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.
by CRESTICO | Oct 31, 2009 | CRESTICO
An Update on Recent News Surrounding the Homebuyer Tax Credit
Much discussion and controversy have been surrounding the impending end of the First Time Homebuyer Tax Credit. Initially set to expire in November, the government is now considering extending the credit into next year. In this article, you will find some of the recent developments in this topic.
In order to be eligible, the cost of the home may not be more than $800,000 and there would be $125,000 and $225,000 income limits for single and joint filers (over the age of 18), respectively. Additionally, as long as the new home is the buyer’s "principal residence" for at least 3 years after the date of purchase, the credit will not need to be repaid.
$8,000 is the amount of the credit for first time homebuyers and there is now talks of adding a $6,500 credit for move-up buyers (people who have been using the home they are leaving as their "principal residence" for at least 5 years) who purchase homes between December 1, 2009 and April 30, 2010, as long as the transaction closes by June 30. Any purchases made in 2010 would be acceptably filed on 2009 tax returns, as long as a HUD-1 settlement statement is attached when the credit is being claimed.
As always, buying a home is a big task and there are lots of questions anyone considering buying or selling will have. For this reason, it is a very good idea to get the assistance of a qualified, experienced and helpful Real Estate agent. Your real estate agent can mean the difference between happy holidays in your new home or spending the holidays stressed out and worried about just one more unnecessary thing!
For more information please visit http://www.crestico.com
by CRESTICO | Oct 30, 2009 | CRESTICO
Our country’s economy, like many things, is on a cycle and just like the old adage says, what goes up, must come down. We experienced a boom in Real Estate in the early 2000s and we are merely seeing the after effects of that boom now. While perhaps you may not be able to purchase a million-dollar oceanfront property this year, or even next; you will still be able to realize your very own version of the American dream.
The Mortgage Bankers Association issued a statement saying "Sales of existing homes will rise 11 percent in 2010, and sales of new homes will climb 21 percent over this year." This is great news for everyone, particularly future homeowners! What this means is that we are entering a part of the real estate cycle where things will start going back up. Just like everything else, you have to practice patience and good judgment when buying a home. Homes in the lower end of the market, also known as "entry level" or "starter" homes are a great place to start. Buying a starter home will not only ease you into the concept of owning a home, but will also familiarize you with the process of actually purchasing it. Additionally, while living in your new home, you will be able to experience the trials, tribulations and joys associated with being a homeowner.
Having a great real estate agent is the first step in this process. You will need someone to guide you through the market, not only in terms of prices and mortgages but also in terms of choosing a home that fits your lifestyle. Remember, your agent has access to multitudes of customers, buyers and sellers and the best way for you to take advantage of everyone else’s experience is to work with an agent who is experienced!
by CRESTICO | May 13, 2009 | CRESTICO
Starting the Home Buying process
Choose a professional who specializes in residential Real Estate. She or he should have specific knowledge of the local real estate and mortgage markets.
Consider references carefully. An experienced, confident Agent can provide you with names of recent buyers in your market with whom he or she has worked.
Select a professional who will listen to you. Your Agent should be interested enough in you to find out about you and your housing needs and preferences.
Select a professional who puts service first. Strong customer service is key in today's real estate business. For Crestico Real Estate Agents, this service goes above and beyond giving buyers only what they expect and need. Your Crestico Real Estate Agent can show you any house that's for sale in your market – not just the homes listed by our company. If you see a house for sale that you like, arrange a viewing through us.
by CRESTICO | Mar 14, 2009 | CRESTICO
Investing in Your Real Estate Career
Have you ever thought about doing real estate as a full-time profession? Have you heard the term “buyer’s market” and want to know how YOU can capitalize on that? If you’re considering a real estate career, or have begun one and are still new to the industry, there are a few things that are important to keep in mind as you travel along this journey.
First, keep in mind that in real estate, as with most things, the rate of your success is directly related to the amount of “investment” you make. Now, you are probably thinking ” I have to SPEND money to make money?!” Yes and no. The investment that we are referring to here is mainly made up of time and effort, but you may need to invest some money into your career. Careers are like homes, they may seem perfect but they can always stand a little work. Here are some things you’ll need to consider.
Automatic success does not exist. While we believe that almost anyone can be successful at a career in real estate, no one does so automatically. Unless your daddy is a real estate mogul and buys a multitude of million dollar properties every month, you will need to work at it. A very smart real estate agent told me once, about her career, that she loves real estate because “you eat what you kill” and that is so true. You do have to put effort into your work, just like in any career, to become truly successful. This advice will help you to think about what you need to do to better serve your customers, and to grow your real estate career. For more advice and information, feel free to contact me directly.
