Be Ready to Buy

If you find what you’re looking for in a home, you should be prepared to make an offer quickly. Even if homes are staying on the market a little longer in your neck of the woods, it only takes one other interested buyer to snatch the home or create a bidding war.

You can help the offer process by being ready. In addition to being pre-approved for a loan before you begin looking at properties, it’s wise to be honest with yourself. You know exactly what you want in a home and how much you can actually afford. Make sure to take into account utilities and other monthly expenses associated with homeownership.

Be advised, though, that a quick offer doesn’t necessarily mean a quick end to the transaction. There are myriad potential postponements in a real estate transaction. There may be contingencies, repairs, lender delays, or any number of other issues.

Purchasing real estate can be a tricky and detailed business, but a Texas REALTOR® can help prepare you for the process. He knows the value of properties in your local market and how to navigate the entire process to a smooth conclusion. He’ll use this information to help you submit an excellent offer.

When you have the information you need to make a good decision, your chances of making a successful offer on a property improve. Use a REALTOR® to increase your advantage.

Source:Texas Association of Realtors®

www.amsstarrealty.com

Some Cities Unaffected by Recession

Some U.S. cities with stable housing and diversified employment have been virtually untouched by the Great Recession.

Analysts say cities that are most likely to leave the recession in the same or better condition than they started it are those where home prices didn’t fluctuate wildly, which spared them the devastating effects of foreclosure, lost jobs, and lost productivity.

If there is a lesson to be learned, experts say, it is that families looking for long-term economic stability should settle in locales with diverse employment and minimal shifts in housing values.

To identify these cities, Forbes magazine ranked the 100 largest Metropolitan Statistical Areas by employment rates, the conventional mortgage home price index, and the average days on the market for properties currently for sale.

The top cities on Forbes list were:

Omaha/Council Bluffs, Neb.
San Antonio, Texas
Austin-Round Rock, Texas
Pittsburgh
Harrisburg/Carlisle, Pa.
Dallas/Fort Worth
Rochester, N.Y.
Houston
Raleigh/Cary, N.C.
Baton Rouge, La.

Source: Forbes, Francesca Levy (11/19/2009)

July new US home sales up 9.6 percent

WASHINGTON (AP) -- New U.S. home sales surged 9.6 percent in July, rising for the fourth straight month and beating expectations as the housing market marches steadily back from its historic downturn.

The Commerce Department said Wednesday that sales rose to a seasonally adjusted annual rate of 433,000 from an upwardly revised June rate of 395,000. Sales are now up more than 30 percent from the bottom in January, but are still off nearly percent from the frenzied peak four years ago.

The median sales price of $210,100, however, was off 11.5 percent from year-ago levels and down slightly from $221,400 in June.

Last month's sales pace was the strongest since September and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 390,000 units.
In a kind of Cash for Clunkers effect, homebuyers are rushing to take advantage of a federal tax credit that covers 10 percent of the home price, or up to $8,000, for first-time owners. Home sales must be completed by the end of November for buyers to qualify.

Builders and real estate agents are pressing Congress for that credit to be extended. If it isn't, sales could reverse their upward trend.
As sales rise, that's likely to make builders more confident about getting going on new projects, and that's likely to lead to more jobs ins the construction industry. "These are crucial elements of a sustainable recovery," David Resler, chief economist at Nomura Securities, wrote in a research note.

Each new home built creates, on average, the equivalent of three jobs lasting one year and generates about $90,000 in taxes paid to local and federal authorities, according to the National Association of Home Builders.

There were 271,000 new homes for sale at the end of July, down more than 3 percent from May. At the current sales pace, that represents 7.5 months of supply - the lowest since April 2007. The decline means builders have scaled back construction to the point where supply and demand are coming into balance.

Courtesy of:
By ALAN ZIBEL
AP Real Estate Writer Aug 26, 11:19 AM EDT
© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy.

Mortgage Applications Rise on Falling Rates

Mortgage applications bounced back last week with the Mortgage Bankers Association market index rising 5.6 percent on a seasonally adjusted basis compared to the previous week.

On an unadjusted basis, the index increased 4.8 percent and was up 25 percent compared with the same week a year ago.

The recent seesaw of mortgage rates has affected refinances more than purchases. The refinance index rose 6.9 percent last week after falling 7.2 percent the previous week, reflecting declining mortgage rates. The purchase index, which has trended upward gradually, rose 3.9 percent.

Here are the average performances of mortgage rates this week:

30-year fixed-rate mortgages decreased to 5.15 percent from 5.38 percent.
15-year fixed-rate mortgages decreased to 4.52 percent from 4.71 percent.
1-year ARMs decreased to 6.66 percent from 6.71 percent.

