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7/30/13
Beautiful 2-level, 2BR home located just steps to Metro, shopping, dining, etc. Opens to private & serene green space. Must see!
7/25/13
What Will Waiting to Buy a Home Cost You?
At the end of June, mortgage rates for a 30-year fixed-rate mortgage jumped to 4.5 percent, up from 3.9 percent on June 1 — and a notable jump from the historically low 3.35 percent monthly average rate toward the end of 2012. However, while higher rates do mean an increase in monthly mortgage payments, experts are urging potential home buyers not to resign themselves to renting for the next few years just yet — it’s still a good time to buy a home.
For example, the difference in monthly payments for a $200,000 home at 3.9 percent and one at 4.5 percent is just $70.03. If budgeted correctly, this could be a manageable expense.
Rick Allen, chief operating officer of Mortgage Marvel, is one expert who says now is still the time to buy a house. His platform records online mortgage loan applications, about a million transactions a year, which serves as a barometer for how well the housing market is doing. He says that refinances are down, as to be expected with a rate increase, but that “shouldn't scare people off.”
“Relatively speaking, rates are still at or near historic lows,” says Allen. “A 4.5 percent mortgage is still an incredibly attractive rate at which to finance a home. From a real estate perspective, we’re not far off from recent lows, and we’re heading to improve real estate values. The combination of those two factors make this still a good time to buy.”
As the unemployment rate continues to decline, Allen says we’ll see more potential homeowners enter the market as well. Though Allen says “theoretically, rates could go through the roof or back down to the floor” but he personally believes we’ll see rates around 5 percent through the end of the year.7/19/13
FEATURED LISTING: Gorgeous colonial home in sought after Rock Creek Forest
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Posted: Jul 19, 2013, 6:39am PDT
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Quick Tips for First Time Home Buyers
Want to buy your first home? You’ve
probably got some cash saved for a down payment and maybe even recommendations
for realty agents from savvy friends you trust. But have you cleared up your
credit report, hired a tax adviser or considered the benefits of FHA financing
compared with a conventional mortgage? Not every first-time homebuyer will need
a tax adviser; but everyone interested in becoming a homeowner should prepare
early with orderly finances, information and plenty of patience for the long
and complicated process ahead.
Since the housing market’s collapse
in 2008, mortgage lenders and home sellers have become more demanding in the
documentation they require for a home sale. And with the real estate market in
the Washington area heating up for the spring season, you’ll need to think
through the contingencies and prepare your balance sheet to compete with the
other would-be home buyers making offers on properties — many of them with a
track record of homeownership.
Here are five quick tips on what
potential first time buyers need to do:
Step
1: Credit and Savings
First, request a free copy of your
credit report from the three major credit bureaus via https://www.annualcreditreport.com. Use only this link to avoid the many
credit-reporting scams out there. If you see accounts on your credit report
that you don’t recognize or if there are negative marks against you, act now to
clear them up.
If you see old credit cards that you
no longer use, consider closing some strategically, starting with the newest,
low-limit cards that are unused. Lenders prefer a low ratio of debt to credit
limit, so it’s good to have more credit available than you use on a monthly
basis. They also like to see long-standing lending relationships, so don’t
close your oldest credit card. Finally, if you close too many credit cards in a
short period, that raises a red flag as well.
Step
2: Stick to your Budget
Next, create or revise your monthly
budget so that you are setting aside whatever money you’ll need to pay as a
homeowner that you don’t pay as a renter. This includes the home mortgage,
mortgage insurance, property taxes, condo or homeowner association fees, home
furnishings, maintenance, cleaning and any utilities or fees that your landlord
currently pays. Living with this budget month after month will teach you what
you truly can afford when it comes to a house payment. It will also help you
pay off any remaining credit card debt or add to the savings that you should
already have amassed for a down payment. You’ll return to this budget when you
actually make an offer on a home, so consider this just a draft version.
Moreover, the bank and credit card
statements that you use to create your budget will probably be requested by
mortgage lenders when you get to that stage. Start keeping your financial
statements and pay stubs in a file, where you’ll put new documents as they
arrive so that everything remains current.
Step
3: Find a Good Agent
If you haven’t already found a
realty agent who can guide you through the house process, now’s the time. Not
only can your real estate agent advise you on the neighborhoods and new
listings of interest, that person is your advocate in a competitive market. Ask
friends, family and colleagues for recommendations of an agent with expertise
in your target market.
Your agent can help craft a strategy
for being a competitive bidder. For instance, sellers prefer a buyer with no
inspection or appraisal contingency, but you’ll need to think through your
comfort level with paying for an inspection ahead of your offer being accepted
and with buying a home that appraises for less than the sale price.
