The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending January 28, 2011. The Market Composite Index, a measure of mortgage loan application volume, increased 11.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 13.2 percent compared with the previous week. The previous week did not include a holiday adjustment for Martin Luther King, Jr. Day.
Please visit here to read more about the Mortgage Application Survey.
If you've ever made an informal bet with a friend, you may have asked a third person to hold the money until the wager was resolved. When you take out a mortgage to buy a home, you're doing something similar by opening an escrow account.
To find out more on how escrow works, its purpose, how it benefit's you and more visit here and read the full article.
If you are looking for even more information about escrow, you can visit here
and learn the principles and practices of escrow.
WASHINGTON • "Wall Street's plunge into the U.S. housing market reached such a level of madness that three giant banks kept buying billions of dollars in risky mortgage securities when most investors were shunning them, a congressional commission said Thursday in its long-awaited report on the causes of the U.S. financial crisis".
To read more on this report by Greg Gordon and Kevin G. Hall of the McClatchy Newspaper click here.
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and you can have all the information you need in under a minute.
Many of us know that the average home buyer out there today would prefer to purchase a turn-key home (move-in ready). Buyers do not want to have to deal with new paint, new flooring or having to update certain rooms. But, as a seller, how do you know when you have over improved your home to the point that buyers may not be willing to pay extra for your upgrades?
Below are a few good suggestions to help you stay on track with your renovation projects, especially if you are planning to sell your home in the near future. However, if you plan on living in your space for a while there should be nothing stopping you from making it unique and exactly how YOU want it to be.
Outrageous Kitchen Renovations:
Although you may enjoy cooking on a huge stainless steel stove and having that extra space with that enormous island, it may be a turn off for a potential buyer. Buyers know that the value of a home will increase with those types of upgrades and most will not be willing to pay extra for an over the top $30,000 renovation.
Kitchens can be remodeled on a budget of around $1,000 and designed in such a way to appeal to most potential buyers while still keeping you satisfied with a beautiful space and quicker sale.
Extreme Bathroom Renovations:
Having a shower with numerous sprayers that hit you from all directions and a jacuzzi tub that could possibly fit 4 or more people, may start your day off great, but to a buyer who is wanting to conserve water, this renovation may not be the best.
Keep your bathroom upgrade modest with simple designs and basic new fixtures to appeal to a larger group of potential buyers.
A Pool/Hot Tub:
Having a pool or a hot tub can be a blast when you have friends and family over. But remember that a potential buyer will be crunching numbers to figure out how much it will cost to keep it maintained. You also need to keep in mind about homeowners insurance coverage. Either one could be a liability, especially for families with young children and that could affect their coverage.
A pool/hot tub will limit the number of people looking at your home. Only those wanting a pool or hot tub will become potential buyers when all other potentials could have been included if there was no pool or hot tub.
A Room Too Specialized:
Never, and I repeat never close in a perfectly functioning garage and make it a bedroom, family room, game room or whatever you so choose, if you plan on selling. Potential buyers WANT a garage. Let them decide if they want to convert the garage to a random room.
The problem is that once the garage has been converted, a potential buyer will see that as a pricey renovation project before they even decide to purchase the home. They will wonder, "where am I gonna park my car or store my tools and lawnmower"? Do not even allow them to have that thought cross their mind. However, if you plan on staying in our home and do not wish to sell, than you can make that garage anything you would like.
A home renovation or room upgrade can be tricky, especially when you know you will be selling and want to make sure you do not turn away potential buyers. To be sure you do it correctly, always stick to the basics. Neutral color on walls. Simple, small updates throughout your kitchen and bath, such as new knobs, fresh coat of paint on cabinetry and inexpensive new appliances and hardware.
You can really transform a room on a small budget and make it appeal just as much to potential buyers as you would if you would have payed more. However, the smaller budget choice will get you more foot traffic and a quicker sale.
If you are deciding to enter into the real-estate business and become a landlord, always remember to be professional in all that you do that pertains to your property. Potential lessee's want someone who is going to show up on time to appointments and truly cares about the tenant and their well being.
Always show up dressed in business attire. Do not make an appearance in dirty jeans and an old t-shirt. Remember the way you portray yourself is how others will also portray you. Also, make sure you have professional looking business cards, website, contracts and even the way you answer your phone. The little things will take you a long way.
Finally, give the potential tenant a well put together packet that they can review once they are at home. Include in this packet a cover letter that breaks everything down for them. They should know exactly what to expect, not only with the property, but also with you as their future landlord.
The extensive real estate data, concluded by Zillow, allows us to take a deep look into the housing markets across the country. This research is meant for sophisticated investors who are interested in making a long-term investment in properties that will produce rental income, not those investors looking for a quick flip. Focused more on regular positive cash flow, these types of investors usually expect the value appreciation to be quite descent.
Zillow looked at 4 factors in individual markets across the nation.
1. Price-to-income ratio:
The relationship between local incomes and home values over time, pinpointed the historic norm, and compared the price-to-income ratio today. Places where home values are currently above that historic norm got high marks, because that suggests property values may have over-corrected in the housing downturn, so this year would be a good time to buy.
2. Foreclosures:
Places where foreclosure rates were falling, which means the local market is likely to improve, were also included. Although attractive to many investors, we wanted to make sure there is still an ample supply available.
3. Price-to-rent ratio:
Places where the difference between the annual cost of renting or buying was small, was also examined. This means that current purchase prices are appealing now, but that rents could fall in the future. However, rents may be high now relative to the purchase price, so the property might generate income quickly.
4. Home value appreciation:
Since it’s more attractive for investors to buy in a relatively strong real estate market, the Zillow Home Value Index (measures the median value of all homes in an area) needed to increase.
According to Zillow, the best place to invest would be Merced, CA. In Merced, the home values are ascending again after a substantial adjustment during the downturn. Foreclosures are falling, but sales of previously foreclosed homes made up 53 percent of all sales in October, so there are plenty of choices for investors.
NOTE: All information was received from Zillow.com
By now, most of you have probably heard of the term short sale. But for those who have not, it is when a seller, usually one in a current financial hardship, tries to sell their home that is worth less than the amount owed on their mortgage. With a new buyer in place, the bank needs to approve the loss the seller will be taking as a result of the sale, and once approved, the short sale can close.
Today, there are more than 7 million households in trouble. Which could mean that the home is either already in the foreclosure process or the household is late on their payments. Unfortunately, about half of the homes that get foreclosed on in this country, the owners knew nothing about it. Short sales have become the preferred process of absorbing the immense amount of distress sales that are mounting throughout the country. Many banks today are seeking alternatives to foreclosures.
While going through a short sale, the seller will remain the owner while negotiations are being made with the bank concerning the terms of the sale and how it will affect the financial future of the seller. You want someone who is experienced and relentless, when dealing with a large financial institution and your financial future, on your side.
Many people choose to ignore all the awful things that are going on around them and allow their home to get foreclosed right from underneath their feet. A foreclosure will destroy your credit and is most likely the worst thing you could do to yourself. However, assuming that you have researched alternatives to stay in your home, a short sale would be the best thing to do for yourself. There are some government programs created to help keep homeowners in their home, and people need to know that these programs do exist and that they are a feasible option. Although, for many homeowners, the affliction is far too severe to justify staying in the property no matter how the terms of the loan are readjusted and that's when a short sale becomes the most logical and reasonable solution.