Source: Mortgage Bankers Association (08/19/2009)

$8000 1st Time Homebuyer Tax Credit Deadline is Near

The deadline is approcahing and will be here before you know it. 1st Time Home Buyers have just a little over 100 days before the $8000 tax credit is gone.

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.


Don't miss out on this government housewarming gift.

10 Ways to Prepare for Homeownership

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving.Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 3.5% to 20% of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

5. Get your credit in order.Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications.How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.

Source Realtor.org

Home Lending Rates Falling Again

Daily Real Estate News


Rates on 30-year fixed mortgages fell to 5.14 percent for the week ended July 16, down from 5.20 percent a week before and 6.26 percent a year earlier, Freddie Mac reports.

Interest on fixed home loans has fallen in four of the past five weeks, and Freddie Mac economist Frank Nothaft says rate activity during that time has lowered the monthly payment on a $200,000 loan by $56.

Here’s a look at how other mortgage rates performed this week:

15-year fixed loans fell to 4.63 percent from 4.69 percent.
One-year adjustable-rate mortgages fell to 4.76 percent from 4.82 percent.
Five-year hybrid ARMs bumped up a notch to 4.83 percent from 4.82 percent.

Source: Grand Junction Free Press, Wyatt Haupt Jr. (07/17/09)

Mortgage Rates Drop This Week

Interest on 30-year fixed mortgages, 15-year fixed loans, five-year adjustable-rate mortgages, and one-year ARMs all fell this week, according to Freddie Mac.

The average on 30-year financing slipped to 5.2 percent from 5.32 percent a week ago.
The 15-year mortgage declined to 4.69 percent, down from 4.77 percent.
Five-year ARMs were down to 4.82 percent from 4.88 percent.
One-year ARMs fell to 4.82 percent from 4.94 percent.

Source: Los Angeles Times (07/10/09)

© Copyright 2009 Information Inc.

Mortgage Rates are Rising

Mortgage Rates Reach 7-Month High
Higher interest rates put the brakes on mortgage refinancing this week, according to Freddie Mac.

The firm's weekly survey pegged interest on 30-year fixed mortgages at an average of 5.59 percent -- up from 5.29 percent last week and the highest rate since November 2008.

Other rates also climbed:

Interest climbed to 5.06 percent from 4.79 percent for 15-year fixed loans;
5.17 percent from 4.85 percent for five-year, adjustable-rate mortgages;
5.04 percent from 4.81 percent for one-year ARMs.

Freddie Mac chief economist Frank Nothaft says the gains are not affecting home purchase loans.

Source: Boston Globe (06/12/09)

Adding deck lights a simple way to enhance outdoor living

(ARA) - As summer rolls in and guests show up, the benefit of having outdoor living space for relaxing and entertaining becomes readily apparent. Homeowners love having extra space where they can hang out, and outdoor environments are a huge plus for those trying to sell or rent out a home.



Overall home improvement project budgets are shrinking in 2009, while low-cost improvements are growing in popularity with both residential homeowners and landlords who want to give their properties a little added boost, according to the National Association of Home Builders.



Outdoor lighting is a popular improvement. In addition to traditional landscape lighting, deck lights, post lights and recessed path lights extend the livability of outdoor decks and patios, and offer a low-cost update with the benefit of improving the usability of outdoor spaces.



"Today it seems that the more practical the upgrade, the better. And lighting is an easy upgrade that adds instant function, ambiance and value," says Jay Savignac of Aurora Deck Lighting.



"In a down economy, people stay home more. They entertain at home more. This makes usable spaces more important than ever, and outdoor living areas remain one of the top areas for home improvement," Savignac says.



Taking your backyard deck or patio from daytime roost to night time entertainment space is easy. In fact, there have never been more product options available to homeowners for lighting up their deck or fence, and creating an inviting and usable outdoor area for night time enjoyment.



Savignac says homeowners can easily install outdoor lighting in just one weekend, or even less time if they opt for lights that don't require wiring, such as solar options.



Best of all, outdoor lighting products can be installed without the aid of an electrician and, in most communities, no permits are required. Homeowners have a variety of options to consider:



* Post lights are easy to install on the tops of deck posts and fence posts. They can be positioned directly on top of posts or mounted on the rails using special mounting brackets. Their distinctive "lantern look" offers an elegant finish to decks, and post lights are available in a variety of styles, sizes and colors that work with all sizes of posts on both decks and fences. Matching post caps are also available.



* Post lamps mount vertically on deck or fence posts and offer spot lighting, which can add security and safety in dark areas or near stairs. Post lamps on fences are a popular addition that fence builders say add value and security, as well as dramatic effect.



* Special "stair lights," like the Pyxis from Aurora, mount easily into the vertical riser on a stair to provide downlighting for safety and sure footing.



* Recessed deck lighting, like the Aurelle from Aurora, is a new product that can install under seating, in deck floor boards, or even overhead inside patio covers to add lighting using the same concept as recessed lighting indoors.



