That house may fit your budget now

With home values in many areas declining, the market is providing an opportunity for many first time home buyers to purchase homes that previously may have been out of reach.  With increased affordability, families can now purchase homes with more square footage, in desirable neighborhoods, and in closer proximity to amenities and public transportation.

 

·      In California, the median price of an existing home declined to $285,680 in November 2008, down 41.8 percent from November 2007 when the median price of an existing, single-family home was $490,511.   

 

·      The average rate for 30-year, fixed-rate mortgages was 5.01 percent for the week ending Jan. 8, according to Freddie Mac. Lower interest rates coupled with lower home prices can lead to more affordable mortgage payments, enabling some homeowners to move up, and first-time home buyers to enter the market.

 

·      To qualify for the record-low interest rates, borrowers will need a down payment of at least 20 percent and a FICO score of 700 or higher.  In California, a 20 percent down payment on a median-priced home would be $57,136.  Additionally, home buyers will need to pay for any closing costs not paid by the seller. There are though still first time home buyers programs that will help a new home buyer to get into a home with little money down. Just call you Lender for more info to see if you qualify.

 ·      The large number of foreclosures on the market also is presenting an opportunity to purchase a home at a favorable price.  However, some foreclosed homes may be in disrepair and may require additional work to make the property livable.  A program offered by the Federal Housing Administration, 203K Streamline, allows home buyers to borrow as much as $35,000 more than the mortgage to pay for certain renovations, such as new paint, carpeting and appliances that a foreclosed home may need.

 

·      To calculate how much house is affordable, consumers should follow the general principle of dedicating no more than 28 percent of their gross monthly income to covering the monthly mortgage payment, including property taxes and homeowners insurance.  All debt payments combined, including mortgage, credit cards, car payments, student loans, etc., should be less than 35 percent of the gross monthly income.

 

·      Using a home-loan calculator also can be helpful to determine how much house is affordable based on a borrower’s income.  Click here for a mortgage home calculator.

 

For related articles for New Home Buyers

Best Place to Buy a Home 

Top Mistakes Buyers Make when Placing Offers

Top 10 Questions Buyers Have

Rent vs Own

 

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Relocations, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

 

 

 

Home Selling Tips during the holidays

Tips for preparing your home for sale:

 Although the traditional home-selling season has come to a close, homeowners still may be able to sell by making some minor adjustments that emphasize the home’s attributes. 

 ·      Homeowners in areas with extremely cold weather should take additional precautions when preparing their home for sale during the winter months.  Cleaning out gutters can help prevent icicles from forming and weather stripping windows will help to diminish drafts.  If the house will be vacant, it’s important that homeowners turn off and drain outside spigots so pipes do not freeze and burst.

 

·      Although holiday lights and decorations can look festive, some home buyers may be discouraged if they do not hold the same beliefs as the seller.  If the home is occupied, lighting a fire in the fireplace may be a better option for providing a comforting feeling.

 

·      Energy efficiency is top of mind with many of today’s home buyers.  Providing a list of energy saving alterations, such as wrapping pipes with foam sleeves and replacing windows and appliances, can help draw more buyers.  Providing a copy of recent utility bills also may be helpful.  It’s recommended that personal information, such as account numbers, be blacked out to guard against identity theft.

 

·      Although the winter months mean spending more time indoors, sellers can showcase a beautiful garden or other outdoor draw by displaying photographs taken during the spring and/or summer.  This can help illustrate to buyers the home’s other valuable attributes.

 

To read the full story, please click here:

 

http://online.wsj.com/article/SB123005162931830375.html

 

 

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

 

More lenders allow “early workout” loan alterations

More lenders allow “early workout” loan alterations

 Borrowers with loans owned by Fannie Mae no longer have to be behind in payments in order to qualify for a loan modification.  Borrowers facing financial difficulty, such as losing a source of income, now can apply for an early workout, loan modification or also know as  loan alteration.  Under Fannie Mae’s program, borrowers who qualify will enter into a trial period of reduced payments, usually for four months.  If the reduced payments are made on time each month during the trial period, the modified mortgage terms may become permanent. 

 

For referrals on Loan Modifiaction programs and help – we have people that may be of assistance.

Call  Kathy -916-759-2147

To read the full story, please click here:

          http://www.latimes.com/business/la-fi-harney21-2008dec21,0,5965944.story

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.

 

Revising loan modifications 53 % defaulted again

Revising loan modifications

 As many as 53 percent of modified loans redefaulted within the first six months of the year, leading some critics to believe the initial modified loan payment was unaffordable for the majority of homeowners.  Prior to agreeing to a mortgage modification, homeowners should create a realistic budget to determine how much they can afford each month for a mortgage payment.  To help create a budget, consumers can visit the Internal Revenue Service’s Web site, www.irs.gov , and enter “collection financial standards” into the search box.  The search will direct consumers to pages offering guidelines of what they can reasonably expect to pay for food, clothing, housekeeping supplies, out-of-pocket health care, utilities and transportation.

  To read the full story, please click here:

            http://http://www.nytimes.com/2008/12/21/realestate/21mort.html?_r=3&ref=realestate_r=1&ref=realestate

The Home Team Girls Realtors® Real Estate Team helping you with Homes For Sale, Seller Strategies, Certified Buyer’s Agent, Bank Foreclosure Specialist, Short Sale Specialist. We use the service of a certified  Home Stager on all of our listings. For Roseville and Sacramento Realtor Services call on the Home Team Girls.