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Holiday Real Estate For Buyers

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It’s believed that the holiday season is when the real estate market closes. This myth makes it a bad time to purchase a home. Did you see the “myth”?

You can get a great deal on a home by buying it over the holidays, while also minimizing competition. If you are looking to buy a home, here’s some information.

There will be many lights and inflatable Santas. You might find 20 years worth of holiday decorations in a home. Although these sellers were smart to keep holiday decor lightened and decluttered, you can see beyond that. How does the house’s bones look? What floorplan do you want? How big are the rooms? What kind of updating will you need to do? No matter what the sellers have done to their homes, it is important to ask your key questions while you tour.

It’s easy to get sucked into a low-priced home and become blinded by its affordability. This can lead to you overlooking a floorplan that doesn’t work for you, or a neighborhood that isn’t in your top tier. It can be helpful to have a list of “must-haves” before you start house hunting.

A home that is on the market during the holidays may not have been staged and updated to your liking. It’s possible that there is a reason why the home is being sold at this time of the year. Maybe there was a job change or transfer. You might find a great deal if you are willing to overlook the small things.

Fortune Builders stated that “if there is one undisputed truth about holidays, it is that real estate inventory tends to be lower during holiday months.” “There is simply less realty activity during holidays — less people selling homes. This is compounded by the fact that there are fewer realtors, mortgage lenders, and inspectors than usual. This can be a great advantage for home buyers in the holiday season, as there is less competition. You’ll find less buyers if you are able to find the property you want. This will increase your chances of getting a fair price, which can help you save even more.

However, there are limitations to what low you can go. Your agent can help you make sure that your offer is strong. It’s not a good idea to offend the seller or lose the house.

You don’t have to wait if there’s less competition during the holidays. There are many smart buyers out there who are looking for homes right now, so if you’re smart enough to do that, others will be doing the same. Don’t let the house go if you don’t love it.

According to The Mortgage Reports, only a few real estate agents can sell most houses in many areas. They often work at the largest agencies and communicate with each other about the latest market trends. This is crucial because fewer properties are available between Halloween and New Year’s Day. A connected, successful agent can help you gain early access to as many houses possible.

Today’s real estate agents won’t take clients to view homes if they don’t know what their budget is. Perhaps a family member or friend who is an agent might let it slide for the sake seeing what’s available. You don’t want to fall in love and then lose the home because you had to talk to a loan officer when another buyer was ready, prequalified and ready to make an offering.

You should ensure that your house is in good condition if you are selling it at the same time as you buy a new one. Your purchase could be delayed or stalled if your house isn’t available for sale when you make an offer.

 

Original Blog: https://realtytimes.com/archives/item/1034640-holiday-real-estate-a-buyer-s-guide?rtmpage=

If Mortgage Rates Remain at 7%, Home Prices Won’t Fall Significantly. However, They Could Rise Slightly in 2023.

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According to Lawrence Yun, Chief Economist at NAR, severe shortages of housing inventory will keep large price drops from most of the country next fiscal year, despite high inflation, rising mortgage rates, and slowing sales activity.

Yun shared his outlook for 2023 at 2022 NAR NXT, The Realtor , Orlando, Florida.

Yun stated that home prices have been stable in most areas of the country because there is very little inventory. Some areas are experiencing price increases, while others, most notably California, are seeing prices drop.”

Yun said that the market conditions today are fundamentally different from those during the Great Recession.

Yun stated that the housing inventory was only about 25% of 2008’s. Yun said that distressed property sales are nearly non-existent at 2% and not near the 30% mark during the housing crash. Because of the substantial price appreciation over the past two years, short sales are nearly impossible.”

Yun explained that the extraordinary rate at which mortgage rates rose in 2022, from 3% in Jan to around 7% today, has caused a downturn in housing market.

Yun stated that the decline in home sales and home construction has “brought down GDP.” GDP would be positive if the housing market were stabilizing and not falling.

Yun said that there are signs suggesting that mortgage rates will rise, especially since October’s consumer price index showed an inflation decline. However, he expressed concern over the spread between federal funds rates and mortgage rates.

