a requirement or just a bonus?
Household Costs and Other Expenses
It is smart to get a rough estimate of what your monthly expenses will run for a new house before purchasing. To start with you’ll have the principal and interest on the home. Add in insurance and taxes. You may have to factor in home owner association fees. Next, you’ll want to consider power and water utilities. Don’t forget telephone and internet services.
Homeowners Insurance
The home and location can affect the cost of homeowners insurance, which is required when carrying a loan on the property.
- Homes located near fire stations or hydrants usually result in a discount.
- Home security systems may qualify for better rates.
- Neighborhoods in high crime areas cost more to insure.
- Homes in known flood zones or areas prone to earthquakes are more expensive to insure.
Home Inspection
Ordering home inspections on new or used homes isn’t a requirement for purchasing but it often proves to be a smart idea. Home inspectors provide an unbiased home inspection and cost about $300 to $500. They inspect the main household systems such as heating, cooling, electrical and plumbing.
Credit Check and Financing
Contact one of the three credit bureaus, and pull a free copy of your credit report before you consider financing and shopping for a home. Make sure the report appears to be accurate. The best Interest Rates for loans are offered to those people that have a good or higher credit score rating.
Keep in mind that you may have to put down as much as 20 percent for you down payment on the home. However, it’s possible, you may qualify for federally-backed loans, which often have Lower Interest Rates, small down payments or no down payment required.
Before shopping for a home, contact several banks and loan institutions to check their interest rates. It’s also a smart idea to get pre-qualified for a loan before home shopping.
Take your time to find the right home that meets all you requirements. Consider working with a realtor and a home inspector for professional services and recommendations.
by David Glenn | Apr 16, 2016 | CRESTICO
Real Estate is one business that has stayed somewhat steady in the extremely fast-paced and constantly changing world of the 21st century. That doesn’t mean that real estate doesn’t change and doesn’t have trends that work their way into the mainstream, however. It is always important to understand trends as an investor. One of the most important factors in a good investor is their ability to identify trends before everyone else and capitalize on those trends. So what will be trending in 2017? How about 2025? Here are a few things that could make the list.
Home automation
Home automation is something that some believe is currently trendy, but most would argue that it hasn’t hit the mainstream yet. Many homeowners own a smart TV, or Kinect, or perhaps an alarm system, but most couldn’t say that their home has been fully automated. Neither is there a single company, or even a few, that are owning the industry.
That will likely change in coming years. As home automation technology becomes more mainstream people will begin to develop habits that make the think they cannot live without certain home automation aspects. These will in turn spur further pushes by companies into the home automation sphere, and someday soon many people will be living in a world they once only saw on TV, where you can speak to your home and it is ALWAYS listening.
Electricity
The electric industry has remained fairly constant for as long as most people can remember. Just look at the power lines out your window and you will easily be able to see how long it has been since any updates have been made. All of that is changing with emerging technologies.
The solar industry is set to be the biggest disruptor. Multiple solar companies have gone public in the last few years and are using the funds to rapidly expand into emerging markets. Vivint Solar, a Utah based company that went public two years ago has reported more than 100% sales growth multiple quarters since the offering. They have found a wiling market that is hungry for cheap, renewable, safe electricity.
This in turn has powered companies like Tesla to release batteries that are capable of storing enough electricity to power an entire home. Combing solar technology with battery technology will allow homes of the future to go completely off the grid, with no need to rely on electric companies for their basic needs. This means no more power outages, no more downed power lines, and cheaper electric bills.
Already many properties are seeing watt-hour meter’s get installed that allow for landlords to measure exact electric usage and charge based on the amount they use. This will also be utilized more as the industry grows, allowing (or forcing) people to only pay for the electricity they use, while also giving people a better idea of how much electricity their family uses each month.
Small homes
A strange new trend that many analysts probably never thought would come is the less-is-more philosophy. Many analysts are seeing trends that point to significantly smaller homes being built. Home s are being built to match currently family needs, and space is being utilized in a much more efficient manner. Many homes that are being built are significantly smaller than homes nearby, yet seem bigger with space utilization techniques and good storage.
