The housing market is inevitable with changes. Rotating figures and inconsistencies are hard to stay abreast. We have done the research for you and offer the latest trends in real estate no matter whether you are a buyer or seller.
June is proving to be a standstill month. Ready buyers took advantage of low interest rates and bought available homes in May which recorded the highest number of listings in four years. But times are changing. Now there are few homes on the market.
And once eager buyers are now stalling. Homes sold were down 10 percent. The low inventory of homes has frustrated geared up buyers. With fewer homes on the market buyers are not as keen to dig deep in their pockets. They are either sullen with high prices or too tired to keep looking.
Home prices are stabilizing since the peak in 2012 when they were increasing on average of 20 percent. This is good news for buyers. Across the country the housing market is shifting from a sellers? market. Buyers have more power and less competition. Of course this varies region to region. In Los Angeles, for example, the market has shifted to favor buyers where they are able to find their home and have their offer accepted too.
More district incentives need implementing. The solution is job expansions, higher wages, and inventory increases to attract traditional buyers.
Title insurance is your defense against mortgage lenders and their haphazard approach to the foreclosure process. Even though title insurance is required by mortgage lenders, various title insurance companies are reevaluating their practices to cover foreclosed homes.
Title insurance is complex especially regarding the rules and regulations as a foreclosure owner or consumer. Here are six helpful questions to ask about title insurance.
1. What is title insurance?
Title insurance is an indemnity policy to protect home owners and mortgage lenders against loss due to title damages or legal claims on property.
There are two types of title insurance. As a property owner, title insurance is referred to as an Owner?s policy. As a mortgage lender, title insurance is referenced as a Loan Policy.
2. How does title insurance protect me?
Owner?s Policy protects the property owner and is issued in the amount of the real estate purchase.
Lenders Policy defends the mortgage lender and is based on the dollar amount of the mortgage loan. As the loan is paid off, the lender policy amount decreases.
Title insurance for a home owner protects against any discrepancies such as:
? Mistakes or oversights in any legalities
? Errors in investigative records
? Falsifications
? Undisclosed successors
3. What are the foreclosure protections?
An owner with title insurance has a defense against defective foreclosures. Title Insurance companies have the duty and obligation to defend you in court. If the records detailing the title are inaccurate, the title company must defend the title in court regardless of mistakes made by previous mortgage service providers.
As a foreclosure consumer, it is important to ask the title insurer for a specified endorsement stating that the insurer will pay the insured’s defense costs for any legality of the foreclosure should a lawsuit occur.
4. Will I be able to get title insurance?
There is discrepancy whether homebuyers who purchase a foreclosure can obtain title insurance. It depends if you’re buying from a bank or through a courthouse. Title insurance companies are relying on banks to provide indemnification to the title insurance company.
5. What are the risks when buying a foreclosure?
There are two ways to purchase a foreclosure. One is through the judicial system and the other is from the foreclosing lender, also known as Real Estate Owned (REO).
An REO sale is similar to the traditional buying process, except the home has gone through foreclosure. A courthouse foreclosure sale is riskier than an REO sale when it comes to securing title insurance.
It is harder to have title insurance already in place before buying the property because it goes through the auctioning process. Coverage may not be available if there is a problem with the title search.
It is much better to purchase title insurance as REO than through the judicial process. The risk is taken out and title insurance is easily obtainable.
6. Are there concerns having purchased a foreclosure?
It is not necessary to worry if you purchased a foreclosure. Experts agree that courts will not start handing homes back to former owners as a result of flawed foreclosure issues. There could, however, be claims.
An owner’s policy is useful when former owners claim they have some unrecorded equity remaining in the house. A good faith purchase will most likely be honored in the court system. As the new owner, the judge will make sure you keep your money and remain in your home. The only incident that would justify returning the home to the previous owner is fraud. Even in such extreme cases, a legitimate purchase should be restored to their site before the deal.
Having title insurance is a must especially when purchasing a foreclosure. In the home buying process, make sure you have a copy of your title insurance policy and carefully read through the document. Pay special attention to Schedule B which explains what is not covered by the title company.
