I read this article and thought you would find it interesting and very appropriate for today's market. I will restate something that is stated in the article below...Now is a great time to buy. There are some people that feel they should wait to see if homes prices will come lower. The problem with that is by the time you think the prices have hit bottom, you will have missed it. It is like trying to guess when to buy a stock at the lowest point.
I hope you find the article interesting and helpful.
Financing Solutions with David Reed
What interest rates really mean
The Fed did this! The Fed did that! Rates are up! Rates are down! Aaaagggh! Okay, now exhale. In turbulent economic times the media can't wait to report what interest rates are doing. Pundits prognosticate, forecasters forecast and soothsayers sooth. When should you buy a home based upon interest rates and when is it the right time?
The fact is that interest rates, while important, have little impact when it comes to buying a home. Alright, alright, I'll admit: it's important...but it's not a deal-killer.
There is a fixation on what rates are doing. A fixation on what rates will be in the future and what rates were in the past. I've heard potential home buyers tell me, "I'm not sure I want to buy now because rates are ¼ percent higher now and I think I'll wait." I say, "Wait for what?" I say let's not look at the rate but instead concentrate on what that rate actually represents ... your monthly payment.
Let's look at what an interest rate move of ¼ percent really does to a $200,000 mortgage. Say a 30-year interest rate at 6.00 percent "jumps" to 6 ¼ percent. Shall we sit on the sidelines, thinking such a move is suddenly unaffordable? No. The payment on a $200,000 loan "jumps" by about $32 a month!
Now let's get a bit more draconian and look at a ½ percent increase and the monthly payment increases by $64. Putting that into daily financial terms, $64 is about a tank of gas. While not insignificant, it's hardly a reason to stay on the sidelines of home ownership. Right now, buyers should have more urgency than ever. Home prices have declined enough to make buying more affordable than it's been in recent memory and interest rates (whether at 6 percent or 6 1/4 percent) are historically low. It's time to act.
Are rates important? Sure they are. But are they the end-all? Heck no. Interest rates over the past few years have been in a very tight range, with few major swings. Just remember what interest rates represent, your monthly payment, and pay less attention to the headlines.
Monday, May 12, 2008
Sunday, May 11, 2008
Are You Tired Of Negative News About Where You Live?
Do you ever get tired of turning on the news or picking up a paper only to hear or read how bad everything is? I guess our society is geared towards paying attention to bad news then to look for the positive.
It seems ever day you hear about the housing bubble, credit crisis or job losses.
While I realize our country and in particular Michigan is going through some tough economic times, it is not all doom and gloom.
Th next time you get tired of hearing the negative on tv, I suggest you get on-line and go to http://www.lakeshoreadvantage.com/ to see some positive information about the West Michigan area. Below are a few of the highlights from this site.
The Lakeshore is home to some of the World's Greatest Companies: Herman Miller, Haworth, Gentex, Johnson Controls, Magna Donnelly, Heinz, Sara Lee, Conagra, Siemens, Boars Head and Dr. Pepper to name a few.
The Lakeshore was named in Forbes Magazine's top 200 Best Places for Business and Careers.
Gentex is the third largest producer of patents in the State of Michigan.
West Michigan area ranks 6th among the world's 125 top knowledge based economies.
Of people 25-44 years of age, 33.9% have college degrees, 20% above the State average.
The Lakeshore ranked 7th in Forbes top savings cities that are doing the best job of building wealth.
These are just a few things that make are area so wonderful. Couple this with the beautiful beaches of Lake Michigan and things don't look quite so bad.
Everything goes through cycles, good and bad. We need to stay positive to weather the storm. The good news is we have a strong foundation in which to build even greater things!
It seems ever day you hear about the housing bubble, credit crisis or job losses.
While I realize our country and in particular Michigan is going through some tough economic times, it is not all doom and gloom.
Th next time you get tired of hearing the negative on tv, I suggest you get on-line and go to http://www.lakeshoreadvantage.com/ to see some positive information about the West Michigan area. Below are a few of the highlights from this site.
The Lakeshore is home to some of the World's Greatest Companies: Herman Miller, Haworth, Gentex, Johnson Controls, Magna Donnelly, Heinz, Sara Lee, Conagra, Siemens, Boars Head and Dr. Pepper to name a few.
