Posted on: 09th Jun, 2007 05:44 am
Hello all in the community and our guests that are looking for some info and guidance in the mortgage arena. Ken Lambert here of I-Trust Financial (soon to be listed here as a ranked lender, in MA, NH, and FL).
Note that all real estate is local, so the following is a general statement for most of the country's areas- as of mid June:
If you're renting somewhere and looking to step out on your own and purchase a house/condo, I'd say you have maybe the next 6 months or so to get something under agreement- to take advantage of the current "buyer's market". We are generally at the "low point" of the housing/pricing cycle and most experts believe that home prices will finally begin to increase slightly later this year, and certainly into 2008. When you couple that with the fact that we are STILL at a time with fairly low and manageable mortgage rates, it makes sense to make the move soon.
Even though mortgage rates have risen since the beginning of the year, anything under 7.0% is considered a bargain by recent history's standards.
A few other practical notes to consider when looking for your first home-
1. I would recommend attending a local "first time homebuyer's seminar" if one is available. Check out your local newspaper for an ad. These are free and have no obligations, and you'll probably get 90% of your questions answered at this event- and you'll meet some potential real estate and mortgage pros there.
2. I've done many home inspections and property assessments in the past, and these are some good general guidelines/ opinions-
You can't put a price on peace-of-mind/ safety. If the house of your dreams is in a neighborhood where you wouldn't feel safe walking through in th evening, I'd check for other alternatives- even if they're smaller and/or more expensive. Unfortunately you have to pay for "security".
Size is measured in square footage of living area (SF-GLA). About 50% of the value of a home is based on solely this number. One relatively inexpensive way of adding some useable SF to a house after you move in might be to finish off a portion of the attic or full-height basement. A lot of the expensive work/ structure is already there for you.
Buyers need to be wary of the same things that sellers are trying to do to be smart and frugal. Realtors often tell sellers to spruce up the front yard landscaping and maybe repaint the exterior of the house. These increase the curb-appeal of the house, but may not correlate to the condition of anything else in the house.
You have to be more careful when you're buying a home with a private water well and private septic system than one that is hooked up to a community water and sewer line. That's common sense- but some people don't even think about it.
That's just a few items to consider. If anyone would like any other specific advice or answers, please feel free to contact me here, or via my mortgagefit Blog below. Thanks, and happy house-hunting!
-Ken
Note that all real estate is local, so the following is a general statement for most of the country's areas- as of mid June:
If you're renting somewhere and looking to step out on your own and purchase a house/condo, I'd say you have maybe the next 6 months or so to get something under agreement- to take advantage of the current "buyer's market". We are generally at the "low point" of the housing/pricing cycle and most experts believe that home prices will finally begin to increase slightly later this year, and certainly into 2008. When you couple that with the fact that we are STILL at a time with fairly low and manageable mortgage rates, it makes sense to make the move soon.
Even though mortgage rates have risen since the beginning of the year, anything under 7.0% is considered a bargain by recent history's standards.
A few other practical notes to consider when looking for your first home-
1. I would recommend attending a local "first time homebuyer's seminar" if one is available. Check out your local newspaper for an ad. These are free and have no obligations, and you'll probably get 90% of your questions answered at this event- and you'll meet some potential real estate and mortgage pros there.
2. I've done many home inspections and property assessments in the past, and these are some good general guidelines/ opinions-
You can't put a price on peace-of-mind/ safety. If the house of your dreams is in a neighborhood where you wouldn't feel safe walking through in th evening, I'd check for other alternatives- even if they're smaller and/or more expensive. Unfortunately you have to pay for "security".
Size is measured in square footage of living area (SF-GLA). About 50% of the value of a home is based on solely this number. One relatively inexpensive way of adding some useable SF to a house after you move in might be to finish off a portion of the attic or full-height basement. A lot of the expensive work/ structure is already there for you.
Buyers need to be wary of the same things that sellers are trying to do to be smart and frugal. Realtors often tell sellers to spruce up the front yard landscaping and maybe repaint the exterior of the house. These increase the curb-appeal of the house, but may not correlate to the condition of anything else in the house.
You have to be more careful when you're buying a home with a private water well and private septic system than one that is hooked up to a community water and sewer line. That's common sense- but some people don't even think about it.
That's just a few items to consider. If anyone would like any other specific advice or answers, please feel free to contact me here, or via my mortgagefit Blog below. Thanks, and happy house-hunting!
-Ken
Are the home buying seminars those of HUD's. can you recommend one such organization. I am interested in attending such a seminar.
which state are you in dorothy? if you tell then I can give you reference of few such organizations working in your state
one I found http://www.homeresearch.org/stop_renting.asp
one I found http://www.homeresearch.org/stop_renting.asp
Very good information Ken. Thanks for sharing so many details with us.
Miller
Miller
Hi ken,
That's a pretty good summary of the minute details one should keep in mind while buying a home. No doubt, a home buying seminar is indeed essential. One can also discuss with a HUD approved counselor on home buying and credit issues. It helps one to actually understand whether he can manage his finances and afford to make payments on a mortgage loan.
In fact Ken, in recent times we have had discussions on how to find first time buyer information and I have the feeling that even the people are able to interpret that this is time when they actually look forward to buying a home.
You may be interested in adding your comments and opinions at http://www.mortgagefit.com/know-how/about6898.html where the community had discussed on first time buyer information.
Thanks,
Caron.
That's a pretty good summary of the minute details one should keep in mind while buying a home. No doubt, a home buying seminar is indeed essential. One can also discuss with a HUD approved counselor on home buying and credit issues. It helps one to actually understand whether he can manage his finances and afford to make payments on a mortgage loan.
In fact Ken, in recent times we have had discussions on how to find first time buyer information and I have the feeling that even the people are able to interpret that this is time when they actually look forward to buying a home.
You may be interested in adding your comments and opinions at http://www.mortgagefit.com/know-how/about6898.html where the community had discussed on first time buyer information.
Thanks,
Caron.