May 2012 National Housing Survey - your thoughts do count!

According to Fannie Mae’s May 2012 National Housing Survey: 

On average, Americans expect home prices to increase by 1.4 percent over the next 12 months, up 0.5 percentage points since March 2012 and the highest value yet recorded.

Thirty-four percent of respondents say that home prices will go up in the next 12 months, the highest level recorded since March 2011.

Forty-one percent of respondents expect home mortgage rates to go up in the next twelve months, a slight increase from last month.

The percentage of respondents who say it is a good time to buy increased by 1 percentage point to 72 percent, while the percentage of respondents who say it is a good time to sell remained at 15 percent.

On average, respondents expect home rental prices to increase by 4.1 percent over the next 12 months, a 0.5 percentage point increase versus last month and a return to the level seen in March.

Forty-nine percent of respondents think that home rental prices will go up, consistent with last month’s value and remaining the highest number recorded to date.

At 32 percent, the percentage of respondents who would rent if they were going to move is unchanged, while 63 percent would buy.

If you are interested in more information about your local neighborhood and what it is doing, let me know!

Jane Loveday
DRE  # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/in/janeloveday
http://www.twitter.com/sdrealestate

 


Top 3 things to consider when deciding to own or rent in California


Is your employment stable enough for the next 3 years?

Given the current economic state, knowing you have a job that is secure is very important, also prices are not going to rise much, if any over the next few years, so there is unlikely to be any equity gain in a home you purchase now.

If you are going to purchase a home with 10 – 20% or more down, and find you have to sell within a couple of years there should be no problem, however if you are going to use an FHA loan with just 3.5% down, then you may find yourself upside down if you have to sell.

Obviously if you are planning on staying in your home for many years, then current interest rates and prices make it extremely opportune.

Are you single, or already married with children?

A 1-bed condo doesn’t really fit a family, although it is perfect before you meet your significant other, so bear in mind that size really does matter. Can you afford to look at single family homes or larger condos, if so then do so, it will be a much better return on investment down the road.

Is it really cheaper to own than rent?

Depends on your neighborhood but with interest rates down around 4%, and you factor in taxes and mortgage insurance, you are looking at approximately $600 per $100,000 BORROWED. 2-bedroom condos are renting an average of $1500-$1800 around town right now, if not more, and you can easily find a 2-bedroom condo within the metro areas of San Diego priced UNDER $200,000, in fact over 100 are currently available, making your mortgage payment significantly LESS than a rent payment.

For more information about mortgages, contact Scott Schang, Broadview Mortgage Company - http://www.broadviewmortgagecorp.com/EmployeeDetail.aspx?groupid=430&EmployeeID=12444&

Food for thought, let me know if you need more information, I AM HERE, I CANHELP!


Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.linkedin.com/in/janeloveday

What is a Pre-Approval for buying a home?

When starting to look for a new home, the most important first step is to obtain a pre-approval from a Lender.  They will check your credit score, your credit history, your past two years of tax returns, and verify your employment income.

The higher your credit score, the lower your downpayment and monthly payments.  If your credit score is below 640 or 660 you may have higher fees to obtain your mortgage or will need a higher downpayment.  You can improve your chances by pulling your credit report and ensuring you are not being unfairly penalized for old, paid or settled debts.

Also STOP applying for new credit of any sort, and don't charge anything large during the purchase process! 

Contact your bank, credit union or private lender such as Broadview Mortgage Corp, and check their fees for obtaining your loan, also ask what amount you'll need for closing costs, and what points you maybe paying to obtain your mortgage.

Once you have your pre-approval you can start looking for a new home, when you find your new home, your pre-approval will need to be submitted with your offer to purchase.  It is better to be prepared ahead and be armed with the knowledge of what you will need which will make your new home search much more exciting!



Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
http://www.facebook.com/realestatesandiego
http://www.twitter.com/sdrealestate
http://www.linkedin.com/in/janeloveday

In Escrow? Stop Spending Immediately!

Congratulations, you have found your dream home and are now in escrow. Your Loan Officer has run your credit, pre-approved you and is now working on getting your finances finalized.

You are packing up your belongings and excitedly planning where everything will go in your new home, and what extras you will need – carpet, paint, lawn mower, etc. BUT STOP RIGHT THERE!

Beginning June 1st, your Loan Officer will be required to run your credit for a SECOND time right before your mortgage is fully funded. The last minute credit report is designed to find out whether you’ve increased your current credit debt, obtained, or even applied for, new debt – a Home Depot credit card for example - between your initial loan application and closing. Anything you may have applied for – furnishings, line of credit, new car, landscaping, new credit card, or even purchased, anything – could potentially threaten the ability to finally obtain and close your mortgage. EVEN IF YOU HAVE JUST APPLIED BUT NOT YET SPENT.

Be patient, don’t even think of applying or spending on current cards until you have closed escrow, it’s better to be safe than sorry.

Need more information, let me know, I am here, I can help!


Jane Loveday
Windermere Real Estate Agent
Cell: 619-519-1615
http://janeloveday.com
http://www.facebook.com/realestatesandiego