Before you place an offer on a house, obtain a pre-approved loan. This way, you won’t agree to something before knowing you will be able to pay for it. Also, understand that even after you’ve been pre-approved, the loan can still fall through if you do something to dramatically alter your credit score, like buying a car.
Therefore, when buying a house, it’s important to not only receive a pre-approved loan, but to also hold off on other large expenses for a while. If you really can’t wait to get that new car, perhaps you should hold the home purchasing process until later. After all, only you can determine what’s most important for yourself and your family.
Budgeting isn’t easy, but the fact is, if home buyers don’t set a budget for what they can afford for a house, things can go terribly wrong. The recent subprime mortgage crisis is a perfect example. Banks may say home-buying hopefuls can afford an amount they actually cannot afford. Budgeting is one way to ensure you don’t get trapped by knowing what you can and cannot afford to remain financially comfortable.
Create a budget that includes your major expenses. Examples of major expenses could be student loan payments, transportation costs (gas, car payments, etc.), credit card bills, cable bills and telephone bills. Also be sure to include expenses that come only once a year, like holiday bills or taxes. Add all this together and subtract it from what your earnings — the result is what you can afford on a house.Home buyers who skip this step could end up either badly wanting something they can’t afford and/or putting themselves at risk financially.
Mistake 2: Skipping Mortgage Qualifications.
The percentage home owners with mortgages who spent 30 percent or more of their household income on housing, including mortgage payments, taxes, insurance, and utilities, was 37.6 percent in 2009, almost unchanged from 2008. At the same time, the median home price dropped about 6 percent, according to data from the U.S. Census Bureau.
Renters weren’t so lucky. The number of renters spending 30 percent or more of their household income on housing-related costs rose to 51.5 percent of all renters in 2009, rising from 50 percent in 2008, according to the Census.
Two factors affected housing affordability:
Median household income, adjusted for inflation, fell 2.9 percent in 2009 as unemployment rose.
Median monthly housing costs, including rent and utilities, rose 3 percent in 2009 from $818 to $842.
HGTV’s real estate site Front Door says the weeks between now and the end-of-the year holidays are the best ones to find a bargain. Here are some of their tips for fall buyers and sellers:
Fall Sellers:
Replace faded summer plants with fall-blooming flowers and add autumn decorations to the home.
Expect low-ball offers and be prepared with higher counter offers.
Freshen up listing photos by shooting pictures that make it less obvious that the seasons have changed.
Price the home to sell. A price that is a little lower than the competition may be a winning move.
Be willing to show the property and hold open houses whenever potential buyers are ready.
Fall Buyers:
Look for motivated sellers who have a reason to move on by the end of the year.
Fall colors
Explore new constructions. Builders are often particularly interested in selling before the new tax year.
Beware of fall maintenance issues. Consider overflowing gutters and leaf-covered lawns warning signs.
Shape offers carefully. Even in this market it is possible to turn sellers off with a too-low bid.
Source: FrontDoor dot com (09/16/2010)photo credit: paul (dex)
This real estate scheme usually happens when the borrower owes more on the property than the current value. The borrower then pretends they have a financial hardship and can not make any more payments. Someone, an accomplice, who is working with the borrower submits a low offer to buy the property. The lender agrees with the short sale not knowing that it was all a set-up. The property is usually resold immediately for the actual value for a profit. If you suspect real estate fraud you can make a report with stopfraud.gov.
photo credit: TheTruthAbout...
"Flipping" a home is when you purchase property as an asset then quickly re-sell it for a profit. There are different types of flipping. Generally, flipping is legal. However, there has been an increase in illegal flipping. This is when a recently purchased property is re-sold for an inflated value. Usually only small cosmetic improvements have been made before re-selling it. This scheme involves the appraiser, a mortgage originator and the closing agent. The real estate appraiser is the key player, because for this scheme to work the property has to be appraised for more than it is worth.
