Boomerang Buyers Set To Return To The Market

Over the next five years, the housing market will see around 1.5 million eligible return buyers jump back into home ownership, the Associated Press reported. These return buyers, nicknamed ‘boomerang buyers,’ lost their homes during the housing crisis, and they’ve restored their credit and are ready to purchase again!24881522251_b0c75a0a8d_b

Since 2006, 950,000 of these former owners have already purchased a home, and boomerang buyers will continue to be an important market for real estate professionals to target.  Though the credit crisis hit hard, the past years of time, have helped restore the credit many lacked.

“Now fueled by a gradually improving economy and the strong rebound in home prices, credit scores, and jobs, some of these former distressed owners have returned to the market, and more will likely become eligible in coming years,” says Lawrence Yun, chief economist with the National Association of Realtors (NAR).

A recent study from NAR showed the states that will be most impacted by return buyers are California, Florida and Arizona.

One of these return buyers, Debbie Cooley-Guy, in an interview with the Associated Press, said this of her housing journey. “I used to look at people like me and think, ‘How did you let this happen?’ In hindsight, I had set myself up so well. Just because you can afford things, it doesn’t mean you should buy them.”

But her story is one with a happy ending. After agreeing to a short sale, getting rid of her debt, repairing her credit, and saving up money, Cooley-Guy got an FHA loan and re-entered the housing market.  Many stories like this abound.  Don’t think that you are ineligible until you consult with your mortgage Team. New options are available for many people.

Cooley-Guy’s story will become more common, as many of the 7.3 million homeowners who went through foreclosure, or short sale, or even bankruptcy, would now (or soon) be eligible to re-enter the mortgage world.

(via The Associated Press)

 

Karen Cimera

4 Things That Can Kill Your Mortgage Approval

If you are about to seek an approval for a mortgage anywhere in California, or the San Francisco Bay Area, you must ensure that a few things are taken care of beforehand. 16971159048_883b37f785

Most importantly, you need to have your credit checked to ensure you have a solid credit score and make your loan approval as easy and painless as possible.  Often there are issues on your credit that you may not even know about, and knowing in advance will give you the opportunity to address them and ensure all is in order for your good scores.

Searching for the home of your dreams is not an easy task, and most times, it’s disheartening to find one that doesn’t fit within your price range. This is why pre-approval is critical.

Before you pick up the phone to call your lender, know the four things you need to avoid. Each of them can kill your chances of approval.

1.     Vehicle Purchase

It could be that your current vehicle has decided to give up, or you’ve found a better deal. However, before you make a purchase decision, you have to consult your mortgage advisor or professional to ensure that the monthly payment does not affect your buying power.

2.     Being Late on Your Monthly Bills

In every credit score, payment history makes up as much as one-third. This means you must pay your bills on time, especially when qualifying for a mortgage.

If you miss a payment and it’s reported against you, the impact could be upwards of 100 points deducted from your credit score. In a worst case scenario, this will either impact your interest rate, or require a larger down payment.  Be aware of this as you contemplate buying a home.

3.     Switching Jobs

Every job comes with its ups and downs, but if you wish to get a mortgage approval, then you have to think twice before making the decision to change jobs. If you accept a new job, make sure it is in “same line of work” and pay is same or higher.  Do note that when embarking on a job with lower base pay, and higher bonus or commission, that additional income may not be counted in all circumstances for qualifying.

Before you decide to change your job, it is best that you first consult your mortgage professional. You have to pay special attention to the details they provide.

4.     Not Providing Every Single Documentation

When it’s time for mortgage approval, the lender will ask you for detailed documentation about your financial status. If you’re missing any of the required documents, this will slow down the process. Take steps today to ensure you have two previous years’ worth of address, employment, and income information, and current asset information for two recent months.

Getting a mortgage in this competitive real estate world of The Bay Area doesn’t have to be hard. Keep the above factors in mind and you’ll increase your chances of getting a solid mortgage approval in the timeframe you need.

Karen Cimera

How Often Can You Refinance Your Home?