No matter how large or small your home remodeling project, you?re likely to hit a few bumps and challenges along the way. From product delays and equipment breakdowns to insufficient paperwork and insurance, the unexpected snafus can delay your home remodeling project. The following are important tips to help minimize problems. Solidify Contracts
Before you begin your remodeling project, you want to put together details to ensure a successful outcome. In addition to discussing your ideas with the contractor, you should have everything put down in writing. This should also include rules specific to the workers such as timelines, breaks, clean up and storing the equipment and materials on site.
Overseer
If you have concerns throughout the duration of the project, you need to have a contact person who oversees the entire remodel. This person should be able to handle everything from calls to your local village to making sure the budget is being adhered to. This general contractor should also have a primary homeowner to report to. This will avoid future confusion when decisions need to be made quickly.
Adapt to Chaos
Your life is going to be turned upside down throughout the duration of the remodel, and you have to learn how to adapt. The daily rituals you once followed are going to be replaced with noise, obnoxious odors and workers coming and going. You need to find a way for your family to detox and relieve stress throughout this chaotic time.
Paperwork
While the contracts, permits and proper homeowners insurance may seem mind numbingly boring, you?ll find the paperwork to be the most important part of your remodel. Having a licensed, certified and bonded contractor can keep you protected in the event of an accident or injury. Your local village hall will also require permits to be filed before starting any home remodel project. While your contractor?s liability insurance can protect them in the event of a fall, your homeowner?s insurance can be of vital importance if you have friends and family members helping with the project.
Keep yourself aware of the possible mishaps that may come along the way of your re-modeling project and with the proper precaution, you may be able to avoid them completely!
Out of all of a homeowner?s monthly expenses, the mortgage payment is often the largest. Many buyers (naturally) accept this fact, but because of this acceptance, many of them also don?t take the time to shop around or research in order to find the best deal. The result is that these homebuyers may end up paying more than they should for their home. Below we discuss some of the main mistakes that people make when looking for and taking out a mortgage, with the hopes that you will be able to avoid these pitfalls and save money too.
Mistake 1: Seeing loan rates that are advertised and thinking that that is what your rate will be
Loan rates that are advertised are the rock bottom rates, and, the thing is, the average person won?t typically be able to get these rates. You would basically need to have perfect credit in order to get the rates that are advertised, or you would have to put down a large amount of money in order to get close.
Lenders will go through every aspect of your credit looking for anything that could raise your rate, which puts you further from that lowest rate.
Mistake 2: Going with the first lender and not comparing them to others
Another big mistake people make too often is to not shop around. As with any other type of loan, the lender will only allow for certain rates to be given out, and some companies offer better rates than others? When you talk to a broker and are prequalified, the broker should begin to shop around for you to find the best deals from different lenders.
Mistake 3: Agreeing to terms you haven?t thoroughly read through
Make sure you carefully read through those terms!
The rates that are advertised are not the rates you?ll be paying. Within the terms of your loan, the annual percentage rate, or APR, will be listed. This is the rate that you will be paying, and it often includes other fees.
Understanding the different terms of your loan can be difficult, especially since there are a number of fees that a lender may add to your mortgage. You should keep an eye out for processing fees, charges for pulling your credit, and charges for the appraisal.
Ensure that you read through all of the terms and ask what the different fees are for. You should also verify whether or not any of the fees can be reduced or possibly eliminated.
Mistake 4: Choosing to wait for a lower rate
Some people believe that it?s a good idea to hold out for the lowest possible rate. But no?this is not a good idea. This mistake can come with consequences that may include losing out on the home upon which your heart is set. It?s also important to remember that no matter what rate you get, you still will have to spend thousands of dollars on just the interest before you begin to gain any equity.
Don?t worry so much about the rate now. If rates begin to drop years down the road, you can also always refinance.
If you wait too long for rates to go down, your dream home may not wait around for you.
Mistake 5: Choosing a loan that isn?t right for you?
When choosing your loan, you should consider the conditions of the market and the number of years you?re planning on living in your home. You should not choose your loan solely based on the cost of the home you?re planning to buy.
The way the market is now, the most favorable type of loan is the fixed-rate loan. With one of these, you won?t have to worry about the state of the market. But this is also typically not the best kind of loan to be taken out by those who won?t be in the home for at least five years, as it often takes at least five years to begin to get your closing costs back in equity.