Yun stated that the gap between the 30-year fixed rate mortgage rate and government borrowing rate today is larger than it was in the past. If there wasn’t this gap, mortgage rates would not be 7%. They would be 5.8%. Normal spreads would help revive the economy. If inflation is eliminated, we will see less anxiety in the financial markets, and lower interest rates which will allow owners to refinance.

Yun predicts that home sales will decline by 7% in 2023. However, the median national home price will rise by 1%. Some markets may experience price increases while others see price drops.

He projects a strong housing rebound in 2024 with a 10% increase in home sales and an additional 5% in the median home price.

The National Association of Realtors represents more than 1.5million members in America’s residential and commercial realty industries.

 

Original Blog: https://realtytimes.com/real-industry-news-articles/item/1045981-nar-s-lawrence-yun-predicts-us-home-prices-won-t-experience-major-decline-could-possibly-rise-slightly-in-2023-if-mortgage-rates-remain-at-7?rtmpage=

Loan Estimate

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After applying for a mortgage, you will receive a loan estimate. Lenders must give you a loan estimate within three days of receiving your application.

The loan estimate provides details about the loan that you are requesting. This form was created in 2015.

The information you get with a loan estimate may include the following: Monthly payments, estimated interest rates and total closing costs.

Information about insurance and taxes will be provided. You can also find out how interest rates and payments could change at any given time. You will also be informed about the special features of your loan through this form. It will inform you if your loan has a prepayment penalty. If applicable, the loan estimate will also include negative amortization. Even if your payments are on time, negative amortization can increase your mortgage loan balance.

The description of your loan product will include the negative amortization option.

As the title suggests, this document contains preliminary information that is not final. Although it is an estimate, it can help determine the loan you should apply for and make a commitment to.

Buyers will be provided with a loan estimate that includes prepaid interest, third-party fees and closing costs. The buyer will also receive a detailed estimate payment to get a full picture of the transaction’s costs. It is easy to compare and see the costs of different lenders as all will use the same document.

Lenders cannot hide fees with loan estimates, which can also be a useful comparison tool.

Lenders are required to give you a loan estimate within three business days after you submit your mortgage application. Before they can provide you with a loan estimate, lenders will need some information, such as your legal name, social security number and proof of income. They also require proof of desired property address, price, and loan amount.

You’ll find the following information in the first page and section of a loan estimate:

  • * The term of your loan is usually 30 years. However, other terms may be possible.
    * Product refers to the type of mortgage that you are applying for such as a fixed-rate mortgage or an adjustable-rate mortgage.
    * What loan type is it? For example, is it a conventional or VA loan? It could be an FHA loan or VA loan.
    * A rate lock is when your lender locks down the interest rate on your mortgage and the expiration date.

Information is provided in the second section.

  • * How much you can borrow and how it can be increased
    * The interest rate is a percentage and can be increased.
    * Monthly principal and interest is the monthly mortgage payment, excluding homeowners’ insurance and property taxes.
    * A prepayment penalty is a fee you may have to pay if your loan was not repaid by the due date or you made an additional payment.
    * If there is a balloon payment. This is a lump sum that you must pay at the end your loan term

Information is included in the third and fourth sections.

  • * Payment calculation: Breaking down your monthly mortgage payment, principal and interest, private Mortgage Insurance Premiums, if applicable, as well as escrow amounts
    * Monthly estimated payment
    * Estimated taxes and insurance.
    * Mortgage closing costs estimates
    * Cash to close is the estimated cash amount, which includes closing costs and any other charges you may have upfront

The second page of a loan estimation includes three major elements: loan costs, other charges, and cash to close.

The second page should focus on the origination fees and any fees that you will be charged for items you cannot shop for. These charges vary from one lender to the next, so it is important to compare them. Other charges are not subject to much variation between lenders. You can search for the services needed to close a mortgage. This includes how much they cost. You can’t shop services such as an appraisal or credit check.

The name of the loan officer or lender will be included on page three. This information is useful for comparing loan estimates. The first will show you how much of your loan principal your loan will pay off over the first five year. It’ll also show your annual percentage rate (APR), and total interest percentage.

