BLOG

Laura Key 5/17/13 Laura Key 5/17/13

Rising Housing Demand Leads to Homebuilder Lotteries

In California the inventory is extremely low. My buyers see this an an option! I hate that it's come to this! Just a year ago you did not have this issue!

Laura Key 5/10/13 Laura Key 5/10/13

Homebuyers clueless about mortgages

Educating homebuyers is one of my favorite things to do! Ask me about my homebuyers class! Laura Key 310.866.8422

The housing market is heating up, yet many house hunters are not prepared to take on the biggest purchases of their lives.

When it comes to mortgages, homebuyers answered basic questions about terms, how to choose a lender and financing wrong nearly one-third of the time, according to an April survey of more than 1,000 current and prospective homeowners by real estate website Zillow.

Among the survey's findings, 31% of buyers don't think it's possible to get a mortgage for less than 5% down; 34% don't know what the term "annual percentage rate" (APR) means and one in four believe you must close with the lender that pre-approves your mortgage.

"All too often buyers focus on negotiating a lower home price and ignore the importance of finding the right loan," said Erin Lantz, director of mortgages for Zillow. "Buyers should always shop multiple lenders and compare rates and fees and read lender reviews in order to find the best loan for their situation."

One example: 34% of respondents believe lenders are required by law to charge the same fees to all clients for credit reports, appraisals and the like. That's wrong. Fees vary from bank to bank and can often be negotiated.

But it's hard to compare those deals if you don't understand what mortgage terms, like "annual percentage rate," mean. The APR factors into fees, upfront points, origination and underwriting fees and other costs that borrowers use to compare the actual cost of loans.

Such knowledge gaps can have long-term consequences. About 34% of first-time homebuyers think they need a down payment of at least 5% to make a home purchase, but loans insured by the Federal Housing Administration can require as little as 3.5% down.

And 24% of buyers believe the best mortgage deals are available through the banks where they currently have their savings and checking accounts, but often competing lenders can undercut those banks by large margins.

"If a homebuyer can lower their interest rate by even half a percentage point, they can not only increase their purchasing power, but save thousands of dollars over the life of the loan," said Lantz.

For every $100,000 borrowed, a half percentage point lower rate would reduce payments by $28 a month on a 30-year, fixed rate loan. That adds up to more than $10,000 over 30 years. Or borrowers could choose to add that $28 savings to each monthly payment. That would shorten the term of the mortgage from 30 years to just over 27 and save $6,500 in interest paid.

Another costly mistake: Many house hunters go shopping with financing in place because it enables them to act more quickly if they see a home they want. But 26% of buyers believe that once they're pre-approved, they're obligated to close the deal with those loans, according to the survey. In reality, there's no obligation. If buyers see better terms available they should take them.

Existing homeowners can also be guilty of ignorance. Some 20% of homeowners surveyed didn't know that underwater mortgages -- those in which borrowers owe more than their homes are worth -- can be refinanced into lower rate loans.

Finally, the survey found that nearly a third of homeowners are unaware that if they go through a foreclosure or short sale, they may not have to wait the full seven years it takes for their credit score to recover and they can buy a home again.

In reality, some homeowners who do short sales can obtain financing to buy another home in as little as two years.

The Consumer Financial Protection Bureau is hoping to make it easier for homebuyers with simplified mortgage forms that help them compare terms and costs and by creating new rules that will protect homeowners from getting into loans they can't afford.

Free home search here! Click the house to begin!

Source: By Les Christie @CNNMoney May 9, 2013

Laura Key 5/5/13 Laura Key 5/5/13

First comes home, then comes marriage?

Couples today are significantly more likely to purchase a home before marrying than older couples were, according to a survey commissioned by real estate franchisor Coldwell Banker that appears to point to a cultural shift in views toward homeownership and marriage.

Twenty-five percent of married couples between the ages of 18 and 35 bought their first home before their wedding date, compared to 14 percent of married couples who are 45 or older, according to the survey, which was administered by Harris Interactive on behalf of Coldwell Banker.

"While life goals and expectations continue to weigh on young couples, their views of homeownership are transcending their plans of marriage and starting a family, creating a direct effect on the patterns of buying a home altogether," said Dr. Robi Ludwig, Coldwell Banker's lifestyle correspondent. "What we're seeing is that young couples are switching up the order and purchasing their first home regardless of whether or not they have set a wedding date. This is a huge movement within the American culture. While younger generations may be focusing more on their career, and in turn waiting longer to get married and have children, they are not delaying their dream of homeownership."

