I just wanted to let you know that the House has voted overwhelmingly to extend the 1st time home buyer credit through April 30, 2010. All ratified contracts will have 60 days to close. There are some slight tweaks that were made with the extension of this programs but all in all it's a good thing and will hopefully keep things moving along in the housing market.
Please check my facebook page which has links to more information concerning this and other related topics.
I am pleased as well as just about everyone except the 12 who voted against the bills' extention. I just wonder where these people are from and why they were in opposition to it. Obviously I'm a bit biased because my lifeline is hanging in the balance but in all due respect this shouldn't have even been a concern.
Most of the people who are finding the opportunity to buy are doing so because it just makes good sense and that with rental rates moving up, the cost of home ownership has become too attractive. What I find is that these are the people who are not planning on appreciation but just see the value of investing in their future and realizing that they too can take advantage of tax advantages which home ownership offers.
Thursday, November 5, 2009
Sunday, October 25, 2009
Is it the right time to buy?
It all depends. If you are planning on staying in your home for at least 5-7 years I would say definitely yes. However if you are planning to stay for less than 5 years most likely not.
That was simple wasn't it? Even with the first time homebuyer credit of $8000?
Many people who I speak with feel that the worst is behind us and they do not want to miss out particularly because they feel it will be more expensive to buy in the future. Although that may be true in many places, I feel that Real Estate will still be attractive from a living perspective given my that you see it as a place to either live for the next 5-7 years or if you are investing but plan on having it cash flow and hold it long enough that you now can take advantage of appreciation.
Personally, I don't see appreciation really being a factor for the next 5 years, even with inventory starting to thin out a bit.
However if you are a little better off and bought your home before 2000, you probably have enough equity to have more flexibility in what you want to do. In addition if you are seeking to move up you will most likely get a very favorable deal, however, you most likely will not receive what you think you house it worth.
Things which should be remembered when the eventual real estate resurgent occurs; An increasing number of people are moving to the city (more than ever before). The population continues to grow. Land is much less available in the urban areas and their is much more re-vitalization and much gentrification occurring these days. Baby boomers are downsizing and are willing to pay for the amenities which comes with living closer in. So the long range prospects of property value are solid, however until we get through downsizing some of the inventory and have more stability in our job market and economy in general, I really can't see a reason why you have to buy know just so you don't miss out on the tax credit.
Although it is a nice incentive, you still need at least $10500 into the deal as well as closing costs on a $300,000 home. What this means is that without closing cost assistance you are looking at roughly another $10,000 for a total most likely greater than $20,000.
All in all it is a good time to buy but by no means should you reliquish your dream even if you can't take advantage of the tax credit. For more insight, information or questions concerning qualifying for a residential mortgage, please contact me via email at dviertels@gmail.com
That was simple wasn't it? Even with the first time homebuyer credit of $8000?
Many people who I speak with feel that the worst is behind us and they do not want to miss out particularly because they feel it will be more expensive to buy in the future. Although that may be true in many places, I feel that Real Estate will still be attractive from a living perspective given my that you see it as a place to either live for the next 5-7 years or if you are investing but plan on having it cash flow and hold it long enough that you now can take advantage of appreciation.
Personally, I don't see appreciation really being a factor for the next 5 years, even with inventory starting to thin out a bit.
However if you are a little better off and bought your home before 2000, you probably have enough equity to have more flexibility in what you want to do. In addition if you are seeking to move up you will most likely get a very favorable deal, however, you most likely will not receive what you think you house it worth.
Things which should be remembered when the eventual real estate resurgent occurs; An increasing number of people are moving to the city (more than ever before). The population continues to grow. Land is much less available in the urban areas and their is much more re-vitalization and much gentrification occurring these days. Baby boomers are downsizing and are willing to pay for the amenities which comes with living closer in. So the long range prospects of property value are solid, however until we get through downsizing some of the inventory and have more stability in our job market and economy in general, I really can't see a reason why you have to buy know just so you don't miss out on the tax credit.
Although it is a nice incentive, you still need at least $10500 into the deal as well as closing costs on a $300,000 home. What this means is that without closing cost assistance you are looking at roughly another $10,000 for a total most likely greater than $20,000.
All in all it is a good time to buy but by no means should you reliquish your dream even if you can't take advantage of the tax credit. For more insight, information or questions concerning qualifying for a residential mortgage, please contact me via email at dviertels@gmail.com
Tuesday, August 18, 2009
Changes in RESPA - New GFE & TIL requirements
There are some changes which occurred back in July. RESPA has mandated that if the Truth in Lending Annual Percetage Rate is more than .25 of a percent higher than the actual interest rate, the information needs to be redisclosed to the borrower at least 7 days before settlement date.
For many of us lenders who try to disclose completely because we know that it is not only the right thing to do but it is something which actually allows us to educate our borrowers we see this as another opportunity in helping us differeniate ourselves from our competition.
Because there are many things which we as lenders don't control that go into the APR, it is increasingly difficult for us not to fudge and factor in higher costs than what there will actually be.
I would like to take this opportunity to invite anyone who is in the midst of buying or refinancing to send me their good faith and til's to see whether it is in compliance. Should you require my assistance, I will be happy to provide it.
For many of us lenders who try to disclose completely because we know that it is not only the right thing to do but it is something which actually allows us to educate our borrowers we see this as another opportunity in helping us differeniate ourselves from our competition.
Because there are many things which we as lenders don't control that go into the APR, it is increasingly difficult for us not to fudge and factor in higher costs than what there will actually be.
I would like to take this opportunity to invite anyone who is in the midst of buying or refinancing to send me their good faith and til's to see whether it is in compliance. Should you require my assistance, I will be happy to provide it.
Subscribe to:
Posts (Atom)