Outdoor lighting projects are easy to complete. Homeowners can choose from solar options that have no wiring requirements, or low-voltage lighting that works off a transformer and operates from a standard 110 volt power source. Outdoor lights can run off a timer or can be wired into light switches in the home for maximum control.



Your own outdoor lighting plan can be as simple or as complex as you desire. Aurora has transformers that can handle up to 50 lights, although accent lighting using as few as four or five lights can make all the difference in creating an outdoor living space that can be readily enjoyed at night.



Best of all, you can create a custom look that works for you, adding light in cooking areas, near stairs or gates, or along bench seating where guests congregate.







Courtesy of ARAcontent

Is Now a Good Time to Buy a House in Texas?

Buying a house is a big step. The right time to take this leap depends on your financial and personal situation as well as your goals. If you are considering buying a house now, here are some strong reasons why the timing could be right:

• Housing prices in Texas have been steadily rising at a moderate pace for many years, even while other states have experienced wild price fluctuations.


• If you’re a first-time buyer (not owning a principal residence in the last three years), you may qualify for a tax credit of up to $8,000. This federal tax credit expires Dec. 1, 2009.


• Other Texas-specific programs can lower your interest rate or provide additional tax-credit incentives.


• Interest rates are at or near record lows. Even small reductions in the interest rate can significantly boost the purchase price you can afford when buying a home. Texas has one of the most affordable housing markets compared to household income, according to the Real Estate Center at Texas A&M University.
• Our state’s economy is strong and diverse, and the population is expected to continue growing steadily. These factors all point to continued health in the housing market.

Source: TexasRealEstate.com

How to Use the Internet to Save Money

(ARA) - Cutting costs, pinching pennies, shopping smarter -- more and more people are reacting to the current economic crisis by changing how and where they spend money. For some people, it may mean fewer restaurant dinners and more home cooking. Others are making bigger changes to save a few dollars and gain control of their finances.



Not every adjustment has to be dramatic, however. There are ways to save significant amounts of money without leaving the house -- or even getting out of bed. With more than 84 million people having broadband Internet access at home, according to the Pew Internet & American Life Project, a few mouse clicks can easily benefit your wallet.



The Internet has changed the way people communicate, discover and engage with others. It has also changed the way people manage their money. People regularly bank, trade, do business and shop online. Today, 40 percent of U.S. households bank online -- one-third more than in 2003 -- according to financial consulting firm TowerGroup. According to the Nielsen Global Online Survey, in 2008, more than 85 percent of the world’s online population has used the Internet to make a purchase -- up 40 percent from 2005.



“The price you pay for the things you need is not set in stone,” says Paul Ford, CEO of NetQuote.com. “Insurance, for example, is one of the biggest non-discretionary expenses for any family. What most people don’t realize is that you can -- and should -- shop around for insurance just like you shop around for a car or a house. With the technology available today, it’s easier than you might think.”



Here are just a few ways that consumers can use the Internet to take some pressure off their pocketbooks.



Check online for coupons and promotional codes.

In lieu of eating out frequently, many people are doing more grocery shopping and cooking at home. Many major grocery stores post coupons, offers and other promotions online that can easily lead to increased savings in a fraction of the time it takes to clip coupons in the traditional sense. Likewise, many online retailers circulate "promo codes" that can be redeemed at checkout for additional savings. Before completing an online purchase checkout, do a quick Internet search. Visit sites like www.RetailMeNot.com or www.CouponCabin.com to save.



Shop around for insurance quotes.

Insurance, whether for your car, home, health or business is something most people cannot go without. However, many people never think to shop around for a better insurance quote because they see insurance as an expense that isn’t negotiable, or they think they’re stuck in their current policy until it runs out. This is simply not the case. People can switch at any point in their policy, without penalty, and can often find a better deal by shopping around. Better yet, people can use quote-shopping sites, such as www.NetQuote.com, and receive insurance quotes from multiple interested agents without the hassle of filling out multiple requests. It can be a simple way to greatly reduce the amount people pay for insurance. After all, if you have to pay for it anyway, you may as well get the best deal you can.



Save on gas by mapping out travel routes.

Instead of taking the same route to work, friends’ houses or places of interest, consider mapping out a more cost-effective route by using online mapping services. The less time you spend driving from point A to point B, the less you’ll have to spend on gas. Web sites such as www.Mapquest.com or GoogleMaps can change the way you travel and how much it costs to get there. You might find a time-saving shortcut that you never knew existed.



Don’t waste money on the wrong products -- read reviews first.

Almost every online retailer features customer reviews and ratings for each of their products. If you must make a large purchase, there can be immense benefit in taking the time to read what other people are saying about that product before you buy. Consider checking out www.Epinions.com or www.ConsumerSearch.com. If the buzz indicates that a particular product is not worth the money -- or that a similar product does the same thing for less -- reconsider the purchase and look into other options. And if you happen to find what you’re looking for, check out the sites listed above for promotional codes.