Finding the best mortgage for you can be tricky, but by putting in a little extra consideration and effort, you should be able to find one that will help you accomplish your goals while avoiding the mortgage mistakes discussed above.
Purchasing a home can be an exciting time, and that excitement often continues once you?ve moved in. Whether you choose to install a custom vanity in the bathroom or to add an in-ground pool to your backyard, it?s usually downright fun to customize your home to meet your specific tastes and needs.
However, once you?re ready to sell you home and move on to something different, you may be expecting to get your money back for all of the time and funds you spent to improve your home. Many homeowners actually assume that the improvements they made will automatically result in a higher asking price, but this is certainly not true of all renovation decisions.
In reality, your home is probably not worth what you paid for it or even how much you still owe on it. And if you try to set the asking price based on how much money you need to make, you?re setting yourself up for a boatload of frustration. A quality realtor, though, should be able to help you set an asking price based on neighborhood comps and other factual data that determine how much your property is actually worth.
When you move into your next home, keep the following tips in mind to make beautiful and wise improvements that don?t bite you when it?s time to sell.
1. Set Your Budget
Budgeting may not be the most enjoyable part of the improvement process, but it certainly is a vital first step. Before you start dreaming big and shopping, determine exactly how much you are able to spend on each project. Make sure to add at least 10% extra onto your budge to cover unexpected costs.
2. Make Wise Decisions
It?s fun to dream about a restaurant-quality kitchen or a master bathroom that feels like an upscale spa. In general, kitchen and bathroom renovations do offer the best bang for your buck, but it?s still important to stick to your budget and to choose neutral finishes that accommodate almost every taste.
Neutral renovations can help your home sell.
3. Determine Your Priorities
Unless you?re dealing with an unlimited budget, you?re going to have to make some tough decisions about how you spend your funds. If cooking is your passion, you might have your heart set that line of appliances. But in order to accommodate this expense, it may be smart to go with less expensive kitchen cabinets and flooring.
4. Shop Smart
You can save big by searching more than one store before you make your purchases. Look for sales and special offers, and don?t be afraid to ask for discounts. In addition, scratch and dent or open box merchandise can offer great savings.
So, your home may not have the same value when you sell it as when you bought it. However, if you keep the tips discussed above in mind, hopefully you won’t be dealing with sunk costs come sale time–especially if you consider how the improvements you’ve made to your home may have positively impacted your life while living there.
Most of the time, a lot more than monetary value goes into home improvements
Many homeowners are delighted to find an affordable home on a bank foreclosure list. They make a reasonable offer but are dismayed when the bank sends them back a counteroffer. This practice is all too common and is one that potential buyers should be aware of.
Understanding the Counteroffer
A bank?s counteroffer is similar to one from an individual buyer. The main difference is that a bank?s offer contains pages of fine print and clauses. It essentially voids the buyer?s initial offer and suggests news terms instead. Some of the main points are the price they are willing to accept for the home and if they will pay any closing fees. One of the most important items is the closing date they are imposing. Unlike individual sellers who usually come to a mutual agreement on a closing date, banks impose them. They will also charge buyers a fee if they don?t close by that date.
Buyers Beware
Banks are corporations and many have their own legal team. Buyers should read every word of an offer to ensure that the bank hasn?t completely changed the terms of the initial agreement. Many buyers look only for the price and skip the rest, which is a big mistake. Bank offers often contain terms that are not in the best benefit of the buyer. Some may restrict the type of loan a buyer can get. This may disqualify the buyer from obtaining low or no interest loans. In addition, banks may require that buyers get pre-certified with them as a way to obtain more personal information.
Items that Banks Won?t Pay For
There are some other red flags to look for when buying a home from a bank. The offer may include a number of pages that protect the bank from anything that is wrong with the house. If the home has a mold problem or a structural issue, the bank isn?t going to pay for it. In addition, many banks won?t pay to clear a home?s title. So, if the previous owner owed property taxes or homeowner association fees, there may be a lien on the house. In order to purchase it, someone must pay the money, but it won?t be the bank.
The Decision is Yours
Each buyer has to decide whether they can accept the terms of the bank?s offer. If a buyer does decide to accept it, they should have the document carefully reviewed by a qualified real estate professional first. Remember that the document is binding and can?t be undone.