The Lakeshore was named in Forbes Magazine's top 200 Best Places for Business and Careers.
Gentex is the third largest producer of patents in the State of Michigan.
West Michigan area ranks 6th among the world's 125 top knowledge based economies.
Of people 25-44 years of age, 33.9% have college degrees, 20% above the State average.
The Lakeshore ranked 7th in Forbes top savings cities that are doing the best job of building wealth.
These are just a few things that make are area so wonderful. Couple this with the beautiful beaches of Lake Michigan and things don't look quite so bad.
Everything goes through cycles, good and bad. We need to stay positive to weather the storm. The good news is we have a strong foundation in which to build even greater things!
Monday, May 5, 2008
Do You Understand Your Financing Options?
There is a lot of information being put out in the media about the credit crisis and the ability or inability to get a home loan. While most of the media attention tends to be negative, the reality is....it isn't as bad as they would make you believe. Please read the article below. I hope this clears up a lot of the misconceptions. Please contact me if you have any questions.
Financing Solutions with David Reed
Overcoming the misconceptions about the "credit crisis"
You’ve watched the news and read about it in the papers. You know, the “credit crisis” and how buyers need 20 percent down in order to buy a home? And even if you found a buyer with 20 percent down, lenders aren’t making loans anyway. So, why bother, right? Wrong!
We’re right smack in the middle of what just might be the biggest disservice ever perpetrated on potential home buyers. It seems the press just can’t get enough of all the gloom and doom in the housing industry. The fact is that mortgage money is as available today as it was a year ago and loans are being made this very moment with little or no money down. And, no, platinum credit isn’t required. You just need to know where to look. Who are these lenders? They’re right down the street.
Federal Housing Administration (FHA) loans are exploding onto the mortgage scene; recent estimates are that one out of five mortgages are FHA loans. FHA loans never went away, their reemergence is a result of the collapse of the sub-prime market. FHA doesn’t technically have a minimum credit score, although, in practice, lenders won’t approve an FHA loan with a credit score below 500. But that’s a far cry from the notion that an 800 score is the only thing lenders care about.
The best part? FHA only requires 3 percent down. 3 percent. And that 3 percent can come in the form of a gift or grant. FHA borrowers only need to have $500 in a transaction. All the while, FHA mortgage rates are as good or better than their conventional counterparts.
Low or no down payment, extremely competitive rates and easier qualifying. No wonder FHA is moving up the charts!
Please contact me if you would like more information about FHA loans or help getting into your first home.
Saturday, April 26, 2008
Grand Haven, Michigan
My first few blogs have been related to real estate so I thought it was time to write about Grand Haven. As I write this blog I am looking outside to a sunny, albeit, windy day. We have had about 7 straight days of sunny warm weather. Unfortunately, it is going to come to a halt for a few days.
How do you go from 75 / 80 degrees one day and snow flurries the next? That is what we have coming within the next couple of days. The good news is it won’t last. We have turned the corner and the warm weather and sunny days are ahead of us. This is such an exciting time as the trees have buds and the flowers are blooming all around us.
If you like the diversity of having four seasons, Grand Haven is the place for you. You will have the opportunity to experience beautiful vibrant colors in the fall, white glistening snow in the winter, the rebirth of nature in the spring and the warm sunny days of summer.
I recently drove to Lake Michigan to eat lunch by the water. The city was in the process of getting our beaches prepared for another active summer as visitors come to enjoy Lake Michigan and various activities. See http://www.shorelineguide.com/ for a complete schedule of events.
The beaches of Grand Haven and surrounding Lake Michigan beaches have been voted some of the nicest, cleanest beaches in the country. If you love boating, watching boats, laying in the sun, building sandcastles, festivals, art shows or taking a leisure stroll on the boardwalk, Grand Haven has it for you.
How do you go from 75 / 80 degrees one day and snow flurries the next? That is what we have coming within the next couple of days. The good news is it won’t last. We have turned the corner and the warm weather and sunny days are ahead of us. This is such an exciting time as the trees have buds and the flowers are blooming all around us.
If you like the diversity of having four seasons, Grand Haven is the place for you. You will have the opportunity to experience beautiful vibrant colors in the fall, white glistening snow in the winter, the rebirth of nature in the spring and the warm sunny days of summer.
