Tag Archives: homebuying

Money Monday: Homebuying myths you need to avoid

Don’t fall for these 6 homebuying myths

home buying

“Buying a home is one of the biggest financial decisions you will make, and you’ll likely need to do a lot of planning and research before you take the leap. But don’t get snagged by misconceptions. Mortgage expert Tim Manni busts these six common real estate myths to help you find — and afford — your first home.”

  1. Your credit score is “good enough” to buy a home
  2. Loan pre-approval determines your price range
  3. Your home purchase is non-negotiable

Read the three other homebuying myths here, on Yahoo’s personal finance page: “Don’t fall for these 6 homebuying myths.”

 

Tech-Smart Homebuyers

Real estate home buyers out there are becoming more and more tech-savvy.

Tech Smart Home Buyers

What do buyers use technology for when shopping for a home?

  • Reading real estate agent profiles
  • Using online real estate resources
  • Sending documents to lenders (and once in the transaction process, back-and-forth to their agent)
  • Looking at neighborhood maps
  • Browsing active real estate listings (<–click to do your own personal home search!)
  • What do you use the Internet for in the home-buying process?

Avoiding Common Mortgage Mistakes

There is no doubt that the mortgage process can be an intimidating and confusing process for the uninitiated. Let’s look at the situation: you are putting yourself into debt for the next 15-30 years, signing stacks of paperwork, and learning about new fees every day. In such a stressful environment it easy to make mistakes and the worst part is that you might never even know that you made a mistake.

In order to make sure that you do not pay for that one mistake over the next 30 years it is important to do your homework and gain an understanding of the mortgage process. Below you will find a list of some of the more common mistakes that mortgage brokers and lenders see every day.

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Lenders loosening requirements for home buyers

lending ratesOnline mortgage originator LendingTree’s monthly Credit Accessibility Report shows the average accessibility score for U.S. borrowers rose from 103 to 106 between July and August, indicating that borrowers had easier access to mortgage credit.

The Credit Accessibility score is benchmarked at 100, using data from the full year of 2012, which is where it stood in June.

In what might be good news for Realtors but bad news for lenders, purchase loans will soon account for a bigger piece of the mortgage loan origination pie than refinancings, a recent report by Ellie Mae suggests. As mortgage rates rise and the refi boom cools, lenders may get more aggressive about competing for business from homebuyers, loosening their underwriting standards in the process.

As home prices rise, refinance activity slows and government programs change, potential borrowers are, in fact, finding it easier to gain access to credit, LendingTree CEO Doug Lebda said in a statement. That’s because lenders are easing up on down payment and credit score requirements, while still adhering to conforming loan guidelines.

As private securitizations of mortgages not backed by the government start to bounce back, “borrowers who didn’t qualify in the past may now have that opportunity,” Lebda said.

Demand for homes stays strong during the fall

“Homebuying activity typically takes a breather come autumn but apparently not this year.

Sales of all types of homes in San Diego County rose nearly 13 percent from September to October to 3,622, real estate tracker DataQuick said Tuesday.

That activity is unprecedented because the number of transactions typically drops substantially or rises at a relatively modest rate between those near-holiday months. In fact, the closest September-to-October percentage jump was recorded in 2007, at 8.1 percent, DataQuick numbers show.

As sales continued to heat up, the median price for a home sold in October remained at a 4-year high of $350,000. Prices have either risen or stayed flat for the past nine straight months. Compared to the same time a year ago, prices rose more than 11 percent.

“Watching the market rebalance itself is fascinating,” said DataQuick President John Walsh. “In some categories and in some neighborhoods, demand outstrips supply, pushing up prices. In other areas, the market is still largely dormant. Low interest rates are a huge factor, where mortgages are available, which they aren’t for a lot of potential buyers.”

A key challenge for potential buyers of certain neighborhoods remains lack of inventory. An October snapshot of listings put the county at roughly 5,300, which is about half of what we saw the same time a year ago.

This has caused buyers…”

Read more of this article by U~T San Diego here: “Demand for homes stays strong during the fall”.

Is the San Diego real estate market heating up?

Is the spring homebuying season heating up?

Last month, San Diego County saw its highest home-sale count for a March month since 2006 as it entered another spring home-buying season, Tuesday’s numbers from DataQuick show.

A total of 3,237 homes were sold in March, up 19.5 percent from February and up nearly 6 percent from a year ago. Big percentage bumps are natural from February to March throughout Southern California, historical records show, but it appears this is the best March San Diego County has seen in six years, when a total of 4,367 homes were sold.

Improvement aside, sales are still far below from pre-recession levels. The current housing cycle’s peak was 6,926 transactions in June 2004.

“The year is young and lots could still change,” said DataQuick John Walsh in the company’s latest Southern California report. “But the results from the first big sales month of 2012 suggest the market is stuck in low gear. This remains a very gradual – not to mention fragile – recovery.”

Sales saw the most oomph in the markets of single-family resales and new properties, in which tallies increased almost 10 percent and 27 percent, respectively, from a year ago. However, both submarkets saw their values in March fall from a year ago. Prices for single-family resales dropped 4.2 percent to $350,000, and almost 26 percent to $392,000 in the new-home market…

Read the rest of this article by U~T San Diego’s Lily Leung here: “Is the spring homebuying season heating up?