These are just a few trends. All can benefit a savvy investor who knows what to look for and can spot a deal. Remember, do your research and good things will almost always follow!
by CRESTICO | Dec 5, 2013 | CRESTICO, Mortgage, Real Estate
Distressed California Homeowners May Qualify for California’s Keep Your Home California Transition Assistance Program (TAP)
If your financially distressed California clients can no longer afford their homes and are pursuing a short sale or a deed in lieu of foreclosure, they may be eligible for financial help with their relocation to alternative housing.
The funds come from the Transition Assistance Program (TAP), part of the Keep Your Home California Program.
The state of California is providing up to $5,000 in transition assistance to qualified homeowners who can no longer afford to stay in their homes. You can help by advising your distressed clients that they must:
- Apply for the funds through their state’s website or by calling 1.888.954.5337.
- Maintain their property until their house is sold or returned to the lender via a negotiated deed in lieu of foreclosure.
For qualified homeowners, these state funds may be used in addition to any other transition assistance that the homeowner may receive by participating in the Federal Home Affordable Foreclosure Alternatives (HAFA) program or in any other pre-offer short sale program.
To learn more about the Transition Assistance Program’s guidelines, and how your clients may qualify, please visit that program’s website at http://keepyourhomecalifornia.org. You can also direct your clients to call 1.888.954.5337 and identify themselves as Bank of America customers
by CRESTICO | Jan 3, 2013 | CRESTICO
CoreLogic, a leading provider of consumer, financial and property information, analytics and services to business and government released a report showing that the Shadow Inventory dropped again late last year.
Should we be afraid of the Shadows?
Shadow Inventory is a term used to describe unsold Real Estate that is either in foreclosure or homes that owners are delaying putting on the market until they feel that prices are rising. Shadow inventory often causes homeowners to question whether it is a good time to sell their homes and when they can see rises in prices..
According to CoreLogic, this shadow inventory fell 12.3 percent from the previous year.
“The size of the shadow inventory continues to shrink from peak levels in terms of numbers of units and the dollars they represent,” CoreLogic Chief Executive Anand Nallathambi said in a press release. “We expect a gradual and progressive contraction in the shadow inventory in 2013 as investors continue to snap up foreclosed and REO properties and the broader recovery in housing market fundamentals takes hold.”
CoreLogic estimates the supply of homes that are seriously delinquent, in foreclosure or held by lenders and not currently on the market. Investors and economists keep an eye on shadow inventory to get a sense of how many homes might be headed into foreclosure and hitting the market.
CoreLogic estimated the dollar amount of shadow inventory as $376 billion in October, a decline from $399 billion the same month a year before. Florida, California, Illinois, New York and New Jersey account for 45 percent of these shadow properties recently reported by CoreLogic.
by CRESTICO | Nov 5, 2009 | CRESTICO
Recent Developments Regarding Conforming Loans
Media outlets are constantly reporting on the state of the economy, the housing crisis and mortgage defaults and delinquencies. Amidst these reports is the constant use of many terms the average American (homeowner or not) may not be too familiar with or even have a complete understanding of their definitions. One of these terms is "conforming loan." Now, we all know what a loan is; generally a borrowed sum of money that is to be repaid with interest to a lender. A conforming loan however, is a specific type of loan. Loans are classified as meeting and not-meeting GSE guidelines. GSEs, Government Sponsored Entities, are financial services corporations that have been formed by congress, the most popular of which are Fannie Mae and Freddie Mac. These GSEs set guidelines for the types of Loan Programs that are available to homeowners. Conforming loans meet these guidelines and, as a result, are part of the uniform mortgage documents and national standards that have been set for loans.
On October 30, 2009 President Obama signed a congressional resolution regarding conforming loans. This resolution basically allows the loan limit of $729,750 (the limit for high-cost areas, such as Southern California) to be extended into next year. This means that there is now a longer time period available for potential buyers to seek and gain approval for government loans to purchase their homes. Government loans offer advantages such as Lower Interest Rates, government guarantees and lower down payment requirements to homebuyers which make the purchase of a home a bit easier and more widely accessible. This extension is the result of a move by the government in 2008 Housing and Economic Recovery Act which was originally intended to be temporary. Homes are becoming increasingly affordable in the Southern California area, and this is one more step in that direction.
If you are considering buying a home or simply have questions regarding the process, a knowledgeable and qualified Real Estate agent is the best resource you can have to guide you in making your decisions. Real estate agents are on the cutting edge of breaking news and in the best position to explain your options and most beneficial decisions to you.