Step
4: Find a Good Lender
Your agent is also a terrific source
for the other important professional for home buyers: a mortgage lender.
Whether you work with a specific lender or a mortgage broker who can connect
you with many lenders, it’s important to interview several individuals before
choosing one. Don’t let anyone run your credit until you’ve made a decision,
because several inquiries could raise a red flag and lower your credit score.
Your lender can walk you through
your financing options and the pros and cons of each one. You’ll also get a
realistic view of how much you can borrow, based on your income and credit. Ask
that person to run a hypothetical scenario so that you have a written estimate
of the monthly principal and interest payments, closing costs, insurance fees
and property taxes.
Your lender can also walk through
your credit report with you and give advice on improving your credit score, as
well as a realistic view of how long it might take for your actions to be
reflected in the credit bureaus’ records. Make sure you understand in what
circumstances you’ll be required to buy the home — or will forfeit your earnest
money — even if your loan application is ultimately denied.
Step
5: Stay Alert and Ready
All that remains now is to look at
possible properties and to be ready to make an offer quickly if you find one
that meets all your criteria. That means keeping your finances spiffy for the
final check before the sale.
When you find a property you want to
buy, that’s the time to call utility providers for usage history, check on
condo or homeowner association fees, get the property taxes and build all those
extra costs into your monthly budget. Don’t let the beautiful home sway you if
the expenses will push you over the limit of what you can afford.
7/17/13
Surging Home Prices in Region Help Fuel More New Listings
The median sales price in the Washington region reached its highest level on record for May, according to data released on June 3, presenting further economic proof that the housing recovery is in full swing here.
The median sales price in the area reached $424,000, according to the report by RBI (RealEstate Business Intelligence - a subsidiary of the Rockville-based multiple listing service MRIS)
While the rising prices could ultimately benefit buyers, it could be good for sellers as well. During the past year, the inventory has been at historically low levels. But according to RBI, new listings increased 20 percent from April to May.
Bidding wars in neighborhoods across the region have been driven by low inventory and high demand and because of this, it has pushed houses out of reach for a lot of buyers especially for those with limited means and one who are in the market for the first time. The report indicates that an steady increase in the median sales price is prompting more sellers to list their homes.
A collaborator of RBI, the Center for Regional Analysis at George Mason University said last month that they noticed the new listings surged 22 percent from March to April.
Higher new listings for the past two months may be an indication of the beginning of a trend instead of a fluke. According to the report, if the trend will continue, prices could possibly stabilize thus helping first-time buyers afford their choice of homes.
In order to make a significant impact, the surge in new listings would have to continue for several more months as the number of active listings still fail to keep up in terms of sales.
It says on the report that in May 2013, the median sales price of $424,000 embodied an 8.2 percent increase from May 2012. It also surpassed the previous record in May 2005 of $420,000.
According to the report, other aspects of the market are at bottom levels. For instance:
The median sales price in the area reached $424,000, according to the report by RBI (RealEstate Business Intelligence - a subsidiary of the Rockville-based multiple listing service MRIS)
While the rising prices could ultimately benefit buyers, it could be good for sellers as well. During the past year, the inventory has been at historically low levels. But according to RBI, new listings increased 20 percent from April to May.
Bidding wars in neighborhoods across the region have been driven by low inventory and high demand and because of this, it has pushed houses out of reach for a lot of buyers especially for those with limited means and one who are in the market for the first time. The report indicates that an steady increase in the median sales price is prompting more sellers to list their homes.
A collaborator of RBI, the Center for Regional Analysis at George Mason University said last month that they noticed the new listings surged 22 percent from March to April.
Higher new listings for the past two months may be an indication of the beginning of a trend instead of a fluke. According to the report, if the trend will continue, prices could possibly stabilize thus helping first-time buyers afford their choice of homes.
In order to make a significant impact, the surge in new listings would have to continue for several more months as the number of active listings still fail to keep up in terms of sales.
It says on the report that in May 2013, the median sales price of $424,000 embodied an 8.2 percent increase from May 2012. It also surpassed the previous record in May 2005 of $420,000.
According to the report, other aspects of the market are at bottom levels. For instance:
- The District and Alexandria posted record highs in their median sales prices, respectively $490,000 and $525,000.
- Prince George’s County had the highest 12-month growth rate in the price, rising 18.8 percent from May 2012 to last month.
- Sales in the region reached 5,088 in May, a 13.6 percent increase from the year before.
- The median days on the market reached nine, the lowest level since the summer of 2005.
- The average sold-to-original-list price ratio reached the highest level since October 2005: 98.6 percent.
Looking for a Realtor who is always up to date on the current market
conditions? As top 3% in the nation, I offer my clients valuable information on
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