Other findings of the study include:

Eighty percent of homeowners surveyed said buying a home strengthened their relationship more than any other purchase.
Thirty-five percent of married homeowners purchased their first home by their second anniversary.
Ninety-three percent of homeowners who purchased their first home while married always planned on buying a home after marrying.
Thirty-five percent of married homeowners wish they had bought a home earlier than they did.

Is your big day coming up! Time to settle into a nest! Call me today! Laura Key 310.866.8422

BY INMAN NEWS, MONDAY, APRIL 22, 2013. Inman News®

Laura Key 5/4/13 Laura Key 5/4/13

Does HUD Offer Special Programs for Homebuyers?

Buying a HUD Home is not as difficult as you may think! I have helped many people purchase their 1st Home from HUD! Call me today for more details about the process! Laura.A.Key@gmail.com or Visit my website to sign up for FREE HUD Listings! http://www.KeyCaliforniaHomes.com

Yes, HUD offers a program called the GOOD NEIGHBOR NEXT DOOR PROGRAM for Police Officers, Firefighters, EMT and Teachers! Call for more details on this program! 310.866.8422. If foreclosures are not sold within six months, HUD will sell them for $1 each to approved nonprofit organizations and government agencies. Homes must then be used create housing for families in need or to benefit neighborhoods.

Los Angeles HUD homes, Buying A Hud Home, North Hollywood HUD homes, Westchester HUD Homes, Gardena HUD Homes, Northridge HUD Homes, Santa Clarita HUD Homes, Simi Valley HUD homes, Lemert HUD Homes, Compton HUD Homes, Lynwood HUD Homes, Hawthorne HUD Homes, Inglewood HUD Homes, Baldwin Hills HUD Homes, Playa del rey HUD homes, Marina del Rey HUD Homes, Santa Monica HUD homes, Lakewood HUD homes, Buying A HUD Home, Buying a Los Angeles HUD Home, HUD Trained Agent, HUD NAID agent, Good Neighbor Next Door

Laura Key 5/1/13 Laura Key 5/1/13

Does HUD Offer Financing On Their Homes?

Buying a HUD Home is not as difficult as you may think! I have helped many people purchase their 1st Home from HUD! Call me today for more details about the process! Laura.A.Key@gmail.com or Visit my website to sign up for FREE HUD Listings! http://www.KeyCaliforniaHomes.com

HUD does not provide direct financing to buyers of HUD Homes. Buyers must obtain financing through either their own cash reserves or a mortgage lender. If you have the necessary available cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. While HUD does not provide direct financing for the purchase of a HUD Home, it may be possible for you to qualify for an FHA-insured mortgage to finance the purchase.

Laura Key 4/30/13 Laura Key 4/30/13

HUD-Owned Homes Expected to Surge

Soon the market will be filled with new listings from HUD! Are you prepared? Make sure you use an agent who is HUD experienced and can help you find the home of your dreams. I have closed many HUD homes in the past few years! Let me assist you! Laura Key 310.866.8422

The U.S. Department of Housing and Urban Development is reportedly going to be releasing more of its homes to the market, which could be welcome news to buyers who have faced slim pickings in for-sale inventories.

Over the next two years, experts predict that HUD homes on the market will increase significantly as lenders work through the backlogs of foreclosures and foreclosure reviews.

“The inventory is there, [it’s] just not being released during the banks/servicers review of the loan/mortgage documents,” says Nat Genis, a HUD listing broker in Riverside County, Calif., which is already seeing an increase in HUD-owned homes.

"HUD homes are back," Genis told HousingWire. "FHA financing went away with the 'creative' financing of the 80/20 loans, and now with the increase of FHA financing, these government-backed loans guarantee that if the borrower defaults, HUD will pay off the mortgage, obtain the deed, and re-sell the home."

HUD-owned homes can be appealing because of the discounted sales price, even though they can be in poor condition often times, HousingWire reports.

HUD had 39,442 homes in its REO inventory nationwide as of Feb. 28, 2013—with 20,536 of those having pending contracts on them, according to HUD.

Source: “HUD homes add to inventory-starved market,” HousingWire (April 29, 2013)

Laura Key 4/28/13 Laura Key 4/28/13

Do I Need An Appraisal On A HUD Home?

