For loans up to $729,000 the rate is: 4.75%

These are great rates, and they won’t last forever.  It’s time to upgrade yourself.  So contact me today about buying a new home.

Generally, lenders order a low-cost electronic valuation—based on publicly available statistical data—to review the accuracy of the information submitted by the appraiser. If there is a discrepancy between the electronic valuation and the appraiser’s report, the lender’s underwriters may reduce the appraisal figure.

 ~ Barry Ripp

From:  Calif. Assoc. of Realtors & LA Times

2. Start by shoring up your credit
Since you probably will need to get a mortgage to buy a house; you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Choose carefully between points and rate
When picking a mortgage, you usually have the option of paying additional points- a portion of the interest that you pay at closing- in exchange for a lower interest rate. If you stay in the house for a long time- say three to five years or more- it’s usually a better deal to take the points. The lower interest rate will save you more in the long run.

4. Hire a home inspector
A home inspector can let you know about potential problems. At best, you can move into the house confident that it’s in good shape; at worst, the inspector’s report can let you back out of the deal if the house has major problems. Most typically, the home inspection can allow you to negotiate the home price to account for necessary repairs.

5. Get professional help
Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an experienced agent, who will have your interests at heart and can help you with strategies during the bidding process.

6. Bonus Tip: Be patient
Buying a home is one of the largest purchases most people will make in their lifetime. The key to avoiding buyer’s remorse is to be completely comfortable before signing on the dotted line.

For example; small employers are considered to have fewer than 25 full-time equivalent (FTE) employees paying wages averaging less than $50,000 per employee per year. However, because the eligibility formula is based in part on the number of FTEs, not the number of employees, many businesses will qualify even if they employ more than 25 individual workers.

The maximum credit is 35 percent of premiums paid in 2010 by eligible small business employers. Eligible small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011. For tax-exempt employers, the IRS will provide further information on how to claim the credit.

The survey revealed that homeowners and renters alike are taking a more cautious approach to homeownership. 23% renters polled said they will buy a home later than once planned. In addition, Americans with traditional, fixed-rate mortgages with predictable payments are significantly more satisfied than those with other types of mortgages. Respondents cited non-financial reasons such as safety (43 percent) and quality of local schools (33 percent) as driving factors in wanting to own a home, ahead of financial considerations.

60 percent of consumers believe that buying a home today is harder than it was for their parents, and 68 percent think it will be even more difficult for their children. 88 percent also believe that walking away from an underwater mortgage is not acceptable.

 ~ Barry Ripp    www.barryripp.com

“Household spending is expanding at a moderate rate, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software has risen significantly,” the Fed said.  “However, investment in nonresidential structures is declining, housing starts have been flat at a depressed level, and employers remain reluctant to add to payrolls. 

“While bank lending continues to shrink, financial market conditions remain supportive of economic growth. Although the pace of economic recovery is likely to be moderate for a time, the Committee anticipates a gradual return to higher levels” the Fed said.

The Fed also said it would end its program of purchasing mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac to help keep home loan rates low. That program will conclude at the end of this month when the Fed’s mortgage bond holdings reach the $1.25-trillion limit it set last year.

A good score can mean a lot when it comes to your interest rate for car loans and home loans.

One key to keeping a good credit score is a combination of continuing to use your credit responsibly and paying down balances as soon as you can. I think it’s better to pay your credit cards off each month to avoid paying the high interest.  So don’t buy more than you can afford to pay off.

To make sure you don’t have any credit errors, check your own credit at least once a year. You can get a free report from each of the three credit reporting agencies.

For a free copy of your credit report from all three agencies, you can visit: www.annualcreditreport.com  They will ask several questions to insure security and also ask you to pay for an upgraded report, but a free report is available.

I hope you find this information helpful. I feel we all need to be more careful about using credit. But credit can be a useful tool when we need it.

 ~ Barry

When lenders do not receive payments, the first action taken by the lender is to report the missed payment to the credit bureaus by the first day of the next month.  Sometimes this can happen in as little as two weeks from the due date, depending on when the payment is due.  Generally, this action will leave a negative mark on a credit report and decrease the homeowner’s credit score by as much as 200 points.

Because of the negative mark on the homeowner’s credit report, within the next 30 days, homeowners can expect their other creditors to take note of the late payment and to take action.  Credit card issuers may raise interest rates, lower credit limits, or close credit card accounts.  The borrower’s auto insurance, student loans, and other forms of credit also may change, as these are tied to the borrower’s credit score as well. 

If the homeowner does not pay for 90 days, the lender likely will start calling, trying to persuade the homeowner to enter into a loan modification.  If a loan modification cannot be agreed upon between the homeowner and the lender, and the homeowner continue missing payments, the homeowner likely will be served with a foreclosure notice. 

Homeowners at risk of defaulting on their mortgages, or those who already are behind, should contact their lender immediately to work out a repayment plan and/or loan modification.  

Information obtained by Calif Asso of Realtors and the Modesto Bee.
To read the full story, please click here.

Great news coming regarding the home buyer tax credit. The Senate has now agreed to extend the tax credit. The bill must be voted on and then go through the House of Representatives next. But most of us are certain it will pass before the current deadline.
As you can imagine, many buyers are looking forward to that tax credit, and many are rushing to make their home purchase before the current deadline. It has definitely helped our real estate market. But I truly feel we are at the bottom of this real estate cycle right now. Home prices should stay flat for a while, 18 months to 2 years, before we see significant increases.
For more information, or your comments, please respond.
~ Barry Ripp
Selling real estate since 1985