Tag Archives: home buyers

Money Monday: Good news for home buyers

Incomes are finally rising faster than home prices.

Photo from Pictures of Money

Photo from Pictures of Money

“For the first time since 2011, incomes rose faster than home prices in the U.S., according to a new report from Zillow.

“The median home price climbed to $188,100 in August, a 5% increase from the same time a year ago.

“And last week, the Census Bureau reported that median household income increased to $56,516 in 2015, up 5.2% from 2014.”

CNN. “Here’s some good news for house hunters.” ¬†http://money.cnn.com/2016/09/22/real_estate/incomes-rise-faster-than-home-values

Read more of this article at CNN here.

Homebuyer Challenges

Potential homebuyers can face challenges to buying a home.

What difficulties to they face?

  • Saving for a down payment (need help on saving/not spending as much? Check out my Money Monday posts!)
  • Lack of houses for sale (real estate inventory)
  • Difficulty getting financing and credit
  • Personal debt (I have some tips in my past Money Monday posts!)

BuyerRoadblocks

 

This infographic is from the CALIFORNIA ASSOCIATION OF REALTORS at CAR.org.

Money Monday: Brexit and U.S. Homebuyers

Why Brexit is great news for U.S. homebuyers

“It’s now even cheaper to get a mortgage.

“The average rate of a 30-year fixed mortgage dropped to 3.48% — the lowest level since May 2013, according to Freddie Mac. A year ago, the rate was 4.08%.

“The drop comes in the wake of the U.K.’s decision to leave the European Union. The historic vote sent the yield on the U.S. 10-year Treasury, which serves as benchmark for consumer loans, tumbling to 1.45% this week…”

Read more of this article from CNN Money here: “Why Brexit is great news for U.S. homebuyers“.

Money Monday: 5 things homebuyers need to do

If you’re looking to purchase a home in the near future, start planning now on what you need to do before actually looking for a home.

buyers and sellers real estate disclosures

There’s a lot on your to-do list when it comes time to buy a home, but you can avoid making some big mistakes and hurdles by realizing these five helpful pieces of information (tips from the Bankrate’s helpful article here: “5 first-time homebuyer mistakes“):

  • Realize that you’ll be paying more than just mortgage payments
  • Get loan preapproval before starting the house hunt
  • Get professional help from a real estate agent (In San Diego County and don’t have a Realtor? Call me at (619) 890-3648!), loan agent, and perhaps a lawyer)
  • Don’t use all your savings on the down payment
  • Wait until you’ve officially closed to make any other big purchases

Bankrate’s article is full of many more details and information on these tips, so click over to their website and read their article here: “5 first-time homebuyer mistakes“.

Money Monday: 4 reasons 2016 is the year to buy a home

“If you’ve been on the fence about buying a home, 2016 is the year to take the plunge.Mortgage rates have been bouncing around record lows for a while now. But even though they’re likely to start going up, you haven’t missed your chance to get a deal on a house.

“A number of factors are coming together, making next year a good time to buy:”

1. Home prices will still go up, but should slow down

2. More homes will come onto the market 

3. Mortgage rates will go up

4. Rents will still be high

Read more of CNN.com’s article here: “4 reasons 2016 is the year to buy a home“.

Money Monday: Buying a home without a 20% down payment 

Are you thinking of buying a home, but don’t have 20% of the purchase price for a downpaynent?

That doesn’t necessarily mean that you’re out of luck. 
  

With the national average listing price for a four-bedroom, two-bathroom home at $302,632, according to Coldwell Banker Real Estate, home buyers need to come up with $60,526 to put 20% down.

A recent article from Money.CNN.com has some helpful ideas for hopeful homebuyers:

1. Apply for an FHA loan. These require as little as 3.5% down. 

2. See what your options are through the government. 

“The Department of Veteran’s Affairs guarantees VA home loans with 0% down to former and current service members… 

“The Department of Agriculture has a home loan program to increase homeownership in more rural and less-populated areas…

“Many cities and municipalities offer down payment assistance programs to help potential buyers…”

3. Ask family members for a loan.

4. Get the money as a gift 

5. Use retirement funds 

Read CNN’s full post on this here: “How to buy a home without a 20% down payment“.

Money Monday: Older buyers, more bathrooms

Today’s real estate market is a very different place than before the recession

home buildingAmerican home buyers are getting older and homes are getting bigger.

The median age of a homebuyer in 1985 was 35.

When the housing boom was nearing its peak in 2005, the median homebuyer’s age was 39. Now it’s 43, according to U.S. Census data.

Homebuilders are catering to more middle aged buyers by building larger homes.

Since 2000, the typical American home for sale had about 1,800 square feet. That’s remained fairly steady over time.

But new homes that are just being built typically have 2,200 square feet, according to an analysis by the National Association of Home Builders…

This article is from CNN Money. Read more at CNN Money here.

Location, Location, Location…

When it come to real estate anyone can tell you that three of the most important factors in where you buy a home are location, location, location. This is one of those terms that we hear all the time and which becomes especially salient as we are searching for our dream home.

All too often buyers will be caught up in the excitement of the home buying process and make an offer on a home that seems too good to be true. unfortunately, many times it does turn out that the “perfect home for the reasonable price” is too good to be true.

The reason is simple – location. Buying a home in the wrong location is going to have a dramatic impact on how happy you are in your new home and also on the value of your home when you decide to sell.

For this reason it is important that you do your homework beforehand and pick out possible neighborhoods that suit your lifestyle. At the same time, keep an eye on that future date when you might put your new home back on the market and pick a neighborhood that is know for good schools and well maintained public facilities.

Once you have narrowed down the neighborhoods, visit the neighborhood and pick the best house available.

You’ll be happier in the end if you plan well in the beginning.