I recently drove to Lake Michigan to eat lunch by the water. The city was in the process of getting our beaches prepared for another active summer as visitors come to enjoy Lake Michigan and various activities. See http://www.shorelineguide.com/ for a complete schedule of events.
The beaches of Grand Haven and surrounding Lake Michigan beaches have been voted some of the nicest, cleanest beaches in the country. If you love boating, watching boats, laying in the sun, building sandcastles, festivals, art shows or taking a leisure stroll on the boardwalk, Grand Haven has it for you.
Saturday, April 19, 2008
Is Short Sale For Your Home An Option?
What a difference a year or two makes in the world of real estate. A couple of years ago we could get a loan with lower credit scores and finance the purchase of a home at 100% of the sale price and roll our closing cost in also.
The actions of two to three years ago have put us in a very tough situation now. Unfortunately people were put into loans that they shouldn’t have been put in. The housing market hit a wall and prices started tumbling. Homeowners that had financed at 100% or who had pulled equity out of their house found they owed more on their home than it was worth. Those that have to sell their home find they can’t afford to do so because they are upside down with what they owe compared to the value of the home.
While this is a very tough position to be in, it is not hopeless. Many people feel their only option is to let their home go to foreclosure. It is NOT the only option and it shouldn’t be in your thought process. You have the option of doing a Short Sale.
A Short Sale is a process that needs to worked out in cooperation with the lending institution that holds your loan. You will be required to fill out documents that show your financial status. You will want to have you Realtor be in touch with the lender as well so they can determine the appropriate price to get your home sold as fast as possible.
The idea of a short sale is this; if you owe $100,000 on your home and the market value is $95,000….. your Realtor may suggest putting your home on the market for $90,000 subject to the banks approval of a short sale. It is wise to have your lender and Realtor in agreement as to the bottom line price.
Let’s say you get an offer for $88,000….. the offer goes to the bank and they review what their total loss would be between the $100,000 you owe and the $88,000 offer, minus commission, closing cost, transfer tax, title insurance, etc… Let’s say the final number comes back at $80,000… the bank would have a loss of $20,000. They can agree to the offer and they would forgive you for the loss of $20,000.
Why would the bank do this? It is estimated that the cost of taking a home into foreclosure is about $40,000 to $50,000. It becomes a business decision on their part.
What are the ramifications for you? Your credit rating / report will take a hit for a couple to three years, but it is much better than having a foreclosure and taking a hit on your credit for 7 years.
If you find that you are in trouble or heading into trouble, talk with your Realtor and lender and head it off before it becomes too late.
The actions of two to three years ago have put us in a very tough situation now. Unfortunately people were put into loans that they shouldn’t have been put in. The housing market hit a wall and prices started tumbling. Homeowners that had financed at 100% or who had pulled equity out of their house found they owed more on their home than it was worth. Those that have to sell their home find they can’t afford to do so because they are upside down with what they owe compared to the value of the home.
While this is a very tough position to be in, it is not hopeless. Many people feel their only option is to let their home go to foreclosure. It is NOT the only option and it shouldn’t be in your thought process. You have the option of doing a Short Sale.
A Short Sale is a process that needs to worked out in cooperation with the lending institution that holds your loan. You will be required to fill out documents that show your financial status. You will want to have you Realtor be in touch with the lender as well so they can determine the appropriate price to get your home sold as fast as possible.
The idea of a short sale is this; if you owe $100,000 on your home and the market value is $95,000….. your Realtor may suggest putting your home on the market for $90,000 subject to the banks approval of a short sale. It is wise to have your lender and Realtor in agreement as to the bottom line price.
Let’s say you get an offer for $88,000….. the offer goes to the bank and they review what their total loss would be between the $100,000 you owe and the $88,000 offer, minus commission, closing cost, transfer tax, title insurance, etc… Let’s say the final number comes back at $80,000… the bank would have a loss of $20,000. They can agree to the offer and they would forgive you for the loss of $20,000.
Why would the bank do this? It is estimated that the cost of taking a home into foreclosure is about $40,000 to $50,000. It becomes a business decision on their part.
What are the ramifications for you? Your credit rating / report will take a hit for a couple to three years, but it is much better than having a foreclosure and taking a hit on your credit for 7 years.
If you find that you are in trouble or heading into trouble, talk with your Realtor and lender and head it off before it becomes too late.