Buying a HUD Home is not as difficult as you may think! I have helped many people purchase their 1st Home from HUD! Call me today for more details about the process! Laura.A.Key@gmail.com or Visit my website to sign up for FREE HUD Listings! http://www.KeyCaliforniaHomes.com

It is not necessary to have a HUD home independently appraised, HUD offers an appraisal every 6 months. Your Lender may require a more current appraisal than the one provided by HUD. Ask your loan officer or HUD registered agent.

Laura Key 4/22/13 Laura Key 4/22/13

Should I Get A Home Inspection If I Am Buying A HUD?

Buying a HUD Home is not as difficult as you may think! I have helped many people purchase their 1st Home from HUD! Call me today for more details about the process! Laura.A.Key@gmail.com or Visit my website to sign up for FREE HUD Listings! http://www.KeyCaliforniaHomes.com

HUD does not warrant the condition of its properties and will not pay for the correction of defects or repairs. Since the new owner will be responsible for making needed repairs, HUD strongly urges every potential homebuyer to get a professional inspection prior to submitting an offer to purchase.

If you are interested in acquiring a HUD Home that is in need of repair, you may be interested in applying for an FHA 203(k) Rehabilitation Loan. When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property.

Will HUD make the repairs?

HUD homes are sold as-is. The new owner is responsible for all repairs and improvements.

Can I start improving on the property right away?

If HUD accepts your offer, you cannot make any repairs or home improvements until the escrow transaction has closed and title is recorded in your name.

Laura Key 4/19/13 Laura Key 4/19/13

Is There Anyway To Have My HUD Offer Considered Before Others?

Buying a HUD Home is not as difficult as you may think! I have helped many people purchase their 1st Home from HUD! Call me today for more details about the process! Laura.A.Key@gmail.com or Visit my website to sign up for FREE HUD Listings! http://www.KeyCaliforniaHomes.com

Owner occupants always have first priority; however, if there are not any bids after the 30^th day then bidding is open to all bidders (investors). All offers are due by the bidding date and the HUD system generally picks the highest and best offer.

Laura Key 4/16/13 Laura Key 4/16/13

Making an Offer On A HUD Home?

Buying a HUD Home is not as difficult as you may think! I have helped many people purchase their 1st Home from HUD! Call me today for more details about the process! Laura.A.Key@gmail.com or Visit my website to sign up for FREE HUD Listings! http://www.KeyCaliforniaHomes.com

Buyers will want to make offers based on ‘as-is’ appraisals determined by HUD. HUD will accept no offers that are lower than 50 percent of their appraisal. If you offer more than the appraisal price, you will be required pay the amount of the over-bid at closing, as your lender will base their loan amount on the appraised value of the home. Also, the process is a bit different than a regular offer on property. Your offer will be submitted online and government forms will be used to conduct the transaction.

Laura Key 4/14/13 Laura Key 4/14/13

Housing Shortage Will Dampen Spring Market

Buyers must be prepared more than ever! Do you have your PRE-APPROVAL in hand? It could mean the different of you getting your new home or renting for another year. Call me, let's discuss your options! Laura Key 310.866.8422

The housing recovery is progressing, but a shortage of homes on the market will limit the number of home sales this spring selling season, industry insiders say.

"If we don't see more people listing their properties, I don't think we will see the home sales volume increase that we are accustomed to seeing," Glenn Kelman, chief executive officer of Redfin told Reuters. "There are far more buyers than there are sellers on the market. We would have a huge boom spurred by low interest rates if there were more inventory on the market."

Still, the National Association of REALTORS® predicts existing-home sales will rise around 7 or 8 percent this spring compared to year ago levels.

In some areas where inventories are particularly constrained—like Washington, D.C., New York, and several California cities—homes are selling within hours of being placed on the market.

"The demand for properties is insane. The bidding wars that are going on, there is not enough inventory and it has become truly a seller's market again," says Neil Garfinkel, real estate attorney at Abrams Garfinkel Margolis Bergson in New York.

Source: “Analysis: Supply crunch to take steam out of home sales,” Reuters (April 3, 2013)

Laura Key 4/13/13 Laura Key 4/13/13

When Can I Bid on a HUD Home?