It’s a great time to review your loan estimate and ask any questions that you may have.

 

Original Blog: https://realtytimes.com/archives/item/1045883-what-is-a-loan-estimate?rtmpage=

Signs You’re About to Make an Offer on the Wrong House

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Buyers today’s housing market can be difficult. Real estate inventory is very limited and home prices are still high. This means that buyers have to make compromises in order to buy a home of their choice.

Flexibleness is one thing, but it’s another. This could mean that you accept a smaller home than you expected or that you have to do some renovations.

There is no such thing as being too compromise when purchasing a home. These signs may indicate that you might not be able to offer on the property you are considering.

If you have a $350,000 home-buying budget, but find the perfect property for $360,000, then it is possible to get a great deal. You might argue that it is worth paying more for a home in such a situation.

If your initial budget is $350,000 you should not be willing to increase it to $400,000 or $425,000. This could lead to financial stress.

Your monthly housing costs should not exceed 30% of what you earn. This includes your mortgage payment and property taxes. If you find that you are spending more than your initial home-buying budget, it is best to hold off on the house you are considering and wait for a better deal.

It is common to purchase a home that needs work. There’s a big difference between making minor repairs and cosmetic changes to your home and having to completely gut it, replace major appliances, and upgrading all its electrical wiring. You might end up spending more money and doing more work if you consider the former.

You can renovate a kitchen that you have bought if it is outdated. You might also be able to expand a bathroom if your home has only one bathroom.

No amount of renovations can change the fact that you bought a home in a place you don’t like. If you value being close to a park, or having a walkable neighborhood, you might not be willing to compromise. If you have children and would like to live near a park, don’t offer to buy a house that is more than three miles from the closest one.

Flexibility is key in today’s tight housing market. However, don’t let this flexibility get too far. You might regret buying a home.

The mortgage rates are at their highest levels in many years and they will continue to rise. To get the best rate and minimize fees, it is important to compare rates with different lenders. A small change in your rate can make a huge difference in your monthly payments.

 

Original Blog: https://www.fool.com/the-ascent/mortgages/articles/3-signs-youre-about-to-make-an-offer-on-the-wrong-house/

The Process On Buying A Foreclosure

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Analysts predict that the number of foreclosures may rise. The housing market is healthy, but coronavirus shutdowns have had a significant impact on the economy. Unemployment remains high.

It’s essential to prepare for foreclosure if you are waiting to find a deal. Although many of the elements involved in buying a foreclosure home are the same as buying any other home you can simplify the process by being clear about what to expect.

There are two types of foreclosed houses. There are two types of foreclosed homes: bank-owned and real-estate-owned. In both cases, the lender is the owner of the properties. The main difference is in the stage of foreclosure.

The homeowner of a bank-owned home is in foreclosure. Their lender has taken steps to get them out. Bank-owned properties are often foreclosed and put up for auction. If the home does not sell at auction it is still bank-owned, but it is an REO. REO properties are those that have been at auction but are still not sold. They may be offered to the lender through their REO agents.

Foreclosures are often cheaper than comparable properties in the same area, and can sometimes be significantly more expensive. Many foreclosures sell for a fraction of their market value. A foreclosed house may offer other benefits, including lower interest rates and reduced down payments. You could also avoid closing costs and appraisal fees.

You may be able to find a deal for a distressed property that is not bank-owned.

There is, for example, the pre-foreclosure stage. The lender has informed the borrower that they are in default. However, if the homeowner is able to sell the property, it might be possible to avoid foreclosure proceedings. A lender will take less for a property than the mortgage if it is short-sold. A lender can approve a short sale even if you are in default.

You can also own properties that are government-owned. The federal government is the owner of a property that was purchased with a government-backed mortgage.

If you want to buy a foreclosure, the following are the steps to expect:

  1. Mortgage Preapproval
  2. Find an Agent Experienced in Foreclosures
  3. Make a Competitive Offer
  4. Get an Inspection

A foreclosure home purchase comes with many risks. You may not be aware of hidden costs or problems that exist in a foreclosed home. It can also be slow.