Saturday, March 29, 2008
Agency Relationship
If you are looking to purchase a home, who do you want to represent you? It used to be that Realtors all worked for the seller. In today’s world, Realtors can be a buyer’s agent or a seller’s agent.
When looking to purchase a home, I would recommend having a buyer’s agent represent you in the process. When you sign a buyer’s agent contract, your agent is agreeing to work for you and keeping your best interest in mind. Anything you discuss remains confidential between you and your agent. Signing the contract protects you and the Realtor. It protects you because you have somebody looking out for you and working for you. It protects the agent because they know you are going to buy a home through them.
Many people think if they call an agent who has a house listed that they can save money on the house. The reality is the listing agent is a seller’s agent and has total responsibility to the seller. They do not have the buyer’s interest in mind. Their job is to get the most money and best deal for their seller.
When it comes time for you to purchase a home, I would recommend interviewing an agent or two and see who you feel comfortable with and trust and who you feel will do the best job for you. When you find the right agent for you, sign a buyer’s agent contract and begin the process.
Happy house hunting!
When looking to purchase a home, I would recommend having a buyer’s agent represent you in the process. When you sign a buyer’s agent contract, your agent is agreeing to work for you and keeping your best interest in mind. Anything you discuss remains confidential between you and your agent. Signing the contract protects you and the Realtor. It protects you because you have somebody looking out for you and working for you. It protects the agent because they know you are going to buy a home through them.
Many people think if they call an agent who has a house listed that they can save money on the house. The reality is the listing agent is a seller’s agent and has total responsibility to the seller. They do not have the buyer’s interest in mind. Their job is to get the most money and best deal for their seller.
When it comes time for you to purchase a home, I would recommend interviewing an agent or two and see who you feel comfortable with and trust and who you feel will do the best job for you. When you find the right agent for you, sign a buyer’s agent contract and begin the process.
Happy house hunting!
Tuesday, March 18, 2008
Are You Selling Your Home?
Are You Selling Your Home?
Are you currently trying to sell your home in today’s market? Here are some thoughts you should consider to get top dollar and minimize time on the market.
Inventory levels are very high compared to the number of buyers available. That means buyers can be more selective and expect to pay less than where you have your home priced. Pricing is key component in this market. Do not over-price your home. Setting your price too high may cause buyers to not even look at your home. If they do tour your home and your price is not competitive to the market, the will move on to the next home. Remember, they have lots of choices.
This brings us to the next important point. Your home needs to be in top showing condition. While many people think this involves remodeling the home and spending lots of money, the truth is it usually involves minimal dollars. Fresh paint (neutral colors) will do a lot to freshen up any home and give it a feeling of new. Go through you home and clean and when you think it is clean, clean it again. Rid your home of odors, whether it is smoke or pet. Walk through your home and remove items that you are not using. De-clutter the entire house to include closets, basement and garage. This will make your home appear larger and more spacious.
Lastly, buyers want information. They want to know the age of your roof, furnace, water heater and electric system. Have your heating and electric bills for the past year available. Anticipate other questions that a potential buyer may have concerning your home.
Are you currently trying to sell your home in today’s market? Here are some thoughts you should consider to get top dollar and minimize time on the market.
Inventory levels are very high compared to the number of buyers available. That means buyers can be more selective and expect to pay less than where you have your home priced. Pricing is key component in this market. Do not over-price your home. Setting your price too high may cause buyers to not even look at your home. If they do tour your home and your price is not competitive to the market, the will move on to the next home. Remember, they have lots of choices.
This brings us to the next important point. Your home needs to be in top showing condition. While many people think this involves remodeling the home and spending lots of money, the truth is it usually involves minimal dollars. Fresh paint (neutral colors) will do a lot to freshen up any home and give it a feeling of new. Go through you home and clean and when you think it is clean, clean it again. Rid your home of odors, whether it is smoke or pet. Walk through your home and remove items that you are not using. De-clutter the entire house to include closets, basement and garage. This will make your home appear larger and more spacious.
Lastly, buyers want information. They want to know the age of your roof, furnace, water heater and electric system. Have your heating and electric bills for the past year available. Anticipate other questions that a potential buyer may have concerning your home.
Subscribe to:
Posts (Atom)