The Uniform Standards of Professional Appraisal Practice governs real estate appraisers. If you suspect a flipping scheme you can contact them before making any real estate decisions.
photo credit: (Bill and Mavis) - B&M Photography
Yes, houses will sell as long as they are priced right. In many — but not all places — that means they’re priced low.
"People who price their homes to the market are selling them in a reasonable amount of time, but people who cling to 2004 or 2005 prices aren't," says Richard Smith, president and CEO of Realogy, the parent company of Century 21, ERA, Coldwell Banker and Sotheby's International Realty.
In some areas, pent-up demand has exploded. "It's crazy," says Brendon DeSimone, an associate with Paragon Real Estate in the Noe Valley near San Francisco. "I had one house with five offers, and it went from $1.4 million to $1.7 million. The valley has just popped. It's not uncommon for one open house to have 200 people come through."
Source: USA Today, Stephanie Armour (07/28/2010)
Home Prices In Arlington Continue To Hike
The housing market in Arlington County is getting more and more expensive as potential buyers continue to have fewer homes and condos to choose from.
Inlet Cove is alongside Route 1 This neighborhood of townhouses is near grocers and eateries Inlet Cove is close to Fort Belvoir, Alexandria, and Potomac Mills shops, in the city of Woodbridge Interior to these properties are multilevel Inlet Cove is serene
Pending home sales increased again in March, affirming that a surge of home sales is unfolding for the spring home buying season, according to the National Association of REALTORS®. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, rose 5.3 percent to 102.9 from 97.7 in February, and is 21.1…
Some of the best housing deals are on high-end homes, many over $1 million. Some of them need TLC or they aren’t in the most-coveted locations. But there are plenty of desirable properties and lots of sellers who are getting impatient. Buyers with cash have the best opportunities. Buyers who need a mortgage should move…
The National Association of Realtors recently did a study about the characteristics of home buyers. Some of the findings might surprise you. Thirteen percent of buyers purchased a home with one or more parents and grandparents together with adult children. There were several reasons given for purchasing a multi-generational home. Cost savings; Children over the…
ForbesWoman calculated the best cities for working females raising children. To pick the 10 best, it factored in crime rates, quality of the schools, availability of good healthcare, employment opportunities with high earning potential, and a budget-friendly cost of living.
Here are their picks:
1. Minneapolis-St. Paul, Minn.
2. Washington, D.C.
3. Boston, Mass.
4. Pittsburgh, Pa.
5. Baltimore-Towson, Md.
6. Denver, Colo.
7. Hartford, Conn.
8. New York
9. Seattle-Tacoma, Wash.
10. Buffalo-Niagara Falls, N.Y.
Source: ForbesWoman, Meghan Casserly (07/26/2010)
Find homes for sale by school district in Northern Virginia
One of the most import decisions you'll ever make for your child is where they will attend school. Northern Virginia prides itself on many fine public schools and our website empowers parents to find homes . If you need help finding a home or would like suggestions that will fit with your commute, please feel free to call us at any time.
Cameron Station school
Here's a snapshot of what's going on in the real estate market in Arlington VA as of April 28, 2010. The median price of homes sold increased sharply after March and at the same time the average number of days on the market decreased. This is a strong indicator that the market is recovering. As we approach the end of the first-time homebuyer's tax credit, we'll see if this is a trend or if this is capturing sales that would have occurred in June anyway.
Will NesbittWill Nesbitt is the principal broker of Condo Alexandria.
"Flipping" a home is when you purchase property as an asset then quickly re-sell it for a profit. There are different types of flipping. Generally, flipping is legal. However, there has been an increase in illegal flipping. This is when a recently purchased property is re-sold for an inflated value. Usually only small cosmetic improvements have been made before re-selling it. This scheme involves the appraiser, a mortgage originator and the closing agent. The real estate appraiser is the key player, because for this scheme to work the property has to be appraised for more than it is worth.
The Uniform Standards of Professional Appraisal Practice governs real estate appraisers. If you suspect a flipping scheme you can contact them before making any real estate decisions.