Many people?you may be one of them?have a dream of buying a home, but they simply don’t know how they?ll be able to get a payment scraped together or how they can ensure their credit rating will be high enough to qualify for a loan. Fortunately, however, there are more options for people than you might initially realize.
Often, people think that they may not qualify for the options discussed below. However, with a little work put into certain key areas, coupled with patience, home ownership is well within more people?s grasp than you may think. The following areas are important to consider when taking home ownership from dream to reality.
With the right key moves, the dream can be within reach!Credit
Credit is a huge issue for many people, and it also seems to require more patience than other factors. For instance, a person?s credit score may seem like something that you just can?t control. But understanding the way the process works can shine some more light on what you can do, and that?s incredibly important.
The three major credit-reporting bodies are Experian, TransUnion, and Equifax. It?s the median of the three reports that is generally used when applying for credit, and the higher the median score, the better. Usually, a score of around 620 is the base for getting accepted for FHA loans.
The key here is to know what?s on your report. By thoroughly going through your report, you may find important hidden errors to fix. It?s also important to fix or improve other personal finances when necessary. But make sure too that you work with a lending professional that is experienced in the field, because dealing with a credit report can often be too complex to do alone.
Don’t despair!
Down Payment
Property isn?t cheap, and a down payment isn?t either. Conventional loans through financial institutions usually require somewhere around 5% of the sell price. But there are also FHA loans that are available for as low as 3.5%! Different states have different programs as well (all can be found listed on the U.S. Department of Housing and Rural Development website). Again, make sure you work with a lending professional that is knowledgeable about this area. Even no-down payment options are out there! Remember, the lender wants the house to sell too, so he or she should be in your corner.
Closing Costs
Closing costs are often just an afterthought for buyers, but they can actually amount to a substantial amount of money when all is said and done. Once again, working with the right lender can make all the difference here. Often, down payment funds can also work in your favor to be usable as closing cost funds as well.
So, to conclude, there are a lot of ways to make this work out, but the most important consideration for any buyer to make is to choose your lender wisely. Run, don?t walk from any lender that isn?t willing to help you find assistance or who isn?t knowledgeable themselves. Getting the right help you need can be invaluable when you want to buy a home.
Is your home ready to attract the serious buyers?you know, those who are already represented by an experienced real estate agent and who have taken the step of being pre-qualified for a loan so as to be able to make a quick offer when the right opportunity comes along? Attracting this sort of buyer should be your mission if your house is on the market; what you don?t need is the attention of the ?just looking? sort of quasi-buyer that tours open houses for Sunday entertainment. Employing the right real estate agent can actually be very helpful when encouraging the serious buyer.
What attracts a qualified and serious buyer?
Your main competition for the attention of the serious buyer you want are the other homes for sale in your neighborhood and the new housing developments that can lure home shoppers with shiny new construction and a host of exclusive amenities. However, keep in mind that buyers nowadays also want more than ever to have value for the money they invest. Consult with your agent to ensure that your sales price is realistic for market conditions.
The best way to attract serious buyers, actually, is to present a home that?s already in move-in condition. Doing so makes it easier for your agent to market your property to buyers who are seriously seeking a new home. Unclutter the rooms so they look more spacious, and fix anything that?s broken. A fresh bit of paint and flowers can easily increase curb appeal as well. Additionally, make sure to depersonalize your living space so that potential buyers who are serious about purchase can easily visualize themselves living there. Any extra touches you can add really do make a difference, whether there?s a recently remodeled kitchen or some new appliances to sweeten the deal.
Setting the Stage
Hiring an agent that uses effective tactics for marketing your home can attract more serious buyers while deterring the ?just looking? time wasters. For example, your agent can make exciting online presentations that offer appealing photographs, information about amenities, data about local schools, and special features that will make serious buyers want to book an appointment.
Insist that your real estate agent separate serious buyers from the less serious sort at any scheduled open house by verifying identification. The? ?just looking? crowd won’t want to provide contact information and shouldn’t be admitted to wander around your house.
By using savvy marketing techniques, along with smart staging techniques, your home should be ready for rapid sale at the best price to a home buyer that is qualified and ready to go.