People can get very creative when it comes to shaving a few pennies off their expenses. Before resorting to dramatic, cumbersome methods of saving money, explore the options above and other innovative ways the Web can be a tool for reducing your financial burden.



Courtesy of ARAcontent

1st Time Homebuyers-Stimulus Tax Credit

* Qualifying taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately. The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers. The Housing and Economic Recovery Act defines (in part) a first-time homebuyer as one who has not owned a principal residence during a 3-year period prior to purchase. Qualification for tax credit based upon first-time homebuyer status, income, purchase price of home and other Act and IRS requirements. You must consult your tax professional for complete tax credit details. A summary of the tax credit, for general guidance only, is found at www.federalhousingtaxcredit.com.



Courtesy of Federal Housing

Simple Steps to Achieve a Better Credit Score

(ARA) – Americans are dealing with the credit crunch by keeping cash on hand. In the process, however, the average consumer is paying 2.6 bills late every month, according to the Western Union Payment Services Money Mindset Index.



Unfortunately, late fees and additional unnecessary charges can stack up quickly, depleting your cash flow and harming your credit score. Here’s how it works:



The longer you maintain a track record of paying your bills on time, the better your credit score, according to the Fair Isaac Corporation, which created the FICO score, more commonly known as a credit score. Your bill payment history accounts for 35 percent of your credit score, which is used to determine your eligibility for mortgages, auto loans, credit cards and other financing.  



However, late fees can lower your credit score -- and there’s no quick fix. When you apply for a loan, a low score may hinder your efforts to secure funds.  



“Managing your finances can feel like a juggling act that won’t end,” says David Shapiro, senior vice president of Western Union. “Flexible payment plans can help consumers keep their cash flow strong by timing the paying of bills to when they get their paychecks. This allows you to avoid late charges and risking credit standing. Over time, consumers can build a strong credit history, allowing them to finance a car or a home when they are ready.”  



In tough economic times, Shapiro and other experts say, lenders will scrutinize your credit score even more. Many credit offerings and debt consolidation loans may seem advantageous, but can actually lead to debt disaster. Here are simple tips for avoiding unnecessary fees and maintaining a good credit score:

 

* Avoid credit agencies that charge fees to improve your credit score. You can go online to reputable sites such as money.com or kiplinger.com and receive free advice.



* Research flexible payment plans that allow you to make smaller, more frequent affordable payments, such as paying a bill twice a month, but at smaller increments that suit your monthly budget.  



* Pay off credit card debt. Maintaining low balances can show your ability to manage bills and can increase your credit score over time. Once you pay it off, try to only carry a balance that you can pay off in a month. Paying off your balance each month in full can help your credit score.



*  Consider same-day payments. You can maximize cash flow by paying your bill the same day it is due. For example, you can make an in-person cash payment at more than 45,000 Western Union Agent locations, and receive proof of payment within minutes. Visit WesternUnion.com to find the closest agent near you.



* Check your credit report. You can get a free report at annualcreditreport.com or by calling (877) 322-8228. If you see a mistake, take necessary steps to get the mistake corrected as soon as possible.



* Learn more about credit scores. Download a free educational brochure from Fair Isaac Corporation’s Web site, www.myfico.com.



Just a few simple steps can make a big difference in managing your finances. Once you have a plan in place, what seems like a juggling act will turn into a smooth transition.  



Courtesy of ARAcontent

1st Time homebuyers-Buy a home Before Filing Taxes this year

Before you file your taxes this year, don't forget about the $7500 tax credit for first-time home buyers, which was enacted by the 2008 American Housing Rescue and Foreclosure Act. Designed to help stimulate interest in the housing market, this temporary provision provides a first-time home buyer (someone who hasn't owned a home in the last three years) a tax credit of up to $7500 for homes purchased between April 8, 2008 and July 1, 2009. Basically the tax credit, which must be repaid over 15 years, is an interest-free loan from the government to help you offset the costs of home ownership.

But here's the best part. The law allows qualified taxpayers to take the credit against either their 2008 or 2009 taxes. This means, if you qualify, you can buy a house this year before July 1st and receive the credit on the 2008 tax returns you're filling out right now. Imagine having an extra $7500 in cash to pay bills or credit cards or even pay for renovations on your new home. If you choose to utilize the credit on your 2009 returns, your tax professional can help you reduce income tax withholding up to the amount of the credit. This will help you to increase your take-home pay throughout the year to save money for a down payment for a qualified purchase before July 1st.

There are certain income restrictions and rules for repayment, but give us call today to learn more about this valuable government program for first-time home buyers.

Courtesy of All About News