Buying a HUD Home is not as difficult as you may think! I have helped many people purchase their 1st Home from HUD! Call me today for more details about the process! Laura.A.Key@gmail.com or Visit my website to sign up for FREE HUD Listings! http://www.KeyCaliforniaHomes.com

Owner occupants can offer a bid on a HUD home during the first nine days. HUD will look at all bids on the 10^th day and decide based on which offer gives them the highest net profit. If there are two or more bids at the same net to HUD the offers will go into a lottery and the bid will be awarded based on chance. After the 10^th day if there aren’t any acceptable bids there will be an additional 20 days of bidding where bids are opened and reviewed daily for owner

Laura Key 4/11/13 Laura Key 4/11/13

Shorter Term Loans

Laura Key 4/10/13 Laura Key 4/10/13

Who Can Buy A HUD Home?

Buying a HUD Home is not as difficult as you may think! I have helped many people purchase their 1st Home from HUD! Call me today for more details about the process! Laura.A.Key@gmail.com or Visit my website to sign up for FREE HUD Listings!http://www.KeyCaliforniaHomes.com

Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

Laura Key 4/8/13 Laura Key 4/8/13

Home Prices Pick Up at Fastest Pace in 7 Years

Sellers, if you were on the fence about selling your home, this should help you make the right decision! Call me for a FREE CMA on your home! Laura Key 310.866.8422

Home prices nationwide, which includes distressed sales, soared 10.2 percent year-over-year, according to CoreLogic’s February report. It’s the largest year-over-year increase in home prices since March 2006. It also marks the twelfth consecutive monthly increase in national home prices, according to CoreLogic’s report.

When excluding distressed sales, home prices rose 10.1 percent year-over-year in February, according to CoreLogic.

“Nationally, home prices improved at the best rate since mid-2006, marking a full year of annual increases and underscoring the ongoing strengthening of market fundamentals,” says Anand Nallathambi, president and CEO of CoreLogic.

CoreLogic predicts that home prices -- excluding distressed sales -- will likely rise 11.4 percent year-over-year from March 2012.

“The rebound in prices is heavily driven by western states,” says Mark Fleming, CoreLogic’s chief economist. “Eight of the top ten highest appreciating large markets are in California, with Phoenix and Las Vegas rounding out the list.”

The five states with the highest price appreciation as of February 2013, according to CoreLogic, were:

Nevada (+19.3%)
Arizona (+18.6%)
California (+15.3%)
Hawaii (+14.6%)
Idaho (+13.5%)

Source: CoreLogic

Laura Key 4/7/13 Laura Key 4/7/13

Can I View A HUD Home Before Bidding?

Buying a HUD Home is not as difficult as you may think! I have helped many people purchase their 1st Home from HUD! Call me today for more details about the process! Laura.A.Key@gmail.com or Visit my website to sign up for FREE HUD Listings! www.KeyCaliforniaHomes.com

Can I view a HUD home before bidding?

Sure you can! You must use a HUD registered agent! Properties can be viewed anytime during the bidding process. Just be ready with your loan pre-approval in hand in case you find your dream home. You would hate to miss out because you were not fully prepared!

Laura Key 4/5/13 Laura Key 4/5/13

Study: Buyers Can Afford Bigger House If It's New

Good News on the Home Front! Ready to Buy! Let's do this together! Laura Key 310.866.8422

The National Association of Home Builders says its new study shows that home buyers can buy a more expensive, newer house and still have the same operating costs as owning an older existing home.

NAHB examined data from the Census Bureau and Department of Housing and Urban Development’s 2011 American Housing Survey to determine how utility, maintenance, property tax, and insurance costs vary depending on the age of a home.

Houses built prior to 1960 have average maintenance costs of $564 per year. On the other hand, homes built after 2008 have average maintenance costs less than half that — $241, according to the study.

For homes built prior to 1960, operating costs average nearly 5 percent of the home’s value while the average was less than 3 percent for homes built after 2008, the NAHB study found.

The study also took into account the first year after-tax cost of owning a home by its age, examining the purchase price, mortgage payments, annual operating costs, and income tax savings. “A buyer can afford to pay 23 percent more for a new house than for one built prior to 1960 and still maintain the same amount of first-year annual costs,” according to NAHB.

New houses tend to cost more than existing homes, so the mortgage payments will likely be higher — but the lower operating costs of a newer home will give buyers annual costs that could be about equal if they purchase a lower priced, older home with a smaller mortgage payment but higher operating costs, NAHB says.

