Real Estate Information

The Mortgage Bankers Association predicts that the mortgage business should increase from $725 billion in 2010 to $916 billion by 2013.  Some banks agree and area hiring loan officers by the dozens.

For instance, JP Morgan Chase is hiring 1,200 mortgage officers.  "We may not be inundated with applications tomorrow, but we are confident the need will be there," says Christine Holevas, a spokeswoman for the bank.

Citizens Bank, owned by the Royal Bank of Scotland and doing business in 12 states, plans to add 400 loan officers by 2013.

Source: CNNMoney.com, Tami Luhby (06/24/2010)

Don't give up! Don't wait another day! Contact a REALTOR that has earned the NAR Short Sales and Foreclosure Certification (SFR), and believe that any family that loses its home to foreclosure is one family too many. 

The National Association of REALTORS (NAR) offers the SFR certification to REALTORS who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.

There are alternatives to foreclosure and every homeowner should have the opportunity to know what those alternatives are before loosing their home, often through no fault of their own.

Now, more than ever, you need a Realtor who understands Homeownership Options.   In recent years, changes to the economy have resulted in more affordable options for buyers; however, those same changes have produced new challenges for buyers related to reduced income and stricter qualifying standards.  I recently completed the Tennessee Association of REALTORS ® "Homeownership Options for Tennessee's Workforce" program.  As Realtors, we want consumers to know they have a choice and a knowledgeable advisor in real estate to help them find affordable housing options in their community.

A special website has been developed that offers valuable resources and information on workforce housing to both REALTORS® and consumers.  It can be found at www.tnhomeassist.com.  For more information on this program and others offered by the association and its educational foundation TREEF, please visit www.tarnet.com.

If you are a first time home buyer, or have not owned a home in the previous 3 years,  find out more about how you may qualify for free grant money that can be used for your down payment  by contacting me at the e-mail address or phone number listed at the top of this page.

Home ownership  has been part of the American Dream for hundreds of years and you can make it a reality for you and your family!

If you have made, or are thinking about making an Energy Star rated purchase for your home, check this information out to see if you can put some of that hard earned money back in your pocket!

Click here for information:  http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

Here are some guidelines:

• Homebuyers who have not owned a home for the past three years may earn up to $8,000 or 10% of the purchase price, whichever is lower.
• Buyers who have owned a home for five consecutive years of the past eight qualify for up to $6,500 in credits.
• There are income limits of $125,000 for single taxpayers and $225,000 for couples.
• Anyone paying more than $800,000 for the home cannot claim the credit.

There's a prohibition on claiming the first-time homebuyer credit if either member of a couple owned a home within the three-year period. They can claim the existing homebuyer credit.

Homebuyers who are under 18 or are listed as dependents on the tax returns of others don't qualify. The home must be kept at least three years.

The credit may be claimed on 2009 taxes, even if the return was already filed. Just submit an amended return.

Note that buyers get the full amount of the credit they're due even if that exceeds the amount of taxes they owe. If you're a first-time buyer and your total tax bill for the year is $6,000, you get all that back plus another $2,000. 

Despite the challenges facing the housing market, 65 percent of Americans would still prefer to own a home rather than rent, according to a Fannie Mae national housing survey.

In addition, 43 percent of respondents cite safety as a key reason to buy, while 33 percent are motivated to buy because they perceive schools to be better in neighborhoods where most homes are owned by their residents.

The survey results released Tuesday show that both buyers and renters are more cautious than they used to be. About 23 percent of renters say they will buy a home, but later than they once hoped.

A full 70 percent said they believe buying a home continues to be one of the safest investments available. This compares to 74 percent who think putting money into a bank account is safe. Only 17 percent believe buying stocks is a safe investment.

Also, 60 percent believe that it will be harder for them to get a mortgage to purchase a home than it was for their parents.

Source: Fannie Mae National Housing Survey (04/06/2010)

Greenspan: Housing Will Come Back

Former Federal Reserve Chairman Alan Greenspan told officials in Mexico on Wednesday that he believes U.S. home prices have hit bottom.  However, home owners are still unnerved by the decline in value, and until prices stabilize, the economy will remain weak.

"We will not be out of this crisis until home prices truly stabilize in the United States.  They appear to have stabilized, but they are very fragile," Greenspan said in a televised interview.

"Eventually housing will com back; it can't get any lower," he added.

Source: Reuters News (03/25/2010)

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.