There May Be Hope for the Real Estate Market Yet!

By Heather Faucher | Posted on August 13, 2009 | Filed Under Real Estate 

There may be hope for consumers who have spent months–if not years–trying to sell their homes in a housing market that has been not-so-hot for the past couple of years. According to the latest survey conducted by the National Association of REALTORS®, existing-home sales showed healthy gains in the second quarter versus the first quarter in most states. Additionally, the decline in home prices has increased the affordability in most metro areas.

Thirty-nine states showed increased sales compared to the first quarter, and nine states had higher sales than those from a year ago; the District of Columbia enjoyed both quarterly and annual increases. According to the survey, the nation’s total existing-home sales (which includes single-family as well as condo properties) increased by 3.8 percent in the second quarter compared to the first, although it remains 2.9 percent lower than the amount of sales in the second quarter of 2008. Still, the fact that sales are once again increasing is definitely a positive sign.

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First Time Homebuyers Q&A Part 4

By Heather Faucher | Posted on July 21, 2009 | Filed Under Real Estate 

Check out Part 1, Part 2, and Part 3 of this semi-regular series.

14. WHAT’S A BETTER BUY:  AN OLDER HOME OR A NEW ONE?

There isn’t really a black or what answer to this question, since there are pros and cons to each.  Older homes are often located in more established neighborhoods which could translate to higher property value and a better school district.  They also typically offer more ambiance and lower property tax rates.  That extra atmosphere and charm can come with a price, however; those purchasing older homes should be ready for home repairs and maintenance costs that naturally come with the territory.  Newer homes, on the other hand, often have more modern architecture, amenities, and floorplans, require less maintenance and repairs, and can also be more energy efficient than older home.

15. WHAT SHOULD I KEEP IN MIND WHEN DOING A HOME WALK-THROUGH?

The U.S. Department of Housing and Urban Development (HUD) offers a Home Scorecard you can use in addition to any minimum requirement or wish lists you might have.  Questions to consider include:

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First-Time Homebuyer Q&A: Part 3

By Heather Faucher | Posted on July 9, 2009 | Filed Under Real Estate 

Check out Part 1 and Part 2 of this semi-regular series.

8. WHERE SHOULD I GO FOR INFO ON LOCAL SCHOOLS?

One surefire source for getting the low-down on local schools is by contacting the school systems themselves. They can give you basic information on their statistics and rating levels. You can also pop by their website, if they have one, to see what information they have posted online. Alternatively, contacting the city or county school board can also turn up further information on local schools. A good real estate agent is definitely going to be knowledgeable about schools in the area, so may be an additional source to tap.

9. WHAT ABOUT INFO ON COMMUNITY RESOURCES?

The local chamber of commerce is a great place to start. They should have promotional literature they can send you, as well as a website you can poke around on your own time. Also, try asking your estate agent about welcome kits, maps, and other information. Another place to seek information is the local library, since it can be an excellent source for information on local events and resources. Many librarians can often answer many of your burning questions–and are eager to help library patrons.

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First-Time Homebuyer Q&A: Part 2

By Heather Faucher | Posted on June 30, 2009 | Filed Under Real Estate 

Check out Part 1 of this semi-regular series.

4. WHAT DOES THE LENDER DO TO CALCULATE THE AMOUNT OF MORTGAGE I CAN AFFORD?

The biggest factor lenders consider is the debt-to-income ratio, which is a comparison of a potential homebuyer’s gross (pre-tax) income to housing and non-housing expenses. Examples of non-housing expenses include long-term debts like car or student loan payments, alimony, and child support. The Federal Housing Administration (FHA) recommends that monthly mortgage payments should not exceed 29% of gross income. Additionally, the mortgage payments combined with non-housing expenses should not exceed 41% of income. One other factor lenders look at is any available cash for down payment and closing costs, along with credit history, when factoring in what a potential homebuyer’s maximum mortgage amount should be.

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First-Time Homebuyer Q&A: Part 1

By Heather Faucher | Posted on June 25, 2009 | Filed Under Real Estate 

Many first-time homebuyers know next to nothing about the whole process, and often have a ton of questions they need to find answers to.  While finding a reputable real estate agent or experienced real estate attorney can be one way to find the answers to those questions, this series of posts is going to attempt to answer some of the burning questions first-time homebuyers have as they start the process.

1. HOW DO I KNOW IF I’M READY TO BUY A HOME?

The following checklist is a great one to use to honestly assess your readiness:

–Have I had a steady source of income for 2-3 years?  Is that current income reliable?
–Do I have a solid track record of paying my bills in a timely manner?
–Do I have a limited amount of long-term debts, like car payments?
–Do I have money saved for a down payment?
–Can I truly afford a mortgage payment every month, plus any additional costs such as insurance?

If you answered yes to most of these questions, you are likely ready to at least consider purchasing your own home.  And if you answered yes to ALL of them, chances are it’s the right time to start researching and house hunting!

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