"Home buyers need to look beyond the initial sales price when considering whether to buy new construction or an existing home," says NAHB Chairman Rick Judson. "They will find that with the higher costs of operating an older home, they can often afford to spend more to buy a new home and still have annual operating costs that fit their budget."

Source: National Association of Home Builders

Laura Key 4/4/13 Laura Key 4/4/13

Market Chips Away at Foreclosure Inventory

Come and stake your claim in sunny California! Laura Key 310.866.8422

The number of nationwide completed foreclosures fell 19 percent year-over-year, according to the latest report by CoreLogic, reflecting February data. There were 54,000 completed foreclosures in the country in February, the lowest level since September 2007.

Still, foreclosures are elevated by historical standards. In a more balanced market, completed foreclosures tend to average about 21,000 per month — less than half where they are at today.

As of February, about 1.2 million homes were in some state of foreclosure. The nation’s foreclosure inventory has fallen 21 percent in the past year, according to CoreLogic. February marked the 16th consecutive month in which the foreclosure inventory has fallen.

“We continue to see a declining trend in foreclosure activity, with major markets leading the way,” says Anand Nallathambi, president and CEO of CoreLogic. “The drop in delinquencies and foreclosure starts will help support a resurgence in the home-purchase market this year and next.”

The five states with the highest number of foreclosures for the past year, according to CoreLogic’s February data, were:

Florida
California
Michigan
Texas
Georgia

These states accounted for nearly half of all completed foreclosures nationwide over the past year.

On the other hand, the states with the lowest number of completed foreclosures were:

District of Columbia
Hawaii
North Dakota
Maine
West Virginia

Source: “CoreLogic Reports 54,000 Completed Foreclosures in February,” RISMedia (April 1, 2013) and CoreLogic

Laura Key 4/3/13 Laura Key 4/3/13

Americans Showing More Desire to Buy

Buy land...they are not making it anymore! Words ring true! Laura Key 310.866.8422

The percentage of U.S. residents who say owning a home is an essential part of the American dream has hit a three-year high, reaching 79 percent, according to the CNBC-All-America Economic Survey. What’s more, the number of Americans who say it is better to own than rent grew by four points to 69 percent, according to the survey.

More Americans also believe owning a home is a better long-term investment than stocks.

“The housing numbers are all heading in the right direction,” reports Diana Olick for CNBC. “Home prices up, foreclosures down and, perhaps the most important, consumer confidence in housing is swelling.”

Still, first-time home buyers will be the “wild card” in the spring-summer home buying season, says Thomas Popik, research director for Campbell Surveys. “We see strong first-time homebuyer traffic, but it’s still not clear that the traffic will translate into increased purchases because first-time home buyers are dependent on low downpayment financing, such as FHA mortgages.”

Source: “People Are Becoming More and More Confident in Housing Market,” CNBC (April 1, 2013)

Laura Key 3/30/13 Laura Key 3/30/13

Big Predictions for Housing for Next 2 Years

Finally some GOOD news on the Real Estate front! Regardless of what the news says...Real Estate is either UP or DOWN...either way it's a good investment! Call me to increase your worth! Laura Key 310.866.8422

Home sales are projected to post some big gains in the next two years, according to Fannie Mae’s latest monthly economic outlook.

Fannie Mae economists predict that existing-home sales will rise by 10.5 percent this year, and by 6.2 percent in 2014. The economists made even bolder projections for new single-family home sales -- growing 15.1 percent this year and 44.1 percent in 2014.

"We expect home prices to firm further amid a durable housing recovery, continuing to boost household net worth, gradually diminishing the population of underwater borrowers, and reducing incentive for strategic defaults," according to Fannie Mae’s report.

Fannie Mae projects that mortgage rates will stay low by historical averages this year, but the 30-year fixed-rate mortgage will rise from an average of 3.5 percent during the first quarter to an average of 4 percent during the final three months of 2013. During the fourth quarter of 2014, mortgage rates are projected to tick up to a 4.5 percent average.

Mortgage applications for purchases are projected to increase by 16.8 percent this year and by 17.1 percent in 2014. However, a decline in applications for refinancings will likely cause mortgage originations to be down 14.5 percent this year and by 31.4 percent in 2014, Fannie economists predict.

Source: “Fannie Mae sees housing upturn as 'intact',” Inman News (March 28, 2013)

Come "like" my Facebook Fanpage! www.Facebook.com/RealtyGoddess