Refinancing means replacing an existing debt obligation with a new debt obligation under different conditions and terms. It varies from country to country, state to state and it also depends on many economic factors like inherent risk, projected risk, political stability of a nation, currency stability, banking regulations, borrower’s credit worthiness, and credit rating of a nation.11942730524_92a2ae24af

How Often to Refinance

When interest rates are going down in the market you prefer to refinance. But the question here is that how often you can do it if you have already done it recently. According to the law, there is actually no limit to it. In fact, the more pressing question is that if you have already done it recently then how long you have to wait before doing it again? And since you are bound by your current mortgage so how long a lender will take to let you out of it. The people who are in the best position to refinance are those who refinanced a year, or more ago, but it varies from situation to situation.  There is quite a time gap between then and now as far as rates are concerned.

There are certain things which you need to consider before refinancing your mortgage:

What are the Closing Costs?

Before you decide to refinance you need to make sure what the cost is.  There are loans w/o cost, and loans w/ cost.  Some have points, others do not.  You need to talk to your mortgage consultant, and get all the options, and figure out what the “break-even point” is for the new rate.  At times, it will not make sense. At other times, it makes a world of difference!  Call today and see if now is a good time for you?

The Housing Market

When you are considering refinancing you need to look at all the factors in the market. One such factor is “value” in the housing market. During the refinancing of your home, an appraiser will come out to determine what your house is worth. The lender uses this to ensure there is a good enough equity position in your home, before they will lend money.  This creates a new loan to value parameter and it also may present a new financial opportunity for you.

Rates

Interest rates change daily, and from investor to investor.  You need to closely monitor this with your mortgage consultant, because on certain loans, even if there is just a difference of 0.25% in your interest rate, it could make a lot of difference. Especially if you get a “credit” from the lender for your closing costs. You can then benefit from a lower rate right away. Note that you will also get better terms and conditions if you have good credit score so be sure to keep up on that.

Whether you should or should not refinance totally depends on your personal circumstances.  Before you make this decision you should reevaluate each and every aspect of it, and stay in constant communication with your lender to see what might be best for you.  You should check in every 6-12 months as the market continues to fluctuate. As rates move, you want to be ready so communication is key.

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Spring Cleaning Your Home Inside And Out

A thorough cleaning of your home, usually in springtime, is referred to as spring cleaning. No one exactly looks forward to it because it is a tiring job but you need to keep in mind that it is very necessary. Multiple techniques can be used to make your spring cleaning efficient, effective and manageable.spring-cleaning-300x269

Work Down

Always start at the top of the house. You are not supposed to clean the whole house in a single go. In fact start with small tasks like tidying, then dusting things and then cleaning and vacuuming.

Shed

Try to get rid of unnecessary items. Go through your belongings and clothes and separate all the items which you haven’t used in the past year. It’s better to get rid of them because you haven’t used them for quite some time so there is a very good possibility that you might not use it in future as well. Separate these things and give them to charity o someone you know.

Curtain Call

Never forget to clean your curtains. Clean them very carefully. If they are of velvet or any other sensitive material then vacuum them thoroughly. If they are of cotton or linen then you can also wash them. Read the labels.

Deep Clean

Deep cleaning your carpets at least once a year is advisable. Carpet gets dusty and dirty very easily because it is used so often. Make sure that you clean thoroughly, and if you cannot do it on your own, hire someone to do it for you or buy/rent a carpet cleaning machine.

Thwart Moths

It is very important to clean inside drawers and wardrobes thoroughly. After cleaning use cedar wood oil on them because it kills moth larvae and prevents it from reproducing.

Brighten Up

Switch off all your lights. Then take off all the removable parts in your chandelier and lighting area. Wash them and clean them properly. For fixed parts just take the cloth and remove dust from them. This exercise will brighten up your entire house.

Turn Over

Vacuum your mattress on a very low setting to clean it from any kind of dust particles. Also, flip your mattress at least twice a year. In this way, your mattress will maintain its shape and will remain new throughout the years to come.

Freshen the Beds

Keep changing the look of your bed by using new linens and beddings. Different styles and colors of beddings are now readily available, and very affordable. So to give it a new look keep changing your linens and pillow cases.

Shed the Load

It is a very big project and for that, you may need help.  It is difficult to do everything on your own, so hire help who can assist you to clean up the house. At the end of the day, you will stand in a crystal clean house.

Karen Cimera