When buying a foreclosure, there is a lot to do. These properties are often difficult to sell because banks tend to take a long time to respond. If they have a lot of foreclosures backlog, they may take months to respond.

This doesn’t mean that buying a foreclosure is a bad idea. These are just some of the hurdles you should be aware of.

 

Original Blog: https://realtytimes.com/archives/item/1039976-what-s-the-process-to-buy-a-foreclosure?rtmpage=

USDA Loans Aren’t Just For Farmers

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You wouldn’t be alone in thinking USDA loans were only for rural farmers.

The program is accessible through the United States Department of Agricultural. The Rural Development (RD), which was initially called the Farmer’s Home Administration, administers the program.

Russell Hood, an originator of the Meriden-based company Planet Home Lending, stated that about half of those looking for a mortgage through Planet Home Lending don’t know anything about USDA loans.

It is worth taking the time to find out if you are eligible. You might be surprised at who qualifies. USDA loans can offer many advantages over other programs if you’re eligible.

Most people are aware that USDA mortgages are intended for rural residents. Many people think they won’t be eligible because they don’t consider themselves rural residents.

The definition of “rural” can change between different government programs. For USDA loans, however, “rural” can be a surprisingly low standard. It refers to any town, village or city with fewer then 20,000 inhabitants that isn’t located in a Metropolitan Statistical Area. An MSA is defined by the Census Bureau as a group of counties that surround a city with more than 50,000 inhabitants.

There is also some flexibility for fast-growing areas to remain eligible for “rural” status for a period beyond these points.

This means that 97% of America’s land mass is considered “rural” to qualify for a USDA loan. According to a report, 34% of Americans live in an area eligible. Even suburbs outside of major cities like the western part of Olympia, Washington’s capital, and parts Long Island, New York, are eligible.

USDA loans can also be very useful in helping people who otherwise wouldn’t be able to purchase a home. To be eligible for a USDA loan you must be not eligible for a conventional PMI free mortgage. You’d need to pay a minimum of 20% down payment in order to achieve this, which many people don’t find realistic.

One of the greatest benefits of USDA loans is the fact that you don’t have to make any down payments.

If you are eligible, one final reason to consider USDA loans is that they don’t have as much impact on your finances than other government-sponsored mortgage programs. It’s often a better option if the income and property meet the USDA standards.

The upfront funding fee for most government-backed mortgages is usually 1%. This is lower than the 1.4% to 3.6% charge for VA loans, and 1.75% for FHA loan. FHA loans have an additional fee of 0.45% to 1.5%.

USDA loans are often offered at lower rates. This is partly due to the way RD works together with lenders to provide USDA Guaranteed loans. This is a bad term as it does not guarantee you will get a loan. The USDA “guarantees” up to 90% loan amount. In other words, if you default on your loan, the USDA will reimburse your lender up to 90%.

Although this guarantee does not directly benefit you, it can make things more affordable for you. Lenders are almost guaranteed to recoup some costs in one way or another. This means they can pass lower rates on to you. That could result in significantly lower monthly payment with USDA loans.

USDA Direct loans are cheaper than conventional mortgages. The fixed rates for low-income and very low-income buyers were set at 3.25% as of October 2022. This is compared to 6.65% for a conventional loan. The average USDA loan cost $178,400 in 2021. This is $380 less than what you would pay if you borrowed conventionally.

 

Original Blog: https://finance.yahoo.com/news/zero-down-usda-mortgages-arent-100000653.html?guccounter=1&guce_referrer=aHR0cHM6Ly93cmVuZXdzLmNvbS8&guce_referrer_sig=AQAAAEMfd_s6cf9cnjRg0x12RmnucbOROcR906XA3ztVq5J9aer0l4bSUkxUFB1PFtF6tNXBmMtHZDwWjWCjGfjlYJZKBRyn1jXmUAqGA9qW95XW9lRqq1wR2LFGKnvTYJ2r3MZWVV0zD9OAkyxJbok30FkWB5tB8zeonGDjhM1ifUgf

 

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