Do you think you may be paying too much for your homeowners insurance? In truth, you probably are, but not for the reasons you?d first think.
A lot of the time when an individual tries to lessen the amount they owe for homeowners insurance, the first action taken is to alter their plan, lowering coverage and upping deductibles.
Don?t do this!!!
Really, changing your coverage can cause a whole lot of pain should an actual disaster strike. It?s actually much more important to spend a good deal of care and consideration in picking a quality insurance plan and finding an insurance broker and agency that you feel like you can trust. Then, take time to peruse and compare. Frontloading the effort with regards to homeowners insurance can save you money in the long run without putting you at unnecessary risk.
Good communication with an insurance agent you can trust is key!
Below we discuss some more tips that can help you keep homeowners insurance costs down, without dropping important bits of coverage.
? Make sure that your plan does not cover your land. Sometimes land may be covered by your policy inherently, but when you think about it, the disasters you want covered just have to do with the physical house itself. If you take the land part out of your policy, you can save. Make sure you double-check the finer points of your policy with your insurance agent.
? Be proactive when it comes to seeking out discounts. They certainly aren?t going to come to you unsought! The first step here is just to ask. The second is to do your research and then ask again. Many people are actually unaware that their insurance provider will provide discounts should certain steps be taken to protect the home, like the installation of an alarm system.
? Combine your homeowners and car insurance policies?there may be some discounts to be found here too! It?s in this case that it?s more important to make sure you select an insurance provider that you both like and trust.
? Know your policy through and through. Your insurance agent should be more than happy to sit down with you to discuss all finer points and specifics of your policy (if they don?t, maybe it?s time to look for someone new?). Make sure to ask about loopholes, particularly one regarding ?natural acts of God.?
Make sure you consider all possibilities.
Homeowners insurance, while it may seem a bit banal, can also take up a good part of your monthly budget. But it certainly is nice to know that there are some steps you can take to lessen the burden! Going about the policy issuance and choice-making meticulously, or at least with a lot of clear communication with your insurance broker, can make all the difference.
Buying your first house is most likely the largest and most nerve-wracking transaction of your life.? From getting approved for a mortgage loan to searching for a place that feels like home, purchasing a residence is stressful.
Here are 4 tips for first-time home buyers to help you avoid common pitfalls in house hunting.
Evaluate Your Lifestyle
Are you ready? ?Do you have stable income? ?What are your current monthly expenses?? Are you willing to stay put for awhile?? Are you prepared to tackle home maintenance and repairs?
Until you’re ready to buy a house, you’re probably better off renting. ?Your age or current housing market trends don?t matter.? ?The American dream becomes a nightmare if you purchase a house before you are ready.
Set a Budget
Have you scoped your neighborhood? ?Have you considered other locations to look at and compare prices?
Begin the process by examining your area for houses for sale.? This gives a good idea of how much bang you get for your buck.? It is difficult to determine if you are getting a good deal unless you know the local market.
Use an online mortgage calculator to compute possible monthly payments. Set a realistic budget so that you will not end up “house poor” and unable to meet other financial obligations.
Distinguish Needs from Wants
Can you afford the features and benefits you want in a home?? Can you manage to pay for your ideal location?? Are you willing to compromise to meet your budget?? You may want a spare bedroom, but how much extra are you willing to pay for it?
Make a wish list and determine which features are most important to you. Is it space or location? Is a big yard a necessity or a luxury?
Keep an Open Mind
How open are you toward making cosmetic changes?
Don’t turn up your nose at a great house because the paint color is hideous or the carpet is ugly. These things are easy fixes, so don’t let them keep you from seeing the house of your dreams.
Purchasing your first home is intimidating but it doesn?t have to be as stressful with proper planning and evaluating. Keeping these helpful tips in mind, will ensure purchasing a new residence won?t be as daunting.
The housing market is inevitable with changes. Rotating figures and inconsistencies are hard to stay abreast. We have done the research for you and offer the latest trends in real estate no matter whether you are a buyer or seller.
Many homeowners are delighted to find an affordable home on a bank foreclosure list. They make a reasonable offer but are dismayed when the bank sends them back a counteroffer. This practice is all too common and is one that potential buyers should be aware of.
